By the end of 2023, pesticide manufacturers of the Eurasian Economic Union (EAEU) have been able to reduce the import customs duty rate to 0% on a number of active components necessary for production. Import of active ingredients (AE) into the common customs territory is allowed without duty, if their intended purpose - for the production of chemical plant protection products (CPP) - is confirmed by the executive authority responsible for the legal regulation of the industrial sector (in Russia, this function is performed by the Ministry of Industry and Trade) . One of the initiators of the zeroing of the duty rate was the Russian Union of Producers of Chemical Plant Protection Products (RSP HSZR). Avgust experts believe that this will help support industry and agriculture, reduce costs and reinvest the funds released in this way in the development of enterprises.
As noted in the RSP HSZR, proposals to amend the unified commodity nomenclature for foreign economic activity of the EAEU in terms of duties on a number of Far East were sent by the Russian Federation in 2021. The relevant decisions of the governing and executive bodies of the Eurasian Economic Commission came into force on January 1, 2022, their validity period is 2 years. Previously, the rate of import duty for most Far East was at the level of 5% of their customs value. Order of the Ministry of Industry and Trade of the Russian Federation No. 5475 "On the organization in the Ministry of Industry and Trade of the Russian Federation of work to confirm the intended use of certain types of organic chemical compounds imported for the production of chemical plant protection products" was issued on December 29, 2021.
Name of DI at a rate of 0%
HS Code | Name |
2909 30 900 1 | oxyfluorfen for the production of plant protection chemicals* |
2909 43 000 1 | ethylene glycol monobutyl ether, or butyl cellosolve for the production of plant protection chemicals* |
2912 50 000 1 | metaldehyde for the production of plant protection chemicals* |
2921 49 000 1 | pendimethalin for the production of plant protection chemicals* |
2923 90 000 1 | chlormequat chloride for the production of plant protection chemicals* |
2924 19 000 1 | dimethyldecanamide, dimethylformamide for the production of plant protection chemicals* |
2928 00 900 1 | cymoxanil for the production of plant protection chemicals* |
2930 90 950 1 | O,O-dimethyl-S-(N-methylcarbamoylmethyl) dithiophosphate, mesotrione, clethodim and malathion for the production of plant protection chemicals* |
2935 90 900 1 | metsulfuron-methyl, tribenuron-methyl, rimsulfuron and florasulam for the production of plant protection chemicals* |
3824 99 930 2 | mancozeb for the production of crop protection chemicals** |
* in accordance with the Decision of the Council of the Eurasian Economic Commission No. 69 dated October 22, 2018
** in accordance with the Decision of the Board of the Eurasian Economic Commission No. 163 of October 16, 2018
The listed active components are not produced on the territory of the Russian Federation. Their main consumers are domestic enterprises that are included in the RSP HSZR.
“Duty-free importation of active ingredients is an important support for domestic pesticide manufacturers, contributing to the development of the production of modern and highly effective plant protection products and increasing their competitiveness in the domestic market both in Russia and in the EAEU. Zero rates of customs duties on key raw materials will make it possible to increase the production of plant protection products in Russia and increase revenues to the budgets of all levels. It will also indirectly contribute to import substitution and increase the supply of domestic farmers with the products necessary for crop production,” notes Vladimir Alginin, Deputy General Director of JSC Firma August for General Issues and Executive Director of the RSP KhSZR.
Zeroing import duties will make it possible to reinvest the released funds in research and development and intangible assets for the further development of industry enterprises on the territory of the EAEU. Analysts of the RSP HSZR estimate the total volume of reinvestment at about 300 million rubles throughout the industry.