Chapter 19. CUSTOMS ECONOMIC PROCEDURES
§4 Temporary Importation
Article 209. Content of the Customs Procedure
Temporary importation constitutes a customs procedure under which foreign goods are utilised 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.
Article 210. Terms of Placement of Goods under the Customs Procedure
1. The customs procedure of temporary importation will be permitted when the customs authorities are capable of identifying the imported merchandise at the instance of their re-exportation from the customs territory of the Russian Federation except the cases in accordance with international treaties, to which the Russian Federation is party, such goods may be substituted by the same category of goods.
2. The customs authorities have the right demand that declarant of the temporary importation procedure provide adequate guarantees of his (or her) proper fulfilment of the terms and conditions set forth by this Customs Code (Article 160) including the declarant’s commitment with regard to the goods re-exportation.
3. Subject to the customs procedure of temporary importation may also be foreign goods, which earlier enjoyed the status of other customs procedure provided all terms and conditions stipulated by this Customs Code are observed.
Article 211. Restrictions on Use and Disposal of Temporarily Imported Goods
1. Temporarily imported goods may only be used by the person who has been issued a permit for temporary importation of goods.
2. The customs authorities may permit transfer of temporarily imported goods to another person who will assume the responsibility of the goods declarant as per Article 126 of this Customs Code.
The customs authorities may permit transfer of temporarily imported goods to another person provided said person assumes full responsibility before the customs authorities for observing the terms and conditions stipulated by the customs procedure of temporary importation.
Note: the person who was issued the initial permit for temporary importation shall be obliged to disburse all the duties and taxes for the period when he or she was using the goods under the customs procedure of temporary importation provided said goods were subject to partial conditional exemption from customs duties and taxes, as stipulated by Item 2 of Article 212 of this Customs Code. In case observance of the temporary importation procedure has to be ensured by requisite guarantees (Article 160), the person, to whom said temporarily imported goods are transferred, shall be obliged to formalise respective documents to his (or her) name. This person will enjoy the rights and abide by the responsibilities stipulated by this Customs Code for the person who is issued a permit for temporary importation of goods from the day of authorisation of transfer of the temporarily imported goods by the customs office concerned.
3. The temporarily imported goods ought to be preserved in their original state, except the changes caused by the goods’ natural wear and diminution under normal conditions of haulage (transportation), storage, and use (operation). The temporarily imported goods may be subjected to the operations requisite for their preservation, including repairs (except overhaul and upgrading), technical servicing, and other operations, which may be required for maintaining the goods consumer properties and preserving them in the same state as they were on the day of their placement under the customs procedure of temporary importation.
4. Disposal of the temporarily imported goods by the methods other than those stipulated by this Article are prohibited.
5. Transfer of temporarily imported goods to another person pursuant to Item 3 herein will neither suspend nor extend the time term of their temporary importation procedure.
Article 212. Application of Customs Duties and Taxes
1. The categories of goods, which may be temporarily imported with complete conditional exemption from customs duties and taxes, as well as the conditions for such exemptions including the maximum duration of the period of goods temporary importation, shall be determined and listed by the Government of the Russian Federation.
Complete conditional exemption from customs duties and taxes will be with regard to goods subject to the temporary importation if this customs procedure does not inflict any substantial economic damage on the Russian Federation as, in particular, in the following instances:
- subject to temporary importation are containers, pallets, and various kinds of multiple-use packaging;
- if temporary importation is effected in the framework of development of foreign trade relations, or international relations in the field of science, culture, cinematography, spots and tourism;
- if temporary importation is effected for the purpose of humanitarian aid.
2. Other categories of goods, as well as the cases of non-observance of the terms and conditions of complete exemption from customs duties and taxes stipulated by Item 1 herein shall be subject to partial conditional exemption from customs duties and taxes. The goods, which have been granted partial conditional exemption from customs duties and taxes, shall be charged the fees equivalent to 3 per cent of the customs duties and taxes, which would be levied on such goods for each complete and incomplete calendar month of their stay in the customs territory of the Russian Federation if said goods were released for free circulation.
3. In the event of the goods partial conditional exemption from customs duties and taxes, the person holding a permit for the goods temporary importation may opt to make requisite dutiable payments either at the instance of placement of goods under the customs procedure of temporary importation or periodically. Periodicity of payments of customs duties and taxes shall be determined by the holder of a permit for the goods temporary importation in agreement with the customs authorities concerned.
Note: specific terms of disbursement of customs duties and taxes must be determined proceeding from the premise that all dutiable payments should be made before the beginning of respective period.
4. The overall amount of customs duties and taxes levied on goods at the instance of their temporary importation with a partial conditional exemption from customs duties and taxes may not exceed the amount of customs duties and taxes which would be levied on the same goods on the day of their placement under the temporary importation procedure if those goods were released for free circulation, disregarding any penalty fees due for delayed payment of customs duties and taxes and the banking interest that may be charged pursuant to the requirements the forth paragraph of Item 2 of Article 214 of this Customs Code.
5. In case the amount of customs duties and taxes levied on the goods enjoying partial conditional exemption from customs duties and taxes becomes equal to the amount of customs duties and taxes that would be charged to the goods if they were released for free circulation on the day of their placement under the customs procedure of temporary importation, such goods shall be regarded as released for free circulation provided said goods are not liable for any economic restrictions pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities or the restrictions, which applied to the goods on the day of their placement under the customs procedure of temporary importation, have been rescinded.
6. In case of re-export of temporarily imported goods or their placement under other customs procedures, the amounts of customs duties and taxes, which were disbursed upon the goods’ partial exemption from customs duties and taxes, shall not be reimbursed.
Article 213. Time Terms of Temporary Importation
1. The duration of the temporary importation procedure shall be two years.
The Government of the Russian Federation may establish shorter and longer the terms of temporary importation for individual categories of goods than those stipulated by Item 1 herein.
The merchandise comprising basic production assets (facilities) provided they are not owned by the Russian persons who are using them in the customs territory of the Russian Federation may be placed under the temporary importation procedure involving partial exemption from customs duties for 34 months.
2. The duration of goods temporary importation shall be determined by the customs authorities in compliance with the terms and conditions specified in Item 1 herein proceeding from the application for a permit for temporary importation of goods submitted by an interested person with consideration of the circumstances of such importation.
3. Upon a motivated request of a person who has been issued a permit for the temporary importation procedure in the absence of any breaches of the terms and conditions stipulated by this Chapter, the duration of temporary importation of goods may be prolonged upon a resolution by the customs office concerned within the terms stipulated by Item 1 herein.
Article 214. Completion and Suspension of the Customs Procedure
1. All merchandise shall be exported from the customs territory of the Russian Federation or declared for a different customs procedure in accordance with this Customs Code not later than on the date of expiry of the term of temporary importation prescribed by customs authorities (Article 213).
2. The customs procedure of temporary importation may be completed by goods release for free circulation.
In case the customs procedure of temporary importation is completed by goods released for free circulation, the merchandise customs value and quantities shall be determined as of the dale of its placement under the customs procedure of temporary importation whereas the rates of customs duties and taxes, as of the date of the declarant’s application for the customs procedure for the goods release for free circulation, except for the case stipulated by Item 5 or Article 212 of this Customs Code. The declarant has the right to claim deductions of goods customs value and/quantities due to its natural wear and/or diminution under normal conditions of haulage (transportation), storage and use (operation), as well resulting from an accident or force majeure. The goods customs value and/or its quantities may be rectified based on true and documentarily certified information submitted by the declarant to customs authorities.
In determining the amount of customs duties and taxes payable at the instance goods release for free circulation, customs authorities take into account the amounts disbursed for the goods throughout their partial exemption from customs duties and taxes as per Item 2 and 3 of Article 212 of this Customs Code.
At the instance of release of free circulation of the goods which have enjoyed partial conditional exemption from customs duties and taxes, the permit holder shall be obliged to repay the interest for the period when said exemption was in force, which interest shall be charged to the amounts of customs duties and taxes that would have been applicable to the goods if redemption of said amounts were to be made by instalments starting from the day of application of partial exemption from customs duties and taxes, except the case stipulated in Item 5 or Article 212 of this Customs Code.
3. The term of the customs procedure of temporary importation may be suspended:
- in case the temporarily imported goods have been sequestered or withdrawn in accordance with law of the Russian Federation;
- in case the temporarily imported goods have been placed for storage in a bonded warehouse as per Item 3 of Article 217 of this Customs Code;
- upon a request by an interested person holding the permit for temporarily importation made at the instance of placement of the temporarily imported goods, which were partially exempted from customs duties and taxes, under another customs procedure, which does not warrant the goods release for free circulation.
When the period of suspension expires, the term of the temporary importation procedure shall be resumed.
Upon resumption of the term of the temporary importation procedure, the interests whose charging and redemption are stipulated by this Chapter shall be neither charged nor redeemed for the period of suspension of the term of the customs procedure of temporary importation.
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