RUSSIA. The first arrivals duty free shops in Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan could be open by late 2017 or early 2018, after the Eurasian Economic Union (EEU) signed a new Customs Code into force.
This vital piece of legislation, which paves the way for arrivals duty free shopping at airports and seaport in the five states, was signed in St. Petersburg on 26 December.
Eurasian Duty Free Association (EADF) Executive Director Fatima Dzoblaeva said: “The optimistic scenario is that the document will come into force in mid-2017. Parallel to this national legislation should be amended in accordance with the new Code norms.
“The new Code allows arrivals duty free at airports and sea ports and the industry anticipates to have the first arrivals duty free shops by the end of 2017 [or] beginning of 2018.
“Besides arrivals duty free, the new Code allows sales at duty free stores to intra-EEU passengers, but on a duty paid basis.”
Speaking at a workshop in Cannes about the issue, Dzoblaeva said: “We have had two years of negotiation and we are already talking to airports and retailers about reconfiguring arrivals areas at airports. Duty paid stores will become duty free and new stores will be built. Also part of the Customs Code legislation is the chance to sell duty free to the diplomatic community, so this is a new sales channel.”
She added: “There will be many benefits. It will bring new jobs, repatriate duty free sales from overseas and help the financing of airports.”
The EADF has 15 members that account for around 75% of sales in the Eurasian region. The association estimates that duty free sales are around €700 million a year from more than 200 stores.
