BELARUS NEWS AND ANALYSIS

DATE:

04/01/2007

Minsk decision on oil transit duty "has no analogues"

MOSCOW, January 4 (Itar-Tass) - Belarus decision to introduce a customs duty on oil transported via the republic's oil trunklines "has no analogues in world practice," said a communique made available to Itar-Tass on Thursday by the press service of the Russian Ministry of Economic Development and Trade (MEDT).

"Duties may be levied only on those commodities which are either produced or consumed on the territory of a country that decides to introduce a duty," the communique specifies.

These measures have been taken by the Belarussian side "without consultations with the Russian side, and, in the opinion of MEDT, they run counter to the current trade and economic agreements between Russia and Belarus".

In particular, the communique points out, "In accordance with the Free Trade Agreement, dated November 13, 1992, between the governments of Russia and Belarus, each Party must ensure an unimpeded transit of commodities that come from the customs territory of the other Party". The sides also undertake "not to apply rules different from those that are applied in similar cases to one's own commodities or commodities originating from third countries to the transportation of goods originating from the other Party."

Another example cited by MEDT is as follows: Under the agreement, dated January 22, 1998, on common terms for transit across the territories of the Customs Union member-states, "transit commodities are exempt from the payment of customs duties, taxes or dues for customs clearing and from the application of economic policy measures to those commodities".

The MEDT expects "an immediate receipt of information from the Belarussian colleagues about a specific timeframe to bring Belarus legislation into line with the existing bilateral trade agreements."

"Limiting the freedom of transit of goods may have a negative effect on the implementation of plans for further integration between the two countries, including plans for the formation of a customs union," the communique emphasizes.

Source:

http://www.itar-tass.com/eng/level2.html?NewsID=11134060&PageNum=0

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