Octavian Kalmyk
This conclusion was made by the lawyers of Lex-Econ Consulting, an analytical and expert center specializing in expertise in the field of economic, social, energy, customs and tax policy.
At the end of the existence of the current convocation, the parliament considered and approved amendments to the budget and tax policy in an extremely fast mode, avoiding all legal procedures related to the transparency of decision-making and regulatory impact, experts say.
For example, analysts say, the amendment by MP Radu Marian “opens Pandora’s box” as it abolishes all trade measures to protect the domestic market from imports, which affects the interests of local producers.
Amendment No. 24/03-115, dated June 26, 2025, proposed by MP Radu Marian to the Annex to the Law No. 172/2014 on the approval of the Unified Customs Nomenclature of Goods, in the section “General rules for the application of customs duty” provides for the addition of paragraph 12 to the document as follows: “12. Customs duty shall not apply to goods placed under the customs regime of final destination. The list of goods subject to placement under the customs regime of final destination shall be approved by the Government”.
The final destination regime, introduced by the Customs Code No. 95/2021 and in line with European standards, allows importing foreign goods with exemption from customs duties or with a discount on customs duties, if they are used for a specific purpose, which, in the opinion of the state, is of social or economic interest.
For example, ethyl alcohol imported for medical use is subject to VAT at a reduced rate (8% compared to the standard rate of 20%), according to Article 96 of the Tax Code, provided that the fact of use for medical purposes is confirmed.
It is important to note that the same mechanism will apply in the case of placement on the market under the final destination regime of foreign goods to be processed after import. Following the above example, in case of importation and placement under this regime of raw materials (glucose syrup), from which as a result of technological processes alcohol is produced, used, including in medicine, these raw materials (syrup) can be placed under the final destination regime and fully exempt from import customs duties.
The amendment proposed by MP Radu Marian fully or partially abolishes import customs duty on goods placed under the final destination regime, regardless of their origin, quantity and trade policy instruments (import quotas) applied to them. This reduces the level of protection of the domestic market, and excludes economic and commercial effects of trade policy affecting the interests of local producers, conclude the analysts of Lex-Econ Consulting.
A concrete example. When importing sugar to the domestic market, preferential tariff quotas and customs duties of up to 75% are applied. These economic policy instruments allowed to protect the country’s sugar industry and establish cooperative relations between farmers/agricultural producers and sugar beet processors. The application of the above amendment effectively abolishes the mechanisms of protection of the domestic market, allowing imported sugar to be imported under the final destination regime in unlimited volumes, without payment of customs duties and for processing on the territory of the country.
This amendment was not well thought out, as it may create situations that can be exploited by hidden stakeholders for massive and non-transparent import of goods without payment of import customs duties and regardless of the country of origin, masquerading as economic, social or “public benefit” purposes.
Full exemption from customs duties for goods placed under the final destination regime sets a dangerous precedent. The lack of clear mechanisms for customs control and supervision, as well as the absence of predetermined goods subject to customs control, leaves room for interpretation and abuse. Local producers, already in a vulnerable and difficult position, risk not being competitive, leading to job losses and economic dependence on imports.
The most paradoxical thing is that the author of the amendment claims that there is no regulatory impact on the state budget. In reality, the amendment by Radu Marian, chairman of the Parliamentary Commission on Economy, Finance and Budget, risks jeopardizing the country’s economic interests and budget revenues, the think tank experts conclude.
“Unfortunately, this is a common practice in Moldova,” Octavian Calmic, chairman of Lex-Econ Consulting and former economy minister, told Logos Press. – Traditionally, at the end of the session or when the mandate of the Parliament is over, lobbyists appear and try to pass legislative amendments that are negative for the country’s economy. Unfortunately, we are just stating the possible harm that may occur.
