An initiative of Russia’s Federal Customs Service (FCS) to impose customs duties on bunker fuel supplied to transit ships at Russian ports, has triggered fears that the move will likely affect the Russian bunker market volume, which may shrink by a quarter, the Russian Association of Marine and River Bunker Suppliers (Rosmorrechbunker) told PortNews.
As the Customs Code of the Customs Union of Russia, Kazakhstan and Belarus went into effect from 1 January 2011, the Russian Customs stopped accepting cargo declarations on bunker fuels ordered to be supplied to transit ships and registered as the ship stock (without payment of customs duties, taxes and subject to non-tariff regulation). Customs officials justified their action citing the FCS order dated Dec. 30, 2010. But the document provides for a ban on duty free bunkering only to "empty" transit vessels (sailing in ballast), said Rosmorrechbunker.
Moreover, the FCS and the Ministry of Economic Development are preparing jointly a bill to amend the Customs Code of the Customs Union, under which the FCS proposed a legislative ban on duty-free bunkering of transit ships.
In Rosmorrechbunkere believes that such a ban contradicts the provisions of the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention).
The share of transit vessels, replenishing bunker fuel stock accounts for 25% of the total volume of the Russian market of bunkering services at sea ports.