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Outcomes of the EEC Council: the EAEU new Customs Code will enter into force on January 1, 2018

Outcomes of the EEC Council: the EAEU new Customs Code will enter into force on January 1, 2018


On April 28, the Council of the Eurasian Economic Commission (EEC) attended by the Vice Prime Ministers of the Governments of the Member States of the Eurasian Economic Union (EAEU). Issues of customs regulations, social security and pension schemes for workers of the Union countries, elimination of barriers and restrictions at the Union market, technical regulation, cooperation of the agroindustrial complex in carrying out of research works were discussed.

The Chairman of the EEC Board, the Vice Prime Minister of the Kyrgyz Republic, Oleg Pankratov, drew attention of the Council members to the fact that among the key issues of the session was discussion of the draft Pension Agreement for workers of the EAEU countries. "Adoption of this document in 2017 is one of the priorities of the Eurasian Economic Commission,” Oleg Pankratov said. “Thus, we form another factor of confidence in the future for all citizens of the Union." According to the First Vice Prime Minister of Kyrgyzstan, creating understandable pension accounting system will encourage working-age population to a reasonable geographical mobility, as well as allow the business community to more effectively use investment resources, implement the programs for staff recruiting and development.

Following the discussion, it was decided to continue the work on the formation of rules and regulations that ensure the accrual of pensions, as well as the procedure for export of pension liabilities and accounting work experience in another Member State of the Union. In particular, special attention will be paid to the issue of determining the amount of individual pension coefficient to be applied when calculating the pension.

The Chairman of the EEC Board, Tigran Sargsyan, commenting on the ongoing work of the Commission for the removal of obstacles and barriers to the development of a common market of the EAEU, suggested to discuss a number of barriers identified in the Union countries.

In particular, in the Republic of Belarus, in addition to the requirements of technical regulations of the EAEU, a sanitary and hygienic examination procedure was introduced that are not provided for in the Treaty on the Union. It is mandatory for food products, children's products, perfume and cosmetics, oral hygiene products, construction raw materials and materials, home appliances, automotive components, etc. 

Another barrier is applied in Kazakhstan: the procurement procedures out of public funds of medicines, vaccines and other immunobiological preparations within the statutory free medical assistance program does not comply with the EAEU laws. In such procurement, preferential conditions for participation in tender procedures are provided for national suppliers. Representatives of Kazakhstan committed themselves to eliminate this barrier by July 1, 2017.

The lack of uniform rules of charging a security payment in sale of alcoholic beverages was recognized a restriction. Security payment is applied in all the Member States, except Armenia. While in Russia, it is higher for foreign suppliers than for domestic ones, in Belarus and Kazakhstan, it is charged only from foreign sellers, in Kyrgyzstan - only from suppliers from the EAEU countries. This creates discriminatory conditions for exporters.

The EEC Council decided to synchronize the ratification procedures of the Customs Code of the Eurasian Economic Union. This will facilitate its entering into force on January 1, 2018.

Simultaneously with the Code, the Commission's priority decision on twenty-five issues related to the supranational level will come into effect. They relate to the regulation of the activity of authorized economic operators, rules on the movement of goods by natural persons, etc. 

The Commission’s Minister in charge of Customs Cooperation, Mukai Kadyrkulov, briefed the EEC Council members on the progress of the formation of the one-stop shop mechanism in each country of the Union. 

The EEC Council members endorsed the program of work for 2017 that provides for development of the Single Window project in the foreign economic activity regulation system in the Member States. In particular, the Commission and the EAEU countries should adopt, at the level of the Supreme Eurasian Economic Council, a reference model of the national Single Window mechanism, which includes a detailed description of functions and architecture. It is also planned to develop the tools, standards and regulations aimed at introduction and development of the reference model.

The draft decision of the Eurasian Intergovernmental Council on the procedure for cooperation of the EAEU Member States and the Commission in developing and implementing joint research and development work in the agricultural sector was approved. The decision taken by the Heads of the Governments of the Union countries will facilitate more efficient use of scientific potential, promote innovation in the agroindustrial complex.