Electronics

Manufacturing

Service (EMS)

Russia

24 oktober 2011

United area - the conditions unequal

Kaliningrad's customs union puts hardware engineers in an unequal position with the Belarusian electronics manufacturers that have legal, tax and geographical advantages.

After the entry into force of the Customs Union, enterprises which are engaged in contract manufacturing of electronics in Kaliningrad and Belarus are working on an unequal economic conditions. For example, a factory TV "Horizon" (Belarus) - a resident of Free Economic Zone (FEZ) in Minsk. The products of the factory “Horizon” after the entry into force of the Customs Union are shipped to the Russian Federation immediately after production, without any procedures for customs clearance.

- In distinction from "Horizon", each batch of our products (products of Kompaniya Telebalt Ltd) produced in Kaliningrad SEZ (Special Economic Zone) regime must obtain an expert opinion confirming the depth of local processing, then a certificate of origin, and only after that to make customs clearance for their transit through Lithuania - explains the General director of “Kompaniya Telebalt” Ltd Victor Borisenko .- In distinction from television sets, collected in Minsk, we have to cross two borders. This naturally leads to a significant increase in the cost and increase the time of delivery of the goods to the customer.

Besides, the Belarusian TV manufacturers are not obliged to make deep local processing in order to receive benefits to pay customs duties when importing configuration. As a result, the plant "Horizon" is largely restricted to a simple screwdriver assembly, which allows to reduce the level of production costs on average by 40%! As distinct from them the Kaliningrad electronics manufacturers for custom privileges necessary to produce more sophisticated and hi-tech operations, including the ration of functionally important elements of electronic components using surface mount technology. Not to mention the fact that in Belarus due to the current economic situation lower labor costs.

More importantly VAT rate in FEZ (Free Economic Zone) in Minsk is 10% (in Russia, including in the Kaliningrad SEZ is 18%)! The difference in price of the finished product is 8%.

- Cost of manufacturing services to an average is 5-6% of the total cost of the TV, so any method of cost optimization and cost reduction in the Kaliningrad companies do not allow to compete with the Belarusian producers - summarizes Viktor Borisenko .- logistics costs in Kaliningrad three times as tall than that of the Belarusian electronics. In this situation, we need to federal authorities, the Ministry of the Economy of the Russian Federation and the EurAsEC Interstate Council to take immediate measures to create equal conditions for producers of the common customs area. Otherwise, the existence of the electronics industry in the Kaliningrad region is again under threat.

Press Service of “Kompaniya Telebalt" Ltd