Duty reduction will sharpen competition among shoe makers
From September 1 to 2015, import duties in Russia will decrease by more than 3 of thousands of commodity items, including light industry products, wholesale children's shoes and clothing, in particular. The innovation is connected with the fulfillment of our country's obligations to the World Trade Organization (WTO), of which Russia became a member two years ago. So, when importing a batch of children's clothing into the Russian Federation, entrepreneurs will have to pay 1,3 euros per kilogram. So far this amount is 20% of the total value of the goods. The duty for importing shoes will be 1,25 euros per pair, instead of the current 2 euros.
“A duty is an economic mechanism that allows the state to give domestic producers a competitive advantage over imported goods. If the duty itself goes to the development of this particular production, the effect is doubled. Competitive advantages obtained in this way are administrative, therefore they do not in any way stimulate the producer to raise production efficiency and give rise to monopoly. It should not be forgotten that the state provides this support to domestic producers at the expense of consumers. You can help, but consumers are not allowed to sit on the neck. The introduction of duties should be limited in time until the moment when production is on its feet, but should not exceed reasonable values. For the footwear industry, this is 2-3 years. Further duties should be canceled. They are being replaced by the laws of the market and competition. And buyers get the best at competitive prices. With a reduction in duties, domestic producers may not withstand the competition, that is, show their inability to create efficient production, even with such state assistance. Reducing duties is a test for domestic producers and a boon for consumers, that is, for you and me, "commented the manager of Mila - wholesale footwear" Alexander Borodin.
From September 1, 2015, import duties in Russia will decrease by more than 3 thousand commodity items, including light industry products, wholesale children's footwear and clothing, in ...
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