National Interests: Priorities and Security

Customs regulation on import of agricultural machinery: How to protect national manufacturers?

Vol. 13, Iss. 11, NOVEMBER 2017

Received: 17 August 2017

Received in revised form: 26 September 2017

Accepted: 18 October 2017

Available online: 29 November 2017


JEL Classification: E62, E64, G28, H25

Pages: 2077–2089

Tikhonova A.V. Financial University under Government of Russian Federation, Moscow, Russian Federation

Importance This research focuses on import duties on agricultural machinery.
Objectives I present a comprehensive research into setting import tariffs on agricultural machinery, considering Russia's membership in the WTO and EEU. I make my suggestions on improving the customs regulations on agricultural machine building so as to protect national manufacturers.
Methods The research involves general methods, such as deduction, induction, analysis, synthesis, description and generalization, and specific scientific methods, such as time series analysis, comparison method, graphic and table method of data presentation.
Results Russia has a negative trade balance of import and export in relation to principal types of agricultural machinery between 2006 to 2014. There is low demand for nationally manufactured machinery. The customs tariff regulation with respect to agricultural machinery leaves much to be desired. Considering these drawbacks, I propose changes to be made in the import duty tariffs.
Conclusions and Relevance If import duty tariffs on agricultural machinery are altered through a different approach, it will make national manufacturers more competitive. As the proposals contravene Russia's obligations to the WTO, Russia can negotiate them and concurrently increase import duties on an array of agricultural machinery.

Keywords: import duty, customs tariff regulation, agricultural machinery, machine building


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