FX.co ★ Customs Union brings in hi-tech chips to fight smuggling fur

The Euroasian economic commission of the Customs union proposed implanting tiny radio-frequency identification tags (RFID) to all fur coats to monitor sales turnover, production, and import sales within the common economic space of Russia, Belarus, and Kazakhstan. The resolution aims to fight illegal manufactures, RBC Daily reports. Nowadays, every fifth fur coat is imported in Russia legally. So, Andrei Slepnev, a member of the Trade Board, brought forward the idea to label some types of consumer goods including fur clothing to fight contraband. The official said that the Council assigned the Euroasian economic commission, related state agencies, and entrepreneurs to set out the labeling system. A pilot project aimed at tracking imported furs is scheduled in 2015. Indeed, this category of imported consumer goods arouses concern. According to experts’ estimates, up to 80% of Russian fur imports are smuggled or declared at a much lower value. Meanwhile, Russian consumers spend almost $100 billion on fur coats annually. However, domestic producers account for merely 5% of the fur sales market. Fur goods are mainly imported from China.
On the minus side, implementation of such sophisticated labels might increase a production cost of legal fur clothing. Currently, legally produced mink coats sell for about 100,000 rubles ($2,910) on average.