Russia agrees to set 5% duty on imports of e-commerce goods into EAEU while maintaining duty-free threshold at 200 euros
MOSCOW. Sept 9 (Interfax) - The duty rate on imports into the Eurasian Economic Union (EAEU) of goods purchased by individuals through marketplaces will be reduced to 5% from the current 15%, while maintaining the duty-free import threshold at 200 euros, and this decision has generally been agreed upon by both Russia and the other union members, Deputy Industry and Trade Minister Roman Chekushov told journalists.
"Currently, we have on the table a proposal supported by all countries to set a duty of 5% for e-commerce goods purchased by individuals, but not less than 1 euro per 1 kilogram, which, as now, will only be levied on the amount exceeding the duty-free threshold," he said.
DUTY FOR E-COMMERCE WILL FALL
The 5% duty rate will not differ significantly from the actual weighted average duty rate on imports of e-commerce goods, Chekushov said. Currently, it is around 6.3%. "At the same time, there is an opportunity to import some goods, primarily those that are not produced by us, at zero rates," he said.
For a number of goods, the duty may be set higher on an individual basis. "For certain goods, primarily cars, higher import duty rates are being discussed, and we support this, as we understand that a car is not the most ordinary product that a buyer would want to purchase on a foreign e-commerce platform," he said.
The reduced duty rate will not apply to goods imported into the EAEU not by individuals but by the marketplaces themselves under the bonded warehouse regime. Such products will be cleared at the rates provided for commercial batches in the EAEU Unified Customs Tariff.
DUTY-FREE THRESHOLD WILL REMAIN UNCHANGED FOR NOW
The current duty-free import threshold for goods by individuals at the level of 200 euros is expected to remain for an indefinite period for now. "The Industry and Trade Ministry supports this approach. But we understand that during the medium term we will, probably, gradually reduce it [the threshold]. We are ready for this at the moment. I am confident that this will not lead to price increases," Chekushov said.
Moving away from the duty-free import of e-commerce goods is advisable, including from the point of view of legitimizing this segment, he said.
"Unfortunately, our analysis shows that often within this threshold, unscrupulous importers manage to supply batches of products that actually go not in the format from consumer to consumer, but in the format of further sale on digital platforms or in some market formats. Therefore, we need to gradually close this channel. This is not civilized trade, and of course, it does not in any way stimulate industrial development or guarantee that the consumer receives a normal product," he said.
Overall, Chekushov called the EAEU countries' expected decision to set an import duty for online trade at 5% while maintaining the threshold at 200 euros a compromise. "Given the existence of a duty-free threshold, this approach seems a reasonable compromise between the interests of our citizens and offline retail, which, of course, traditionally advocates for a complete leveling of conditions with cross-border e-commerce."
The Eurasian Economic Commission (EEC) will consider the issue of conditions for importing goods purchased by individuals on marketplaces into the EAEU at a meeting at the end of this week, an Interfax source familiar with the meeting's agenda said.
