Russian customs regulations: End in sight to new customs duty for foreigners?

Amid a growing discussion on the challenges faced by foreign investors in dealing with Russian customs regulations, the government has taken steps to help ease requirements for those entering the country. 

On Wednesday, The Moscow Times reported that the Economic Development Ministry has promised to stop charging a customs fee on the personal belongings of foreigners who move to Russia.  In a letter to the Russo-German Chamber of Commerce, the ministry said that it would expand the list of exemptions, which already includes items such as jewelry, baby strollers and pets, to include “other goods clearly designated for private use.”

The fee on personal belongings came into effect on July 1, 2010, with the formation of the Customs Union between Russia, Belarus and Kazakhstan.  Under the newly-formed Customs Union, personal belongings were treated like commercial goods upon entry into Russia.  The first 50 kg were free, but expatriates and moving companies were charged $5 for each kilogram over the allotment. 

Andrew Somers, president of the American Chamber of Commerce in Russia, told The Moscow Times that the government’s decision to change the policy initiative was logical because the customs fee was “an aberration inconsistent with government policies.”

The change in customs policy is expected to take place sometime in the early fall.