ANNOUNCEMENT 16 Jan 2018

On 16 January 2018, the Russian Government amended the list of equipment not produced in Russia and, hence, eligible for VAT-free imports with several models of equipment.

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 0 neutral
  • 2 liberalising

SOURCE

Government of the Russian Federation, Resolution Dated January 16, 2018 N 13 "On Changes in the List of Technological Equipment (Including Components and Spare Parts), with no Analogues made in the Russian Federation, Imported on the Territory of the Russian Federation Without Tax on Added Value", http://www.consultant.ru/cons/cgi/online.cgi?rnd=ACAA1104DAA844098AB489133D31DA5D&req=doc&base=LAW&n=288292&dst=100005&fld=134&REFFIELD=134&REFDST=1000000028&REFDOC=319455&REFBASE=LAW&stat=refcode%3D19827%3Bdstident%3D100005%3Bindex%3D30#b2hqym5d0ig

Inception date: 27 Jan 2019 | Removal date: open ended

Internal taxation of imports

On 16 January 2018, the Russian Government amended the list of equipment not produced in Russia and eligible for VAT-free imports with six equipment types. Out of those six, only the following two didn't include references to specific producers: 

  1. Tariff line 8422 40 000 8 was expanded to include "lines for sorting, edging and strapping porcelain stoneware onto pallets."
  2. Tariff line 8477 80 990 0 was expanded, to include "technological line for the production of polyethylene terephthalate (PET) for textile purposes, with a capacity of up to 600 tons per day."

Since customs officials are instructed to refer both to the tariff line and product description when applying the VAT waiver, the List functions as a positive list (only listed pieces of equipment classify). Therefore, these amendments should be seen as an expansion of the scope of the waiver.

Although Russia is in a customs union with the EEU states, the measure is introduced by the Russian Government and only applies to imports into Russia. 

The legislation does not mention the effective date of implementation, but the most widely used legal database Consultant.Ru lists 27 January 2018 as the inception date. 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 27 Jan 2019 | Removal date: open ended

Import incentive

On 16 January 2018, the Russian Government amended the list of equipment not produced in Russia and eligible for VAT-free imports with six equipment types. Four were brand-specific equipment, as listed below:

  1. Tariff line 8428 39 900 9 was expanded to include "connecting node between areas of equipment, in the manufacture of porcelain stoneware for loading and unloading mechanism and storage, model ROBOFLOOR"
  2. Tariff line 8465 91 200 0 was expanded to include "technological equipment for wood processing - sawmill complex, manufacturers Springer, Soderhamn Eriksson, Microtec."
  3. Tariff line 8474 20 000 9 was expanded, to include "modular continuous mill, model MMC074, MTD 050 dosing station for raw materials and mill loading."
  4. Tariff line 8479 89 970 8 was expanded, to include "glazing line in the production of porcelain, model BCF143."

Since customs officials are instructed to refer both to the tariff line and product description when applying the VAT waiver, the List functions as a positive list (only listed pieces of equipment classify). Therefore, these amendments should be seen as an expansion of the scope of the waiver, albeit a firm-specific one.

Although Russia is in a customs union with the EEU states, the measure is introduced by the Russian Government and only applies to imports into Russia. 

The legislation does not mention the effective date of implementation, but the most widely used legal database Consultant.Ru lists 27 January 2018 as the inception date. 

 
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