GS Group asked the government to impose a 400% duty on LED imports

The Russian electronics manufacturer GS Group has asked the government to impose duties on foreign LEDs from 0% to 400% of the customs value. Such a step, the company hopes, will increase the volume of production and sales of domestic products, as a result of which they will reduce prices for them. But not all market participants agree with the proposal: they fear that it will lead to an increase in counterfeit products and an increase in prices for end devices. They consider subsidizing the consumption of Russian LEDs to manufacturers of lighting equipment as a more effective measure.

“Kommersant” got acquainted with the fax message of the meeting of the subcommittee “Investment policy and ensuring the availability of financing” of the commission of the State Council of the Russian Federation in the direction of “Industry”, which was held at the Department of Investment Policy of Moscow on August 31. At it, a representative of the manufacturer of electronics and LEDs GS Group asked the government to increase import duties on foreign diodes and lamps from 0% to 400% of the customs value. The company argues its position by the fact that foreign LEDs do not allow domestic manufacturers to compete for orders in Russia due to their low cost.

The Moscow Department of Investment and Industrial Policy confirmed the discussion of initiatives: “The issue requires more detailed study and the search for alternative support measures based on market analysis.” The subcommittee will submit its proposals at a later date, the department added. The Ministry of Industry and Trade did not answer “Kommersant”.

The use of Russian-made LEDs in lighting engineering is enshrined in draft government decree No. 719, but the main share of the Russian market is occupied by products from Southeast Asia, the cost of which is lower than Russian counterparts, the GS Group noted: “At the same time, the quality of imported components is often lower than domestic counterparts and may pose a threat to the life and health of the end user. The absence of duties allows unscrupulous manufacturers of lighting equipment to massively use cheaper imported LEDs, passing them off as manufactured in Russia, only formally complying with the requirements for recognizing products as domestic, the company added.

The General Director of the Association of Manufacturers of LEDs and Systems based on them (APSS) Olga Grekova believes that the proposals cannot be limited to the introduction of import duties on LEDs: “Without protective duties for finished lamps, we will not only not help domestic LED manufacturers, we will generally bury the LED lighting industry “.

The introduction of import duties will not provide protective measures for Russian manufacturers due to the lack of a complete range of Russian-made LEDs in the Russian Federation, but, on the contrary, will create channels for the gray import of foreign products, contribute to the growth of counterfeit LEDs and prices for end products, says the Director for Relations with Government Agencies of MSK BL Group” (manufacturer of LEDs and lighting devices) Evgeny Dolin: “The real support for manufacturers of radio-electronic components and LEDs can be provided by lowering import duties on materials and components for production, subsidizing lighting manufacturers for the consumption of Russian LEDs.”

Timofey Kornev, Nikita Korolyov