Unit 8. Customs Procedures

Warm up

Exercise 1. Could you remember what customs procedures are? What kinds of them do you know? Are there any peculiarities of Russian customs procedures?

Exercise 2. Match the English words on the left with their Russian equivalents on the right. Learn the words by heart.

1. to stipulate	a) уполномочивать, поручить, давать возможность;
2. sufficient	b) заранее;
3. in advance	c) освобождение;
4. a temporary importation	d) грузополучатель, консигнатор;
5. to empower	e) обусловливать;
6. a customs brokerage	f) временный ввоз;
7. an admissibility requirement	g) на усмотрение декларанта;
8. at declarants’s discretion	h) достаточный; обоснованный;
9. an exemption	i) допустимое требование;
10. a consignee	j) профессия таможенного брокера.

READING

Exercise 3. Read and translate the following text. Use the dictionary when necessary.

Customs Clearance in Russia

Customs control procedures are carried out exclusively by the officers of customs bodies in accordance with the provisions stipulated by the Customs Code of the Russian Federation. The Federal Customs Authority determines the customs control strategy proceeding from the risk assessment evaluation system. In conducting customs control measures, the customs authorities proceed from the principle of selectivity and, as a rule, confine themselves to the forms of customs control sufficient for ensuring the observance of the customs legislation of the Russian Federation.

Customs clearance procedures are longwinded and complicated. Clearance can only be completed by the consignee who must be a company registered in Russia. All duties and VAT (Value Added Tax) have to be paid to Customs prior to release of goods. Payment of VAT/duty on some items must be paid in advance to Customs before the container/trailer is allowed to cross the border. This particularly applies to items such as spirits and tobacco.

Customs clearance procedures are the essential part of International transportations. A complex of services in customs clearance assistance for import, export and transit shipment dispatched by all means of transport is offered.

The declaration of goods is effected through submission to the customs authorities of information pertaining to goods and their customs procedural status, as well as of any other information, which may be required for customs clearance purposes, in a custom declaration or by any other method stipulated by the Customs Code in a written, verbal, electronic, or contracting form. Declaration of goods may be effected either by a declarant or by a customs broker (agent) at the declarant’s discretion. The scope of information to be entered in a customs declaration is limited to the details which are required for calculating and levying dutiable payments, gathering customs statistics, and applying the customs legislation of the Russian Federation.

Temporary importation constitutes a customs procedure under which foreign goods are utilized in the customs territory of the Russian Federation within a designated period of time (goods processing period) with complete or partial conditional exemption from customs duties and without subjecting such goods to any economic restrictions of prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Customs brokers are private individuals, partnerships, associations or corporations licensed, regulated and empowered to assist importers and exporters in meeting Federal requirements governing imports and exports. Brokers submit necessary information and appropriate payments on behalf of their clients and charge them a fee for this service.

Brokers must have expertise in the entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise.

Customs brokerage is a profession that involves the “clearing” of goods through customs barriers for importers and exporters (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation (and usually the payment) on behalf of the client of taxes, duties and excises, and facilitating communication between the importer/exporter and governmental authorities.

There are some seemingly significant peculiarities in the customs clearance process in Russia that can cause delays. For example, if the goods are packages on palettes, one should avoid indicating “palettes” in the customs documents. Otherwise, the palettes themselves will be subject to customs clearance and will require a quality certificate.

Another example is promotional material. Some exporters include such material (pens, hats, etc.) with exported goods. If this is done, the promotional material will also be subject to customs clearance. To avoid this, all promotional material should be sent by express mail.

Some shipping agencies have a “green light” practice. They give the green light (go ahead to ship) to the exporter only after all documents have been prepared and the consignee is ready to pick up the goods, as soon as they arrive in Russia. If these preparations are not made, there may be extra handling and storage charges or the goods may be returned to the exporter. To expedite the customs clearance process, goods can be declared at customs before their actual arrival.

Exercise 4. Consult the text and find the English equivalents to the words combinations.

1. от имени (от лица, в интересах) своего клиента; 2. транзитная транспортировка; 3. быть причиной задержек; 4. осуществлять посредством предоставления информации; 5. чтобы этого избежать; 6. должен быть оплачен перед/заранее; 7. все транспортные средства; 8. экономические ограничения запретов; 9. на усмотрение декларанта; 10. налог на добавленную или приращенную стоимость.

Exercise 5. Decide whether the following statements are true or false. Correct the false ones.

1. Customs clearance procedures are short and easy. 2. All taxes must be paid while the consignments are transporting through the customs border. 3. Customs control procedures may be realized by any state official. 4. Customs clearance procedures are the basic part of International transportations. 5. Declarants submit their declaration always personally.

Exercise 6. Answer the following questions.

1. Who implements customs control procedures? 2. In what form may the information pertaining to goods be submitted to the customs officers? 3. What principle do the customs officers use in their work? 4. Who can customs clearance be completed by? 5. What legal form can a customs broker have? 6. What are the functions of customs brokers? 7. What act of legislation stipulates customs procedures? 8. What is the essential peculiarity that can cause delays? 9. What should be done with the promotional materials to avoid taxes payment? 10. What actions are understood as the “green light” practice in shipping agencies?

Exercise 7. Give a short summary of the text.

Exercise 8. Now read and translate the text about customs registration in Russia. Use the dictionary when necessary.