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EEC Council approved amendments to the Treaty on the EAEU on levying indirect taxes and monitoring their payment while exporting and importing goods

EEC Council approved amendments to the Treaty on the EAEU on levying indirect taxes and monitoring their payment while exporting and importing goods

10/1/2019
EEC Council approved amendments to the Treaty on the EAEU on levying indirect taxes and monitoring their payment while exporting and importing goods
October 01, 2019
A meeting of the Eurasian Economic Commission (EEC) Council with the involvement of Deputy Heads of Governments of the Eurasian Economic Union (EAEU) countries and Tigran Sargsyan, Chairman of the EEC Board, was held on September 30 in Yerevan (Armenia). The EEC Council’s Members considered issues in the spheres of functioning of the EAEU internal market, integration, customs tariff and technical regulation, international trade and economic cooperation, digitalization of the EAEU countries’ economies, tax policy and a number of others.
The EEC Council has approved amendments to the Protocol on the procedure for levying indirect taxes and the mechanism of control over their payment while exporting and importing goods, performing works and rendering services (Annex No. 18 to the Treaty on the EAEU).

The amendments provide for the possibility of paying value added tax (VAT) on imported goods from the territory of one Member State to the territory of a free (special, exclusive) economic area, the limits of which coincide in full or in part with the Union customs borders, functioning in Russia as of July 1, 2016, with a delay of 180 calendar days.

The introduction of such amendments is required to achieve equal conditions for levying VAT with respect to goods of the Union and the States that are not EAEU Members.

The document will be sent to the Union countries for internal approval.

The EEC Council has heard information on the progress in removing barriers in the EAEU internal market. The Commission, together with the Member States, has identified 56 barriers in the internal market and eliminated 37, eight of which have been eliminated since the beginning of 2019.

The EEC Council has amended the Single Commodity Nomenclature of Foreign Economic Activity of the EAEU and the EAEU СCT for certain types of fabrics. The customs duty on these types of fabrics has been reduced from 10% to 0% on a provisional basis - until December 31, 2021. This decision was made after considering the initiative of Russia. During its implementation, support and further development of garment manufacturers of the EAEU countries will be provided. At the same time, manufacturers will use acceptable tools to improve production efficiency depending on stability of demand for products and economic conditions. For example, the use of released funds in order to manufacture additional volumes of production, preserve and develop production, increase its profitability, receive extra profit, etc.
 
The EEC Council has decided to extend until December 31, 2021 the validity term of zero import customs duty rate charged on certain types of internal combustion engines following the consideration of the proposal submitted by Belarus. This entails compression-ignition internal combustion engines for assembling motor vehicles in heading 8704 CN FEA of the EAEU, with an engine cylinder capacity of at least 18 500 cm3, with a capacity of at least 500 kW (code 8408 20 990 4 CN FEA of the EAEU). Such a measure will allow consumers of BelAZ quarry machinery to purchase dump ​trucks at lower prices in the Union’s internal market owing to cheaper import engines, analogues of which are not currently produced in the Union.​