Russian authorities considering lowering or abolishing duty-free online purchase limits

The Russian authorities are considering lowering the threshold for purchases made from foreign online stores under which buyers are exempt from paying duties. Currently, up to 1,000 euros ($1,077) of goods per month can be ordered duty free. According to RBC, authorities plan to lower this limit to 500 or 200 euros ($538 or $215) or abolish it completely.

Several sources told RBC that the Russian Chamber of Commerce and Industry and Russia’s Federal Antimonopoly Service, as well as a number of market players, including Russian Post, large online retailers, logistics operators, and Russia’s Cross-Border Trade Association, advocate for maintaining the existing threshold. Russia’s Industry and Trade Ministry is pushing to lower the threshold to 500 euros, while the Russian Finance Ministry and the Federal Customs Service, according to RBC’s sources, believe that duties should be imposed on purchases over 200 euros. Russia’s Economic Development Ministry is still studying the issue but overall “leans more towards keeping the existing threshold.”

According to expert assessments cited by RBC, reducing the threshold for duty-free online purchases will lead to a 5–15 percent increase in prices for goods and a decrease in sales.