Preferential treatment - preferential treatment of foreign economic relations

The government implements a policy within the framework of which foreign economic relations are regulated. It includes various methods and tools. The provision of customs benefits is one of them. They apply to imported goods in some countries. Benefits provide an increase in the influx of products, the production of which is not carried out in the Russian Federation, or it is produced in insufficient volume.

The principle of preferential treatment

The practice of providing benefits began at the end of the last century. Since that time, the concept of "preferential treatment" has been used. It suggests more favorable than usual conditions for products coming from any state. The history of the development of preferences directly relates to the formation of colonies. They formed the basis for the creation of monopolistic systems. It occurred under restriction foreign trade satellite states. The system of customs exemptions was especially widespread in the territories belonging to the Netherlands, Belgium, England and France.

For these states, colonies acted as one of the key sources of profit. Due to the fact that, as a rule, raw materials were exported from dependent territories that were freely sent to most of the markets, and finished goods were sent to the mother countries, the preferential regime was more beneficial for the latter. At the initial stage, thus, the preferential system was used in the framework of interstate relations, in which each country retained its own “tariff identity”, but at the same time stipulated for other exemptions that did not apply to other states. Benefits were provided in the form of full or partial exemption from duties.

Preferential treatment in Russia

The regulation of this institution is carried out in accordance with the Federal Law "On Customs Tariffs". This regulation provides the main provisions for establishing favorable conditions for a number of countries. Due to the provision of benefits, favorable foreign economic relations are formed, the state policy is implemented. Favorable conditions are used in the framework of competition between manufacturers for markets, areas of investment, raw materials.

Normative base

The preferential regime operates on the basis of the Agreement establishing unified rules, which determine the origin of the products of developing countries in the provision of benefits. This document was signed by Czechoslovakia, Poland, the USSR, Hungary and Bulgaria in 1980. In 1993, SCC Directive No. 01-12 / 532 was adopted. In accordance with it, today the procedure for determining the state of origin and applying import tariff rates to them applies to preferential goods. Key provisions regarding the payment of fees and the provision of benefits are defined in Federal Law No. 5003-I.

Characteristic

In accordance with the Federal Law No. 5003-I, the preferential regime provides for special preferential conditions provided by one country to another without spreading to third states. It is implemented by exemption from duties, lowering their rates or by setting quotas for the movement of relevant products. Tariff benefits are provided unilaterally or mutually in the course of the implementation of the state trade policy of the Russian Federation in relation to products moving across the border of the country.They are provided in the form of a refund of a previously paid duty, exemption from it, reduction of the rate or establishment of appropriate quotas. For this system to take effect, a foreign trade contract must be signed. It stipulates the relevant preferential conditions and the rules for their provision.

Products

Tariff preferences are provided in Russia in accordance with Art. 36 Federal Law No. 5003-I. They apply to products:

1. Originating from developing countries, users of the national preferential system of the Russian Federation. Products are taxed at a rate of 75% of the current customs tariff.
2. Originating from least developed countries using the appropriate pattern. Products in this case are exempt from duties.
3. Originating from countries forming a FTA with Russia, the Customs Union, or signatories to their formation.

Specificity

Over the past few years, the preferential system has expanded significantly and become more complicated. A legislative framework has appeared in the Russian Federation to ensure its regulation. Russia has created its own autonomous scheme for providing benefits to developing countries that have signed a foreign trade contract. According to Art. 36 of the above Federal Law, the Government periodically reviews the current scheme. This happens at least 1 time / 5 years. In addition, an annual review of the current system is permitted. In accordance with the government decree, it is carried out on the basis of a motivated submission by the Ministry of Foreign Affairs and the International Economic Relations.

Problems

The current trade policy is characterized by a wide distribution of preferential schemes. They act as the initial stage in the formation of integration associations, contribute to solving various problems. They relate to both economics and politics. The latter often encourages countries to form customs unions and FTZs even when their effectiveness and profitability are not predetermined. For geopolitical reasons, preferential schemes are beginning to be created, which, if they bring the desired result, only in the distant future.

Legal Opportunities

The current GATT / WTO standards, through which regulation of the use of preferential schemes is implemented, are quite strict. They contribute to the exclusion of “sensitive” sectors from preferential systems only for the period of the phased creation of a customs union or FTZ. Its duration usually does not exceed 10 years. If we talk about preferences in relation to developing countries, the legal opportunities in this area of ​​regulation are quite wide. This is due to the fact that the GATT takes the system beyond the scope of the general most-favored-nation obligation.

Improving the national scheme

Making adjustments to the current preferential system is possible solely on the basis of the development of a new model. It must take into account international obligations and international experience. At the same time, a fairly broad interstate coverage should be maintained. When changing the national scheme, it is necessary to clarify the commodity nomenclature, the size and mechanism for providing exemptions and waiver of benefits. Such an approach, according to analysts, will contribute to the subsequent improvement of the current model in Russia. Thus, the preferential regime can become an even more effective regulatory instrument. Moreover, it would be consistent with the provisions of the General System, would take into account the experience of other countries in this area. It is also important to pay attention to the question of the rules for determining the competitiveness of certain types of products of developing countries.