Imported duties will be imposed on import routers up to 20%

    The Russian government has commissioned to develop measures to support Russian manufacturers of telecommunications equipment. The following measures are proposed:

    1. increase of import customs duties up to 20% with zero duties on the import of components (to stimulate the national assembly);
    2. preferential treatment of taxes and insurance premiums;
    3. creation of a unified register of telecommunication equipment of Russian origin (TORP).

    In theory, after the introduction of duties, it will be more profitable to import components into Russia and assemble equipment on site. This scheme worked with imported cars, and now it can be repeated for imported routers and other telecommunications equipment.

    Today, the main part of the Russian market is occupied by Chinese Huawei, ZTE, and others, Kommersant writes . Russian competitors from the Telmi alliance (companies T8, Mikran and Eltex) ask the Ministry of Industry and Trade to increase their share in the domestic market from 6–8% to at least 30% in two to three years.

    The list of government instructions to stimulate the procurement of domestic routers was published on January 14, 2018 following a meeting on December 18, 2018 in Novosibirsk on the implementation of measures of the national program and the national project "Digital Economy".

    In particular, the Ministry of Industry and Trade, the Ministry of Economic Development, the Ministry of Communications and the Federal Antimonopoly Service, together with interested organizations, were instructed before March 1, 2019 to submit a draft regulatory legal act on the creation of the Unified register of radio-electronic equipment of Russian origin with the release of the Register of telecommunication equipment of Russian origin .

    Before March 1, 2019, the Ministry of Industry and Trade, the Ministry of Finance and the Federal Anti-Monopoly Service was instructed to make changes to the government decree “On restrictions and conditions for the admission of certain types of electronic products originating from foreign countries for the purposes of procurement to meet state and municipal needs”. After making changes, it will be clearly established that only equipment from the Register is recognized for telecommunications equipment produced in the Russian Federation.

    In addition, the Ministry of Industry and Trade, the Ministry of Finance and the Federal Antimonopoly Service before March 1, 2019 should make changes to the government decree “On prohibiting the admission of goods originating from foreign countries, works (services) performed (rendered) by foreign persons, for the purpose of purchasing goods, works (services) for the needs of national defense and state security. ” That is, the decree stipulates that before March 1, the list of prohibited goods will be supplemented by telecommunications equipment (for purchases for defense and security needs).

    Until June 1, the listed departments are obliged to approve the order establishing the form of a standard state contract for the purchase of telecommunications equipment, which provides for the obligation to purchase domestic telecommunications equipment from the Register.

    Apparently, providers are also trying to transfer to domestic equipment. The Ministry of Communications, the Ministry of Industry and Trade, the Ministry of Finance and the Federal Antimonopoly Service must, before June 1, 2019, establish the form of a model state contract for the provision of services for connection to communication networks and the Internet or the provision of communication services providing for the contractor’s obligations to acquire domestic telecommunications equipment from the Registry .

    Most government guidance applies to state-owned companies. But there is one point that will affect all consumers. The Ministry of Industry and Trade and the Ministry of Economic Development and Trade with the participation of the ANO Analytical Center for the Government of the Russian Federation, interested organizations and trade missions of the Russian Federation abroad are charged with:

    • to conduct a comparative analysis of the cost and economic conditions for the production of telecommunications equipment abroad;
    • taking into account the analysis conducted before May 1, 2019, submit proposals for increasing the import customs duty rate ( up to 20% ) on telecommunications equipment produced in the Russian Federation in accordance with the Registry data .

    Egor Ilyin, Commercial Director of the Micran Company, positively assessed the adopted document. He stressed that vendors abroad "enjoy the great support of their governments." With an increase in duties up to 20%, the domestic manufacturer can significantly increase its market share. Today, telecom operators note that foreign equipment is better in quality and price. Protective duty will adjust the balance of power.

    In addition to various prohibitive measures for the development of the Digital Economy project, the government resolution contains one permissive norm: the Ministry of Communications is tasked to make decisions on March 1, 2019 to shorten the time for issuing State Radio Frequency Commission conclusions and to cancel payment for examination of applicationstelecom operators to use frequencies in the range of 5-6 GHz for the organization of fixed wireless broadband communications in settlements of up to 500 people. However, this benefit is valid only when using domestic equipment from the Registry.

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