27 january 2011

First Deputy Prime Minister Viktor Zubkov chairs a meeting of the sub-commission on customs tariff and non-tariff regulation and protective measures in foreign trade

Participants:

In a follow-up to the discussion, the sub-commission approved rescheduling the reduction of import duties on crude sugar (from the current $140-270 per tonne to $50-250) from May 1 to March 1 of this year.

The sub-commission approved the suspension, through June 30, of the current 5% import duty on barley, oat, wheat, rye and corn, and 15% duty on onions, carrots and beets. The sub-commission believes duty-free trade will increase imports of these products, help to stabilise consumer prices, and curb inflation.

Mr Zubkov warned that these were temporary measures, and Russian farmers should not reduce the production of the above crops. He ordered the Ministry of Economic Development and the Ministry of Agriculture to monitor these measures and their impact on domestic prices and production, and regularly report to the government commission on food prices.

Last year's soy yield in Russia exceeded a million tonnes. To promote continued growth, the sub-commission deemed it necessary to retain the current 5% soybean meal import duties.

The sub-commission also approved decisions:

- on the introduction of permanent 5% import duties on continuous mining conveyors and portable hydraulic-driven mine supports;

- on the introduction of a permanent 10% import duty on certain metal pads for internal combustion engines;

- on two years' suspension of customs duties on both powered and unpowered railcars used in high-speed service (140-250 kph) (presently, 5% and 10%, respectively);

- to repeal the 10% import duties on digitally-controlled hydraulically-driven vertical rolling machines with a bending force of no less than 15,000 kN and no greater than 22,000 kN.

In conclusion, the sub-commission agreed upon preferential import arrangements for items related to the 22nd Winter Olympics and the 11th Winter Paralympics in Sochi in 2014. The decision complies with Russia's international obligations concerning the 2014 Olympics.

Sub-commission decisions are recommended for consideration by the Customs Union Commission.