Sunday, 26 January 2014

Parcel Firms Halt Delivery To Russia

Parcel delivery service firms DHL, FedEx and United Parcel Service have ceased parcel deliveries to Russian online shoppers after onerous customs restrictions were imposed.

The news of the measures by Russian authorities emerged earlier this week. The restrictions are widely believed to be designed to encourage shoppers in the country to buy goods from domestic-based retailers - and make it harder to ship items from outside.

Authorities says the move, which limits the value of an inbound package to €150, will plug a loophole that means online shopping escapes paying duty on items such as electronics and clothes.

The parcel firms, which have stopped express delivery services to individuals, say the difficulty in filling out paperwork, which include proving items do not exceed the limit, means the service is now too costly for them.

According to the New York Times, quoting Russian newspaper Vedmosti, the companies must provide customs authorities with information which includes the receipt for the purchase and a passport number for the buyer.

Other countries has imposed restrictions or are considering doing so. Argentina took steps earlier this month to reduce the outflow of capital from its struggling economy. It has imposed a 50 per cent tax and packages which also can also no longer be delivered directly to shoppers' homes.

Meanwhile, Australia is considering lowering the threshold at which duty is imposed and America is examining ways of tightening state sales taxes which online retailers currently escape.

The parcel firms will continue to post letter and documents.

The vast size of Russia, which covers one sixth of the world's land surface, already makes delivery tricky. Homegrown Amazon rival Ozon.ru, which the new rules will help protect, currently operate a system where shoppers must pick up parcels from dedicated distribution centres.

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