22 November 2024

Belarus-Russia Foreign Trade: Legal Insights, Export & Import

November 22, 2024

BRACE Law Firm ©

The Republic of Belarus is the closest ally and strategic partner of the Russian Federation. Belarus also remains a key trade partner for our country.

The Treaty on the Creation of the Union State dated December 8, 1999, and several other regulatory acts define tasks for forming a single economic and customs space, harmonizing national economic legislation, transitioning to a single currency, and creating integrated energy and transport systems.

Furthermore, Russia and Belarus, along with Armenia, Kazakhstan, and Kyrgyzstan, are founders and members of the Eurasian Economic Union (the "EAEU"). These countries have agreed to pursue a unified economic policy, applying uniform customs control principles and maintaining a single transport space. When trading with Belarusian organizations, Russian exporters or importers do not need to file a customs declaration or pay customs duties and fees.

However, despite close trade and economic cooperation, contracts between counterparties from these two countries constitute foreign trade transactions and are subject to corresponding regulation.

This article examines the specifics of foreign trade activities between Russian and Belarusian companies.

Statistics on Foreign Trade Between Russia and Belarus

The Federal Customs Service ceased regular publication of customs statistics in April 2022 to "avoid incorrect assessments and speculation" amid sanctions.[1]

The latest statistical data covers 2021, during which trade turnover between Russia and Belarus amounted to $38,426,865,885, a 34.64% increase compared to 2020.[2]

Russian exports to Belarus in 2021 totaled $22,801,937,653, increasing by 42.90% compared to 2020. Russian imports from Belarus in 2021 amounted to $15,624,928,232, up 24.15% from 2020. The share of Belarus in Russian exports in 2021 was 4.6385%, compared to 4.7433% in 2020. By share in Russian exports, Belarus ranked 5th in 2021 (retaining its 2020 position). The share of Belarus in Russian imports in 2021 was 5.3251%, compared to 5.4380% in 2020. By share in Russian imports, Belarus ranked 4th in 2021 (also retaining its 2020 position).[3]

In the structure of Russian exports to Belarus in 2021 (and 2020), the main share of supplies consisted of the following types of goods:

Mineral products (Commodity Nomenclature of Foreign Economic Activity (the "TN VED") codes 25–27);
Metals and products made from them (TN VED codes 72–83);
Machinery, equipment, and vehicles (TN VED codes 84–90);
Chemical products (TN VED codes 28–40);
Food products and agricultural raw materials (TN VED codes 01–24);
Textiles and footwear (TN VED codes 50–67);
Wood and pulp and paper products (TN VED codes 44–49);
Precious metals and stones (TN VED code 71).[4]

In the structure of Russian imports from Belarus in 2021 (and 2020), the main share of supplies consisted of the following types of goods:

Machinery, equipment, and vehicles (TN VED codes 84–90);
Food products and agricultural raw materials (TN VED codes 01–24);
Chemical products (TN VED codes 28–40);
Metals and products made from them (TN VED codes 72–83);
Textiles and footwear (TN VED codes 50–67);
Wood and pulp and paper products (TN VED codes 44–49);
Mineral products (TN VED codes 25–27);
Precious metals and stones (TN VED code 71).[5]

The volume of mutual trade between Belarus and the Russian Federation in 2023 amounted to approximately $53 billion. [6] Trade turnover between Belarus and Russia in the first half of 2024 totaled $25.1 billion. Manufacturing products formed the basis of Belarusian exports to Russia. Compared to the same period last year, export volumes of food products grew by 8.4%; exports of computing, electronic, and optical equipment grew by 13.1%; and transport vehicles and equipment grew by 5.3%. Mutual supplies of industrial products also continue to increase. In the first quarter of 2024, Russian regions purchased more than 2,000 units of agricultural machinery produced in Belarus, primarily tractors and harvesters.[7]

International Treaties Regulating Foreign Trade Between Russia and Belarus

The main treaties and agreements between Russia and Belarus regulating foreign trade activities include:

Treaty on the Eurasian Economic Union (signed in Astana on May 29, 2014) (the "EAEU");
Agreement Between the Government of the Russian Federation and the Government of the Republic of Belarus dated November 13, 1992, On Free Trade;
CIS Agreement dated September 8, 1993, On the Merger of the Monetary System of the Republic of Belarus with the Monetary System of the Russian Federation;
Agreement Between the Government of the RF and the Government of the Republic of Belarus dated April 21, 1995, On the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Property;
Treaty Between the Russian Federation and the Republic of Belarus dated December 8, 1999, On the Creation of the Union State;
Agreement Between the Government of the RF and the Government of the Republic of Belarus dated February 12, 1999, On Cooperation and Mutual Assistance in Combating Illegal Financial Transactions and Financial Transactions Related to the Laundering of Proceeds from Crime;
Treaty Between the Russian Federation and the Republic of Belarus on General Principles of Indirect Taxation (signed in Moscow on October 3, 2022);
Treaty Between the Russian Federation and the Republic of Belarus on the Harmonization of Customs Legislation of the Russian Federation and the Republic of Belarus and Cooperation in the Customs Sphere (signed in Moscow on February 28, 2022, and in Minsk on March 4, 2022);
Agreement Between the Government of the Russian Federation and the Government of the Republic of Belarus on Measures to Regulate Trade and Economic Cooperation in the Export of Oil and Petroleum Products (concluded in Moscow on January 12, 2007);
Agreement on the Procedure for the Payment and Transfer of Export Customs Duties (Other Duties, Taxes, and Fees Having Equivalent Effect) upon Export from the Territory of the Republic of Belarus Beyond the Customs Territory of the Customs Union of Crude Oil and Certain Categories of Goods Produced from Oil (concluded in Moscow on December 9, 2010);
Agreement Between the Government of the RF and the Government of the Republic of Belarus dated October 5, 2010, On the Implementation of Transport (Automotive) Control at the External Border of the Union State;
Agreement Between the RF and the Republic of Belarus dated January 17, 2001, On the Procedure for Mutual Enforcement of Judicial Acts of Arbitration Courts of the Russian Federation and Economic Courts of the Republic of Belarus;
Agreement Between the Bank of Russia and the National Bank of the Republic of Belarus dated February 20, 1997, On the Organization of Settlements Between Economic Entities of the Russian Federation and the Republic of Belarus;
Agreement Between the Government of the Russian Federation and the Government of the Republic of Belarus on Uniform Rules of Competition (concluded in Moscow on November 9, 2022);
Agreement Between the Government of the RF and the Government of the Republic of Belarus dated February 12, 1999, On Approving Lists of Goods Subject to Quantitative Restrictions, Prohibitions, or Restrictions.

What are the Terms of Import and Export?

Article 25 of the Treaty on the EAEU establishes that an internal market for goods functions within the EAEU, allowing free movement of goods between the territories of Member States without the application of customs declarations or state control (transport, sanitary, sanitary-epidemiological, veterinary, quarantine, or phytosanitary control).

The internal market encompasses an economic space in which the free movement of goods, persons, services, and capital is ensured. The functioning of the internal market regarding mutual trade in goods is carried out without the application of:

Import and export customs duties (other duties, taxes, and fees having equivalent effect);
Non-tariff regulation measures;
Special safeguard, antidumping, and countervailing measures, except in specific cases.

Thus, the movement of goods between the EAEU Member States of Russia and the Republic of Belarus, in accordance with Article 28 of the Treaty on the EAEU, occurs without the payment of import/export customs duties or non-tariff regulation measures.

Meanwhile, under Article 29 of the Treaty on the EAEU, EAEU Member States may apply restrictions in mutual trade (provided such measures do not constitute a means of unjustifiable discrimination or a disguised restriction on trade) if such restrictions are necessary for:

Protection of human life and health;
Protection of public morals and order;
Environmental protection;
Protection of animals and plants;
Protection of cultural values;
Fulfillment of international obligations;
Ensuring national defense and state security of a Member State.

Sanitary, veterinary-sanitary, and quarantine phytosanitary measures may also be introduced in the internal market. Additionally, the circulation of specific categories of goods may be restricted.

The Russian Government may introduce restrictions on the export or import of certain categories of goods. For example, Government Decree No. 1074 dated August 13, 2024, temporarily prohibited the export of motor gasoline.

When importing or exporting food products, one should follow the directives of Rosselkhoznadzor, which provides information on import restrictions into Russia, enhanced laboratory control, the resumption of supplies, including those related to specific enterprises. For instance, by Directive No. FS-KS-7/22905 dated November 12, 2024, the status "Temporarily Restricted" was established in the Registry of Customs Union Enterprises for the Belarusian enterprise OAO Rassvet Poultry Farm due to the detection of Salmonella in poultry meat.[8] By Directive FS-KS-7/22796 dated November 11, 2024, Rosselkhoznadzor reported that, per the directive of the Department of Veterinary and Food Supervision of the Ministry of Agriculture and Food of the Republic of Belarus No. 05-17/3143 dated November 11, 2024, the import of finished meat products (including those containing pork) produced and shipped by JSC Klinsky Meat Processing Plant from Russia into Belarus is permitted as of November 12, 2024.[9]

Notably, the absence of customs declarations for imported or exported goods does not waive the requirement to conclude a foreign trade contract and, if necessary, register it with an authorized bank.

Statistical Forms for the Movement of Goods Between Russia and Belarus

Any Russian person who has concluded a transaction under which goods are exported from Russia to EAEU Member States or imported into Russia from EAEU Member States must timely submit a statistical form containing accurate information (the "Stat-form") to the customs authority. This form must be completed in the Foreign Trade Participant personal account on the official Federal Customs Service ("FTS") website, regardless of the value of the goods, quantity, or type of transport used.[10]

The Stat-form must be submitted for the reporting month (the month in which the shipment was made from or received at a warehouse in Russia) no later than the 10th business day of the calendar month following the calendar month in which the shipment or receipt of goods occurred.

The statistical form is submitted to the customs authority through the personal account as an electronic document signed with an Enhanced Qualified Electronic Signature (UK(E)P). In most cases, the statistical form is registered by the customs authorities of the region where the foreign trade participant is registered.[11]

The place of submission is the customs authority that performed the electronic registration of the form. One can determine when and which customs authority registered the Stat-form by its registration number (XXXXXXXX/DDMMYY/C123456), where the first 8 digits are the customs authority code.

Customs authorities maintain ongoing control over the timely submission of statistical forms and the accuracy of the information provided. Please note that submitting a statistical form in paper format is equivalent to failing to report, and the foreign trade participant will also face a fine.[12]

Failure to submit or the late submission of a Stat-form, or the submission of a form containing inaccurate information, entails liability under Article 19.7.13 of the CAO RF, providing for an administrative fine on officials ranging from 10,000 to 15,000 rubles and on legal entities from 20,000 to 50,000 rubles.

A repeated administrative offense entails an administrative fine on officials ranging from 20,000 to 30,000 rubles and on legal entities from 50,000 to 100,000 rubles.

It should be noted that persons engaged in entrepreneurial activities without forming a legal entity (individual entrepreneurs) bear administrative liability as legal entities.

Given established judicial practice, since the mere fact of missing the deadline for submitting the statistical form is sufficient for administrative liability, we recommend strictly adhering to the deadlines. If administrative proceedings are initiated, we recommend verifying that customs authorities have complied with all procedural requirements.[13]

How to Conduct Due Diligence on a Belarusian Company?

In Russia, information regarding organizations and individual entrepreneurs is contained in two registries: the Unified State Registry of Legal Entities and the Unified State Registry of Individual Entrepreneurs. Belarus has an equivalent—the Unified State Register of Legal Entities and Individual Entrepreneurs (the "EGR"). It contains data on both companies and entrepreneurs.

The EGR includes the following data:

Registration number;
Current status;
Full and abbreviated names in Russian and Belarusian;
Date of state registration;
Address;
Type of activity;
Amount of charter fund, owners, and other details.

Part of the EGR data on a counterparty can be obtained free of charge. To do this, visit the website at https://egr.gov.by and select the section Check the Status of an Economic Entity, where you can enter known data (registration number, organization name, or the entrepreneur's full name). By clicking on the line "Additional information on the subject", you can view more details than those shown on the search results page. The free version does not include all data; for example, information on owners and the size of the charter fund is absent.

Additional information can be obtained online, by mail, or in person as a paid service. An electronic extract costs 16 Belarusian rubles (approximately 509.78 Russian rubles), while a paper extract costs 32 Belarusian rubles (approximately 1,019.57 Russian rubles). To request additional details, click the line "Request detailed information on the subject". [14]

An inquiry regarding enforcement proceedings may be submitted by either a Belarusian resident or a foreign person to the enforcement department at the debtor's location (a list of departments and addresses is available on the website of the Ministry of Justice of the Republic of Belarus). The inquiry fee is 69 Belarusian rubles (approximately 2,100 Russian rubles). There is no established statutory deadline for providing this information; in practice, it takes about 15 calendar days.

The following information can be obtained:

The existence of enforcement proceedings initiated against the debtor at the time the information is provided;
Restrictions (encumbrances) established against the debtor and/or their property in enforcement proceedings. [15]

Data from the Supreme Court of the Republic of Belarus website allows one to form an opinion on the volume of litigation involving the counterparty and the amounts being recovered. This information is available free of charge online. However, to use the services in the "Electronic Justice" section, registration is required.

Scope of information available:

Operative parts of judicial acts in cases heard by economic courts involving the counterparty;
Schedules of court hearings scheduled in economic courts involving the counterparty;
Information on summary (order) proceedings in economic courts involving the counterparty. Information is available on the case number, debtor, claimant, amount of claim, and the results of the application. [16]

If an employer has a debt for insurance contributions exceeding 100 Belarusian rubles, they are included in a list of debtors. You can check a counterparty for insurance contribution debts on the website of the Ministry of Labor and Social Protection of the RB in the section "Collection and Payment of Insurance Contributions," which contains lists of debtors by regional directorates. You can download the file for the partner's region; if the company is listed, it has outstanding insurance contribution debts. [17]

Tax arrears can be checked on the website of the Ministry of Taxes and Duties of the RB in the section "Information on Indebtedness for Tax Payments to the Budget," by searching for the taxpayer identification number or organization name. Liquidation information can be found in notices published in the official publication of the Ministry of Justice of the RB, Justitsiya Belarusi. Bankruptcy information is available on the website of the Unified State Registry of Bankruptcy Information under the "Debtors" tab.[18]

How to Properly Draft a Foreign Trade Contract with a Belarusian Company?

In Belarus, the regulation of supply contracts is governed by the Civil Code of the Republic of Belarus and other regulations that define the rights and obligations of the parties, the procedure for conclusion, performance, and termination, as well as liability for breach. Under the Civil Code of the RB, a supply contract must contain the following material terms: name and quantity of goods, price, payment and delivery procedures and deadlines, and other terms agreed upon by the parties.

In the event of a breach of contract terms, parties may apply various measures to protect their rights, including claims for damages and contract termination. Therefore, when concluding a supply contract, it is vital to attend to all its terms and ensure their compliance with current legislation.

Under Decree of the President of the Republic of Belarus No. 178 dated March 27, 2008,[19] residents of the Republic of Belarus are required, in respect of each foreign trade contract, to:

Indicate the registration number of the currency contract (subject to registration under currency legislation) in the goods declaration or, if customs operations are not performed, in the statistical declaration. The statistical declaration is a currency control document registered with customs authorities using information systems and submitted as an electronic document for statistical accounting of foreign trade operations involving shipments (receipts) of goods for which customs operations are not performed. It covers one or more facts of shipment (receipt) where the total value is equivalent to 3,000 euros or more per reporting calendar month.
Submit requested documents and other information within established deadlines upon the demand of control (supervisory) authorities authorized to exercise currency control.
Provide for the amount (estimated amount) of the parties' monetary obligations in the foreign trade contract, as well as the settlement terms (defined as the obligation of one party to make payment before or upon performance of obligations by the other party).

The contract currency may be Belarusian rubles, Russian rubles, or foreign currency; in the latter case, the contract must establish an official exchange rate.[20]

It is important to note that if a contract with a Belarusian partner is concluded in Russian rubles, it is still considered a foreign trade contract and is subject to currency regulation and control requirements.

Under Article 17 of the Constitution of the Republic of Belarus, the state languages are Belarusian and Russian. Consequently, a contract with a Belarusian company may be concluded in Russian. This approach avoids disputes over discrepancies between Russian and Belarusian versions of the contract.

Dispute Resolution Terms in Contracts Between Russian and Belarusian Companies

When concluding a foreign trade contract, parties should pre-determine the court that will hear any disputes if they cannot be settled through negotiations.

Russia and Belarus concluded the Agreement dated January 17, 2001, On the Procedure for Mutual Enforcement of Judicial Acts of Arbitration Courts of the Russian Federation and Economic Courts of the Republic of Belarus. Under this agreement, a decision in a dispute heard by an economic court in Belarus will automatically be effective in Russia, and vice versa.

For a Russian company, it is preferable for disputes to be heard in a Russian Arbitration Court. However, if the contract provides for disputes to be heard in a Belarusian economic court, it is not a major issue. A Russian company can freely file a claim in a Belarusian court, just as a Belarusian company can approach an arbitration court in Russia. Dispute procedures will be governed by the Economic Procedure Code of the RB or the APC RF, which have similar content. [21]

The contract may also specify that disputes will be resolved in an international arbitration court whose decisions are recognized by multiple states. Such courts exist under the chambers of commerce and industry of both Russia and Belarus:

The International Arbitration Court under the Belarusian Chamber of Commerce and Industry, established on April 12, 1994. Given an arbitration agreement, it can hear civil law disputes between any legal entities arising from foreign trade and other international economic ties (if at least one party is located abroad), as well as internal economic disputes between Belarusian entities.
The International Commercial Arbitration Court under the Chamber of Commerce and Industry of the Russian Federation (the "ICAC under the RF CCI").

Parties are not limited to these specific courts. They may stipulate in the contract that disputes will be heard in any other international arbitration court.

Regarding substantive law, parties may choose either the law of the Republic of Belarus or Russian law. The laws of both countries are very similar. The Republic of Belarus acceded to the United Nations Convention on Contracts for the International Sale of Goods dated April 11, 1980 (the "CISG") by Decree of the Presidium of the Supreme Soviet of the Belarusian SSR No. 2847-XI dated August 25, 1989. The CISG entered into force for Belarus on November 1, 1990. Parties may agree to apply it to their relations or exclude its application in whole or in part.

Currency Control Specifics in the Republic of Belarus

The primary issues of currency regulation and control for foreign trade in Belarus are governed by the following acts:

Law of the Republic of Belarus No. 226-Z dated July 22, 2003, On Currency Regulation and Currency Control;
Decree of the President of the Republic of Belarus No. 178 dated March 27, 2008, On the Procedure for Performance of Foreign Trade Contracts.

The currency regulation authorities in Belarus are the National Bank and the Council of Ministers of the Republic of Belarus.

As a currency regulation authority, the National Bank performs the following within its powers:

Establishes the procedure for registering currency contracts, the list of currency operations requiring registration, and the threshold amount of obligations above which registration is mandatory;
Establishes the volume, content, and forms of reporting on currency operations and other information necessary for payment balance statistics and monitoring;
Adopts regulatory legal acts, including joint acts with other currency regulation and control authorities.

Legal entities, individual entrepreneurs, and resident individuals are required to register currency contracts and submit documents and information regarding the performance of obligations under registered contracts in the manner established by the National Bank.

The registration procedure is provided in the Instruction on the Registration of Currency Contracts by Residents, approved by Resolution of the National Bank of the Republic of Belarus No. 37 dated February 12, 2021.[22]

Currency contracts are subject to registration if they involve transactions between residents and non-residents using Belarusian rubles and/or foreign currency, provided the amount (estimated amount) of obligations is not determined or equals or exceeds the equivalent of 4,000 base units for contracts concluded by a resident legal entity or individual entrepreneur.

To determine the registration requirement, the amount of obligations is converted into base units using the base unit value effective on the date the contract was concluded and the official exchange rate of the National Bank if the obligations are expressed in foreign currency.

As of January 1, 2024, the base unit was set at 40 rubles (Resolution of the Council of Ministers of the Republic of Belarus No. 944 dated December 27, 2023, On Establishing the Value of the Base Unit).[23] Thus, the minimum amount requiring registration at the time of this article is 160,000 Belarusian rubles (approximately 4,918,063.38 Russian rubles).

In Russia, contracts between residents and non-residents must be recorded if the obligation amount equals or exceeds the equivalent of:

For import contracts: 3 million rubles;
For export contracts: 10 million rubles.

A resident must register a currency contract before taking actions to perform obligations or no later than seven business days from the date following the receipt of funds into the resident's bank account, provided no performance actions were taken earlier.

A currency contract is registered by assigning it a registration number consisting of three parts separated by slashes.

The first part (six digits) indicates the year (last two digits), the month (01–12), and the day (01–31) of registration.
The second part (six digits) indicates the National Bank code (042) and the contract type (e.g., 001 for Export or 002 for Import).
The third part (five digits) is the serial number of the contract registered on the web portal in the calendar year (00001–99999).

A resident must submit information regarding the performance of obligations under a registered contract for the calendar month (or other period specified in the contract) no later than the 18th day of the month following the reporting period. If the contract was not performed during a calendar month, no information is submitted for that period.

Final information on the full performance of obligations must be submitted no later than fifteen calendar days from the date the resident determines the contract has been fully performed.

Taxation for Imports and Exports to Belarus

Article 28 of the Treaty on the EAEU provides that Member States shall not apply import and export customs duties (other duties, taxes, and fees having equivalent effect), non-tariff regulation measures, or safeguard measures in mutual trade. This applies to goods originating from a Member State and to third-country goods imported into the EAEU and released for free circulation (i.e., those that have cleared customs).

Under Article 71 of the Treaty on the EAEU, goods imported from one Member State to another are subject to indirect taxes. Article 72 establishes that indirect taxes in mutual trade are collected based on the country of destination principle, which provides for a 0% Value Added Tax ("VAT") rate and/or excise exemption for exports, and taxation at the point of import.

Based on the Protocol on the Procedure for Collecting Indirect Taxes and the Mechanism for Monitoring Their Payment during the Export and Import of Goods, Work, and Services (Appendix No. 18 to the Treaty on the EAEU (the "Protocol")), if goods are purchased under a contract between a taxpayer of one Member State and a taxpayer of another Member State, indirect taxes are paid by the taxpayer of the Member State into whose territory the goods are imported, the owner of the goods, or (if provided by national law) the commission agent or agent.

According to Clause 13.4 of the Protocol, if a taxpayer of one Member State purchases goods previously imported into that state by a taxpayer of another Member State on which indirect taxes were not paid, the taxes must be paid by the taxpayer of the importing state — the owner of the goods.

Under the Protocol, indirect taxes refer to VAT and excises (excise tax or excise fee).

Thus, when importing goods into Russia from Belarus, VAT is paid by the Russian buyer. For VAT purposes, the tax base is determined as of the date the imported goods are recorded on the books, based on the acquisition cost. The acquisition cost is the transaction price payable to the supplier under the contract.

Taxation is based on the rates established by the Tax Code of the RF. Since January 1, 2019, the standard rate is 20%, with 0% or 10% rates applying in certain cases.

An importer must submit a tax declaration and required documents no later than the 20th day of the month following the month the goods were recorded, and pay the VAT by the same deadline. The declaration must be accompanied by an import application and transport (shipping) or other documents confirming the movement of goods.

The current tax declaration form for indirect taxes (VAT and excises) for EAEU imports was approved by FTS Order No. SA-7-3/765@ dated September 27, 2017.

VAT paid upon importing goods from EAEU states into Russia is subject to deduction. Under Articles 171 and 172 of the Tax Code, VAT paid for goods moved across the border without customs clearance is deductible if the goods are used for VAT-taxable operations, recorded on the books, and documentation confirms actual tax payment.

For exports from one EAEU state to another, the taxpayer of the exporting state applies a 0% VAT rate and/or excise exemption. A Russian organization exporting to Belarus may not waive the 0% VAT rate.[24]

To confirm the 0% VAT rate and/or excise exemption, the exporter must submit the following documents (or copies) to the tax authority along with the tax declaration, as per Clause 4 of the Protocol:

Contracts concluded with a taxpayer of another Member State or a non-EAEU state;
An application for the import of goods and payment of indirect taxes. This application is provided to the Russian exporter by the taxpayer of the Member State into whose territory the goods were imported;
Transport (shipping) or other documents confirming the movement of goods between states.

The 0% VAT rate is considered unconfirmed if the exporting state's tax authority establishes that the goods were not actually exported to the other EAEU state specified in the contract.

Exporters may choose not to submit transport/shipping documents and contracts with the declaration if they submit an electronic list of import and tax payment applications. These applications must follow the form provided by international inter-agency agreements (Article 165 of the Tax Code).

If goods are exported under a contract with a foreign person who is not an EAEU taxpayer, but the consignee is an EAEU economic entity purchasing the goods from said foreign person, the 0% VAT rate still applies, provided an import and tax payment application (or list of applications) with the importing state's tax authority stamp is submitted.[25]

The form, completion procedure, and electronic format for the list of import applications were approved by FTS Order No. MMV-7-15/139@ dated April 6, 2015.

If exported goods are placed under a free customs zone procedure in Belarus, the Russian tax authority must be provided with a copy of the customs declaration certified by the Belarusian customs authority.[26]

The exporting country's tax authority will recover indirect taxes and penalties and apply enforcement measures if:

Submitted information on movement and payment does not match data obtained through information exchange between EAEU tax authorities;
Submitted documents contradict evidence available to tax authorities that the goods were not moved to the specified EAEU state;
The tax authority of the importing state has withdrawn the application due to evidence of non-import.

In conclusion, current conditions are highly favorable for cooperation with Belarusian partners. The absence of language barriers, simplified search for partners, streamlined customs procedures, and the agreement on mutual enforcement of judicial acts significantly facilitate business operations.

________________________

References

[1] FTS Disclosed Russia's External Trade Volume in 2023. What Trends Characterize Imports and Exports Now? November 14, 2023. RBC Website.

[2] Russia's Trade Turnover with Belarus. Russian Foreign Trade Website.

[3] Ibid.

[4] Ibid.

[5] Ibid.

[6] Trade Turnover Between Belarus and Russia in 2023 Reached $53 Billion. February 9, 2024. TASS Website.

[7] Trade Turnover of Belarus and Russia Grew by 6.4%. August 28, 2024. Rossiyskaya Gazeta Website.

[8] Belarus. Import Restrictions. Rosselkhoznadzor Website.

[9] Belarus. Export. Import Restrictions. Rosselkhoznadzor Website.

[10] Decree of the Government of Russia No. 891 dated June 19, 2020, On the Procedure for Maintaining Statistics of Mutual Trade in Goods of the Russian Federation with Member States of the Eurasian Economic Union and Repealing Decree of the Government of the Russian Federation No. 1329 dated December 7, 2015.

[11] To Whom and How to Submit the Statistical Form? FTS Website.

[12] Statistical Declaration of Goods. Kontur.Help Website.

[13] Statistical Form for Accounting for the Movement of Goods. Source: https://brace-lf.com/informaciya/pravo-i-mezhdunarodnaya-torgovlya/2062-statisticheskaya-forma-ucheta-peremeshcheniya-tovarov.

[14] How to Check a Counterparty from Belarus. November 10, 2022. KONTUR FOCUS Website.

[15] How to Check a Counterparty from Belarus: 10 Useful Resources. April 25, 2019. Klerk.ru Website.

[16] Ibid.

[17] How to Check a Counterparty from Belarus. November 10, 2022. KONTUR FOCUS Website.

[18] Ibid.

[19] National Legal Internet Portal of the Republic of Belarus.

[20] Conducting Trade with Belarus: What is Important to Know About the Counterparty. April 22, 2024. KONTUR Website.

[21] Ibid.

[22] Website of the National Bank of the Republic of Belarus.

[23] National Legal Internet Portal of the Republic of Belarus.

[24] Letter of the Ministry of Finance of Russia No. 03-07-13/1/24 dated January 9, 2019.

[25] Letter of the Ministry of Finance of Russia No. 03-07-08/124803 dated December 20, 2022.

[26] Letter of the Ministry of Finance of Russia No. 03-07-13/1/67696 dated September 3, 2019.