Non-tariff regulation of foreign trade in the Republic of Belarus

        Since 1993 Belarusian Government has been working towards liberalization of foreign economic activity in the Republic by reasonable application of non-tariff control of foreign trade (licensing, quoting and contract registration included).
        A foreign trade non-tariff regulation is a complex combination of measures valid for importing and exporting certain goods. In international trade practice they are commonly known as "non-tariff limitations".
        A non-tariff limitation can be defined as an order of central (local) agencies of government administration that includes methods of realization of certain laws, resolutions and other legal documents (except for measures of customs-tariff character).
        Non-tariff regulations influence import and export activities, the scope, the structure of foreign trade, prices and goods competitiveness providing harder conditions for transition of foreign goods through customs comparing to the conditions for the goods of national origin. In other words non-tariff limitations provide different processes for goods from different countries.
        Classification, comparison and quantitative estimation issues were the central points in GATT activity during multilateral trade negotiations in 1973 -1995. Now they have become the object of a newly formed international organization -the World Trade Organization (WTO).
        The most wide-spread current non-tariff regulations include the following measures:

• Quantitative limitations and similar administrative measures: import quotas and export limitations, licensing, voluntary export and currency limitations as well as other measures of currency and financial control; bans, internal requirements of compulsory use of national products while producing ready-made goods;

• Limiting practice on the government administration level;

• Subsidies and other donations for exporters, preferable system of governmental orders as well as tax discrimination, financial and currency policies; the policy of balance of payment and currency rates regulations, that provides preferences for certain trade flow or that tows them.

• Customs procedures and formalities in case they exceed standard and universally accepted norms, thus creating a new trade hurdle: sophisticated customs valuation procedure, customs classification system when they detain customs registration or give the possibility of their independent treatment and application.

        The measures of non-tariff economic regulations are established due to the necessity:

• to discharge international obligations;

• to protect national manufactures;

• to avert export of raw materials;

• to minimize the balance of payment shortage;

• to provide ecological security.

        The measures mentioned are realized through adopting of corresponding resolutions by the Government; in some cases it is performed through President's decrees and edicts.
        The current legal framework that defines the system and the process of application of non-tariff measures of import-export regulations in Belarus consists of following legislative documents:
        - The Customs Code of the Republic of Belarus (adopted 06.01.1998, came into force 01.07.1998);
        - The President's decree as of 04.09.1998 №15 "On urgent measures for consumer market protection" (the publication is fixed by the President's decree as of 15.04.1999, 18);
        - The Law of Belarus "On government regulations of alcohol production and its turnover" (adopted 24.06.1998; came into force 30.06.1998);
        - The Law of Belarus "On foreign trade government regulations" (signed 29.12.1998, came into force 01.02.1999);
        - The Law of Belarus "On export control" (adopted 6.01.1998);
        - The Law of Belarus "On Belarus' economic protection measures in foreign trade activities" (came into force 09.06.2000);
        - The President's decree as of 05.05.1995 №179 "On improving activities against precious, non-ferrous, ferrous metals theft, scrap and waste as well as precious stones theft";
        - The President's decree as of 17.05.1995 № 191 "On the regulations of the governments' property disposition" (with the following alterations and supplements);
        - The President's decree as of 24. 02. 1999 № 112 "On the issues on oil products market regulations";
        - The Resolution of the Council of Ministers as of 21.02.1997 №117 "On introducing of provisional state regulation of import of alcohol products and ethyl alcohol made of food stuff";
        - The Resolution of the Council of Ministers as of March 18 1997 № 218 "On ascertainment of bans and limitations for transferring goods through the Customs of Belarus";
        - The Resolution of the Council of Ministers of Belarus as of 10. 01. 1998 № 27 "On state control improvement of specific goods transportation through the Customs of Belarus";
        - The Resolution of the Council of Ministers of Belarus as of 10.07.1998 № 1091 "On improving measures of state regulation of export of certain goods manufactured in Belarus";
        - The Resolution of the Council of Ministers as of 19. 11. 1998 31781 "On the goods not liable to barter operations";
        - The Resolution of the Council of the Ministers as of 01, 12. 1998 № 1846 "On additional measures of timber export regulation";
        - The Resolution of the Council of Ministers as of 8. 04. 2002 №440 "On improving measure on export and import regulations";
        - The Resolution of the Council of Ministers as of 05. 06. 2000 №800 "On the approval of the principles of investigation procedures that precede the introduction of protective, antidumping or countervailing measures ";

        The basis of non-tariff import and export regulation system is the Law of Belarus "On state regulation of foreign trade activity" and the Resolution of the Council of Ministers of Belarus as of 8. 04. 2002 № 440 "On improving measures on import and export regulation".
        According to the current legislation in Belarus the following non-tariff measures of foreign trade regulations are applied:

• Import and export licensing within established quotas or without quantitative limitations:
          - The export of mineral fertilizers, scrap and wastes of ferrous and non-ferrous metals (copper, aluminum, nickel), as well as the import of alcohol items and ethyl alcohol made of food stuff (according to the Resolution of the Council of Ministers as of February 21, 1997 №117 "On the introduction of temporary state regulation of import of alcohol products and ethyl alcohol made of food stuff") are performed within annually established quotas by licenses issued by the Ministry of Trade;
          - Textile goods export to the EU countries is performed by licenses according to the free trade Agreement on textile trade between Belarus and the EU;
          - Now export of precious stones and import of chemical substances of plant protection, slag and industrial waste are performed by licenses without quantitative restrictions;
          - For export of limited list of scarce raw materials as well as some exchange capacious raw materials the shortage of which leads to the manufactures' ineffective work and results at law production levels and a decrease of export capacity of the Republic.
          - Import of goods that are not of first need and that are not treated as the goods of "crucial import" (tires, carpets, bier)

• foreign trade contracts registration:
          - for oil products export;

• licensing and authorized regulation of special goods import and export.

        The lists of goods that are liable to bans and limitations of import and/or export are approved by the Resolution of the Council of Ministers as of March 18 1997 № 218 "On the establishing of bans and limitations for goods transportation through the Customs of Belarus" due to the need:

• to keep to the social moral as well as to the law and order:

• to protect live and health of the society as well as wild nature and environment;

• to preserve cultural heritage;

• to avert cultural values import, export or author rights transfer;

• to provide national security.

        To transfer such goods it is necessary to get a special permission from authorized body of state administration.
        It is necessary to admit that the current legal framework coincides with the basic principles of the correspondent recommendations of GATT/WTO. Besides when the legal framework was formed the first aim was to protect national manufactures and inner market from negative factors as well as to provide economic security for the Republic of Belarus.