The proposals, contained in a draft government resolution quoted in the union's official bulletin, call for a duty rate on raw sugar imports of 45 percent for the period from August 1 to November 30 and five percent from December 1 to July 31.

The duty effective for the second half of 1998 has been increased to 75 per cent from one percent previously.

The draft also proposed a 45 per cent rate on imported white sugar and "other sugar types" from August 1 to January 31 and a duty of 30 per cent but no lower than 0.12 Ecus per kilo from February 1 to July 31.

The draft qualifies "other sugar types" as non-white sugar with sucrose content exceeding 99.5 per cent, while the sucrose content in raw sugar should be below 99.5 per cent.

The rate for white sugar in the second half of 1998 was increased to 45 per centfrom 25 per cent. Other types of refined sugar were not mentioned.

The draft resolution also proposes to add Belarus to the list of countries liable to sugar duties. Neighbouring Belarus is currently exempt from duty under a customs union with Russia.

The draft proposes that from January 1, 1999 sugar may only be imported by companies which deposit $5 million per year in Russia's central bank. All custom duties would be deducted from this.

The draft proposes, however, that the measures should only become effective six month after it is approved by the government and officially published.

It was not clear therefore from the draft, what duties would be effective from December 31, 1998, the date when the present sugar import duty regime expires.

A note annexed to the draft says that a working group of the Government Commission on Protective Measures in Foreign Trade and Customs and Tariffs Policy should examine the draft within two weeks.

Earlier the sugar producers' union proposed a five per centduty on raw sugar imports for the whole of 1999 with a supplementary 40 per cent duty from July 1 to December 31.

It also proposed a 45 per cent duty on imported white sugar for the whole of next year.