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Prime Minister Mikhail Mishustin held a meeting on regulation of cross-border e-Commerce. Have anyone from abroad ordered a product through online shopping.

the Russian market of online trade is growing rapidly. Over the past four years he has doubled the share of foreign goods decreased from 23 to 16 percent. This year is the impact of the spread of coronavirus infection. In the first half of the volume of forwarded international mail declined by a quarter. Affected and reduced tax-free threshold of goods for personal use.

Our aim is to support the development of cross-border online trade and provide our citizens with the opportunity to enjoy a wide range of goods from any country of the world, – said the head of government. – Must be a clear mechanism with clear rules and regulations, you need to find a balanced solution in terms of works of Russian and foreign online platforms, improve services and speed of delivery of goods.

Among the many proposals Michael Mishustin has allocated the use of customs warehouses on the territory of our country. “The seller this will reduce a number of costs to ensure a stable demand for the consumer will decrease product delivery time and provide access to a wider range,” – he explained the benefits. The government can increase the transparency of transactions, to protect the rights of consumers and to increase customs duties. In addition, it will be possible to re-export. Customs warehouse hubs on the territory of our country will be used to promote products to neighboring markets.

“it is expedient to carry out the experiment in the organization of such a customs warehouse,” he said. The Ministry of Finance jointly with the Federal customs service has prepared a draft concept of the administration of the goods transported in the framework of cross-border e-Commerce. It is assumed the allocation of such products in a separate category and the establishment of the institution operator that will have the rights to the performance of customs operations, said Mishustin.

the Analysis of world practice shows that a universal and effective model of regulation of cross-border e-Commerce has not developed. Therefore, according to General Director of “Mail of Russia” Maxim Akimov, Russia needs an experimental method carefully to find their own. “The meaning of the proposed experiment is to not to focus on complex and burdened with different circumstances discussions with our colleagues in the Eurasian economic Union, do not stand on the spot, and to try new solutions,” he said.

it is Proposed to create such conditions that the products are now citizens of PRobretayut from abroad for personal use, received in a customs warehouse and from there upon receipt of the order is sent to the buyer. For the system of customs warehouses will act customs duty and value added tax, but this changes the speed of delivery. “The underlying hypothesis is that the buyer in the framework of cross-border trade will prefer to pay slightly more due to VAT and customs duties standard with literally zero threshold while substantially reducing delivery times,” – said Akimov. We are talking about delivery within days from the date of purchase in the online store until one to two days in Central Russia.

At the same time for the rest of the e-Commerce proposes to conduct systematic work with partners in the EEU, to lower the threshold of duty-free trade. “This decline in thresholds must and can be purely synchronous in nature, otherwise the logistics work will flow smoothly to our neighbors because we do not have comprehensive monitoring capabilities on commodity flows at our borders,” – said the head of “Mail of Russia”.

the Goods in a customs warehouse, Maxim Akimov has explained the scheme of his work, will be placed on a standard transport documents, and in that moment, to pay VAT and customs duty will not be required. This occurs at the time of release of the goods from the customs warehouse. “It is clear that such logistics facilities should be located close to centres of absorption of the goods, to centres of consumption,” he said.

Akimov sure that the model basically takes into account the interests of all stakeholders, it is therefore proposed to start the experiment “with a fairly high bar” standard value-added tax and a standard for each product the customs duty. If such a scheme will not create interest among Internet sites, the government will propose to clarify the parameters. With the rapid preparation of normative legal acts “Mail of Russia” is ready to start the system in February of next year. The experiment may begin in Moscow and Novosibirsk, where the company has for this technology.

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Jennifer Alvarez is an investigative journalist and is a correspondent for European Union. She is based in Zurich in Switzerland and her field of work include covering human rights violations which take place in the various countries in and outside Europe. She also reports about the political situation in European Union. She has worked with some reputed companies in Europe and is currently contributing to USA News as a freelance journalist. As someone who has a Masters’ degree in Human Rights she also delivers lectures on Intercultural Management to students of Human Rights. She is also an authority on the Arab world politics and their diversity.