Russian Manufacturers Suggest Tightening IT Equipment Imports - Reports

Russian Manufacturers Suggest Tightening IT Equipment Imports - Reports

Russian telecommunications equipment manufacturers have proposed new measures for import substitution to the government suggesting that imports of IT equipment be tightened, media reported om Monday.

MOSCOW (Pakistan Point News / Sputnik - 20th August, 2018) Russian telecommunications equipment manufacturers have proposed new measures for import substitution to the government suggesting that imports of IT equipment be tightened, media reported om Monday.

According to the Kommersant newspaper, Russian companies Eltex, Micran, T8 as well as the Russian Association of Manufacturers of Electronic Equipment and Instruments, Electronics Developers and Manufacturers Association and the National Platform for Industrial Automation sent their request in a letter addressed to Russian Prime Minister Dmitry Medvedev.

They, in particular, proposed that foreign suppliers of telecommunications equipment such as Huawei, ZTE, Cisco, D-Link, NEC be required to directly import their goods and stop using brokering companies in customs processing.

The Russian companies also called for the introduction of special markers for imported equipment and urged the authorities to ensure sectoral associations' access to customs statistics in order to prevent the value-added tax from being understated.

According to the Kommersant's source in the Russian government, the request was redirected to the Russian Industry and Trade Ministry, Digital Development, Communications and Mass Media Ministry, and Finance Ministry, where it should be processed.

In 2017, the value of the Russian telecommunications equipment market stood between 250-300 billion rubles ($3.7-4.4 billion), with the share of the Russian manufacturers standing at the level of 6-8 percent, according to the Russian Electronics Developers and Manufacturers Association's data.

Russia has been implementing a full-scale import substitution program since 2014, when the country was sanctioned by the West over its alleged role in the Ukrainian conflict.