Russian cross-border e-commerce platform Shopfans.ru to bypass new customs rules via Kazakhstan

Earlier this week Shopfans.ru, a Russia-focused mail-forwarder and marketplace for US retailers, informed its consumers about a new delivery option to Russia through Kazakhstan, Russian newspaper RBK Daily reported.

With both countries members of a customs union, this transit service allows buyers to circumvent the 150-euro tax-free limit  on purchases from foreign retailers, which the Russian government is expected to establish soon.

Going through Kazakhstan will extend delivery times by 1-2 working days, Shopfans told its clients. In addition, this route will add a 10-15% surcharge compared to the direct-to-Russia delivery tariff.

Shopfans.ru received clearence for the new delivery route from both Russian and Kazakh customs, Business Development Manager Petr Sharapov told RBK.

The Customs Union utilizes a concept of territorial indivisibility: goods imported into the territory of Russia must pass through Russian customs, but this usually does not work for individuals, says Sharapov. Therefore, for the importation of goods through Kazakhstan Shopfans.ru has signed an agreement with a Kazakh customs broker who prepares documents at the border on behalf of the buyer.

Shopfans has already used a similar scheme in Belarus, where the duty-free import limit is 120 euros. The company imports parcels there via Russia. Sharapov adds that the new delivery route is now working on a trial basis, in order to “test-run” the scheme.

Transit through Kazakhstan does not conflict with Russian laws, Dmitry Matveev, managing partner of the law firm “Dmitry Matveev & partners,” confirmed to RBK Daily. However, he believes the authorities of Kazakhstan and Belarus could follow in Russia’s footsteps and change limits on purchases from foreign online stores.

Shopfans.ru’s business model is based on the mail forwarding of goods to Russia from popular US stores such as Amazon, eBay, Disney, Barnes & Noble, Apple and others. A Kazakh customs broker will require the passport details of the buyer and the purchase invoice to clear transported goods, writes habrahabr.ru blogger Roman Dodin.

Mail forwarder Shipito could follow Shopfans.ru’s example if service delivery through Kazakhstan works effectively, Shipoto representative Sergey Smirnov told RBK Daily. He expects all major carriers to do the same, unless Kazakhstan lowers current limits on purchases from cross-border online retailers.

Kazakhstan’s delivery service is underdeveloped and the parcels will take too long to transport, says co-owner of domestic Russian online store Wildberries Sergei Anoufriev. He added that legitimate market players do not have to come up with schemes to circumvent Russian laws. Anoufriev believes that Shopfans.ru is not a direct competitor as domestic and foreign e-commerce players have different audiences.

Cross-border e-commerce to Russia amounted to approximately $3 billion in 2013, up 75% in volume from the previous year, according to a research study by East-West Digital News.

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Topics: Cross-Border Sales, E-Commerce, International, Internet, Legal, Legislation & regulation, News, Taxes
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