The Ministry proposes to toughen state regulation in the sphere of smuggling and hours to motivate manufacturers to use the mechanisms of protective investigations to the WTO. It is not specified, how much can raise taxes.
MOSCOW, 20 Jan. The Ministry of industry and trade of the Russian Federation proposed to raise the duty on import of watches in Russia to support Russian producers, according to the newspaper “Vedomosti” with reference to Deputy Minister of industry and trade of Russia Viktor Evtukhov.
It is noted that the raising of fees was asked by the watchmakers. Due to the weakening of tariff protection after accession to the WTO, imports have been increasing hours and decreasing production. According to Rosstata, for 11 months of 2015, the production hours of all types in Russia was reduced in pieces by 22.2%.
Thus, the Agency proposes to toughen “state regulation in the sphere of smuggling watches” and to motivate manufacturers to use the mechanisms of protective investigations to the WTO. According to the publication, calls for an increase in specific components of combined customs duties. But did not specify how much can be increased rate.
The Ministry has sent to the Ministry of economic development “position about the need to increase specific components of” duties on imports of watches, said the publication of the representative of the Ministry of industry and trade. It is reported that the criterion for establishing the rates will be the observance of Russia’s obligations in the WTO, which involve only ad valorem rate of 7%.
According to the publication, the representative of the Ministry of economic development Elena laskina, the Ministry proposes to increase specific component of the rates to levels ranging from 3.2 to 7 euros per share. However, the General Director of the Association of the watch market Vyacheslav Medvedev, which results in the publication, believes that the increase in the duty on a watch is unlikely to support manufacturers. He recalls that after the introduction in 2012 of high duties in official 10 Euro import hours fell by a third, and cheap segment disappeared from official imports.
The paper explains that the import of watches in the Russian Federation subject to combined duties. For mechanical watches it is 7% of the cost and at least 4 euros per share, for quartz – 7% plus 2 or € 1.5 depending on the customs code. Until Russia’s accession to the WTO rates were above 10% and not less than 10 Euro apiece.