Import substitution potential assessment

The basis for assessing the potential of import substitution is the analysis of imports.

To assess the potential of import substitution, the analysis of imports can be supplemented with the following aspects:

1. Exclusion of insignificant volumes of imports in relation to the scale of possible production;
2. Focus on identifying homogeneous products, including in terms of production technology;
3. Monitoring the stability of imports over several years to eliminate a single surge in demand;
4. Exclusion (or special attention) of deliveries between enterprises of one company;
5. In case of supply of equipment — checking for the presence of a disassembled import;
6. Estimation of the scale of hidden imports (as part of the products of the next processing stage);
7. Analysis of imports of close analogues.

The result of the import substitution potential assessment is:
- identifying characteristics of the most popular commodity items of foreign production;
- determination of the potential (volume) of substitution (taking into account the justified impossibility of substituting a part of imports);
- the level of prices for the most popular commodity items.

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