Experts called for Sino-Russian trade talks Thursday after Moscow unilaterally increased tariffs on imports from China.

Wang Junwen, trade counselor at the Chinese Embassy in Moscow, said Russia had increased tariffs on Chinese goods on Tuesday to US$3.5 per kilogram from the original US$0.4 to US$1.2 per kilogram.

To make matters worse, the Russian Customs Committee, which made the decision, gave China no formal notification, merely telling customs houses, Wang said.

The committee also ordered China to make fewer customs clearances for exports to Russia, Wang added.

Many Chinese goods have been delayed at customs houses, requiring the payment of hefty warehouse fees, Wang said.

The decision was due to an influx of illegal Chinese imports, claimed Russia, alleging that Chinese imports to Russia totaled US$3.4 billion last year. Chinese data indicate the figure is US$6 billion.

Russia believes the difference of US$2.6 billion entered the country without paying tax.

This irregular trading has aroused the attention of both the Chinese and Russian governments at the highest level, according to Wang. Premier Wen Jiabao discussed the issue with his Russian counterpart, Mikhail Kasyanov, in Beijing last September.

Those talks resulted in a joint communiqué noting that the two countries should cooperate in standardizing irregular trade and launch a joint working party as soon as possible in order to better regulate Sino-Russian trade.

"China has formed a panel led by the Ministry of Commerce to discuss the issue, but Russia refused to take part in the talks, saying they could not find a suitable department," Wang said.

Liu Huaqin, a senior researcher with the Chinese Academy of International Trade and Economic Cooperation, said the irregular trade actually originated from Russia's practice of "gray" customs clearance.

The Russia Customs Committee allows a customs clearance company to carry out importing transactions and provide a one-stop service combining transportation and customs clearance.

These companies, which usually have close relations with Russian Customs, offer favorable tariff policies. They do not supply customs clearance manifests.

Russian customs houses confiscated US$30 million of Chinese goods at the Emila market in Moscow this February, which mostly entered by gray clearance.

The Russian government should halt this practice as soon as possible, as it damages the interests of both sides, said Liu, adding that the prospects for Sino-Russian trade are generally promising and complementary.

China has had a trade deficit with Russia for many years, and this situation is unlikely to change despite a rapid increase in Chinese exports to Russia in recent years. The deficit comes mainly from rising imports of production materials such as steel, wood, fertilizers, aquatic products and oil, all necessary to fuel China's economic growth.

China's exports to Russia are mainly in the form of low value-added light industry goods that target low-income Russian consumers.

She denied claims that the Russian move was due to China blocking its entry to the World Trade Organization (WTO).

(China Daily April 23, 2004)