The government commission on protective measures in external trade and customs and tariff policy has approved the proposal of the Ministry of economic development and trade (Minecomdevelopment), in which "shuttle traders" (physical persons) are in fact treated as organised importers.
After October, 2002 physical persons may import to Russia goods weighing up to 50 kg and costing up to 1000 dollars only when personally crossing the custom borders.
In case the goods imported by physical persons (except the automobiles) exceed the established norms for duty-free freightage in total value, but at the same time weigh not more than 100 kg and cost not more than 5000 dollars, they will be liable to standard import duty rate - 30% from the customs value of the said goods, but not less than 4 euro per kilogram.
Today RF citizens may carry through the border the cargo weighing not more than 50 kg with a value up to 1000 dollars without paying any duties and taxes. Moreover, one person may export a whole train of 50 kg cargoes provided he has upon him powers of attorney from the required number of physical persons.
The adopted measure is to close the loophole for "grey import" to Russia, which is practised mainly not by individuals but carrier-companies, disguising their business as physical persons freightage.
Mineconomdevelopment believes that the new order of importing the goods will help Russian manufacturers of clothes and footwear to occupy their niche on the internal market, will enable to observe control of quality of the imported goods, will increase the proceeds to the budget.
Growth of home footwear and fancy leather goods sales volume may lead to the growth of demand for the production of Russian leather factories.
Russian light industry representatives are satisfied with the decision of the government, but consider it incomplete. They insist the rules to be the same for everybody. Anyone who carries the commodities for commercial purposes is to pay all the taxes provided by the law.

Source: Expert, N27 (334)
21.08.2002