Russia to Extend the Parallel Import Mechanism for 2024

Russia to Extend the Parallel Import Mechanism for 2024
Photo: 25.12.2023 1185

The Russian government has decided to extend the parallel import mechanism for 2024, Russian Minister of Industry and Trade Denis Manturov said in an interview with RIA Novosti.

According to the Minister, the parallel import mechanism in Russia will be extended for 2024, while a gradual reduction in the list and nomenclature of goods approved for importation into the country under this scheme is expected.

"There is constant work on the adjustment of both manufacturers and nomenclature, for which either our Russian companies reach the given indicators of volume and quality, or foreign suppliers ask to be excluded from the list, returning," 

Manturov said.

Parallel importation involves the importation of original goods into the country without the authorization of the right holder or manufacturer. The mechanism came into effect in Russia on March 29, 2022 in response to Western sanctions. At the same time, this mechanism does not mean legalization of counterfeiting, the measure involves the importation of original goods, but through alternative supply channels, stressed the Ministry of Industry and Trade. In September, it was extended for 2023. 

Anton Maslov, a researcher at the BRICS Antimonopoly Center, noted earlier that the current scheme is far from the parallel import model that actually works.

The current scheme is far from a really working model of parallel imports, Anton Maslov, a researcher at the BRICS Competition Centre, noted earlier.

"Manual control of import flows is still established, which does not allow businesses to quickly adapt to the conditions of sanctions pressure and prohibition of import of products by right holders. The model of legalization of parallel imports remains non-transparent and requires a high administrative burden due to the need to constantly update and adjust the list of goods," 

Maslov emphasized.

In May, Maxim Shaskolsky, Head of the Federal Antimonopoly Service, called for the parallel import regime to be extended to all categories of goods, except for those whose production is localized in Russia. This proposal did not find wide support in the Government, although, according to the FAS, the cost of goods imported through parallel imports is reduced by up to 50% for the end consumer. 

According to the Federal Customs Service, in 2022, the volume of parallel imports exceeded $20 billion. In late December 2023, Russian First Deputy Prime Minister Andrei Belousov said that over the past two years, over $70 billion worth of goods were imported into Russia through parallel imports.

Source: RIA

parallel imports  Russia 

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