Customs Will Get the Right to Raise Import Values: What This Means for Prices

At the same time, the rules of the game remain opaque. Neither the draft amendments nor the current EAEU rules require customs to disclose to the importer which specific characteristics and import conditions the analogous product used for comparison had. The declarant effectively has to prove their case blindfolded.

Who Is at Risk

At-risk are companies that purchase goods at a discount and work with different suppliers. Their customs value most often differs from the market average, and their shipments will be the first candidates for adjustment.

The amendments will hit the electronics, equipment, and raw materials segments hardest, Forbes writes. In these industries, the assortment is broad, shipments are heterogeneous, and the price spread between suppliers is at its maximum — there are plenty of conditions for 'selecting an analog' with a higher price.

Consequences for the Market

The scale of price increases depends on two factors: the volume of adjustments and businesses' ability to pass additional costs on to the buyer. Competition does not always allow this to be done fully — in that case, the importer will lose margin.

For now, the document remains a draft. If the amendments come into force in their current form, participants in foreign trade in the five EAEU countries should prepare for higher costs at the customs stage and for more frequent requests for supporting documents.