Bunker should be calculated
A new document regulating the amount of bunker fuel carried by vessels as stores and free of customs duties is effective within the Eurasian Economic Union from December 2016. The document developed by Russia’s Ministry of Transport a year ago was approved almost intact by the Board of Eurasian Economic Commission on 1 November 2016.
The amount norms for bunker fuel transported by ships as stores have been set in the Eurasian Economic Union, says Eurasian Economic Commission (EEC). Ships will be able to move across the customs border the amount of bunker stores equal to their actual consumption over the past period if the last bunkering (with fuel and engine oil) was held less than 30 days ago. For ships bunkered within EEU customs area more than 30 days ago the amount of bunker that can be declared as stores will be determined on the basis of actual bunker tanks’ capacity.
This was a proposal of the Russian side amid the exports of Russia’s cheap petroleum products registered as stores. This issue was raised long time ago. In August 2015 RF President Vladimir gave close attention to the matter. “There has been no progress on such an important matter as the prevention of illegal exports of petroleum products during bunker loading. We have discussed this with the Transport Minister and I have already issued some instructions,” Vladimir Putin said at the meeting dedicated to the development of transportation infrastructure in Russia’s south.
In late 2015, in fulfillment of the presidential instructions, RF Transport Ministry drafted a document which later was submitted to the Eurasian Economic Commission for consideration. The document proposed a method to determine the amount of bunker carried as stores with extra fuel subject to export duty. As the Ministry of Transport told IAA PortNews, the document was developed in cooperation with the leading bunker suppliers of Russia. It is the document which formed the basis of EEC Board decision.
EEC Board also set a list of data to be provided when declaring bunker fuel as stores and a clear algorithm for calculation of the norms.
Mukai Kadyrkulov, EEC Board member (Minister) for customs cooperation, said: “The decision sets quite a simple and clear mechanism for calculation of bunker amount allowed for moving outside EEU without placing under the customs procedures and payment of customs dues. The decision will eliminate the former problems caused by absence of clear regulations and faced by all officials involved in the process when checking and confirming the amount of bunker declared as stores and supposed for moving outside EEU”.
The amount of onboard bunker not subject to customs duties is calculated according to the formula V = О – (П – С*Д) where V – amount norm for bunker fuel transported as stores, О – capacity of bunker tanks, П – amount of fuel remained as of departure after the last bunkering in the Customs Union, С – daily fuel consumption, Д – number of days after the last bunkering in the Customs Union.
For easier application of this formula by customs authorities and ship owners the document contains three tables on 242 pages which make the bulk of the document.
According to Clause 4, Article 363 of the Customs Code of the Customs Union (CC CU), the Commission of the Customs Union can determine the qualitative standards of supplies which the provisions of CC CU Chapter 50 are applicable to.
According to the Customs Code of the Customs Union, Clause 23 of Article 4, CC CU, determines the stores as goods necessary for ensuring normal operation and technical maintenance of vessels en route, or at points of stop or parking, except for spare parts and equipment intended for consumption by passengers and members of crews on board vessels regardless of whether these stores are sold or not and intended also for sale to passengers and crew members without the goal of consumption of the mentioned stores on board such vessels.
CC CU Chapter 50 specifies particulars of customs operations carried out for stores.
The document provides for determining of the amount of bunker classified in separate positions and sub-positions of Commodity Nomenclature of Foreign Economic Activity of the Customs Union as stores carried by water vessels and subject to provisions of Article 50 CC CU.
Mukai Kadyrkulov emphasized that the decision does not set limits for the amount of bunker crossing the border. The amount of bunker that is not acknowledged as stores can be moved after its placement under the customs procedures and payment of customs dues.
Sophia Vinarova.