Russian government heeds calls to stop exports
Appeals from leather footwear producers in Russia to their government to stop the alarming increase in exports of unprocessed leather have finally been heard. From 10th August 2001 the Russian Federation Government is to increase export duty for raw hides by Eur 500 ($440), applicable to leather, pigskins, horse hides and other raw materials. The amount is fixed rather than based on a percetage of the value of the product, doubling the price of some items.
Most raw leather leaves Russia before it can be processed or made into something more valuable for export. The majority goes to the EU, despite a 20% customs duty, because of the high prices the material can fetch following the recent outbreaks of foot and mouth.
The Russian footwear industry has been suffering from a lack of raw materials, and exports of leather footwear declined by 30% in 2000 compared with 1999. Initial results for this year show a similar trend while imports of leather footwear are on the increase. For the period January-May this year 4.2 million pairs of leather shoes were imported with a value of $52.5 million, roughly double the figure for the previous year.
A move was expected by the government following complaints from producers but the duty was much higher than expected.
Wet blue and crust are not to be affected by the increased duty.
