Section IX FOREIGN TRADE POLICY
1. General Provisions on Foreign Policy
Article 33
Objectives and Principles of Foreign Trade Policy of the Union
Foreign trade policy of the Union shall promote sustainable economic development of the Member States, economic diversification, innovative development, increase in the volume and improvement in the structure of trade and investment, acceleration of the integration process, as well as further development of the Union as of an efficient and competitive organisation in the global economy.
The basic principles of foreign trade policy of the Union shall be as
follows:
application of measures and mechanisms for the implementation of foreign trade policy of the Union that shall be burdensome for the participants of foreign trade activities of the Member States only to the extent required to ensure effective achievement of objectives of the Union;
publicity in the development, adoption and use of measures and mechanisms for the implementation of foreign trade policy of the Union;
validity and objectivity of measures and mechanisms for the implementation of foreign trade policy of the Union;
protection of the rights and legitimate interests of participants of foreign trade activities of the Member States, as well as the rights and legitimate interests of manufacturers and consumers of goods and services;
respect for the rights of foreign trade participants.
3. Foreign trade policy shall be implemented through the conclusion by the Union, independently or jointly with the Member States, of international treaties with a third party in spheres where Bodies of the Union are entitled to make binding decisions regarding the Member States, participation in international organisations or autonomous application of foreign trade policy measures and mechanisms.
The Union shall be liable for fulfilling its obligations under concluded international treaties and shall exercise its rights under these treaties.
Article 34
Most Favoured Nation Treatment
With regard to foreign trade, most favoured nation treatment shall be applied within the meaning of the General Agreement on Tariffs and Trade of 1994 (GATT 1994) in cases and under the conditions where the use of most favoured nation treatment is provided for by international treaties of the Union with a third party, as well as by international treaties of the Member States with a third party.
Article 35
Free Trade Regime
The free trade regime within the meaning of GATT 1994 shall be applied to trade with a third party on the basis of an international treaty of the Union with such third party subject to the provisions of Article 102 of this Treaty.
The international treaty of the Union with a third party establishing a free trade regime may include other provisions related to foreign trade.
Article 36
Tariff Preferences in Respect of Goods Originating from Developing Countries and|or Least Developed Countries
In order to promote economic development of developing and least developed countries, in accordance with this Treaty, the Union may grant tariff preferences in respect of goods originating from developing countries using the common system of tariff preferences of the Union and|or least developed countries using the common system of tariff preferences of the Union.
In respect of preferential goods imported into the customs territory of the Union and originating from developing countries using the common system of tariff preferences of the Union, the rates of import customs duties shall amount to 75% of rates of the import customs duties of the Common Customs Tariff of the Eurasian Economic Union.
In respect of preferential goods imported into the customs territory of the Union and originating from least developed countries using the common system of tariff preferences of the Union, zero rates of import customs duties
of the Common Customs Tariff of the Eurasian Economic Union shall be
applied.
Article 37
Rules of Origin
On the customs territory of the Union, common rules shall be applied for determining the country of origin of goods imported into the customs territory of the Union.
For the purposes of application of customs tariff regulation (except for the purposes of tariff preferences), non-tariff regulation and protection of the internal market, determining requirements for the labelling of the origin of goods, state (municipal) procurement, and collection of foreign trade statistics, the rules for determining the country of origin of goods imported into the customs territory of the Union (non-preferential rules of origin) shall be applied as determined by the Commission.
For the purposes of providing tariff preferences in respect of goods imported into the customs territory of the Union from developing or least developed countries using the common system of tariff preferences of the Union, the rules for determining the country of origin for goods imported from developing and least developed countries shall be applied as determined by the Commission.
For the purposes of providing tariff preferences in respect of goods imported into the customs territory of the Union from the states in respect of trade and economic relations with which the Union applies the free trade regime, the rules for determining the country of origin shall be used as set out
in the relevant international treaty of the Union with a third party envisaging the application of the free trade regime.
If an international treaty of the Union with a third party envisaging the application of the free trade regime does not set the rules for determining the country of origin or the rules have not yet been adopted at the effective date of the treaty, the rules for determining the country of origin stipulated in paragraph 2 of this Article shall be applied with regard to goods imported into the customs territory of the Union and originating from that country until the appropriate rules are adopted.
In case of repeated violations by a third party of the rules for determining (confirming) the origin of goods, the Commission may decide to monitor by the customs services of the Member States the correct identification (confirmation) of the origin of goods imported from this particular country. In case system violations of the rules for determining (confirming) the origin of goods by a third party are detected, the Commission may decide to suspend acceptance of documents confirming the origin of goods by customs services of the Member States. The provisions of this paragraph shall not limit the powers of the Member States to control the origin of imported goods and to take measures based on its results.
Article 38
Foreign Trade in Services
The Member States shall coordinate trade in services with third parties. This coordination, however, shall not imply any supranational
jurisdiction of the Union in this sphere.
Article 39
Elimination of Restrictive Measures in Trade with Third Parties
The Commission shall render assistance in accessing the markets of third parties, monitor restrictive measures applied by third party in respect of the Member States and, in case of any action by a third party in relation to the Union or trade disputes between the Union and a third party, conduct consultations with the respective third party jointly with the Member States.
Article 40
Response Measures towards a Third Party
If an international treaty of the Union with a third party and|or of the Member States with third parties provides the possibility of any response measures, the decision to impose such measures on the customs territory of the Union shall be adopted by the Commission, including by raising of rates of import customs duties, introduction of quantitative restrictions, temporary suspension of preferences or adoption, within the jurisdiction of the Commission, of other measures affecting the results of foreign trade with the respective state.
In cases provided for by international treaties of the Member States with third parties concluded before January 1, 2015 the Member States may unilaterally apply such response measures as increased import customs duties in excess of the Common Customs Tariff of the Eurasian Economic Union, as well as unilaterally suspend tariff preferences provided that administration mechanisms of such response measures do not violate any provisions of this Treaty.
Article 41
Export Development Measures
In accordance with international treaties, regulations and rules of the World Trade Organisation, the Union may apply joint measures to promote exports of goods originating from the Member States to the markets of third parties.
These joint measures shall include, in particular, insurance and export credits, international leasing, promotion of the concept of “good of the
Eurasian Economic Union”, introduction of a common system of labelling for the Union, exhibition, fair and exposition activities, advertising and branding activities abroad.
2. Customs Tariff Regulation
and Non-Tariff Regulation
Article 42
Common Customs Tariff of the
Eurasian Economic Union
� The Single Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union and the Common Customs Tariff of the Eurasian Economic Union shall be applied on the customs territory of the Union, approved by the Commission and representing the trade policy instruments of the Union.
� The main objectives of the application of the Common Customs Tariff of the Eurasian Economic Union shall be as follows:
1) enabling efficient integration of the Union into the global economy; 2) streamlining the commodity structure for goods imported into the
customs territory of the Union;
ᜀĀᜀĀ maintaining a rational correlation between export and import of goods on the customs territory of the Union;
ᜀĀᜀĀ enabling progressive changes in the structure of production and consumption of goods within the Union;
ᜀĀᜀĀ support for various economy sectors of the Union.
The Common Customs Tariff of the Eurasian Economic Union shall use the following types of import customs duty rates:
1) ad valorem rates expressed as a percentage of the customs value of goods;
2) specific rates determined depending on the physical characteristics in kind of taxable goods (quantity, weight, volume or other characteristics);
3) combined rates having the features of both types specified in sub-paragraphs 1 and 2 of this paragraph.
The rates of import customs duties of the Common Customs Tariff of the Eurasian Economic Union shall be common and shall not be subject to change depending on persons transporting goods across the customs border of the Union, types of transactions and other circumstances, except as provided for in Articles 35, 36 and 43 of this Treaty.
In order to ensure the efficient control over the import of goods into the customs territory of the Union, if necessary, seasonal customs duties may be determined with their validity period not exceeding 6 months per each year and such duties shall be applied instead of import customs duties provided under the Common Customs Tariff of the Eurasian Economic Union.
Any state which has acceded to the Union shall have the right to apply rates of the import customs duties different from the Common Customs
Tariff rates of the Eurasian Economic Union in accordance with the list of goods and rates approved by the Commission pursuant to an international agreement of accession of such state to the Union.
Any state which has acceded to the Union shall ensure that the goods, to which the reduced import customs duty rates (as compared to the Common Customs Tariff of the Eurasian Economic Union) are applied, shall be used only within its territory and shall take measures to prevent exportation of such goods to other Member States without additional payment of import customs duties in the amount of the difference between the import customs duties calculated at the rates of the Common Customs Tariff of the Eurasian Economic Union and the amounts of import customs duties paid at the importation of goods.
Article 43
Tariff exemptions
In respect of goods imported into the customs territory of the Union, tariff exemptions may be applied in the form of exemption from import customs duties or reduced rates of import customs duties.
Tariff exemptions may not be of an individual nature and shall be applied regardless of the country of origin of goods.
Tariff exemptions shall be provided in accordance with Annex 6 to this Treaty.
Article 44
Tariff Quotas
Setting tariff quotas in respect of certain types of agricultural goods originating from third countries and imported into the customs territory of the Union shall be allowed, where like products are produced (mined, grown) on the customs territory of the Union.
Relevant import customs duties of the Common Customs Tariff of the Eurasian Economic Union shall be applied to the goods referred to in paragraph 1 of this Article and imported into the customs territory of the Union within a determined tariff quota volume.
Setting tariff quotas for certain types of agricultural goods originating from third countries and imported into the customs territory of the Union and distribution of tariff quota volumes shall be carried out in the procedure provided for by Annex 6 to this Treaty.
Article 45
Powers of the Commission on
Customs Tariff Regulation
1. The Commission shall:
maintain the Single Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union and the Common Customs Tariff of the Eurasian Economic Union;
determine the rates of import customs duties, including seasonal rates; determine the cases and conditions for granting tariff exemptions;
set out the application procedure for tariff exemptions;
specify the conditions and application procedure for the common system of tariff preferences of the Union and approve:
a list of developing countries using the common system of tariff preferences of the Union;
a list of least developed countries using the common system of tariff preferences of the Union;
a list of goods originating from developing or least developed countries in respect of which tariff preferences are provided during importation into the customs territory of the Union;
set tariff quotas, distribute tariff quota volume between the Member States, specify the method and procedure for the distribution of tariff quota volume among the participants of foreign trade activities and, if necessary, allocate tariff quotas to third countries or adopt an act enabling the Member States to determine the method and procedure for distributing tariff quota volume among the participants of foreign trade activities and, if necessary, to distribute tariff quota volume between third countries.
2. The list of sensitive goods in respect of which the import customs duties may only be changed by decision of the Council of the Commission shall be approved by the Supreme Council.
Article 46
Non-Tariff Regulatory Measures
1. In trade with third countries of the Union, the following common non-tariff regulatory measures shall be applied:
prohibition of import and|or export of goods;
quantitative restrictions on import and|or export of goods;
exclusive right to export and|or import of goods;
automatic licensing (surveillance) of export and|or import of goods;
5) authorisation-based procedure for import and|or export of goods.
2. Non-tariff regulatory measures shall be introduced and applied on the basis of the principles of transparency and non-discrimination in the procedure according to Annex 7 to this Treaty.
Article 47
Unilateral Introduction of
Non-Tariff Regulatory Measures
The Member States, when in trade with third countries, may unilaterally determine and implement non-tariff regulatory measures in the procedure provided for by Annex 7 to this Treaty.
3. Trade remedies
Article 48
General Provisions on Imposition of Trade Remedies
In order to defend economic interests of producers in the Union, trade remedies may be imposed on products originating in third countries and imported into the customs territory of the Union in the form of safeguard, anti-dumping and countervailing measures, and in the form of other measures in cases provided for in Article 50 of this Treaty.
A decision on application, modification, revocation or non-application of a safeguard, anti-dumping or countervailing measure is to be adopted by the Commission.
Safeguards, anti-dumping or countervailing measures shall be applied in accordance with the conditions and procedures set out in Annex 8 to this Treaty.
A safeguard, an anti-dumping or countervailing measure shall be applied pursuant to an investigation conducted by the competent authority designated by the Commission as an authority responsible for the investigation (hereinafter - investigating authority) in accordance with the provisions of Annex 8 to this Treaty.
Safeguard, anti-dumping and countervailing duties shall be transferred and distributed in accordance with Annex 8 to this Treaty.
Article 49
Principles of Application of Safeguard, Anti-dumping and Countervailing
Measures
A safeguard measure may be applied to a product if, pursuant to an investigation, the investigating authority determines that such product is being imported into the customs territory of the Union in such increased quantities (absolute or relative to domestic production of the like or directly competitive product in the Member States), and under such conditions as to cause or threaten to cause serious injury to the domestic industry of the Member States.
An anti-dumping measure may be applied to the product that is considered to be dumped if, pursuant to an investigation, the investigating authority determines that imports of such product into the customs territory of the Union cause or threaten to cause material injury to a domestic industry of the Member States or materially retard the establishment of a domestic industry of the Member States.
A countervailing measure may be applied to an imported product that was granted a specific subsidy from an exporting third country on the
manufacture, production, export or transportation of the product if, pursuant to an investigation, the investigating authority determines that imports of such product into the customs territory of the Union cause or threaten to cause material injury to a domestic industry of the Member States or materially retard the establishment of a domestic industry of the Member States.
9. For the purposes of application of trade remedies the domestic industry of the Member States is understood to mean domestic producers as a whole of the like products (for the purposes of anti-dumping and countervailing duty investigations) or the like or directly competitive products (for the purposes of safeguard investigations) or those of them whose collective output of the products constitutes a major proportion of the total domestic production in the Member States of the like products or like or directly competitive products, respectively, but not less than 25 percent.
Article 50
Other Trade Defence Instruments
To offset negative impact of imports from a Third Party on producers of the Member States an international treaty establishing a free trade regime between the Union and such Third Party may provide for the right to impose bilateral trade defence instruments other than safeguard, anti-dumping and countervailing measures, including measures with respect to agricultural products.
The decision on imposition of such measures is to be adopted by the Commission.