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EEC Council extended norm on mass fraction of sulphur 1.5% in marine fuels as well as zero rate of import customs duty on vanadium oxides and hydroxides

EEC Council extended norm on mass fraction of sulphur 1.5% in marine fuels as well as zero rate of import customs duty on vanadium oxides and hydroxides

12/20/2019

On December 19, a meeting of the Eurasian Economic Commission (EEC) Council was held in St. Petersburg with the involvement of Deputy Heads of Government of the Eurasian Economic Union (EAEU) countries and Tigran Sargsyan, Chairman of the EEC Board. Members of the EEC Council discussed the issues of the Eurasian economic integration, functioning of the internal market, digitalization of the EAEU countries’ economies, customs and tariff regulation, single market for services, competition, tax policy, energy, customs and technical regulation, international cooperation and other.

The EEC Council has approved the reduction of the import customs duty rate of the Common Customs Tariff of the EAEU for vanadium oxides and hydroxides from 5% to 0%, which are used for titanium alloys used in the aerospace industry. The proposal was initiated by the Russian Federation. This measure is aimed at increasing the competitiveness of titanium alloys based on vanadium ligatures, increasing their production volumes and the utilization level of production capacities of the Member States’ enterprises in manufacturing such products.

The EEC Council has extended the norm on mass fraction of sulphur 1.5% in marine fuels until December 31, 2023. This decision applies to the fuel used on ships for inland water transport in the EAEU.

The marine fuels traded in the market shall comply with the Union’s Technical Regulation “On requirements to automobile and aviation gasoline, diesel and ship fuel, jet engine fuel and furnace boiler oil". The mass fraction of sulphur is the main qualitative characteristic of these petroleum products in accordance with the technical regulations. Today it should not exceed 1.5%. From January 1, 2020, however, this requirement will have to be tightened – it shall contain no more than 0.5%, regardless of the ships which use this fuel.

As any changes in quality characteristics of marine fuels can lead to a number of negative consequences, including the rise in prices by 25-40%, bankruptcy of shipping companies involved in the EAEU countries’ internal logistics, with the loss of jobs and failure of navigation 2020 in some water basins, the EEC Council considered this innovation in the EAEU countries as premature in relation to inland water transportation.

The decision adopted by the Council will enable complying with international standards applicable in international transport, in particular, the 1973 International Convention for the Prevention of Pollution from Ships, and avoiding severe social and economic consequences in the inland water transport industry.

The EEC Council has extended the transition period for the Republic of Kazakhstan to adopt requirements for microbiological indicators for raw milk until January 1, 2025.

According to the Kazakh side, the current level of development of raw milk procurement system in Kazakhstan’s dairy industry does not allow ensuring compliance with the requirements of the Union’s Technical Regulations "On safety of milk and dairy products" on the content of mesophilic aerobic and facultative anaerobic microorganisms (CMAFAnM) and somatic cells since January 1, 2020.

The optimal date for the Republic of Kazakhstan is defined as January 1, 2025. By this time, the country will fulfill all the measures laid down in the relevant national "roadmap", including the improvement of laboratory facilities and practices for the control of input raw materials. Along with that, dairy products manufactured according to the transitional requirements (raw milk, raw skim milk, raw cream used for producing dairy products, except for drinking and reconstituted milk, fermented dairy products, baby food, hard cheeses and butter) will be traded in Kazakhstan only.

Development of amendments to the EAEU Technical Regulation “On safety of chemical products” has been started.

Members of the EEC Council signed a Disposition approved on March 29 this year at the meeting of the Commission’s Council, which determined the organization in charge of development and preparation of draft amendments to the technical regulation. In particular, it is suggested to cancel the state registration of certain chemical product categories under the accelerated procedure.

The EEC Council has instructed the Commission’s Board to continue working out the mechanism for establishing a re-exemption from the national regime in the sphere of state (municipal) procurement.​