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Starting July 31, the second stage of cargo monitoring using navigation seals will commence within the Eurasian Economic Union (EAEU). This was reported by the Federal Customs Service of Russia.

New Control Stage

According to the new rules, an electronic seal will be installed for almost all categories of goods during customs transit by road transport. However, there are certain goods and situations excluded from this rule established by the Eurasian Economic Commission.

Control of Rail Transport

Regarding rail transport, specific types of products will be under surveillance, including alcoholic and tobacco products, goods subject to special economic measures, as well as categories such as footwear, clothing, and electronics.

Functionality of the Navigation Seal

The navigation seal is an electronic device attached to a vehicle or container. It enables real-time tracking of cargo movement and route, as well as monitors the safety of the goods.

History of System Implementation

The first stage of this system was launched on February 11. It covered the transportation of certain goods, such as alcohol, tobacco, goods with special economic measures, as well as clothing, footwear, and equipment.

Significance for Market Participants

This new regulation is important for carriers conducting customs transit within the EAEU territory, including companies from Uzbekistan that move goods through the Union's countries.

A proposal has been put forward in Uzbekistan to introduce an excise tax on imported palm oil. This initiative was presented by the Institute for Reducing the Shadow Economy, Improving Tax and Customs Administration, and Fiscal Analysis under the Ministry of Economy and Finance. The proposal was voiced on July 30 during a fiscal dialogue.

Proposed Rates and Revenue

The Institute suggests setting a specific excise rate of 139 US dollars per ton, equivalent to approximately 1.7 million soums. The initiative's authors calculated that this rate would account for about 10% of the average cost of importing palm oil in 2026, which is estimated at 1388 US dollars or 16.93 million soums per ton.

According to calculations, with an annual import volume of 12.8 thousand tons, the introduction of the new excise tax could supplement the state budget with approximately 21.7 billion soums in additional revenue.

Justification for the Initiative

The developers justify this initiative by stating that the market price of palm oil does not reflect the social costs associated with its consumption, including healthcare expenses. The presentation notes that in economic theory, such taxes are considered a tool for accounting for negative externalities.

The authors also believe that consumers are not always aware of the potential risks associated with consuming products high in saturated fats. Since palm oil is often used in processed food ingredients, the institute believes that labeling is insufficient, and pricing mechanisms can serve as an additional means of regulating consumption.

International Recommendations

The presentation cites recommendations from the World Health Organization, outlined in its 2016 report 'Fiscal Policy for Diet and Prevention of Noncommunicable Diseases,' according to which taxing foods high in saturated fats can be considered a measure to prevent noncommunicable diseases. Furthermore, the authors refer to the World Bank's position that such excises can simultaneously influence consumption patterns and provide additional budgetary revenues.

The Institute also points out that current tax benefits and zero rates create a price advantage for certain types of fats compared to alternative products. The developers believe that introducing an excise tax will help partially eliminate this imbalance. The materials from the event where the proposal was presented for discussion within the framework of the fiscal dialogue did not contain information regarding a decision on its implementation.

KZN Premier Thami Ntuli reported that the province is striving to encourage South Africans to revitalize this sector while providing them with opportunities for sustainable business operations.

Ownership Distribution in the Sector

Thami Ntuli revealed that nearly 60% of spaza shops in KwaZulu-Natal are owned by foreign nationals. He noted that a study conducted by the KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA) showed that 57.8% of spaza shops in the province are owned by foreigners, while South Africans own 42.2%.

These statements were made during a spaza shop roundtable in Durban on Tuesday. The event was organized by the provincial government with the participation of Ntuli and the EDTEA Minister, Reverend Musa Zondi.

Reasons for Competitive Advantage

Ntuli attributed the competitive advantage of foreign owners to factors such as wholesale procurement, cooperative business models, connections with wholesalers, and, in some cases, the sale of prohibited goods. He also emphasized that some foreign enterprises operate as cooperatives or have established relationships with specific wholesalers.

He highlighted three key factors: lower product costs, which are often produced under their own brands, the ability to pool funds for wholesale purchases that secure significant discounts, thereby reducing markups and increasing revenue. The government plans to create a formalized system where wholesalers supply goods to local spaza shop owners, including training, mentorship, and support to ensure compliance.

Government Challenges and Initiatives

Ntuli's address came against a backdrop of a series of marches against illegal immigration across the province. He stated that the roundtable aimed to address gaps arising from the lack of documentation among migrants who left some spaza shops, thereby restricting residents' access to essential goods. He clarified that the goal is not to displace owners but to enable people to develop through training and mentorship.

Ntuli also mentioned that thousands of shop owners applied for compliance certificates, but only a small number met the established requirements. Representatives from the KwaZulu-Natal Small Business, Trade and Investment Department (TIKZN) and other financial institutions were present to discuss financial support. The low approval rate, he said, indicates that many local traders are struggling due to compliance requirements.

Geographical Concentration and Conclusions

According to the study, the share of foreign owners is significantly higher in urban and coastal areas. For instance, in eThekwini, foreign owners account for 84.4% of spaza shops, and in uMthatha, it is 77.9%. Ntuli stressed that this high concentration in eThekwini is an important point for understanding. However, the picture differs in other districts where South African ownership predominates, such as in Harrismith (86%).

The agricultural sector of spaza shops in KwaZulu-Natal is valued at 178 billion rand annually, creating jobs and supporting local suppliers. Ntuli asserted that the government needs to understand the business practices contributing to the success of foreign shops, rather than merely observing them. He added that further study of the sector will continue until June 30, 2026, involving municipalities and communities, as the situation must be studied before legislative measures are adopted.