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Khabarovsk exporters come to the TOP

What does the TORA or free port regime give to exporters?

The priority development of the regions of the Russian Far East is ensured by the creation of a number of instruments that open the way for entrepreneurs and investors. Tax incentives, simplification of customs procedures, attention from the state ... The developed regimes of the territories of advanced development (TOP) and the free port of Vladivostok (SPV), as it turned out, have become very popular among exporters.

Khabarovsk exporters come to the TOP
What does the TOP or free port regime give to exporters? In fact, these economic regimes do not provide any special measures that would exclusively and specifically address the export of manufactured products. There are a number of private measures that certainly optimize the processes of foreign economic activity. These include the possibility of creating a free customs zone (FCZ) at a resident's enterprise, which makes it possible to import equipment and goods for processing duty-free, and then export products. The norms of the free port of Vladivostok have also become significant for export-import operations, which obliged the border crossings of the Primorsky Territory to switch to round-the-clock operation. However, in general, these economic regimes are aimed at optimizing investment and doing business in the Far East, while export is rather an objective motivator for investors to come to the Far East.

According to the Minister of the Russian Federation for the Development of the Far East Alexander Galushka, the formed system of mechanisms and development institutions is aimed "at expanding the freedom of economic and entrepreneurial activity, increasing profitability and reducing the risks of investing in the macroregion."

Both TOPs and the free port of Vladivostok allow businesses to significantly optimize the economic model when working in the Far East. In addition to the widely used incentives to optimize income tax and property tax, these regimes have, for example, such an incentive as the optimization of social payments to the payroll. Residents pay insurance premiums for up to 10 years in the amount of 7,6% instead of 30%, which provides tangible savings, especially for projects that employ highly qualified and highly paid personnel.

According to the Deputy Minister of the Ministry for the Development of the Russian Far East, Alexander Krutikov, “the attractiveness of priority development areas is due to three main elements. The first is tax breaks. The second is the availability of infrastructure. The third component is a special management system for such territories. This system is based on a simple principle: the investor is always right. "

Interestingly, companies from small to large can apply for such support, having received the status of a resident of a free port or TOP. The minimum investment "threshold" is 500 thousand rubles. for TOP and 5 million rubles. for a free port. At the same time, both new companies starting a business from scratch and existing enterprises investing in technological modernization or expansion of production can apply for preferential treatment. Practice shows that small and medium-sized businesses are really starting to enjoy benefits: among the existing residents there are companies in which only 10-15 people are employed.

Khabarovsk Krai is the region with the most developed industrial production among the subjects of the Far Eastern Federal District (FEFD). It would seem that this should automatically make high-tech products the main export item. However, statistics show that the bulk of the Khabarovsk Territory's exports are still associated with its natural resources: timber and fish processing products, fuel and precious metals. Nevertheless, the quality of exports from the region is growing from year to year: if in 2013, raw materials accounted for 45%, then in 2016 - only 35%.

According to customs statistics, over the past four years, the Khabarovsk Territory has been quarterly exporting products worth $ 250-400 million. The exception was the last quarter of last year, when the volume of exports rose to a record 670 million. But this jump also did not allow the region to transfer 1% of the volumes of all-Russian exports.

At the end of 2013, the export of the Khabarovsk Territory amounted to $ 1,51 billion - 0,3% of the total volume of $ 525,98 billion for the whole of Russia. At the end of 2014 - 1,44 billion, the same 0,3% of 497,36 billion dollars. In 2015, when Russian exports expectedly “sagged”, the region was able to improve its performance to 0,33% - 1,15 billion out of 343,54 billion dollars. According to the results of last year, exports from Russia amounted to 285,49 billion dollars. The share of the Khabarovsk Territory in the total volume is 1,55 billion, or 0,54%.

Simultaneously with the growth in the value of exports, its structure improved. In 2013, 44,5% of exports from the Khabarovsk Territory accounted for raw materials, 19% - for non-resource energy exports, 36,5% - for non-resource exports not related to energy. The shares of the first and second gradually decreased. As a result, by the end of 2016, the region came with 60% of non-resource non-energy exports ($ 930 million), 5,2% of non-resource energy exports (80 million) and 34,8% of raw materials exports (540 million).

Since Soviet times, large enterprises have been operating in the Khabarovsk Territory that produce mechanical engineering products: military and civil aircraft and ships, metallurgical products, equipment, including electronic and optical. As of the end of 2016, the share of the industrial complex of the region in the total volume of shipped products is more than 29%, the largest share is occupied by machine-building and metallurgical complexes (85% and 12%, respectively).

That is why the main supplier of export industrial products - the military-industrial complex of the Khabarovsk Territory (60% of industrial products shipped by region falls on it). Export contracts are performed by the Komsomolsk-on-Amur Aviation Plant and a branch of Sukhoi Civil Aircraft (both are part of the Sukhoi Concern). Products of PJSC “Dalenergomash”, OJSC “Amurmetal” are delivered to foreign markets. The exporters are also Amur ammunition plant "Vympel", Amur and Khabarovsk shipyards.

In the field of timber processing, several enterprises export both round timber and sawn timber, veneer and pellets. Fir oil is a highly processed export product, which is considered the hallmark of the Far Eastern taiga and is highly valued in foreign markets.

The fishing industry of the Khabarovsk Territory also supplies the markets of the Asia-Pacific countries with a wide variety of products - from pollock and salmon roe and feed meal to raw fish and crab.

Dalkhimpharm Chemical-Pharmaceutical Plant is the only manufacturer of finished pharmaceutical products in the Far East, one of the largest and oldest enterprises. Dalkhimpharm produces over 200 types of pharmaceuticals and has a long-term practice of export deliveries to the CIS countries, Mongolia, Japan and the USA. In particular, the unique extract of Eleutherococcus produced by the Dalkhimpharm plant enjoys success in foreign markets.

Another exporter of medicinal products is LLC Reader. The company specializes in the production of essential oils, florentine water, is engaged in the collection and procurement of medicinal and herbal raw materials from plants growing in the Far East region.

In the construction complex of the Khabarovsk Territory, the production of non-combustible heat-insulating materials is focused on export - they are produced by several large enterprises. Also, construction piles made at the factories of the region are in demand abroad: wide-blade for thawed soils and narrow-blade for permafrost.

The light industry of the Khabarovsk Territory can also be proud of export products. Pauline is a large Russian manufacturer of wedding and evening dresses, children's clothing, founded in 2000. Pauline dresses are presented in salons of more than 50 cities in Russia, as well as in Ukraine, Belarus and Germany. 

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