The Ministry of Economy proposed to reduce duties on exports to friendly countries

The Ministry of Economy has developed amendments that allow the government to temporarily reduce export customs duties for exports to “friendly countries” and zero rates for exports of goods from certain regions of Russia. As reported RBC in the press service of the department, on July 17, the initiative was approved by the commission on legislative activity.

The draft law assumes that, on behalf of the president, the government can set export customs duty rates that differ from the base ones for a maximum period of six months. It is argued that the measure can contribute to “economic development and strengthening ties with states.”

The explanatory note states that the reduction of duties is permissible in relation to countries with which “trade, economic and political cooperation is intensively developing.” The authors point to the possibility of “fine tuning” of exports within the Eurasian Economic Union (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan).

In addition, the Ministry of Economy proposes to establish tariff quotas for a period of not more than a year for the export of goods that are produced in certain regions of Russia. We are talking about those regions in which there are “restrictive measures in connection with the unfriendly measures of certain foreign states” or remote from sales markets, centers for storage and processing of products. Quotas imply a reduced or zero customs duty rate. The bill is expected to be submitted to the State Duma soon.