[MUSIC] A foreign trade barrier is defined as any measure that directly or indirectly results in an impediment to trade. They are divided into two groups, tariff and non-tariff ones. The category of tariff barriers primarily includes customs duties, but also other duties and charges on imports or exports. Tariff barriers are a particularly relevant for trading goods. They are of marginal importance for trading services. A tariff concession or a tariff binding is a commitment not to raise the customs duty on a certain product above the agreed level. For many WTO members, tariff bindings are higher than the customs duties actually apply it to this products. Preferential tariffs are given to one or more nations at lower rates or other advantages over others. Fees and charges for custom services are normally bound as well. In addition to import duties, some countries use expert ones normally for limiting the amount of export of certain products and/or to increase tax revenues. The Russian Federation, a big exporter of mineral resources metals and other low value-added goods, actively uses export duties. It is roast to mention that the share of export duties in the amount of customs duties collected by the Russian custom service is very substantial. For example, in 2017 it was equal to almost 84%. As it was already mentioned, Russia is a member of the Eurasian Economic Union. Since the first of January 2015, the Russian Federation has applied the common customs external tariff. It can be found at the official website of the Eurasian Economic Commission. On this slide you see the level of bound and applied rates of Russia, it couldn't do the WTO data. A simple average bound rate on all products in Russia equals to 7.6%. It should be noted that it is a general trend among the WTO members to have higher rates on agricultural products as some of them are perceived to be more sensitive than non-agricultural ones. Russia joined the WTO with their developed economy status. At the same time it managed to bound its duties at the higher level that most developed economies have. One could easily see the difference between bound and applied traits, the lateral over both calculated as simple average most favored nation applied for trade weighted and trade weighted average. The Russian Federation applies tariff preferences on their number of regional and bilateral agreements as well as non reciprocal arrangements for certain trading partners. There are no tariffs or other border measures on trade among the members of the Eurasian Economic Union. Armenia, Belarus, Kazakhstan, Kyrgyzstan Republic and the Russian Federation, the union signed a free trade area with Vietnam discussed an agreement on economic and trade cooperation with China and an interim agreement leading to a formation over three free trade area between the Eurasian Economic Union and its member states and the Islamic Republic of Iran. At their official website of the Eurasian Economic Commission, one can also find information with regard to the general system of preferences or GSP scheme to import from developing and least developed countries. It consists of among other documents general principles of GSP application, a list of countries beneficiaries, countries that are not recognized by the World Bank as high income and upper-middle income economies. And the list of products that can be imported to the Eurasian Economic Union under the scheme. The Russian Federation has applied a generalized system of preferences scheme to import from developing and least developed countries since 1992, which has been revised several times. The list of products is quite long and contains a wide range of goods for example, meat, coffee, rice, carpets, ceramics and pharmaceutical products. About 2,800 tariff lines approximately 24% of total tariff lines are covered by the GSP scheme. For this tariff lines, developing countries qualify for a 25% discount on the MFN duty and least developed countries qualify for duty-free access.
