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Support for Yamal LNG project and Equipping of Ambulances with Modern Patient Care Systems: Outcome of the EEC Council on February 16

Support for Yamal LNG project and Equipping of Ambulances with Modern Patient Care Systems: Outcome of the EEC Council on February 16

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2/16/2018

Decisions to extend zero rate of the import customs duty of the Single Customs Tariff of the Eurasian Economic Union (SCT EAEU) of the terephthalic acid and its salts, to authorize duty-free import of equipment for the Yamal LNG project into the territory of the Russian Federation, to amend some technical regulations and regulations on the procedure for implementing  Sanitary and Epidemiological Surveillance were taken at the EEC Council on February 16. In addition, a number of other issues of the integration agenda of the EAEU were discussed. In particular, it was decided that the III International Exhibition Forum “Eurasian Week” will be held in October 2018 in Armenia.

It was decided to exempt a number of goods imported into Russia for the Yamal LNG project from import customs duties. The list approved by the decision of the EEC Council included technological equipment and components (these include tanks for compressed or liquefied gas, pipes, gas turbines, etc.). The decision extends to legal relations occurring since January 1, 2017, taking into account the actual Yamal LNG project start date.

The Yamal LNG project is the construction of an integrated natural gas liquefaction (LNG) complex at the resource base of the Yuzhno-Tambeyskoye field located at the northeast of the Yamal Peninsula. Its implementation involves the supply of unique imported equipment, which analogues are not produced in the territory of the EAEU and which is imported into the Russian Federation in single quantities.

The decision of the EEC Council will significantly reduce costs when importing the necessary equipment, components and spare parts into the customs territory of the EAEU. Moreover, the use of unique equipment and its original spare parts will ensure the industrial and environmental safety of the enterprise and its surrounding ecosystem, the production itself, as well as the fulfillment of Yamal LNG obligations under the treaties signed.

The validity period of zero rate of the import customs duty of the SCT EAEU for terephthalic acid and its salts was extended up to December 31, 2019 included.

Earlier, the rate was reduced from 5% to 0% by the decision of the Council of the Commission for the period from January 1, 2016 up to December 31, 2017 included.

Terephthalic acid (code 2917 36 000 0 according to CN FEA of the EAEU) is a raw material used for the production of polyethylene terephthalate, which in turn is used in the manufacture of preforms for plastic bottles, films and packaging containers in the textile and food industries.
 
The only manufacturer of terephthalic acid within the Union is Polief LLC, located in the Republic of Bashkortostan. The facilities of the enterprise allow producing 270 thousand tons of substance per year. In 2016, the total volume of its consumption in the countries of the Union amounted to about 500 thousand tons. The extension of the validity period of the zero rate of import customs duty will support final producers and increase their competitiveness.

In the coming years, it is planned to increase the production volumes due to the construction of new plants in the Republic of Tatarstan and the Kabardino-Balkaria Republic.

The main consumers of terephthalic acid are Polief OJSC, Sibur-PETF OJSC, Senezh Plant of New Polymers CJSC, Alko-Nafta CJSC, and Mogilevkhimvolokno OJSC.

It was decided to amend the technical regulations of the Customs Union “On the Safety of Wheeled Vehicles” (TR of the CU 018/2011), adopted on December 9, 2011.

The technical requirements for wheeled vehicles have been updated, taking into account the adoption of the new UN Regulations, specifying certain procedures for assessing the conformity of wheeled vehicles, changing the technology transferred for the purpose of eliminating emergencies and the consequences of natural disasters, imposing restrictions on the operation of cars that are not equipped with winter tires or anti-skid devices. In addition, requirements for equipping ambulances with modern patient care systems have been introduced. For example, the cabins of B and C class ambulances should be equipped with a system for supplying medical gases with high-pressure readings and alarms for critical pressures in the system, as well as a trolley for placing the main stretcher on the receiving device.

The changes will take effect in 180 calendar days from the date of their official publication.

Amendments have been introduced to the Regulations on the procedure for the implementation of the state sanitary epidemiological supervision (control) over persons and vehicles crossing the customs border of the EAEU, as well as for goods transported across the customs border of the EAEU and on the customs territory of the EAEU.

The previous version of the regulation did not regulate the rules for the exchange of information between the authorized bodies of the Union’s countries if there are any products that do not comply with the norms of sanitary control. The actions of the authorized authorities were regulated by national legislation, which was not harmonized within the framework of the EAEU.

The adopted version of the regulation clarifies the sequence of actions in determining the inconsistency of goods under control with the Commission’s certificates. The terms are set, and the necessary amount of information is indicated. The document obliges the head of the territorial unit of the control body not only to take measures provided for by national legislation, but also to prohibit the sale of products that do not meet the requirements established in the EAEU. In addition, there is a mandatory requirement to inform the authorized authorities of the Member State of the Union within two business days where the manufacturer of the dangerous goods is located. Information on products that do not comply with the standards and requirements of the EAEU should be the basis for conducting the audit and risk assessment.

The Draft Agreement was approved on the circulation within the EAEU of products, which are not subject to the requirements established by the technical regulations of the Union, and on the rules for ensuring the safety of such products.

The agreement, which includes the best international, European and national practices, establishes two different security mechanisms, one of which is to be used for products that are under the obligatory sphere and for which no unified technical regulations have been introduced yet, the second of which is to be used for products not included in a single list.

The legislation of the Member States establish the responsibility for the release of dangerous products, and, in case of revealing the facts of its treatment, make available the information about it in general information resources of the integrated information system of the Union.

Before signing the draft agreement, it will be sent to the Member States for internal legal procedures that will be held within six months.

A decision was made to hold the III International Exhibition Forum “Eurasian Week” on October 24-26, 2018 in Yerevan, Republic of Armenia.

Each year, the forum is held in one of the countries of the Union. In 2017, it was held in Astana (the Republic of Kazakhstan). Over 2,000 people from 46 countries worldwide attended the event. Some 58% of the total number of participants were business representatives, 24% of them were the representatives of state authorities, 10% were from development institutions, and 5% were journalists. Within the framework of the business program, more than 30 discussion events took place focusing on the most vital topics of the Union’s development. Thanks to the interactive system of appointing meetings, more than 450 negotiations in the B2B format were arranged at the forum’s margins, and 15 cooperation agreements were signed there.