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The experience of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation

The experience of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation in establishing a Customs Union. May 4, 2011, Geneva. Belarus Kazakhstan Kyrgyzstan Russia Tajikistan. Free Trade Regime. Customs Union. Single Economic Area.

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The experience of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation

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  1. The experience of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation in establishing a Customs Union May 4, 2011, Geneva

  2. BelarusKazakhstanKyrgyzstanRussiaTajikistan Free Trade Regime Customs Union Single Economic Area Abolition ofcustoms dutiesand other restrictive measures in trade in goods originating from the territory of the member-states of the Customs Union Creation of Single CustomsTerritory, within which free movement is providedfor the goods either originating from its territory or imported from the third countries that have entered into free circulation Free movement of: • Goods • Services • Capitals • Labor Upon the completion of all the formalities Upon the completion of all the formalities

  3. Plan of Actions on Formation of the Customs Union • Formation of the legislative base of the Customs Union (2007) • Formation of the Common External Tariff (2008-2009) • Formation of the institutional structure of the Customs Union (2007-2009) • Implementation of the international agreements forming the legislative base of the Customs Union (2008-2010) • Harmonization of the Customs legislation (2008-2010) • Harmonization of trade regimes with third countries (2007- and further) • Creation of the Single Customs Territory (2007-2010)

  4. Formation of the Legislative Basis of the Customs Union 2007-2008 7 meetings at the level of Heads of State and Government 2009 6 meetings at the level of Heads of State and Government 2010 4 meetings at the level of Heads of State and Government 2011 1 meeting at the level of Heads of Government

  5. Common Customs and Tariff Regulation According to the results of the negotiations on the Common External Tariff (CET) average import customs fees of Kazakhstan and Russia have been changed as follows:

  6. Common Customs and Tariff Regulation In order to support young local manufacturers Kazakhstan has maintained transition periods (4-5 years) for applied import tariffs on those goods which are necessary as raw materials or equipment for local productions (f.e. production of pharmaceuticals and medical equipment, investment project on petrochemical plant) 6

  7. The Customs Code of the Customs Union • Current trade procedures analysisNegotiations with the third countries • Common trade procedures of the • Customs Union • Establishing of the Customs Union • Bilateral Treaties • with the third countries • Russia – 130 • Kazakhstan – 50 • Belarus – 40 • (non-market status) • It is necessary to maintain the current trade procedures of Russian Federation • with primary trade partners for the period before • conclusion of new treaties on behalf of the CU Common trade procedures of the Customs Union • Implementation of the procedure of common trade with third countries • Customs Code • mutual administrative assistance • common rules for goods declaration • common customs procedures • common methodology of customs • value definition • common rules of assessment and • collection of customs duties • common rules for customs control Group of experts from the Customs Services of Belarus, Kazakhstan and Russia International Convention on Simplification and Harmonization of Customs Procedures (Kyoto Convention) November 2009 Adoption of the Customs Code January-May 2010 Amending the Legislation of the Member States of the Customs Code 1 July 2010 Bringing the Customs Code of the Customs Union into force

  8. Common Regulating Body Customs Union Administration Interstate Council EurAsEC (Supreme Body of the Customs Union) Heads of State and Government Level EurAsEC Court Decisions on the Customs Union Development Strategy (decisions – consensus) Dispute settlement Commission of the Customs Union Deputy Heads of Government Regulating Bodyof the Customs Union (decisions – 2/3 of votes or consensus ) Votes Distribution Secretariat of the Commission of the Customs Union Russia – 57% Kazakhstan –21,5% Belarus – 21,5% Provides Support to the Commission’s Activities State Executive Authorities Execution of Decisions

  9. Single Customs Territory Development Stages • 01/01/2010 • Introduction of common customs-tariff and non-tariff treatment • 01/04/2010 • Testing the import customs duties accounting and • assessment mechanism • 06/07/2010 • Bringing the Customs Code of the Customs Union into effect • Transfer of the control to the external border of the Republic of Belarus • Introduction of import customs duties and excise accounting and • assessment mechanism • Abolition of customs clearance of goods originating from the Republic of • Belarus, the Republic of Kazakhstan, and the Russian Federation • 01/07/2011 • Transfer of Customs control to the external border of the • Republic of Kazakhstan

  10. Components of theCustoms Union Common Customs and Tariff Regulation Common Regulating Body (Commission) Common Non-Tariff Regulation towards Third Countries Dispute Settlement Body Common Trade Regime in Relations with Third Countries Harmonization of Customs Legislation Imposition of Safeguards, Antidumping and Countervailing Measures Single Customs Territory

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