Over the last few months, however, two presidential decrees have given the first signs that the government is turning to tariffs to protect local industry and raise revenue.
The direction of tariff levels is clearly up. From July 1, Presidential Decree No. 630 introduced a range of "provisional" import tariffs with a top rate of 25 percent for vermouth, champagne and syrupy wines -- no doubt the price rise caused despair among the men who buy all the bottles on display at the kiosks-- and a basic rate of 15 percent. Small-scale traders were allowed to import goods up to a limit of $10, 000 without attracting duty.
Then a supplement to the decree in August published a list of 14 commodity items which would attract special tariffs. Spirits were bumped up to 30 to 50 percent -- more consternation at the kiosks. Televisions, video recorders, cassette players and automobiles were pushed up to 25 percent and beer went to 20 percent.
Vermouth stayed at 25. A basic rate of 15 percent remains for other imports, with 45 items, including books - and printed material, medicine, food and children's clothing, exempt from any duty.
As an indication of things to come, the head of the Gaidar government's economic planning committee, Sergei Vasileyev, told parliament recently that the government would introduce a uniform tariff to take effect for six months from Jan. 1 next year, mostly likely at a higher rate.
According to Rinat Khakimov, tax expert at Coopers & Lybrand, these tariffs are still only a blip on importer's spread sheets.
"The existing level of import tariffs", he said, "can hardly be considered a major factor in the price competitiveness of Western goods".
Khakimov said that the declining value of the ruble was a much bigger deterrent, and that local industries from food processing to radio electronics had been cutting down imports after recent falls in the ruble-dollar exchange rate.
He said the main motivation behind the recent tariff rises was to boost budget earnings from import activity.
The provisional import tariffs are charged in ECUs and paid by the importer in rubles at the exchange rate set by the Russian Central Bank at the date of customs clearance. Alternatively, the importer can choose to pay in hard currency.
Detailed information on tariffs can be obtained from Rosvneshterminal, a state organization subordinate to the Russian State Customs Committee (Tel. 230-2255).
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