- Procedure and process for Inward processing at the customs of Georgia
- What is a processing operation under the customs legislation of Georgia?
- When is an Inward processing operation used?
- Deadlines and end of procedures for Inward processing operations
- When is Outward processing used?
- Summary
Read more information about Customs code of Georgia
Inward processing is one of the important procedures and one of the issues that we need to be aware of when dealing with customs and customs procedures. Also, this information will help business owners and entrepreneurs who import goods from a foreign country to Georgia.
In today's article, we will explain in detail what the inward processing procedure means and you will learn all the details related to it and why the help of a customs broker will be useful for you.
Procedure and process for Inward processing at the customs of Georgia
Commodity processing refers to the processing of goods, which means the assembly, assembly and fitting of goods to other goods. Production of goods - for example, if we import a specific product and from there we want to produce another, new product. Repair of goods - refers to restoring goods and bringing them to working condition. And finally, in certain cases, the destruction of the goods.
The operation of processing goods is related to the promotion of the business that carries out the production of goods or services. This procedure itself is very often used, because in Georgia we have directions that are very important for business development, it can be alcohol production, tailoring, orders and so on, everything that contributes to the development of the country's economy.
What is a processing operation under the customs legislation of Georgia?
By protecting the interests of business owners and entrepreneurs, which are also related to economic interests, the goods processed with the consent of the customs authority can be placed in the customs warehouse, of course, in compliance with the norms established by the legislation of Georgia. It is important that this process does not adversely affect the implementation of customs supervision. In such a case, the goods are not considered to be under the customs procedure.
When is an Inward processing operation used?
As mentioned, no payment is made during the Inward processing procedure. In exchange for this, the customer is given a guarantee - that his goods/raw materials will be insured against damage. There are exceptions to the guarantee, which are defined by the law. This is Order 257 of the Minister of Finance, which empowers the Minister not to guarantee certain goods.
By using the inward processing procedure, it is possible to apply one or more processing operations to foreign goods, which do not lead to the occurrence of an import duty obligation and the application of a safeguard measure, unless the goods are imported and exported from customs.
A necessary condition for using the inward processing procedure is that the goods are not economically viable.
In the Inward processing procedure, the declaration of goods is carried out by submitting a declaration, and it must also be substantiated who performs the processing of goods, the quantity and description details of the goods, the knowledge of the terms and means of processing, and the knowledge of the calculation methods.
Deadlines and end of procedures for Inward processing operations
The term of the Inward processing procedure should not exceed 3 years. The term can be extended based on the declarant's motivated application.
After the expiration of the processing period, the goods declaration is again included in the amendment and a new period is assigned.
Use of equivalent goods in the Inward processing procedure
What are equivalent goods?
Goods of Georgia, which are used to obtain a processing product instead of imported goods declared in the customs regime of processing goods in the customs territory.
Based on the person's application, the customs authority may give consent and that the equivalent goods be placed under the inward processing procedure.
The use of equivalent goods is not allowed if the procedure uses only the actions necessary for the improvement of the goods or preparatory actions for the sale of the goods.
If it is determined that the goods released into free circulation have a defect or its appearance or quantity does not match the terms of the transaction, it is returned to the supplier or another specified person, based on the application of the interested person, the customs body gives the person the right to turn the goods into the Inward processing (including destruction) procedure.
The Inward processing procedure will end if the goods or products included in this procedure are subject to another customs procedure, are taken out of the territory of Georgia, and are disposed of without waste. transferred to the state.
When is Outward processing used?
One or more operations may be performed during the application of the external processing procedure.
When the processed product is brought into the customs territory of Georgia, it can be fully or partially released into free circulation.
For product identification, the following is used:
- marking goods with a stamp or digital or other marking;
- Detailed description, photography or large-scale depiction of goods; examination or analysis of a sample and/or sample of the goods for the purpose of further comparison of its results;
- Serial numbers or other markings displayed by the manufacturer on the goods;
- A document confirming the implementation of processing operations for goods included in the internal processing procedure;
- Other means of identification, which take into account the use of modern technologies
The declarant should submit substantiated data:
- About the person who directly carries out the goods processing operation;
- About the description, quality and quantity of the goods, processed product, balance and waste to be converted in the external processing procedure;
- on processing operations, their implementation dates and means;
- on means of identification of unprocessed goods in the processed product;
The period of completion of the Outward procedure should not exceed 3 years. However, it can be extended based on the declarant's requirements.
Summary
Understanding the responsibilities associated with customs business is very important, especially if you are a beginner in this field and taking your first steps.
GeorgiaCB's experienced team is ready to help you with everything you need to get the job done in a timely and quality manner.