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National Interests: Priorities and Security
 

Determination of the origin of high-tech products: The case study of secondary electrical equipment

Vol. 12, Iss. 12, DECEMBER 2016

PDF  Article PDF Version

Received: 21 July 2016

Received in revised form: 24 August 2016

Accepted: 14 September 2016

Available online: 23 December 2016

Subject Heading: ECONOMIC POLICY OF THE STATE

JEL Classification: D24, F52, L51, L63

Pages: 44-54

Shvets N.N. FGC UES, Moscow, Russian Federation
info@fsk-ees.ru

Lunin K.A. FGC UES, Moscow, Russian Federation
lunin-ka@fsk-ees.ru

Kolesnik G.V. FGC UES, Moscow, Russian Federation
kolesnik-gv@fsk-ees.ru

Dyad'kin I.A. FGC UES, Moscow, Russian Federation
dyadkin-ia@fsk-ees.ru

Importance Considering the State policy for import substitution and support to domestic manufacturers, it is very reasonable to determine criteria to qualify industrial products as domestic ones.
Objectives The research articulates criteria to label industrial products as ‘domestic’.
Methods The criteria of sufficient processing represents a conventional approach to determining the origin as set forth in international treaties on the origin determination rules. There are some industry-specific methods to determine the origin of products through the level of its manufacturing localization.
Results As we describe them, the technique for determining the origin of secondary electrical products allows to consider specifics of its manufacturing and life cycle, since intangible assets are used in the production process, and considerable software is ingrained into the value of the ultimate product.
Conclusions and Relevance As the analysis shows, the production of secondary electrical equipment depends on imported electronic goods. In this respect, it is practicable to implement the strategy for domestic manufacturers to master the production of electronic components, and diversify their import supplies so to reduce the dependence on import substitution in the field.

Keywords: import substitution, localization, country of origin, Russian products, industrial policy

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