Russia lowers import duties on French perfume, hair products to 20% from 35%

MOSCOW. April 23 (Interfax) - The Russian government has revised the list of perfume and cosmetic products and household chemicals imported from unfriendly countries and subject to a higher customs duty of 35%.

The Cabinet has approved the relevant changes to government resolution No. 2240 "On the approval of the rates of import customs duties on certain goods whose country of origin is a state or territory taking measures that violate the economic interests of the Russian Federation," the Industry and Trade Ministry's press service reported.

"Due to the growth of domestic production of most categories of perfume and cosmetic products and household chemicals, import restrictions will be imposed on perfume, eau de toilette, skincare products, lip makeup, haircare products and powder," the ministry said.

At the same time, the government changed the terms of the protective measure for certain products. Specifically, French goods in the categories of "perfume," "eau de toilette" and "hair products" will now be subject to a duty of 20% rather than 35%.

"This change, like all the others, was made after discussions with industry associations and an analysis of perfume and cosmetics consumers' preferences," the ministry said.

The list of countries whose products are subject to the additional duty has also been revised. Hungary, Slovakia and South Korea have been excluded, while France has been added to the list of exceptions in the category of "powder," and Italy has been added in the categories of "powder" and "lip makeup."

"This special economic measure has already proven its effectiveness and benefit for the Russian market. For example, thanks to it Russian production grew by 22% in 2024 compared to 2023; there is also growth in the localization of production. Niches vacated as a result of the departure of Western manufacturers and timely support from the state to promote Russian brands made it possible for national brands to have a 68% share of the total market in 2024, which is almost 17 pp more than in 2023," the ministry said, commenting on the results of the protective import duties.

The additional import duties of 20-50% on certain goods from unfriendly countries were imposed by resolution No. 2240, which was issued on December 7, 2022. The list of products subject to the higher duties includes weapons, perfume products, household chemicals, wine and beer, plywood and wallpaper. Confectionary products and batteries were added to the list in July 2024. The additional duties were set to expire on December 31, 2024, but they were extended until the end of 2025.