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Russian customs raid on fruit puree will lead to higher prices for drinks

June 29, 2022
in Daily News
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The actions of the Russian customs regarding multi-layer packaging and fruit purees could lead to another jump in prices for food products. This conclusion follows from the appeal of the Union of Producers of Juices, Water and Drinks (Soyuznapitki) to the head of the Ministry of Economic Development Maxim Reshetnikov, Kommersant writes .

The problem is related to the actions of the North-West Electronic Customs (NWET), which suddenly decided to bring fruit pulp and puree under the Russian food embargo. If earlier these products were classified by customs under the code 2008 of the TN VED – “Fruits, nuts, cooked or canned”, then since September last year, new batches have increasingly begun to receive a “sanction code” 0811 – “Fruits and nuts, whether or not subjected to heat treatment ". The code change prevents beverage producers from importing purees to Russia under the 2014 food embargo.

Customs explains the change in the code of imported products by the lack of serious heat treatment: according to the department, fruits and vegetables do not fundamentally change their qualities. Manufacturers insist that the controversial products were subjected to "gentle pasteurization" under pressure to preserve their properties. Manufacturers asked the customs for an independent examination, but they were refused.

Due to the actions of customs, the clearance of goods worth hundreds of millions of rubles is delayed. publication sources claim. At the same time, new parties will not be saved, as they will be classified as “sanctions” again. Soyuznapitki insist that if the issue is not resolved, then manufacturers risk losing billions of rubles in revenue, consumers – assortment, and the state – taxes to the budget.

Moreover, manufacturers are already suffering from a reduction in the number of suppliers after the imposition of sanctions against Russia for invading Ukraine. Soyuznapitkov President Maxim Novikov also notes that the actions of the customs directly contradict the statements of the authorities about the reduction of administrative pressure on business. A combination of factors can lead to a shortage of drinks on the Russian market, which will inevitably affect prices, he notes.

Moreover, in addition to problems with puree codes, customs began to put pressure on manufacturers because of the packaging. The classification of multi-layer packaging made of cardboard with an inner layer of polyethylene and foil, including the Pure-Pak type, is now subject to a different code, which is subject to a higher import duty. Producers note that sanctions have already driven up packaging prices and customs actions can only increase this increase.

Despite the promises of the authorities to reduce supervision of businesses as part of tough sanctions, problems with law enforcement agencies were previously announced by representatives of retail chains. Retailers cannot account for the amount of stolen goods as official expenses due to the inaction of the police, who do not want to “spoil their statistics” with unsolved cases. The irresponsibility of the authorities increases the tax burden on retail chains.

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