A new customs code which will ultimately determine unified prices and limits for all duty free trade between Armenia, Belarus, Kazakhstan and Russia – and potentially allow duty free arrivals shops – continues to evolve and continues to have the key support of Russian President Vladimir Putin.

 

This follows TRBusiness’ story back in October where it was predicted that this month [December] would see the launch of duty free arrivals shopping in Russia, according to the Eurasia Association of Duty Free (EADF).

 

This was revealed at a dedicated Russian market workshop at the Tax Free World Association show in Cannes last October when EADF Executive Director, Fatima Dzoblaeva addressed a packed meeting room to explain that this new Customs Code ‘would ensure market growth and maintain the increase in non-aeronautical revenue for airports’.

 

In the longer term, this latest new drive anounced in the last few days is now expected to go much further by allowing these nations to establish a common financial trading market by 2025 and immediately reduce the amount of duty free goods circumventing the system by mail. It will also see much greater harmonisation of monetary, foreign exchange and banking operations.

 

A SINGLE MARKET PHILOSOPHY

A single market trading in common price pharmaceuticals and medical products has already been created, with another major goal now aimed at achieving the same for gas, oil and petroleum markets by 2025, alongside universal standard supply and pricing levels for all future electricity supplies between these neighbouring nations.

 

Russian News Agency TASS has confirmed that this new version of the EAEU Customs Code was signed this week by the member state heads of Armenia, Belarus, Kazakhstan and Russia in St Petersburg, although Kyrgyzstan opted out on a technicality for the time being.

 

 

AN ERA OF BIG CHANGE FOR TRADING WITH RUSSIA

This new code has been three years in the making and is expected to come into formal force from 1 July 2017. It is also aimed at modernising and standardising cross border IT systems to communicate with each other much more easily between these states. It also aims to reduce paperwork and unify customs practices between the member countries wherever possible.

 

This latest regulation update will see internet companies face much greater regulation from 2018 with a new value import limit set at €500, above which an effective tax of 30% will be payable by the sender. More significantly, this top ceiling will be lowered again in 2019 from €500 to €200, with a tax penalty of 15% for goods worth more.

 

According to Russia’s official TASS News Agency, favoured trading terms and greater cooperation between the Eurasian Economic Union are seen as top priorities by Putin.

 

He points to its creation as beneficial for all its members as a large ‘common market’, with similar guideline operational principles to those laid down by the World Trade Organisation for general trade between neighbouring states around the globe.

 

For more information on the Russian market workshop presentation made back in Cannes, click here: http://www.trbusiness.com/regional-news/europe/arrivals-shops-set-to-boost-depressed-russian-df/110576