New regulations to affect margins of imported seafood in Belarus

October 2, 2008 12:07

The Russian producers, including seafood processors and suppliers, may lose the market share in Belarus in the wake of the latest regulatory developments in the country, reports with reference to RBK daily.

More specifically, according to the decision of the Republic's Ministry of Economics, as of September 2008 the maximum total markup on the goods imported to Belorussia shall not exceed 30% of the selling price. As a result, according to the Russian producers, the Belorussian wholesalers and retailers will be unable to make a profit when dealing with imports including fish products.

The concern was caused by the decision of the Republic's Ministry of Economics (Number 179 of the 27th of August 2008) which imposes restrictions on trade and wholesale markup during selling of products to retail chains and catering sector. The partners of the multiples are told to decide themselves how to share the markup between the involved parties. According to the information on the website of the Ministry of Economics of Belorussia, the purpose of the resolution is to equalize the competitive conditions when selling domestic and imported goods. The Ministry's representative confirms that the new rules will cover the goods from the Russian Federation too.

According to the representative of one Belorussian distribution company, the new import rules halve the markup on the imported goods. Now the distribution markup totals 25-30%, the same amount comes from retail sector. He also adds that the Ministry's resolution will apply to the goods which were imported before its adoption.

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