In Moldova, the efficiency of FEZs will increase and unfair competition will be eliminated in them.
In particular, this is provided for by the relevant amendments to the Law on Free Economic Zones and the Customs Code, which the Parliament adopted in the second reading. The changes were proposed by the Ministry of Economic Development and Digitalization and are aimed at optimizing the activities of the administrations of the FEZ of Moldova, as well as compliance with national legislation on customs regimes and competition. According to the bill, contracts between residents and administrations of the FEZ will be approved directly, without the obligation to coordinate them with the relevant ministry, which will eliminate unnecessary bureaucratic procedures. In particular, contracts concluded by FEZ administrations and residents will not have to be coordinated with the Ministry of Economic Development and Digitalization, and FEZ administrators will be required to provide the department with only a copy of the concluded contract, as well as report any changes, including suspension or termination of the contract, within 15 days from the date of making these changes to the contract. In turn, the Ministry of Economic Development and Digitalization will only develop and approve a standard contract concluded between the FEZ administration and a resident. The bill also provides for the creation of conditions for loyal competition in the FEZ. The document cancels some rules related to free economic zones in order to eliminate some non-competitive practices in the activities of FEZ residents. The draft law clearly defines the concept of a domestic product and a product originating from Moldova. At the same time, the document assumes the harmonization of legislation in this area with the provisions of the new Customs Code, which will come into force on January 1, 2024. In particular, the current exemption from customs duty is proposed not to apply to goods produced in the FEZ and imported into the rest of the customs territory countries. Also, this exemption will not apply to domestic goods that have not undergone sufficient processing in the FEZ and are imported into the rest of the customs territory of Moldova, as well as to foreign goods placed in the FEZ, with proof of their preferential origin attached. It is stipulated that goods wholly received in the customs territory do not have the customs status of domestic goods if they are obtained from goods in temporary storage or placed under the regime of external transit, customs warehouse of the FEZ, temporary importation or processing in the customs territory. All these changes are the conditions of the European Union and were agreed upon by the interdepartmental working group responsible for assessing the legal framework and harmonizing legislation in the field of state aid, in particular, free economic zones. As Deputy Prime Minister, Minister of Economic Development and Digitalization Dumitru Alaiba noted earlier, it's about ensuring fair taxation for goods produced in the FEZ when, for example, the tariff position in the FEZ changes. According to him, this disloyal practice existed for many years, and the goods entering the territory of the FEZ changed the tariff position there, imported into the customs territory of the Republic of Moldova without paying customs duties, which was incorrect. // 07.07.2023 — InfoMarket
