Section VI FUNCTIONING OF THE CUSTOMS UNION

 

Article 25

 

Principles of Functioning of the Customs Union

 

1. Within the Customs Union of the Member States:

 

           an internal market for goods shall be in place;

 

           the Common Customs Tariff of the Eurasian Economic Union and other common measures regulating foreign trade with third parties shall be applied;

 

           a  common  trade  regime  shall  be  applied  to  relations  with  third

 

parties;

 

           Common customs regulations shall be applied;

 

           free movement of goods between the territories of the Member States shall be ensured without the use of customs declarations and state control (transport, sanitary, veterinary-sanitary, phytosanitary quarantine), except as provided for by this Treaty.

 

2. For the purposes of this Treaty, the terms below shall have the following meanings:

 

“import customs duty” means a compulsory payment levied by the customs authorities of the Member States in connection with the importation of goods into the customs territory of the Union;

 

“Single Commodity Nomenclature of Foreign Economic Activity of the

 

Eurasian Economic Union” (CN of FEA EAEU) means the Foreign Economic Activity Commodity Nomenclature based on the Harmonised System of Commodity Description and Coding of the World Customs

 

 

 

Organization and the Common Foreign Economic Activity Commodity Nomenclature of the Commonwealth of Independent States;

 

“Common Customs Tariff of the Eurasian Economic Union” (CCT

 

EAEU) means a set of rates of customs duties applied to the goods imported from third countries into the customs territory of the Union, as classified in accordance with the Single Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union;

 

“tariff preference” means the exemption from import customs duties or reductions of rates of import customs duties on goods originating from the countries included in the free trade space with the Union, or reduction of rates of import customs duties on goods originating from developing countries using the common system of tariff preferences of the Union and|or the least developed countries using the common system of tariff preferences of the Union.

 

 

Article 26

 

Transfer and Distribution of Import Customs Duties (Other Duties, Taxes and Fees Having Equivalent Effect)

 

 

Paid (recovered) import customs duties shall be transferred to and distributed between the budgets of the Member States.

 

The transfer and distribution of import customs duties and their transfer to the budgets of the Member States shall be carried out in the procedure according to Annex 5 to this Treaty.

 

 

 

Article 27

 

Establishing and Functioning of Free (Special)

 

Economic Areas and Free Warehouses

 

 

In order to promote social and economic development of the Member States, promote investments, create and develop production facilities based on new technologies, develop transport infrastructure, tourism and health resort spheres, as well as for other purposes on the territories of the Member States, free (special) economic areas and free warehouses shall be established and shall function.

 

The conditions for the creation and functioning of free (special) economic areas and free warehouses shall be determined under international treaties within the Union.

 

 

Article 28

 

Internal Market

 

 

          The Union shall adopt measures to ensure the functioning of the internal market in accordance with the provisions of this Treaty.

 

          The internal market shall include the economic space with free movement of goods, persons, services and capital ensured under the provisions of this Treaty.

 

          Within the functioning of the internal market, the Member States shall not apply import and export customs duties (other duties, taxes and fees having equivalent effect), non-tariff regulatory measures, safeguard, anti-dumping and countervailing measures in mutual trade, except as provided for by this Treaty.

 

 

 

Article 29

 

Exceptions to the Procedure of Functioning of the Internal Goods Market

 

 

 The Member States shall be entitled to apply restrictions in mutual trade (provided that such measures are not a means of unjustifiable discrimination or a disguised restriction on trade) if required for:

 

1) protection of human life and health;

 

2) protection of public morals and public order;

 

3) environmental protection;

 

4) protection of animals, plants, or cultural values;

 

5) fulfilment of international obligations;

 

6) national defence and security of a Member State.

 

 On the grounds specified in paragraph 1 of this Article, sanitary, veterinary-sanitary and phytosanitary quarantine measures may be applied in the internal market in the procedure determined by Section XI of this Treaty.

 

 On the grounds specified in paragraph 1 of this Article, the turnover of certain categories of goods may be restricted.

 

The procedure of movement or circulation of such goods on the customs territory of the Union shall be determined under this Treaty and international treaties within the Union.