Required Report - public distribution

**Date:** 9/12/2004

**GAIN Report Number:** RS4064

RS4064

**Russian Federation**

**Trade Policy Monitoring**

**Palm Oil Import Tariffs Increased**

**2004**

**Approved by:**

![](media/image1.wmf)Randall Hager

U.S. Embassy

**Prepared by:**

Yelena Vassilieva and Dorothy Adams

**Report Highlights:**

The Russian Government recently increased import tariffs for palm oil in
boxes, barrels, bins, and cans from five to 15 percent, with a minimum
rate of not less than 0.12 Euros per kilogram. This Resolution follows
similar increases in import tariffs on animal and vegetable fats and
oils in small packages. by the GOR.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Moscow \[RS1\]

\[RS\]

Table of Contents

[Executive Summary 3](#executive-summary)

[Text of the Resolution #725 of December 2, 2004
3](#text-of-the-resolution-725-of-december-2-2004)

[Comments 5](#comments)

# Executive Summary

On December 2, the GOR approved a Resolution to increase import tariffs
on palm oil from a flat five percent to 15 percent. The Resolution also
calls for a minimum tariff of 0.12 Euros per kilogram for palm oil in
boxes, barrels, and cans of not more than 200 kilograms net weight.
These new rates will be in effect for nine months beginning January 7,
2005.

This Resolution follows a similar tariff increase for animal and
vegetable fats and oils in small (not more than one kg) cans, and
reflects the desire of domestic producers of margarine and other
vegetable oil products who believe cheap imports of palm oil compete
with domestic products in the confectionary, baking, and other food
industries. For further information on that Resolution, please see GAIN
report RS4049. An informal translation of the Resolution is provided
below.

# Text of the Resolution #725 of December 2, 2004

Begin Text:

**Government of the Russian Federation**

**Resolution #725 of December 2, 2004**

"On Making Changes to the Customs Tariffs of the Russian Federation
Concerning Palm Oil"

The Government of the Russian Federation decrees the following:

1.  As a partial amendment to the customs code of the Russian Federation
    approved by the Resolution of the Government of the Russian
    Federation #830 of November 30, 2001 "On the Customs Tariffs of the
    Russian Federation and Commodity Codes, Used at the Implementation
    of Foreign Economic Activity" (Collection of Laws of the Russian
    Federation, 2001, #50, article 4735):

    a.  to exclude from the commodity codes of foreign economic activity
        subheadings in accordance with Attachment #1;

    b.  to include in the commodity codes of foreign economic activity
        subheadings in accordance with Attachment #2;

    c.  to approve the attached import tariffs for a period of nine
        months.

2.  The present Resolution enters into force one month from the date of
    its official publication.

Chairman of the Government

Of the Russian Federation M. Fradkov

ATTACHMENT #1

to the Resolution of the Government

of the Russian Federation

#725 of December 2, 2004

**SUBHEADINGS**

**excluded from the Commodity Codes of Foreign Economic Activity**

of the Russian Federation

  ----------------------- ---------------------------------- ------------
  HS number               Item                               Units

  1511 10 900 0           \- - other                         \-

  1511 90 190 0           \- - - other                       \-

  1511 90 990 0           \- - - other                       \-
  ----------------------- ---------------------------------- ------------

ATTACHMENT #2

to the Resolution of the Government

of the Russian Federation

#473 of September 10, 2004

**SUBHEADINGS**

**included in the Commodity Codes of Foreign Economic Activity**

**of the Russian Federation**

  ----------------------- ---------------------------------- ------------
  HS number               Item                               Units

  1115 10 900             \- - other                         

  1115 10 900 1           \- - - in boxes, barrels, cans and \-
                          bins, net-weight 200 kg or less    

  1115 10 900 9           \- - - other                       \-

  1115 90 190             \- - other                         

  1115 90 190 1           \- - - in boxes, barrels, cans and \-
                          bins, net-weight 200 kg or less    

  1115 90 190 9           \- - - other                       \-

  1115 90 990             \- - other                         

  1115 90 990 1           \- - - in boxes, barrels, cans and \-
                          bins, net-weight 200 kg or less    

  1115 90 990 9           \- - - other                       \-
  ----------------------- ---------------------------------- ------------

**Import Duties**

Approved by resolution of the Government of the Russian Federation

#725 of December 2, 2004

  ----------------------- ---------------------------------- ------------
  HS number               Item                               Rate of
                                                             import duty
                                                             (percent of
                                                             customs
                                                             value or in
                                                             Euros)

  1115 10 900 1           \- - - in boxes, barrels, cans and 15%, but not
                          bins, net-weight 200 kg or less    less than
                                                             0.12 Euro
                                                             per kilogram

  1115 10 900 9           \- - - other                       5%

  1115 90 190 1           \- - - in boxes, barrels, cans and 15%, but not
                          bins, net-weight 200 kg or less    less than
                                                             0.12 Euro
                                                             per kilogram

  1115 90 190 9           \- - - other                       5%

  1115 90 990 1           \- - - in boxes, barrels, cans and 15%, but not
                          bins, net-weight 200 kg or less    less than
                                                             0.12 Euro
                                                             per kilogram

  1115 90 990 9           \- - - other                       5%
  ----------------------- ---------------------------------- ------------

End Text

## Comments

Palm oil has been an important product in inter-governmental barter
agreements between Russia and some Asian countries, and imports in some
years accounted for 30-40 percent of all vegetable oil imports. Two
years ago, imports of palm oil began to decrease and were replaced by
soybean oil. However, palm oil imports have been rising this marketing
year, leading to increased competition with domestic producers of
vegetable oil products.