The Council of Federation proposed to strengthen control over import substitution in industry
By ForGeeks The Federation Council has come up with an initiative to strengthen control over the use of Russian components in industrial products. Companies may be obliged to submit annual reports, and specialized authorities may be authorized to conduct on-site inspections.
Senator of the Federation Council Artyom Sheikin proposed changes to the rules of keeping the register of Russian industrial products, RIA Novosti reports. According to his proposal, the register should be supplemented with norms on mandatory annual reporting on the use of Russian components. In addition, the executive authorities will be able to conduct on-site inspections and exclude companies from the register if discrepancies are identified.
Sheikin noted that the absence of such norms creates a risk of abuse by unscrupulous applicants who “substitute” foreign components into products with Russian status. He stressed the importance of introducing the legal practice of on-site inspections to control the compliance of products with the established requirements, which is necessary to determine the real participants of state support programs.
Inclusion in the register of industrial products: Benefits for domestic companies
Anton Nemkin, a member of the State Duma Committee on Information Policy, Information Technologies and Communications, explained that inclusion in the register of industrial products gives domestic companies access to a number of advantages. First, it is access to government procurement, which is showing steady growth. In the first quarter of this year alone, the government procurement market grew by 7%, and this dynamics, according to the deputy, will continue against the backdrop of large-scale import substitution.
In addition, companies from the register can qualify for government support, including reduced credit rates depending on the industry segment. It is also easier for register members to participate in tenders organized by large corporations.
Flexibility in the approach to import substitution
Anton Nemkin also emphasized that strengthening control will allow for a more efficient distribution of state support. In his opinion, state support should be given only to companies that are engaged in the real production of domestic products, and not just assembling solutions from foreign components. At the same time, he noted that the approach to import substitution should be flexible.
Russia does not yet produce all the components the market needs, such as microchips, which forces companies to use foreign elements. In such cases, excessive regulatory burden may be inappropriate, as companies will simply not be able to meet the strict requirements. Nemkin expressed confidence that the proposed mechanism for strengthening control will be an effective tool in the fight against so-called “screwdriver assembly” and will help support only truly domestic manufacturers.
