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Russian 'shuttle traders' check in their baggage

According to experts, the next tightening will lead to thousands of 'shuttle traders' losing their jobs, and prices for clothing, footwear, toys and many other things will start to rise. Moreover, not only 'shuttle traders' but also ordinary citizens who risk bringing something from abroad could fall under the restrictions.

According to Galina Balandina, the Ministry of Economic Development has already prepared amendments to the Customs Code of the Russian Federation that would simplify customs clearance and allow individuals to buy goods abroad and import them into Russia duty-free for amounts slightly above $500. These amendments are currently undergoing interdepartmental approval. Most likely, the bill will not reach the State Duma in the spring session, but chances are very high in the autumn session, the official clarified.

She did, however, promise that the document would spell out as much as possible the criteria by which customs officers could determine whether consumer goods are being imported for sale or for personal use. Thus, in her opinion, this sanction will not affect citizens who buy things abroad for themselves and not for resale. But after all, there are no special identifying marks on 'shuttle traders' – so the category of 'tourist or not tourist' will again be determined by a customs official, and even the leadership of the customs service itself knows how corrupt this sphere already is.

As Dmitry Yanin, chairman of the board of the International Confederation of Consumer Societies (ConfOP), suggested, the legislative amendments, if adopted, will lead to a host of problems primarily for ordinary citizens who travel abroad for vacation or on business. '$500 is the price of a good suit! It turns out you can't even bring in a suit? This will simply make life more difficult for many Russians,' he is confident.

The Russian government has long been on the offensive against citizens' suitcases. Since last Sunday, only 35 kilograms of baggage can be brought into the Russian Federation duty-free, instead of 50 as was the case just on Saturday. The frequency of moving goods across the Russian customs border has also changed – whereas previously this was allowed no more than once a week, duty-free transport is now permitted only once a month. Violation of the new law carries an administrative fine ranging from half to twice the value of the goods being transported. According to experts, such measures were caused by the fact that often goods intended not for personal use but for subsequent sale are brought in under the guise of baggage. As a result, the state loses tax payments and local producers suffer.

As a result, according to the officials' own forecasts, prices for goods imported into Russia by 'shuttle traders' may rise by 30% or even higher. This will primarily affect clothing and toys. According to the Ministry of Economic Development, the volume of 'shuttle' imports of clothing and footwear 'on the European part of the Russian borders' currently accounts for 20-30% of total imports, while in the Far East this figure reaches 60-80%. According to forecasts by the Federal Customs Service, the volume of shuttle trade as a result of these measures may shrink by 20%.

What will happen to the 'shuttle traders' themselves is still unknown. As Dmitry Yanin recalled, at one time such a business was an opportunity to give people who had lost their jobs through no fault of their own at least some income. And even now, in his words, in a number of regions they are the main suppliers of goods, and it is difficult to compete with them. 'The Far East, for example, entirely relies on shuttle trade – from household appliances to food products,' the expert clarifies. Regarding how this measure will affect trade and people, the specialist reasons: 'From the point of view of equalizing competition, this decision is correct, but in social terms – what to do with these people?'

As for the sharp rise in prices, the chairman of the ConfOP board has much more moderate forecasts: 'I think the average price increase will be about 20-25%, and only for some goods it will really reach 30-35%.' At the same time, as Novye Izvestia notes, Yanin is convinced that this measure, unfortunately, will in no way affect the rise of the Russian light industry, in particular the production of quality footwear and clothing. 'It will simply work in the interests of importers who do not use the shuttle supply scheme,' the specialist is confident.