2) to consider, on the proposal of the Council of the Commission, any issues for which no consensus was reached during decision-making in the Council of the Commission;
3) to issue instructions to the Commission;
4) to present candidates for members of the Council and the Board of the Commission to the Supreme Council;
5) to approve the drafts of the Budget of the Union, the Regulation on the Budget of the Eurasian Economic Union and the report on implementation of the Budget of the Union;
6) to approve the Regulation on the audit of financial and economic activity of the Eurasian Economic Union’s Bodies, standards and methodology for conducting audits of financial and economic activities of the Bodies of the Union, to decide on the execution of audits of financial and economic activities of the Bodies of the Union and to determine their time periods;
7) to consider, when proposed by a Member State, any issues relating to the cancellation or amendment of a decision issued by the Commission, or, in case no agreement is reached, to refer them to the Supreme Council;
8) to decide on suspension of decisions of the Council or the Board of the Commission;
9) to approve the procedure for verifying authenticity and completeness of information on the income, property and property obligations of members of the Board of the Commission, officials and employees of the Commission and their family members;
10)to exercise other powers provided for by this Treaty and international treaties within the Union.
Article 17. Decisions and Dispositions of the Intergovernmental Council
1.The Intergovernmental Council shall issue decisions and dispositions.
2. Decisions and dispositions of the Intergovernmental Council shall be adopted by consensus.
Article 18. Commission
1. The Commission shall be a permanent governing Body of the Union. The Commission shall consist of a Council and a Board.
2.The Commission shall issue decisions, dispositions and recommendations.
Decisions, dispositions and recommendations of the Council of the Commission shall be taken by consensus.
Decisions, dispositions and recommendations of the Board of the Commission shall be taken by a qualified majority or consensus.
The Supreme Council shall compile a list of sensitive issues to be resolved by the Board of the Commission by consensus.
In this case, a two-thirds qualified majority of votes of all members of the Board of the Commission shall be required.
3. The status, tasks, composition, functions, powers and procedures of the Commission shall be determined in accordance with Annex 1 to this Treaty.
4. The place of stay of the Commission shall be the city of Moscow, Russian Federation.
Article 19. The Court of the Union
1. The Court of the Union shall be a permanent judicial Body of the Union.
2.The status, composition, jurisdiction, functioning and formation procedures of the Court of the Union shall be determined by the Statute of the Court of the Eurasian Economic Union in accordance with Annex 2 to this Treaty.
3. The place of stay of the Court of the Union shall be the city of Minsk, Belarus.
Section IV. THE BUDGET OF THE UNION
Article 20. The Budget of the Union
1. Activities of the Bodies of the Union shall be funded from the Budget of the Union to be formed in the procedure determined by the Regulation on the Budget of the Eurasian Economic Union.
The Budget of the Union for the next fiscal year shall be compiled in Russian roubles using assessed contributions by the Member States. The amount (scale) of a contribution of each Member State to the budget of the Union shall be determined by the Supreme Council.
The Budget of the Union shall be balanced in terms of income and expenditures. The fiscal year shall begin on January, 1 and end on December, 31 .
2. The Budget of the Union and the Regulation on the Budget of the Eurasian Economic Union shall be approved by the Supreme Council.
Any amendments to the Budget of the Union and the Regulation on the Budget of the Eurasian Economic Union shall be introduced by the Supreme Council.
Article 21. Audit of Financial and Economic Activities of the Bodies of the Union
In order to oversee the implementation of the Budget of the Union, financial and economic activities of the Bodies of the Union shall be audited at least once every 2 years.
Inspections regarding any specific issues of financial and economic activities of the Bodies of the Union may be conducted on the initiative of any Member State.
Audit of financial and economic activities of the Bodies of the Union shall be performed by an audit group consisting of representatives of state financial authorities of the Member States.
Results of the audit of financial and economic activities of the Bodies of the Union shall be referred in the determined procedure for consideration to the Intergovernmental Council.
Article 22. External Audit (Control)
External audit (control) shall be carried out in order to determine the efficiency of the formation, management and disposal of the funds of the budget of the Union and the efficiency of the use of its property and other assets. External audit (control) shall be conducted by a group of inspectors consisting of representatives of supreme state financial authorities of the Member States. Standards and methodology of external audit (control) shall be jointly determined by supreme state financial authorities of the Member States.
Results of external audit (control) in the Bodies of the Union shall be referred in the determined procedure for consideration to the Supreme Council.
Part TWO. CUSTOMS UNION
Section V. INFORMATION EXCHANGE AND STATISTICS
Article 23. Information Exchange Within the Union
1. In order to ensure information support for the integration processes in all spheres affecting the functioning of the Union, measures shall be developed and implemented aimed at ensuring the information exchange using information and communication technologies and the transboundary space of trust within the Union.
2.In the implementation of common processes within the Union, information exchange shall be carried out using an integrated information system of the Union supporting the integration of geographically distributed state information resources and information systems of the authorised authorities, as well as information resources and information systems of the Commission.
3. In order to ensure efficient cooperation and coordination of public information resources and information systems, the Member States shall conduct agreed policy in the field of electronic communication development and information technologies.
4.When using soft hardware and information technologies, the Member States shall ensure the protection of intellectual property used or received in the communication process.
5.The fundamental principles of information exchange and its coordination within the Union, as well as the procedures for the creation and development of an integrated information system shall be determined in accordance with Annex 3 to this Treaty.
Article 24. Official Statistics of the Union
1. In order to ensure efficient functioning and development of the Union, official statistics of the Union shall be collected.
2. The official statistics of the Union shall be compiled in accordance with the following principles:
1) professional independence;
2) scientific validity and comparability;
3) completeness and accuracy;
4) relevance and timeliness;
5) transparency and accessibility;
6) cost-effectiveness;
7) statistical confidentiality.
3. The procedure for compilation and dissemination of official statistics of the Union shall be determined in accordance with Annex 4 to this Treaty.
Section VI. FUNCTIONING OF THE CUSTOMS UNION
Article 25. Principles of Functioning of the Customs Union
1. Within the Customs Union of the Member States:
1) an internal market for goods shall be in place;
2) the Common Customs Tariff of the Eurasian Economic Union and other common measures regulating foreign trade with third parties shall be
applied;
3) a common trade regime shall be applied to relations with third parties;
4) Common customs regulations shall be applied;
5) free movement of goods between the territories of the Member States shall be ensured without the use of customs declarations and state control (transport, sanitary, veterinary-sanitary, phytosanitary quarantine), except as provided for by this Treaty.
2. For the purposes of this Treaty, the terms below shall have the following meanings:
“import customs duty” means a compulsory payment levied by the customs authorities of the Member States in connection with the importation of goods into the customs territory of the Union;
“Single Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union” (CN of FEA EAEU) means the Foreign Economic Activity Commodity Nomenclature based on the Harmonised System of Commodity Description and Coding of the World Customs Organization and the Common Foreign Economic Activity Commodity Nomenclature of the Commonwealth of Independent States;
“Common Customs Tariff of the Eurasian Economic Union” (CCT EAEU) means a set of rates of customs duties applied to the goods imported from third countries into the customs territory of the Union, as classified in accordance with the Single Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union;
“tariff preference” means the exemption from import customs duties or reductions of rates of import customs duties on goods originating from the countries included in the free trade space with the Union, or reduction of rates of import customs duties on goods originating from developing countries using the common system of tariff preferences of the Union and/or the least developed countries using the common system of tariff preferences of the Union.
Article 26. Transfer and Distribution of Import Customs Duties (other Duties, Taxes and Fees Having Equivalent Effect)
Paid (recovered) import customs duties shall be transferred to and distributed between the budgets of the Member States.
The transfer and distribution of import customs duties and their transfer to the budgets of the Member States shall be carried out in the procedure according to Annex 5 to this Treaty.
Article 27. Establishing and Functioning of Free (Special) Economic Areas and Free Warehouses
In order to promote social and economic development of the Member States, promote investments, create and develop production facilities based on new technologies, develop transport infrastructure, tourism and health resort spheres, as well as for other purposes on the territories of the Member States, free (special) economic areas and free warehouses shall be established and shall function.
The conditions for the creation and functioning of free (special) economic areas and free warehouses shall be determined under international treaties within the Union.
Article 28. Internal Market
1. The Union shall adopt measures to ensure the functioning of the internal market in accordance with the provisions of this Treaty.
2. The internal market shall include the economic space with free movement of goods, persons, services and capital ensured under the provisions of this Treaty.
3. Within the functioning of the internal market, the Member States shall not apply import and export customs duties (other duties, taxes and fees having equivalent effect), non-tariff regulatory measures, safeguard, anti- dumping and countervailing measures in mutual trade, except as provided for by this Treaty.
Article 29. Exceptions to the Procedure of Functioning of the Internal Goods Market
1. The Member States shall be entitled to apply restrictions in mutual trade (provided that such measures are not a means of unjustifiable discrimination or a disguised restriction on trade) if required for:
1) protection of human life and health;
2) protection of public morals and public order;
3) environmental protection;
4) protection of animals, plants, or cultural values;
5) fulfilment of international obligations;
6) national defence and security of a Member State.
2. On the grounds specified in paragraph 1 of this Article, sanitary,
veterinary-sanitary and phytosanitary quarantine measures may be applied in the internal market in the procedure determined by Section XI of this Treaty.
3. On the grounds specified in paragraph 1 of this Article, the turnover of certain categories of goods may be restricted.
The procedure of movement or circulation of such goods on the customs territory of the Union shall be determined under this Treaty and international treaties within the Union.
Section VII. REGULATION ON CIRCULATION OF MEDICINES AND MEDICAL PRODUCTS
Article 30. Establishing a Common Market of Medicines
1. The Member States shall establish a common market of medicines within the Union in compliance with the relevant standards of good pharmacy practice based on the following principles:
1) harmonisation and unification of the legislation of the Member States in the sphere of circulation of medicines;
2) ensuring the uniformity of mandatory requirements for the quality, effectiveness and safety of circulation of medicines on the territory of the Union;
3) adoption of common rules in the sphere of circulation of medicines;
4) development and application of identical or comparable research and monitoring methods to assess the quality, effectiveness and safety of medicines;
5) harmonisation of the legislation of the Member States in the field of control (supervision) over circulation of medicines;
6) exercising licensing and supervisory functions in the sphere of circulation of medicines by the relevant authorised authorities of the Member States.
2. The common market of medicines shall function within the Union in accordance with an international treaty within the Union subject to the provisions of Article 100 of this Treaty.
Article 31. Establishing a Common Market of Medical Products (medical Devices and Equipment)
1. The Member States shall establish a common market of medical products (medical devices and equipment) within the Union based on the following principles:
1) harmonisation of the legislation of the Member States in the sphere of circulation of medical products (medical devices and equipment);
2) ensuring the uniformity of mandatory requirements for the efficiency and safety of circulation of medical products (medical devices and equipment) on the territory of the Union;
3) adoption of common rules in the sphere of circulation of medical products (medical devices and equipment);
4) establishment of common approaches for the creation of a quality assurance system for medical products (medical devices and equipment);
5) harmonisation of the legislation of the Member States in the field of control (supervision) in the sphere of circulation of medical products (medical devices and equipment).
2. The common market of medical products (medical devices and equipment) shall function within the Union in accordance with an international treaty within the Union subject to the provisions of Article 100 of this Treaty.
Section VIII. CUSTOMS REGULATIONS
Article 32. Customs Regulations In the Union
The Union shall apply Common customs regulations in accordance with the Customs Code of the Eurasian Economic Union, international treaties and acts constituting the law of the Union and governing customs legal relations, and in accordance with the provisions of this Treaty.
Section IX. FOREIGN TRADE POLICY
1. General Provisions on Foreign Policy
Article 33. Objectives and Principles of Foreign Trade Policy of the Union
1.Foreign trade policy of the Union shall promote sustainable economic development of the Member States, economic diversification, innovative development, increase in the volume and improvement in the structure of trade and investment, acceleration of the integration process, as well as further development of the Union as of an efficient and competitive organisation in the global economy.
2. The basic principles of foreign trade policy of the Union shall be as follows:
application of measures and mechanisms for the implementation of foreign trade policy of the Union that shall be burdensome for the participants of foreign trade activities of the Member States only to the extent required to ensure effective achievement of objectives of the Union;
publicity in the development, adoption and use of measures and mechanisms for the implementation of foreign trade policy of the Union;
validity and objectivity of measures and mechanisms for the implementation of foreign trade policy of the Union;
protection of the rights and legitimate interests of participants of foreign trade activities of the Member States, as well as the rights and legitimate interests of manufacturers and consumers of goods and services;
respect for the rights of foreign trade participants.
3. Foreign trade policy shall be implemented through the conclusion by the Union, independently or jointly with the Member States, of international treaties with a third party in spheres where Bodies of the Union are entitled to make binding decisions regarding the Member States, participation in international organisations or autonomous application of foreign trade policy measures and mechanisms.
The Union shall be liable for fulfilling its obligations under concluded international treaties and shall exercise its rights under these treaties.
Article 34. Most Favoured Nation Treatment
With regard to foreign trade, most favoured nation treatment shall be applied within the meaning of the General Agreement on Tariffs and Trade of 1994 (GATT 1994) in cases and under the conditions where the use of most favoured nation treatment is provided for by international treaties of the Union with a third party, as well as by international treaties of the Member States with a third party.
Article 35. Free Trade Regime
The free trade regime within the meaning of GATT 1994 shall be applied to trade with a third party on the basis of an international treaty of the Union with such third party subject to the provisions of Article 102 of this Treaty.
The international treaty of the Union with a third party establishing a free trade regime may include other provisions related to foreign trade.
Article 36. Tariff Preferences In Respect of Goods Originating from Developing Countries and/or Least Developed Countries
1. In order to promote economic development of developing and least developed countries, in accordance with this Treaty, the Union may grant tariff preferences in respect of goods originating from developing countries using the common system of tariff preferences of the Union and/or least developed countries using the common system of tariff preferences of the Union.
2. In respect of preferential goods imported into the customs territory of the Union and originating from developing countries using the common system of tariff preferences of the Union, the rates of import customs duties shall amount to 75% of rates of the import customs duties of the Common Customs Tariff of the Eurasian Economic Union.
3. In respect of preferential goods imported into the customs territory of the Union and originating from least developed countries using the common system of tariff preferences of the Union, zero rates of import customs duties of the Common Customs Tariff of the Eurasian Economic Union shall be applied.
Article 37. Rules of Origin
1. On the customs territory of the Union, common rules shall be applied for determining the country of origin of goods imported into the customs territory of the Union.
2. For the purposes of application of customs tariff regulation (except for the purposes of tariff preferences), non-tariff regulation and protection of the internal market, determining requirements for the labelling of the origin of goods, state (municipal) procurement, and collection of foreign trade statistics, the rules for determining the country of origin of goods imported into the customs territory of the Union (non-preferential rules of origin) shall be applied as determined by the Commission.
3. For the purposes of providing tariff preferences in respect of goods imported into the customs territory of the Union from developing or least developed countries using the common system of tariff preferences of the Union, the rules for determining the country of origin for goods imported from developing and least developed countries shall be applied as determined by the Commission.
4. For the purposes of providing tariff preferences in respect of goods imported into the customs territory of the Union from the states in respect of trade and economic relations with which the Union applies the free trade regime, the rules for determining the country of origin shall be used as set out in the relevant international treaty of the Union with a third party envisaging the application of the free trade regime.
5. If an international treaty of the Union with a third party envisaging the application of the free trade regime does not set the rules for determining the country of origin or the rules have not yet been adopted at the effective date of the treaty, the rules for determining the country of origin stipulated in paragraph 2 of this Article shall be applied with regard to goods imported into the customs territory of the Union and originating from that country until the appropriate rules are adopted.
6. In case of repeated violations by a third party of the rules for determining (confirming) the origin of goods, the Commission may decide to monitor by the customs services of the Member States the correct identification (confirmation) of the origin of goods imported from this particular country. In case system violations of the rules for determining (confirming) the origin of goods by a third party are detected, the Commission may decide to suspend acceptance of documents confirming the origin of goods by customs services of the Member States. The provisions of this paragraph shall not limit the powers of the Member States to control the origin of imported goods and to take measures based on its results.
Article 38. Foreign Trade In Services
The Member States shall coordinate trade in services with third parties.
This coordination, however, shall not imply any supranational jurisdiction of the Union in this sphere.
Article 39. Elimination of Restrictive Measures In Trade with Third Parties
The Commission shall render assistance in accessing the markets of third parties, monitor restrictive measures applied by third party in respect of the Member States and, in case of any action by a third party in relation to the Union or trade disputes between the Union and a third party, conduct consultations with the respective third party jointly with the Member States.
Article 40. Response Measures Towards a Third Party
1. If an international treaty of the Union with a third party and/or of the Member States with third parties provides the possibility of any response measures, the decision to impose such measures on the customs territory of the Union shall be adopted by the Commission, including by raising of rates of import customs duties, introduction of quantitative restrictions, temporary suspension of preferences or adoption, within the jurisdiction of the Commission, of other measures affecting the results of foreign trade with the respective state.
2. In cases provided for by international treaties of the Member States with third parties concluded before January 1, 2015 the Member States may unilaterally apply such response measures as increased import customs duties in excess of the Common Customs Tariff of the Eurasian Economic Union, as well as unilaterally suspend tariff preferences provided that administration mechanisms of such response measures do not violate any provisions of this Treaty.
Article 41. Export Development Measures
In accordance with international treaties, regulations and rules of the World Trade Organisation, the Union may apply joint measures to promote exports of goods originating from the Member States to the markets of third parties.
These joint measures shall include, in particular, insurance and export credits, international leasing, promotion of the concept of “good of the Eurasian Economic Union”, introduction of a common system of labelling for the Union, exhibition, fair and exposition activities, advertising and branding activities abroad.
2. Customs Tariff Regulation and Non-Tariff Regulation
Article 42. Common Customs Tariff of the Eurasian Economic Union
1. The Single Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union and the Common Customs Tariff of the Eurasian Economic Union shall be applied on the customs territory of the Union, approved by the Commission and representing the trade policy instruments of the Union.
2. The main objectives of the application of the Common Customs Tariff of the Eurasian Economic Union shall be as follows:
1) enabling efficient integration of the Union into the global economy;
2) streamlining the commodity structure for goods imported into the customs territory of the Union;
3) maintaining a rational correlation between export and import of goods on the customs territory of the Union;
4) enabling progressive changes in the structure of production and consumption of goods within the Union;
5) support for various economy sectors of the Union.
3. The Common Customs Tariff of the Eurasian Economic Union shall use the following types of import customs duty rates: