Customs and Tariff Regulations

Unified customs and tariff regulation of the Customs Union of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation

From 1 January 2010 in connection with the Customs Union of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation its Member States apply unified measures of customs and tariff regulation.

According to the Decision of the Interstate Council of Eurasian Economic Community (Superior body of the Customs Union) of 27 November 2009
№ 18, “On a Unified Customs and Tariff Regulation of the Customs Union of Belarus, Kazakhstan and the Russian Federation” since 1 January 2010 the following documents entered into force:

• Treaty on Unified Customs and Tariff Regulation of January 25, 2008;
• Treaty on the Terms and Mechanisms for Applying of Tariff Rate Quotas of December 12, 2008;
•  Protocol on the Terms and Procedure for Applying Import Customs Duty Ratesdiffering from Rates prescribed by the Unified Customs Tariff in Exceptional Cases of December 12, 2008;
•  Protocol on Granting Tariff Preferences of December 12, 2008;
• Protocol on the Common System of Tariff Preferences in the Customs Union of December 12, 2008.
•  Unified Nomenclature of Foreign Economic Activities of the Customs Union and Unified Customs Tariff of the Customs Union;
•  List of Developing Countries – Users of the System of Tariff Preferences of the Customs Union;
• List of Least Developed Countries – Users of the System of Tariff Preferences of the Customs Union;
• List of Goods Originating and Imported from Developing and Least Developed Countries granted Tariff Preferences;
•  List of Goods subject During the Transitional Period to application by one of the Member States of the Customs Union of Import Customs Duty Ratesdiffering from Rates prescribed by the Unified Customs Tariff;
•  List of Sensitive Products in relation to which Decision to change Customs Duty Rate is adopted by Commission of the Customs Union by consensus.

The Formation of the Unified Customs Tariff as a unified trade policy instrument of Belarus, Kazakhstan and Russia was carried out taking to the account the level of unification of customs tariffs of the Member States of the Customs Union, the volumes of import of goods, the sensitivity of import customs duty rates for individual industries, as well as the international obligations of the parties.

The Republic of Belarus and the Russian Federation do not enjoy any exemptions from the Unified Customs Tariff.

The Republic of Kazakhstan enjoys exemptions for 88 positions from the Unified Customs Tariff of the Customs Union during the transitional period ranging from 1,5 to 5 years and applies reduced import customs duty rates compared to the Unified Customs Tariff of the Customs Union.

According to Article 3 of the Treaty on the Eurasian Economic Commission of 18 November 2011 (hereinafter — Treaty), the Eurasian Economic Commission carries out activities in the field of customs and tariff regulation within the limits of powers granted by the Treaty and decisions of the Supreme Eurasian Economic Council the international treaties that forming the legal framework of the Customs Union and Common Economic Space.

According to Article5 of the Treatydecisions of the Eurasian Economic Commission formthe legal frameworkof the CustomsUnion andCommon Economic Space and are directly applicablein the territoriesof the Parties.

For a preliminary review of the initiatives of the Parties in the sphere of foreign trade the Committee on Regulation of Foreign Trade is created (hereinafter — the Committee).

In 2010-2012 the Committee held 21 meetings. In the field of customs and tariff regulation adopted about 100 decisions of the Customs Union bodies regarding changes to the Unified Nomenclature of Foreign Economic Activities of the Customs Union and Unified Customs Tariff of the Customs Union, import duties, tariff exemptions and tariff quotas, including over 20 decisions initiated by the Republic of Belarus.

According to Article 19 of the Treaty by the Decision of the Board of Eurasian Economic Commission of 7 March 2012 № 6 the Advisory Committee on Trade was established composed of the subcommittee on customs tariff, non-tariff regulation and trade remedies, and the subcommittee on trade policy. A. Slepnev, Minister of the Eurasian Economic Commission for Trade was appointed as a Chairman of the Committee. The Belarusian part of the Advisory Committee on Trade is headed by the Deputy Minister of Foreign Affairs of the Republic of Belarus H.E. A.Guryanov.

Tariff exemptions and tariff preferences in the Customs Union

Tariff preferences can be applied in the form of exemption from customs duties or reduced rates of import duties.

Tariff exemptions and tariff preferences in the Customs Union of Belarus, Kazakhstan and the Russian Federation are determined by the Treaty on Unified Customs and Tariff Regulation of 25January 2008 (hereinafter — the Treaty), Decision of the Customs Union Commission of 27 November 2009 № 130 “On the Unified Customs and Tariff Regulation of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation”, as well as by other decisions of the Customs Union Commission.

According to Article 5 of the Treaty provision of tariff exemptions is allowed for the following goods:

• imported under customs control within the framework of the customs regimes set by the customs legislation;
•  imported as a contribution of the foreign founder to the charter capital within the time limits set by the founding documents for the formation of capital ;
•  imported within the framework of international cooperation among State Parties in exploration and use of outer space as well as service agreements to launch the spacecraft according to the list approved by the Customs Union Commission

Article 6 of the Treaty stated that import of the following goods from third countries into the customs territory are exempted from payment of import customs duties:

• vehicles used for international transportation of cargos, luggage and passengers, as well as parts, equipment, fuel, food and other property necessary for their normal operation at the time on the way, stop points, or acquired abroad in connection with the liquidation of the accident (failure) of these vehicles;
•  products of sea fishing vessels of the Parties, as well as ships leased (chartered) by legal persons and individuals of the Parties;
• goods imported for official or personal use by representatives of third countries eligible for duty-free import of such items on the basis of international treaties of the Parties or their law;
• currency of Member States and third countries (except that used for numismatic purposes), as well as securities in accordance with the legislation of Parties;
• goods imported as humanitarian assistance and (or) in order to eliminate the consequences of accidents and catastrophes, natural disasters;
• goods, except excisable (excluding cars specially designed for medical purposes), imported as gratuitous aid (assistance), as well as for charitable purposes by third countries, international organizations, governments, including rendering technical assistance;
• goods imported under the customs regimes set by the legal acts in the sphere of customs regulation and providing the exemption from import customs duties;
•  goods imported by individuals, except prohibited for importation, not intended for production or business activities, in accordance with the legal acts in the sphere of customs regulation;
• goods subject to the ownership of the Parties, in cases provided for by their law.
• Decision of the Customs Union Commission of 27 November 2009 № 130 “On the Unified Customs and Tariff Regulation of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation” (with amendments) provides additional cases of granting exemptions from payment of customs duties (only available in Russian).

Decisions of the Customs Union Commission and the Supreme Eurasian Economic Council are published at: www.tsouz.ru.