Russia's E-Commerce

From MT:
"Battle Over E-Commerce Ejects Foreign Couriers"

Consumers and industry insiders are blaming domestic e-commerce lobbyists for the customs clampdown that provoked several international shipping companies to halt express deliveries to private individuals in Russia last week. DHL, DPD and FedEx cancelled their express parcel delivery services after learning that all shipments, regardless of their value, would now have to be formally registered with customs. Registry requires an array of additional documentation, including a purchase receipt and the buyer's passport number, Vedomosti reported. The change has led to "a substantial increase in formal customs entries, resulting in a significant delay in the delivery of packages to private individuals in Russia," Ivan Shatskikh, country manager for UPS Russia, said in an e-mailed statement. These heightened requirements are just the first of new customs policies set to tighten regulation and increase taxation of Russia's burgeoning e-commerce market. Customs authorities will soon begin levying a 30 percent duty on all purchases from foreign e-commerce companies valued at more than 150 euros ($200). Previously, customs duties were only applied to shipments worth more than 1000 euros or weighing in at more than 31 kilograms. The new limit was initiated by customs authorities in cooperation with the Association of Online Vendors, which includes such major domestic players as M.Video and KupiVip, RBC reported. The Society for Consumer Rights Protection called for a boycott on all the association's member companies last week and on Friday announced plans to hold a demonstration on Feb. 8 protesting the lowering of the duty-free threshold. "According to the lobbyists, the new measures will enable us to battle unregistered importers. However, it is obvious that the adopted means are nothing more than a struggle with western Internet giants, to whom Russian online shops are losing market share," the society said in a statement. After meeting with President Vladimir Putin earlier this month, Housing Minister Mikhail Mel announced that "an ordering of Internet trade" would be used as a source of funding for infrastructure projects. The Finance Ministry estimates the increase in revenues from the lowering of the duty-free threshold at between 20 billion and 40 billion rubles (between $580 million and $1.2 billion), Mel said. Delivery time is not the main consideration for Russians who shop abroad, most of whom are lured by products that are not available in Russia and better deals than they can find at home, the Higher School of Economics study found.

^ This is clearly trying to put a monopoly in favor of Russian shipping companies (including the Russian Post Office.) I can understand if these companies provided a timely, efficient service, but from what I have personally experienced they don't seem to care when or if the item gets to its destination. ^

http://www.themoscowtimes.com/business/article/battle-over-e-commerce-ejects-foreign-couriers/493372.html