According to an AFP report in June 30, Russian government announced its decision on June 18 to destroy the merchandise, worth two billion dollars, confiscated last September during its crackdown on smuggling, and to shutdown Moscow’s Cherkizovsky Market.
The report said, about 30,000 Chinese businessmen, out of nearly 80,000 doing business in the market, have been affected by the crackdown.
According to Global Times, the sudden closure of the market left tens of thousands of Chinese businesspeople jobless and even homeless, with their money and goods sealed in the market.
The crackdown has inflicted massive losses on local Chinese merchants.
Ni Jixiang, president of the China-Russia Zhejiang Fellowship Association said, “The de facto loss will surpass $2 billion—there are more than 6,000 containers in the market, each with goods worth between $500,000 and $1 million.”
Russia claimed that the Chinese goods, which entered Russia through the practice known as “gray customs clearance,” were smuggling and illegal.
“Gray customs clearance” refers to the trade policy by some Russian clearance companies of taking imported goods into the Russian market at a tax rate far lower than the official level. However, the practice provides the merchants no legal proof of duties paid.
The “grey customs clearance” trade activities make Chinese merchants liable to huge losses upon inspection and control by the Russia authorities, despite of a big save on custom clearance fees.
According to Chinese merchants, only a small part of the seized Chinese goods would be destroyed mainly as a token gesture. The rest could be sold in Russian markets in lower price.
Many Chinese traders operating in Russia hope the Chinese authorities help resolve the trading issue with the Russia government considering the legitimate rights of Chinese businessmen.
Read the original Chinese article.
Friends Read Free