AGREEMENT

of October 18, 2011

About the free trade area

The State Parties of the Commonwealth of Independent States which further are referred to as with the Parties

considering need of proper and effective functioning of the free trade area, for the purpose of forming of conditions for free movement of goods,

understanding need of integration into world economy and the international trade system,

being guided by aspiration to permanent increase in level of living of the population of the states,

proceeding from the fact that provisions of this agreement are applied to trade in goods between the Parties

recognizing the commonly accepted rules of international law and being guided by regulations of agreements of the WTO, in particular GATTs 1994, including Article XXIV GATT 1994, agreed as follows:

Article 1 of Determination

1. The concepts used in this Agreement mean the following:

WTO - The World Trade Organization created according to the Agreement on organization of the World Trade Organization signed in Marrakech on April 15, 1994;

GATT of 1994 - The General Agreement on Tariffs and Trade of 1994 containing in Appendix 1A to the Agreement on organization of the World Trade Organization of April 15, 1994;

the payments equivalent to customs duties - the payments levied during the importing or commodity export and also in other cases established by the national legal system of the Party similar on the purposes and economic effect to customs duties which are not customs duties and are not connected by compensation of cost of the rendered services in connection with implementation of procedures of import or export using special protective, anti-dumping, countervailing measures in mutual trade;

commodity import - commodity importation on customs area of the Party without obligation about the return export;

commodity export - commodity exportation from customs area of the Party without obligation about the return import;

re-export - commodity exportation, occurring from customs area of one of the Parties, from customs area of other Party to the third countries;

the authorized re-export - re-export of goods concerning which the Party which is country of source of these goods establishes or keeps customs duties when exporting to the third countries, performed in the presence of properly the drawn-up written permission issued by authorized body of the country of goods' origin;

unauthorized re-export - re-export of goods concerning which the Party which is country of source of these goods establishes or keeps customs duties when exporting to the third countries, performed without properly the drawn-up written permission issued by authorized body of the country of goods' origin.

2. When using in this Agreement of references to the provisions GATTs 1994 or other international agreements signed within the WTO, containing in them the terms "the agreeing party / contracting parties" or "members/members" mean according to the Party/party as they are determined in this Agreement preamble.

Article 2 Application of Customs Duties and Payments, equivalent to customs duties

1. The party does not apply the customs duties and other payments equivalent to customs duties, to the commodity export intended for customs area of other Party, and/or the commodity import happening from customs area of other Party, except as specified, provided in the appendix 1 to this Agreement which is its integral part.

2. The parties do not increase the level of rates of customs duties in mutual trade concerning the goods specified in appendix 1 to this Agreement.

3. If the Party applying export duty according to appendix 1 to this Agreement cancelled it or reduced its level in relation to the third country, then this change is applied in relation to the Parties. This rule is applied without prejudice to provisions of Article 18 of this Agreement.

4. Except as herein otherwise provided, customs duties are not applied thus which would lead to growth of discrimination between the Parties and the third countries.

5. If concerning the goods specified in appendix 1 to this Agreement the mechanism of change of duty rates depending on change of economic, statistical or other indicators, except for customs value of goods is provided, then the Parties do not change such mechanism thus which will lead to increase in level of tariff protection.

6. The state which joined this Agreement does not apply customs duties to the export or commodity import happening from customs areas of other Parties and intended for customs areas of other Parties so that it led to duty rate increase in comparison with that which was applied by the joined state to other Parties on the date of entry into force of this Agreement if other does not follow from procedure for establishment of duty which is used on the date of entry into force of this Agreement.

7. Nothing in this Article interferes with any Party to levy concerning commodity import:

the obligatory payment equivalent according to provisions of Article 5 of this Agreement to the internal tax levied concerning these goods if it is made in the territory of this Party, or goods from which the imported goods were fully or partially made or made, or the payment connected using internal taxes concerning the imported goods according to provisions of Article 5 of this Agreement;

the duty applied according to provisions of Articles 8 and 9 of this Agreement.

8. Nothing in this Article interferes with the Party to levy concerning import or commodity export the charges based on costs of the rendered services and Articles VIII GATTs 1994 applied according to provisions of Item 1.

9. The party does not change methods and procedure for establishment and application of charges, stipulated in Item the 7th this Article so that it led to increase in the amount of collection in comparison with the amount of collection applied by this Party on the date of entry into force of this Agreement without value addition of the rendered services if only such change is not directed to more complete reflection of level of cost of the rendered services.

10. Within 30 days from the effective date of this Agreement of the Party notify each other on charges, stipulated in Item the 8th this Article.

11. If the Party applies the zero or lowered rates of export duties when exporting on customs areas of other Parties in comparison with the rates of duties applied concerning commodity export, the third countries intended for customs areas, such other Parties prohibit unauthorized re-export of these goods.

If such prohibition is not established or actually is not applied, the Party applying the zero or lowered rates of export duties when exporting on customs areas of other Parties has the right to increase them to the level applied when exporting on customs areas of the third countries.

12. The parties within two-way deals can agree with different ways of settlement of the relations, stipulated in Item the 11th this Article, not providing introduction of prohibition on re-export.

13. Within 30 days from the effective date of this Agreement each Party in writing notifies other Parties on goods concerning which export to the third countries customs duties are collected, and also on the sizes of rates (and when it is applicable, the mechanism of calculation of rates) such customs duties.

14. Any changes of the list of the goods specified in Item 13 of this Article and also any changes of the sizes of rates or the mechanism of calculation of rates of the customs duties mentioned in Item 13 of this Article in writing are brought by each Party to the attention of other Parties not later than 30 days before the date of entry into force of such changes.

15. The parties agreed to hold negotiations on decrease and step-by-step cancellation of the export duties specified in appendix 1 to this Agreement. The first round of such negotiations will take place not later than in six months after entry into force of this Agreement. Results of such negotiations are drawn up by protocols.

The article 3 Cancellation of Quantitative Restrictions in mutual trade

1. Any of the Parties does not establish and/or does not keep on import of any goods from the territory of other Party or on export of any goods intended for the territory of other Party, any prohibitions or restrictions except those which are permitted by Article XI GATT 1994, including Explanatory notes to this Article, and also Articles 8 and 9 of this Agreement.

2. The prohibitions and restrictions which are subject to cancellation according to Item 1 of this Article, operating at the time of entry into force of this Agreement are cancelled according to the schedule provided by the appendix 2 to this Agreement which is its integral part.

3. The party setting quantitative restrictions which are allowed according to Item 1 of this Article beforehand informs other Parties on the establishment reasons, forms and possible terms of application of the mentioned restrictions infringing on interests of the Parties with reasons for such action.

4. The parties resolve all issues arising in connection with application of the allowed quantitative restrictions by consultations.

5. In case of the choice of measures according to this Article of the Party give priority to those from them which exert the smallest negative impact on goal achievement of this Agreement.

6. In case of application of quantitative restrictions of the Party observe provisions, stipulated in Article XIII GATTs of 1994.

Article 4 Determination of the Country of Goods' Origin

1. For determination of the country of goods' origin, coming from the Parties and being in business volume between them, the Parties are guided by the Rules of determination of the country of goods' origin which are integral part of the Agreement on Rules of determination of the country of goods' origin in the Commonwealth of Independent States of November 20, 2009.

2. The procedure for determination of the country of goods' origin, the Parties occurring and imported on customs areas from the third countries and the Parties which are exported from customs areas to the third countries, is regulated by the national legal system of the Parties and international treaties which participants they are.

Article 5 National treatment

The parties provide each other national treatment according to Article III GATT 1994.

Article 6 Public procurements

1. Concerning all laws, regulations, procedures and practice concerning public procurements in understanding of Item 8(a) of Article III GATT 1994, to which provisions of Item 3 of this Article extend, each of the Parties provides concerning the goods occurring from the territory of any other Party and their suppliers the mode at least favorable, than that which is provided:

1) to domestic goods and suppliers;

2) to the goods occurring from the territory of any other Party and their suppliers.

2. Provisions of Item 1 of this Article are not applied to the customs duties and other payments equivalent to customs duties levied when importing.

3. Provisions of Item 1 of this Article are applied on two - or multilateral basis between concerned parties.

4. Within three months after entry into force of this Agreement concerned parties will enter negotiations on development of the Protocol to this Agreement determining obligations of the Parties concerning rules and procedures of regulation of the sphere of public procurements for the purpose of their completion in three-year time.

Article 7 Freedom of transit

1. Regulation of transit of goods and vehicles within this Agreement is performed by the Parties according to provisions of Article V GATT 1994.

2. The following conditions are applied to transit of goods and vehicles:

1) the goods moved with transit through the territory of the Party shall at the same time:

a) remain in steady-state condition, except changes owing to natural wear or transportations and storages decreased under normal conditions;

b) not be used in any other purposes, except transit;

c) be brought to customs authority of appointment in the terms established by customs authority of departure proceeding from opportunities of the vehicle transporting goods, the planned route and other conditions of transportation;

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