Pentayev A

Pentayev A., postgraduate student of 1year Master’s degree

Faculty of Law

Kazakh National University named after Al-farabi

Republic of Kazakhstan

Difficulties in improving relations in Customs Union

Modern trends of integration of Customs Union member countries are aimed at the further cooperation, including with the countries from far abroad. As a proof can be main priorities of our state identified by our President N. A. Nazarbayev in his address to nation of Kazakhstan on 14^th of Decemer, 2012: “Our priorities are stable – development of cooperation with our neighbour countries – Russia, China, Central Asia countries, and USA, European Union, Asian countries. We will strengthen Customs Union and Common Economic Space. Our nearest goal – is to create Eurasian Economic Union. In doing so, we explicitly claim that the issues will be solved by consensus. Political sovereignity will not be prejudiced”.

In other words, improvement of the relations between countries of Customs Union at the political and economic level is becoming more sustainable and long-term. Based on Customs Union there is now being formed new international organization with the functions associated with the formation of external custom borders, a single foreign policy, unified tariffs and prices and other components of common market. Therefore, interdependence and complementarity in most industry areas of economy requires reviewing of relations in customs domain. [1]

For this purpose the Government of the Republic of Belarus and the Government of Republic of Kazakhstan and the Government of the Russian Federation signed a Treaty on the joint board of customs services of states – members of the Customs Union.[2] According to this treaty in order to coordinate interaction between customs services in member states of Customs Union, to ensure the implementation of the goals and objectives of the Customs Union, uniformity of application of customs legislation and customs regulation on matters falling within the competence of member states of the Customs Union, the Parties establish United board of the customs services of member states of the Customs Union.

The main objectives of the Joint board are:

-coordination of the activities by customs services of the States Parties within the Customs Union;

-taking part in the formation of a single legal base of the Customs Union on matters of customs affairs in part concerning the competence of customs services of States-Parties;

-ensuring the equable application of customs legislation of the Customs Union within its competence;

-ensuring unified organization order of customs clearance and customs control of goods and means of transport at a single customs territory of the Customs Union.

-promoting the implementation of customs politics on a single customs territory of the Customs Union.[3]

There is no doubt that the Customs Union within the Eurasec, which began to operate in the year 2010, was held. However, the functioning of the Customs Union faces a number of serious legal problems, on the solution of which depends further fate of integration processes in the post-soviet space and the establishment of a single economic space. On the whole, the majority of these problems are related to the fact that the national legislation of the member countries of the Customs Union in the area of regulating foreign economic activities are not aligned.

Unification (lat. Uni – one and facere – to do so) – establishing uniformity, bringing to a single form (documents, action, services, etc.)

Unification in law – activity of the competent authorities of the state or a few states, aimed at establishing legal norms, uniformly governing certain types of public relations.[4]

Among the most pressing problems related to the differences in the legislation of member countries of the Customs Union are the following:

1) Saving significant differences in national legislation of member states of the Customs Union. Thus, for instance, differences in the law of administrative offenses affect virtually all aspects of production in the case of administrative offenses; overcoming the differences in national legal systems in the field of legal liability. On 5 July, 2010, member states of the Customs Union signed two important international documents , namely, “The treaty about the features of criminal and administrative responsibility for the breach of customs legislation and the member states of the Customs Union” and “Agreement on legal assistance and cooperation of Customs authorities of member states of the Customs Union on criminal cases and cases of administrative offenses”, they do not contribute any significant changes to the existing legislation of member states of the Customs Union.

2) Inconsistency of Parties in the use of certificates of product origin. It should be noted that an agreement on mutual recognition of product origin certificates by customs authorities of Parties is achieved among these countries and was signed corresponding agreement. Along with this, when the goods “moves” from Kazakhstan to Russia, the carrier must replace Kazakhstan certificate to the Russian. And vice versa. It is necessary to create unified form of certificate, which will be recognised throughout the whole territory of the Customs Union and will allow freighters move freely across borders.

3) “Lack of the unified standardsin the implementation of the external trade policies by countries of the Customs Union. It should be noted that in countries of the Customs Union there are different trade regimes with external partners. Thus, in Russia there are currently about 120 basic trade treaties with third countries, in Kazakhstan – 50, in Belarus – 40, and obligations under those treaties largely do not match. It is therefore important to unite trade regimes of the Customs Union countries with third world.

4) The large problems have been encountered in the work of creating a Single Customs tariff of countries-members of the Customs Union. It is known that building a customs tariff in a given state is complex process and because of a number of circumstances is painful. It is connected to the search for a balance between the interests of national producers and consumers, protection of internal market and creating conditions for rivalry. In broad terms, trade policies, political and economic interests of the state should be taken into account as well as advisability of restriction for importing particular goodsconsidering the increasing fiscal function of the fare.

Undoubtedly, this objective multiply gets complicated when establishing a common customs tariff for different countries in connection with the need to take into account a set of economic interests at the intergovernmental level. The lack of a common customs tariff passed removing internal customs boundaries and transfer of customs control to the external perimeter of the Customs Union.

Integration processes and structural reforms in the Eurasec countries – is inextricably related to each other processes. Therefore, trade links between the countries-members of the Eurasec member states constitute an important tool stabilizing the economic situation and the economic crisis. For finding solutions to a number of existing problems, it was necessary to hold series of activities, aimed at the system unification of national laws of the countries-members of the Customs Union.

In the conclusion it is to be noted that the correct step-by-step legal support for the functioning of the Customs Union would allow it to claim its rightful place in the world economic system, and therefore, have greater prosperity of Kazakhstan.

[1]Address of the President of Republic of Kazakhstan to the nation of Kazakhstan on 14 December, 2012. Strategy “Kazakhstan – 2050.” New political course of established state//official site of the President of Republic of Kazakhstan. – Astana, Akorda, 2012.

[2]An agreement on the joint board of customs services of the Member States of the Customs Union on June 22, 2011

[4] A. Yu. Kozhankov. Unification of customs legislation of the Customs Union with the provisions of the International Convention on the Simplification and Harmonization of Customs Procedures on the example of the rules of the Customs Code of the Customs Union - Institute "cleaning products".