Importers to Russia saved 2.66 billion rubles on customs duties and VAT

| By | Drug Import, VED Drugs

In January – November 2017, 86.3% of all supplies of finished dosage forms included in the list of vital and essential drugs (in monetary terms) were imported to Russia at the prices below those established in the State Register.

In most cases (60.5% of supplies in monetary terms), the difference from the relevant register price did not exceed 10 rubles. This discrepancy was most likely caused by the peculiarities of calculating the actual manufacturer prices, as well as by the desire of companies to protect themselves against the supplies at the prices above those established in the State Register.

However, for 24.7% of all supplies, the difference from the State Register prices was more than 100 rubles. The maximum difference for the period was reported for the supplies of such drugs, as Temomid of JodasExpoim (76.8 thousand rubles), and Genfatinib of Tutor Laboratories (74.9 thousand rubles). This discrepancy can be attributed either to the errors in declaring the goods, or deliberate strategy of the companies. The errors certainly do happen, but they are generally rare. In most situations, a significant understatement of actual manufacturer prices during the imports of finished dosage forms is systemic. Therefore, it is the result of well-defined strategies of the companies involved in foreign trade.

Such behavior may indicate either the “price war” for a particular INN, or the optimization of customs duties and VAT paid by specific importers. The amount of these savings is quite impressive. For the first 11 months of 2017 alone, the supplies of vital and essential drugs at the prices below those established in the State Register allowed the importers to save about of 2.66 billion rubles, including 2.02 billion rubles on VAT and around 0.64 billion rubles on customs duties.

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