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AGREEMENT AGREEMENT on ensuring of free and equal rights to cross the borders of the Customs union member states and free transfer of merchandise and currency by physical persons of 24 November 19981

AGREEMENT

on ensuring of free and equal rights

to cross the borders of the Customs union member states

and free transfer of merchandise and currency

by physical persons

of 24 November 19981

(as amended on 28 October 2003)

The Government and the National Bank of the Republic of Belarus, the Government and the National Bank of the Republic of Kazakhstan, the Government and the National Bank of the Kyrgyz Republic and the Government and the Central Bank of the Russian Federation, hereinafter referred to as the Parties,

guided by the Declaration of the Heads of States of the customs union “On Ten Simple Steps towards Ordinary People”,

reaffirming their commitment to the principles of freedom and the equal rights of conveyance of people within common customs border of the customs union,

considering it a top-priority task to remove differences in terms for conveyance of merchandise and currency by individuals permanently residing in the territory of the customs union member states,

have agreed as follows:

Article 1

This Agreement shall set forth procedures and terms and conditions of:

– free crossing of state borders between the customs union member states by individuals permanently residing in the customs union member states, including those who are temporarily beyond its borders (hereinafter referred to as individuals);

– conveyance of merchandise not designated for production or any other business by individuals across the customs borders between the customs union member states;

conveyance of currency by individuals.

Article 2

The Parties, within a two months’ period after the Agreement comes into force, shall undertake measures to arrange the conveyance of individuals and their merchandise in an expeditious and simplified manner, including, where necessary, the creation of special “corridors” at checkpoints on state borders, as well as international airports, through which air traffic between the customs union member states is carried out.

Article 3

The Parties shall determine that valid documents confirming the fact of permanent residence on the territory of a customs union member state shall constitute grounds to let an individual pass in an expeditious, simplified manner.

Passage of individuals in an expeditious, simplified manner shall include the border (passport) control (identity check) which is carried out in compliance with the national laws of the member states.

Article 4

Merchandise conveyed by individuals in an expeditious, simplified manner shall be exempt from declaration in writing, except for cases when there are grounds to assume that an individual is conveying merchandise of which import or export is prohibited or restricted by the national laws of the member states, taking into account the provisions of Article 6 hereof.

Article 5

Merchandise originating from the customs union member states shall pass through their internal customs borders without restrictions on weight, quantity, value and declaration in writing, with exemption from customs duties, taxes and dues, except for customs storage charges.

This Article shall not apply to merchandise prohibited or restricted for import/export in accordance with the national laws of the customs union member states.

Article 6

Merchandise originating from third parties may pass through the customs borders of the customs union member states without declaration in writing, with exemption from customs duties and charges for customs clearance provided their total value does not exceed the amount equivalent of $1000) and total weight of luggage does not exceed 50 kg per person.

Article 7

Conveyance of foreign and national currency of the customs union member states within a common customs border of the customs union member states shall be carried out without restrictions.

The currency shall be conveyed within common customs border of the customs union member states without declaration in writing, except for cases of declaration at an individual’s own discretion.

Conveyance of national currency of the customs union member states across their external customs borders shall be carried out in accordance with the procedures set forth by the national laws of the state for which this currency is deemed to be national.

Article 8

The Parties agreed that, before setting up a common customs territory of the customs union member states, individuals may freely, without declaration in writing and submission of permits which are grounds to export cash foreign currency, import/export cash foreign currency across internal and external customs borders of the Customs Union member states to an amount not exceeding the equivalent of $3000 at any one time.

In the event of import/export of cash foreign currency by an individual across internal and external customs borders of the Customs Union member states to an amount exceeding the equivalent of $3000, there apply the procedures provided for by the laws of the customs union member state, to which/out of which such currency is imported/exported. In this case, customs declaration processed by a customs body when an individual imports cash foreign currency to the customs union member states is sufficient to export the currency from the state (within the amount stated in the declaration).

Article 9

Before setting up a common customs territory of the customs union member states, conveyance of national currency of the customs union member states across their customs border shall be carried out in accordance with the procedures set forth by the laws of the customs union member state, out of which/to which such currency is exported/imported.

As the economic situation in the customs union member states changes, the Parties may establish any other agreed norms for import/export of cash foreign currency by individuals across internal and external customs borders of the customs union member states.

Each member state of the customs union shall retain its right to establish, in the event of a critical balance of payment, any other maximum export of third country or national currency by an individual from the customs territory of its state. The state shall inform other customs union member states thereof.

Article 10

The Parties shall undertake public awareness efforts, including briefing on conveyance of merchandise and currency across customs borders of the customs union member states, norms of duty-free conveyance of merchandise, norms of the free conveyance of currency.

Article 11

Any disputes and discrepancies when construing and applying this Agreement shall be settled through negotiations and consultations, and, if the Parties fail to reach a concerted decision, these shall be referred to the Integration Committee.

The Parties may, by their mutual consent, introduce any amendments or supplements hereto, which shall be concluded as protocols and shall constitute an integral part hereof.

Article 12

To ensure more close cooperation between the bodies responsible for currency regulation and control, the Parties shall, as may be necessary, conduct joint consultations on current issues at least once every half-year.

This Agreement shall not infringe the Parties’ mutual obligations arising out of the Agreements on a customs union of January 6 and 20, 1995, and the Treaty on accession of the Kyrgyz Republic thereto.

Article 13

This Agreement shall come into force on the date on which the last notification of the completion of the internal procedures required for its entry into force is given to the depositary.

Any party may withdraw from the Agreement provided it has fulfilled its obligations hereunder and has transmitted an official notification of its withdrawal from this Agreement to the depositary not later than six months prior to its withdrawal.

Done at Moscow on November 24, 1998, in a single original copy in the Russian language.

The original copy of the Agreement shall be deposited with the Integration Committee, which shall transmit certified copy to each Party.

For the Government

of the Republic of Belarus                             S. Ling

For the Government

of the Republic of Kazakhstan                       N. Balgimbayev

For the Government

of the Kyrgyz Republic K. Zhumaliyev

For the Government

of the Russian Federation                              E. Primakov

For the National Bank

of the Republic of Belarus                             P. Kallaur

For the National Bank

of the Republic of Kazakhstan                       S. Akhanov

For the National Bank

of the Kyrgyz Republic E. Abdumanapov

For the Central Bank

of the Russian Federation                              V. Geraschenko


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