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  You are in Trade Information > Potential Markets > Russian Federation
 
 
Russian Federation
Market Access
Trade Barriers
In 1994, import duties increased to a trade weighted average of 11 percent. In March 1995 these rates were revised to raise the floor (except for a small list of zero-duty goods) to five percent and lower the ceiling (except for a few luxury goods) to 30 percent. In 1996, the Government raised tariffs on alcohol and chicken, resulting in an average weighted tariff of 14 percent, as calculated by the IMF.

Besides tariffs, there are two other types of charges applied to imports: excise tax and value-added-tax (VAT). Excise tax applies to a number of luxury goods, alcohol, cigarettes and auto and varies from 20 percent to 570 percent on a price-exclusive basis. The VAT rate is now 20 percent, with the exception of food (for which VAT is 12 percent) and is applied to the import price, plus tariff, plus excise tax.

Customs Valuation
Customs duties are payable on the customs value of goods in hard currency or Rubles, at the current exchange rate. The customs value is generally considered to be the CIF price of the goods imported. A customs processing fee of 0.15 percent of the goods actual cost is also levied. According to customs regulations, customs processing should take no longer than one month. If goods are refused by Russian Customs, regulations call for their return to the country of origin.

Import Licenses
Import licenses are required for importation of various goods, including ethyl alcohol and vodka, combat and sporting weapons, self-defence articles, explosives, military and ciphering equipment, radioactive materials and waste including uranium, strong poisons and narcotics, and precious metals, alloys and stones. Most import licenses are issued by the Russian Ministry of Foreign Economic Relations and Trade (MinFERT) or its regional branches controlled by the State Customs Committee. Licenses for sporting weapons and self-defence articles are issued by the interior Ministry.

Russian Export Controls
The Presidential Decree in March 1995 lifted the need for MinFERT's permission to export "strategically important raw materials, such as oil and gas, nonferrous metals, fertilizer, cellulose, grain, fish products, and electric power. The decree also abolished the list of "special exporters. However, the Ministry of fuel and energy's granting of access to the export pipeline control export of oil and gas in a practical sense. Also, weapons, military equipment and dual-use materials and technology continue to require export licenses. Exports of "strategically important raw materials" still require registration with MinFERT.

Import/Export Documentation
Importers are required to complete a Russian customs freight declaration form for every item imported. The declaration form consists of 54 paragraphs and should be completed in the Russian language for presentation to Customs authorities. Certificates of origin and conformity (see "Product Standards" below) should also be presented at customs. Exporters are required to complete an export declaration form and if necessary, present the appropriate export license at customs. In addition, currency control authorities require the issuance of a "passport" for both exports and imports, to ensure that hard currency earning are repatriated to Russia and transfers of hard currency payments for imports is for goods actually received and properly valued.

Product Standards
Many products imported for sale into the Russian Federation are required to have a certificate of conformity issued by the Russian State Standards Committee (GOSSTANDART). GOSSTANDART tests and certifies products according to Russian Government standards, rather than other widely accepted international standards (e.g. the ISO-9000 system). GOSSTANDART and its authorized agents are the chief sources for certification in Russia. However, other agencies are involved in certification of certain products, including the Ministry of Agriculture (food products), the Ministry of Health (medical devices and pharmaceuticals), the State Communication Committee (telecommunications equipment and services), the State Mining and Industrial Inspectorate GOSGORTECHNADZOR (equipment for the mining, oil and gas industries) and others.

Testing protocols from the IECEE (electrical equipment) and the IBCQ (electrical components), both of which fall under the International Electro Technical Commission, from Underwriters Laboratories, and other bodies, are accepted by GOSSTANDART and help to expedite certification by the Russian agency. The certificate of conformity is valid for 3 years and must accompany every shipment. Copies of the certificate are acceptable if original seals of the U.S. Company holding the original certificate accompany the copy. Russian retailers are obliged to have on hand, certificates for all imported products sold in their stores. Violation of this requirement can bring penalties of up to the equivalent of $10,000.

Product Labelling
New regulations on labelling for non-food products came into force on 01 July 1998, augmenting food labelling requirements which took effect previously. Companies are advised to check their compliance with these requirements before shipping products. Regulations can be obtained from Russia's State Committee on standardization and metrology, also known as Gosstandart.

Free Trade Zones/Warehouses
There are no actual free trade zones in Russia. There are some free economic zones designed to encourage investments in specific areas, as well as free customs zones and free warehouses. Customs duties do not apply in free customs zones and free warehouses. Some production and wholesale transactions can take place within these zones, but not retail sales. The storage period is not limited. Free customs zones and free warehouses are located in customs areas (airports, seaports, railway and truck terminals).
   
 
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