Factors Hindering the EAEU Exports to Third Countries and Reducing Russia’s Export Competitiveness

Abstract

The subject of the researchis the current difficulties faced by the Eurasian Economic Union (EAEU). The purpose of the research was to identify factors that impede the export of the EAEU goods to third countries and affect Russia’s export competitiveness. To this end, an analysis of the EAEU customs and legal regulations was carried out. The study provides reasons necessitating the abolishment of the residency principle in the EAEU as geographically limiting the ability of the declarant to submit a goods declaration to any customs authority in a customs territory of the customs union. The paper addresses problems related to the lack of harmonization of rules governing export and currency controls in the EAEU member countries. A comparative analysis of the rules regulating the goods exports at the national level of the customs union members was performed and the main differences were revealed.It is concludedthat the principle of residency is the key factor affecting the export competitiveness of the Russian and EAEU goods. Its abolishment requires a comprehensive approach and a number of measures aimed at harmonizing the customs legislation and related laws. The abolishment of the residency principle will reduce the material and time expenditures of businessmen in preparation of customs declarations, eliminate multiple VAT payments to participants of value chains and agency transactions within the EAEU, unify documents for performance of currency control as well as the procedure for granting export control licenses, resolve the issue of the procedure and currency of customs payments, etc. It is also required to solve industry-specific problems related to the implementation of the customs process (currency control, export control, procedures for refunding the value-added tax, etc.).The relevance of the researchlies in the fact that the implementation of the “EAEU Goods” Concept, developed by the Eurasian Economic Commission, requires solution of problems arising in the mutual and foreign trade. Meanwhile, expanding the trade with third countries is one of the main tools for the growth of national economies of the EAEU members.