The Customs Union is ... Definition, participants, rules, requirements. Technical Regulations of the Customs Union
The interstate agreement in the form of collective protectionism of different countries, providing for a single customs territory, was the Customs Union. This is a community where the member states agreed to establish common intergovernmental bodies that coordinate and coordinate foreign trade policy. Meetings of ministers of relevant departments are held periodically, whose work relies entirely on a permanently functioning intergovernmental secretariat. The Customs Union is a form of integration between countries and the creation of supranational bodies. And this was another step towards integration into a more advanced form from the already existing free trade zone.In 2015, a new organization, the Eurasian Economic Union (EAEU), began its work on the basis of the Customs Union.
In the nineteenth century, the German Customs Union was created, where the German states agreed to abolish customs barriers between their countries, and duties went to a common cash register, where they were distributed among the participating countries by the number of inhabitants. Probably, the German Customs Union is the first dress rehearsal for the creation of the European Customs Union, which is now functioning. The Eurasian Economic Union also joined forces on the problem of integration of the territories of the community. This is a merger of interstate forms of trade and economy between Russia, Belarus, and Kazakhstan. Basically it is about this alliance that will be discussed in this article. In addition to the above, customs unions of South Africa, East Africa (as a community), Mercosur, Andean community and some others existed at various times.
In October 2006, an agreement on trade integration between Kazakhstan, Belarus and Russia was signed in Dushanbe (Tajikistan) and a technical regulation of the Customs Union was developed.The purpose of such an organization was the creation of a single customs territory in which several states are members. The rules of the Customs Union abolished duties on products sold. At the same time, this step allowed to protect its own markets from excess imports, smoothed out all the irregularities of the trade and economic sphere. Within the participating countries, uniform requirements of the Customs Union and a single customs tariff have been created. The same prescription regulated trade relations with other countries not belonging to the Customs Union. It was necessary.
The same agreement of 2007 approved not only the technical regulations of the Customs Union, but also the Commission - its single regulatory body. In 2012, the regulation was completed, and it was replaced by an even more powerful organization, whose powers were tenfold, and its staff was significantly increased. This is the EEC - the Eurasian Economic Commission. The Republic of Kazakhstan, the Republic of Belarus and the Russian Federation constituted an entity based on the Eurasian Economic Community. A single structure of technical regulation was simply necessary.It was the Commission that developed the unified register of the Customs Union, approved its rules. She also has the prerogative of developing technical regulations.
The unified register concerns the certification bodies of the TS and its testing laboratories. This is a list of issuers of certificates that guarantee the safety of this product. Nowhere to confirm such a document is not necessary in the territory of the CU countries. The TC Commission is the coordinator of all actions and all the efforts of the participating countries on technical settlement, under whose control all the activities of the Customs Union are under control. The national technical regulations have ceased to operate from the moment of the creation of the Commission and the development by it of unified regulations of the CU. The participants of the Customs Union agreed that a single customs territory, where customs duties do not apply and there are no economic restrictions, may have exceptions - these are special protective, anti-dumping and countervailing measures.
Throughout the territory of the member states, uniform measures of regulation are applied: the customs tariff within the CU and the rules of trade with other countries.Compliance with the rules of the Interstate Council, which is the highest body of the CU and which includes the heads of government and heads of state of all the CU countries, is monitored. For 2007, these were Russian President D. Medvedev and Russian Prime Minister V. Putin, President of the Republic of Belarus A. Lukashenko and Prime Minister of the Republic of Belarus S. Sidorsky, President of Kazakhstan N. Nazarbayev and Prime Minister K. Masimov. Since 2008, the EurAsEC Interstate Council (VOTS) has become the highest authority of the CU at the level of the heads of state of the participating countries only.
The only regulatory body that provided the working conditions and development of the CU is the CU Commission, whose decisions are mandatory and do not require any confirmation at the national level. The States of the Customs Union divided the influence on the solution of all the questions raised in this way: Russia has fifty-seven votes in the Commission, and Kazakhstan and Belarus - twenty-one votes each. All decisions are made if two thirds of the votes are cast. In 2009, the Executive Secretary of the CU Commission was approved by S. Glazyev. If disputes arise between the participating countries, they are resolved by a special court of the EurAsEC, where it is possible to achieve changes in the actions of the CU bodies and the state power of the association.
Activities of the Customs Union
In 2009, the highest body of the CU - the Commission, in conjunction with the governments of the parties, took a set of measures to complete the formation of the contractual and legal framework of the CU. This includes the Common Customs Tariff, the Customs Code, and the statute of the CU court. In November 2009, a decision was made on a single customs tariff among the countries that included the Customs Union. Customs duties in trade between these countries were regulated because the ETT, the Common Customs Tariff, came into force. In 2010, a summit was held, where a statement was signed on the effectiveness of the Customs Code, which began its work in July 2010. A number of provisions of the Unified Customs Code do not have a legal analogy in the laws of the CU member states.
For example, there is no concept of the Common Customs Territory, and there are no stipulations regarding customs transit. Also, the CU code canceled clearance at customs and customs border control of all goods originating from the territories of the CU member countries, in addition, this also applies to goods of other countries that are in free circulation in the CU territory.The Code provides for the requirements of the Customs Union - reciprocity in the recognition of measures to ensure payment in all CU territories. The institute of an economic operator was introduced - a person with the right to use various simplifications that can be carried out during customs procedures.
In September 2010, the Customs Union imposed on its territories a regime that credits and distributes customs duties. Trilateral agreements have agreed that imports are credited to a certain single account in order to be proportionally distributed between the budgets of Belarus, Kazakhstan and Russia. For example, 87.97% of the total volume of import duties is charged to the Russian budget, 4.7% to the Belarusian, and 7.33% to the Kazakhstani. In 2011, the customs authorities stopped monitoring at all internal borders of the vehicle.
The CU Action Plan was approved by three member states, and according to the plan, the customs authorities of Russia ceased any operations regarding the vehicles and goods that follow our territory. Previously, control was exercised at all checkpoints at the state border of the Russian Federation.And the Russian-Belarusian border in the PUU (point of acceptance of notifications) ceased all transit control operations from third countries.
The 2010 Customs Union Regulation on Security provided for the introduction of a transitional period at the border of Russia and Kazakhstan, when border points will still function, exercising control - both border and migration, and the goods and vehicles that follow the CU are still implemented by joint customs services of the participating countries. Special services of the three countries should exchange all information regarding each consignment that is issued in their territory. In 2010, the authorities were already counting on the creation of a single economic space in all territories, since this is the surest step towards the creation of a common market.
The Customs Union is gradually replenished, with all member countries continuing to apply in addition to uniform customs tariffs many other measures, including the regulation of trade with third countries. The states that joined the CU: Kazakhstan and Russia - from July 1, 2010, the Republic of Belarus - in five days, Armenia - January 2, 2015, Kyrgyzstan - August 12, 2015.There were candidates - Syria would have already entered the CU, if not for the war unleashed on its territory (however, perhaps this intention was one of the reasons for unleashing it), and in January 2015 Tunisia announced its intention to join the CU.
Some general information
Export of goods was accompanied by a zero rate of VAT or exemption from excise payments (reimbursement of the amount already paid), if the fact of export is documented. Imports of goods to Russia from two other CU member countries were accompanied by VAT and excise taxes. If services were provided or work was carried out on the territory of Russia, then the tax base, rates, tax incentives and collection procedure were determined in accordance with the legislation of the Russian Federation.
After 2015, the following import duties imposed international obligations in the framework of the CU and the Common Economic Space: the budget of the Russian Federation receives 85.33%, the budget of Belarus - 4.55%, Kazakhstan - 7.11%, Armenia - 1.11%, and Kyrgyzstan - 1.9%. Labor migrants - citizens of member countries of the CU - no longer have to buy a patent to get a job in the Russian Federation, since they have the same right to work as citizens of Russia.
Back in 2011, being the executive secretary of the TC Commission, Sergei Glazyev brought undeniable benefits to the creation of the Customs Union - both in economic and geopolitical aspects. After the degradation and collapse of the Soviet Union, after the decades-long impoverishment of economies and all kinds of hardships, the former Soviet republics began to integrate, and this is a geopolitical achievement of tremendous significance, the only one capable of giving concrete benefits to the economy of each state.
In 2012, an integration study was conducted by the Eurasian Development Bank. The survey took place in ten CIS countries and additionally in Georgia, where up to two thousand respondents took part in each of the countries. The question was one: attitude to the creation of the Customs Union, which exempted trade from within three countries (Russia, Belarus and Kazakhstan) from duties. The Kazakhs welcomed the Customs Union in 80% of cases, Tajiks - 76%, 72% of respondents favored Russia, 67% in Kyrgyzstan and Uzbekistan, 65% in Moldova, 61% in Armenia, 60% in Belarus, 38%, and in Georgia - 30%.
Criticism about the vehicle has always existed.Most often it came down to the topic of insufficient elaboration of the conditions for certification of goods and trade, it was also said about the Russian Federation imposing on the countries-participants in the WTO conditions, although they did not join this organization. Some experts complained about the inequity of the distribution of income between participants. However, none of them could prove with their research that the Customs Union is not a very profitable project for both the participants and its potential members. On the contrary, a huge number of meticulously conducted studies consistently and on all counts proves that the EAEU is unequivocally beneficial to all its members, both for economic and ideological reasons.
Some experts note that the ideological component outweighs the economic one, since this union is an artificial formation, and therefore cannot be viable and exists so far only because it is ideologically advantageous for Russia, and it sponsors participants. However, a number of accusations of the unfairness of income sharing and the topic of sponsorship get along very badly. This or that.Judging by the economic calculations, Belarus and Kazakhstan, and Kyrgyzstan and Armenia, membership in the EAEU is beneficial.
Today, the Eurasian Economic Union is no less active than in any of the past moments of the existence of the CU. The Commission’s decisions discuss all new programs for the development of relations between the participating countries. For example, an oil and gas advisory committee has been established and is working, which forms a common gas market within the EAEU. And this is perhaps the most important priority of integration cooperation, which included a whole range of various activities - technological, organizational, legal (there are more than thirty events altogether). In 2016, the heads of state of Russia, Kyrgyzstan, Kazakhstan, Belarus and Armenia have already approved the concept of work on the formation of a common gas market. It remains to work out an international agreement with uniform rules for access to gas transportation systems located in the territories of these states.
A common market for road transport services is developing, the competitiveness of international transport is increasing, customs regulations and insurance have been greatly improved.Despite the fact that between the participating countries foreign economic relations are provided by all existing types of transport, the share of road transport in it is more than 82 percent of the total freight traffic, and passenger traffic - 94 percent. And these percentages are still growing. A common market for air transport services is also being formed, and this topic was discussed in detail in Minsk by the advisory committee at the end of April 2017. A draft of the so-called roadmap is being prepared, which is the implementation of the main directions of the transport policy.