Customs procedure processing outside the customs territory

Processing outside of the customs territory is a customs procedure where goods from the Customs Union are exported from the Customs Union's customs territory for processing operations outside of the Customs Union's customs territory within the established time limits, with full conditional exemption from export customs duties and without the application of non-tariff regulation measures, with the import of processed products into the customs territory afterward.

2. Goods that are processed outside of the Customs Union's customs territory and then actually exported from that territory lose their identity as goods of the Customs Union.

Conditions for submitting items for customs processing outside of the customs jurisdiction

1. It is permissible to process goods outside of the customs territory under the customs procedure, given that:

1) submission of a document on the conditions for processing goods outside the customs territory, issued by the authorized body of the state - a member of the Customs Union and containing the information specified in Article 257 of this Code.

If the purpose of putting goods under the customs procedure for processing outside the customs territory is their repair, the customs declaration may be used as the document described in part one of this subparagraph;

2) The ability of the customs authorities to recognize the goods of the Customs Union in the products of their processing, unless foreign goods are substituted for the products of processing in accordance with Article 259 of this Code.

2. The Commission of the Customs Union has the authority to establish the list of products that are not allowed to be processed through the customs process outside of the customs territory.

3. Goods placed under the customs procedure for processing outside the customs territory for carrying out operations to repair them may be placed under the customs procedure for release for internal consumption with the provision of benefits for the payment of customs duties, taxes, associated with restrictions on the use and (or) disposal of goods.

Processing activities outside the customs territory are covered by 

The following activities are included in the customs protocol for processing goods outside the customs territory:

1) processing or product processing during which the product loses its unique characteristics;

2) the production of products, which includes fitting, installation, assembly, and disassembly;

3) repairing products, including their refurbishment and component replacement.

Identification of commodities from the Customs Union in processed goods

The following techniques can be applied to distinguish the commodities of the Customs Union from the end products of their processing:

1) Applying seals, stamps, digital markings, and other markings to the initial goods of the Customs Union by the declarant, the person processing the goods, or officers of the customs authorities;

2) a thorough description, photograph, and size drawing of the Customs Union's products;

3) a comparison of previously chosen samples, samples of commodities from the Customs Union, and products made from those samples;

4) Making use of any current product marking, such as serial numbers.

There are additional approaches that can be used depending on the nature of the goods and ongoing operations for the processing of the goods, such as by looking at the specific data provided on the use of goods from the Customs Union in the technological process of performing an operation for the processing of the goods as well as on the technology for producing processed products.

Term for processing goods outside of the customs area

1. A maximum of 2 (two) years may be allowed for processing goods outside of the customs area.

1) How long it takes to produce and process products;

2) The time needed to import processed goods into the country and to process them through customs, which completes the customs protocol for processing outside the customs territory.

3. The time limit for processing goods outside of the customs territory may be expanded within the time frame specified in this article's paragraph 1.

4. The laws of the Member States of the Customs Union govern the process for creating and extending the period for processing goods outside of the customs territory.

Document outlining the requirements for processing products outside of the customs zone

1. Any citizen of the state that is a member of the Customs Union who wishes to obtain a document on the terms for the processing of goods outside the customs territory may do so from the authorized body of the state that is a member of the Customs Union.

2. The following information on (about) must be included in the document describing the requirements for processing products outside the customs territory:

the individual to whom the paper was granted;

2) an individual or individuals who will carry out processing tasks immediately;

3) the name, Commodity Nomenclature of Foreign Economic Activity classification, quantity, and price of the goods of the Customs Union and the products of their processing;

4) records attesting to the completion of an international business transaction or other records attesting to the right to possess, use, and/or dispose of commodities outside the context of an international business transaction;

5) norms for the output of processed products;

6) Procedures for performing activities for the processing of goods;

7) methods of identification of products;

8) the phrase used to describe the processing of goods outside of the customs area;

9) the substitution of foreign commodities for processed goods, if permitted;

10) the customs authority (customs authorities), where it is required to submit goods for processing outside the customs territory and finish the customs procedure.

3. In addition to the information specified in this article's paragraph 2, a paper outlining the terms for processing goods outside of the customs territory may also include additional information if it is mandated by the laws of the Customs Union's Member States.

4. The legislation of the Member States of the Customs Union determines the form and method for issuing a document on the conditions for processing goods outside the customs territory, making modifications or additions to it, as well as its withdrawal (cancellation).

5. The customs authority of the state that is a member of the Customs Union, whose authorized body issued a document on the conditions for processing goods outside the customs territory, is responsible for releasing goods from the Customs Union in accordance with the customs procedure for processing outside the customs territory.

Norms for the output of processed products outside the customs territory

1. The rate of output of processed products refers to the quantity or proportion of processed products created after processing a specific volume of Customs Union commodities.

2. The competent authorities of the Member States of the Customs Union may establish standard exit rates for processed goods if processing operations outside the customs territory are carried out in relation to goods whose characteristics practically remain constant, are typically carried out in accordance with clearly established technical requirements, and result in products of processing of unchanged quality.

The competent authorities of the Member States of the Customs Union may establish standard exit rates for processed goods if processing operations outside the customs territory are carried out in relation to goods whose characteristics practically remain constant, are typically carried out in accordance with clearly established technical requirements, and result in products of processing of unchanged quality.

Foreign commodities may be substituted for processed goods.

1. If the processing operation is a repair, as well as when goods are transported by pipeline, it is permitted to substitute processed products with foreign goods that, by their description, quality, and technical characteristics, coincide with processed products.

If it is permitted to replace processed goods with comparable foreign goods, it is also permitted to import those foreign goods up until the point at which the Customs Union's goods are exported outside of its customs territory. Additionally, the Customs Union member states' laws govern how such replacements are to be carried out.

The advantages of placing processed goods in the customs process for the release to domestic consumption

If the products that are processed are put under the customs procedure to allow approval for consumption in the domestic market Import customs duties and taxes are due in the order:

1.) how much import duties payable is calculated on the price of processing goods.

If it isn't feasible to establish the costs of processing the goods It is determined by an amount that is the sum of the value of customs for processed goods and the value at which customs is applied to products that are subject to the customs procedure to process outside the customs area, in the event that these products were shipped out of within the Customs Union's customs area. Customs Union on the day the

processed goods were placed in the customs territory. The procedure to release domestically consumed goods.

If certain rates of import customs duties are in place for processed products and processing, the amount of customs duties to be paid is determined by the amount of customs duty , calculated as a certain rate for the products processed, based on the proportion to the amount of the processing operation to the value of customs for the products processed such that the items that were processed came under the customs procedure to allow the release of domestic consumption.

2.) how much value added tax to be paid is calculated using the cost of processing, which is, in the absence of documents that confirm the cost of these processes, could be determined by what is different between value of customs for processed goods and the value at which customs officers assess processed goods that are exported for processing

3.) The amount due to tax on processed products is due in full in the event that the processing process is repaired to export products.

Features of placing goods under the customs 

procedure for processing outside the customs territory under the customs procedure for export

1. If you are placing items under the customs process for processing outside of the customs territory in the customs procedure for export the customs value of the product along with (or) the physical attributes (quantity or weight, or other attributes) and export customs duty rates, exchange rates, determined in accordance with the laws of a member state in the Customs Union, are determined at the time of the registration by the customs authority of the declaration made by the customs authority to allow the import of goods to be subjected to the customs process for processing outside of the customs territory.

2. From the sums of customs duties on exports paid for the import of goods that are placed in the customs procedure to be processed outside of the customs territory of an export customs process, the interest will be charged, when a deferral of their payment until the date of the registration by the customs authority of the declaration on customs was granted for these sums, filed to allow the placing of goods under the customs procedure to process outside of the customs territory determined in accordance with the procedure outlined in the laws of the states that are members that are members of the Customs Union.