Member countries of the Customs Union are Armenia. Eurasian Economic Union. Goals and history of creation

TASS DOSSIER. The Eurasian Economic Union is an international integration economic association whose members are Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.

The union began work on January 1, 2015; replaced the Eurasian Economic Community (EurAsEC, operated in 2000-2014).

Creation of the EAEU

The EAEU was formed on the basis of the Customs Union and the Common Economic Space of Russia, Belarus and Kazakhstan (until 2015 they operated within the framework of the EurAsEC). The creation of the Eurasian Economic Union was first announced by the Presidents of the Russian Federation Dmitry Medvedev, Belarus Alexander Lukashenko and Kazakhstan Nursultan Nazarbayev in the Declaration on Eurasian Economic Integration, signed on November 18, 2011 at a meeting in Moscow.

On May 29, 2014, in Astana, the heads of Russia, Kazakhstan and Belarus Vladimir Putin, Nursultan Nazarbayev and Alexander Lukashenko signed the Treaty on the Eurasian Economic Union (ratified by Russia on October 3, Kazakhstan and Belarus on October 9, 2014).

In 2011, Kyrgyzstan announced its intention to join the EAEU, and in 2013, Armenia. The agreement on Armenia's accession to the union was signed on October 10, 2014 in Minsk (in fact, the republic became a member of the EAEU on January 1, 2015). On December 23 of the same year, Kyrgyzstan signed a similar agreement in Moscow. On May 8, 2015, in Moscow, members of the organization signed documents on Kyrgyzstan’s accession to the Treaty on the EAEU. On May 20, the agreement was ratified by the parliament of the republic, and signed by the president on May 21. By August 6, 2015, ratification procedures for Kyrgyzstan’s accession to the EAEU were completed; On August 12, 2015, the Treaty on Kyrgyzstan’s accession to the EAEU came into force.

Organizational goals

According to the document, the goals of the EAEU are the economic development of the participating countries, modernization and increasing the competitiveness of these states in the world market. When signing the agreement, the parties pledged to coordinate economic policies and guarantee the free movement of goods, services, capital and labor, and to implement coordinated policies in key sectors of the economy (energy, industry, agriculture, transport).

Structure and governing bodies

The highest body of the EAEU is the Supreme Eurasian Economic Council, which includes the presidents of the union member states. Its meetings are held at least once a year. The first since the start of the EAEU took place on May 8, 2015 in the Kremlin.

The heads of government of the participating states are members of the Eurasian Intergovernmental Economic Council. He ensures the implementation and control over the execution of decisions of the Supreme Council at the presidential level, gives instructions to the Eurasian Economic Commission, and also exercises other powers. Meetings are held at least twice a year. The first took place on February 6, 2015 in Gorki, at the residence of the head of the Russian government near Moscow.

The permanent regulatory body of the union is the Eurasian Economic Commission. Among its tasks: ensuring conditions for the functioning and development of the union, as well as developing proposals on economic issues of cooperation.

In 2015, the presidency of the EAEU was held by Belarus. On February 1, 2016, the chairmanship passed to Kazakhstan.

Statistics

Currently, the EAEU (including Kyrgyzstan) occupies an area of more than 20 million square meters. km with a population of 182.7 million people (as of January 1, 2016). According to the Eurasian Economic Commission, the total gross domestic product of the EAEU member countries in January-September 2015 amounted to 1.1 trillion US dollars, decreasing by 3% compared to the same period in 2014. The volume of industrial production in 2015 decreased by 3.4% ($907.1 billion). At the end of 2015, the volume of mutual trade of the EAEU member states amounted to $45.4 billion, which is 25.8% less than in 2014. The volume of foreign trade in 2015 compared to 2014 decreased by 33.6% - up to 579.5 billion dollars, including exports of goods - 374.1 billion dollars, imports - 205.4 billion. According to the official website of the organization, the EAEU countries produce 607.5 million tons of oil per year (or 14.6% of the world share), as well as 682.6 billion cubic meters. m of gas (18.4%).

On May 22, 2015, during the VIII Astana Economic Forum, an agreement was signed on the creation of the EAEU Business Council, the founders of which were the National Chamber of Entrepreneurs of Kazakhstan "Atameken", the Russian Union of Industrialists and Entrepreneurs, the Confederation of Industrialists and Entrepreneurs (employers) of Belarus, the Union of Industrialists and Entrepreneurs (employers) of Armenia, Kyrgyz Union of Industrialists and Entrepreneurs. The work of the Council will make it possible to establish a dialogue between the business circles of the EAEU member countries, as well as ensure their coordinated interaction with the Eurasian Economic Commission (EEC) and the leadership of states.

Creation of free trade zones

On May 29, 2015, in Kazakhstan, after a meeting of the Eurasian Intergovernmental Economic Council, an agreement on a free trade zone (FTA) between the EAEU and Vietnam was signed, which became the first international document on an FTA between the EAEU and a third party. The agreement provides, in particular, the conditions for tariff liberalization of trade in goods between the states of the Union and Vietnam by reducing or zeroing the rates of import customs duties on a significant group of goods. The document will come into force 60 days after it is ratified in all EAEU countries and Vietnam in accordance with national legislation.

October 16, 2015 in the Kazakh village. Burabay, at a meeting of the Supreme Eurasian Economic Council, it was decided to begin negotiations on the creation of a free trade zone with Israel. In addition, negotiations are currently underway at the working group level on the possibility of concluding similar agreements with Iran, India and Egypt. Jordan and Thailand took the initiative to begin negotiations on the creation of an FTA with the EAEU.

In 2016, the countries of the Union plan to agree and sign with China a road map for connecting the projects of the EAEU and the Silk Road Economic Belt. The preparation of documents on this issue is currently being completed.

Cooperation with integration associations

On December 3, 2015, Russian President Vladimir Putin, addressing his annual message to the Federal Assembly, spoke in favor of exploring the issue of creating a large-scale economic partnership between the countries of the Eurasian Economic Union (EAEU), the Shanghai Cooperation Organization (SCO) and the Association of Southeast Asian Nations ( ASEAN).

Meetings of governing bodies

Since the start of the EAEU, three meetings of the Supreme Eurasian Economic Council (SEEC) have taken place.

The first one has passed May 8, 2015 in the Kremlin. At the end of it, the presidents of Russia, Belarus, Kazakhstan and Armenia signed a protocol on amendments to the legal documents of the EAEU in connection with the accession of Kyrgyzstan to the organization. Agreements were also signed on free trade between the EAEU and Vietnam, on the start of negotiations with China on concluding an agreement on trade and economic cooperation, etc. Russian President Vladimir Putin and Chinese President Xi Jinping, following the results of bilateral negotiations on the sidelines of the summit, adopted a joint statement on the integration of The EAEU with the Chinese project “Silk Road Economic Belt”.

October 16, 2015 at a council meeting in the Kazakh village. For the first time, the President of Kyrgyzstan Almazbek Atambayev participated in Burabay as a full member. Following the summit, the leaders of the EAEU countries decided to begin negotiations with Israel on the creation of a free trade zone. In addition, the procedure for admitting new members to the organization, some aspects of Kazakhstan’s accession to the WTO, cooperation with China, etc. were considered. The main directions of the international activities of the union for 2015-2016 were approved.

December 21, 2015 in Moscow, at a meeting of the Eurasian Economic Union, a decision was made to transfer the chairmanship of the organization to Kazakhstan, the personal composition of the board of the Eurasian Economic Commission was determined in connection with the end of the term of office of the ministers of the commission (appointed every four years), a decision was made to conduct population censuses in the countries of the union in 2020 ., as well as the beginning of the development of “road maps” for cooperation with China. The parties discussed the entry into force of the free trade agreement between Ukraine and the EU on January 1, 2016 and the risks that may arise in this regard for the economies of the union countries. In particular, the leaders of the EAEU countries agreed to exchange information about all goods entering the union states and to create a unified database.

Meetings of the Eurasian Intergovernmental Economic Council

The first meeting of the Eurasian Intergovernmental Economic Council took place February 6, 2015 in Gorki, in the residence of the head of the Russian government near Moscow. The meeting of the prime ministers of the four EAEU member states was held with the participation of the head of government of Kyrgyzstan. Issues regarding the development of integration, the functioning of the EAEU, the development of the regulatory framework, as well as the upcoming entry into the union of Kyrgyzstan were discussed. Following the meeting, the heads of government ordered to develop a concept for the creation of a Eurasian engineering center for machine tool manufacturing, to provide funding for a pilot project to introduce uniform labeling of goods on the territory of the EAEU states, etc.

May 29, 2015 in the village A meeting of the Eurasian Intergovernmental Council was held in Burabay, Akmola region of Kazakhstan. Upon its completion, the EAEU and Vietnam entered into a Free Trade Agreement. The document was signed by the prime ministers of the countries of the Union and Vietnam. The agreement established the mutual obligations of the participants to simplify access of goods to the markets of the countries participating in this agreement. Customs duties will be reduced on 88% of mutual trade goods, of which 59% rates will be reduced immediately, and not yet 29% - gradually over 5-10 years. In a separate annex to the Agreement, Russia and Vietnam agreed to simplify market access in the services sector; later, if desired, other EAEU countries can join this annex.

September 8, 2015 In Grodno (Belarus), following the results of the regular meeting of the Eurasian Intergovernmental Council, a number of documents were signed, including the decision “On the Main Directions of Industrial Cooperation within the Framework of the Eurasian Economic Union” and the Agreement on Coordination of Actions of the EAEU States to Protect Rights to Intellectual Property.

April 13, 2016 A regular meeting of the Eurasian Intergovernmental Council was held in Gorki near Moscow. The main strategic issues related to the development of cooperation of the EAEU with the European Union and China, as well as the industrial policy of the Union and the activities of the EEC were discussed.

In 1995, the countries of the Customs Union were defined, united by economic and trade relations. Today these are Kazakhstan, Belarus and Russia, with Kyrgyzstan and Armenia joining them. The countries of the Customs Union have formed a single territory with the abolition of all duties on products sold within these borders. The customs tariff is the same for everyone and the same requirements have been created regarding the regulation of trade relations with other countries.

Before 2012 and after

Uniform standards were introduced, which the countries of the Customs Union pledged to implement, thus protecting their own markets from low-quality imported products, as well as smoothing out the roughness of the trade and economic spheres within the Union. The same 2007 agreement provided for the creation of a commission, which became a regulatory body covering all countries of the Customs Union. Her term of work ended in July 2012, and she was replaced by an even more powerful organization - the EEC, which began its activities six months before the end of the Customs Commission. The Eurasian Economic Commission has an order of magnitude more powers; its staff includes ten times more people.

The Customs Commission formed regulations and legal documents, which were necessarily reviewed and signed by all participants, that is, three people - the chairman and two members of the commission. It should be noted that such a commonwealth plan as the Eurasian countries of the Customs Union with Russia is far from the first experience in the history of mankind. In the nineteenth century, the German Customs Union was created, later the EU Customs Union, the South African Customs Union and so on. This is nothing more than an interstate agreement of more than two countries on the abolition of customs trade duties, one of the forms of collective protectionism.

How does this happen

Every time a customs union is created, the participating countries negotiate the creation of intergovernmental bodies that will coordinate and harmonize foreign trade policies. Meetings are periodically held at the ministerial level of relevant departments, which rely on the permanent interstate secretariat for their work. The Customs Union, whose member countries have interstate integration, also creates supranational bodies. This is a more advanced form of integration than, for example, simple free trade zones. The EEC is a permanent regulatory supranational body of the EAEU, which was previously the less advanced Customs Union and the Common Economic Space (SES).

This modern form of a single trade and economic union was created in 2011 by the decision of three presidents - the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation - and sealed by an agreement dated November 18 of this year. By status, this organization is a supranational governing body, and is subordinate to the SEEC (Supreme Eurasian Economic Council), and the decisions of the commission are necessarily implemented by all member countries of the Customs Union, the EAEU and the SES. The main task for the EEC is to provide all conditions for the development and functioning of these three formations, as well as to improve the sphere of integration within the boundaries of these associations.

Authority

All powers of the Customs Union Commission were transferred to the Eurasian Economic Commission. In addition to this, additional functions have appeared, quite a lot of them. The areas of authority are very wide; the commission deals with customs tariff and non-tariff regulation, customs administration, and technical regulation. Compliance with sanitary, phytosanitary and veterinary standards is globally important, and here too the EEC area of action is in place. Member countries of the Customs Union benefit from import customs duties, which have been credited and distributed by the commission. It also establishes trade regimes in relation to foreign countries. The commission is charged with maintaining statistics on mutual and foreign trade, developing macroeconomic and competition policies, and distributing agricultural and industrial subsidies.

Energy policy is under the authority of the Customs Union Commission; under its leadership, natural monopolies are created and municipal and state purchases are made. Each function of the EEC has the goal of flourishing mutual trade in investments and services; it controls monetary policy. Also under her authority are transportation and transport, protection of the results of individualization of services, works, goods, and intellectual activity. The EEC deals with labor migration, financial markets - banking, insurance, securities and foreign exchange markets. And also in her areas of interest there are many other things that are quite difficult to list without rewriting multi-page documents. From the main point: it is the commission that implements international treaties and forms the legal framework of the Customs Union and the EEC. The countries of the single Customs Union, being parties to this association, make shared contributions approved by the heads of state of the parties.

History and prospects

So, in 1995, the leaders of Russia, Kazakhstan and Belarus signed agreements on the creation of the Customs Union. Later they were joined by Tajikistan and Kyrgyzstan. In 2000, the Eurasian Economic Union was created on the basis of this organization. In 2007, the Customs Union Commission was created as a single operating, permanent regulatory body. This path turned out to be quite difficult for Tajikistan, and this needs to be discussed separately. Below there will be a chapter dedicated to Tajikistan and its path to the Customs Union, which this country has not yet mastered. Perhaps in 2017 he will become its sixth member.

In 2010, the Customs Code was introduced, and in 2011, the Declaration on Economic Integration and its second step - the Common Economic Space (SES) was adopted, which came into force only in 2012 in the form of seventeen interstate agreements, which laid the legal basis this organization. Then the turn came to form the Eurasian Economic Commission, which replaced the CU Commission. In January 2015, a comprehensive agreement on the Eurasian Economic Union was signed, which became the third step towards creating an advanced customs system on the territory of the above states. In 2016, five countries signed this treaty. Which countries are included in the new type of Customs Union? Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia.

Structure

In 2012, the commission’s staff numbered six hundred, six months later - eight hundred and fifty, and in 2013 - more than a thousand. All of them are international employees. The EEC operates at two levels - the EEC Board and the EEC Council. The latter manages the activities of the commission, it has five representatives: from each participating country - the deputy prime minister of the national government. Meetings are held monthly. The council includes from Russia - I. I. Shuvalov, from Kyrgyzstan - O. M. Pankratov, from Kazakhstan - A. U. Mamin, from Belarus - V. S. Matyushevsky, from Armenia - V. V. Gabrielyan. The chairpersons take turns in alphabetical order. Decisions are made by consensus.

The executive body of the commission is the EEC Board, which carries out further integration within the borders of the CU and the SES. There are ten members, two people from each country, one of them chairs. Countries included in the Customs Union appoint members and the chairman of the Board for a period of four years, and extension of powers is also provided (at the level of heads of state). Meetings are held weekly.

CU and Tajikistan

With the creation of the CU, it became possible to unite in a certain format (supranational organization) part of the space of the lost Soviet Union. In essence, the Customs Union is the result of the will of the leaders of the three countries, which is aimed at removing barriers, integration, freedom of movement of services, goods, all types of capital, including human capital, across the transparent borders of the participating countries. Logically, the union needs to be expanded, perhaps not to sixteen members, but as many as possible. But from an economic point of view, this step is very risky. Regarding Tajikistan’s accession to the Customs Union, the debate has not subsided for many years; it is still topical. It must be said that, just like Kyrgyzstan, the Tajiks signaled their desire to join in a very contradictory manner.

Firstly, it is one of the poorest countries in Central Asia. There is no access to the sea, all around are mountains, where the civil war lasted for five years since 1992. The entire infrastructure was damaged, especially the economic one. Now the economy of this country is based on cotton production, light and textile industries. Recently, mining has begun - aluminum, coal, antimony, silver and gold. Also, power plants built during the Soviet Union are still operating in the republic. But overall the situation in the country still remains deplorable. Almost the entire working population has left Tajikistan, mostly to Russia, from where they send remittances to families. Of course, this country would have been accepted into the Customs Union anyway, but before Kyrgyzstan joined the Customs Union, Tajikistan did not have common borders with the Customs Union.

Territory

The single territory of the Customs Union - the countries that are its members and all their expanses. These are the terms of the agreements that are signed by the leaders of the Customs Union: the borders of individual territories within any country participating in the Customs Union are the borders of the Customs Union. Within these states, customs borders have been eliminated, customs barriers have been removed, customs duties are not applied, and mutual trade flourishes without any administrative restrictions.

Services, goods, capital and labor flow freely throughout the territory, the domestic legislation of each participating country is unified with the creation of supranational regulation in the field of law. All this contributes to the growth and stability of all participating national economies.

Tasks

Only the main tasks performed by the countries of the Customs Union are presented here. List:

1. Create a single customs territory within the borders of the participating countries.

2. Introduce a regime of absence of non-tariff and tariff restrictions in trade, except for those cases specified in special regulations.

3. Completely abolish customs controls in participating countries at their internal borders.

5. Use similar mechanisms in regulating trade and the economy, which are based on market universal economic principles and economic legislation harmonized for this purpose.

6. To establish the work of unified bodies governing the Customs Union.

Trade relations with countries outside the CU along the entire external border exist according to different rules. There, common customs tariffs are applied, common non-tariff regulation measures are used, a common customs policy is pursued, and common customs regimes are applied.

Positive sides

Compared to the functions of a free trade zone, the CU has many advantages provided to all business entities in the participating countries. First of all, the costs of creating, processing, moving, and transporting goods across the territories of the CU countries are reduced.

In addition, financial and time costs are reduced due to the absence of administrative restrictions. The number of customs procedures is reduced, while goods from other countries not participating in the Customs Union must overcome many customs barriers. With the help of the vehicle, new sales markets are more easily opened. Customs legislation is being simplified and unified.

Prospects

Countries such as Tunisia, Syria and Türkiye intended to join the Eurasian Economic Union. So far, nothing is known about the specifics of actions regarding the implementation of these desires, however, it may happen that with the entry into the number of countries of a single customs space with Russia, political tension in these states will stabilize. In any case, a lot suggests that these intentions are being discussed and weighed in these countries. Another country that is now a potential candidate for joining the CU is Uzbekistan.

With the death of President Karimov, who clearly did not want to integrate into any of the regional organizations, the policy in the state changed. Uzbekistan is experiencing the most difficult economic situation, without much hope for improvement. The TS would be extremely beneficial for him. It is worth remembering that the largest number of migrants in Russia come from Uzbekistan and Tajikistan. There are also many from Kyrgyzstan, but they have a much more stable legal position, since this country is a member of the Customs Union. The customs union is still one of the steps to strengthen ties between the states of the former USSR. Through economic ties, through economic and technological chains - to the restoration of renewed ties and new political realities.

Eurasian Economic Union (hereinafter - EAEU)- an international organization for regional economic integration with international legal personality and established by the Treaty on the Eurasian Economic Union. The EAEU ensures freedom of movement of goods, services, capital and labor, as well as the implementation of a coordinated, consistent and unified policy in sectors of the economy.

The goals of creating the EAEU are:

comprehensive modernization, cooperation and increasing the competitiveness of national economies;
creating conditions for the stable development of the economies of the member states in the interests of improving the living standards of their population.

Within the EAEU:

In relation to third EAEU countries, uniform non-tariff regulation measures are applied, such as:

prohibition of import and (or) export of goods;
quantitative restrictions on the import and (or) export of goods;
exclusive right to export and (or) import goods;
automatic licensing (supervision) of export and (or) import of goods;
permitting procedure for the import and (or) export of goods.

Member states of the Eurasian Economic Union

History of the formation of the Eurasian Economic Union

The official start date for the formation of the Customs Union can be considered 1995, when an Agreement on the creation of the Union was concluded between the Russian Federation, the Republic of Kazakhstan and the Republic of Belarus. The purpose of this Agreement was to establish economic interaction between the parties, ensure free exchange of goods and fair competition.

On February 26, 1999, the Agreement on the Customs Union and the Common Economic Space was signed. The parties to the Treaty were Russia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, and since 2006 - Uzbekistan. Until the early 2000s, the participating countries were actively engaged in the process of establishing cooperation in various fields of activity (including sociocultural, scientific).

In 2000, a decision was made to establish the Eurasian Economic Community (EurAsEC). The members of the community were the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation and the Republic of Tajikistan.

In 2003, the Agreement on the formation of the Common Economic Space (SES) was signed. Work began on preparing the legal framework for the SES, which later became the basis for the functioning of the Union. The most important events in the process of forming the Customs Union were two informal summits of the heads of state of the EurAsEC.

At an informal summit on August 16, 2006, the heads of state of the EurAsEC decided to form a Customs Union within the EurAsEC, according to which Kazakhstan, Belarus and Russia were instructed to prepare a legal framework. A year later, on October 6, 2007, at the EurAsEC summit, a package of documents was approved and signed, marking the beginning of the creation of the legal framework of the Customs Union (agreements on the creation of the Single Customs Territory and the formation of the Customs Union, on the Commission of the Customs Union, protocols on amendments to the Treaty on the Establishment EurAsEC, on the procedure for the entry into force of international treaties aimed at forming the legal framework of the customs union, withdrawal from them and accession to them). In addition, an Action Plan for the formation of a customs union within the EurAsEC was approved.

Officially, on January 1, 2010, the Customs Union of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation began to function. The united states began to apply a single customs tariff and uniform non-tariff regulation measures in foreign trade with third countries, and also streamlined tariff benefits and preferences for goods from third countries, and the Customs Code of the Customs Union came into force. Gradually, customs clearance and customs control began to be abolished at the internal borders of the participating countries of the Customs Union, and points for accepting notifications were eliminated.

In 2012, international treaties came into force, forming the legal basis for the Common Economic Space of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation, creating the basis for the free movement of not only goods, but also services, capital and labor.

With the signing of the Treaty on the Eurasian Economic Union on May 29, 2014, the participating countries of the Customs Union and the Common Economic Space marked the beginning of a new, closer interaction. On October 10, 2014, the Republic of Armenia joined the Treaty on the EAEU. On December 23, 2014, the Treaty on the Accession of the Kyrgyz Republic to the EAEU was signed.

Structure of the unified customs legislation of the Eurasian Economic Union

In connection with the formation of the regulatory legal framework of the Eurasian Economic Union, the customs legislation of the participating states is changing. First of all, in addition to the current national legislation, two more levels of regulation have appeared: international agreements of the member states of the Customs Union and Decisions of the Customs Union Commission (currently the Eurasian Economic Commission). At the moment, the customs legislation of the EAEU is a four-level system:

Customs Code of the Eurasian Economic Union

The transition to a higher level of integration required major changes in the legal and regulatory framework of the Union. Work on the creation of a new Customs Code took several years; the process required numerous approvals of amendments by the Union member states. On December 26, 2016, the Customs Code of the Eurasian Economic Union was adopted, which replaced the Customs Code of the Customs Union adopted in 2009. The new EAEU Labor Code came into force on January 1, 2018. The document combines many international treaties and agreements of the Customs Union (for example, the Agreement on determining the customs value of goods moved across the customs border of the Customs Union), which will lose force in whole or in part.

The EAEU Customs Code contains a number of new provisions relating not only to the structure of the Code itself (the new EAEU Customs Code contains 4 appendices, which were not in the CU Customs Code), but also to the rules of customs regulation in the Union. Thus, in the draft EAEU Customs Code, the conceptual apparatus was updated, the “single window” principle was introduced, the priority of electronic declaration was declared, some changes were made to customs procedures, the institution of an authorized economic operator was reformed, etc.

Governing bodies of the Eurasian Economic Union

The governing bodies of the EAEU are:

Supreme Eurasian Economic Council (supreme governing body)
Eurasian Intergovernmental Council
Eurasian Economic Commission (working permanent body)
Court of the Eurasian Economic Union

Directions of activity of the Eurasian Economic Commission.

The Customs Union is an agreement adopted by the participants of the Eurasian Economic Union, the purpose of which is abolition of customs duties in trade relations. Based on these agreements, common ways of carrying out economic activities and a platform for quality assessments and certification are created.

Thanks to this it is achieved abolition of customs controls at the borders within the Union, general provisions for regulating economic activity for the external borders of the CU are concluded. In view of this, a common customs space is being created, using a generally accepted approach to border control. Another distinctive feature is the equality of rights of citizens of the customs area during employment.

In 2018, the Customs Union consists of next members of the EAEU:

Republic of Armenia (since 2015);
Republic of Belarus (since 2010);
Republic of Kazakhstan (since 2010);
Kyrgyz Republic (since 2015);
Russian Federation (since 2010).

The desire to become a party to this agreement was voiced by Syria and Tunisia. In addition, we know about the proposal to include Turkey in the CU agreement. However, to date, no specific procedures have been adopted for these states to join the Union.

It is clearly visible that the functioning of the Customs Union serves as a good help for strengthening economic relations between countries located on the territory of the former Soviet countries. We can also say that the approach established in the agreement by the participating countries speaks of restoring lost connections in modern conditions.

Customs duties are distributed through a single sharing mechanism.

Given this information, it can be stated that the Customs Union, as we know it today, serves serious tool for the economic unification of countries that are members of the EAEU.

To understand what the activities of the Customs Union are, it will not be amiss to gain an understanding of how it was formed to its current state.

The emergence of the Customs Union was initially presented as one of the steps in the integration of the CIS countries. This was evidenced in the agreement on the creation of an economic union, signed on September 24, 1993.

Step by step moving towards this goal, in 1995, two states (Russia and Belarus) entered into an agreement between themselves on the approval of the Customs Union. Later, Kazakhstan, Kyrgyzstan, and Uzbekistan also entered this group.

More than 10 years later, in 2007, Belarus, Kazakhstan and Russia signed a pact to unite their territories into a single customs region and approve the Customs Union.

In order to specify the previously concluded agreements, from 2009 to 2010, more than 40 additional agreements were concluded. Russia, Belarus and Kazakhstan have decided that, starting in 2012, a Common Market thanks to the unification of countries into a single economic space.

On July 1, 2010, another important agreement was concluded, which put into motion the work of the Customs Code.

On July 1, 2011, the existing customs controls at the borders between countries were canceled and general rules were established at the borders with states that are not in the agreement. Until 2013, uniform legislative norms for the parties to the agreement will be formed.

2014 – The Republic of Armenia joins the Customs Union. 2015 – The Republic of Kyrgyzstan joins the Customs Union.

On January 1, 2018, a new unified Customs Code of the EAEU. It was created to automate and simplify a number of customs processes.

Territory and management

The unification of the borders of the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan became the basis for the emergence of the Common Customs Space. This is how the territory of the Customs Union was formed. In addition, it includes certain territories or objects under the jurisdiction of the parties to the agreement.

The limit of the territory is the border of the Customs Union with third-party states. Moreover, the existence of borders for individual territories located under the jurisdiction of the Union member states is normatively established.

The management and coordination of the Eurasian Economic Union is carried out by two organs:

Interstate Council- the highest body of a supranational nature, consists of heads of state and head of government of the Customs Union.
Customs Union Commission– an agency that deals with issues related to the formation of customs rules and regulates foreign trade policy.

Directions and conditions

When creating the Customs Union, countries declared the main goal socio-economic progress. In the future, this implies an increase in trade turnover and services produced by business entities.

The increase in sales was initially expected directly in the space of the vehicle itself due to following conditions:

The abolition of customs procedures within the Union, which was supposed to make products produced within a single space more attractive, due to.
Increasing trade turnover by eliminating customs controls at internal borders.
Adoption of uniform requirements and integration of safety standards.

Achieving goals and perspectives

Having collected available information about the emergence and activities of the Customs Union, we can come to the conclusion that the results of increasing the turnover of goods and services are published much less frequently than news about the signing of new agreements, i.e. its declarative part.

But, nevertheless, analyzing the stated goals when creating the Customs Union, as well as observing their implementation, one cannot remain silent that simplification of trade turnover has been achieved and competitive conditions have been improved for economic entities of the Customs Union states.

It follows from this that the Customs Union is on the way to achieving its goals, however, in addition to time, this requires the mutual interest of both the states themselves and the economic elements within the Union.

The customs union consists of countries that have the same economic background, but today these states are very different from each other. Of course, even in Soviet times, the republics differed in their specialization, but after gaining independence, many more changes occurred that affected the world market and the division of labor.

However, there are also common interests. For example, many participating countries remain dependent on the Russian sales market. This trend is economic and geopolitical in nature.

Throughout the whole time leading positions in the process of integration and stabilization of the EAEU and the Customs Union played Russian Federation. This was possible due to its stable economic growth until 2014, when prices for raw materials remained high, which helped finance the processes launched by the agreements.

Although such a policy did not predict rapid economic growth, it still assumed the strengthening of Russia's position on the world stage.

The history of relations between the parties to the agreements is similar to a series of compromises that were built on the basis of the role of Russia and the positions of partner countries. For example, there were repeated statements from Belarus about its priorities: a single economic space with equal prices for oil and gas, access to Russian government procurement.

To achieve these goals, the Republic increased tariffs on imported cars in the absence of its own production. Because of such measures it was necessary to install rules for certification of light industry goods, which hurt retail trade.

In addition, the standards adopted at the CU level were unified with the WTO model, despite the fact that Belarus is not a member of this organization, unlike Russia. Enterprises of the Republic have not received access to Russian import substitution programs.

All this served as obstacles for Belarus on the path to achieving its goals in full.

It should not be overlooked that the signed CU agreements contain various exceptions, clarifications, anti-dumping and countervailing measures, which have become an obstacle to the achievement of common benefits and equal conditions for all countries. At various times, virtually every participant in the agreement expressed disagreement with the terms contained in the agreements.

Although customs posts on the borders between the parties to the agreement were eliminated, border zones between countries have been preserved. Sanitary control at internal borders also continued. A lack of trust in interaction practice has been revealed. An example of this is the disagreements that flare up from time to time between Russia and Belarus.

Today it is impossible to say that the goals that were declared in the agreement on the creation of the Customs Union have been achieved. This is evident from the decrease in the turnover of goods within the customs area. There are also no economic development benefits when compared with the time before the agreements were signed.

But there are still signs that in the absence of an agreement the situation would deteriorate more rapidly. The manifestation of the crisis would be broader and deeper. A significant number of enterprises gain relative benefits by participating in trade relations within the Customs Union.

Methods for distributing customs duties among countries also indicate favorable trends for the Republic of Belarus and the Republic of Kazakhstan. Initially, a large share was planned for the budget of the Russian Federation.

The agreements signed by the parties benefited the production of automobiles. Duty-free sales of cars assembled by manufacturers in participating countries have become available. Thus, conditions have been created for the implementation of projects that previously could not succeed.

What is the Customs Union? Details are in the video.

The Eurasian Economic Union unites five states pursuing a coordinated policy of economic integration. The international organization was created with the aim of taking measures aimed at overcoming crisis trends in the economies of the united countries, in order to improve the well-being of their population.

The EAEU member countries for 2016 are the Russian Federation, the Republic of Kazakhstan, the Republic of Belarus, the Kyrgyz Republic, and the Republic of Armenia. The bulk of the commonwealth's imports comes from equipment, vehicles and machinery, while exports are based on the sale of mineral products.

Chronology of the creation of the SEZ

The project for the integration of countries was proposed back in 1994, and a year later, in a trilateral manner - Belarus, Kazakhstan and Russia, declared the Agreement on the Customs Union. Since 2010, the Unified Customs Tariff has been in operation, and customs control has been moved beyond the borders of the commonwealth. The movement of goods between the three states began to be carried out without customs clearance.

In 2014, to move to a new level of relations, an agreement on the formation of the Eurasian Economic Union was signed. By the time the document came into force in 2015, the Republic of Armenia had expressed a desire to join the Union. Kyrgyzstan was the last to join the alliance.

Within the framework of the agreement, members of the EAEU ensure the free promotion of products, the movement of workers and capital, and coordinate their own policies with the interests of their partners. The leadership of the EAEU is carried out by the Supreme Eurasian Economic Council, composed of the presidents of the member countries. Customs posts between states have been abolished, leaving only border posts.

Features of the customs and tax system of the EAEU

One of the main issues of economic integration is the formation of a single customs space. Trade between the five united countries should not be limited by economic boundaries. Countries included in the EAEU must apply unified customs regulation and a unified customs tariff. They have a general principle of conducting trade relations with countries outside the Union. To regulate relations in the field of foreign trade, a special Eurasian Economic Commission was created. It is competent to control about 170 functions of the Union, among them: tariff regulation, collection of trade statistical reports, organization of sanitary, veterinary and phytosanitary measures, etc.

The EAEU Customs Code was developed on the basis of the practical experience of the Customs Code of the Customs Union and WTO norms. On the territory of the EAEU there is a unified Commodity Nomenclature for Foreign Economic Activity, containing a description and coding of goods. Customs duties on imported goods are uniform in size, valid throughout the Union, but each country has the right to independently establish seasonal duties. Their validity period is 6 months. This type of duty applies to the approved list of goods. In particular, these include oil and oil products, as well as gas exported to third countries.

Customs duties of the EAEU countries are a mandatory payment. It is required by customs authorities for activities necessary for the release and escort of goods. The amount of such fee should not exceed the actual costs of the customs authorities for the actions performed by them.

Taxes on imports from EAEU countries are regulated by several Protocols attached to the Treaty on the EAEU. When importing goods from one of the four partner countries into the Russian Federation, the taxpayer must calculate and pay VAT. In relations with counterparties from the EAEU countries, a special procedure for calculating and paying VAT applies. When determining the amount, the date of receipt of the product for registration is important; the tax base is calculated for it. The tax must be paid by the 20th day of the month following the month in which the imported goods were registered. The entrepreneur enters the calculated VAT into the indirect tax return. If excise taxes are provided for a product, they are levied by the tax authorities of the Russian Federation. The VAT that the importer paid when importing cargo into Russia is deductible.

When exporting goods, a zero VAT rate may be applied if all documents confirming the export are available.

Who benefits from tariff benefits?

Tariff benefits in the EAEU customs union are provided to products from developing and least developed countries. According to the UN definition, the least developed countries include 49 states, most of which are located in Africa. These countries can import products produced or sufficiently processed into their territory at a reduced duty rate of 0%. To receive preferences, they must provide a Form A certificate confirming the origin of the goods. The certificate is valid for one year and is issued in two languages – Russian and English. The list of users of benefits includes: Angola, Bangladesh, Cambodia, Madagascar, Ethiopia and others. 103 developing countries received preferences from the EAEU in the amount of paying 75% of the total customs rate. This long list includes: Vietnam, Egypt, Brazil, India, Iran, North Korea and many others.

The meaning of tariff benefits is to ensure more favorable conditions for competition with goods from developed countries. Based on the Free Trade Agreement, the CIS countries also received preferences. Their representatives must provide a ST-1 certificate of the origin of the goods. The document is issued for one batch of goods, is valid for 12 months, and is filled out in Russian. Serbian products enjoy special benefits; representatives of this country provide an CT-2 certificate.

Procedure for obtaining customs benefits

Persons applying for preferences must undergo several mandatory procedures:

Determine the country of origin of the goods and compare it with the list of countries to which benefits apply.
Checking the correctness of determining the country of origin of the goods. The product must be entirely produced in the country or be subject to sufficient processing.
Determination of the EAEU HS code.
Checking the certificate.

Activities of logistics operators in the EAEU countries

Among the areas of mutually beneficial cooperation, the creation of common transport corridors and systems plays an important role. The Council adopted a number of provisions to ensure the unhindered movement of goods within the territory of the Union.

Features of cargo transportation within the EAEU are the ability to deliver goods by water, rail and road transport using a simplified system. Liberalization of transport activities takes place in several directions:

transit transportation through the territory of partner countries;
between the states in whose territory carrier companies are registered (bilateral agreements);
transportation to third countries.

The integration policy of the Eurasian five made it possible to extend road transport control to the external borders of the commonwealth and carry out the transportation of goods without special permits.

Among the expected changes that could bring practical benefits to carriers is the liberalization of cabotage transportation. It will take place in stages, starting from 2016 to 2024. In the near future, it is planned to allow one cabotage transportation at the time of transit to the state of registration. An integral condition is the completion of the cargo transportation from the country of the Eurasian Union.

News: Customs Code, when to expect changes

The regular emergence of new individual goods and entire groups not included in the Commodity Classification of Foreign Economic Activity requires an early revision and preparation of an updated Customs Code of the EAEU. The process is moving slowly due to disagreements among the member countries of the Union. In addition to this document, a new edition of the Product Nomenclature is being prepared. To ensure its development before January 1, 2017, a temporary moratorium has been introduced on all changes to the Commodity Nomenclature of Foreign Economic Activity.