Contents
What is import?
Import is the process of bringing goods or services from other countries. This process is largely controlled by government authorities, which set customs duties, minimum prices for imported products, and taxes. Additionally, the government determines which goods can be imported, which countries can be traded with, and in what volume.
Import regulation in Russia
In the Russian Federation, import is regulated by two main legal documents: Federal Law No. 164-FZ and the Customs Code of the Eurasian Economic Union. There are also additional regulations, one of which is the Government Resolution of the Russian Federation dated 07.08.2014 No. 778. This document lists the countries from which the import of certain goods is prohibited, and as of 2016, this list includes 37 countries, including meat, fish, fruits, vegetables, nuts, and dairy products.
Import to Russia sharply decreased in 2015-2016, and the 2016 figures were even worse than during the 2008-2009 crisis. Since then, Russia has not been able to return to the record levels of 2014. Foreign trade includes both import and export, and to determine what occurs more frequently—import or export of goods—the trade balance is calculated. In Russia, it is positive and amounts to 87.9 billion rubles, indicating that the country sells its goods abroad more actively than it imports.
Why is import necessary?
For business
- Access to foreign goods: Import allows for an expanded range of products and offers items that are unavailable without international supplies. For example, automobile manufacturers often purchase necessary components from abroad.
- Cost reduction: Purchasing goods from countries with lower production costs, such as textiles from China, can reduce expenses and make products more affordable.
- Increased competitiveness: Using high-quality imported components can improve the quality of the final product and attract more consumers.
- Access to innovations and technologies: Importing modern technologies, such as drip irrigation systems, allows companies to remain competitive and efficient.
For the state
- Economic stability: Importing essential goods, such as fuel and pharmaceuticals, is critically important for the stability of the country.
- Price stabilization: Import helps to compensate for shortages of goods in the domestic market and prevents sharp price fluctuations.
- International relations: Import fosters stronger trade relations between countries, contributing to faster economic development.
- Job creation: Import can lead to the creation of new jobs in areas related to the servicing of imported goods.
Types of import
By type of import
- Gray import: The import of goods without the permission of official distributors, which can lead to reduced income for official suppliers and loss of tax revenue for the state.
- Parallel import: The import of goods without the consent of rights holders, often legalized under sanctions, allows for the maintenance of supplies of in-demand goods.
By type of goods
- Consumer import: Includes goods intended for end consumers, such as clothing and household electronics.
- Industrial import: Includes equipment, machinery, and components necessary for production.
- Service import: Includes services provided by foreign legal entities, such as transportation and information services.
- Import of strategic resources: The import of goods, such as oil and gas, which play an important role in the economy.