Unit 13 customs procedures warehousing

According to the Customs Code there are 16 customs procedures:

1. Release of goods for home use

2. Transit of goods

3. Customs warehouse

4. Duty free shop

5. Processing of goods on the customs territory

6. Temporary admission

7. Free customs zone

8. Re-import of goods

9. Export of goods

10. Re-export of goods , etc.

Text

CUSTOMS WAREHOUSE

The Customs warehousing procedure enables importers and exporters to keep their goods temporarily (for 2 months) in customs warehouses without the payment of duties and taxes and without the application of economic restrictions and prohibitions.

Goods can be imported for storage in a warehouse and re-exported in the same state. But traders can use this procedure to improve the packaging and marketable qualities of the goods and to prepare them for shipment. Such operations include: repacking, sorting and grading, breaking bulk, grouping of packages.

This customs procedure gives importers and exporters a number of advantages. For example, they can import goods in bulk, at discounted prices and place the goods in the customs warehouse. Then the trader can re-negotiate sales abroad on more favorable terms and re-export the similar quantities of goods at higher prices, making foreign exchange gains.

In some cases exporters are permitted to use warehousing facilities to combine domestic goods with identical imported goods to satisfy a single export order.

The warehousing procedure can be used to assist home manufacturers in producing goods for export. There are traders who specialize in wholesale trade and act as agents for manufacturers. They consolidate small import orders from different companies and import consignments in bulk on the most favorable terms. After that they offer their goods to home producers at lower prices than the prices for small importations.

Besides, warehousing procedure helps exporters to obtain refunds of import duties and taxes before the actual exportation of the goods, thereby facilitating their cash flow.

Customs warehouses may be either public or private. ”Public warehouse” is available for use by any person and “Private warehouse” is reserved by a warehouse-keeper who must be authorized by the Customs.

The warehousing procedure enables the authorities: to assist manufacturers in producing goods for export and thus develop a country’s external trade as well as to earn foreign currency for the services rendered at the warehouses and provide employment opportunities.

Working on the text

Ex. 1 Read and translate the text.

Ex. 2 Find in the text the English equivalents of the following:

таможенный режим; временно размещать товары; в том же состоянии; улучшить товарный вид; преимущество; закупать большими партиями; выгодные условия; получать прибыль в иностранной валюте; производить товары на экспорт; оптовая торговля; объединять заказы

Ex. 3 Match to make word combinations and translate them:

currency, flow, prices, restrictions, producers, terms, trade, quality, order, bulk, opportunities

cash _______

employment _______

foreign _______

external _______

economic _______

marketable _______

breaking _______

discounted _______

favorable _______

home _______

export _______

Ex.4 Find words with the same suffix or prefix in the text and add one more word.

1. marketable – favorable - dutiable

2. shipment - . . .

3. trader - . . .

4. application - . . .

5. re-export - . . .

Ex. 5 Insert prepositions:

1) to place goods ___ warehouse ___ storage

2) to re-export goods ___ the same state

3) to prepare goods ___ shipment

4) to import goods ___ bulk ___ discounted prices

5) to re-negotiate sales ___ more favorable terms

6) to pay ___ services

Ex. 6 Find in the text nouns formed from the following verbs:

VERB NOUN

to store ____________

to apply ____________

to assist ____________

to facilitate ____________

to employ ____________

to serve ____________

to authorize ____________

Ex. 7 Complete the table with the information from the text:

people	operations	advantages of the warehousing procedure

Ex. 8 Answer the questions:

1. What are the advantages of placing the goods temporarily in customs warehouse?

2. Must the goods be kept in the same state?

3. What operations are permitted in a customs warehouse?

4. Why are these operations carried out by the traders?

5. What privileges do traders enjoy?

6. Who else is interested in this customs procedure?

7. How does the customs warehousing procedure help home producers?

8. How can this procedure facilitate cash flow?

9. Why are the authorities interested in this customs procedure?

Ex. 9 Translate the sentences from Russian into English:

1. Таможенные пошлины не налагаются на товары, помещенные на склад временного хранения.

2. Мы занимались сортировкой и упаковкой товара для дальнейшей отправки его на экспорт.

3. Если товар закупается большими партиями, то цены на него могут быть значительно снижены.

4. После хранения на складе товар может быть оформлен для выпуска в свободное обращение.

5. Дробление большой партии товара и его переупаковка заняли несколько дней, и затем он был продан за границу на очень выгодных условиях.

6. Наша компания объединяет небольшие заказы от отечественных производителей на импорт определенных категорий товаров, закупает их оптом, а затем поставляет заказчикам.

7. Информацию о действующих таможенных режимах можно найти в Таможенном кодексе РФ.

8. Так как платежи за оказание услуг по улучшению товарного вида импортируемой продукции принимаются в иностранной валюте, это способствует поступлению валютных средств в бюджет.

9. Таможенные пошлины не взимаются при условии, что после хранения на складе товар будет отправлен на экспорт.

Ex.10 Get ready to speak on the topic.

Ex. 11 Render the newspaper article.

Drug Smuggler Arrested

Customs officials at a Sheremetyevo-2 airport have arrested a Columbian man accused of smuggling a record amount of cocaine inside his stomach. The man was transporting over a kilo of cocaine to Hong Kong via Russia. The Colombian approached a customs officer and asked him for medical help. The officer suspected drug smuggling and the man was taken to a hospital where an X-ray showed that his stomach was packed with special containers filled with cocaine. It turned out that the man was trying to transport 1148 grams of the drug in 86 containers. If sold, it could bring him over one million dollars. Usually, drug smugglers do not swallow more than 600 grams.

This way of transporting is considered to be especially dangerous as it can kill the smuggler if the covers of containers are destroyed in the stomach.

If found guilty, the man might face up to 20 years in a Russian prison. He claims, however that he was forced to smuggle drugs by the Columbian mafia.