The new legislation will simplify and harmonise the national procedures and requirements of Shanghai Cooperation Organisation member states concerning international motor traffic, remove the existing ban on Russian motor vehicles’ entry to China via checkpoints on the Chinese-Kazakh border, and consequently boost Russia’s trade with China.
Reference
The draft federal law “On the Ratification of the Agreement between the Governments of SCO Member States on International Road Transportation Facilitation” (hereinafter referred to as the Draft Law and the Agreement, respectively) has been submitted to the State Duma by the Ministry of Foreign Affairs and the Ministry of Transport.
The Agreement was signed in Dushanbe on 12 September 2014.
Article 8 of the Agreement relieves the carriers of the signatories that perform international motor shipments under this Agreement from taxes and dues arising from owning and using motor vehicles, as well as taxes on the use and maintenance of the other country’s motor roads on the condition of reciprocity.
In accordance with the Federal Law “On Motor Roads and Road Activities in the Russian Federation and Amendments to Specific Legislative Acts of the Russian Federation,” this tax exemption also covers payments to compensate for damage done by commercial vehicles with a maximum laden weight of over 12 metric tonnes to the surface of roads, which will be charged in Russia from 15 November 2015.
The Agreement is subject to ratification because it sets rules different from those stipulated by Russian law.
The new legislation will simplify and harmonise the national procedures and requirements of SCO member states concerning international motor traffic, remove the existing ban on Russian motor vehicles’ entry to China via checkpoints on the Chinese-Kazakh border, and consequently, boost trade between Russia and China.
The draft law was considered and approved at the Government meeting on 13 August 2015.