Russia introduces changes to the law on customs regulation

The Department of Economic Integration of NCE RK "Atameken" expresses concern of domestic business with the law enforcement practice of the Federal Law of the Russian Federation "On Amendments to the Law on Customs Regulation", signed on 29^th of July this year.

The main changes concern the possibility of imposing bans in Russia on turnover of certain categories of goods, as well as establishing customs control for vehicles weighing 3.5 tons in established customs control zones on the territory of the Russian Federation, including in regions bordering with the EAEU member states.

"When the Union was created and customs borders were abolished, the countries were guided by the economic necessity of unimpeded and barrier-free movement of goods. In our opinion, the changes contradict the provisions of the Treaty on the Eurasian Economic Union, in which it is clearly determined that the establishment of the EAEU will ensure freedom of movement of goods, services, capital and labor", - believes Dana Zhunusova, Deputy Chairman of the Board of NCE RK" Atameken ".

At the same time, in accordance with the decision of the Federation Council Committee on the Budget and Financial Markets of the Russian Federation, the purpose of the Law of the Russian Federation is to prevent the possibility of distributing goods imported at rates other than the Common Customs Tariff of the EAEU (CCТ EAEU), with the possibility of imposing a ban on the import and turnover of such Goods on the territory of the Russian Federation.

Russia's tariff obligations in the WTO are automatically implemented within CCT of the EAEU. In turn, rates other than CCT are applied only in the Republic of Kazakhstan, and for goods imported at lower rates, there is already a ban on export to the territory of other member states of the EAEU.

Currently, the list consists of 2,146 commodity items, while Atameken is monitoring import statistics, according to which at least 70% of the goods from this list are imported by domestic entrepreneurs at the rates of the Unified Customs Tariff of the EAEU.

"Kazakhstan has proved to be a conscientious and trustworthy partner, which fully fulfills its obligations both within the framework of the EAEU and the WTO. In order to ensure the traceability of goods from our List of Exemptions, mechanisms for confirming the payment of rates for tariff duties of the Union using electronic invoices were thought out. Similar obligations to confirm the origin also apply to goods produced on the territory of the Republic of Kazakhstan, but included in the List. Responsibility is provided in national legislation and legislation of the countries of the Union for breach of obligations related to business", - Dana Zhunusova explains.

In addition, the amendments made to the Federal Law "On Customs Regulation in the Russian Federation" will allow the Russian customs authorities to independently stop motor vehicles not only in the areas of customs control established along the state border, but also in other places - in a number of subjects of the Russian Federation.

The list of subjects of the Russian Federation and the conditions for stopping such vehicles (the mass of the equipped motor vehicle is more than 3.5 tons) are defined by the same law. In addition, the internal affairs bodies of the Russian Federation have the right to stop motor vehicles in places where there are no customs authorities.

 "Prior to amending the above-mentioned law, the customs authorities of the Russian Federation had the right to independently stop motor vehicles only in zones of customs control established along the state border of the Russian Federation. In other places, the stoppage of such vehicles was carried out by the bodies of internal affairs in cooperation with customs authorities. The amendments introduced expanded the competence of customs authorities. Now, Kazakh entrepreneurs can be stopped by the customs authorities of the Russian Federation, both at the crossing of the state border of the Russian Federation and the RK, and along the whole route through the territory of the Russian Federation, in particular in the border areas with Kazakhstan", - the deputy chairman of the Board added.

 These amendments will create additional administrative barriers for business and entail temporary and financial costs, which will negatively affect the investment climate in Kazakhstan.

"At the stage of harmpnization and public discussions of the draft document, it was clear that its norms are in conflict with the principles of unimpeded functioning of the single market of goods in the EAEU. Together with the Ministry of National Economy of RK, we applied to the authorized body of the Russian Federation with a request to clarify the law enforcement practice of this document. However, the Russian side send a response that stated: since the project is under implementation, there is no possibility of a detailed explanation of its provisions.

Moreover, today there is no sub-legal basis for the document accepted by the Russian side, and according to the law of the Russian Federation, the procedure for the application and disposal of goods that are prohibited is determined by the Government of the Russian Federation simultaneously with the introduction of a ban in Russia. That is, for entrepreneurs of member states of the Union there are no clear rules, predictable working conditions and the movement of goods in a single economic space", - Board Member Dana Zhunusova commented.

In any case, taking into account the fact that the categories of goods defined in the Law of the Russian Federation cover not only the products circulated in the Russian Federation, the transported goods are included in bans, and this is transit transportation through the territory of the Russian Federation. Very vague categories of goods are included, including "sanctioned" goods, which are still being delivered to Kazakhstan with significant costs.

"Domestic entrepreneurs are already applying to the National Council for clarification of new provisions of Russian legislation. Fears are caused both by a potential ban on Kazakhstan's transit transport from third countries and by customs inspections with the agreements of the countries of the Union on the unhindered movement of goods", - said Dolores Tulebekova, director of the department of economic integration of NCE RK "Atameken".

The made changes come into force in 30 days from the date of publication. Being guided by partner relations of the EAEU member states, Atameken considers it necessary for the Russian side to comment on possible prohibitions.