Customs duties exemption to encourage landings of fish in Russia

The latest amendments introduced to the Tax Code of Russia as of 31 January 2009 provide for complete exemption of customs duties and taxes for the Russian fishing vessels reentering Russia after exportation from the nation's customs territory for overhaul repair and/or refurbishment (subject to condition the works were completed before 1 September 2008), reports www.fishnet-russia.com (www.fishnet.ru) with reference to press-service of Russia's Federal Customs Service.

According to Russia's Fishermen and Exporters Association VARPE, the above amendments will allow the nation's fish businesses to save up to 5 billion RUB in 2009 as well as legalize for free calls at Russian ports the fishing fleet refurbished abroad. Besides, the tax exemption is supposed to encourage the fishermen to fulfill another new regulation introduced as of 1 January 2009 providing for mandatory customs clearance of EEZ's catches at Russian ports. Thus, the catch landings and seafood production in Russia are expected to get a boost thanks to increased calls.

Note: The Federal law No.314-FZ dated 30 December 2008 "On introducing amendments to Part 2 of the Tax Code of the Russian Federation and separate legislative acts of the Russian Federation aimed at raising efficiency of the fishery industry taxation" provides for introducing amendments to Article 35 of the Federal law "On customs tariff" No.5003-1 dated 21 May 1993, as well as to Article 207 of Russia's Customs Code, the amendments coming into force as of 31 January 2009.