Electronics from China will cost less in Russia
The Ministry of Digital Development, Telecommunications and Mass Media of the Russian Federation (Mintsifry of Russia) has proposed establishing a zero customs duty rate for the import of computer equipment into Russia, as well as components for the production of electronics - hard drives, drives and data storage systems (SHD).
Such a measure will reduce the cost of electronics production in the country, as well as increase the volume of electronics imports from China and other Asian countries.
It is assumed that the zero rate of customs duty will be valid for six months in 2022.
At present, in Russia, the customs duty has been preserved only for goods under the FEACN 8523 (tape drives, SSD and HDD and non-volatile data storage devices, etc.). The rate ranges from 1% to 13% depending on the category of goods.
The Russian market is extremely dependent on foreign supplies of data storage systems. According to IDC, in the fourth quarter of 2021, the size of the storage market in Russia amounted to $211 million, which is 34.2% more than in the same period last year.
Most of the market is occupied by Huawei - 39.1%, followed by the Russian company Yadro (20.9%) and the American Dell (9.5%).
But, according to the director of the Promobit company, the most useful support measure for Russia would be the abolition of VAT on components imported into the country: “If they are not subject to VAT, and finished electronics imported into the country will be, then we will be able to compete with Huawei in terms of goods assembled in the country”, this measure is also being considered by the Ministry of Digital Development, Communications and Mass Media of the Russian Federation.
Created: 17 March 2022