Russia’s government has cancelled import duties on rechargeable batteries for cell phones and processors for nine months starting from October 14.
Photo: Ìàðèÿ Ïëîòíèêîâà
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Computer Processors to Enjoy Duty-Free Status
Russia’s government has cancelled import duties on rechargeable batteries for cell phones and processors for nine months starting from October 14. As today’s duties are just 10 percent, the suppliers don’t expect their abolishment to materially affect retail prices. But the novelty will probably lure to Russia contract makers of electronics preferring to build facilities in Eastern Europe.
The duties cancellation was initiated by Intel that produces processors and Elcoteq, which is the electronics contract assembler. The given reasons were the need to cut down retail prices for processors in Russia and to reduce prime cost of the cellular phone production at St. Petersburg works.
The government’s ruling takes effect October 14. It will cancel the duties on all types of cell phones accumulators and on processors. Today’s duties equal 10 percent and importers will pay only the VAT of 18 percent after the cancellation. The expediency of final abolishment of duties will be considered on expiration of nine months, sources with Economic Development Ministry said yesterday.
According to market players, this move of the government creates equal terms for local and foreign producers. The duties on computer components and ready-made PCs were cancelled past year, but they survived for processors. As a result, Russia’s assemblers now pay 28 percent of the customs value when importing processors, while importers of ready computers settle only the VAT of 18 percent.
www.kommersant.com
All the Article in Russian as of Sep. 18, 2007
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