Decision of Interstate Council of the Republic of Belarus, Republic of Kazakhstan, Kyrgyz Republic, Russian Federation and Republic of Tajikistan

of October 26, 1999 No. 50

About realization of free trade regime and measures for forming of single customs area of the State Parties of the Customs union

Interstate Council of the Republic of Belarus, the Republic of Kazakhstan, Kyrgyz Republic, the Russian Federation and the Republic of Tajikistan solved:

1. Take into consideration information on realization of free trade regime and measures for forming of single customs area of the State Parties of the Customs union it (is applied).

3. To the governments of the Parties together with Integration Committee for the purpose of realization of free trade regime in full to take the following measures:

- complete holding the corresponding interstate procedures for the agreements concerning free trade regime;

- handle issue of preparation and signing by the State Parties of the Customs union taking into account accomplishment of obligations by the Republic of Tajikistan on accession to the union of the document on completion of forming of free trade regime in full and its observance between the State Parties of the Customs union.

4. To the governments of the Parties together with Integration Committee to speed up work on completion of forming of single customs area within the Customs union, for this purpose:

4.1. Complete the formation of the General customs tariff.

4.2. Complete development of agreed measures of non-tariff regulation of foreign trade activity concerning the third countries for what to approve:

- inventories to which quantitative restrictions of export and/or import, and procedure for their application are applied;

- inventories to which prohibitions both restrictions of import and/or export, and procedure for entering into these lists of changes and amendments are applied;

- procedure for mutual recognition of licenses, certificates and import permits and/or commodity exportation.

4.3. Develop single procedure for export control and sign the relevant agreement.

4.4. By the end of 2000 to prepare offers on rapprochement of trade regimes of the State Parties of the Customs union concerning the third countries and to carrying out the coordinated trade policy in the relations with the international organizations, and first of all the World Trade Organization.

4.5. Realize the approved mechanism of calculation and collection of indirect taxes by the principle of "country of destination".

4.6. Develop suggestions for improvement of system of the payment and settlement relations during 2000.

4.7. During 2000-2002 to establish single procedure for customs clearance and control on external borders, and also general management system customs affairs.

4.8. Prepare and sign the Protocol between the governments of the State Parties of the Customs union on the approved introduction of withdrawals from free trade regime with the State Parties of the Commonwealth of Independent States which are not entering into the Customs union.

4.9. Prepare the Agreement on procedure for collection and receipt of customs duties, the taxes and fees having equivalent action in the State Parties of the Customs union.

5. To integration Committee together with the governments of the Parties to develop offers on development of trade in services within the Common economic space taking into account the course of negotiation process on accession of the State Parties of the Customs union to the WTO.

6. To the governments of the State Parties of the Customs union to include questions of integration cooperation as priority in the action programs.

7. At the meetings it is regular to Council of Heads of Government and Integration Committee to consider the course of accomplishment of the specified measures.

Appendix

to the Decision of Interstate Council of the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation and the Republic of Tajikistan of October 26, 1999 No. 50

Information to question of realization of free trade regime and measures for forming of single customs area of the State Parties of the Customs union

According to the Agreement on the Customs union and the Common economic space of February 26, 1999 forming of the Customs union as trade and economic consolidation is supposed to be performed in two stages.

At the first stage the State Parties of the Customs Union introduce free trade regime, on the second - take measures for forming of single customs area.

The free trade regime consists in not application of tariff and quantitative restrictions concerning the goods occurring from customs area of one Party, and which are exported (imported) on customs area of other Party and intended for release in free circulation on customs areas of the Parties.

The legal basis of free trade regime are the free-trade agreements signed between the governments of the states of the Customs Union:

Republic of Belarus and Republic of Kazakhstan on September 23, 1997.

Republic of Belarus and Kyrgyz Republic on March 30, 1999.

Republic of Belarus and Russian Federation on November 13, 1992.

Republic of Kazakhstan and Kyrgyz Republic on June 22, 1995.

Republic of Kazakhstan and Russian Federation on October 22, 1992.

Kyrgyz Republic and Russian Federation on October 8, 1992.

In basis of the specified agreements the principles of trade without collection of customs duties, the taxes and fees having equivalent action and also quantitative restrictions are underlain.

Distribution of free trade regime to the Republic of Tajikistan is supposed to be performed after accomplishment of undertaken obligations by it according to the Protocol on stages and deadlines the Republic of Tajikistan of work on accomplishment of conditions of agreements on the Customs Union of January 6 and 20, 1995.

Realization of free trade regime in full within the Customs union at the same time requires acceptance of the following measures:

- completion of holding the corresponding interstate procedures for entry into force of agreements on the questions concerning free trade regime;

- adoptions of national legal acts for the purpose of non-admission of possible administrative, fiscal obstacles for normal functioning of free trade regime, and also possible violations by its states unilaterally.

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