JTLM 22-23/04/ Recycling regulations and disposal fee 23rd JTLM, Prague, Czech Republic Stephan Belaen – Elena Rothman (AEB)

JTLM 22-23/04/ Disposal fee in the Russian Federation Disposal fee legal basis Federal Law № 128 on Amendments to the Federal Law on Production and Consumption Wastes and Article 51 of the Budget Code of the Russian Federation of July 28, Government Resolution №870 on Recycling Fee for Wheeled Transport Vehicles” of August 30, 2012.

JTLM 22-23/04/ Disposal fee in the Russian Federation In force from September 1st, 2012 Payable for articulated haulers, dump trucks Until 29 March 2013, two options available Pay the disposal feeSet up a recycling network

JTLM 22-23/04/ Disposal fee in the Russian Federation The disposal fee calulation: Basic rate: RBL = USD * factor For articulated haulers and dump trucks the weight determines the fee: WieghtFactor for a new machine Factor for a used machine Fee for a new machine (USD) 50-80T13.630, T >350T Prior to Russia’s accession to the WTO, import fee on articulated haulers was 0%. Current disposal fee reaches up to 24%.

JTLM 22-23/04/ Disposal fee in the Russian Federation Recycling system Obligation to set up a network of collection points in each territorial subject of the Russian Federation and a city over 500 thousand population 93 collection points needed!

JTLM 22-23/04/ Disposal fee in the Russian Federation Problems encountered 1.Only 2 months to set up the recycling network:  Until October 1st, 2012 sumbit a dossier to the Ministry of Industry and Trade to be included in the registry of companies that can guarantee recycling.  Until November 1st, 2012 finalize setting up a network of collectin points. 2.Manufacturing technology: only companies that are manufacturing cabin or body in Russia can guarantee recycling. BUT foreign construction equipment producers manufacture frame in Russia.

JTLM 22-23/04/ Disposal fee in the Russian Federation Problems encountered 3.No transition period foreseen:  Contracts with some Russian customers were signed a year before the introduction of the disposal fee and some machines were in transit.  Disposal fee was not foreseen or included in the cost, which resulted in losses for the manufacturers. 4.Unfair competition: Two Belarussian producers of mining dump trucks (BelAZ and Minsk Wheel Tractor Plant) are exempt from paying the disposal fee (decision №84 of the Eurasian Economic Commission of October 12 th, 2012 )

JTLM 22-23/04/ Disposal fee in the Russian Federation Actions taken: 1.AEB Construction Equipment Committee  Consultations, meetings with the Ministry of Industry and Trade  Position paper on disposal fee sent to the Government authorities: Igor Shuvalov, First Deputy Prime Minister of the RF; Denis Manturov, Minister of Industry and Trade of the RF; Andrey Belousov, Minister of Economic Development of the RF; Valentina Matvienko, Chairperson of the Council of the Federation of the Federal Assembly of the Russian Federation; Sergey Naryshkin, Chairman of the State Duma of the RF; Andrey Belyaninov, Head of the Federal Customs Service of the RF; Boris Titov, Ombudsman on Entrepreneurs’ Rights; Arkady Dvorkovich, Deputy Prime Minister of the RF; Elvira Nabiullina, Aide to the President of the RF

JTLM 22-23/04/ Disposal fee in the Russian Federation Actions taken: 1.AEB Construction Equipment Committee  Open event on 22 April 2013, panel discussion with the Ministry of Industry and Trade on the disposal fee 2.EU  M eetings with the European manufacturers of construction equipment  Bilateral consultations with the Russian government  EU position: disposal fee is against the WTO rules

JTLM 22-23/04/ Disposal fee in the Russian Federation Recent developments 1.Amendment to the Federal Law “On Amendments to the article 24.1 of the Federal Law on Production and Consumption Wastes” of 8 April 2013 Disposal fee is payable by all market participants

JTLM 22-23/04/ Disposal fee in the Russian Federation Recent developments 2.Amendment to the Government Resolution №870:  Number of collection points for construction equipment manufacturers is reduced. Collection points are to be set up at those territorial subjects where the machine is registered.  Manufacturing technology: companies that manufacture frame can guarantee recycling  RATES STAY WITHOUT CHANGE

JTLM 22-23/04/ Disposal fee in the Russian Federation Recent developments 3.Draft Government Decree on recycling and subidies  Determines procedure of recycling  Can possibly give advantages to the local producers – by compensating disposal fee with subsidy  Can become another protectionist measure – against the WTO rules.

JTLM 22-23/04/ Disposal fee in the Russian Federation Recent developments 4.Draft Federal Law № «Amendments to the Federal Law “On Production and Consumption Wastes " in terms of ensuring the safe disposal of self-propelled agricultural and forestry machinery, construction and road-building machinery“ (proposed by the State Duma Committee on Industry, Deputy Vladimir Gutenev) Introducing disposal fee for all construction equipment and agricultural machinery. Status: On hold, no hearings yet