1. JTLM 22-23/04/2010 1 13.2 Recycling regulations and disposal fee 23rd JTLM, Prague, Czech Republic Stephan Belaen – Elena Rothman (AEB)

2. JTLM 22-23/04/2013 2 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, 2012. Government Resolution №870 on Recycling Fee for Wheeled Transport Vehicles” of August 30, 2012.

3. JTLM 22-23/04/2013 3 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

4. JTLM 22-23/04/2013 4 Disposal fee in the Russian Federation The disposal fee calulation: Basic rate: 150 000 RBL = 5 000 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) 50-80T13.630,9868 000 80-350T2532125 000 >350T3740185 000 Prior to Russia’s accession to the WTO, import fee on articulated haulers was 0%. Current disposal fee reaches up to 24%.

5. JTLM 22-23/04/2013 5 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!

6. JTLM 22-23/04/2013 6 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.

7. JTLM 22-23/04/2013 7 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 )

8. JTLM 22-23/04/2013 8 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

9. JTLM 22-23/04/2013 9 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

10. JTLM 22-23/04/2013 10 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

11. JTLM 22-23/04/2013 11 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

12. JTLM 22-23/04/2013 12 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.

13. JTLM 22-23/04/2013 13 Disposal fee in the Russian Federation Recent developments 4.Draft Federal Law № 110530-6 «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