Decision No. 32 of the Council of the Eurasian Economic Commission of April 12, 2016 on Approval of the Rules for Applying the Procedure of Deferred Determination of Customs Value of Goods (the Rules) enters into force on May 15, 2016. The Customs Union Customs Code and the Agreement on Determination of Customs Value of January 25, 2008 make it possible to defer determination of the exact customs value in cases where documents confirming exact information needed to calculate the customs value are not available at the time of declaration.
Such cases may occur in the import of exchange commodities if the price is set on a stock exchange quotation date that comes later than the date the goods are declared; when additional assessments the amount of which is unknown on the date of declaration must be included in the customs value (for example, if payments for use of intellectual property apply to the imported goods (royalties, patents, copyright) or a portion of the income from subsequent sale of the goods is transferred to the seller); when the currency in which the goods are paid for differs from the currency in which the price is set, and the exchange rate for conversion is set on a date after the goods have been declared; and in many other international trade transactions.
However, the decision of the Eurasian Economic Commission states that the Rules for deferred determination of customs value may be applied only in cases where exchange commodities are imported, if “in accordance with the terms and conditions of the foreign trade contract... no fixed price payable for those goods is set, but the price of the goods depends on exchange prices (exchange quotations, exchange indexes) and the procedure (algorithm, formula) agreed upon by the parties to the foreign trade contract for calculating the price of the goods at exchange prices on the specific date set in that foreign trade contract after the registration date of the declaration for the goods.”
According to the Rules, customs value is determined in two stages:
- a preliminary customs value amount is stated at the time of customs declaration; the amount is calculated on the basis of exchange prices on the date is closest to the date of registration of the declaration for the goods, based on the calculation formula set forth in the contract;
- the exact amount of the customs value that is determined based on the price actually paid or payable for the imported goods and is calculated on the basis of exchange prices on the date set by the contract is declared after the goods have been released.
The time period for determining and declaring the exact amount of the customs value is established depending on the terms of the contract, if it contains information about the time period during which documents supporting the exact customs value may be obtained, and cannot be more than two months from the date of registration of the declaration for the goods.
At the declaration stage customs charges are calculated and payable based on the preliminary customs value amount, while at the stage after release of the goods they are calculated and payable based on the exact amount. If the amount of the customs charges is higher at the end of the second stage, then additional charges are payable. They are due on the date of declaration of the exact customs value, and interest is not charged for deferred payment. If the exact customs value is lower than the preliminary value, then the declarant is entitled to a refund of excess customs duties and taxes paid by submitting a request for a refund to customs.
The customs authorities check the customs value in the normal way both at the stage of declaring the preliminary customs value and after the goods are released.