EAEU to grant tariff exemption in respect of small-scale LNG equipment

22.04.2024

Trade

The Eurasian Economic Commission's Council has decided to grant a tariff exemption in the form of exemption from import customs duty in respect of certain types of equipment and parts for the construction, equipping and maintenance of facilities for the manufacture and sale of small-scale liquefied natural gas (LNG). The tariff exemption will be granted for a period of 2 years, subject to confirmation of the intended purpose of the imported goods.

"The decision is aimed at expanding the network of small-scale LNG production facilities, accelerating the pace of regional gasification, and replacing petroleum products used as motor fuel with more environmentally friendly natural gas," noted Andrey Slepnev, EEC Minister in charge of Trade.

He has reminded that the Eurasian Economic Union currently implements measures aimed at increasing the investment attractiveness of projects using small-scale LNG in the internal market and developing the market of natural gas motor fuel (for agricultural and road-building machinery, road, rail and water transport) to ensure the utilization of the gas filling network to a commercially efficient level.

"The primary prerequisites are the presence of a large number of gas fields at a walking distance, which are of no interest for commercial production, as well as the location of a number of potential consumers in hard-to-reach areas or far from gas supply sources. In such cases, the use of small-scale LNG is the optimum solution and will contribute to the social and economic development of the regions, ensure energy security and improve the environmental situation," Andrey Slepnev added.

It is expected that implementing these projects will create several thousand new jobs, given the organization of high-tech production facilities.

The Decision shall come into effect after 30 calendar days have elapsed from the date of its official publication.

The tariff exemption will be granted in respect of products classified under codes 8407 90 900 9, 8418 69 000 8, 8481 10 190 8, 8481 10 990 8, 8481 30 910 8, 8481 30 990 8, 8481 40 100 0, 8481 40 900 9, 8481 80 599 0, 8481 80 639 0, 8481 80 690 0, 8481 80 739 9, 8481 80 790 0, 8481 80 819 9, 8481 80 850 8, 8481 80 870 0, 8481 80 990 7, 8505 11 000 0, 8505 19 900 0, 8505 90 200 9 and 8505 90 900 0 of the CN FEA of the EAEU. The rates of import customs duties of the CCT EAEU on these goods range from 5% to 15%.