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 KAZAKHSTAN International Business Magazine №2, 2003
 Barriers for International Road Haulage in the EurAzEC Member States
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Barriers for International Road Haulage in the EurAzEC Member States
 
This is an analytical report on the barriers for international road transportation in the EurAzEC member states that cannot be removed solely by their government authorities responsible for transportation. This document was drafted by the Integration Committee Secretariat and further elaborated by the Working Group on Coordination of the Policy for Development of Transportation Corridors (June 2003). It received approval at the 4th Session of the Transportation Policy Council (17 July 2003) and was handed on to the Integration Committee of the Eurasian Economic Community for implementing the measures it proposed.
 
Barriers for international road haulage
 
I. Belarus
 
Fiscal charges (fees)
Individuals must pay from $1 to $3 for crossing the border at checkpoints
 
The name of the authority whose competence includes decision on eliminating the barriers
Local executive authorities
 
Specific measure recommended for removing the barriers
Belarus pays considerable attention to border areas and does much to properly equip checkpoints and improve their throughput capacity. In order to facilitate the process, the central government draws additional funds from local executive authorities. The latter, referring to local government rights, impose various charges to compensate, at least partially, for this expense. This causes higher transportation costs, higher prices for various goods, and a deteriorated trade balance between nations.
 
The imposition of various charges by local authorities contradicts provisions of article 1 (l and n) and article 2 of the Convention on Establishing the Transport Union adopted within the EurAzEC on 22 January 1998. The Convention sets out lowering of transportation costs as a top priority and requests certain steps towards the removal, on a mutual basis, of any transportation charges related to the use and maintenance of roads and other communication lines. It also requests creation of conditions for any carriers of the member nations that would not be worse than those existing for domestic carriers.
 
The respective governmental decision is recommended to be drafted and adopted to lift existing and prevent any new charges and duties by local executive authorities, and to fund checkpoint modernization by other sources.
 
II. Kazakhstan
 
Procedural barriers on the border
Payment for disinfection of vehicles (from $5 to $6)
 
The name of the authority whose competence includes decision on eliminating the barriers
The Healthcare Ministry
 
Specific measure recommended for removing the barriers
Currently, the country’s Healthcare Ministry collects payment for disinfection of vehicles in accordance with this government’s policy. The money partially compensates for the costs of disinfection equipment, personnel, chemicals, etc. Imposition of the fee, however, contradicts provisions of article 1 (l and n) and article 2 of the Convention on Establishing the Transport Union adopted within the EurAzEC on 22 January 1998 (see section 1 above). Taking account of international practice and with a view to reducing transport costs, it is proposed to eliminate the disinfection fee.
 
Fiscal charges (fees)
The ‘environmental’ fee for entering environmentally protected or sensitive areas and the city of Almaty ($2 for entering Almaty or Taldykorgan).
 
The name of the authority whose competence includes decision on eliminating the barriers
The Ministry for Environmental Protection and governments of Almaty and Taldykorgan
 
Specific measure recommended for removing the barriers
The environmental fee is collected in accord with Kazakhstan’s environmental law. It is levied on foreign carriers, while local road freighters pay the respective taxes to the local governments which then provide funds for environmental programs in their areas. As a result, provisions of the Convention on Establishing the Transport Union of 22 January 1998 are not observed regarding creation, on a mutual basis, of conditions for carriers from member states which are not worse than those existing for domestic carriers.
 
It is advisable to propose the Ministry of Environmental Protection and Akimats of Almaty and Taldykorgan to exempt, on a mutual basis, vehicles from the EurAzEC member states from fees for entering environmentally protected or sensitive areas and the cities of Almaty and Taldykorgan.
 
Fiscal charges
Mandatory civil liability insurance (the Green Card is not recognized)
 
The name of the authority whose competence includes decision on eliminating the barriers
The National Bank
 
Specific measure recommended for removing the barriers
The Kazakh law provides for charges (fees) to cover civil liability insurance mandatory for all road freighters. Kazakhstan has not acceded to international conventions on automobile insurance; however, the country is trying to apply international law on civil liability insurance. For instance, if a foreign vehicle stays in Kazakhstan for more than one month and less than one year, its owner must only pay the respective portion of its annual insurance premium pro rata to the period of stay.
 
It is proposed that the respective government authorities of the member states mutually remove the charges (fees) paid by the EurAzEC member states for mandatory civil liability insurance, and that the Republic of Kazakhstan accede to the international convention on transport insurance.
 
Customs escort fee (collected from physical persons; varies from $29 to $285 depending on the distance of travel)
 
The name of the authority whose competence includes decision on eliminating the barriers
Customs Control Agency
 
Specific measure recommended for removing the barriers
This payment is imposed for preventing the sale of certain cargoes, until their customs clearance, that have entered or transit through Kazakhstan. The payment is regulated by Kazakhstan’s Customs Code and the relevant statutory acts. The list of cargoes which are subject to customs escort is approved by the Kazakh Government.
 
It is recommended to cut the list of goods (cargoes) subject to customs escort or introduce guarantees provided by authorized banks or freight carriers’ association of the country of dispatch of the goods of cargoes, in order to eliminate the customs escort procedure.
Bureaucratic procedures
Mandatory registration of drivers staying in Kazakhstan for more than 5 days, and obtaining sanitary certificates for buses
 
The name of the authority whose competence includes decision on eliminating the barriers
The Ministry of Internal Affairs, the Healthcare Ministry
 
Specific measure recommended for removing the barriers
The system of mandatory registration was introduced for better regulation and control of the migration process and the stay of foreign citizens to Kazakhstan. Moreover, the control bodies require sanitary certificates for buses. This involves preparing documentation for cargoes, passing them to consignees, customs clearing and reloading. At the same time, in accordance with the international convention, the crew of the vehicle, being in the territory of another state, must not pledge, sale or leave their vehicle. Such foreign vehicles and crews are subject to check in/check out registration by the transport supervision authority in Kazakhstan.
 
Either elimination of the mandatory registration procedure for international road crews including forwarders, or registration for a longer term (to 10 days) may be recommended based on international experience. When an electronic system is introduced for check-in and check-out registration of foreign vehicles and crews in Kazakhstan, the transport supervision bodies at the Transport and Communications Ministry and the Ministry of Internal Affairs of Kazakhstan are recommended to exchange, on a mutual basis, information on such foreign vehicles in Kazakhstan. Moreover, it is advisable, on a mutual basis to eliminate any sanitary certificates for buses from EurAzEC countries.
 
The following documents are required for cargoes subject to veterinary and phytosanitary control:
1) permit by the Chief State Veterinary Inspector of Kazakhstan;
2) veterinary certificate and certificate of conformity issued by the respective government authorities of the exporting country;
3) health certificate, issued by the Agriculture Ministry, for goods in transit through Kazakhstan which are subject to quarantine control;
4) phytosanitary certificate of the exporting country.
 
The name of the authority whose competence includes decision on eliminating the barriers
The Agriculture Ministry
 
Specific measure recommended for removing the barriers
The permits were introduced for better control of cargoes, which are subject to veterinary and phytosanitary control, passing through the border of Kazakhstan. There are cases of congestion of vehicles with such goods at checkpoints.
 
In order to facilitate the check process, it is recommended to introduce preliminary approval of documents for such cargoes with the respective authority in the country of destination. Furthermore, to draft and adopt a protocol on mutual recognition of veterinary, phytosanitary and other documents for certain cargoes, to be issued by the country of registration of a road vehicle.
 
III. Kyrgyzstan
 
Procedural barriers on the border
The time of stay is limited for foreign carriers to 3 days (mandatory registration)
 
The name of the authority whose competence includes decision on eliminating the barriers
The Ministry of Interior Affairs
 
Specific measure recommended for removing the barriers
Kyrgyzstan introduced the time limit with a view of prompt registration and secure stay of foreigners entering the country. However, the time is not sufficient for registration of drivers of road vehicles due to lengthy customs clearance procedures, malfunctions in the vehicles, reloading procedures, preparing the cargo documentation, etc. At the same time, in accordance with the international convention, crews of vehicles, being in the territory of another state, must not pledge, sell or leave their vehicles. The international convention also regulates the work and rest of crews of such vehicles, and their check in and check out of Kyrgyzstan.
 
Either elimination of the mandatory registration procedure for international road crews, including forwarders, or registration for a longer term (to 10 days) may be recommended based on international experience. When an electronic system is introduced for check-in and check-out registration of foreign vehicles and crews in Kyrgyzstan, the transport supervision bodies at the Transport and Communications Ministry and the Ministry of Internal Affairs of Kyrgyzstan are recommended to exchange, on a mutual basis, information on such foreign vehicles in Kyrgyzstan.
 
Fiscal charges (fees)
Environmental fees for entering and stay of motor vehicles in Kyrgyzstan (such fee for a heavy truck is $15)
 
The name of the authority whose competence includes decision on eliminating the barriers
The Environmental Protection Ministry
 
Specific measure recommended for removing the barriers
The environmental fees are collected in accordance with Kyrgyzstan’s environmental law. The fee is only levied on foreign carriers, while local over-the-road freighters pay the respective taxes to the local governments which then provide funds for environmental programs in their areas. As a result, provisions of the Convention on Establishing the Transport Union of 22 January 1998 are not observed regarding creation, on a mutual basis, of conditions for carriers from member states which are not worse than those existing for domestic carriers.
 
It is advisable to propose that the competent bodies exempt, on a mutual basis, vehicles from the EurAzEC member states from the fee for entering environmentally protected or sensitive areas
 
IV. Russia 
 
Procedural barriers on the border Customs registration of goods from China brought to Russia through Kazakhstan (including the TIR carnets issued by the Kazakh customs) on the Kazakhstan-Russia border with unloading the goods to a limited storage warehouse.
 
The name of the authority whose competence includes decision on eliminating the barriers
The State Customs Committee
 
Specific measure recommended for removing the barriers
This problem has been discussed at numerous workshops and conferences on transit haulage that took place in Kazakhstan and abroad in 2001-2003. It is recommended to settle the issue on a bilateral basis.
 
Arrest of vehicles (often with the cargo) of companies suspected in violation of the customs clearance procedure, to a period of 27 months, and their placement to a special parking lot as a pledge. The procedure of confirming the clearance by the Russian customs authorities takes a long time.
 
The name of the authority whose competence includes decision on eliminating the barriers
The State Customs Committee
 
Specific measure recommended for removing the barriers
Russia is taking measures to reduce the time of arrest, as established by the federal law, for international motor vehicles, and to observe the existing bilateral and multilateral agreements for automobile transportation and international haulage. It is proposed that the State Customs Committee of Russia find ways to speed up the procedure of investigation, confirming clearance and informing the national carriers’ associations on customs law violations
 
Fiscal charges (fees)
Collection of fees from international freighters for passing through certain highway bridges, for parking and for use of port infrastructure
 
The name of the authority whose competence includes decision on eliminating the barriers
Local executive and federal authorities
 
Specific measure recommended for removing the barriers
Local executive and federal authorities in Russia which are responsible for the regional transport infrastructure maintain the infrastructure at their own expense. Payments (fees) for its use are collected from international freighters as a partial compensation for the maintenance costs. Imposition of various charges by local executive authorities contradicts provisions of article 1 (l and n) and article 2 of the Convention on Establishing the Transport Union adopted within the EurAzEC on 22 January 1998 (see section I hereof).
 
Adoption of the respective governmental resolution is recommended in order to lift the existing and prevent introduction of new charges (fees) by local executive authorities.
 
When a vehicle is detained until the customs clearing is confirmed, its parking and security are paid by the carrier (1 day of such parking costs $20).
 
The name of the authority whose competence includes decision on eliminating the barriers
The State Customs Committee
 
Specific measure recommended for removing the barriers
It is recommended to draft and adopt a protocol between the customs departments of the member states on mutual exemption of international freighters detained until confirming the customs clearance from charges for parking and placing of goods to a limited storage warehouse.
 
V. Tajikistan
 
Fiscal charges (fees)
Payment per day of delay in registration for foreign citizens on expiry of the permitted period ($50)
 
The name of the authority whose competence includes decision on eliminating the barriers
The Ministry of Interior Affairs
 
Specific measure recommended for removing the barriers
The system of mandatory registration was introduced in Tajikistan for better regulation and control of the migration process and the stay of foreign citizens. For crews of international freighters and forwarders, this involves preparing documentation for cargoes, passing them to consignees, customs clearing and reloading. At the same time, in accordance with the international convention, crew of vehicles, being in the territory of another state, must not pledge, sell or leave their vehicles. Such foreign vehicles and crews are subject to check in/check out registration by the transport supervision authority in Tajikistan.
 
Either elimination of the mandatory registration procedure and the payments for staying in excess of the permitted period for international road crews, including forwarders, or registration for a longer term (to 10 days) may be recommended based on international experience.
 
Bureaucratic procedures Obtaining permits for import to or export of the cargo from the country
 
The name of the authority whose competence includes decision on eliminating the barriers
The Ministry of Economy and External Economic Relations
 
Specific measure recommended for removing the barriers
Tajikistan introduced the permits for protection of domestic producers. As a result, provisions of the Convention on Establishing the Transport Union of 22 January 1998 for creating conditions for any carriers of the member nations which would not be worse than those existing for domestic carriers are not observed. Based on the international practice of free trade and preparations by the EurAzEC member states (except Kyrgyzstan) to joining the WTO, elimination of such permits is recommended.
 
Mandatory insurance of cargoes, international road vehicles and their drivers
 
The name of the authority whose competence includes decision on eliminating the barriers
The government of Tajikistan or other government agencies
 
Specific measure recommended for removing the barriers
The common international practice is that insurance of cargoes, international road vehicles and their drivers is voluntary. Therefore it is advisable to eliminate, i.e. make voluntary, the mandatory insurance of the above activities and consider the possibility of introducing mandatory third party liability insurance for transport owners. In addition, exemption, on a mutual basis, of vehicles from the EurAzEC member states from charges (fees) for mandatory civil liability insurance is recommended along with accession by the government of Tajikistan to the international convention on motor transport insurance.
 
Phytosanitary and veterinary certificates issued by the veterinary service and quarantine inspection are requested
 
The name of the authority whose competence includes decision on eliminating the barriers
The Agriculture Ministry
 
Specific measure recommended for removing the barriers
The permits were introduced for better control of cargoes, which subject to veterinary and phytosanitary control, passing through the border of Tajikistan.
 
In order to facilitate the check process, it is recommended to introduce preliminary approval of documents for such cargoes with the respective authority in the country of destination. Furthermore, it is recommended to draft and adopt a protocol on mutual recognition of veterinary, phytosanitary and other documents for certain cargoes, to be issued by the country of registration of a road vehicle.
 
 


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