Here’s a breakdown of Regulation (EU) 2025/1227:
**1. Essence of the Act:**
This regulation introduces increased customs duties on specific goods originating from or exported from Russia and Belarus. The goal is to reduce the EU’s economic dependence on these countries, safeguard the EU’s food security, and prevent market disruption. The regulation targets both agricultural products and fertilizers, applying different tariff increases and monitoring mechanisms to each category. It aims to diversify import sources and support the EU’s internal production.
**2. Structure and Main Provisions:**
* **Article 1:** This is the core of the regulation, outlining the new customs duties.
* Goods listed in Annex I (various agricultural products, animal products, etc.) will face an additional 50% ad valorem customs duty on top of existing tariffs.
* Goods in Annex II (nitrogenous and compound fertilizers) will have a phased increase in customs duties, combining a percentage-based tariff with a fixed amount per tonne, escalating annually from July 2025 to July 2028.
* It also sets thresholds for cumulative import volumes of fertilizers, which, if reached, will trigger an immediate increase to the highest duty level for the remaining period.
* **Article 2:** Mandates the Commission to monitor the prices of fertilizers within the EU for four years. If prices substantially exceed 2024 levels, the Commission will assess the situation and may propose temporary tariff suspensions for imports from countries other than Russia or Belarus.
* **Article 3:** Establishes the Customs Code Committee to assist the Commission in implementing the regulation.
* **Article 4:** Specifies the entry into force and application dates of the regulation.
**3. Main Provisions for Practical Use:**
* **** The key aspect is the differentiated tariff treatment based on the origin of goods. Businesses importing goods listed in Annex I and II need to be aware of the new, higher customs duties if those goods originate from or are exported from Russia or Belarus.
* The phased increase in duties for fertilizers (Annex II) provides a transitional period, but the potential for an immediate duty increase if import volume thresholds are met adds a layer of uncertainty.
* The Commission’s monitoring of fertilizer prices and potential for tariff suspensions on other countries could provide relief if prices spike, but this is contingent on the Commission’s assessment and action.
* **** The regulation explicitly states that goods originating from Russia or Belarus will not benefit from lower tariffs under the Union’s tariff rate quotas.
* **** For Ukrainian businesses exporting to the EU, this regulation might create opportunities to increase their market share, especially for agricultural goods and fertilizers, as the competitiveness of Russian and Belarusian products in the EU market is reduced.
* **** The regulation may affect Ukrainian citizens who are engaged in trade operations with the EU.
