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A barrier in form of applying minimum level of control prices for goods from EAEU countries to be eliminated in Kyrgyzstan

A barrier in form of applying minimum level of control prices for goods from EAEU countries to be eliminated in Kyrgyzstan

7/10/2018

The issues of customs regulation, competition and functioning of internal markets of the Eurasian Economic Union (EAEU) were considered at the meeting of the Eurasian Economic Commission’s (EEC) Board. The EEC notes the readiness of the Kyrgyz Republic to eliminate a barrier in mutual trade, the case of signs of unfair competition has been discontinued, the overhead crane has been classified, and the Regulation on the Certifying Center of the Commission has been approved.

The Kyrgyz Republic expressed its readiness to eliminate a barrier associated with the application of a minimum level of control prices for goods imported into the country from the Eurasian Economic Union Member States.

In Kyrgyzstan, the amount of tax levied on a number of goods imported from the Union Member States is calculated based on the approved minimum level of control prices, without taking into account the prevailing level of market prices and the actual cost of purchasing goods. Meanwhile, with respect to similar products manufactured in the country or imported from third countries, the minimum level of control prices is not applied, and the cost of goods is calculated based on prices actually agreed upon by the parties to the transaction.

The Commission’s Board noted the readiness of the Kyrgyz Republic to amend the acts of the national legislation in order to bring them in line with the Union’s law until October 2018. The EEC Board will return to the consideration of this issue in October 2018.

The Commission’s Board once again considered the issue of restrictions on the supply of dairy products from the Republic of Belarus to the Russian Federation.

It was noted that the introduction of temporary restrictions on importing certain types of milk products to the Russian Federation from the territory of the Republic of Belarus does not correspond to the Union’s law. Meanwhile, the Republic of Belarus and the Russian Federation are ready to remove restrictive measures for the supply of milk products. For this purpose, an appropriate “road map” will be implemented.

At the same time, in case the Russian Federation retains restrictive measures for the supply of Belarusian milk products that do not comply with the Union's law, then the notification issue regarding the necessity to comply with the provisions of the Treaty on the EAEU within the three-months period will once again be considered at the meeting of the Commission’s Board.

The Commission’s Board did not find violations by the Russian company "Ural machine-tool company" (UMTC) of the general rules of competition on cross-border markets, as stipulated by the Treaty on the EAEU. The case is closed.

Earlier, the Commission received an appeal from the Ministry of National Economy of the Republic of Kazakhstan, the files of which indicated possible signs of unfair competition. In particular, according to the opinion of STAHLBAU Metal Structures Plant, LLP (Republic of Kazakhstan), UMTC illegally used the Kazakh company name as well as the photographs and description of the plant on its website and in catalogues.

During the examination of the appeal files, it was found that UMTC used the photographs of production facilities in Kazakhstan without STAHLBAU’s permission, indicating also that those facilities were the industrial site of UMTC.

Nevertheless, the Commission did not establish any competitive relations between the Russian and Kazakh enterprises on any of the cross-border markets.

The absence of competitive relations does not make it possible to qualify the actions of UMTC as unfair competition (paragraph 2 of Article 76 of the Treaty on the EAEU).

In addition, an overhead crane on stationary supports with electric drive has been classified – in accordance with the Basic Rules for the Interpretation of CN FEA 1 and 6, it is assigned to subheading 8426 11 000 0 of the single CN FEA of the EAEU.

The Regulation on the Certification Center (CC) of the Commission has been approved. The Certification Center is a component of the EEC integration segment and is designed to provide the Commission’s representatives with electronic digital signature keys for signing electronic documents. The Regulation on the CC of the Commission defines the status, objectives, tasks of the activity, functions, etc.