Russia expands list of perfumes and cosmetics products subject to 35% import duty
MOSCOW. April 22 - The Russian government has expanded the list of perfumes, cosmetics and household chemicals subject to a 35% import duty, as well as the list of countries whose products are subject to restrictions. The appropriate changes to resolution N2240 were published on Friday.
The duty will now apply to toothpastes from Spain and Japan, hairsprays from Poland, shaving products from Germany and some other goods that were not previously subject to a 35% import duty, the press service of the Russian Ministry of Industry and Trade said.
"This measure will affect only those types of products where manufacturers are already producing analogues that are not inferior in quality and range. For example, using their existing facilities, Russian companies are able to increase the production of teeth cleaning products by more than 46 million units per year, shampoos by more than 97 million pieces per year, and shaving products by over 90 million pieces per year," the ministry said in a statement.
The Russian Ministry of Industry and Trade, citing data from Rosstat, said that production of domestic perfumes and cosmetics products increased 19% in 2023 to 2.15 billion units. "For categories where higher duties were introduced on foreign analogues, the increase was 78% for shampoos and other hair products, 16% for deodorants and antiperspirants, and 7% for shaving products," the ministry said.
"The introduction of duties is aimed at supporting Russian manufacturers. Over the past year, more than 7 billion rubles have been invested by companies in the creation of cosmetic production in our country. For example, Polex Beauty (products for professional hair coloring and care), Grass (household chemicals and skin care cosmetics for hair), TSP (skincare and decorative cosmetics), and TBH Ramenskoye (household chemicals and cosmetics). Continuation of this measure will further increase domestic production about 10% per year based on previous dynamics, as well as allow a number of projects to be implemented to localize production of raw materials and packaging," the Ministry of Industry and Trade said.
The domestic perfumery and cosmetics market consists of over 600 companies (about 30% have their own production sites, and 70% produce products under contract), of which 155 are full-cycle manufacturers, the ministry said.
As reported, Russia introduced the 35th customs duty on the import of certain types of perfumery and cosmetic products (shampoos, hair products, teeth cleaning products, shaving products, deodorants and antiperspirants, products for aromatization and deodorization of indoor air, detergents and cleaning products) in December 2022. It also included weapons from the USA, Canada, Great Britain, Australia, New Zealand and Poland. Later, the list of goods was supplemented with wine, glycerin and plywood. The tariff was originally due to expire at the end of 2023, but was extended until December 31, 2024.