The new law gives the government the opportunity to temporarily reduce the rates of export customs duties for exports to partner countries, as well as to cancel these duties for goods exported from certain regions of the country.
An export duty is a form of tax or duty levied by the State when goods are exported outside the country. This measure can be used by the Government to regulate foreign trade flows, protect the domestic economy, control resources and ensure financial revenues to the budget.
Export duties can be applied in various ways as fixed rates, a percentage of the value of goods, or a combination of different methods. They can be temporary, permanent, or change depending on the market situation or the strategic goals of the state.
According to the new law, there will now be an initiative providing the government with the opportunity to temporarily reduce export customs duties for up to six months. It will also set tariff quotas for up to one year. These measures provide an opportunity to introduce reduced or zero rates of customs duties on exports of goods to friendly countries within a certain volume. This approach is aimed at stimulating an increase in the supply of a number of goods, such as grain, fertilizers and raw materials, to partner countries.
This new tool also provides the government with the opportunity to support regions where changes in logistics routes have led to increased transport costs. In addition, the law provides support measures for Russian companies that have faced sanctions. Such steps, taken in the context of changes in world trade and global economic dynamics, can help strengthen international relations and stimulate export opportunities for Russian enterprises.
The new law also provides powers to establish a mechanism for monitoring prices of goods and determine methods for distributing part of tariff quotas for imported goods. These additional tools allow the Government to regulate trade flows more flexibly and support specific sectors of the economy strategically.
However, it is also considered important to carefully manage these measures, given their temporary nature, in order to avoid negative consequences for the domestic market and other sectors of the economy. The priority will be to balance export promotion with ensuring internal sustainability and meeting the needs of the national market. In addition, the effectiveness of price monitoring and the allocation of tariff quotas will be a key factor in preventing abuse and ensuring fair competition.