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In Russia, Couriers Halt Parcel Delivery In Russia, Couriers Halt Parcel Delivery
(7 months later)
MOSCOW — Russia has never been an easy country in which to deliver packages because of its vast size. The government just made it a lot harder for anyone buying things online. MOSCOW — Russia has never been an easy country in which to deliver packages because of its vast size. The government just made it a lot harder for anyone buying things online.
Russian customs officials cracked down on online shopping that gets around paying duties on items such as boots or electronics, all in demand here.Russian customs officials cracked down on online shopping that gets around paying duties on items such as boots or electronics, all in demand here.
Under the new customs rules, couriers must prove a package contains nothing more valuable than the duty-free limit — 150 euros, or about $200. The result has been couriers refusing to deliver most packages.Under the new customs rules, couriers must prove a package contains nothing more valuable than the duty-free limit — 150 euros, or about $200. The result has been couriers refusing to deliver most packages.
The custom rules are elaborate, according to the Russian newspaper Vedomosti. The companies must provide authorities the receipt for the purchase and a passport number of the buyer, among other documentsThe custom rules are elaborate, according to the Russian newspaper Vedomosti. The companies must provide authorities the receipt for the purchase and a passport number of the buyer, among other documents
The legal requirements to deliver a package in Russia have become so onerous that several express delivery services, including FedEx, United Parcel Service and DHL, announced this week that they have halted all shipments of goods to individuals.The legal requirements to deliver a package in Russia have become so onerous that several express delivery services, including FedEx, United Parcel Service and DHL, announced this week that they have halted all shipments of goods to individuals.
International courier services have struggled elsewhere with similar restrictions limiting cross-border online shopping. Argentina, buffeted by a host of economic woes including its plummeting currency, also has a rule in which packages are no longer delivered to a person’s home.International courier services have struggled elsewhere with similar restrictions limiting cross-border online shopping. Argentina, buffeted by a host of economic woes including its plummeting currency, also has a rule in which packages are no longer delivered to a person’s home.
On Wednesday, Argentina limited residents to two customs-free purchases a year as long as the items are worth less than $25. Anything else bought from an overseas website needs to be collected at a customs office, where the buyer has to sign a declaration and pay a 50 percent duty.On Wednesday, Argentina limited residents to two customs-free purchases a year as long as the items are worth less than $25. Anything else bought from an overseas website needs to be collected at a customs office, where the buyer has to sign a declaration and pay a 50 percent duty.
Many countries have customs rules governing overseas online packages. Australia, for example, is considering lowering the dollar limit of tax-free purchases. And in America, states have struggled over whether to assess sales taxes on online purchases. An increasing number of states, urged on by local merchants, have chosen to insist that online merchants domiciled in other states collect taxes.Many countries have customs rules governing overseas online packages. Australia, for example, is considering lowering the dollar limit of tax-free purchases. And in America, states have struggled over whether to assess sales taxes on online purchases. An increasing number of states, urged on by local merchants, have chosen to insist that online merchants domiciled in other states collect taxes.
Dominant American e-commerce companies have struggled in a number of emerging markets, unable to compete because of delivery and payment problems. Local companies, including those that are unabashed copycats of American giants like eBay or Amazon, have sprung up in the developing markets.Dominant American e-commerce companies have struggled in a number of emerging markets, unable to compete because of delivery and payment problems. Local companies, including those that are unabashed copycats of American giants like eBay or Amazon, have sprung up in the developing markets.
The customs rules in Russia have had the effect of protecting local e-commerce start-ups. Ozon, for instance, relies in part on a model of asking customers to pick up goods at distribution centers, rather than wait for a courier or the unreliable state mail system.The customs rules in Russia have had the effect of protecting local e-commerce start-ups. Ozon, for instance, relies in part on a model of asking customers to pick up goods at distribution centers, rather than wait for a courier or the unreliable state mail system.
Russia is already a difficult country for mail: it covers a sixth of the Earth’s land surface. Norilsk, a large city in Siberia, has no year-round road or railroad connections, and sometimes is reachable only by air or icebreaker.Russia is already a difficult country for mail: it covers a sixth of the Earth’s land surface. Norilsk, a large city in Siberia, has no year-round road or railroad connections, and sometimes is reachable only by air or icebreaker.
Russia, long ignored by online retailers, just recently appeared on the radar of overseas online companies because the rising wealth of consumers started to outweigh the delivery and payment woes. The new customs holdup is no small matter: With a population of 143 million, Russia has surpassed Germany as the European country with the most Internet users.Russia, long ignored by online retailers, just recently appeared on the radar of overseas online companies because the rising wealth of consumers started to outweigh the delivery and payment woes. The new customs holdup is no small matter: With a population of 143 million, Russia has surpassed Germany as the European country with the most Internet users.
The couriers, which announced the decision through a trade association, said the halt might be temporary but the bureaucratic burden for now was simply untenable.The couriers, which announced the decision through a trade association, said the halt might be temporary but the bureaucratic burden for now was simply untenable.
A letter to clients from the association said the companies would deliver to companies as it always has done. But individuals could receive no packages, only documents.A letter to clients from the association said the companies would deliver to companies as it always has done. But individuals could receive no packages, only documents.
“The service we provide to our clients is speed, quality and reliability in full compliance with local legislation,” the statement said. “The new rules make it impossible.”“The service we provide to our clients is speed, quality and reliability in full compliance with local legislation,” the statement said. “The new rules make it impossible.”