Anyone in the export business with experience of Russia?

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Mudster

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We're dealing with the supply of marble and limestone for a central Moscow Hotel refurb on a floor by floor basis.

The first order has been placed for one floor and the total cost of goods is £16,000.

We can physically get this order there for around the £2000 but the shocker is the import duty. I knew this would be substantial...but I wasn't quite expecting the USD$43,000 we've been quoted.

I know how much corruption there is in Moscow but need to know if this is the going rate.

Anyone have any experience of this? I've put out a few feelers with some Architects I know that have offices out there but the more the merrier.
 
My employer exports goods to pretty much every country in the world (including Russia) and what I can tell you is that the import duty rate will vary enormously depending upon the tariff code assigned to the goods.

I don't know for sure because I haven't looked up the tariff codes concerned but I would expect there to be very diffferent import duty rates applied to (for example) a material classified as "building material" to one classified as "decorative stone". I'd suggest a call to your local Chamber of Commerce who should be able to provide you with info on defining the appropriate tariff code, and the import duty rates for Russia applicable to different tariff codes.
 
We know what the tariff code for these items are, the stumbling block we've found is they are basing the cost at what they "feel the goods are worth in Russia" rather than their actual invoice value...that's a new one to us!
 
I do a lot to Russia but mainly Chemicals, if it is marble what about trying to get it in there under the Minerals classification which only attracts 5% duty? What you really need is a man on the inside to grease the wheels and smooth the import procedure thats how we work it. That said I have had some test equipment stuck in Customs in Russia since 11th November as we are still arguing over its value even though it is coming back to the UK after use :dk: Russia & CIS are a law unto themselves.
 
:dk: Russia & CIS are a law unto themselves.

That'll be the stumbling block......

We could ask them tomorrow and get a different price, then Friday and a different price.....

So difficult to do business with.
 
Based on very limited knowledge, we have exported to Moscow once and the goods were collected by the carrier and delivered to Moscow, the client paid the import duty not us. Can your client not do the same, probably having better inside knowledge of duties and taxes than us westerners :D
 
Slightly different Business with Russia, But similar outcome.
I am involved in a few charities operating in Russia and often ship items directly either by Road or Air.
The point of entry taxation has been as high as 100% of the Items value.
You may also discover that many people involved in the process of checking and handling in Russia also often take items, it seems to be acceptable to them. If they are prevented they will damage (handle very badly)
I think things have improved in recent years, but sadly it is still such a corrupt society.

Good Luck
Joe
 

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