Unit 4. Customs regimes

Warm up

Exercise 1. Everyone knows that customs regimes include Import, Export, and Free Zones. Do you know anything about rules of importing and exporting goods? Do you think that these rules vary from one country to another?

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

1. to transport goods	a) таможенный платеж;
2. temporary importation	b) неограниченное размещение;
3. customs clearance	c) передавать государству
4. to cross the border	d) бесплатная/необлагаемая налогом отсрочка;
5. customs payment	e) перевозить грузы;
6. free deferment	f) таможенный склад;
7. customs warehouse	j) взимать/начислять проценты;
8. to cede to the state	h) пересекать границу;
9. to charge interest	i) прохождение таможни/растаможивание;
10. unlimited distribution	g) временный ввоз/импорт.

READING

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

Customs Regimes in Russia

Any goods or vehicles brought into Russia must enter under a particular customs regime. Article 155 of the Russian customs code creates four groups of customs regimes: 1. Basic customs regimes: Free circulation (release for domestic consumption); Export; International customs transit. 2. Economic customs regimes: Internal processing; Processing for domestic consumption; Outward processing; Temporary importation; Bonded (customs) warehouse. 3. Completing customs regimes: Re-import; Re-export; Destruction; Rejection in favor of the state. 4. Special customs regimes: Temporary exportation; Duty-free trade; Movement of stores; Other special customs regimes.

But that is often easier said than done, and under many circumstances, the best way around custom problems is by using temporary import privileges.

A customs regime can be chosen either by the person in charge of transporting goods or vehicles across the border or by a customs broker. The choice is limited only by the particular customs regulations and does not depend on the legal relations between the parties.

For instance, some goods enter the customs territory of the Russian Federation under a purchase or sales contract, but at the moment of customs clearance, the importer is unable to pay the customs fees because the rates have suddenly gone up. Consequently, the goods cannot cross the border. In this situation, there are several ways to resolve the problem. For example, it is possible to use other customs options such as re-export, customs warehousing, temporary import privileges, ceding to the state, and, finally, liquidation of the goods.

Given these possibilities, making use of temporary import privileges is the most preferential – from both the financial and goods-disposal viewpoints. The temporary import option provides for a full or partial exemption from customs duties.

In the case of a partial exemption, the importer pays 3 percent of the regular customs duty for every calendar month – complete or incomplete – while the goods are present in the country. Temporary import privileges are issued by customs offices against take-back obligations: a partial exemption from customs duties is provided if the goods are to stay in Russia for two years and a full exemption is provided if the goods are to stay in Russia for one year.

When the temporary import privileges expire, it is either possible to extend them, which requires permission from the State Customs Committee, or to choose a different customs regime, such as re-export, customs warehousing, ceding to the state, scrapping or a release for unlimited distribution. The money paid in the temporary import fees is not returned unless the goods are eventually released for unlimited distribution.

If temporary imported goods or vehicles are subsequently released for unlimited distribution, the money paid for the temporary import is subtracted from the amount due paid for the unlimited distribution clearance.

Until recently, in addition to customs clearance fees, importers were to pay interest on deferred customs payments. But the Supreme Court of the Russian Federation issued a statutory order, which stated that it is unlawful to charge interest on deferred customs payments when goods are transferred from the temporary import regime to the unlimited distribution regime.

Therefore, when transferring goods from the temporary import regime to an unlimited-distribution regime, an importer only has to pay a sum of money equal to the difference between the two rates. This is the difference between the whole amount of customs payments and the sums which have already been paid.

Consequently, the temporary import regime is a very real opportunity to obtain a free deferment on customs-duty payments.

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

1. свободное обращение; 2. международный таможенный транзит; 3. обработка товаров вне таможенной территории; 4. временный ввоз/импорт; 5. склад таможни; 6. отказ в пользу государства; 7. перемещение товаров; 8. полное освобождение; 9. вывоз ранее ввезенного товара; 10. беспошлинная торговля.

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

1. There are four groups of customs regimes. 2. The choice of a customs regime is limited only by the person in charge of transporting goods or vehicles across the border or by a customs broker. 3. The temporary import option provides only for a full exemption from customs duties. 4. It is possible to extend the temporary import privileges when they expire. 5. Importers were to pay interest on deferred customs payments in addition to customs clearance fees.

Exercise 6. Answer the following questions. Use the text when necessary.

1. How many groups of customs regimes are there in Russia? 2. What are the basic customs regimes? 3. Who can choose a customs regime? 4. How can the problem of goods crossing the border be resolved? 5. What is the most preferential privilege from both the financial and goods-disposal viewpoints? 6. How much does the importer pay in the case of a partial exemption? 7. When is a full exemption provided? 8. How is it possible to extend the temporary import privileges when they expire? 9. What did a statutory order issue by the Supreme Court of RF state? 10. What does an importer have to do when transferring goods from the temporary import regime to an unlimited-distribution regime?

Exercise 7. Give a short summary of the text.

Exercise 8. Now read and translate the text about Outline of Available Customs Regimes in the UK. Use the dictionary when necessary.