Laleli shuttle tradesmen hit by change in Russian Customs policy

03 May '06

3 min read

Shuttle trade has become a thorn in trade relations between Russia and Turkey, and has once again been brought to the agenda following a recent decision taken by Moscow.

Shuttle trade refers to the activity in which individual entrepreneurs buy goods abroad and import them for resale in street markets or small shops.

Reason given by Russian authorities even as goods are being returned to Istanbul's Laleli tradesmen via cargo is that specified trade limit has exceeded.

On the other hand, Turkey stresses that its tradesmen prefer to employ shuttle trade method versus cargo that gets inordinately delayed at Russian Customs.

“We were informed two months ago that goods weighing over-35-kg would be subject to tax. However, personal items weighing 5-10-kg require wait for processing at customs. We have suffered huge losses with this uninformed change,” said some of the 7,000 aggrieved Laleli tradesmen.

About $2.5 billion of the $3.5 billion yearly exports from Laleli is realized through shuttle trade.

Tradesmen, preparing for registered trade with Russia, are concerned about Chinese companies seizing control over the lucrative Russian market.

Laleli Industrialists and Businessmen Association Chairperson Ayhan Karahan summarized the present situation saying, “We do not have the key to open the suitcase.”

Travelers entering the country will be able to carry 15 kgs of personal baggage as from January 1, 2007, Karahan says, noting that companies should adapt to the new conditions.

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