Eurasian Customs Union

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Eurasian Customs Union
An orthographic projection of the world highlighting Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia in green.
Policy of EAEU
Type Customs union
Member states
Establishment 1 January 2010
Area
 •  Total 20,260,431 km2
7,822,596 sq mi
Population
 •  2013 estimate 182,519,270[1][2][3][4][5]
 •  Density 9.01/km2
23.3/sq mi
GDP (PPP) 2013 estimate
 •  Total US$4.064 trillions[6]
 •  Per capita US$22,267
GDP (nominal) 2013 estimate
 •  Total $2.407 trillion (excluding Armenia and Kyrgyzstan)[7]
 •  Per capita US$22,267 (excluding Armenia and Kyrgyzstan)

The Eurasian Customs Union (EACU) is a customs union which consists of all the Member states of the Eurasian Economic Union.

The customs union is a principal task of the Eurasian Economic Community, established in 2000, and now succeeded by the Eurasian Economic Union. No customs are levied on goods travelling within the customs union and—unlike a free trade area—members of the customs union impose a common external tariff on all goods entering the union. One of the consequences of the customs union is that the Eurasian Union negotiates as a single entity in international trade deals such as the World Trade Organisation, instead of individual member states negotiating for themselves.

It came into existence on 1 January 2010. Its founding states were Belarus, Kazakhstan and Russia.[8] On 2 January 2015 it was enlarged to include Armenia. Kyrgyzstan acceded to the EEU on 6 August 2015.[9] The original treaty establishing the Customs Union was terminated by the agreement establishing the Eurasian Economic Union, signed in 2014, which incorporated the Customs Union into the EEU's legal framework.

The member states continued with economic integration and removed all customs borders between each other after July 2011. On 19 November 2011, the member states put together a joint commission on fostering closer economic ties, planning to create a Eurasian Economic Union by 2015.[10][11] On 1 January 2012, the three states formed a single economic space to promote further economic integration.[11][12] The Eurasian Economic Commission is the regulatory agency for the Customs Union and the Eurasian Economic Community.[11]

The creation of the Eurasian Customs Union was guaranteed by 3 different treaties signed in 1995, 1999 and 2007. The first treaty in 1995 guaranteeing its creation, the second in 1999 guaranteeing its formation, and the third in 2007 announced the establishment of a common customs territory and the formation of the customs union.

Overview

Sheremetyevo International Airport, Moscow, Russia. Passengers from Kazakhstan are no longer subject to customs inspections.

Export

  • When exporting goods a zero rated VAT is guaranteed and (or) the exemption (refunds) of excise taxes if sufficient documentary evidence has been provided (proof of export).

Imports

  • Imported goods into the territory of the Russia from the territory of Belarus or Kazakhstan are subject to VAT and excise duties and are levied by the Russian tax authorities.[13]

87.95% of customs import duties come from Russia's budget, 4.7% from Belarus and the remainder from Kazakhstan.[14]

Market access

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See also: Eurasian Conformity mark
Nominal World GDP and GDP of Customs Union of Belarus, Kazakhstan and Russia in 2011.
  European Union: $17.1 trillion (25%)
  United States: $14.8 trillion (22%)
  China: $7.2 trillion (10%)
  Japan: $5.8 trillion (8%)
  Other countries: $22.2 trillion (32%)
  Customs Union of Belarus, Kazakhstan
 and Russia: $2.1 trillion (3%)

Access of products to the single territory of the Customs Union[15] is granted after products have proved to be compliant with the requirements of Customs Union Technical Regulations which are applicable to the product. As of December 2012, 31 Customs Union Technical Regulations have been developed[16] covering different types of products, some of which have already come into force, while others will come into force in the period 2012 – 2015. Some Technical Regulations are being still developed.

Before Technical Regulations come into force, the following approvals are the basis for access to the Customs Union Member Countries:

  • National approvals/certificates – they are good for access of product to the country where this approval/certificate has been issued.
  • Customs Union Certificates/Approvals issued in accordance with the “List of products subject to mandatory conformity approval in the Customs Union” – such Certificate/Approval is valid in all the three Member Countries of the Customs Union.

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See also: GOST
The growth rate of the total turnover of foreign and mutual trade of the Customs Union (growth of the quarter compared to the corresponding period of the previous year). The Common Customs Code was established on July 1, 2010 (blue vertical line). Data source: Eurasian Economic Commission, Department of Statistics[17][18][19][20][21][22][23]

Opinion polling

Beginning in 2012, the Eurasian Development Bank (established by Russia and Kazakhstan) conducts regular opinion polling of selected states with regards to Eurasian integration projects. The following question was asked to the residents of the selected countries, translated from Russian to their native language:

  • "Беларусь, Казахстан и Россия объединились в Таможенный союз, который освободил торговлю между тремя странами от пошлин, и создали Единое экономическое пространство (по сути - единый рынок трех стран). Как Вы относитесь к этому решению?"
  • Unofficial English translation: "Belarus, Kazakhstan, and Russia have united in a Customs Union, which has removed tariffs from their mutual trade, and created a Common Economic Space (essentially - a common market of the three countries). How do you feel about this decision?"

The results for the sum of answers "Favorably" and "Very favorably" are below:[24][25][26]

Country 2012 2013 2014
 Russia 72% 67% 79%
 Belarus 60% 65% 68%
 Kazakhstan 80% 73% 84%
 Armenia 61% 67% 64%
 Kyrgyzstan 67% 72% 50%
 Azerbaijan 38% 37% 22%
 Moldova 65% 54% 49%
 Tajikistan 76% 75% 72%
 Uzbekistan 67% 77% 68%
 Ukraine 57% 50% 31%
 Turkmenistan No data 50% No data
 Georgia 30% 59% 53%

Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia are current members of the Customs Union, noted in blue. Georgia is a non-CIS member state which participated in polling, noted in red. Turkmenistan opted out of polling in 2012 and 2014, but participated in 2013.

According to opinion polls by Razumkov Centre and Sociological group "RATING" Eurasian Customs Union membership in Ukraine was favoured by 22% (Razumkov Centre in June 2014) and 17% ("RATING" in November 2014).[27][28] A February 2015 opinion poll by Kyiv International Institute of Sociology stated that 12% of the polled (Ukrainians) supported joining the Eurasian Customs Union.[29]

Criticism

The United States opposes the Customs Union, claiming it as an attempt to "reestablish a Russian-dominated USSR-type union among the Post-Soviet states".[30]

See also

References

  1. ↑ http://www.gks.ru/bgd/free/B14_00/IssWWW.exe/Stg//%3Cextid%3E/%3Cstoragepath%3E::%7Cdk11/8-0.doc
  2. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  3. ↑ http://belstat.gov.by/ofitsialnaya-statistika/otrasli-statistiki/naselenie/demografiya_2/operativnaya-informatsiya_1/o-demograficheskoi-situatsii-v-yanvare-sentyabre-2014-g/
  4. ↑ http://www.armstat.am/file/doc/99475033.pdf
  5. ↑ http://www.stat.kg/stat.files/din.files/census/Excel/5010003.XLS
  6. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  7. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ Russia, Belarus and Kazakhstan Agree on Customs Union Saturday, 5 December 2009
  9. ↑ Kyrgyzstan and Armenia will officially enter the Eurasian Customs Union that was created by Russia, Belarus and Kazakhstan, on the January 1, 2015., Kyrgyzstan, Armenia officially enter Eurasian Economic Union, 24.kg. Retrieved 11 January 2014.
  10. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  11. ↑ 11.0 11.1 11.2 Ukraine cannot get observer status at Eurasian Econ Union due to Association Agreement with EU, Russia, Interfax-Ukraine (14 June 2013)
  12. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  13. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  14. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  15. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  16. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  17. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  18. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  19. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  20. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  21. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  22. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  23. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  24. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  25. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  26. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  27. ↑ http://censor.net.ua/news/291636/bolee_60_ukraintsev_gotovy_podderjat_vstuplenie_v_evrosoyuz_i_svyshe_40_v_nato_opros
  28. ↑ Assessment of the situation in the East. Foreign policy orientations of the population, Rating (2014/11/20)
  29. ↑ Support for joining EU rises one year after Revolution of Dignity – poll, Interfax-Ukraine (19 March 2015)
  30. ↑ Failed reset?: United States decries “sovietization” of former USSR states

External links

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