1. The experience of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation in establishing a Customs Union May 4, 2011, Geneva 1

2. 2 Abolition of customs duties and other restrictive measures in trade in goods originating from the territory of the member- states of the Customs Union Free movement of: Goods Services Capitals Labor Free Trade Regime Customs Union Single Economic Area Creation of Single Customs Territory, within which free movement is provided for the goods either originating from its territory or imported from the third countries that have entered into free circulation Upon the completion of all the formalities Belarus Kazakhstan Kyrgyzstan Russia Tajikistan Upon the completion of all the formalities

3. 1.Formation of the legislative base of the Customs Union (2007) 2.Formation of the Common External Tariff (2008-2009) 3.Formation of the institutional structure of the Customs Union (2007-2009) 4.Implementation of the international agreements forming the legislative base of the Customs Union (2008-2010) 5.Harmonization of the Customs legislation (2008-2010) 6.Harmonization of trade regimes with third countries (2007- and further) 7.Creation of the Single Customs Territory (2007-2010) Plan of Actions on Formation of the Customs Union

4. 2007-2008 7 meetings at the level of Heads of State and Government 2010 4 meetings at the level of Heads of State and Government 2009 6 meetings at the level of Heads of State and Government 2011 1 meeting at the level of Heads of Government Formation of the Legislative Basis of the Customs Union

5. 5 According to the results of the negotiations on the Common External Tariff (CET) average import customs fees of Kazakhstan and Russia have been changed as follows: KazakhstanRussiaCET Average level 6,2%10,6% On non-agricultural goods 4,6%9,4%8,5% On agricultural goods 12,1%15,1%16,7% Common Customs and Tariff Regulation

6. 6 In order to support young local manufacturers Kazakhstan has maintained transition periods (4-5 years) for applied import tariffs on those goods which are necessary as raw materials or equipment for local productions (f.e. production of pharmaceuticals and medical equipment, investment project on petrochemical plant) Common Customs and Tariff Regulation ProductTransition period Applied KZ tariff CET Pharmaceuticals5 years0%10-15% Medical equipment4 years0%10-15% Separate products of Aluminum (wire, bars,slabs, fittings)1,5 years0-5%20% Aluminum foil3 years0%20% Railway cars3 years0%10% Raw materials for chemical industry, polymers4 years0%10% Cellulose4 years0%5-10% Carbon paper4 years5%15% Pneumatic tools3 years0%10% Electric magnets and fuses3 years0%15% Greenhouses3 years0%20%

7. Current trade procedures analysisNegotiations with the third countries Common trade procedures of the Customs Union Establishing of the Customs Union Bilateral Treaties with the third countries Russia – 130 Kazakhstan – 50 Belarus – 40 (non-market status) – It is necessary to maintain the current trade procedures of Russian Federation with primary trade partners for the period before conclusion of new treaties on behalf of the CU Common trade procedures of the Customs Union Implementation of the procedure of common trade with third countries The Customs Code of the Customs Union International Convention on Simplification and Harmonization of Customs Procedures (Kyoto Convention) Group of experts from the Customs Services of Belarus, Kazakhstan and Russia Adoption of the Customs Code Amending the Legislation of the Member States of the Customs Code Bringing the Customs Code of the Customs Union into force November 2009 January-May 2010 1 July 2010 Customs Code mutual administrative assistance common rules for goods declaration common customs procedures common methodology of customs value definition common rules of assessment and collection of customs duties common rules for customs control

8. 8 Customs Union Administration Interstate Council EurAsEC (Supreme Body of the Customs Union) Heads of State and Government Level EurAsECCourt State Executive Authorities Secretariat of the Commission of the Customs Union Commission of the Customs Union Deputy Heads of Government Dispute settlement Decisions on the Customs Union Development Strategy (decisions – consensus) Decisions on the Customs Union Development Strategy (decisions – consensus) Regulating Body of the Customs Union (decisions – 2/3 of votes or consensus ) Regulating Body of the Customs Union (decisions – 2/3 of votes or consensus ) Russia – 57% Kazakhstan –21,5% Belarus – 21,5% Votes Distribution Execution of Decisions Provides Support to the Commission’s Activities Common Regulating Body

9. 9 01/01/2010 Introduction of common customs-tariff and non-tariff treatment 01/04/2010 Testing the import customs duties accounting and assessment mechanism 06/07/2010 Bringing the Customs Code of the Customs Union into effect Transfer of the control to the external border of the Republic of Belarus Introduction of import customs duties and excise accounting and assessment mechanism Abolition of customs clearance of goods originating from the Republic of Belarus, the Republic of Kazakhstan, and the Russian Federation 01/07/2011 Transfer of Customs control to the external border of the Republic of Kazakhstan Single Customs Territory Development Stages

10. Components of the Customs Union Common Customs and Tariff Regulation Common Customs and Tariff Regulation Common Trade Regime in Relations with Third Countries Common Trade Regime in Relations with Third Countries Imposition of Safeguards, Antidumping and Countervailing Measures Imposition of Safeguards, Antidumping and Countervailing Measures Common Non-Tariff Regulation towards Third Countries Common Non-Tariff Regulation towards Third Countries Harmonization of Customs Legislation Harmonization of Customs Legislation Common Regulating Body (Commission) Common Regulating Body (Commission) Dispute Settlement Body Single Customs Territory Single Customs Territory