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The agreement on functioning of the Customs union within multilateral trade system

of May 19, 2011

The Republic of Belarus, the Republic of Kazakhstan and the Russian Federation which further are referred to as Parties

being members of the Customs union created by them,

confirming aspiration of the Parties to the fastest accession on the coordinated conditions to the World Trade Organization which further is referred to as the WTO

recognizing that membership of each of the Parties in the WTO will create favorable conditions for deepening of their integration into the international trade system and effective functioning of the Customs union according to rules and obligations within the WTO,

confirming need and benefits of unification and uniform application of trade regimes of the Parties concerning the third countries for the purpose of development of trade and investment attraction,

considering universal nature of the WTO on the list of her participants and scope of questions of regulation of international trade,

noting the high requirements to her members established in the WTO concerning compliance to the Marrakesh agreement on WTO organization (further referred to as as the Agreement of the WTO), and also obligations assumed by each member,

recognizing need of interpretation of trade regimes of the Parties of the Customs union in the context of the Agreement of the WTO,

agreed as follows:

Article 1

1. From the date of accession of the either party to the WTO of provision of the Agreement of the WTO as they are determined in the Protocol on the accession of this Party to the WTO including the obligations undertaken as condition of its accession to the WTO and relating to legal relationship which powers on regulation within the Customs union are delegated by the Parties to bodies of the Customs union and to the legal relationship settled by the international agreements constituting the contractual legal base of the Customs union become part of system of law of the Customs union. At the same time the first Party joining the WTO shall inform other Parties and coordinate with them actions concerning adoption of the obligations as condition of its accession requiring modification of system of law of the Customs union.

2. From the moment of accession of such Party to the WTO rates of the Common customs tariff of the Customs union will not exceed the rates of import rate provided by the List of concessions and obligations on access to commodity market which is appendix to the Protocol on accession of this Party to the WTO, except as specified, provided by the Agreement of the WTO.

3. In case of the subsequent accession to the WTO of other Party of its obligation, the accessions to the WTO accepted as condition relating to legal relationship which powers on regulation within the Customs union are delegated by the Parties to bodies of the Customs union and to the legal relationship settled by the international agreements constituting the contractual legal base of the Customs union also become part of system of law of the Customs union. At the same time the Party joining the WTO shall inform other Parties and coordinate with them actions concerning adoption of the obligations as condition of its accession requiring modification of system of law of the Customs union.

4. In case of differences between the consolidated results of negotiations on rates of import duties of the Parties achieved in the course of accession to the WTO, such Parties without delay will hold among themselves consultations and in short time will enter negotiations with members of the WTO whose interests are infringed by such discrepancies, for the purpose of harmonization of rates of import duties. At the same time all Parties coordinate line items and express intention to be guided by relevant provisions of the Agreement of the WTO which are applied in case of harmonization of rates by custom unions.

Rates of the Common customs tariff of the Customs union will not exceed the rates approved as a result of harmonization, except as specified, provided by the Agreement of the WTO.

5. In negotiations on obligations of system nature on the questions entering competence of bodies of the Customs union, each Party which is again joining the WTO aims at forming of such amount of the obligations affecting legal relationship which powers on regulation are delegated by the Parties to bodies of the Customs union, and the legal relationship settled by the international agreements constituting the contractual legal base of the Customs union which as much as possible would correspond to obligations of the Party first which joined WTO. The basic variations from such obligations which are result of negotiations of the Party which is again joining the WTO are subject to discussion and approval by the Parties.

6. Irrespective of provisions of the first and third Items of this Article the Party which is not the member of the WTO has the right to depart from provisions of the Agreement of the WTO, including the obligations assumed by the Party which joined WTO and became part of system of law of the Customs union in part in which the system of law of the Customs union and the solution of its bodies require adjustment according to Article 2, and/or if such legal relationship are autonomous regulated within its national system of law. The party using such departures informs the Commission of the Customs union on nature and amount of such departures, and the Commission of the Customs union publishes these notices. After accession of such Party to the WTO any specified departure will be authorized, only if it is directly provided by conditions of accession of such Party to the WTO.

Article 2

1. The parties will take measures for reduction of system of law of the Customs union and decisions of its bodies in compliance with the Agreement of the WTO as it is fixed in the Protocol on accession of each of the Parties, including obligations of each Party assumed as one of conditions of its accession to the WTO. Before these measures are taken, provisions of the Agreement of the WTO, including obligations assumed by the Parties as conditions of their accession to the WTO have priority over relevant provisions of the international treaties signed within the Customs union, and decisions made by its bodies.

2. The rights and obligations of the Parties following from the Agreement of the WTO as they are determined in Protocols on accession of each of the Parties to the WTO, including obligations, the Part taken as accession condition to the WTO which become part of system of law of the Customs union are not subject to cancellation or restriction on the decision of bodies of the Customs union, including Court of EurAsEC, or the international treaty signed between the Parties.

3. If separate regulations of system of law of the Customs union are more liberal in comparison with the Agreement of the WTO, but do not contradict it, the Parties provide application of such regulations for the purposes of effective functioning of the Customs union and development of international trade.

4. In case of the conclusion of international treaties within the Customs union, acceptance and application of acts of the Customs union by its bodies the Parties provide compliance of such agreements and acts to the Agreement of the WTO.

5. Provisions of this Article will be applied taking into account departures, stipulated in Item the 6th Article 1 of this Agreement.

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