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47 market realities. 3 Since the application of national customs rules caused frequent disputes among trading framework within which customs agencies must work. These rules aim to avoid the application of national customs regulations in a manner that creates unnecessary trade barriers or discriminates among trading partners. The WTO also has an Agreement on Rules of Origin, which establishes guidelines on determining where an imported product was made. These “Rules of Origin” are important when a customs administration is required to enforce policies relating to preferential tariffs, such as exist in many free trade agreements, or in other trade discrimination policies such as anti-dumping actions or countervailing duties.

The OECD case studies also found that regional governments actively support local industries that are major sources of employment or that faced special hardships in seeking loans from Russia’s banking system. ). In the non-ferrous metallurgy sector, it is common to find regional government guarantees and tax credits for large projects financed by commercial loans. The credits are implemented in accordance with the “Statement on the procedure for extending tax credits in the Sverdlovsk region”,14 following a regional governmental decision.

Primorskiy krai also provides a broad spectrum of subsidies to the agricultural sector. The law “On the Target Territorial Fund for Financing and Development of Enterprises and Organisations of the Primorye Agro-Industrial Complex”, (No. 30-KZ, 20 January 1999) authorises a fund for financing and developing agricultural enterprises. The fund, which is financed by the regional budget, provides a variety of loans and grants. For example, it provides grants for breeding stock, growing certain crops, paying expenses for electricity and other inputs, and development of the social infrastructure of villages.

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