Second-Hand Clothes Might Go Up in Price
By Yevgeny Fyodorov
Chastnaya Sobstvennost
“They say second-hand clothes will go up in price. I ought to go and buy some winter things for my son. It’s so cold this year, and new children’s cloths are so expensive in shops. What’s the point of buying new things when the child grows by leaps and bounds. I think you can do alright with second-hand ones…”
This is the conversation I heard not long ago, which made me curious about what was really going on. Do these seemingly innocent clothes and fabric stand in someone’s way? Why is the sate so diligent with this apparently secondary issue?
There are some certain grounds for these talks about second-hand goods getting more expensive. The State Customs Committee Resolution No. 78 was enforced this year, which stipulates the way to determine the country of origin for imported goods. This document has a subtle detail, which might turn into considerable extra expenses for the end buyers of used articles. The matter is that before, the country of origin was the one where things were collected and packed. The customs duty for the EU countries, where most second-hand items come from, is 12 per cent, and 30 per cent for all other countries. At the same time it has been decided that the origins of goods will be determined by Belarusian customs officers not by the documents (arranged mainly within the EU), but by labels and tags on the goods. Due to the known fact that most of the European clothes are made in Asia, the customs duties at the Belarusian border will increase more than by two times – up to 30 per cent.
Now, while businesses are selling their old stock out, the prices will remain unchanged. But when it is finished, they will have to pay much more for their goods. Therefore, retail prices will go up. At the moment, second-hand clothes are being sold in shops at about 20-25 thousand roubles (7-9 US dollars) per kilo. If clothing articles are sold separately, the price is totally different. However, these goods are in demand now. Will they still be in demand once the prices have doubled?
As for now, second-hand shops are not complaining about the lack of buyers. This fact is proven not only by our own observations, but by the official statistics too. The State Customs Committee noted a considerable growth in used clothes imported to Belarus from foreign countries. There were 15 thousand tonnes of it imported within the first 10 months in 2005, which is much more than it used to be. As a result, it caused significant problems in the Belarusian clothing market, where domestic items can not compete even with used ones imported from abroad.
On one hand, second-hand clothes bought abroad for almost nothing (priced as waste) is sold in specialised big and small shops cheaper than goods manufactured in Belarus. Officials in their turn reproach businesses for selling clothing articles individually at a high price, making a lot of money on second-hand import. There are several instances, when some companies cleared their second-hand import with the customs at relatively low tariffs and managed to disguise brand-new goods in the consignment, saving considerable funds on customs duties. There is another argument against second-hand clothes though. Some experts say that second-hand clothes might bring various viruses and illnesses into the country. This problem has become very acute due to the atypical pneumonia outbreaks in South East Asia. After the mysterious illness went away (at least in the Press and television) and importers toughened up the sanitisation of second-hand clothes to obtain a European standard certificate, these sort of health concerns eased off but still left a bad aftertaste.
Apparently, the roots of the problem are hidden within the economic area anyway. Used goods, including clothing, household electrics and appliances, are naturally threatening Belarusian manufactures that have excessive unsold stocks. So, do Belarusians need second-hand goods or not? While our officials are contemplating over this issue, many buyers vote by their money for inexpensive quality goods from abroad. Undoubtedly, higher customs duties will result in growing prices. But it will not do any harm to the rich as they would never do their shopping in second-hand shops. Unfortunately, it will be less privileged people to suffer: pensioners, families with many children, students, and others.