Products on the markets may become more expensive due to the update of the EAEU Customs Code

Soon, member countries of the Eurasian Economic Union (EAEU; includes Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan) will have to ratify changes to the union’s Customs Code. Because of this, processing foreign purchases may become significantly more complicated and their cost may increase. The changes were prepared for late 2023.

All e-commerce products will be separated into a separate segment and the simplified import system will no longer apply to them. The concept of an e-commerce operating institution that performs customs declaration and payment of duties and taxes will also be introduced.

In addition, special customs warehouses will be created for e-commerce goods (analogous to “customs” warehouses – goods that are received without customs clearance, payment of VAT, excise taxes and customs duties, etc.).

Today, there are regulations according to which foreign goods paid for by the buyer on online platforms are imported into the country as goods for personal use.

Once the amendments come into force, the concept of “goods for personal use” will apply only to goods imported or exported across the border by an individual in luggage or delivered to his or her home by another individual, and such goods are delivered by mail or carrier.

Market participants warn that the innovations will lead to an increase in prices for products that will still be able to enter the Russian market. The products may increase in price by about 15%.

• In early June, the Ministry of Industry and Trade proposed extending parallel imports until 2025, but reducing the list of permitted goods.
• Earlier, First Deputy Prime Minister Andrei Belousov said that over the two years of the parallel import mechanism, goods worth $70 billion were imported into Russia.