Government to accept extra import substitution measures

05/18/15 13:43

Government to accept extra import substitution measures

Domestic manufacturers will receive enhanced preferences in the public procurement system

Pridnestrovie's Ministry of Economic Development intends to establish extra tools to implement an import substitution programme. The corresponding governmental draft decree has been submitted to the ministry for consideration.

«The Ministry of Economic Development will keep the register of the business entities producing goods which are subject to import substitution. If the register includes production which is produced by domestic manufacturers, ministries and agencies will conduct public procurement from these manufacturers only," the chairman of the Price and Antimonopoly Committee, Vitaliy Uliyka, clarified the initiative.

Recommendations for the procurement of domestic goods, subject to import substitution, will be sent out to state and municipal unitary enterprises.

The Price and Antimonopoly Committee will exercise control over domestic production pricing. «When estimating a product, the foreign market will be considered in the first place. We will not pass the contracts with overpricing of domestic products against the foreign market," said Vitaliy Ulitka. According to the current law on public procurement, the cost of a domestic product shall not exceed the cost of imports by more than 10%.

According to Vitaliy Ulitka, the proposed measures will grant local manufacturers the preferences of primary conclusion of public procurement contracts. «A tender may be held among domestic manufacturers only», said Vitaliy Ulitka, adding: «The government will provide the market, taking into account the needs of public organisations and institutions.»

Another import substitution measure provides for the expansion of a production list, which is subject to centralised public procurement. Today this list includes potatoes and boiler coal, but soon it will be supplemented with fuels and lubricants, and some vegetables.

«The centralisation will bring down the cost of public procurement," concluded Vitaliy Ulitka.