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Import duties on fur coats have been reduced in Russia

For the winter season, the Russian government has prepared a pleasant surprise for connoisseurs of fur clothing. Duty rates on imported fur clothing have been halved - from 20 to 10%, duties on children's clothing will be even lower - 7.5%.

Transporting fur coats across the border will become cheaper from September 15, from the moment the government decree comes into force. Duties have been reduced in hopes of reducing “black” and “gray” imports. True, there is a fear that the reduced rates will fill the country with not very high-quality furs made in China.

The government's nod to lovers of luxury is dictated by the expectation of reducing fur smuggling. Fur clothing is incredibly and understandably popular in Russia : cold winters, the traditional “status” of fur and leather and the environmental friendliness of these materials nullify all the arguments of animal rights activists, which residents of European countries tend to listen to when replacing fur with synthetic materials. The volume of express loans issued by banks for the purchase of fur coats during the “high” fur season, from September to the end of December, can already rival the number of loans for the purchase of consumer electronics.

It is the development of credit mechanisms in recent years that has led to a gigantic increase in “gray” supplies. Short fur coats turned inside out are imported under the guise of ordinary jackets or other clothing, which is not surprising: a 20 percent duty plus 18 percent VAT creates a great temptation to minimize spending. The import of furs by shuttles has also intensified, dressing at the border in several fur coats at the same time - after all, it is very difficult to control the import of furs by private individuals. Police raids to detect counterfeit goods in stores discovered only small quantities of goods imported past customs, and were a drop in the ocean of counterfeit goods.

Legal importers have been trying for several years to lobby for the introduction of differentiated rates for fur clothing, which would be calculated depending on its price. The government is not yet ready for such a work scheme, but does not deny the possibility of introducing differentiated rates in the future. For now, a single rate scale will be used. The new duty rate will be 10%, but not less than 30 euros per piece. Children's clothing made of sheepskin, rabbit or hare will be taxed at a rate of 7.5%, but not less than 10 euros per piece. Children's clothing will be determined by the following parameters: height up to 164 cm, chest girth up to 84 cm. Duty rates have been reduced only for nine months, but according to current practice, subsequently new tariffs will most likely be fixed on a permanent basis.

The reduction in import duty rates includes fur coats made from mink, nutria, arctic fox, rabbit, raccoon, sheepskin - that is, from all types of fur popular in Russia. According to surveys, 38% of consumers prefer mink, while sheepskin, which is more suitable for the harsh Russian frosts, is preferred by 26%. At the same time, 70% of fur products sold in the country are imported. The most popular goods are from Italy, but it is often impossible to verify the origin of the product: fur coats sewn in China can be sold under the guise of Greek and Italian fur coats.

Irina SKLYAROVA