For the period from October 1, 2023 to the end of 2024, Russia will introduce customs duties linked to the dollar exchange rate on exports of a number of goods outside the Eurasian Economic Union.
The official reason for the introduction is to protect the domestic market from “unreasonable price increases” by increasing the supply of products within the Russian Federation. However, like the recently introduced “windfall tax”, this measure will help replenish the deficit Russian budget at the expense of exporters.
Duties will be imposed on a wide range of goods, from fertilizers, metals and precious stones to alcohol and foodstuffs. Products with a high share of imported components in the cost price, in particular oil and oil products, gas, grain and timber, are exempted from the duties. A number of machineries, equipment, weapons and ammunition (codes 84-96) are also exempted from duties.
The duties will change monthly depending on the exchange rate of the U.S. dollar to the Russian ruble and will be published on the website of the Ministry of Economic Development of the Russian Federation. Thus, if the dollar falls below 80 rubles, the duties will not be levied, and with the growth of the exchange rate they will increase: the minimum amount of duties will be 4% of the customs value of goods (at a dollar value of 80 to 85 rubles), and the maximum – 7% (if the dollar rate exceeds 95 rubles). Higher duties are envisaged for exporters of fertilizers.
Apparently, the measure will also affect products exported under previously concluded contracts. Thus, if goods have already been placed under customs procedures and are intended to be exported outside the EAEU after October 1, 2023, declarations for them will have to be drawn up anew (exceptions are goods already accepted for rail and sea transportation).
Thus, Russian exporters are advised to analyse the nomenclature of exported goods for changes in export customs duties, as well as to take into account the risks of increasing the time of release of goods due to customs control. One should not forget about the right of the Russian customs authorities to conduct inspections within three years after the release of such goods for export purposes.
Source: Decree of the Government of the Russian Federation of September 21, 2023 Nu. 1538 “On the rates of export customs duties on goods exported from the Russian Federation outside the customs territory of the Eurasian Economic Union, and on amendments to the rates of export customs duties on goods exported from the Russian Federation outside the customs territory of the Eurasian Economic Union”.
The official reason for the introduction is to protect the domestic market from “unreasonable price increases” by increasing the supply of products within the Russian Federation. However, like the recently introduced “windfall tax”, this measure will help replenish the deficit Russian budget at the expense of exporters.
Duties will be imposed on a wide range of goods, from fertilizers, metals and precious stones to alcohol and foodstuffs. Products with a high share of imported components in the cost price, in particular oil and oil products, gas, grain and timber, are exempted from the duties. A number of machineries, equipment, weapons and ammunition (codes 84-96) are also exempted from duties.
The duties will change monthly depending on the exchange rate of the U.S. dollar to the Russian ruble and will be published on the website of the Ministry of Economic Development of the Russian Federation. Thus, if the dollar falls below 80 rubles, the duties will not be levied, and with the growth of the exchange rate they will increase: the minimum amount of duties will be 4% of the customs value of goods (at a dollar value of 80 to 85 rubles), and the maximum – 7% (if the dollar rate exceeds 95 rubles). Higher duties are envisaged for exporters of fertilizers.
Apparently, the measure will also affect products exported under previously concluded contracts. Thus, if goods have already been placed under customs procedures and are intended to be exported outside the EAEU after October 1, 2023, declarations for them will have to be drawn up anew (exceptions are goods already accepted for rail and sea transportation).
Thus, Russian exporters are advised to analyse the nomenclature of exported goods for changes in export customs duties, as well as to take into account the risks of increasing the time of release of goods due to customs control. One should not forget about the right of the Russian customs authorities to conduct inspections within three years after the release of such goods for export purposes.
Source: Decree of the Government of the Russian Federation of September 21, 2023 Nu. 1538 “On the rates of export customs duties on goods exported from the Russian Federation outside the customs territory of the Eurasian Economic Union, and on amendments to the rates of export customs duties on goods exported from the Russian Federation outside the customs territory of the Eurasian Economic Union”.