Air conditioners and dishwashers can rise in price by 10% when imported

Air conditioners and dishwashers can rise in price by 10% when imported

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The Russian government is asking the EEC to set an import customs duty of up to 10% on air conditioners and dishwashers, since the country has its own production. However, the profile association claims that such equipment is not produced in Russia for the consumer segment and duties will only lead to higher prices. Interested in a protective measure, according to market participants, a number of Chinese and Turkish manufacturers that already have production facilities in Russia and plan to expand the range of products.

The Eurasian Economic Commission (EEC) has received a proposal to increase the rates of customs duties on the import of a number of categories of consumer electronics into the EAEU – in particular, air conditioners and split systems, fans and household dishwashers, follows from the copy of the EEC draft decision available to Kommersant. Now, a zero rate of import duty has been set for these categories of goods, it is proposed to increase it to 3-10%.

The proposal came from the Russian government and was prepared to ensure “the sustainable development of the domestic radio-electronic industry,” a source familiar with the initiative told Kommersant. Among the arguments is the presence in Russia of “own production capabilities” for the production of this equipment.

Meanwhile, the association of trading companies and manufacturers of electrical household and computer equipment RATEK (unites M.Video-Eldorado, Huawei, LG, Samsung and others) in a letter to the EEC dated August 1 (Kommersant has a copy) emphasizes that the introduction of duties “unreasonably, will lead to higher prices and a reduction in the range.” The association clarified that, according to its data, there are no production of air conditioners, split systems and household dishwashers in Russia, and “none of the well-known manufacturers are planning to create it.” The Ministry of Industry and Trade did not respond to Kommersant’s request.

After the outbreak of hostilities in Ukraine, many factories of foreign manufacturers in the Russian Federation stopped working. Thus, the South Korean Samsung and LG stopped production in the Kaluga and Moscow regions, respectively (see Kommersant of May 31). The German Bosch, which also stopped working, began negotiations on the sale of Russian capacities to the Chinese Hisense (see Kommersant of June 20). The American Whirlpool (which produced Indesit, Hotpoint, etc.) sold three of its factories in Lipetsk to the Turkish Arcelik, which manufactures Beko household appliances (see Kommersant dated June 28, 2022).

If there are manufacturers of climate equipment in Russia, they produce only industrial systems, RATEK representative Anton Guskov clarified to Kommersant: “It is impossible to convert them to consumer equipment, this requires a different approach and is in fact tantamount to launching a new plant. The same applies to dishwashers.” According to him, duties are usually introduced to protect local production, “in this case, there is no one to protect.”

Representative of the supplier of large household appliances F+ tech | Marvel confirmed to Kommersant that there is no mass production of split systems and dishwashers in Russia: “But, probably, large manufacturers of household appliances that have their own factories in the country are planning to start producing goods in these categories and for this they are agreeing to increase duties” . He admitted that “Turkish or Chinese companies operating in our market” could have asked for a protective measure.

A Kommersant source in the household appliances market confirms that Chinese and Russian manufacturers of dishwashers were interested in localizing the production of appliances in the Russian Federation, but the absence of duties for foreign competitors made it unprofitable to build or re-equip factories in Russia: “Perhaps now the increase in the rate of duties is one of the terms of the deal. As for air conditioners, according to him, it is simply unprofitable to produce them in Russia with the expectation of the domestic market, equipment is sold only during the hot season, so the capacities will be loaded for a maximum of six months.

Yuri Litvinenko, Timofey Kornev

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