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In March 2026, moratorium for customs duties for electronic transfers has expired.

As a reminder, the moratorium was introduced by the WTO already in 1998, because countries had not agreed on how to classify electronic transmissions: as goods¹ covered by the GATT (customs duties ap-² ply) or as services covered by the GATS (duties do not apply). Time was needed for study.

Three types of transactions were assessed:

• transactions conducted entirely online, from selection and purchase to delivery;

• transactions where a product or service is ordered online but delivered offline;

• telecommunications services, including internet access.

The WTO countries assumed that most internet transactions represent services covered by GATS, which does not distinguish between the mode of delivery, online or offline.

There were disagreements arising over specific digital products, such as books and software. The US proposed exempting digital downloads from customs duties, but if a book or software is supplied on a physical medium, then the GATT applies.

The EU proposed creating a third category (digital products) requiring special regulation.

Russia did not express any position.

Россия не имела позиции.

Since 2017, the development of the WTO Agreement on Electronic Commerce

³ General Agreement on Tariffs and Trade has been initiated. It proposes a permanent moratorium on duties on electronic transmissions.

However, a number of countries (India, Brazil, South Africa, Indonesia) delayed the adoption of the Agreement, arguing that the moratorium limits the fiscal sovereignty of developing countries, who could receive higher tariff revenues: up to 40 times more compared to developed countries. Meanwhile, India proposed charging fees for data transfer, essentially bytes, but not necessarily for the content being transferred (such as software, e-books).

After the moratorium has expired in March 2026 г. 66 countries (70% of the world trade) chaired by Australia, Japan and Singapore, approved a plan of actions involving temporary measures on the enforcement of the Agreement on electronic commerce (Russia did not take part).

Will introduction of tariffs have any effect? Probably not.

According to OECD, in 2023, almost 95% of valid regional trade agreements (RTA) already contain provisions not to impose customs duties on electronic transmissions. Such commitments were undertaken by 102 countries.

And even if the moratorium ceases to be in effect, commitments will remain in 85% of cases due to RTAs.

As the OECD analysis shows, the fiscal benefit from introducing duties is minimal: potential lost customs revenues are estimated at $1,3 bn – 0,68% of potential customs revenues or about 0,1% of consolidated budgetary incomes. However, the loss of income from customs duties is offset by digital taxes, including VAT.

However, risks are more tangible: increased trade costs, reduced competitiveness and loss of opportunities for SMEs.

⁴ General Agreement on Trade in Services Lifting the moratorium will impact developing countries: if current tariffs for digitized goods can be extended to digital services, imports from low-income countries could decline by 32%, and exports by 2,5%; for middle-income countries by 6 and 0,4% respectively. For high-income countries, the effect will be weaker: by 0,04 and 0,5%.

In 2024, Russia was also promoting introduction of a permanent moratorium . Moreover, Russia already possesses tax revenue from transborder digital services, as it is required to pay the VAT. Therefore, for Russia, the practical effect of the possible lifting of the moratorium is associated not so much with the prospect of new customs revenues, but with the risks of increased costs of digital supplies and a curb on trade in services, including ICT services.

⁵ Estimates were made by adding together the volumes of ICT and telecommunications services exports (WTO data):

From the monitoring issue No. 3 (27), March 2026. Download the full issue (PDF) · issue page at the Gaidar Institute