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Import Summary Report Russia September 2016

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Page 1: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

Import Summary ReportRussiaSeptember 2016

Page 2: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

1

Contents

DisclaimerThe Import Summary Report has been prepared by Saudi Exports (Saudi Export Development Authority) as a part of its continuous publication on countries. The purpose of this study is to provide a high-level view of global imports based on available public information. Its analysis, perceptions, and anticipations are subject to personal judgment. Saudi Exports is not liable for any consequences caused by the understanding and interpretation of any part of this report. In general, the information in the report present a broad view of the imports to the country. Saudi exporters are encouraged to carry out further studies for any potential opportunities identified in this report.Please note that the data for Russia’s imports from KSA might not match the KSA exports to Russia due to logistics cost, insurance costs, classification concept and details, coverage, and valuation etc. Also, this report has been made from data available on United Nations Comtrade database till 17th May 2016.

Summary 2

1. Imports Overview 3

2. Non-oil Imports 4

3. Industry Import Profiles 5

3.1 Heavy Machinery & Electronics 5

3.2 Food Products 6

3.3 Building Materials 8

3.4 Chemicals & Polymer 9

3.5 Consumer Durables 10

4. Importers Guidelines 12

4.1 Overview of Customs Procedures 12

4.2 Resources and useful links 12

5. Appendix 1: Trade Agreements 13

6. Appendix 2: Estimated shipping cost from KSA to Russia 13

Page 3: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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For comments and queries please contact:

Telephone: +966 11 874 2000Fax: +966 11 874 2002Email: [email protected] of Saudi ArabiaP.O. Box 75169, Riyadh 11578

Saudi Export Development Authoritywww.saudiexports.sa

• Russia’s GDP has grown at a CAGR of 0.4% from 2011-2015 (in constant 2010 US$) while imports have declined at a rate of 12% during the same period (2011 – 2014). • Non-oil imports which constituted almost 99% of Russia’s overall imports in 2015, have reduced by a high CAGR of 12% from 2011 to 2015. Among the non-oil imports; Heavy Machinery & Electronics, Food Products, Building Materials, Chemicals & Polymers, and Consumer Durables are the major industries.

• The Kingdom, at present, occupies a marginal share of 0.1% of Russia’s non-oil import segment and which also have witnessed a decline by a CAGR of 3% as a result of gradual fall of Russia’s imports from 2013 to 2015 due to forced efforts for import substitution by the government. The Kingdom prominently supplies Building Materials, Textiles, Pharmaceuticals, and Heavy Machinery to Russia.

This report looks into Russia’s non-oil import market vis-à-vis the Kingdom’s share in the segment. It also outlines the import potentials in certain industries such as Heavy Machinery & Electronics, Food Products, Building Materials, Chemicals & Polymer, and Consumer Durables. Import of services by Russia is not a part of this Import Summary Report.

Summary

Page 4: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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1. Imports OverviewRussia has undergone significant changes since the collapse of the Soviet Union, moving from a centrally planned economy towards a more market-based system. It is one of the world’s leading producers of oil and natural gas, and is also a top exporter of metals such as steel and primary aluminum. Russia’s reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the volatile swings in global prices.

A combination of falling oil prices, international sanctions, and structural limitations pushed Russia into a deep recession in 2015. Most economists expect this downturn will continue through 2016. Government support for import substitution has increased recently in an effort to diversify the economy away from extractive industries.

Between 2011 and 2015, Russia’s Gross Domestic Product (GDP) grew at a compounded annual growth rate (CAGR) of mere 0.4% to 6.06 trillion SAR (in constant 2010 US$) in 2015. In world’s bank Ease of Doing Business 2016 ranking, Russia was ranked at 51 globally while Saudi Arabia stands at 82.

Figure 1 shows distribution of Russia’s imports (2011-2015). Total imports to the country during this period fell by -12% CAGR. Among the total imports, the import of oil has reduced to half of its value in 2011 whereas imports of Chemicals & Polymers decreased by a CAGR of 4% in these five years. Non-oil and non-Chemicals & Polymers imports constituted approximately 92% of the total imports in 2015 and dropped at a CAGR of -13% from 2011 to 2015 due to government efforts of import substitution.

Figure 1: Imports profile of Russia1

Figure 1 also shows country-wise breakup of Russia’s import portfolio. China and Germany are the biggest contributors of Russia’s imports, supplying 16% and 10% of the total imported goods in 2015, primarily Heavy Machinery & Electronics, Food Products, Automobiles, and Building Materials. Germany and China were followed by USA, Belarus, Italy, and Japan in the list of leading exporters to Russia. The Kingdom accounted for a marginal share of 0.1% in the total imported products. Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market.

1. UN Comtrade Database, United Nations

Oil Chemicals & Polymers

Others

in billion SAR

Expa

ndin

g 20

15 im

port

s fur

ther

-12%

200 180 170 190 160

1,148 1,186 1,1811,075

685

500 550 550 520 400

1,074 1,109 1,105 1,001

629

2011 2012 2013 2014 2015

Total Imports 685 bn SAR

19%

10%

6%

4%

4%4%0.1%

52%

China

Germany

U.S.A

Belarus

Italy

Japan

KSA

Others

19%

10%

6%

4%

4%

4%

0.1%

52%

Page 5: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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2. Non-oil ImportsRussia primarily imports Heavy Machinery & Electronics, Food Products, Automobiles, and Building Materials. Import substitution affected the demand of these products and led to a fall by CAGR of -12% for the non-oil imports contracting from 1.1 trillion SAR in 2011 to 678 billion SAR in 2015 (Figure 2).

Figure 2: Non-oil products imported by Russia1

Figure 3 shows country wise breakup of Russia’s non-oil imports for 2015. Here also, China and Germany lead the segment with 19% and 10% share of total imports respectively. They are followed by USA having 6% share while Belarus, Italy and Japan having nearly similar share of around 4% of total imports in 2015.

Figure 3: Non-oil Imports to Russia in 2015 - by country2

Non-oil imports from the Kingdom have shown a gradual drop in the last three years, rendering the CAGR to be -3% in the period 2011-2015. In non-oil imports from KSA, Building Materials import was worth 24 million SAR in 2015, followed by Textiles worth 16 million SAR. The falling exports to Russia suggest a strategy revision for recapturing the market in light of falling demand.

1. UN Comtrade Database, United Nations2. UN Comtrade Database, United Nations

Others*Building MaterialsAutomobilesFood ProductsHeavy Machinery& Electronics

-12%in billion SAR

268 309 302 283 193

11321175 1172

1064

678

136 141 151 141

91

195 229 218 180

89

114 127 124

115

69

419 369 377

346

236

2011 2012 2013 2014 2015

*include Chemicals & Polymers, Consumer Durables, Packaging, Textiles, Pharmaceutical etc.

China

Germany

U.S.A

Italy

Belarus

Japan

KSA

Others

19%

10%

6%

4%

4%

4%

0%

51%

51%

19%

10%

6%

4%

4%4%%0

Total Imports678 Bn SAR

Page 6: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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Figure 4: Non-oil Imports to Russia from KSA1

3. Industry Import Profiles3.1 Heavy Machinery & ElectronicsHeavy Machinery & Electronics contributed ~28% to Russia’s non-oil imports in 2015. During 2011-15, Russia’s import of Heavy Machinery & Electronics have decreased by a CAGR of -8% and its overall share in total non-oil imports has increased from 24% in 2011.

Figure 5 shows the distribution of Russia’s imports of Heavy Machinery & Electronics. The imports stood at 193 billion SAR in 2015 with Electronics accounting for 36% of the total Heavy Machinery & Electronics imported in 2015.

*include Electrical Batteries & Inductors, Air Pump, Water Distillation & Pumps, etc.Figure 5: Heavy Machinery & Electronics Imports to Russia2 Figure 6 shows country wise breakup of Russia’s imports of Heavy Machinery & Electronics. Supply of imported Heavy Machinery & Electronics is concentrated with the top four countries supplying more than half of the total imports in 2015. Saudi Arabia, at 0.01% holds a very tiny share in this product category with China, Germany, USA, and Italy being the major players.

1. UN Comtrade Database, United Nations2. UN Comtrade Database, United Nations

Chemicals & Petrochemicals Others

in million SAR

-3%

544 807 894 862 616

783

1,0131,082

1,002

687 239

206 188 139

71

2011 2012 2013 2014 2015

Expa

ndin

g 20

15 im

port

s fur

ther

Total Imports 71 mn SAR

33%

22%

17%

16%

4%

8%Building Material

Textiles

Pharmaceuticals

Heavy Machinery & Electronics

Consumer Durables

Others

33%

22%

17%

16%

4%

8%

in billion SAR

Expa

ndin

g 20

15 im

port

s fur

ther

90 99 91 95 69

268

309 302283

193

48 55 55 51

34

36 43 43 37

25

94

112 113 100

64

2011 2012 2013 2014 2015

-8%

Electronics Tools

Others*Mechanical Engines & Parts

Total Imports 193 bn SAR

36%

18%

13%

7%

5%

21%

Electronics

Tools

Mechanical Engines& Parts

Electrical Batteries& Inductors

Air Pump

Others

36%

18%

13%

7%

5%

21%

Page 7: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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Figure 6: Heavy Machinery & Electronics imports to Russia in 2015- by country1

Russia’s Heavy Machinery & Electronics imports from KSA have increased at an impressive CAGR of 18% for the period 2011-15. This along with the Kingdom’s current share in total imports suggests an untapped potential in this product category for KSA exporters.

*include Electrical Batteries & Inductors, Water Distillation & Pumps, etc.Figure 7: Heavy Machinery & Electronics Imported by Russia from KSA2

3.2 Food ProductsRussia imported Food Products goods worth 91 billion SAR in 2014 which accounted for 13% of the total non-oil imports. The imports have contracted at a CAGR of -10% from (2011-2015) as shown in figure 8.In 2015, Fruits & Vegetables accounted for around 27% of the total imports in Food Products followed by Meat Products and Juice & Beverages.

1. UN Comtrade Database, United Nations2. UN Comtrade Database, United Nations

China

Germany

U.S.A

Italy

Japan

South Korea

KSA

Others

30%

12%

7%

6%

3%

3%

0.01%

40%

40%

30%

12%

7%6%

3%3%

0.01%

Total Imports193 bn SAR

in million SAREx

pand

ing

2015

impo

rts f

urth

er

10 30 40 160 4020

10

6010

0

10-

-20

21

10

30

15

101033

10-

6

12

2011 2012 2013 2014 2015

18%

Tools Mechanical Engines & parts

Others*Air Pump

Total Imports 12 mn SAR

78%

16%

4% 2% 0.03%Tools

Mechanical Engines& Parts

Air Pump

Electrical Batteries& Inductors

Others

78%

16%

4%

2%

0.03%

Page 8: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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*include Electrical Bakery & Confectionary, Dairy Products, etc.Figure 8: Food Products Imports to Russia1

Figure 9 shows country wise breakdown of Russia’s imports of Food Products. Belarus is the largest supplier accounting for 12% of the total imports in 2015. It is followed by Brazil, China and Turkey with a share of 9%, 6%, and 6% respectively. KSA holds a very small share of 0.001% of the total with drastic fall in share from 0.1% in 2011.

Figure 9: Food Products Imports to Russia in 2015- by country2

In 2015, KSA exported Food Products worth 1 million SAR to Russia owing to a very drastic fall in exports from 67 million in 2012 to 2 million in 2013 leading to an overall decline by a CAGR of -65%. This along with the fall in overall industry demand calls for reforms to gain the lost market share.

*include seasonings, flavorings, and sweeteners etc.Figure 10: Food Products Imported by Russia from KSA3

1. UN Comtrade Database, United Nations2. UN Comtrade Database, United Nations3. UN Comtrade Database, United Nations

in billion SAR

Expa

ndin

g 20

15 im

port

s fur

ther

38 36 38 35 25

34 39 39 33

18

21 22 24 22

16

43 43 50

50

33

136 141

151

141

91

2011 2012 2013 2014 2015

-10%

Fruits & Vegetable Meat Products

Others*Fruit Juice & Beverages

Total Imports 91 bn SAR

27%

20%17%

8%

8%

20%

Fruits & Vegetable

Meat Products

Fruit Juice & Beverages

Bakery & Confectionary

Dairy Products

Others

27%

20%

17%

8%

8%

20%

Belarus

Brazil

China

Turkey

Ecuador

Germany

KSA

Others

12%

9%

6%

6%

4%

4%

0.001%

60%

60%

12%

9%

6%

6%

4%

4%

0.001%

Total Imports91 bn SAR

in million SAR

Expa

ndin

g 20

15 im

port

s fur

ther

89

0-

10

99

64

-0

10

74

5 10 5.05 25

95

5.05.05 25

10

5.05.00

20

2011 2012 2013 2014 2015

-65%

Fruits & Vegetable Fruit Juices & Beverages

Others*Bakery & Confectionary

Total Imports 1 mn SAR

0%

60%

34%

7%Fruits & Vegetable

Fruit Juice & Beverages

Bakery & Confectionary

Seasonings, Flavorings & Sweeteners

60%

34%

7%

0%

Page 9: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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3.3 Building MaterialsRussia’s imports of building materials went on decline after the announcement of budget cut on spending of FIFA World Cup 2018 budget and switching to local sourcing of building materials for the involved projects1. Total imports went down by a CAGR of -12% from 114 billion to 69 billion, with Electric wires & fittings, bars & rods being the product in most demand in the Russian market.

*include Glass & Ceramics, Pipes & Tubes and Bricks etc.Figure 11: Building Material Imports to Russia1

Figure 12 shows country wise breakdown of Russia’s import of Building Materials. China is the major supplier accounting for 18% of the total imports in this segment. The top 5 players accounts for almost 50% of the total imports, indicating Russia’s high dependence on its suppliers. Germany is the second largest supplier contributing 12% of the total imports in Building Materials.

Figure 12: Building Material imports to Russia in 2015- by country2

In 2015, KSA exported Building Materials worth 24 million SAR to Russia which is about only 0.04% of the total imports within this category. As evident from Figure 13, value of total imported products form KSA have declined sharply resulting into CAGR of -14% for the period 2011-15.

1. UN Comtrade Database, United Nations2. UN Comtrade Database, United Nations

in billion SAR

Expa

ndin

g 20

15 im

port

s fur

ther

21 28 25 24 15

27 28

27 23

14

12 15 15 16

9

54

114

56

127

57

124

51

115

31

69

2011 2012 2013 2014 2015

-12%

Electric Wires & Fittings Bars & Rods

Others*Metal Sheets

Total Imports 69 bn SAR

21%

19%10%

8%

14%

28%

Electric Wires & Fittings

Bars & Rods

Metal Sheets

Pipes & Tubes

Paper Board

Others

21%

19%

14%

10%

8%

28%

China

Germany

Ukraine

Belarus

Italy

Finland

KSA

Others

18%

12%

9%

5%

5%

4%

0.04%

47%

47%

18%

12%

9%

5%4% 5%0.04%

Total Imports69 bn SAR

Page 10: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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*include Bars & rods, metal sheets, Glass & Ceramics, etc.Figure 13: Russia’s imports of Building Material from KSA1

3.4 Chemicals & PolymerAlthough the focus of the nation is on import substitution in the polymer industry, the demand has been rising up sharply leading to a lower decline in imports as compared to other industries. The imports of Chemicals & Polymer into Russia have witnessed a decline with a CAGR of -4% from 58 billion SAR in 2011 to 49 billion SAR in 2015. Polymers and Basic chemicals have been the most imported products in this category in 2015.

*include fertilizers, etc.Figure 14: Russia’s Imports of Food Materials2

Figure 15 shows country wise breakdown of Russia’s imports of Chemicals & Polymer. At present, China is the largest supplier contributing 15% of the total Chemicals & Polymer imported into Russia. It is followed by Germany, Kazakhstan, and Ukraine with a share of 14%, 7% and 6% in the total imports by Russia in 2015. KSA holds a share of 1% of the total, better than its share in other industries.

1. UN Comtrade Database, United Nations2. UN Comtrade Database, United Nations

in million SAR

Expa

ndin

g 20

15 im

port

s fur

ther

33 29 31 24 16

-- 0.0

5.0

10

-1 0.0

0.10.0

1215

8

10.0

44 45

39

3127

2011 2012 2013 2014 2015

-14%

Paints & Dyes Paper Board

Others*Pipes & Tubes

Total Imports 24 mn SAR

0.13%

68%

32%

Paints & Dyes

Paper Board

Others

68%

32%

0.13%

in billion SAR

Expa

ndin

g 20

15 im

port

s fur

ther

20 22 22 21 15

15 16 16 15

12

11 13 12 12

11

13

16 1715

11

58

67 6763

49

2011 2012 2013 2014 2015

-4%

Polymer Basic Chemical

Others*Inorganic Chemicals

Total Imports 49 bn SAR

30%

24%

22%

1%

23%

Polymer

Basic Chemical

Inorganic Chemicals

Fertilizer

Others

30%

24%

22%

1%

23%

Page 11: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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Figure 15: Russia’s Import of Chemicals & Polymer in 2015- by Country1

As shown in figure 16, the Kingdom exported Chemicals & Polymer worth 616 million SAR in 2015 which have witnessed a slight increase with a CAGR of 3% from 2011 to 2015. The major product exported under this category was Polymers accounting for 92% of the total. The steady demand and incapability of domestic production to meet demand brings an opportunity to the KSA exporters.

*include fertilizers, inorganic chemicals, etc.Figure 16: Russia’s Import of Chemicals & Polymer from KSA2

3.5 Consumer DurablesThe imports of Consumer Durables to Russia have decreased at a CAGR of -9% from 2011 to 2015 and stood at 46 billion SAR in 2015. Consumer Goods accounted for only 7% of the total non-oil imports to Russia. Within the industries, the shares of individual products are divided fairly with Toiletries, Consumer Electronics, and Sports Equipment accounting for more than half of the total imports.

1. UN Comtrade Database, United Nations2. UN Comtrade Database, United Nations

China

Germany

Kazakhstan

Ukraine

France

U.S.A

KSA

Others

15%

14%

7%

6%

5%

5%

1%

47%

47%

15%

14%

7%

6%

5%5%

1%

Total Imports49 bn SAR

in million SAREx

pand

ing

2015

impo

rts f

urth

er

366 652 707 777 569

178

155 187 86

48 -

0.1- -

-544

807

894 862

616

2011 2012 2013 2014 2015

3%

Polymers Basic Chemicals

Others*

Total Imports 616 mn SAR

92%

8%Polymer

Basic Chemical

92%

8%

Page 12: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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*includes furniture, kitchen goods, soaps & washing agents, etc.Figure 17: Russia’s Import of Consumer Durables1

Figure 18 shows country wise breakdown of Russia’s imports of Consumer Durables. China was the largest contributor of the imports commanding a share of 27%, followed by Germany which has a share of 9% of total imports.

Figure 18: Russia’s Imports of Consumer Durables in 2015- by Country2

As shown in figure 19, Saudi Arabia exported Consumer Durables worth 2.8 million SAR in 2015. The exports of consumer durables from KSA to Russia has witnessed a sharp growth with a CAGR of 69% for the period 2011-15. KSA is now tapping into the long untapped potential and is benefiting from it in time of low demand in other industries.

*include Consumer electronics, furniture, sports equipment and toys, etc.Figure 19: Consumer Durables Imports to Russia from KSA3

1. UN Comtrade Database, United Nations2. UN Comtrade Database, United Nations3. UN Comtrade Database, United Nations

in billion SAR

Expa

ndin

g 20

15 im

port

s fur

ther

16 17 18 17 12

18 19 19 15

9

7 9 9

9

5

27 30 31

29

20

67 74 76

70

46

2011 2012 2013 2014 2015

-9%

Toiletries Consumer Electronics

Others*Sports Equipments & Toys

Total Imports 46 bn SAR

21%

20%

10%

8%

14%

27%

Toiletries

Consumer Electronics

Sports equipment & Toys

Furniture

Soap & Washing Agents

Others

21%

20%

14%

10%

8%

27%

in thousands SAR

Expa

ndin

g 20

15 im

port

s fur

ther

600 2,895 5,250 4,328 2,711500

-

-

-

0

700

1,400

1,700

700

400

1,800

4,295

6,950

5,028

3,111

2011 2012 2013 2014 2015

69%

Toiletries Kitchen Goods

Others*

Total Imports 2.8 mn SAR

97%

3%Consumer Goods

Others

3%

97%

China

Germany

France

Italy

Poland

U.S.A

KSA

Others

27%

9%

7%

6%

6%

4%

0.01%

41%

41%

27%

9%

7%

6%4%

6%

0.01%

Total Imports46 bn SAR

Page 13: Import Summary Report Russia · Russia currently is not a part of any trade agreement with any of the GCC nations giving KSA a competitive disadvantage in the Russian market. 1. UN

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4. Importers Guidelines4.1 Overview of Customs ProceduresIntroduction: All the goods imported into Russia needs to be cleared through Eurasian Economic Union Commission, the common custom union of Eurasian Economic Union (EEU comprises of Belarus, Kazakhstan and Russia). The fundamental requirement for importing goods into EEU is that the buyer of the goods should be a local entity i.e. (only a Russian firm is legally allowed to import gods into Russia) and the buyer is also responsible for customs clearance, Payment of customs duties and import VAT. The legal entity in whose name the customs formalities are carried out is called a “Declarant” and even when a customs broker takes over the customs formalities, the customs clearance is still carried in the name of the Declarant.

Customs Procedures: If all the documents are in place and the imports goods volume are in compliance with current limitations and restrictions of the country then custom duty, VAT and other taxes (if required) are levied and the goods acquire status of being free for circulation within the country. All the importation must be accompanied by freight declaration, which is accompanied by the related documents. Import of certain goods such as Jewelry, precious metals etc. which represents about 3% of all the goods imported needs license form Ministry of Foreign Economic Relations and controlled by state customs committee. Customs Tariff: Customs Tariff of the Customs Union is a standardized system of classifying traded products and is essentially a broader and more specific version of HS Codes. Each goods has a unique HS code and a defined percentage of duty to be levied on the value of the goods.

Customs Payments: Custom duties are normally expressed as percentage of the customs value of the imported goods, known as “Ad valorem” duties or expressed as a set amount per unit or measurement known as “specific duties”. Russia customs regime has different custom duties based on the country of origin of goods. CIS countries and less developed countries are usually exempted form customs import duties. Imports from developing countries (including KSA) are subjected to normal customs duties while imports from non-preferred nations could levy custom duty as high as 200%. Excise duty are also levied on many goods at the moment they are imported are as expressed in the national currency. Finally prior to entry of goods into the Market, VAT is levied at a standard rate of 18% for Russia (20% for Belarus and 12% for Kazakhstan). All the payments are made in cash in local currency to the state customs committee while making customs declaration. Upon receiving the payment, Customs gives a certificate of payment certifying the same and the goods are released thereby completing the whole custom procedure.

4.2 Resources and useful links• Eurasian Commission customs regulations and port law:

http://www.eurasiancommission.org/en/Pages/default.aspx

• Details of Russia’s Customs procedures:a)https://en.portal.santandertrade.com/international-shipments/russia/customs-procedures?&actualiser_id_

banque=oui&id_banque=0&memoriser_choix=memoriserb) http://schneider-group.com/sites/default/files/brochures/SCHNEIDER_GROUP_Import_web.pdf

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5. Appendix 1: Trade AgreementsRussia has been a part of its regional trade agreements with its neighboring countries and has had preferential trade agreements with some countries in Eastern Europe and Central Asia. By far, Russia does not have any trade agreement with GCC countries.

Table 1: Trade agreements

Tariff Preferential Agreements Countries

Generalized System of Preferences Russian Federation, Belarus, Kazakhstan

Generalized System of Preferences LDCs, Special Incentive Arrangement (including Russian Federation)

Common Economic Zone (CEZ) Russian Federation, Belarus, Kazakhstan, Ukraine

Eurasian Economic Community (EAEC) Russian Federation, Belarus, Kazakhstan, Kyrgyz Republic, Tajikistan

Eurasian Economic Union (EAEU) Russian Federation , Armenia, Belarus, Kazakhstan, Kyrgyz Republic

Georgia – Russian Federation Russian Federation, Georgia

Russian Federation – Azerbaijan Russian Federation, Azerbaijan

Georgia – Russian Federation Russian Federation, Georgia

Russian Federation – Serbia Russian Federation, Serbia

Russian Federation – Tajikistan Russian Federation, Tajikistan

Russian Federation – Turkmenistan Russian Federation, Turkmenistan

Russian Federation – Uzbekistan Russian Federation, Uzbekistan

Treaty on a Free Trade Area between members of the Commonwealth of Independent States (CIS) Russian Federation, Armenia, Belarus, Kazakhstan, Kyrgyz Republic, Moldova, Tajikistan, Ukraine

6. Appendix 2:Estimated shipping cost from KSA to RussiaMarket rate estimate for FCL (Full Container Load), 40 FT from major seaports in KSA to seaports in Russia

A full container load (FCL) is an ISO standard container that is loaded and unloaded under the risk and account of one shipper and only one consignee. In practice, it means that the whole container is intended for one consignee. FCL container shipment tends to have lower freight rates than an equivalent weight of cargo in bulk.

The FCL market rate estimates (40 FT) for exporting products through ocean from KSA to Russia is listed as below:

Origin Port Destination Port Product Category Market Rate (Estimate in SAR)

King Abdul Aziz Port, Dammam Vladivostok Consumer Electronics 8,688 - 9,602

King Abdul Aziz Port, Dammam Vladivostok Bottled Beverages 8,765 - 9,688

King Abdul Aziz Port, Dammam Vladivostok Construction Materials 9,541 - 1,054

King Abdul Aziz Port, Dammam Vladivostok Chemicals 7,912 - 8,745

King Abdul Aziz Port, Dammam Vladivostok Household Goods 9,308 - 10,288

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Origin Port Destination Port Product Category Market Rate (Estimate in SAR)

Jeddah Islamic Port Novorossiysk Consumer Electronics 5,384 - 5,951

Jeddah Islamic Port Novorossiysk Agriculture (Fruits & Vegetables) 5,432 - 6,004

Jeddah Islamic Port Novorossiysk Construction Materials 5,913 - 6,535

Jeddah Islamic Port Novorossiysk Chemicals 4,903 - 5,419

Jeddah Islamic Port Novorossiysk Household Goods 5,769 - 6,376

Origin Port Destination Port Product Category Market Rate (Estimate in SAR)

Jeddah Islamic Port St. Petersburg Consumer Electronics 9,182 - 10,148

Jeddah Islamic Port St. Petersburg Agriculture (Fruits & Vegetables) 9,264 - 10,239

Jeddah Islamic Port St. Petersburg Construction Materials 10,083 - 11,145

Jeddah Islamic Port St. Petersburg Chemicals 8,362 - 9,242

Jeddah Islamic Port St. Petersburg Household Goods 9,838 - 10,873

Origin Port Destination Port Product Category Market Rate (Estimate in SAR)

King Abdul Aziz Port, Dammam St. Petersburg Consumer Electronics 11,728 - 12,962

King Abdul Aziz Port, Dammam St. Petersburg Agriculture (Fruits & Vegetables) 11,832 - 13,078

King Abdul Aziz Port, Dammam St. Petersburg Construction Materials 12,880 - 14,235

King Abdul Aziz Port, Dammam St. Petersburg Chemicals 10,681 - 11,805

King Abdul Aziz Port, Dammam St. Petersburg Household Goods 12,565 - 13,888