B2C import flows to Russia under threat

20th January 2014

 

Online retailers enter 2014 facing a significant issue: e-commerce import flows to Russia, estimated at EUR 1 bln in 2012, are under serious threat. The Russian Government has become increasingly worried about smaller companies avoiding tax and duty by importing goods into Russia as private individuals, before selling them domestically. Private individuals have historically been allowed to import goods for private use without paying tax or duty, as long as the value did not exceed EUR 200 including freight costs. Last week, the Russian Customs Service effectively ordered a complete standstill on import clearance of B2C parcel flows from January 27th, with significant delays already being experienced and no resolution in sight.

 

E-commerce companies will now be forced to either set up their own domestic operations in Russia, or find a viable domestic partner to act as importer of record and intermediary in the fulfilment process. With extensive experience working with both retailers and contract logistics companies in Russia and CEE, Graphene Partners is already supporting retailers to assess the business impact of this change and implement solutions to maintain business continuity.

 

Please contact us for more information on how we can help your business.