Customs Union - what is this?

click fraud protection

Customs Union is formed to create a single area, and within it of the customs taxes and economic constraints.Exceptions are countervailing, anti-dumping and protective measures.Customs Union involves the use of a common customs tariff and other measures designed to regulate trade in goods with third countries.

Determination

Customs Union - an association of several of the States Parties to conduct joint activities in the field of customs policy.Also abolished customs duties and the border between the parties, and for other countries introduced a common customs tariff.

history

first such alliance emerged in the nineteenth century, which covered France and Monaco.

In the early twentieth century, concluded the Customs Union - is Switzerland and the Principality of Liechtenstein.You can also cite as an example the conclusion of the twentieth century, the General Agreement on Tariffs and Trade in 1957 was established the European Economic Community, which removes all restrictions on trade between the parties, and created a common customs tariff for trade with third countries.In 1960 it was formed the European Free Trade Association, which abolished customs taxes and quantitative restrictions on trade association members.

in member countries EEC and EFTA are still present differences in customs regulations and duties is not uniform in trade in socialist countries do not have the Customs Union, but agreements involving cooperation and mutual assistance on customs.

were introduced unified documents, methods and forms of cargo clearance as the exhibition and trade fair.Agreements were signed to simplify their registration at customs.These agreements accelerate the movement of goods, strengthen the world market and prevent all kinds of violations.

In 2010, established a single customs union, which includes Russia, Kazakhstan and Belarus.It involves the creation of a single customs territory and provides all control functions.

this year to join the Customs Union of Kyrgyzstan, Russia, while strengthening its position.

adoption of the Customs Union

6 October 2007 was concluded between the Russian Federation, Belarus and Kazakhstan on the transition to a single customs union.

From 1 July 2010, in accordance with the Customs Code became operational on the customs territory of the three countries involved.

eliminated declaration and clearance at customs at the borders of the three states.Goods can move without clearance, which eliminates costs.They move much easier and reduces the cost of shipping goods.

In the future, the Union will arise Common Economic Space (CES) with a working single market services, which in addition to trade includes services and many other areas of activity.

2015 the Customs Union was marked by a new event.Joining another member of the organization is making some changes in geopolitics.A new structure of the organization of the Customs Union (Kyrgyzstan, Russia, Kazakhstan and others) will expand trade relations in the countries of the Customs Union.

General

Customs Union - an association that aims to improve the economic level in the Member States.Created market has more than 180 million people with cash turnover of $ 900 billion.

conclusion of the Customs Union has allowed goods to move freely throughout the territory with the action of universal control.

If exports documented fact, it is not necessary to pay excise duty and VAT zero rate.

In the case of imports to Russia from Kazakhstan and Belarus, the Russian tax authorities levy excise duty and VAT.Customs Union - is an easy and profitable form of interaction.

composition

members Organization CU (Customs Union):

- Russia and Kazakhstan (since 01.07.2010).

- Belarus (from 06.07.2010 years).

- Armenia (from 10.10.2014 years).

- Kyrgyzstan (from 05.08.2015 years).

candidates for membership:

- Tajikistan.

- Syria.

- Tunisia.

entry into the Customs Union of the candidate countries is considered in the near future.Expansion of the organization is able to improve the world market.Sign of the candidate countries of the Customs Union (Tajikistan, Syria, Tunisia) - is the prospect for the more developed countries through the expansion of their positions.

governing bodies

highest governing body - the International Council of Heads of State and Government.Also, according to the agreement established by the Commission of the Customs Union, which is a permanent body of regulation.

supreme bodies of the institution in 2009 conducted comprehensive measures to enable secure the contractual and legal basis of the Customs Union.

By decision of the presidents of the member union was created Economic Commission as a permanent supranational regulatory body control, which is subordinate to the Supreme Eurasian Economic Council.

main advantages

main advantages of the Customs Union for subjects in comparison to the free trade zone are:

  • the Customs Union significantly reduced the costs of creating, processing and movement of goods.
  • costs time and money, arising due to administrative barriers, significantly decreased.
  • number of customs procedures required for the passage of the importation of goods from third countries decreased.
  • became available to new markets for goods.
  • unification of customs legislation led to its simplification.

Customs Union and WTO

During the creation of the Customs Union was expressed many concerns about the contradictions TC regulations with WTO rules.

In 2011, the organization has summed up all of its standards to the full compliance with the norms of the WTO.If the state of the Customs Union will come into the WTO will be prioritized WTO rules.

In 2012, Russia joined the WTO, which led to the renewal of the Common Customs Tariff of the Customs Union countries in accordance with WTO requirements.The level of 90 per cent of import duties remained the same.

Internal conflicts

in November 2014 had banned the import of meat from Belarus to Russia.The volume amounted to 400 thousand tons.However, the Russian side has taken steps to tighten control of goods that cross the border of Belarus, which is contrary to the simplified rules for the carriage of goods, operating in the territory of the Customs Union.

observers noted a good combination of mechanisms of the Customs Union and the mechanism of re-export to Russia banned European goods.For example, fish imports from Belarus, which has no outlet to the sea, to Russia increased by 98 percent.

Belarusian President AGLukashenko was outraged bans Russian side and accused Russia of violating the rules of the Customs Union and disregard for international law.

the mark observers, there is a clause in the rules, according to which in the case of restrictions by Russia on trade and transport of goods Belarusian side has the right not to comply with the terms of the contract.

In 2015, Belarus has returned to the Russian border border control, thus violating the terms of the agreement EAEC.It was also announced the likely refusal of the ruble as a settlement currency and the return of payments in US dollars.Russian experts believe that this situation falls under the blow of regional integration.

Criticism

In 2010, opposition forces attempted to organize a referendum for the denunciation of the agreement.Kazakhstan made a claim of infringement of the sovereign rights.

were also made critical comments of the Customs Union on the following items:

  • ill-defined terms of trade and certification of goods.
  • conditions were imposed by the WTO Russia Kazakhstan and Belarus, which are members of the above organizations are not.
  • revenues and receipts allegedly unfairly distributed among the participating countries.
  • Customs Union as a project unprofitable current and potential participants.

Meanwhile, studies indicate that a number of ideological reasons the Customs Union in varying degrees is beneficial to its participants.

It was also suggested that the Customs Union is a phantom, it is not viable as an artificial political entity.

opinions in society

In 2012, the Centre for Integration Studies under the Eurasian Development Bank conducted a sociological survey.The survey involved the CIS and Georgia.The question was asked: "How do you feel about the fact that the economies of Belarus, Kazakhstan and Russia have united?".Received the following answers to member countries and applying for membership in the customs union:

- Tajikistan: "positive" 76%, "indifferent" 17% "negative" 2%.

- Kazakhstan: "positive" 80% "indifferent" 10% "negative" 5%.

- Russia: "positive" 72%, "indifferent" 17% "negative" 4%.

- Uzbekistan "positively" 67% "indifferent" 14% "negative" 2%.

- Kirgizstan: "positive" 67% "indifferent" 15% "negative" 8%.

- Moldova "positive" 65%, "indifferent" 20% "negative" 7%.

- Armenia: "positive" 61%, "indifferent" 26% "negative" 6%.

- Belarus: "positive" 60%, "indifferent" 28% "negative" 6%.

- Ukraine: "positive" 57%, "indifferent" 31% "negative" 6%.

- Azerbaijan: "positive" 38%, "indifferent" 46% "negative" 11%.

- Georgia: "positive" 30%, "indifferent" 39% "negative" 6%.

Expert Opinions According to the Secretary of the Customs Union Commission Sergei Glazyev, CU is beneficial both in terms of geopolitics, and in terms of economy.This is an important achievement, which gives a lot of indisputable advantages to participating States.

According to the head of Russia Andrei Belyaninov FTF conference in 2009, the Customs Union at the beginning of its operation would create problems of customs business and the authorities, but it is no more than a transitional period.

President of the Republic of Belarus Alexander Lukashenko gives a definition of the Customs Union as a further step to ensure that create a common economic space, which would be the correct form of economic relations between the participating countries.