Moldovan Economics Ministry backs cutting customs duties on import of raw material for industrial goods

12:15 | 25.01.2016 Category: Economic

Chisinau, 25 January /MOLDPRES/- The Economics Ministry (ME) backs MPs’ initiative to cut customs duties by 1 per cent for some raw materials used by companies in the processing industry, the ME’s press service has reported.

In this context, the ME’s approval on amendments to the law on approving combined nomenclature of goods was submitted to the government for approval.

A ME’s communiqué says that the amendments to the law were operated, given that, on 1 January 2016, the regime of autonomous trade preferences (PCA) offered by the European Union to Moldova, expired, and the new free, deep and comprehensive trade regime between Moldova and EU entered into force on the entire territory of Moldova, including the Transnistrian region. Unlike the previous regime, the new one bans using the drawback fiscal rules, which provide for full or partial return of import duties collected for goods, which after processing in the customs territory, should be re-exported as processed goods.

As a result, starting from 1 January 2016, most companies operating in Moldova in the drawback regime are to pay customs duties for imported raw material, even if the latter is not meant for consumption on the domestic market and will be component of re-exported goods.

In order not to block activity and expansion plans of the companies, as well as to mitigate the effect of the ban on drawback rules, amendments were developed to the law on approving combined nomenclature of goods, stipulating cuts of customs duties from 5 per cent, 6.5 per cent, 8 per cent, 10 per cent to 1 per cent, for some goods used as additional products for finished goods by processing industry companies.

At the same time, the Economics Ministry notes that it is actively involved in talks with the EU authorities to cancel the clause of Protocol II, article No 14, of the Pan European Convention, prohibiting the use of drawback fiscal rules.

(Reporter A. Mardare, editor L. Alcaza)

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