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. Last Updated: 07/27/2016

State Helps Importers

The introduction of excise duties on alcohol imported from other CIS countries sharply damaged the financial condition of these products' importers. In a role it isn't the least accustomed to, the State Customs Committee stepped forward to protect the interests of these importers. The committee drafted and sent a proposal to the State Tax Service asking it to soften the tax burden thrown on importers of alcohol.

The reason behind the strange behavior of the customs department, which, it would seem, would only welcome the hardening of fiscal measures, was the improper treatment of the importers by legislators. The fact of the matter is, the law "On the Introduction of Changes and Amendments to the Law 'On Excises,'" stipulates that excises on imported goods from other CIS countries will be levied -- after the fact -- Feb. 1.

Some businessmen signed contracts with CIS suppliers on the delivery of goods after Feb. 1, naturally going by former import conditions. The new law has presented these businessmen with a great financial dilemma. Now Russian importers have to compensate for the difference between the old tax duties and the new ones. For some companies, that difference exceeds 1 billion rubles, making it easier to declare bankruptcy than pay the new tax.