The rules, provisions, and requirements contained in this Chapter shall apply to all customs operations performed with regard to goods and means of transport conveyed across the customs border.

Article 59. Customs Registration Procedures

1. The customs registration procedures shall be carried out in accordance with the provisions contained in this Customs Code, the other legal statutes of the Russian Federation adopted pursuant to this Customs Code, as well as the normative legal acts issued by the Federal Customs Authority.

2. The requirements laid by customs authorities in the process of customs registration ought to be properly substantiated and confined to the requirements set forth in by this Customs Code for ensuring the observance of the customs legislation of the Russian Federation.

3. The procedures and methods of customs registration shall be applied depending on the category of goods conveyed across the customs border, the kinds of transportation used for its conveyance (air, sea, river, rail, and other transport), and the category of persons responsible for the conveyance of goods and means of transport.

4. The customs procedures shall be applied regardless of the goods’ country of origin, the country of departure or the country of destination.

Article 60. Commencement and Completion of Customs Registration Formalities

1. The customs registration shall commence:

- during importation of goods: at the instance when a person submits to customs authorities a preliminary customs declaration or other documents specified in Article 72 of this Customs Code (depending on the sequence of said actions), or at the instance when a person makes a verbal statement or performs other actions indicative of his (or her) intention to fulfil the customs registration formalities, as in the cases stipulated by this Customs Code.

- during exportation of goods: at the instance when a person submits a customs declaration, or at the instance when a person makes a verbal statement or performs other actions indicative of his (or her) intention to fulfil the customs registration formalities, as in the cases stipulated by this Customs Code.

2. The customs registration formalities shall be completed upon the fulfilment of all customs operations stipulated by this Customs Code, which are required for subjecting goods to customs procedures, for placing goods under the customs procedural status, or for terminating of the effect of such status, as well as for calculating and levying Customs duties.

Article 61. Permission for Customs Operations by the Customs Authorities

1. In case this Customs Code stipulates that specific customs operations require a permission issued by the customs authorities, such permission shall be issued without delay as soon as an authorised customs officer has made sure that the preconditions set forth by this Customs Code for the issuance of such a permission have been fulfilled, but not later than the time limit prescribed for the customs declaration control, verification of other documents and goods control (Item 1 or Article 359).

In case verification of fulfilment of the preconditions required for the issuance by the customs authorities of a permission to perform customs operations can only be completed after the issuance of said permission without causing any obstructions to the customs control procedures and/or if violations of the customs legislation of the Russian Federation revealed in the process of subsequent non-observance of such conditions may be eliminated, permission for the performance of such customs operations is issued before such verification.

2. This Customs Code stipulates that the customs authorities issue a written permission for the performance of said customs operations whereas the issuance order of such permission and its form are established by the Federal Customs Authority.

In other situations, the customs authorities’ permission to perform customs operations will constitute a non-acceptance by the customs authorities of a resolution with regard to a denial of permission to perform customs operations or discharge by the customs authorities of respective actions in case this Customs Code specifies a time limit for the adoption of such a resolution or stipulates such actions.

Article 62. Time and Place of Customs Registration with Regard to Goods and Means of transport

1. The customs registration of goods shall be performed at the places of location of the customs authorities during their working hours.

2. Upon a motivated request by a declarant or another interested person, customs registration formalities may be completed outside the places of location of the customs authorities and beyond their working hours as per articles 406 and 407 of this Customs Code.

Article 63. Documents and Information Required for the Fulfilment of Customs Registration

1. At the instance of undergoing customs registration, the persons defined by this Customs Code shall be obliged to present to the customs authorities all the documents and data, which are required for fulfilling customs registration.

In the process of fulfilling customs registration formalities, the customs authorities may only request the documents and the information which are required for the observance of the customs legislation of the Russian Federation and presentation of which is stipulated by the provisions of this Customs Code.

2. The lists of documents and information, as well as demands to the information required for fulfilling specific customs registration formalities and subjecting merchandise to the appropriate customs procedural status are defined by the Federal Customs Authority in accordance with this Customs Code. The Federal Customs Authority has the right to shorten the lists of documents and information which are required for the performance of customs registration with consideration of the categories of persons conveying goods and means of transport, the categories of goods, the purpose of goods, the requirements of customs procedural statuses, or proceeding from the kind of transportation used for conveying merchandise across the customs border. The time terms for the presentation of the documents and information required for the fulfilment of customs registration formalities are determined by the Federal Customs Authority unless this Customs Code stipulates different provisions thereto.

3. The lists of documents and information, which are required for fulfilling specific customs registration formalities, shall be liable for official publication. The normative legal acts and statutes issued by the Federal Customs Authority establishing the lists of documents required for the fulfilment of customs registration shall go into effect not earlier than within ninety days from the day of their official publication with the exception of the cases stipulated by the Sub-Items 2) and 3) of Item 3 of Article 5 of this Customs Code.

4. The forms of customs documents shall be determined by the Federal Customs Authority unless this Customs Code or other statutes of the Russian Federation contain other provisions thereto.

5. With a view to simplify and expedite the performance of customs registration the Federal Customs Authority shall conclude agreements with the customs authorities of other countries on mutual acceptance of documents used for customs clearance purposes.

6. Customs authorities shall not refuse to accept the documents required for the fulfilment of customs registration due to their minor inaccuracies which do not affect the value of payable customs duties, do not influence decision-making of the customs authorities with regard to the application of the prohibitions and restrictions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities. In case the customs authorities refuse to accept such documents, they shall be obliged to notify the person who had presented them about the reasons for their refusal. Upon the person’s request, the customs authorities concerned shall provide said notification in writing.

7. The documents required for the fulfilment of customs registration may be either presented in the original or as their copies authenticated by the person submitting them, by the declarant, by the authorities who have issued those documents, or as their notarised copies. In the event of presentation of copies of said documents authenticated by the person submitting them or by the declarant the customs authorities, if necessary, may verify the compliance of the copies of said documents with their originals after which the originals are returned to the person who presented them.

8. The documents required for fulfilling customs registration formalities may be presented in their electronic versions in accordance with the provisions of this Customs Code.

Article 64. Presence of Interested Persons of their Representatives during Customs Registration

Upon a request by the customs authorities, the interested persons or their representatives may be obliged to attend the fulfilment of customs registration formalities.

Article 65. Language of Customs Registration

The customs registration formalities, including the filling in of forms required for customs control purposes, shall be carried out in the Russian language, except the cases stipulated by this Customs Code. The Federal Customs Authority has the powers to specify other cases when customs authorities may accept and apply for customs purposess the documents and information in a foreign language in which said customs officers are adequately proficient.

Article 66. Customs Clearance and Control Measures Exercised by Other State Bodies

Customs clearance may only be completed after the goods have undergone sanitary quarantine, quarantine, phyto-sanitary, veterinary and other forms of the state control applied to the goods imported to or exported from the customs territory of the Russian Federation if the goods are liable for such control in accordance with federal law and the applicable statutes of the Russian Federation with consideration of the provision contained in Item 3 of Article 77 in this Customs Code.

Article 67. Priority Order of Customs Control Procedures

At the instance of importation to or exportation from the customs territory of the Russian Federation any merchandise shipment intended for liquidating the consequences of natural calamities, accidents and disasters, as well as perishable products, live animals, radioactive materials, international mail and express cargo, information and other mass media materials, etc., customs control procedures shall be carried out in a simplified manner and in a priority order.

Article 68. Special Simplified Customs Control Procedures for Specific Persons

1. The Federal Customs Authority has established special simplified customs control procedures for the persons:

- who on the day of placing their request to customs authorities to award them simplified customs control procedures do not have any rulings pending for their administrative offences related to customs system, as stipulated by Articles 16.1, 16.2, 16.3, 16.9, 16.15, 16.17, 16.18, 16.20, 16.22 of the Code of the Russian Federation on Administrative Offences;

- who use the system of registering their commercial documents in accordance with the procedures established by the Federal Customs Authority and use the filing methods enabling customs authorities to compare the information contained in their files with the information presented to customs authorities in the process of subjecting their goods to customs control;

- who have been involved in external economic operations for at least three years.

2. The person who claims special simplified customs control procedures shall be obliged to submit to a customs office a written request to apply special simplified customs control procedures. This written request should also contain information about the applicant and his (or her) external economic activities. The applicant should also submit a written obligation to keep the system of registration of his/her commercial documents in accordance with the procedures established by the Federal Customs Authority and use the filing methods enabling the customs authorities to compare the information contained in his/her files with the information presented to the customs authorities in the process of customs control, as well as the applicant’s written agreement to ensure access of customs officers to said registration system.

3. Special simplified customs control procedures shall be accorded to the persons who are involved in importation of merchandise to the customs territory of the Russian Federation. Such simplified customs control procedures may include submission of periodic customs declarations (Article 136), release of merchandise upon presentation of the details required for identification of goods (Article 150), administration of customs clearance at the installations belonging to such persons, storage of goods in such persons’ warehouses, as well as other simplified procedures stipulated by this Customs Code.

4. Special simplified customs control procedures cannot contain any provisions relieving persons of the requirement to observe the terms and conditions set forth by this Customs Code and other statutes of the Russian Federation with regard to timeliness and completeness of disbursement of customs duties, observance of restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, as well as observance of requisite customs procedures.

Chapter 9.
ENTRY OF MERCHANDISE TO THE CUSTOMS
TERRITORY OF THE RUSSIAN FEDERATION

Article 69. Timing and Place of Entry of Merchandise and Means of Transport to the Customs Territory of the Russian Federation

1. Entry of merchandise and means of transport to the customs territory of the Russian Federation is only permitted at the border gates at the State Border of the Russian Federation established in accordance with the applicable Russian regulations, during the working hours of the customs offices (Article 407). The merchandise and means of transport may also enter the customs territory of the Russian Federation in other places in compliance the Federal Law on the State Border of the Russian Federation.

The Government of the Russian Federation has the right to set up special customs border gates for conveyance of special categories of merchandise across the State Border of the Russian Federation.

2. Upon crossing the customs border, the carrier shall be obliged to deliver the merchandise and/or the means of transport imported by him (or her) to the customs border office or the other place specified in Item 1 herein (places of entry) and present them for inspection to the customs authorities. Any changes to the state of merchandise or damage of its packaging, as well as substitution, removal, destruction of damage of seals, stamps and other means of identification of goods are prohibited.

3. The customs authorities shall be obliged to use generally accessible forms for presenting information pertaining to the location of the customs border gates established at the State Border of the Russian Federation, information on the imposed restrictions and prohibitions, as well as information on the working hours of customs offices.

4. The provisions of this Article shall not apply to the merchandise carried aboard seagoing vessels, riverboats, and aircraft crossing the customs territory of the Russian Federation without making a stop at a seaport or air terminal situated in the customs territory of the Russian Federation.

Article 70. Measures Taken in Case of Accidents, Force Majeure, or other Circumstances

1. In the instance when transportation of merchandise from the customs border gate to the place of its destination has been interrupted, or a seagoing vessel (riverboat) or aircraft carrying the merchandise has been forced to make an emergency landing on the territory of the Russian Federation due to an accident, force majeure, or other circumstances obstructing further haulage of goods, arrival at or landing in the prescribed port, the carrier shall be obliged to take every measure for ensuring safety of such merchandise and means of transport while transporting them, notify the nearest customs office of the occurrence and of the goods location, deliver the merchandise or ensuring its delivery (if the carrier’s means of transport is damaged) to the nearest customs office or another place designated by the customs authorities.

2. The customs authorities shall not be liable for reimbursing any expenses incurred by the carriers or other persons due to their fulfilment of the requirements set forth herein.

Article 71. Preliminary Notification of Customs Authorities of the Entry of Merchandise and/or Means of Transport to the Customs Territory of the Russian Federation

The administration in charge of the customs border-gate facilities at the State Border of the Russian Federation (the chiefs of an air-, sea-, or railway terminals) shall be obliged to notify the customs authorities of the place and time of the expected arrival of means of transport at the border gate at the State Border of the Russian Federation in the order coordinated by the administration of said terminal and the customs office concerned in accordance with the Federal Law on the State Border of the Russian Federation.

Article 72. Submission of Documents and Information in instances of the Entry of Merchandise and Means of transport to the Customs Territory of the Russian Federation

1. Upon entry of goods and means of transport to the customs territory of the Russian Federation their carrier shall be obliged to submit to the customs authorities the documents and the information stipulated by Articles 73 through 76 of this Customs Code depending on the category of a means of transport effecting said international haulage.

The Federal Customs Authority has the right to shorten the lists of documents and information details specified in Articles 73 through 76 of this Customs Code.

The customs authorities have no right to demand that the carrier submit to them any other information.

In case the documents specified in Articles 73 through 76 of this Customs Code do not contain all the required information, the carrier shall be obliged to furnish the missing details by way of submitting other available documents or providing additional documents compiled by the carrier at his (or her) discretion.

2. The carrier has the right to submit to the customs authorities the documents and other information pertaining to merchandise and/or means of transport in anticipation of their actual entry to the customs territory of the Russian Federation.

3. The carrier has the right to submit the required documents (some of said documents) in their electronic versions as is stipulated by this Customs Code and in the order determined by the Federal Customs Authority.

4. In case the carrier present to customs authorities the documents in a foreign language, the customs authorities, in case of need, have the right to demand that the information details stipulated by Articles 73 through 76 of this Customs Code be translated into Russian.

5. The documents and information may be submitted to the customs authorities by any person authorised to act on behalf of the carrier.

Article 73. Documents and Information Submitted to the Customs Authorities in instances of the International Shipment of Goods by Motor Vehicle

1. In the event of the international haulage of goods by motor vehicle the carrier shall be obliged to submit to the customs authorities the following information:

(1) the state registration number of the motor vehicle;

(2) the carrier’s name and address;

(3) the name of the country of departure and of the country of destination;

(4) the name and address of the goods dispatcher and recipient;

(5) the goods seller and recipient as stated in the documents in possession of the carrier;

(6) the number of freight cases, their marking and package categories;

(7) the goods description including their codes stipulated by the Harmonised Commodity Description and Coding System or the Nomenclature of Goods subject to Foreign Trade specifying at least four initial digits;

(8) the merchandise gross weight (in kilograms) or volume (in cubic metres), except big-size articles;

(9) the merchandise whose importation to the Russian Federation is prohibited or restricted;

(10) statement of the date and of the location where the international motor waybill was compiled.

2. The carrier shall be obliged to furnish the details specified in Item 1 herein by way of submitting to the customs authorities the following documents:

(1) the documents pertaining to the means of transport;

(2) the international motor waybill;

(3) the commercial documents pertaining to transported merchandise in possession of the carrier.

Article 74. Documents and Information Submitted to the Customs Authorities in instances of the International Shipment of Merchandise by Seagoing Vessel (Riverboat)

1. In the event of international haulage of merchandise by a seagoing vessel (riverboat), the carrier shall be obliged to submit to the customs authorities the following information:

(1) the vessel’s port of registry and its national identity;

(2) the vessel’s name and description;

(3) the skipper’s name;

(4) the name and address of the shipbroker;

(5) the number of passengers on board, their full names, citizenship, dates and places of birth, their port(s) of embarkation and the port(s) of disembarkation;

(6) the crew size and composition;

(7) the name of the port of departure and of the ports of call;

(8) the merchandise descriptions and overall quantity;

(9) the number of cases / containers, their marking and types of packaging;

(10) the names of the goods’ port of loading and port of unloading;

(11) the numbers of bills of lading and other documents confirming the availability and the contents of the sea- / river shipment contract with regard to the goods subject to unloading at the given terminal;

(12) names of the ports of unloading of the goods remaining on board the vessel;

(13) names of the goods’ initial ports of departure;

(14) description and quantity of stores on board the vessel;

(15) description of the goods’ location on board the vessel;

(16) presence (absence) on board the vessel of international postal items;

(17) presence (absence) on board the vessel of the merchandise whose importation to the Russian Federation is prohibited or restricted; including currency of the Russian Federation and currency valuables in possession of crewmembers, the medical preparations containing narcotics, strong-action medicines, psychotropic and poisonous substances;

(18) presence (absence) on board the vessel of dangerous merchandise, including weapons and ammunition.

2. The carrier shall be obliged to furnish the details specified in Item 1 herein by way of submitting to customs authorities the following documents:

(1) the general declaration;

(2) the ship’s manifest;

(3) the declaration of stores on, board the vessel;

(4) the declaration of the crew`s personal effects;

(5) the muster-roll;

(6) the list of passengers on board;

(7) the document prescribed by the World Postal Convention;

(8) the bills of lading and other documents confirming the availability and the contents of the sea- / river shipment contract.

Article 75. Documents and Information Submitted to Customs Authorities in instances of the International Shipment of Merchandise by Air Transport

1. In the event of international shipment of merchandise by air transport the carrier shall be obliged to submit to the customs authorities the following information:

(1) the aircraft national identity and registration marking;

(2) the flight number, the flight plan, the point of departure and the place of destination;

(3) the name of the aircraft operator;

(4) the number the aircraft crew-members;

(5) the number of passengers on board, their full names, the port of embarkation and the port of disembarkation;

(6) the merchandise categories;

(7) the numbers of the airway bill, the number of articles per airway bill;

(8) the names of air terminals of loading and unloading of the merchandise;

(9) quantity of catering stores loaded to or unloaded from the aircraft;

(10) presence (absence) on board the aircraft of international postal items;

(11) presence (absence) on board the aircraft of the merchandise whose importation to the Russian Federation is prohibited or restricted; including currency of the Russian Federation and currency valuables in possession of crewmembers, the medical preparations containing narcotics, strong-action medicines, psychotropic and poisonous substances.

2. The carrier shall be obliged to furnish the details specified in Item 1 herein by way of submitting to customs authorities the following documents:

(1) the carrier’s standard documents stipulated by the international treaties in the field of civil aviation (general declaration);

(2) the document containing information on the merchandise carried on board the aircraft (the airway bill);

(3) the document specifying catering stores on board the aircraft;

(4) the air waybills;

(5) the document specifying the passengers on board and their luggage (the passenger manifesto);

(6) the document prescribed by the World Postal Convention.

Article 76. Documents and Information Submitted to Customs Authorities in instances of the International Shipment of Merchandise by Railway Transport

1. In the event of international haulage of merchandise by railway transport the carrier shall be obliged to submit to customs authorities the following information:

(1) the name of address of the goods’ dispatcher;

(2) the name of address of the goods’ recipient;

(3) the name of the railway terminal of departure and the terminal of destination;

(4) the number of freight cases, their marking and package categories;

(5) the merchandise description including their codes stipulated by the Harmonised Commodity Description and Coding System or the Nomenclature of Goods subject to Foreign Trade specifying at least four initial digits;

(6) the goods gross weight (in kilograms);

(7) the container identification numbers.

2. The carrier shall be obliged to furnish the details specified in Item 1 herein by way of submitting to customs authorities the following documents:

(1) the international waybill;

(2) the commercial documents pertaining to transported merchandise in possession of the carrier.

Article 77. Operations with Goods and Means of transport at a Customs Terminal

1. After merchandise has arrived and the documents and information pertaining to the consignment presented to the customs authorities this merchandise can be unloaded, transhipped (Article 78), placed at a temporary storage warehouse (Article 12), declared as subject to a specific customs procedural status, or to domestic transit.

2. Merchandise acquires the status of temporary storage from the moment of its presentation for inspection at the customs border gate. Upon expiration of the time limit allocated for temporary storage (Article 103) the customs authorities shall dispose of said merchandise in compliance of the provisions of Article 41 of this Customs Code.

3. In case the customs authorities are involved in the inspection of merchandise whose importation to the territory of the Russian Federation is restricted or prohibited pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities whereas the application of such restrictions or prohibitions the application is in the competence of other authorised state bodies, the customs authorities shall ensure coordinated and concurrent execution of such measures.

4. The means of transport shall be subject to customs control formalities in accordance with the provision of Chapter 22 of this Customs Code.

Article 78. Unloading and Transhipment of Merchandise at a Customs Terminal

1. Unloading and transhipment of merchandise from the means of transport upon its entry to the customs territory of the Russian Federation shall be carried out at specially equipped places at a customs terminal during the customs authorities’ official working hours.

Unloading and transhipment of merchandise at other places and/or beyond the customs office’s established working hours may only be sanctioned by the customs authorities upon a request made by an interested person in accordance with the provisions of Articles 406 and 407 of this Customs Code.

2. The merchandise unloading and transhipment areas constitute a customs control zone. Such areas should be set up and equipped so as to ensure safety of merchandise and preclude any access to them of the persons who are not involved in the cargo-handling operations.

3. Upon the request of a person responsible for cargo-handling operations in a sea- or river terminal the merchandise may be stored at the place of its unloading or transhipment without placing them in a temporary-storage warehouse throughout the time required for the performance of cargo-handling operations, in accordance with the terms stipulated by Article 103 of this Customs Code.

4. In case of loss of merchandise or its transfer to a third party without permission of customs authorities, responsible for the disbursement of customs duties and taxes in accordance with this Customs Code shall be the person performing the cargo-handling operations.

5. Unloading of merchandise, whose importation to the territory of the Russian Federation is proscribed by law of the Russian Federation, shall be forbidden.

Chapter 10.
DOMESTIC CUSTOMS TRANSIT

Article 79. Domestic Customs Transit

1. Domestic customs transit constitutes a customs procedure whereby foreign goods are transported inside the customs territory of the Russian Federation exempt from customs duties and taxes and free from any economic restrictions of prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

2. Domestic customs transit shall apply to the instances of haulage of merchandise from the place of its entry to the place of location of the customs office of its destination (Article 92), from the place where the imported merchandise was declared to the customs authorities to the place of its exportation from the customs territory of the Russian Federation; during its transit between temporary-storage warehouses, bonded warehouses, as well as in other cases when merchandise transits through the customs territory of the Russian Federation without guarantees of payment of customs duties and taxes.

3. The provisions of this Chapter shall not apply to the goods transported by air provided the aircraft carrying them during its regular international flight performs an intermediate or emergency (technical) landing without unloading of any portions goods or to the commodities transported through pipelines or electric power lines.

4. Transportation of goods and commodities in accordance with the provisions of the domestic customs transit procedure may be effected by any carrier including a customs carrier.

Article 80. Permission for Domestic Customs Transit

1. Domestic customs transit requires written permission issued by the customs office in whose region haulage of merchandise stipulated by the domestic customs transit procedures is initiated (customs point of departure).

2. The permission for the domestic customs transit is issued:

- to the carrier;

- the forwarder provided the latter is a Russian person,

- to the persons specified in Item 6 herein.

3. The permission for domestic customs transit shall be issued provided the following preconditions are observed:

(1) the goods are not prohibited for importation to the customs territory of the Russian Federation by law of the Russian Federation ;

(2) the imported goods have been subjected to border control and other kinds of state control at the point of their entry if said goods are liable for such control in accordance with law of the Russian Federation at the point of their entry;

(3) the goods have all requisite permits and/or licenses if their transit through the customs territory of the Russian Federation is only permitted when said permits and/or licenses are available;

(4) the goods have been recorded in respective transit declaration (Article 81) and thereby declared to the customs authorities;

(5) the goods are properly identified (Article 83);

(6) the means of transport are properly equipped for the goods to be transported with requisite seals and stamps affixed (Article 86);

(7) all requisite measures required by the customs legislation of the Russian Federation have been observed.

4. The permission for domestic customs transit shall be issued following presentation of goods to the customs point of departure without any delay as soon as said customs office has verified the observance of all the preconditions stipulated by Item 3 herein, but not later than in three days from the date when the transit declaration was accepted (Article 81). The transit declaration shall be accepted by customs authorities on the date of its submission provided it meets all the laid requirements.

Upon the issuance of the permission for transit, the customs point of departure shall establish the time terms for the domestic customs transit (Article 82) and designate the place of the goods destination (Article 85).

5. The Federal Customs Authority has the right to make decisions denying domestic customs transit to the carrier or forwarder responsible for repeated violations of his (or her) obligations predicated on haulage of goods subject to the domestic customs transit procedure which facts have been established by the effective resolutions on administrative penalties applied to the cases of administrative offences in the field of the customs system if at least one of such penalties has not been executed, or in case said carrier or forwarder has not fulfilled his (or her) obligations with regard to disbursement of customs duties and taxes as per Article 90 of this Customs Code. Such a resolution shall be rescinded within five days following the payment of an administrative fine, as well as the customs duties and taxes as per Article 90 of this Customs Code of which fact the carrier or forwarder concerned shall be notified in writing within the established time terms.

6. In the process of haulage of goods subject to domestic customs transit to the place of their destination (Article 85), which is not a location of a customs office, a permission to the domestic transit shall only be issued to a person who will be responsible for the storage of and other operations with goods at the place of their destination in accordance with the provisions of this Customs Code. In this case, said person shall fulfil the duties and bear the responsibilities of a forwarder, as is specified in this Chapter, with consideration of the provisions stipulated by Item 5 in Article 92 of this Customs Code.

7. In case the permission for the domestic customs transit cannot be issued due to non-observance of the provisions stipulated by Items 1 through 3 herein, the customs authorities have the right to permit delivery of said goods to the temporary storage warehouse or to other places constituting customs control zones provided the goods are hauled in a means of transport in attendance of a customs escort.

Note:

1. For the purpose of application of this Article of the Customs Code, a means of transport shall be defined as a transport vehicle used for hauling merchandise within the customs territory of the Russian Federation.

2. For the purpose of application of this Article of the Customs Code, a forwarder shall be defined as a person acting pursuant to his (or her) contract with a forwarding company in accordance with civil law of the Russian Federation.

Article 81. Transit Declaration

1. The customs authorities shall accept as a customs declaration any commercial, shipment documents, waybills, and/or customs documents containing the information as stipulated by Item 2 herein.

2. In order to obtain permission for domestic customs transit the carrier (forwarder) shall be obliged to present to the customs authorities the following information:

(1) the name and the location of the goods dispatcher (recipient) in accordance with the available waybill;

(2) the goods’ country of departure (country of destination);

(3) the name and the location of the goods carrier or of the goods forwarder if permission for domestic customs transit is issued to the goods forwarder;

(4) a description of the means of transport used for hauling goods through the customs territory of the Russian Federation, as well as information on the driver if haulage of said goods is effected by a motor vehicle;

(5) categories, names or descriptions, quantities, prices of goods as stated in the commercial and shipment documents (waybills), their weight or volume, the goods codes stipulated by the Harmonised Commodity Description and Coding System or the Nomenclature of Goods subject to Foreign Trade specifying at least four initial digits;

(6) the overall quantity of freight cases;

(7) the goods point of destination;

(8) any scheduled transhipment of goods or other goods-handling operations en route to the destination;

(9) the scheduled time terms of the goods delivery (Article 82);

(10) the goods route to destination if said goods are to be transported along a designated route (Item 3 of Article 86).

3. The Federal Customs Authority has the right to oblige a list of required information as per Item 2 herein with consideration of the specific persons responsible for the transit of goods and means of transport, the specific kinds of goods, as well as proceeding from carrier means of transport.

4. In case the documents submitted as is required by of Item 1 herein do not contain all the information specified in Item 2 herein, the required details should be supplemented in writing to the transit declaration. The format of the transit declaration and its filling procedures are established by the Federal Customs Authority.

5. The customs authorities have no right to demand that a carrier or forwarder submit any information other than that specified in Item 2 herein.

6. A customs officer, who resolves to accept the documents presented as per Item 1 herein as a transit declaration, shall place a special mark on said documents as is prescribed by the Federal Customs Authority.

7. A transit declaration may also be presented as an electronic document. The order of presentation of the electronic version of a transit declaration and its use in the process of domestic customs transit are determined by the Federal Customs Authority in accordance with this Customs Code.

8. In the instances stipulated by the international treaties to which the Russian Federation is party, accepted as a declaration for domestic customs transit shall be the documents formalised pursuant to the international treaties to which the Russian Federation is party.

Article 82. Time Terms for Domestic Customs Transit

1. The time limit for domestic customs transit may not exceed the length calculated on the basis of one month corresponding to the distance of 2000 kilometres with regard to the haulage of goods by a motor-, rail- or water transport; in case merchandise is transported by air, the time limit may not exceed three days from the date of issuance of permission for domestic customs transit.

2. In instances of issuance of permission for domestic customs transit the time limit for the domestic customs transit shall be determined by the customs point of departure as per Item 1 herein proceeding from the carrier’s (forwarder’s) request, the regular time standards established for merchandise haulage, the type, and specific features of the carrier vehicle, its route, and other conditions of transit.

3. Upon a motivated request of the interested party, the customs authorities may extend the initially established time limit of domestic transit determined in compliance with the requirements of Item 1 herein. In case the carrier cannot accomplish the delivery of goods subject to the domestic customs transit procedure within the initially prescribed time limit as a result of an accident or force majeure, the time limit for the domestic customs transit may be extended by a written resolution to that effect issued by the customs authorities to exceed the time limit prescribed by the provisions of Item 1 herein.

Article 83. Identification of Goods and Documents Thereto

1. The customs authorities at the point of departure shall undertake to identify the goods subject to the domestic customs transit procedure with a view to enabling the customs authorities at the point of their destination (Item 1 of Article 92) to detect signs of annexation of goods, signs of insertion of goods into means of transport, or signs of perpetration of other actions with the goods subject to the domestic customs transit procedure in the process of their haulage.

2. The customs authorities at the goods point of departure have the right to use the following facilities for ensuring identification of goods:

- customs seals and stamps which are affixed to a means of transport, a container or a removable truck body;

- application of alphanumeric codes or other forms of marking, use of other identification symbols; affixation of seals and stamps to specific freight cases;

- stamping;

- taking of samples and specimens;

- drawings made by customs officers, sketches and plans of merchandise made to scale; the goods’ photographic images, video recordings, illustrations;

- other means ensuring identification of merchandise including customs seals affixed at the customs point of departure.

- the merchandise dispatcher’s seals.

3. Identification of goods shall be effected by affixation of customs seals and stamps to a means of transport, a container or a to truck removable body as per Article 84 of this Customs Code.

In other instances, identification of goods shall be effected with the use of other facilities, as specified in Item 2 herein.

4. The customs authorities rely on customs seals and other identification facilities applied by customs authorities of foreign countries, except the following instances:

- the customs authorities deem the customs seals and other identification facilities insufficient or unreliable hence not meeting the criteria specified in Item 1 of Article 84 of this Customs Code;

- officers at the customs point of departure subject merchandise to customs inspection.

In the instances when Russian customs authorities opt to make use of the customs seals or other identification facilities applied by the customs authorities of foreign countries, any alternations, changes, removal, destruction or damage of said identification facilities shall be subject to the prohibitions stipulated by this Customs Code with regard to the customs seals and identification facilities used by the customs authorities of the Russian Federation.

5. The customs authorities shall perform identification of the waybills and/or of the other commercial documents available with the carrier, which may be used for customs clearance purposes.

Identification of said documents may be effected through application by the customs authorities of the following methods and facilities:

- affixation of seals or application of rubber-stamps to said waybills and commercial documents;

- application of special stickers and/or of special protection facilities.

- placement of the documents requisite for customs clearance purposes into the cargo compartments of means of transport, containers or removable truck bodies subject to customs seals and stamps;

- placement of the documents requisite for customs clearance purposes into sealed safe-packages.

Article 84. Equipment of Means of transport, Containers and Removable Truck Bodies for Haulage of Merchandise under Customs Seals and Stamps

1. Means of transport, containers or removable truck bodies may be authorised for haulage of merchandise under customs seals and stamps provided said customs seals and stamps used may be are affixed directly to the means of transport, containers or removable truck bodies that are designed and constructed so as to ensure that:

(1) customs seals and stamps may be affixed by a simple and reliable method;

(2) no merchandise may be extracted from or placed into the sealed section of the cargo compartment of a means of transport without evident signs of penetration into the cargo compartment of a means of transport or causing damage to customs seals and/or stamps;

(3) the means of transport and its cargo compartments do not have any hidden places where merchandise could be concealed;

(4) all the places where the goods are accommodated are easily accessible for customs inspections.

2. The requirements laid to means of transport, containers or removable truck bodies set forth by Item 1 herein shall be regarded as fulfilled if the means of transport, containers, or removable truck bodies concerned meet the technical requirements stipulated by the Federal Customs Authority.

3. A decision with regard to authorising a means of transport, container, or a removable truck body to perform haulage of merchandise under customs seals and stamps is made by the customs point of departure if said means of transport, containers or removable truck bodies had not been previously authorised for haulage of merchandise under customs seals and stamps.

Said decision is passed by customs authorities at the point of departure on the day when an interested person applies for it.

4. Compliance of a means of transport, container, or removable truck body to the requirements laid in Items 1 and 2 herein may be confirmed well in advance by a certificate authorising said means of transport, container, or removable truck body to haul merchandise under customs seals and stamps.

A certificate authorising said means of transport, container or removable truck body to haul merchandise under customs seals and stamps may be issued:

- in individual cases;

- with regard to the type of design (series) of means of transport, container or removable truck body.

A certificate authorising said means of transport, container, or removable truck body to haul merchandise under customs seals and stamps is issued by the customs authorities upon a request made by an interested person not later than in five days following the date of acceptance of said request by the customs authorities. This certificate shall remain in force until the design of a means of transport, container, or removable truck body is modified.

The certificate authorising said means of transport, container or removable truck body to haul merchandise under customs seals and stamps shall remain in force in the event of the right of ownership of said means of transport, container, or removable truck body being passed over to another person.

The form of the certificate authorising said means of transport, container, or removable truck body to haul merchandise under customs seals and stamps and its issuance procedures are set forth by the Federal Customs Authority.

5. Customs authorities shall not demand that authorisation to a means of transport, container or removable truck body to perform haulage of merchandise under customs seals and stamps be issued in advance except the following situations:

- goods are transported by a customs carrier (Article 11);

- the preliminary authorisation means of transport, container, or removable truck body is stipulated by the international treaties to which the Russian Federation is party.

Article 85. Place of Destination of Merchandise subject to Domestic Customs Transit Procedure

1. The place of destination of merchandise subject to the domestic customs transit procedure shall be determined by the customs authorities at the point of departure based on the information designating the place of destination stated in bills of lading, waybills, and other shipment documents. The merchandise place of destination shall be a customs control zone situated in the area of responsibility of said customs point of destination (Item 1 Article 92).

Note: merchandise transported from its point of entry (Article 69) shall be delivered to the place of location of the customs office (Article 405).

2. In case the point of destination has been changed in accordance with the applicable statutes of the Russian Federation on haulage of goods subject to the domestic customs transit procedure, the carrier has the right to apply to the customs authorities with a request to change the merchandise place of destination.

Note: the carrier may apply to any customs office en route with a request to change the merchandise point of destination submitting the request per se compiled optionally, the documents confirming the change of the merchandise point of destination, as well as the documents stipulated by Item 3 of Article 92 of this Customs Code.

A resolution with regard to the change of the merchandise point of destination shall be passed by the customs office concerned not later than on the day following the date of acceptance of the request and the documents specified in the first paragraph herein. Said resolution shall be formalised by way of completion of the domestic customs transit procedure with regard to the merchandise whose point of destination has been changed and issuance of a new permissions for the domestic customs transit (Article 80). The new resolution on the domestic customs transit is issued on the day of passage of the resolution authorising the merchandise point of destination.

Article 86. Measures for Effecting Observance of Statutes of Customs Legislation of the Russian Federation with regard to Domestic Customs Transit

1. The customs authorities at the point of departure have the right to apply the following (one of the following) measures for effecting the observance of the statutes of the customs legislation of the Russian Federation with regard to domestic customs transit:

(1) guarantee of payment of customs duties applicable to the importation of foreign goods in the amounts corresponding to the sum of the customs import duties and taxes, which would be levied to the goods in case of their release for free circulation. If information pertaining to the goods presented for the purpose of subjecting them to the domestic customs transit procedure is insufficient for calculating the amounts of customs duties and taxes, the amount of dutiable payments should be determined in accordance with Article 338 of this Customs Code;

(2) customs escort (Article 87);

(3) designation of routes as stipulated in Item 3 herein.

2. The customs authorities shall not demand that the measures necessitating the observance of the statutes of the customs legislation of the Russian Federation, as per Item 1 herein, be applied to then situations when haulage of goods is effected by the customs carrier.

3. In the instances stipulated by federal law of Russian Federation, the Government of the Russian Federation has the right to designate routes of haulage of specific kinds of merchandise subject to the domestic customs transit procedure. In other instances special routes for the haulage of specific kinds of merchandise are assigned based on the existing record of frequent violations of the customs legislation of the Russian Federation associated with conveyance of such goods across the customs border of the Russian Federation, or special restrictions and prohibitions are introduced pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities. In this instance, the route of merchandise haulage shall be declared by the carrier. The route declared by the carrier shall remain mandatory during transit of said goods. The route thus designated may only be changed upon a written permission issued by the customs authorities concerned.

Article 87. Customs Escort

1. The customs escort is defined as an escort of means of transport carrying merchandise subject to the domestic customs transit procedure by an authorised customs officer for insuring the observance of the statutes of the customs legislation of the Russian Federation pertaining to domestic customs transit.

2. Customs authorities have the right to pass a resolution with regard to customs escort in the following instances:

(1) non-payment of customs duties and taxes stipulated by Article 31 of this Customs Code;

(2) when haulage of specific kinds of goods is predicated on the risk analysis and risk management system stipulated by this Customs Code;

(3) failure by the carrier, at least once within a year from the date of his (or her) application for domestic customs transit, to deliver goods to the point of their destination, which fact is confirmed by an enforced ruling on administrative penalty with regard to an administrative offence in the field of customs system;

(4) re-exportation of merchandise delivered to the Russian Federation by mistake or of the goods whose importation to the Russian Federation is prohibited in case the place of the actual crossing by said goods of the customs border of the Russian Federation during their exportation does not coincide with the location of said goods;

(5) haulage of the goods as is specified in Items 6) and 7) of Article 80 of this Customs Code;

(6) haulage of the goods subject to the restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

3. The expenses associated with a customs escort shall be reimbursed in the form of customs duties levied in accordance with the Russian legislation on taxes and duties.

Article 88. Obligations of Carrier pursuant to Domestic Customs Transit

The carrier performing haulage of goods subject to domestic customs transit shall be obliged to:

(1) deliver the goods and the documents thereto within the time interval prescribed by the customs authorities at the point of departure to the point of destination following the assigned routes if the latter has been designated;

(2) ensure safety of the goods, customs seals and stamps or other identification facilities if applied;

(3) not to allow goods transhipment, unloading, loading or any other cargo-handling operations without the permission of the customs authorities, except transhipment of goods to another means of transport in the instance specified by Item 1 of Article 89 of this Customs Code.

Article 89. Transhipment, Unloading, Loading and Other Cargo-Handling Operations

1. Transhipment, unloading, loading, and other cargo-handling operations with merchandise whose haulage is performed in accordance with domestic customs transit procedure may only be authorised by the customs point of departure (Item 1 Article 80) or the customs authorities in whose region said cargo-handling operations are carried out. If transhipment of merchandise from one means of transport to another cannot be performed without damaging customs seals and stamps, such transhipment may only be permitted upon a preliminary notification of the customs authorities concerned.

2. The customs authorities may withhold permission for cargo-handling operations if such operations are likely to result in loss of goods or change of their properties.

Article 90. Responsibility of Carrier and Forwarder pursuant to Domestic Customs Transit

1. In instances when foreign goods have not been delivered to the customs point of destination (Item 1 of Article 92), their carrier or forwarder, if permission for domestic customs transit was issued to the goods forwarder, shall be obliged to pay the requisite import customs duties and taxes in accordance with this Customs Code.

If the carrier conveyed the goods to their recipient or any other person without permission of customs authorities, the person who has acquired title over said goods shall be responsible for disbursement of all requisite customs duties and taxes once it has been established that said person was aware or was supposed to be aware that he was receiving said goods in breach of the customs legislation of the Russian Federation.

2. The goods carrier or forwarder shall not be responsible for the disbursement of customs duties and taxes in case the goods have been destroyed, damaged or irretrievably lost due to an accident, force majeure, or as a result of their natural diminution under normal conditions of haulage (shipment).

The Customs authorities have no right to oblige the carrier or forwarder to pay customs duties and taxes on the grounds that haulage of goods was not carried out along the designated route or the time limit assigned for the domestic customs transit of goods was breached provided all the other terms and requirements stipulated by this Chapter have been fulfilled.

3. In case of re-loading of goods subject to domestic customs transit from one means of transport to another, all responsibility for the disbursement of customs duties and taxes shall be borne by the carrier (forwarder) who was issued permission for domestic customs transit.

4. In cases of goods subject to domestic customs transit by rails, responsibility for the disbursement of customs duties and taxes shall be borne by the railway authorities who have lost said goods or released them without the permission of the customs authorities. The customs authorities shall place their demand for disbursement of such customs duties and taxes to the railway terminals of destination. The provisions of this Item shall not apply to those instances when permission for domestic customs transit is issued to a forwarder or to the instances when shipment of goods is effected through a direct combined haulage provided permission for domestic customs transit was issued to the carrier of another means of transport.

Article 91. Measures Taken in Case of Accident, Force Majeure or other Circumstances

1. In case of accident, force majeure or other circumstances obstructing the haulage of goods subject to domestic customs transit, their carrier shall be obliged to take measures stipulated by Article 70 of this Customs Code.

2. The customs authorities shall not be liable for indemnifying the expenses incurred by the carrier due to the fulfilment of said measures.

Article 92. Completion of Domestic Customs Transit

1. The customs authorities at the point of destination where the domestic customs transit procedure is completed (the customs point of destination) shall formalise the completion of the domestic customs transit procedure within the shortest possible time, but not later than within 24 hours from the check-in time of the means of transport provided the inspection of documents and identification of goods conducted by said customs authorities have not revealed any breaches of the customs legislation of the Russian Federation, by way of issuance to the goods carrier of a certificate to the effect that the domestic customs transit procedures has been completed, which certificate is compiled based on the format established by the Federal Customs Authority.

2. The customs authorities at the point of destination shall be obliged to register the check-in time of the means of transport at the place of goods’ destination within two hours from the moment of acceptance from the carrier of the waybills and other shipment documents, as stipulated in Item 3 herein; and issue a written statement to the carrier confirming the arrival of said means of transport, which statement is compiled based on the format established by the Federal Customs Authority.

3. With a view to completing the domestic customs transit procedures, the carrier should present to the customs authorities at the point of destination the goods, the transit declaration (Article 81), and the other documents pertaining to the goods within one hour from the arrival of the means of transport at the point of destination; or within one hour from the time the customs office opens for work if the carrier arrives at the customs point of destination beyond its working hours. In the instance when goods are hauled by railway, the time limit for the presentation of said documents to the customs authorities at the point of destination may not exceed twelve hours.

4. At the customs point of destination, the means of transport shall stay inside the customs control zone until the domestic customs transit procedures is completed.

Placement of means of transport inside the customs control zone is permitted at any time without restrictions.

5. In instances of delivery of goods to the place which is not equipped with a customs office (Item 6 of Article 80), the domestic customs transit procedure may be completed without presentation of merchandise to the customs point of destination.

The person authorised to carry out the domestic customs transit procedure shall be obliged to accept merchandise for storage, preclude any actions that may change the condition of merchandise or damage its packing, use and dispose of the merchandise until or unless customs authorities have certified the merchandise delivery to a temporary storage warehouse, a bonded warehouse or any other place designated as the place of merchandise delivery in accordance with the rules set forth by this Chapter.

Note: all the goods ought to be placed in a separate room or at a fenced-in lot and provided with plates containing information enabling their identification.

The domestic customs transit procedure will be completed after, in addition to the documents specified in Item 3 herein, the carrier has presented to the customs point of destination the documents certifying acceptance of said goods which certificates ought to be submitted to the customs authorities within 24 hours following the arrival of the means of transport at the place of goods destination. The customs office will take up to three days from the date of submission of the above documents to certify the delivery of merchandise based on the form and the order established by the Federal Customs Authority.

Chapter 11.
CUSTOMS CARRIER

Article 93. Customs Carrier

1. A customs carrier is defined as a Russian juridical person included in the Register of Customs Carriers.

2. The customs carrier effects haulage of merchandise under customs control in situations and on the terms set forth by this Customs Code.

3. A customs carrier has the right to limit the region of its operations by the operating region covered by one (several) customs office (customs offices).

4. The relations between a customs carrier and merchandise dispatchers or forwarders are built on a contractual basis. A customs carrier is not permitted to refuse to sign a haulage contract if it has requisite facilities for performing haulage of merchandise.

Article 94. Terms of Entry into Register of Customs Carriers

The terms of entry into the Register of Customs Carriers are, as follows:

(1) a minimum of two years of cargo haulage experience;

(2) guarantee of dutiable payments as per Article 339 of this Customs Code;

(3) availability of certified license for cargo haulage if such activity is subject to licensing in accordance with Russian legislation;

(4) ownership (possession as private property, use as of leased or rented equipment) of means of transport suitable for the haulage of merchandise, as well as of means of transport applicable for the haulage of goods under customs seals and stamps (Article 84);

(5) availability of the applicant’s civil liability insurance policy, which may occur as a result of damage caused to the merchandise trusted to the customs carrier pursuant to the haulage contract or due to breach by the customs carrier of its commitments pursuant to the haulage contract. The minimal insurance premium thereto should amount to 20 million roubles.

Note: For the purpose of application of the provisions of this Chapter, a means of transport shall be defined as a vehicle for carrying merchandise within the customs territory of the Russian Federation.

Article 95. Application for Entry into the Register of Customs Carriers

1. An entry certifying inclusion of a juridical person into the Register of Customs Carriers shall be made based on an application submitted by the person meeting the criteria specified in Articles 93 and 94 of this Customs Code.

2. Said application for the entry into the Register of Customs Carriers should contain:

(1) an application to the customs office concerned with a request to be entered into the Register of Customs Carriers;

(2) information pertaining to the applicant’s name, organisational and juridical form, location, open bank accounts, as well as the size of the authorised (equity) capital, the authorised investment fund or the applicant’s share therein;

(3) information pertaining to the applicant’s cargo haulage experience;

(4) information on the applicant’s intention to limit the region of its operations by the limits of an operating region covered by one (several) customs office (customs offices) or operate free of any limitations;

(5) information on the ownership of means of transport (their number and specifications) which the applicant intends to use in carrying out its activities in capacity of a customs carrier, as well as information pertaining to the means of transport applicable for haulage of goods under customs seals and stamps (Article 84);

(6) information on dutiable payments as per Article 339 of this Customs Code;

(7) information on the applicant’s civil liability insurance policy.

3. The application for entry into the Register of Customs Carriers should be supplemented with a certified license for cargo haulage if such activity is subject to licensing in accordance with Russian legislation, as well as the documents certifying the declared information, including:

- the applicant’s incorporation documents and the document certifying the applicant’s entry as a juridical person in the General State Register of Juridical Persons;

- the certificate of the applicant’s state registration as a juridical person;

- the certificate of the applicant’s registration by the tax authorities;

- the documents certifying the applicant’s right to own the means of transport which are intended for use in the process of the application’s operation in capacity of a customs carrier;

- the certificates proving the admission of said means of transport for haulage of goods under customs seals and stamps;

- the documents certifying the size of the completely formed authorised (equity) capital, the authorised investment fund or the applicant’s share therein;

- the documents certifying the applicant’s guarantees of dutiable payments as per Article 339 of this Customs Code;

- the bank references certifying the applicant’s accounts opened in them;

- the applicant’s insurance policy.

Article 96. Certificate of Entry into the Register of Customs Carriers

1. The certificate on entry into the Register of Customs Carriers shall contain:

(1) the name of the customs carrier, the definition of its organisational and juridical entity and its location;

(2) information on the amounts and form of guarantee of dutiable payments to be made as per Article 339 of this Customs Code;

(3) designation of the customs carrier’s region of operations (in case the customs carrier’s operating region is limited by an operating region covered by one (several) customs office (customs offices).

2. The Certificate of Entry into the Register of Customs Carriers shall remain in force for a period of five years.

Article 97. Obligations of the Customs Carrier

A customs carrier shall be obliged to:

(1) abide by the terms and requirements stipulated by this Customs Code with regard to the haulage of merchandise subject to customs control;

(2) keep record of the merchandise carried under customs control and submit reports on haulage of such merchandise to customs authorities (Article 364);

(3) disburse customs duties and taxes in the situation stipulated by Item 1 of Article 90 of this Customs Code;

(4) ensure confidentiality of information obtained from the merchandise dispatcher, their recipient, or their forwarder.

Article 98 Withdrawal of Certificate of Entry into the Register of Customs Carriers

The Certificate of Entry into the Register of Customs Carriers may be revoked by the customs authorities in the following situations:

(1) breach by the customs carrier of at least one of the terms of entry into the Register of Customs Carriers set forth by Article 94 of this Customs Code;

(2) breach by the customs carrier of its obligations stipulated by Sub-Item 3) of Article 97 of this Customs Code;

(3) multiple cases of application of administrative penalties to the customs carrier due to non-fulfilment by the latter of its responsibilities or its administrative offences in the sphere of the customs system stipulated by Articles 16.1, 16.2, 16.3, 16.9, 16.11 and 16.15 of the Code of the Russian Federation on Administrative Offences.

Chapter 12.
TEMPORARY STORAGE OF GOODS

Article 99. Temporary Storage of Goods

Temporary storage of goods is a customs procedure under which foreign goods are stored exempt from customs duties and taxes and without subjecting them to any other restrictions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities until said goods are released based on an assigned customs procedure or subjected to a different customs procedure.

Article 100. Temporary-Storage Warehouses

1. Temporary storage of goods is effected at temporary-storage warehouses unless this Chapter contains different provisions thereto.

2. Used as temporary-storage warehouses may be rooms and/or open plots of land specially designated and equipped for temporary-storage purposes and meeting the requirements stipulated by Article 107 of this Customs Code.

3. Temporary-storage warehouses constitute a customs control zone.

4. Goods may be placed into any temporary-storage warehouse with consideration of the restrictions stipulated by this Customs Code.

Article 101. Placement of Goods at Temporary-Storage Warehouses

1. Temporary-storage warehouses may be used for accommodating any kinds of foreign goods including those imported to the customs territory of the Russian Federation in violation of the provisions of the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities prohibiting their importation (Item 1 of Article 13).

2. The goods capable of damaging other merchandise or requiring special storage conditions ought to be placed at temporary-storage warehouses or in their compartments specially equipped for storage of such kinds of goods in accordance with the mandatory requirements pursuant to the Federal Law on Technical regulations.

3. Temporary-storage warehouses may also be used for storing goods in those instances stipulated by Articles 377 and 391 of this Customs Code.

Article 102. Documents Required for Placing Goods at a Temporary-Storage Warehouse

1. In instances of placing goods at a temporary-storage warehouse the person responsible for said goods shall be obliged to present to the customs authorities the documents containing information on the name and location of the goods dispatcher (recipient) as specified in the available waybills and other shipment documents; the country of departure (destination); the goods description and quantities; the number of freight cases, their marking and package categories; the goods invoice prices; the goods gross weight (in kilograms) or volume (in cubic metres); the goods classification codes according to the Harmonised Commodity Description and Coding System or the Nomenclature of Goods subject to Foreign Trade specifying at least four initial digits.

The Federal Customs Authority has the right to shorten the list of information stated in Item 1) herein with consideration of the means of transport as well as the categories of persons responsible for the shipment of goods and means of transport.

2. The following documents are required for placing goods in temporary-storage warehouses:

- the documents stipulated by Articles 73 through 76 of this Customs Code in case goods are subjected to temporary storage at their point of entry;

- the documents stipulated by Articles 81 of this Customs Code for other cases of subjecting goods to temporary storage.

If the submitted documents do not contain the information required by Item 1 herein, the person responsible for subjecting goods to temporary storage shall be obliged to furnish the missing details by way of submitting other available documents or providing additional documents compiled by him (or by another person duly instructed by him) at his discretion.

3. In instances of the placement of goods at a temporary-storage warehouse, the customs authorities have no right to demand any information other than that specified in Item 1 herein.

4. The person responsible for placing goods in a temporary-storage warehouse has the right to submit the required documents in their electronic versions as is stipulated by this Customs Code.

Article 103. Terms of Temporary Storage

1. The term of temporary storage of merchandise shall be restricted to two months.

Upon a motivated request by an interested person, the customs authorities may prolong said period.

The maximum term of temporary storage of merchandise cannot exceed four months unless this Article contains different provisions thereto.

2. The period of storage of perishable products at a temporary-storage warehouse shall be determined by the time ensuring preservation of the products’ consumer properties and their subsequent utilisation, which period may not exceed the term of temporary storage stipulated by Item 1 herein.

3. In the cases stipulated by Item 1 of Article 13 and Item 8 of Article 377 of this Customs Code, temporary storage of merchandise ought to be completed within the time limits specified in these two articles. Extension of these time terms is not permissible.

4. Timing of the term of temporary storage begins on the date of placement of goods at a temporary-storage warehouse or from the date when such goods have been subjected to the status of temporary-storage in accordance with this Customs Code. In case throughout their haulage from the point of entry to the customs territory of the Russian Federation to the place of location of the customs office goods enjoy the status of domestic customs transit, timing of their temporary storage term shall be resumed on the date of completion of its domestic customs transit procedure.

5. Disposal of the goods upon the expiration of the terms stipulated by this Article shall be effected in accordance with Chapter 41 of this Customs Code.

Article 104. Operations with Goods Placed in a Temporary-Storage Warehouse

1. The persons endowed with special powers with regard to goods subjected to temporary storage and their representatives have the right to perform ordinary operations required for ensuring the goods preservation in an unchanging state (including the goods’ inspections, measurements and movement within the limits of the temporary-storage warehouse) provided such operations will not entail any change of the goods condition, damage their packaging and/or change the customs identification facilities affixed to them.

2. Other operations with merchandise, which are not specified in Item 1 herein, (including taking of the goods samples and specimens, repairs of damaged packaging, as well as the operations aimed at preparing goods for departure from the temporary-storage warehouse and their subsequent haulage) may be effected upon permission of the customs authorities by the persons endowed with special powers with regard to the goods subjected to temporary storage and by their representatives.

The customs authorities have the right to deny permission for such operations if their performance may cause the loss of goods or change of their condition.

Article 105. Damaged or Ruined Merchandise

Merchandise which has been damaged or ruined as a result of an accident or force majeure in the course of its temporary storage shall be subject to the customs procedure determined by the declarant, as if they had been imported to the customs territory of the Russian Federation in a broken down, perished or damaged condition.

Article 106. Types of Temporary-Storage Warehouses

1. Temporary-storage warehouses may be of open or of closed type.

2. Temporary-storage warehouses shall have the status of open-type warehouses if they are suitable for storage of any kinds of merchandise and are accessible by any persons.

3. Temporary-storage warehouses shall have the status of closed-type warehouses if they are intended for the storage of goods belonging to the warehouse owner (Article 108) or for temporary storage of specific kinds of merchandise including the goods that have limited and/or require special storage conditions.

Article 107. Technical and Engineering Requirements to Facilities and Location of Temporary-Storage Warehouses

1. The rooms and/or open plots of land intended for use as a temporary-storage warehouse ought to be designed and equipped so as to ensure preservation and safety of merchandise, preclude admission to goods of any unauthorised persons (who are not the warehouse employees, who have no powers with regard to the goods and who are not representatives of the persons who have such powers), as well as enable customs control inspection of said goods. Temporary-storage warehouses ought to be located in reasonable proximity to transportation hubs or transport mainlines.

2. The rooms and/or open plots of land intended for use as a temporary-storage warehouse ought to be equipped with a guarded parking territory adjacent to it for accommodating the means of transport used for carrying goods throughout the period required for completing the domestic customs transit procedure. Said territory constitutes a customs control zone. The means of transport used for haulage of goods in customs custody may enter said zone at any time of day or night.

3. According to Items 1 and 2 of this Article, the Federal Customs Authority establishes mandatory requirements to the technical facilities of temporary-storage warehouses and the territories adjacent thereto with a view to ensuring observance of customs control procedures.

4. The customs authorities may resolve not to apply some of the criteria stipulated by Item 1 herein to the technical and engineering facilities of closed-type warehouses which are located on the territories of enterprises and which are owned by the persons involved in goods production operations.

Note: For the purpose of application of the provisions of this Chapter, a means of transport is defined as a vehicle for carrying goods within the customs territory of the Russian Federation.

Article 108. Owners of Temporary-Storage Warehouses

1. A temporary-storage warehouse may be owned by a Russian juridical person included in the Register of Owners of Temporary-Storage Warehouses.

2. The owner of a temporary-storage warehouse shall be obliged to ensure storage of goods in customs custody in the instances and on the terms stipulated by this Customs Code.

3. Relations between the owner of the temporary-storage warehouse and the persons committing their goods for storage are established on a contractual basis. The owner of a temporary-storage warehouse (except for the owner of a closed-type warehouse, which is used for storing merchandise belonging to its owner) is not permitted to decline concluding a temporary storage contract provided he (or she) has adequate facilities for effecting temporary storage of goods.

4. Temporary-storage warehouses may be owned by customs offices without entering them in the Register of Owners of Temporary-Storage Warehouses (Article 115). The Federal Customs Authority shall be obliged to publish in its official releases at least once in six months the register of temporary-storage warehouses owned by customs offices, as well as the changes made in said register.

Article 109. Terms of Entry into the Register of Owners of Temporary-Storage Warehouses

1. The terms of entry into the Register of Owners of Temporary-Storage Warehouses are, as follows:

(1) ownership (possession as private property, lease or economic administration) of a room and/or an open plot of land intended for use as a temporary-storage warehouse and meeting all laid requirements thereto (Article 107);

(2) guarantee of dutiable payments as per Article 339 of this Customs Code;

(3) availability of the applicant’s civil liability insurance policy covering the cases, which may occur as a result of damage caused to the goods belonging to other persons trusted for storage to the owner of said temporary-storage warehouse, or due to breach by other persons of their commitments pursuant to their temporary storage contracts. The insurance premium, which the insurer shall be obliged to cover in the event of occurrence of each insurance case to the persons whose property interests have been damaged, shall be determined proceeding from the useful area or useful volume, and it shall be calculated on the basis of 3,500.00 roubles per square metre of useful area if goods were stored at an open plot of land used as a temporary-storage warehouse, or on the basis of 1,000.00 roubles per cubic metre of useful volume if goods were stored in the room used as a temporary-storage warehouse, but it may not be below the sum of two million roubles.

2. In case ownership of rooms and/or open plots of land is exercised on the basis of a lease agreement, such an agreement ought to be concluded for a period of at least one year as on the date of submission of the application for entry into the Register of Owners of Temporary-Storage Warehouses.

Article 110. Application for Entry into the Register of Owners of Temporary-Storage Warehouses

1. The record certifying entry of a person into the Register of Owners of Temporary-Storage Warehouses shall be made based on an application submitted by the person meeting the criteria specified in Articles 108 and 109 of this Customs Code.

2. Said application for the entry into the Register of Owners of Temporary-Storage Warehouses should contain:

(1) an application to the customs office concerned with a request to be entered into the Register of Owners of Temporary-Storage Warehouses;

(3) information pertaining to the type of the temporary-storage warehouse (in case of setting up a temporary-storage warehouse of closed type, substantiation of the necessity and expediency of setting up a temporary-storage warehouse of such type);

(4) information on the available rooms and/or open plots of land owned by the applicant and intended for use as a temporary-storage warehouse, their location, arrangement, facilities, and equipment;

(5) information on dutiable payments as per Article 339 of this Customs Code;

(6) information on the applicant’s civil liability insurance policy.

3. The application for entry into the Register of Owners of Temporary-Storage Warehouses should be supplemented with the following documents certifying the declared information, including:

- the applicant’s incorporation documents and the document certifying the applicant’s entry as a juridical person in the General State Register of Juridical Persons;

- the certificate of the applicant’s state registration as a juridical person;

- the certificate of the applicant’s registration by the tax authorities;

- the documents certifying the applicant’s right of ownership of the rooms and/or open plots of land intended for use as temporary-storage warehouses;

- the plans and drawings of the rooms and/or open plots of land intended for use as temporary-storage warehouses;

- the documents certifying the size of the completely formed authorised (equity) capital, the authorised investment fund or the applicant’s share therein;

- the documents certifying the applicant’s guarantee of dutiable payments as per Article 339 of this Customs Code;

- the bank references certifying the applicant’s accounts opened in them;

- the applicant’s insurance policy.

Each territorially separate room and/or territorially separate open plot of land intended for use as a temporary-storage warehouse shall require a separate application.

Article 111. Certificate of Entry into the Register of Owners of Temporary-Storage Warehouses

1. Entry of the owner of a temporary-storage warehouse into the Register of Owners of Temporary-Storage Warehouses shall be effected separately for each territorially separate room and/or territorially separate open plot of land used as a temporary-storage warehouse. The owner of the temporary-storage warehouse is issued an individual Certificate of Entry into the Register of Owners of Temporary-Storage Warehouses for each territorially separate room and/or territorially separate open plot of land used as a temporary-storage warehouse.

2. The certificate on entry into the Register of Owners of Temporary-Storage Warehouses shall contain:

(1) the name of the owner of a temporary-storage warehouse, the definition of his (or her) organisational and juridical entity and its location;

(2) information on ownership of each room and/or open plot of land which are used as a temporary-storage warehouse;

(3) information on the amounts and form of guarantee of dutiable payments to be made as per Article 339 of this Customs Code;

(4) designation of the type of the temporary-storage warehouse;

(5) designation of location of the temporary-storage warehouse.

3. The Certificate of Entry into the Register of Owners of Temporary-Storage Warehouses shall remain in force for a period of five years.

Article 112. Obligations of the Owner of a Temporary-Storage Warehouse

1. The owner of a temporary-storage warehouse shall be obliged to:

(1) observe the terms and requirements stipulated by this Customs Code with regard to goods in customs custody;

(2) keep a record of the stored goods in customs custody and submit to customs authorities reports on the storage of said goods (Article 364);

(3) ensure safety of merchandise and intactness of means of transport kept at the temporary-storage warehouse or on the guarded territory adjacent to it constituting the customs control zone;

(4) ensure round-the-clock accommodation at the warehouse or on the guarded territory adjacent to it constituting a customs control zone of the goods and means of transport;

(5) preclude access of any unauthorised persons to the goods and means of transport located on the premises of the temporary-storage warehouse and/or on the guarded territory adjacent to it without permission of the customs authorities;

(6) disburse customs duties and taxes in the instances stipulated by Item 2 herein, as well as per Item 1 of Article 90 of this Customs Code if the owner of said bonded warehouse holds a valid permit for the domestic customs transit procedure.

2. The owner of a temporary-storage warehouse shall be responsible for disbursement of customs duties and taxes levied on the goods kept at the temporary-storage warehouse in case of their loss or release without requisite permission by customs authorities. The owner of a temporary-storage warehouse shall not be responsible for disbursement of customs duties and taxes levied on the goods that have been irretrievably lost as a result of an accident, due to force majeure or their natural diminution under normal storage conditions.

Article 113. Withdrawal of Certificate of Entry into the Register of Owners of Temporary-Storage Warehouses

The Certificate of Entry into the Register of Owners of Temporary-Storage Warehouses may be revoked by the customs authorities in the following situations:

(1) breach by the owner of a temporary-storage warehouse of at least one of the terms of entry into the Register of Owners of Temporary-Storage Warehouses set forth by Article 109 of this Customs Code;

(2) breach by the owner of a temporary-storage warehouse of his (or her) obligations stipulated by Sub-Item 6) of Item 1 in Article 112 of this Customs Code;

(3) multiple cases of application of administrative penalties to the owner of the temporary-storage warehouse due to non-fulfilment by the latter of his (or her) responsibilities or the administrative offences in the sphere of the customs system stipulated by Articles 16.1, 16.2, 16.3, 16.9, 16.11, 16.13, 16.14 and 16.15 of the Code of the Russian Federation on Administrative Offences.

Article 114. Operations with Merchandise in case of Exclusion of the Owner of a Temporary-Storage Warehouse from the Register of Owners of Temporary-Storage Warehouses

In case the Certificate of Entry into the Register of Owners of Temporary-Storage Warehouses has been revoked or the owner of a temporary-storage warehouse excluded from the Register of Owners of Temporary-Storage Warehouses due to other reasons merchandise stored in the temporary-storage warehouse ought to be transferred to another temporary-storage warehouse within two months following the date of said exclusion. Placement of goods in said temporary-storage warehouse shall be precluded beginning from the date following the date of exclusion of the owner of said temporary storage warehouse from the Register of Owners of Temporary-Storage Warehouses.

Article 115. Storage of Merchandise at Customs Temporary-Storage Warehouses

1. The customs temporary-storage warehouses are warehouses of an open type, and they should meet the criteria set forth by Article 107 of this Customs Code.

2. Throughout storage of merchandise at a customs-owned temporary-storage warehouse, the relations between the customs authorities and the persons placing goods for storage at said warehouse shall be regulated by this Customs Code and the Civil Code of the Russian Federation. The contract for storage concluded by a customs office with a person placing goods at a customs temporary-storage warehouse shall be regulated by the provisions of civil law of the Russian Federation pertaining to a public contract. The customs authorities are not permitted to decline conclusion a storage contract if said warehouse has adequate storage facilities.

Article 116. Peculiarities of Temporary Storage of Goods Transported by Railway

1. Upon request of the railway authorities, temporary storage of goods transported by rail prior to its unloading is permitted inside the railway cars located on the railway tracks of this railway in the places which do not have the status of temporary-storage warehouses provided their location has been coordinated with the respective customs authorities.

Said places constitute a customs control zone. The railway shall be obliged to ensure the safety of the goods and preclude any access to them by unauthorised persons.

2. The goods stored inside the means of transport in the customs control zone based on this Article are regarded for customs clearance purposes as goods under customs temporary storage. Unloading of such goods and their movement to other locations can only be effected with a permission of respective customs authorities.

3. In case of loss of goods stored inside the means of transport in the customs control zone or its release without permission of customs authorities, the railway authorities shall be liable for the disbursement of customs duties and taxes.

Article 117. Temporary Storage at a Warehouse Owned by Goods Recipient

1. The customs authorities may permit the temporary storage of goods at a warehouse owned by the goods recipient in the following situations:

- in case of application of simplified customs procedures envisaged for specific persons (Article 68);

- when goods subject to temporary storage require special storage conditions while temporary-storage warehouses adapted for storing such merchandise are not available anywhere in reasonable proximity from the place of its receipt;

- if goods recipients are state bodies or state agencies.

2. In issuing permission for temporary storage of goods at the warehouse owned by the goods recipient the customs authorities have the right to demand that requisite customs duties and taxes be disbursed.

3. When goods recipient opts to store goods in his own warehouse, he shall be obliged to abide by all the other provisions of this Chapter. Storage of foreign goods belonging to a third person in the warehouse owned by the goods recipient is prohibited.

Article 118. Placement of Goods in a Temporary-Storage Warehouse by Customs Authorities

1. In the instances stipulated by Item 1 of Article 13, Articles 377 and 391 of this Customs Code, goods may be placed in a temporary-storage warehouse by the customs authorities.

Remuneration for storage and reimbursement of losses incurred by the owner of the temporary-storage warehouse in such situations shall be provided by the persons specified in the above Articles.

2. In the instances when storage expenses are compensated from the federal budget, the customs authorities shall repay compensation to the owner of the temporary-storage warehouse within the limits of required and documentarily substantiated expenditures incurred by the owner of temporary-storage warehouse during storage of said goods.

Chapter 13.
EXPORTATION OF GOODS
FROM THE CUSTOMS TERRITORY OF THE RUSSIAN FEDERATION

Article 119. Place and Time of Departure of Goods and Means of transport from the Customs Territory of the Russian Federation

1. Goods may exit the customs territory of the Russian Federation (hereinafter departure of goods and means of transport) at customs border gates at the State Border of the Russian Federation or in other places established in accordance with the Federal Law on the State Border of the Russian Federation within the working hours of the customs authorities (Article 407).

2. The provisions of this Article shall not apply to the goods hauled by seagoing vessels (riverboats) and aircraft crossing the customs territory of the Russian Federation without making any stops at sea-, river-, or airports located on the territory of the Russian Federation.

Article 120. Submission of Documents and Information

1. The departure of goods and means of transport is only possible upon permission issued by the customs authorities.

2. In order to obtain permission from the customs authorities for the departure of goods and means of transport the carrier shall be obliged to submit to customs authorities the documents certifying the placement of goods in a customs procedure stipulating exportation of goods from the customs territory of the Russian Federation.

3. Prior to the departure of goods and means of transport the carrier shall be obliged to submit to the customs authorities the documents and the information specified in Articles 73 through 76 of this Customs Code depending on the kind of transportation used for effecting the international haulage of goods.

If the documents submitted to the customs authorities do not contain the information specified in Articles 73 through 76 of this Customs Code, the carrier shall be obliged to furnish the missing details by way of submitting other available documents or providing additional documents compiled by the carrier at his discretion.

The customs authorities have no right to demand that the carrier submit any information other than that specified in Articles 73 through 76 of this Customs Code.

The documents and information may be submitted to the customs authorities by any other person acting in the name of or upon instructions by the carrier.

Article 121. Loading of Goods to Means of transport Departing from the Customs Territory of the Russian Federation

1. The loading of goods to a means of transport departing from the customs territory of the Russian Federation is only permitted upon acceptance by the customs authorities of the requisite customs declaration, except the cases when during the goods customs clearance the customs authorities do not demand that goods be presented for inspection or in the instance of conveyance of goods subject to the international customs transit procedures.

2. With a view to effecting an inspection of goods, customs officers have the right to attend its loading to a means of transport departing from the customs territory of the Russian Federation. In such a situation, the loading of goods is performed in places whose location has been coordinated with customs authorities during their working hours.

Upon a request made by an interested person, the customs authorities have the right to permit loading of goods at the time beyond the working hours established for the customs office concerned as per Article 407 of this Customs Code.

Article 122. Requirements of Goods at their Departure from the Customs Territory of the Russian Federation

1. Goods ought to be exported from the customs territory of the Russian Federation in the same condition and quantities as they were subjected to specific customs procedures, except the quantitative and qualitative changes caused by its natural wear or diminution or natural change of its properties under normal conditions of its haulage, shipment and storage, change of goods quantities owing to the presence of non-drainable residues in the means of transport.

2. No persons shall bear responsibility for the non-observance of the provisions of this Article if loss or change of condition of goods occurred as a result of an accident or force majeure, as well as in the cases stipulated by the norms and standards adopted in the Russian Federation, in the event of the goods’ quantitative changes due to an error of the measurement techniques applied.

Chapter 14.
DECLARATION OF GOODS

Article 123. Goods Liable for Declaration

Goods shall be liable for declaration to customs authorities during their conveyance across the customs border, change of applicable customs procedures, as well as in other cases set forth by Articles 183, 184, 247 and 391 of this Customs Code.

Article 124. Declaration of Goods to the Customs Authorities

1. The declaration of goods is effected through submission to the customs authorities of information pertaining to goods and their customs procedural status, as well as of any other information, which may be required for customs clearance purposes, in a customs declaration or by any other method stipulated by this Customs Code in a written, verbal, electronic, or contracting form.

Declaration of goods may be effected either by a declarant or by a customs broker (agent) (Article 15) at the declarant’s discretion.

2. The scope of information to be entered in a customs declaration is limited to the details which are required for calculating and levying dutiable payments, gathering customs statistics, and applying the customs legislation of the Russian Federation.

3. Recorded in a customs declaration may be the following details (including codified details):

(1) the declared customs procedure;

(2) information pertaining to the declarant, customs broker (agent), the person specified in Article 16 of this Customs Code, the goods dispatcher and recipient;

(3) information pertaining to the means of transport used for the international haulage of goods and/or haulage of goods in customs custody in the customs territory of the Russian Federation;

(4) information pertaining to goods, including:

- its name;

- its description;

- its classification codes as per the Nomenclature of Goods subject to Foreign Trade;

- the name of the country of origin;

- the name of the country of departure (destination);

- description of its packaging (quantity, shape, marking and record numbers);

- its quantities in kilograms (gross and net weight) or in other units of measurement;

- its customs value;

(5) information on dutiable payments:

- rates of import and export customs duties, taxes and customs fees;

- application of privileges with regard to disbursement of customs duties, taxes and customs fees;

- the currency exchange rate established by the Central Bank of the Russian Federation on the date of submission of the customs declaration for the purpose of registering and levying dutiable payments;

(6) information on the external economic transaction and its basic terms and conditions;

(7) information on the observance of restrictions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities;

(8) information on the goods manufacturer/producer;

(9) information confirming observance of the terms of subjecting goods to the declared customs procedure;

(10) information pertaining to the documents required for declaring goods (Article 131);

(11) information pertaining to the person who has completed said customs declaration;

(12) the date and place of completing said customs declaration.

4. In case a customs declaration is used as a registration document for currency control purposes exercised by the customs authorities, said customs declaration should also include the details required for such purposes pursuant to the Law of the Russian Federation on Currency Regulation and Currency Control.

5. A customs declaration should be authenticated by the person who has completed it and signed by an authorised employee of said person. Authentication of a customs declaration is effected by affixation of an official seal if the person who has completed a customs declaration is obliged to have an official seal in accordance with law of the Russian Federation.

6. The form of declaration is established by the Federal Customs Authority in accordance with this Customs Code and other legal statutes of the Russian Federation.

The Federal Customs Authority has the right to shorten the details which are to be entered in a customs declaration with consideration of the categories of persons as specified in Article 16 of this Customs Code, the categories of goods, the requirements of various customs procedural statuses, or proceeding from the kind of means of transport used for conveying goods across the customs border.

7. The lists of information which is to be entered in a customs declaration and the forms in which such information is entered shall be liable for official publication. The normative legal acts and statutes issued by the Federal Customs Authority determining the list of information to be entered in a customs declaration shall go into effect not earlier than in ninety days from the day of their official publication with the exception of the cases stipulated by the Sub-Items 2) and 3) of Item 3 of Article 5 of this Customs Code.

Article 125. Places for Declaring Goods

1. A customs declaration may be submitted to any customs authority empowered to accept customs declaration.

2. With a view to ensuring effective supervision over the observance of the customs legislation of the Russian Federation the Federal Customs Authority has the right to set up specialised customs offices for declaring specific categories of goods:

(1) in case of requirement to use specialised equipment and/or specialised knowledge for customs clearance of such merchandise as that of cultural value, weapons, military materiel and ammunition thereto, radioactive and fission material;

(2) depending on the kind of transport used for the international shipment of goods and commodities (motor vehicles, seagoing vessels, riverboats, aircraft, railway cars, pipelines, or electric power lines);

(3) in case of the conveyance across the customs border of specific kinds of goods acknowledged for frequent breaches of the customs legislation of the Russian Federation or liable for restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities;

(4) whenever it is required to exercise special customs control procedures with regard to specific merchandise constituting items of intellectual property in accordance with the list set forth by the Government of the Russian Federation.

3. In case a customs declaration was submitted to a different customs office than that established as per Item 2 herein, said customs declaration shall be dispatched by the customs office to which it was submitted to the requisite customs office.

In this situation, the time limit for acceptance of a customs declaration (Article 132) shall be prolonged to the time required for its dispatch, but for not more than two working days.

4. The normative legal acts of the Federal Customs Authority setting up specialised customs control facilities for declaring specific kinds of merchandise shall go into effect not earlier than in ninety days from the day of their official publication.

Article 126. Declarant

1. A declarant is any person specified in Article 16 of this Customs Code, as well as any other person authorised to dispose of goods in the customs territory of the Russian Federation in accordance with the Civil Code of the Russian Federation provided he or she abides by the terms and conditions set forth in Item 2 herein.

2. A declarant may only be a Russian person except in the following cases of conveyance of goods across the Customs border:

- by natural persons for personal, family, household and other needs which are not associated with any entrepreneurial ventures;

- by foreign persons who enjoy customs privileges as per Chapter 25 of this Customs Code;

- by foreign organisations which maintain their representative offices registered (accredited) on the territory of the Russian Federation according to the established order, in instances of their declaring goods for the customs procedure of temporary importation re-export, or transit, as well as for the customs procedure stipulating release for internal consumption of the goods which are imported for fulfilling needs of such representative offices;

- by foreign carriers declaring the customs transit procedure;,

- other cases when a foreign person has the right to dispose of goods in the customs territory of the Russian Federation beyond the provisions of an external economic transaction involving a Russian person as party to it.

Article 127. Declarant’s Rights and Obligations

1. When declaring goods and undergoing other customs operations required for their release, the declarant has the right:

- to inspect and measure the goods subject to declaring before and after submitting a customs declaration;

- upon permission of the customs authorities to take samples and specimens of the merchandise subject to declaring which have been imported to the customs territory of the Russian Federation, no separate customs declaration pertaining to the merchandise samples and specimens shall be required provided said samples and specimens are entered in the customs declaration;

- to attend the customs control and customs inspection procedures with regard to the goods declared by him or her (Articles 371 and 372), as well as at the instances when customs officers take samples and specimens of the declared goods (Article 383);

- to review the available results of the examination of samples and specimens of the declared goods conducted by customs officers;

- to submit documents and information required for declaring goods in electronic format in accordance with this Customs Code;

- to enjoy other rights and authority stipulated by this Customs Code.

2. At the instance of declaring goods and performing other customs operations the declarant shall be obliged:

- to submit a customs declaration and present to the customs authorities the requisite documents and information;

- upon the request of the customs authorities, to present goods for inspection;

- to make requisite dutiable payments or secure said payments in accordance with the provisions contained in Part III of this Customs Code.

Article 128. Peculiarities of Declaring Goods with Different Names within the Same Consignment

1. Upon a declarant’s request, goods with different names within a single consignment may be declared under the same classification code pursuant to the Nomenclature of Goods subject to Foreign Trade provided that this code corresponds to the highest rate of the applicable customs duty.

Note: if goods match several classification codes pursuant to the Nomenclature of Goods subject to Foreign Trade predicating the same rates of customs duties, the carrier should enter in the customs declaration the code of the goods article corresponding to the highest excise tax rate, and in the instances when excise tax rates coincide, to the highest VAT rate.

2. The declarant shall be obliged to declare the names, descriptions, and quantities of all goods contained in a single consignment by way of presenting a comprehensive list of goods, which may be substituted by a waybill, a packing list, an inventory, or other similar documents. For customs clearance purposes, the list of goods shall be regarded as an integral part of a customs declaration.

3. In case some of the items contained in the same consignment are liable for restrictions or prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, their declaration under the same classification code as per the Nomenclature of Goods subject to Foreign Trade will not relieve the declarant of the requirement to abide by said restrictions.

4. With a view to verifying the observance of the requirements established in Item 3 herein, customs authorities have the right to demand that the declarant provide additional clarifying information with regard to the declared goods.

Article 129. Time Limits for Submitting a Customs Declaration

1. A customs declaration pertaining to the goods imported to the customs territory of the Russian Federation shall be submitted within 15 days from the date of presentation of goods to customs authorities at the border gate of its entry to the customs territory of the Russian Federation or from the date of completion of its domestic customs transit procedure if imported goods are not declared at the customs border gate, except the cases specified in Articles 150, 286 and 2293 of this Customs Code.

2. If the time limit specified in Item 1 herein is not sufficient for the declarant for collecting all the requisite documents and information, the customs authorities will prolong said time limit for the submission of the customs declaration upon a motivated written requested by the declarant in that regard. Prolongation of the time limit for submitting a customs declaration may not result in a breach of time terms designated for temporary storage of goods.

3. If the deadline for the submission of a customs declaration coincides with the day-off of the customs office concerned, the deadline date shall be shifted to the first working day of the customs office following the deadline.

4. A customs declaration for the goods exported from the customs territory of the Russian Federation shall be submitted before its de facto departure from the customs territory of the Russian Federation except the cases specified in Article 314 of this Customs Code.

Article 130. Preliminary Declaration of Goods

1. A customs declaration with regard to foreign goods may be submitted before their actual arrival at the customs territory of the Russian Federation or before the completion of the domestic customs transit procedure.

2. If presentation of waybills, shipment documents, or commercial documents accompanying goods is mandatory for customs clearance purposes, in instances of the preliminary declaration of goods the customs authorities will accept copies of said documents authenticated by the declarant. Upon arrival of said goods at the customs territory of the Russian Federation, customs authorities may, if necessary, compare the information contained in the copies of said documents with the information contained in their originals.

3. After the submitted customs declaration has been verified and all requisite customs duties and taxes paid, this customs declaration may be used as a general document requisite for subjecting goods to various customs procedures before their actual arrival.

4. If goods have not been presented to the customs office that accepted the preliminary declaration as per Item 1 herein within fifteen days from the date of its acceptance, the customs declaration shall be regarded as void.

Article 131. Submission of Documents pertaining to the Declaration of Goods

1. The submission of a customs declaration should be accompanied by presentation to a customs office of the documents confirming the information stated in the customs declaration.

2. When declaring goods, the following essential documents are to be presented:

- international purchase/sale contracts supplemented with the agreements and contract concluded concomitantly with the external economic transaction; in the cases of unilateral external economic transactions supplemented should be the documents reflective of the contents of said transactions;

- commercial documents at the declarant’s disposal;

- waybills and/or shipment documents;

- permissions, licences, certificates and/or other documents confirming observance of the restrictions pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities;

- the documents confirming the country of origin of goods in the instances stipulated by Article 37 of this Customs Code;

- payment and accounting documents;

- the documents confirming information pertaining to the declarant and the persons stated in Article 16 of this Customs Code.

3. In claiming privileges with regard to disbursement of customs duties and taxes, including those payable at the instance of declaration of the goods’ customs procedure providing complete or partial exemption of said goods from customs duties and taxes, non-application to goods of the restrictions and prohibitions pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities or reduction of the taxation basis, the declarant shall be obliged to present to the customs authorities the documents confirming the consistency his (or her) claims.

4. For the purpose of certifying the goods’ declared customs value the declarant shall be obliged to present documentary proof of the declared customs value and substantiate validity of the method used for determining the customs value.

5. In case some of the documents cannot be submitted concomitantly with the customs declaration, upon a declarant’s motivated written request the customs authorities concerned will permit submission of such documents within the time limits required to obtain them but not later than within 45 days following the date of acceptance of the customs declaration unless this Customs Code stipulates other time limits for submission of specific documents and information. The declarant shall be obliged to submit his (or her) written obligation to present said documents or information within the designated period of time.

6. In case the declarant presents to the customs authorities the documents that may also be required for completing customs clearance formalities with regard to other goods, upon the declarant’s request the customs office concerned shall issue a written statement certifying the fact of acceptance of said documents, which shall comply with the format established by the Federal Customs Authority. This written statement shall remain in force until the presented documents are amended or their validity expires. The declarant may use this written statement in the process of customs clearance of goods without submitting to the customs office the documents which have already been accepted by customs authorities. The declarant has the right to present said documents before submitting his (or her) customs declaration.

Article 132. Acceptance of a Customs Declaration

1. The fact of submission of a customs declaration and requisite documentation shall be formalised on the date of their acceptance by a customs office. Upon a request by a person, who has submitted a customs declaration, the customs authorities should issue without delay a documentary (or electronic) confirmation of their acceptance of said customs declaration and requisite documentation.

2. A customs declaration submitted to the customs authorities shall be accepted on the date of its submission with the exception of the following cases:

- the customs declaration was submitted to a customs office which is not authorised to accept customs declarations;

- the customs declaration is submitted by an inappropriate person;

- the customs declaration does nit contain the required information (Article 124);

- the customs declaration has not been signed, not duly authenticated, or compiled using an improper form;

- at the instance of presentation of the customs declaration the declarant failed to submit the documents required for customs clearance except the documents that may be presented after the acceptance of said customs declaration as per Item 5 of Article 131 of this Customs Code;

- the declared goods have not been subjected to the operations which, according to this Customs Code, ought to be fulfilled prior to or at the instance of submission of a customs declaration. The fact of non-payment of customs duties and taxes at the moment of submission of a customs declaration shall not be regarded as a reason for rejecting a customs declaration.

3. Beginning from the moment of its acceptance a customs declaration acquires the significance of a document attesting to the facts bearing legal meaning.

4. In case a customs declaration has not been accepted by the customs authorities, it shall be regarded as void.

5. The customs authorities shall notify the person who has submitted a customs declaration about the reasons for their refusal to accept his (or her) declaration not later than on the day following its submission. Upon a request by the person who submitted said customs declaration, such notification will be provided in writing.

Article 133. Amendments of and Additions to a Customs Declaration

1. Upon a declarant’s motivated written request, the information stated in a customs declaration may be amended or supplemented.

2. Amendments of and additions to the statements contained in an accepted customs declaration may be permitted by the customs authorities provided the following conditions have been observed:

- by the time of the declarant’s application to the customs authorities the latter have not found any factual errors in the information stated in the customs declaration except for minor inaccuracies which do not affect their resolution with regard to release of merchandise;

- by the time of the declarant’s application to the customs authorities the latter have not started inspection of the declarant’s merchandise;

- if the amendments and/or additions proposed by the declarant will have no bearing on the customs authorities’ resolution with regard to release of the goods concerned nor require any amendment of the details stipulating the size of the amounts payable as customs duties and taxes or imposition of the restrictions of prohibitions envisaged by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

3. Customs officers have no right, on their own initiative or upon an instruction or request by an interested person to fill out a customs declaration, modify or supplement the information stated in the customs declaration, except entering the records pertaining to the competence of the customs authorities or making amendments and additions to the codified information used for the declarations’ machine processing provided said customs declaration contains such information stated by a declarant in a non-codified form.

Article 134. Withdrawal of a Customs Declaration

1. Upon a declarant’s written request, an accepted customs declaration pertaining to foreign goods may be withdrawn prior to the release of said goods with a view to declaring a different customs procedure.

Customs authorities may issue a written authorisation for the withdrawal of a customs declaration if they have not revealed any factual errors in the information stated by the declarant in his (or her) customs declaration except for minor inaccuracies which do not affect their resolution with regard to the release of goods.

In instances of the issuance of their authorisation for a withdrawal of a customs declaration, customs authorities shall prescribe the time limit for submitting a new customs declaration, which may not exceed 15 days from the day of issue of the authorisation for withdrawal. The withdrawal of a customs declaration shall not prolong the period of payment of customs duties and taxes.

2. Upon a declarant’s written request an accepted customs declaration pertaining to the Russian goods subject to exportation from the customs territory of the Russian Federation may be withdrawn regardless of the purpose of said withdrawal prior to the departure of said goods from the customs territory of the Russian Federation, as well as after the customs authorities have issued their permission for subjecting said goods to the declared customs procedural status.

The customs authorities may issue a written authorisation for the withdrawal of a customs declaration if they have not revealed any factual errors in the information stated by the declarant in his (or her) customs declaration except minor inaccuracies, which do not affect their resolution with regard to placing the goods in the declared customs procedural status.

The time limit for submitting a new customs declaration with regard to such goods is not designated.

Article 135. Incomplete Customs Declaration

1. In case a declarant does not possess the complete information required for filling out a the customs declaration due to reasons beyond his (or her) control, submission of an incomplete customs declaration may be permitted provided it contains the details required for releasing goods, calculating and effecting dutiable payments, certifying compliance with the restrictions and prohibitions pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, as well as enabling identification of goods based on the summary of their qualitative and quantitative characteristics.

Upon submitting an incomplete customs declaration, the declarant shall make a written commitment to furnish all the missing details within the time limit prescribed by the customs office, which may not exceed forty-five days with regard to foreign goods from the date of acceptance by the customs authorities concerned with the incomplete declaration.

As regards Russian goods, the time limit prescribed to the declarant for the submission of the missing details shall be determined proceeding from the time required for the haulage of said goods to the place of their exportation, navigational or other conditions, and such time limit may not exceed eight months from the date of acceptance by the customs authorities concerned of the incomplete declaration.

2. In case customs authorities accept an incomplete customs declaration, applicable to the goods shall be the same terms and conditions of the customs legislation of the Russian Federation, including the order of calculation and disbursement of customs duties and taxes, applicable to goods in the instance of the submission of a complete and properly filled out customs declaration.

Article 136. Periodic Customs Declaration

1. In cases of the regular conveyance of merchandise across the customs border by the same person, customs authorities may permit the declarant to submit a single customs declaration applicable to all the goods and means of transport conveyed across the customs border within a designated period of time.

2. Use of a periodic customs declaration should not lead to breaches of time limits prescribed for the temporary storage of goods or violations of the terms of payment of customs duties and taxes.

3. In case a periodic customs declaration is submitted with regard to Russian goods exported from the customs territory of the Russian Federation, the rules stipulated by Items 3 and 7 of Article 138 of this Customs Code shall apply.

4. In cases of the regular conveyance of the same merchandise across the customs border by the same person, customs authorities may permit the declarant to use a single periodic customs declaration applicable to multiple conveyances of such goods across the customs border within one year.

Article 137. Peculiarities of Declaring Russian Goods during their Exportation from the Customs Territory of the Russian Federation

1. In the case of the exportation of Russian goods from the customs territory of the Russian Federation, upon the declarant’s request a simplified declaration procedure may be applied in accordance with Articles 135, 136 and 138 of this Customs Code.

2. A simplified customs declaration procedure for Russian goods may be applied if it does not obstruct the execution of customs control measures nor relieves the declarant of the requirement to abide by the terms and conditions set forth by this Customs Code and other legal acts of the Russian Federation with regard to the completeness and timeliness of disbursement of customs duties and taxes, to observe the restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, and adhere to the customs control procedures.

In case the customs authorities deny the declarant said simplified customs declaration procedure, they will be obliged to notify the declarant of such denial, as per Item 5 of Article 132 of this Customs Code, and specify the conditions, which need to be fulfilled for the application of said simplified procedure.

3. The commodities conveyed across the border using pipeline transport or via electric power-lines shall be declared in accordance with the terms stipulated by Chapter 26 of this Customs Code.

Article 138. Periodic Temporary Customs Declaration of Russian Goods

1. In cases of the exportation of the Russian goods from the customs territory of the Russian Federation in whose regard the declarant cannot present exact details, which are required for their customs clearance in accordance with the generally adopted terms of external trade operations, such goods may be subject to periodic temporary declaration effected by the submission of a temporary customs declaration.

2. Upon departure of said Russian goods from the customs territory of the Russian Federation, the declarant shall be obliged to submit a complete and properly filled out customs declaration covering all the Russian goods exported from the customs territory within a designated period. The submission of said complete and properly filled out customs declaration shall be effected within the time limits prescribed by the customs office upon the declarant’s request. In prescribing such a time limit the customs authorities shall take into consideration the actual time the declarant will require to obtain the details requisite for submitting said complete and properly filled out customs declaration. The maximum time term for the submission of said compete and properly filled out declaration shall be limited to ninety days from the date following the date of expiration of the time period prescribed for the exportation of the declared goods.

3. The time required for exportation of Russian goods which have been declared with the use of a temporary customs declaration, shall be determined by the declarant. The period for goods liable for export customs duties and taxes or subject to restrictions and/or prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities shall not exceed one calendar month, whereas customs authorities may accept a temporary customs declaration not more than fifteen days in advance.

4. A temporary customs declaration contains estimated quantities of the Russian goods, which a declarant intends to export within a specific period of time, whose estimated customs value (valuation) shall be determined pursuant to the intended quantities of Russian goods to be conveyed across the customs border and based on the consumer properties of said Russian goods, as specified by the terms of the applicable external economic transaction and the procedure applied for their valuation on the date of submission of the temporary customs declaration.

Departure of Russian goods from the customs territory of the Russian Federation in the quantities exceeding those stated in the temporary customs declaration is prohibited, except for the instances stipulated by Items 1 and 2 of Article 122 of this Customs Code.

In case of use of a temporary customs declaration, all restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities shall apply on the date of acceptance of said customs declaration by the customs office concerned. The rates of applicable export customs duties and taxes shall be assigned based on the rates effective on the date of acceptance of said customs declaration by the customs authorities except the instances stipulated by this Customs Code.

5. The export customs duties and taxes shall be payable at the instance of submission of the temporary customs declaration to the customs office. In case the amount of export customs duties and taxes has been increased owing to the clarifying details, as stipulated by Item 4 herein, payment of the additional amounts of requisite customs duties shall be concurrent with submission of a complete and properly filled out customs declaration. In this situation, no penalties shall be applied. Excessively paid amounts levied on merchandise as export customs duties shall be reimbursed in accordance with Article 355 of this Customs Code.

The peculiarities of payment of export customs duties and taxes with regard to exportation of commodities by pipeline transport or via electric power lines shall be determined by Articles 312 and 314 of this Customs Code.

6. In case the Russian goods concerned have not been exported from the customs territory of the Russian Federation within four months from the date of acceptance of the temporary customs declaration in their regard, the customs declaration in which said goods are declared for exportation shall be regarded void.

Upon a motivated request by an interested person, the customs authorities may prolong the originally prescribed period for not more than four months.

Chapter 15.
CUSTOMS BROKER (agent)

Article 139. Customs Broker (agent)

1. A customs broker (agent) is defined as a Russian juridical person included in the Register of Customs Brokers (Proxies) pursuant to Article 140. A state entity may not be certified as a customs broker (agent).

2. A customs broker (agent) acts as an agent for a declarant or of another interested person performing a customs operation pursuant to the terms and conditions set forth by this Customs Code.

3. A customs broker (agent) has the right to confine the sphere of its activities to customs operations with specific kinds of merchandise as per the Nomenclature of Goods subject to Foreign Trade, or to customs operations with the goods and commodities conveyed across the customs border by specific means of transport, or to individual customs operations, or to the customs operations limited by the framework of a region covered by one (several) customs office (customs offices).

4. The relations between a customs broker (agent), the declarants and other interested persons are established on a contractual basis. A customs broker (agent) is not permitted to refuse to conclude a contract for a service or an operation if it has requisite facilities for providing such service or for carrying out such operation.

Article 140. Terms of Entry onto the Register of Customs Brokers

The terms of entry onto the Register of Customs brokers are as follows:

(1) availability in the applicant’s staff of a minimum of two certified specialists in customs clearance in possession of the respective qualification licences (Article 146);

(2) availability of complete original authorised (equity) capital, authorised investment fund or of the applicant’s share therein;

(3) guarantee of dutiable payments as per Article 339 of this Customs Code;

(4) availability of the applicant’s civil liability insurance policy, which may occur as a result of damage, caused to the property belonging to represented persons or due to a breach by the customs broker of its agreements with such persons. The minimal insurance premium thereto should amount to 20 million roubles.

Article 141. Application for Entry onto the Register of Customs Brokers (Proxies)

1. An entry certifying inclusion of a juridical person onto the Register of Customs Brokers (Proxies) shall be based on the application submitted by the [juridical] person meeting the criteria specified in Articles 139 and 140 of this Customs Code.

2. Said application for entry onto the Register of Customs Brokers (Proxies) should contain:

(1) an application to the customs office concerned with a request to be included onto the Register of Customs Brokers (Proxies);

(2) information on the applicant’s name, organisational and juridical form, its location, open bank accounts, as well as the list and locations of the applicant’s separate structural divisions through which the applicant is planning to carry out its operations in capacity of a customs broker (agent) as of the date of submission of the application;

(3) information pertaining to the size of the applicant’s paid-up authorised (equity) capital, authorised investment fund or of the applicant’s share therein;

(4) information on the applicant’s intention to confine the sphere of its activities to customs operations with specific kinds of merchandise as per the Nomenclature of Goods subject to Foreign Trade, or to customs operations with the goods and commodities conveyed across the customs border by specific means of transport, or to individual customs operations, or to the customs operations limited by the framework of a region covered by one (several) customs office (customs offices), or carry out its activities without any limitations;

(5) information on the applicant’s staff qualifications in customs clearance procedures as of the date of submission of the application;

(6) information on guarantees of dutiable payments as per Article 339 of this Customs Code;

(7) information on the applicant’s civil liability insurance policy.

3. The application for entry onto the Register of Customs Brokers (Proxies) should be supplemented with the following documents certifying the declared information, including:

- the applicant’s incorporation documents and the document certifying the applicant’s entry as a juridical person in the General State Register of Juridical Persons;

- the certificate of the applicant’s state registration as a juridical person;

- the certificate of the applicant’s registration by the tax authorities;

- the certificates of the applicant’s staff qualifications in customs clearance procedures;

- the documents certifying the size of the completely formed authorised (equity) capital, the authorised investment fund or the applicant’s share therein;

- the documents certifying the applicant’s guarantees of dutiable payments as per Article 339 of this Customs Code;

- the bank references certifying the applicant’s accounts opened in them;

- the applicant’s insurance policy.

Article 142. Certificate of Entry onto the Register of Customs Brokers (Proxies)

1. The certificate on entry onto the Register of Customs Brokers (Proxies) shall contain:

(1) the name, organisational and juridical form and location of the customs broker (agent) and of its separate structural divisions carrying out the functions of a customs broker (agent);

(2) information on the amounts and form of guarantee of dutiable payments to be made as per Article 339 of this Customs Code;

(3) information on restrictions of the sphere of operations of a customs broker (agent) if imposed.

2. Validity of the Certificate of Entry into the Register of Customs Brokers (Proxies) is not limited by time.

Article 143. The Rights of a Customs Broker (agent)

1. In carrying out customs operations a customs broker (agent) shall have the same rights as the [juridical] person that has empowered the customs broker (agent) to represent its interests in its relations with the customs authorities.

2. A customs broker (agent) has the right to warrant of the customs authorities, on behalf of the person it represents, fulfilment of the obligations assumed by said person with regard to guaranteed payment of customs duties and taxes if provisions of this Customs Code require a guarantee for such payments.

3. A customs broker (agent) has the right to demand that the person he represents furnish the documents and the information that may be required for fulfilling customs clearance procedures including the documents containing sensitive information constituting commercial, banking and other secrets protected by law or any other requisite confidential information and to obtain such documents and such information within the prescribed time limits ensuring observance of the provisions of this Customs Code.

4. At the instance of signing a contract with the person to be represented the customs broker (agent) has the right:

- to offer various discounts with regard to remuneration of its services and provide privileges for specific categories of persons it represents;

- to demand, as a precondition for concluding a contract with said person, that the latter abide by its commitments in accordance with the Civil Code of the Russian Federation.

Article 144. Obligations and Responsibilities of a Customs Broker (agent)

1. In the process of customs registration/clearance procedures, obligations of a customs broker (agent) are predicated on the terms and conditions set forth by this Customs Code with regard to the customs operations, which may be required for subjecting goods to one or another customs control procedure. The fact of fulfilment of such operations by a customs broker (agent) does not oblige the latter to carry out any other operations, such as completion of a customs procedure, or assume any other responsibilities which, according to the provisions of this Customs Code, are only assigned to the person specified in Article 16 of this Customs Code, a carrier, or any other person.

2. A customs broker (agent) shall pay requisite customs duties and taxes for the declared goods if the terms of the goods customs procedure requires such payment. At the instance of declaring goods, the customs broker (agent) in accordance with this Customs Code bears the same responsibility for the disbursement of customs duties and taxes as the declarant.

3. Any information obtained by a customs broker (agent) from the persons he represents constituting commercial, banking and other secrets protected by law or any other requisite confidential information may not be made public, or used by the customs broker (agent) and/or its employees for their personal goals, or revealed to other persons except for the cases stipulated by federal law.

4. A customs broker (agent) shall be obliged to keep a record of the goods subjected to customs operations and submit reports thereof to customs authorities (Article 364).

5. The customs broker’s (agent) obligations and accountability before the customs authorities shall prevail over his contract with the person he represents.

Article 145. Withdrawal of Certificate of Entry onto the Register of Customs Brokers (Proxies)

The Certificate of Entry onto the Register of Customs Brokers (Proxies) may be revoked by the customs authorities in the following situations:

(1) breach by the customs broker (agent) of at least one of the terms of his entry in the Register of Customs Brokers (Proxies) set forth by Article 140 of this Customs Code;

(2) multiple cases of application of administrative penalties to the customs broker (agent) due to non-fulfilment by the latter of his responsibilities or his administrative offences in the sphere of the customs system stipulated by Articles 16.1, 16.2, 16.3, 16.15 and 16.22 of the Code of the Russian Federation on Administrative Offences.

Article 146. Certified Specialist in Customs Clearance Procedures

1. A certified customs clearance specialist may be any natural person meeting the qualification requirements established by the Federal Customs Authority and having a licence qualifying him or her as a certified customs clearance specialist.

2. A certified customs clearance specialist carries out his (or her) duties as an employee of a customs broker (agent).

Article 147. Attestation for Compliance with Qualification Requirements

1. The attestation for compliance with qualifications requirements (hereinafter, attestation) constitutes a test of qualifications of natural persons who have applied for a licence to carry out customs clearance procedures. The attestation is conducted in the form of a qualification test. The person who has successfully passed the qualification test is issued a Qualification Certificate [licence] of a specialist in customs clearance procedures. The term of validity of this Qualification Certificate [licence] is not limited by time.

2. A person applying for the Qualification Certificate [licence] of a customs clearance specialist shall need to meet the following criteria:

- availability of a higher-education diploma issued by a Russian state-accredited institution of higher professional education or a higher-education certificate issued by a higher-education institution of a foreign country which needs to be supplemented with a formal reference attesting to its equivalence to a Russian state certificate of higher education;

- minimum two years of working experience.

The order of attestation, the list of required documents to be submitted concurrently with the application for attestation, the programs of qualification tests and their sequence are determined by the Federal Customs Authority.

Note: any person meeting the requirements set for the applicants, regardless of their targeted training for the passage of this test, shall be admitted for a qualification test. The applicants’ qualifications are tested by the customs officers nominated by the Federal Customs Authority.

3. Starting from the year following the attestation year, each certified customs clearance specialist shall be obliged to undergo a biennial 40-hour skills upgrading course approved by the Federal Customs Authority. Training of specialists at the skills upgrading courses shall be conducted by properly licensed instructors.

Article 148. Grounds for the Annulment of a Qualification Certificate [Licence] for Specialists in Customs Clearance Procedures

1. The Qualification Certificate [licence] for specialists in customs clearance procedures shall be annulled in case:

(1) it has been established that a Qualification Certificate [licence] of a specialist in customs clearance procedures was received with the use of forged documents;

(2) a court ruling has been enforced penalising the offender by suspending his (or her) licence to act as a certified customs clearance specialist for a designated period of time;

(4) breach by the certified customs clearance specialist of the requirements stipulated by Item 3 of Article 144 of this Customs Code;

(3) multiple cases of application of administrative penalties to the certified customs clearance specialist due to non-fulfilment by the latter of its responsibilities or its administrative offences in the sphere of customs system stipulated by Articles 16.1, 16.2, 16.3, 16.15 and 16.22 of the Code of the Russian Federation on Administrative Offences.

(4) breach by the certified customs clearance specialist of the requirement to undergo skill-upgrading courses as stipulated Item 3 of Article 147 of this Customs Code.

2. A decision with regard to the annulment of a Qualification Certificate [licence] of a customs clearance specialist is made by the Federal Customs Authority through the passage of a motivated resolution with regard to the annulment of a Qualification Certificate [licence] of a customs clearance specialist. A copy of this resolution is directed to the person concerned within three days from the date of its adoption.

3. The person whose Qualification Certificate [licence] of a customs clearance specialist has been annulled has the right to appeal the decision with regard to the annulment of a Qualification Certificate [licence] as per Chapter 7 of this Customs Code.

4. The person whose Qualification Certificate [licence] of a customs clearance specialist has been annulled has no right to re-apply for a new Qualification Certificate [licence]:

- within one year from the date of passage of the resolution to annul the Qualification Certificate [licence] of a customs clearance specialist on the grounds specified in Sub-Items 1) and 3) of Item 1 herein;

- within the term specified by the court ruling if the Qualification Certificate [licence] was annulled on the grounds specified in Sub-Item 2) of Item 1 herein;

- throughout the term when a person is regarded as administratively penalised in case the Qualification Certificate [licence] was annulled on the grounds specified in Sub-Item 4) of Item 1 herein.

Chapter 16.
RELEASE OF GOODS

Article 149. Terms of Release of Goods

1. Goods are released by the customs authorities within the terms of time specified in Article 152 of this Customs Code provided the following conditions have been observed:

(1) the goods customs registration and customs control formalities did not produce any breaches of the customs legislation of the Russian Federation, whereas the revealed faults, which did not provide sufficient grounds for initiating a lawsuit against the declarant for administrative offences, have been rectified, with the exception of the case stipulated by Article 154 of this Customs Code;

(2) the declarant presented to the customs authorities licenses, certificates, permits and/or other documents confirming proper observance of the restrictions pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities or the international treaties to which the Russian Federation is party, except the instances when such documents may be presented after the goods have been released;

(3) the declarant has observed the terms and conditions for placing goods under a selected customs procedural status or for applying appropriate customs procedure in accordance with this Customs Code;

(4) all the dutiable payments have been made or guaranteed as per Chapter 31 of this Customs Code.

2. The goods imported to the customs territory of the Russian Federation shall be released for free circulation after the dutiable amounts of dutiable payments have been entered in respective customs bank accounts. In case such amounts have not been entered in the designated bank accounts, the goods concerned shall be regarded as conditionally released. The customs authorities have no right to demand proofs that said funds have been credited to the customs bank accounts. Upon request of a person who has disbursed the requisite customs duties and taxes, the customs office concerned shall be obliged to furnish information pertaining to placement of said payments on the bank account of said customs office.

3. The release of goods may be suspended in accordance with Article 397 of this Customs Code.

4. The customs authorities issue permission to subject Russian goods to be exported from the customs territory of the Russian Federation to a designated customs procedural status with respect to releasing goods.

Article 150. Release of Merchandise prior to the Submission of Customs Declaration

1. Upon importation to the customs territory of the Russian Federation of the merchandise specified in Article 67 of this Customs Code, or in case of application of special simplified procedures of customs registration as per Article 68 of this Customs Code, release of merchandise may be effected prior to the submission of a customs declaration provided the declarant has presented commercial or other documents facilitating identification of said merchandise, as well as the documents confirming observance of the restrictions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, except the instances when such documents and information may be presented after merchandise has been released, dutiable payments made or guarantees thereto provided in compliance with the terms specified in Article 31 of this Customs Code.

2. Release of merchandise prior to the submission of a customs declaration shall be permitted provided the declarant submits a written obligation to submit the customs declaration and all the requisite documents within the time limits established by the customs office which may not exceed 45 days from the date of release of merchandise unless this Customs Code establishes other time limits thereto.

3. In case merchandise is released prior to the submission of a customs declaration, applicable to said merchandise shall be the rates of customs duties and taxes, the exchange rates of foreign currencies, and the restrictions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities effective on date of release of said merchandise.

Article 151. Conditional Release of Goods

1. Goods shall be subject to conditional release in the following situations:

(1) if, in accordance with the effective customs legislation of the Russian Federation, privileges with regard to the disbursement of customs duties and taxes predicate restrictions on the use and disposal of goods;

(2) if goods and/or commodities have been subjected to the customs procedural status of a bonded warehouse, duty-free shop, processing of commodities for domestic consumption, temporary importation, re-export, international customs transit, destruction, as well as special customs procedures applicable to the goods and/or commodities imported to the customs territory of the Russian Federation;

(3) if goods are released without submission of the documents and/or information certifying observance of the restrictions pursuant to the provisions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

2. The conditionally released goods, which, in accordance with the effective customs legislation of the Russian Federation, have been privileged with regard to customs duties and taxes, may only be used for the purposes stipulated by the terms of said privileges.

The goods, whose conditional release was authorised by the customs authorities without submission of the documents and/or information certifying observance of the restrictions pursuant to the provisions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, shall not be transferred to any third person including through their sale or alienation by other means, while in those instances when restrictions have been imposed on the importation of said goods for the purpose of verifying their quality and safety shall be prohibited for use (operation, consumption) in any form.

3. The conditionally released goods shall have the status of foreign goods.

4. The goods declared for release for free circulation shall be regarded as conditionally released if the customs authorities conceded a deferral of dutiable payments, or permitted disbursement of customs duties and taxes by instalments, or in case the sums corresponding to customs duties and taxes have not been credited to the bank accounts of the customs office concerned.

Article 152. Time terms of Release of Goods

1. Customs authorities release goods in accordance with Article 149 of this Customs Code not later than in three days from the date of acceptance of a customs declaration, submission of all the requisite documents and information, as well as presentation of goods for inspection to customs officers, except the instances when the time terms of the goods inspection are extended as per Item 2 of Article 539 of this Customs Code.

2. In the event of application of a preliminary declaration (Article 130), goods shall be released after their inspection by the customs authorities.

Article 153. Additional Stipulations for the Release of Goods

1. In case examination of a customs declaration and other documents submitted at the instance of declaration of goods or inspection of declared goods reveal any breaches of the terms and conditions of the goods release stipulated by Article 149 in this Customs Code, the customs authorities shall not permit release of said goods.

The customs office will immediately inform the declarant of the particular breaches of the terms and conditions of the goods release and advise the declarant with regard to the measures to be taken sufficient for meeting the requirements of the goods release in accordance with this Article.

2. In case the customs authorities discover any fictitious details in the information stated during declaration of goods influencing the amount of dutiable payments, as in the instances envisaged by this Customs Code, the customs office will immediately issue a demand that the declarant correct such details and re-calculate the amount of payable duties and taxes. The demand issued by the customs authorities should clearly specify the details that require correction for releasing goods.

3. In case the customs authorities discover any signs suggesting that the information stated by the declarant of goods may contain fictitious details influencing the amount of dutiable payments, or the declared information has not been properly certified, the customs office will perform an additional inspection of goods in the order and by any method stipulated by this Customs Code.

Release of goods shall be permitted by the customs authorities after the dutiable payments, which may be additionally charged based on the results of such an inspection, have been guaranteed. The customs authorities notify the declarant in writing on the amount of requisite guarantee for dutiable payments.

4. In case the customs authorities discover any fictitious details in the information stated during declaration of goods influencing the application to goods of the restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities in the cases stipulated by this Customs Code, the customs office will immediately issue a demand that the declarant correct such details and present the documents confirming observance of such restrictions. The demand issued by the customs authorities should clearly specify the details that require correction for releasing goods, as well as the documents confirming the observance of said restrictions.

5. In case the customs authorities discover any signs suggesting that the information stated by the declarant of goods may contain fictitious details influencing the application to goods of the restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, or that the declared information has not been properly certified, the customs office will perform an additional inspection of goods in the order and by any method stipulated by this Customs Code.

Release of goods shall be permitted by the customs authorities after the declarant has presented the documents confirming the observance of the respective restrictions. The customs authorities notify the declarant in writing of the particular documents to be presented for this purpose.

6. In the instances stipulated by Items 2 and 4 herein, release of goods shall be effected not later than in one day following the date of presentation of a guarantee for dutiable payments and/or from the moment presentation of the documents confirming the observance of respective restrictions.

If as a result of correction of the information stated by the declarant at the instance of the goods declaration the amount of payable customs duties and taxes diminishes in comparison with the amount stated by the declarant, release of such goods shall be effected prior to the fulfilment of the requirements stated in Items 2 and 3 herein.

7. The declarant should be responsible for carrying out the actions stipulated by this Article within the time limits of the goods temporary storage established in accordance with this Customs Code.

Article 154. Release of Goods in Case of Lawsuit pursuant to Administrative Offence

In the event of a lawsuit brought against a declarant on charges of administrative offence, goods may be released as per Article 153 of this Customs Code upon the decision of the chief of the customs office whose officer initiated said lawsuit before the completion of the proceedings on said lawsuit unless the goods were confiscated as material evidence or subjected to arrest in accordance with the Law of the Russian Federation on Administrative Offences.

Section 2. CUSTOMS PROCEDURES

Chapter 17.
GENERAL PROVISIONS
PERTAINING TO CUSTOMS PROCEDURES

Article 155. Customs Procedures

1. The following customs procedures have been established for goods with a view to ensuring observance of customs regulations:

(1) Principal Customs Procedures:

- release for domestic consumption;

- export;

- international customs transit;

(2) Customs Economic Procedures:

- inward processing procedure;

- processing for domestic consumption;

- outward processing procedure;

- temporary importation;

- bonded warehouse;

- free customs zone (free warehouse);

(3) Completing Customs Procedures:

- re-import;

- re-export;

- destruction;

- rejection in favour of the state;

(4) Special Customs Procedures:

- temporary exportation;

- duty-free trade;

- movement of stores;

- other special customs procedures.

2. Customs procedures are determined by this Customs Code.

3. The customs procedures of a free customs zone (free warehouse) are determined in accordance with the Russian laws regulating the legal relations with regard to establishment and application of the customs procedure of a free economic zone (free warehouse).

Article 156. Choice and Change of the Customs Procedure

1. Importation of goods to and their exportation from the customs territory of the Russian Federation require of their carriers to subject such goods to one of the customs procedures specified in this Paragraph and observe this customs procedure.

2. A person has the right at any time to choose any customs procedure and change it for another one in accordance with this Customs Code.

Article 157. Subjecting Goods to the Customs Procedure

1. Goods are subjected to a customs procedure upon permission of the customs authorities issued in accordance with this Customs Code.

2. The customs authorities are obliged to issue permission for subjecting goods to the declared customs procedure provided a person observes the requirements of the declared customs procedure as well as of the other terms stipulating release of goods.

3. The day of subjecting goods to a customs procedure shall be the date of the goods release by customs authorities.

Article 158. Observance of Restrictions and Prohibitions pertaining to Goods Subjected to Customs Procedures

Irrespective of the declared customs procedure, all persons shall be obliged to observe the restrictions and limitations of non-economic nature stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, as well as the currency control regulations established by Russian law.

Article 159. Documents and Information Confirming Observance of the Customs Procedure

1. Permission for subjecting goods to a desired customs procedure will be granted by a customs office upon submission by the declarant of the documents and information confirming observance of the terms and conditions set forth in this Paragraph stipulating placement of goods under said customs procedure.

2. The customs authorities have no right to request submission of the documents and information other than those, which may be required for confirming the observance of the terms and conditions stipulating placement of goods under the declared customs procedure and observance thereof in accordance with this Customs Code.

Article 160. Guarantees of Observance of Customs Procedures

Upon issuance of permission for subjecting goods to a customs procedure whose terms involve complete or partial exemption of goods from customs duties and taxes, or reimbursement of the earlier paid amounts, and/or non-application of the economic restrictions and prohibitions of stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, the customs office has the right to demand that the declarant provide a guarantee for requisite dutiable payments (Chapter 31), submit an obligation to export the temporarily imported goods, as well as the other guarantees of proper fulfilment of the obligations set forth by the provisions of this Paragraph.

Article 161. Responsibility to Confirm Observance of Terms and Conditions pursuant to Subjecting Goods to the Customs Procedure

The declarant shall be responsible for confirming the observance of the terms and conditions pursuant to subjecting goods to a customs procedure whose terms involve complete or partial exemption of goods from customs duties and taxes, or reimbursement of the earlier paid amounts, and/or non-application of economic restrictions and prohibitions stipulated the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 162. Documents and Information Confirming Observance of the Customs Procedure

1. In case goods, which are subject to a customs procedure, are confiscated due to a lawsuit brought against a declarant on charges of an administrative offence in the field of the customs system, the term of application of this procedure with regard to said goods shall be suspended.

2. If the ruling enacted with regard to said administrative offence in the field of the customs system does not involve any withdrawal of goods subject to a customs procedure, the term of application of this procedure with regard to said goods shall be reinstated.

Upon reinstatement of a customs procedure, the interest, whose charging and disbursement are stipulated in this Section, shall not be charged or paid for the period of suspension of said customs procedure.

3. If a person who is held responsible for an administrative offence is charged with non-observance of the terms and conditions stipulated by the selected customs procedure and said non-observance precludes further application of this customs procedure, it ought to be terminated according to this Section within 15 days from the date of entry into force of the ruling with regard to the lawsuit on the administrative offence.

Chapter 18.
PRIMARY CUSTOMS PROCEDURES

§1. Release for Domestic Consumption

Article 163. Content of the Customs Procedure

Release of goods for domestic consumption constitutes a customs procedure under which the goods imported to the customs territory of the Russian Federation shall remain on that territory with any obligations to be exported from said territory.

Article 164. Status of Goods Subject to the Customs Procedure of Release for Domestic Consumption

1. For customs purposes, imported merchandise will acquire the status of goods released for free circulation in the customs territory of the Russian Federation upon disbursement of all the requisite customs duties and taxes and observance of the restrictions and prohibitions pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

2. In case of non-observance of said terms and conditions, imported merchandise shall be liable for conditional release pursuant to Article 151 of this Customs Code.

§2. Export

Article 165. Content of the Customs Procedure

Export constitutes a customs procedure under which the goods in free circulation in the customs territory of the Russian Federation are exported from this territory without any obligations to import them back.

Article 166. Terms and Conditions of Subjecting Goods to a Customs Procedure

1. Export of goods is effected upon disbursement of all the requisite export customs duties, observance of the economic restrictions and prohibitions stipulated by the requirements of the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, and fulfilment of any other terms and conditions set forth by this Customs Code, other federal statutes and legal norms of the Russian Federation.

2. The goods exported in compliance with the customs export procedure shall be exempted from domestic taxes; the domestic taxes levied thereto shall be redeemed or reimbursed pursuant to the Russian legislation on taxes and duties.

§3. International Customs Transit

Article 167. Content of the Customs Procedure

International customs transit constitutes a customs procedure under which foreign goods transit the customs territory of the Russian Federation in customs custody between the point of their entry to and departure from the customs territory of the Russian Federation (if said transit constitutes a leg of their itinerary which begins and ends outside the boundaries of the customs territory of the Russian Federation) exempt from any customs taxes and duties or application of any economic restrictions and prohibitions of economic nature stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 168. Terms and Conditions of Subjecting Goods to the Customs Procedure

1. Subject to the customs procedure of international customs transit may be any foreign merchandise except the goods whose transit is prohibited pursuant to federal laws, other statutes, and legal norms of the Russian Federation and the international treaties to which the Russian Federation is party.

2. Federal laws, other statutes, and legal norms of the Russian Federation and the international treaties of the Russian Federation may establish additional terms and conditions stipulating placement of merchandise under the customs procedure of international customs transit.

Article 169. Application to International Customs Transit of Rules and Requirements Applicable to Domestic Customs Transit in accordance with this Customs Code

1. Under conditions of international customs transit, issuance of permissions for international customs transit, as well as the rules stipulating the time limits for effecting international customs transit, identification of merchandise, measures ensuring fulfilment of the statutes of the customs legislation of the Russian Federation shall be exercised by customs authorities pursuant to the provisions contained in Articles 80 through 86 of this Customs Code regulating domestic customs transit and applicable to the international customs transit procedure.

2. The rights, obligations, and responsibility of the carrier or forwarder under the conditions of international customs transit shall be regulated by the provisions of Sub-Items 1) and 2) of Article 88, as well as Articles 90 and 91 of this Customs Code.

Article 170. Transhipment of International Transit Merchandise and Other Operations with Transit Merchandise

1. Transhipment of international transit merchandise from a means of transport by which said merchandise was imported to the customs territory of the Russian Federation to a means of transport that will carry said merchandise from this territory shall be effected upon permission in that regard issued by the customs office in whose region this transhipment occurs. If transhipment of transit goods from one means of transport to another may be effected without damaging any customs seals and stamps affixed to the merchandise, it may be effected with a preliminary notification of the customs office concerned.

2. Temporary placement of transit merchandise in warehouses (storage, breaking up, or accumulation of lots, and other operations) in the customs territory of the Russian Federation is permissible provided all terms and conditions stipulated by this Customs Code are observed.

3. Any operations with merchandise under the international customs transit procedure, which are not stipulated by Items 1 and 2 herein, may only be conducted in the event of a real threat of destruction, loss, irretrievable loss, or major damage pending to merchandise and/or a means of transport.

Article 171. Completion of the Customs Procedure

1. The customs transit procedure is completed at the instance of exportation of transit merchandise from the customs territory of the Russian Federation.

The carrier shall be obliged to present transit merchandise for inspection, submit a customs declaration and other documents pertaining to merchandise international customs transit to the customs authorities at the point of destination (Item 1) in Article 92). The customs office concerned shall be obliged to perform all the operations required for the completion of the international customs transit procedure and issue permission for the departure of goods and means of transport (Article 120) from the customs territory of the Russian Federation on the day of presentation of transit merchandise and submission of requisite documents.

In case of exportation of transit merchandise by separate lots, the international customs transit procedure shall be regarded as completed upon the departure of the last lot thereof from the customs territory of the Russian Federation.

2. The international customs transit procedure may also be completed at the instance of placement of merchandise under other customs procedures provided all requirements stipulated by this Customs Code are observed.

Article 172. Peculiarities of Application of the Customs Transit Procedure

1. In those instances when the point of entry of merchandise and means of transport to the customs territory of the Russian Federation coincides with the point of its departures from said territory the international customs transit procedure may be simplified. The carrier and the forwarder will only need to present the documents and the information which are required at the instance of arrival of merchandise and means of transport (Article 72), whereas permission for transit is issued on the day of presentation of merchandise and submission of documents and information to the customs authorities.

2. In case transit merchandise is transhipped in the place specified in Item 1 herein, i.e., from a means of transport which was used for delivery of merchandise to the means of transport used merchandise departure, transhipment operations may only be permitted by the customs authorities. The customs authorities may issue such permission to the carrier or forwarder provided the latter have submitted all the documents and information pursuant to Article 72 of this Customs Code.

3. The customs authorities may deny permission for cargo-handling operations with transit merchandise only in case such operations may lead to loss of merchandise or change of its consumer properties.

Chapter 19.
CUSTOMS ECONOMIC PROCEDURES

§1. Inward Processing Procedure

Article 173. Content of a Customs Procedure

1. The inward processing procedure constitutes a customs procedure under which imported goods are utilised in the customs territory of the Russian Federation within a designated period of time (goods processing period) for the purpose of their processing with complete conditional exemption from customs duties and taxes provided the goods compensating products are exported from the customs territory of the Russian Federation within prescribed time limits.

2. The imported goods subjected to the inward processing procedure shall be liable for all restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 174. Terms of Placement of Goods under a Customs Procedure

1. Goods may be subjected to the inward processing procedure upon permission issued by the customs office concerned (Article 179).

2. The inward processing procedure is permitted when the customs authorities are capable of identifying the imported merchandise in the resulting [compensating] products manufactured thereof (Article 175), except the case when this customs procedure is completed with exportation of the compensating products equivalent to the originally imported merchandise as per Article 186 of this Customs Code.

3. Subject to inward processing procedure may be foreign goods, which have undergone other customs procedures, provided the terms and conditions stipulated by this Customs Code are observed.

4. The Government of the Russian Federation has the right to determine the cases when the inward processing procedure with regard to specific categories of imported goods will be prohibited if goods identical in description, quality and specifications are manufactured in the Russian Federation, or impose restrictions on the quantities or value of the foreign goods imported to the customs territory of the Russian Federation for inward processing with a view to protecting the interests of domestic producers. The above-mentioned restrictions and prohibitions shall go into effect not earlier than in ninety days from the day of official publication of respective normative acts to that effect of the Government of the Russian Federation.

Article 175. Identification of Goods in Compensating Products

1. Identification of imported goods in the compensating products manufactured thereof may be effected by the following methods provided such methods are applicable proceeding from the nature of said goods and the processing operations they are subjected to:

(1) seals, stamps, digital and other markings affixed by the declarant, processor, or customs officer to the imported goods;

(2) detailed description of imported goods, their photographic images, and scaled drawings;

(3) comparison of the results of examination of samples and specimens of the imported goods and the compensating products manufactured thereof;

(4) use of serial numbers and other markings made by the manufacturer of the imported goods.

2. The customs authorities determine the relevance of the declared method of identification of the goods, which were imported to the customs territory of the Russian Federation for inward processing, in compensating products manufactured thereof.

3. Upon a request of an interested person and with the consent of the customs office concerned, identification of goods for customs purposes may be achieved by analysing the submitted information pertaining to raw materials, construction elements and components used for manufacturing imported goods, as well as the technology applied for manufacturing the compensating products thereof, or by exercising customs control throughout the whole period of goods processing operations.

Article 176. Goods Processing Operations

1. The operations applied to the goods subjected to the inward processing procedure include:

(1) goods processing and machine-tooling operations;

(2) manufacture of new goods, including goods’ assembly or disassembly;

(3) goods repairs, including their restoration, substitution of their components, and restoration of their consumer properties;

(4) complete processing of goods conducive to or facilitating manufacture of merchandise notwithstanding the goods complete or partial consumption during processing operations.

Article 177. Time Terms of Goods Processing Operations

1. The time required for goods processing operations shall be determined by the declarant in coordination with the customs authorities and it may not exceed two years.

2. Duration of the inward processing procedure shall be determined proceeding from the time required for the goods processing operations, as well as based on the time required for disposal of the compensating product.

3. Upon a motivated request by the person duly authorised to subject goods to the inward goods processing procedure, the customs authorities may extend the initially prescribed time terms of the goods processing operations within the time limits stipulated by Item 1 herein if said person is not capable of completing the customs procedure within the initially prescribed period without violating the terms and conditions stipulated by this Paragraph for the reasons beyond his (or her) control.

4. The goods processing period begins on the day of their placement under the terms of the inward processing procedure, or on the day when the first consignment is subjected to said procedure in case goods are imported by separate consignments.

Article 178. Rate of Yield for Compensating Products

1. The rate of yield of the compensating products (their quantities or pro rata share in the compensating products manufactured as a result of processing of a given quantity of imported goods) shall be determined by the declarant in coordination with the customs office concerned proceeding from the actual conditions of the goods processing procedure, as specified in Item 3 herein.

2. In determining the rate of yield of compensating products, the customs authorities rely on the conclusions provided by expert organisations (including customs laboratories) based on the applied goods processing technology.

3. In case the processing operations with the goods featuring permanent properties and characteristics are conducted in compliance with specific technical conditions conducive to the output of the compensating products of invariable quality, the competent bodies duly authorised by the Government of the Russian Federation will establish, for customs clearance purposes, standardised rates of yield for the compensating products.

4. The description, quality, and quantity of the processing products shall be finalised following the approval of the rate of yield of the compensating products.

Article 179. Permit for Inward Processing Procedure

1. A permit for the inward processing procedure may be issued to any interested Russian person including the person who is not directly involved in goods processing operations.

2. A permit for the inward processing procedure is issued by a customs office based on an application submitted by an interested person.

3. A permit for the inward processing procedure contains:

- the description, quality and quantities of the imported goods and of the compensating products manufactured thereof;

- the goods processing operations and their methods;

- the rate of yield of compensating products;

- the methods of identification of imported goods in compensating products;

- the time terms of goods processing;

- other information determined by the Federal Customs Authority as required for customs clearance purposes.

The form of the permit for goods processing is determined by the Federal Customs Authority.

4. A permit for goods processing remains in effect throughout the prescribed time limit of goods processing.

5. Upon a written authorisation by the customs authorities, the person holding a permit for goods processing may transfer this permit to another Russian person throughout the period of its validity provided the latter person assumes full responsibility for further observance of the terms and conditions of goods processing specified in this Paragraph.

Note: the person who received the initial permit for goods processing operations shall be obliged to submit to customs authorities a report of his (or her) fulfilment of the terms and conditions set forth herein for the whole period when the goods were used in compliance with the inward processing procedure and remit all requisite customs duties and taxes if given period featured the events necessitating dutiable payments in accordance with this Customs Code.

The person, to whom said permit for the inward processing procedure is transferred, shall be obliged to assume full responsibility for further observance of the terms and conditions stipulated herein and formalise the all required documents in his (or her) name if observance of this customs procedure is secured by necessary guarantees (Article 160). This person will enjoy all the rights and bear the same responsibility as the person who was issued the initial permit for goods processing beginning from the day the customs office passes a resolution transferring the permit for goods processing operations.

6. A permit for the inward processing procedure may be issued either before or after the goods have been brought to the customs territory of the Russian Federation provided the declarant has observed all the terms and conditions set forth in this Paragraph.

7. The person who was issued a permit for the inward processing procedure shall be responsible for the disbursement of customs duties and taxes as per Item 2 of Article 320 of this Customs Code.

Article 180. Issuance of Permit for the Inward Processing Procedure

1. In order to obtain a permit for the inward processing procedure a person shall be obliged to submit an application to the customs office concerned containing the following details:

- on the applicant;

- on the person(s) directly involved in the goods processing procedure;

- on the goods intended for inward processing, compensating products thereof, wastes and residues;

- on the goods processing operations, their methods and duration;

- on location of production facilities involved in goods processing operations;

- on the rate of yield for compensating products;

- on the methods of identification of imported goods in the compensating products manufactured thereof;

- on substitution of imported goods by their equivalent goods;

- on the time terms of goods processing.

2. The form of the application and the form of presentation of information contained therein is determined by the Federal Customs Authority.

The application ought to be supplemented with the documents confirming the declared information.

3. The customs office concerned considered the submitted application the documents supplemented thereto within 30 days from the day of their acceptance. Within the designated period the customs authorities verify the observance by the applicant of the established terms and conditions and pass a resolution with regard to coordinating the declared rate of yield of the compensating products and duration of the processing procedure.

The customs office has the right to request that third parties, as well as the state agencies provide the documents verifying the information stated in Item 1 herein. Those persons shall be obliged to furnish the requested documents within ten days from the day they receive such a request from said customs office.

Note: the customs office has the right to extend the period of consideration of the application, but for not more than two months from the date of its acceptance.

4. Submitted as an application for goods processing may be the customs declaration whereby said goods were placed under the inward processing procedure provided the original goods at the instance of their importation and the compensating products manufactured thereof at the instance of their subsequent exportation are declared simultaneously to the same customs office in case:

(1) the purpose of placement of goods under the inward processing procedure is their repairs, including the repairs effected on the compensatory basis;

(2) the customs value of the of goods placed under the inward processing procedure does not exceed 500,000 roubles;

(3) placed under the inward processing procedure are remnants of the earlier imported goods pursuant to Article 184 of this Customs Code.

5. In case said customs declaration is used as an application for the goods inward processing procedures, the time term of its consideration should not exceed the time limit set for the verification of customs declaration, as stipulated by Item 1 of Article 359 of this Customs Code.

6. The customs authorities will deny a permit for the goods processing procedure only in case the person who is submitting the application has not observed the terms and conditions set forth in this Paragraph, or in the event the customs authorities resolved to refuse to coordinate the declared rate of yield of the compensating products and time terms of goods processing.

Refusal by the customs authorities to issue a permit for the goods processing procedure ought to be properly substantiated and motivated. An applicant will be given a written notification with regard to the denial of said permit.

Article 181. Withdrawal of a Permit for Goods Processing

1. A permit for goods processing may be revoked by the customs authorities in case placement of goods under the inward processing procedure is precluded pursuant to the legal act of the Government of the Russian Federation adopted as per Item 4 of Article 174 of this Customs Code.

2. A decision to revoke the permit goes into effect on the date of entry into force of the respective legal act of the Government of the Russian Federation.

3. In the instance of withdrawal of a permit for goods processing, placement of goods under the inward processing procedure will be prohibited due to withdrawal of the permit, whereas the goods, which had been placed under the inward processing procedure before the permit was revoked, should complete the prescribed customs procedure pursuant to the requirements of this Paragraph.

4. The form of withdrawal of a permit for the inward processing procedure is determined by the Federal Customs Authority.

Article 182. Exemption of Compensating Products from Export Duties. Application to Compensating Products of Prohibitions and Restrictions pursuant to Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities

1. At the instance of exportation from the customs territory of the Russian Federation, the compensating products resulting from the goods inward processing shall be exempted from export duties.

2. The compensating products resulting from the goods inward processing shall be liable for all restrictions and prohibitions pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 183. Wastes

1. The wastes which have formed as a result of the goods inward processing procedure shall be liable for customs duties and taxes equivalent to those applicable to the goods imported to the customs territory of the Russian Federation in that state, except the cases when said wastes have been exported from the customs territory of the Russian Federation or processed into the state in which their further commercial utilisation on the customs territory of the Russian Federation is no longer possible and they cannot be restored to their original state by any economically feasible method.

The wastes liable for customs duties and taxes should be declared.

2. For the purpose of levying customs duties and taxes, wastes shall be regarded as goods imported to the customs territory of the Russian Federation.

The customs value applicable to wastes shall be determined pursuant to the Russian legislation on taxes and duties with consideration of the peculiarities specified by Item 3 herein.

3. Wherever it is impossible to determine the wastes’ customs value using the method based on the value of a transaction with imported goods, the method based on the value of a transaction with identical goods, or the method based on the value of a transaction with homogeneous goods pursuant to the applicable law of the Russian Federation, the waste’s customs value shall be determined as equivalent to one of the following values:

- the price of sale of the appraised wastes at the instance of their initial sale in the customs territory of the Russian Federation to a buyer who is not interdependent upon any participant of the goods processing transaction;

- the price of sale of the goods identical to or homogenous with appraised wastes provided said goods were manufactured as a result of analogous processing operations under the terms and conditions of the inward processing procedure at the instance of their initial sale in the customs territory of the Russian Federation to a buyer who is not interdependent upon any participant of the goods processing transaction;

- the price of a transaction with the goods identical to or homogenous with appraised wastes which were sold as export goods to the Russian Federation and imported to the Russian Federation in the period concurrent with the time of declaration of the appraised wastes;

- the price of the goods identical to or homogenous with appraised wastes transacted at the domestic market of the Russian Federation between independent buyers and sellers less the taxes levied on said goods at their sale in the Russian Federation.

Article 184. Residues

1. The unprocessed residual goods, which have been subjected to the inward processing procedure, may either be exported from the customs territory of the Russian Federation without payment of any export customs duties or subjected to the inward processing procedure.

2. The non-exported residual goods shall be subject to customs duties and taxes equivalent to those applicable to goods delivered to the customs territory of the Russian Federation in that state.

The wastes liable for customs duties and taxes should be declared.

The amount of customs duties and taxes shall be determined proceeding from the residues’ quantities and value pro rata the amount of customs duties and taxes which would be levied on the goods whose processing resulted in the formation of said residues if said goods were released for free circulation on the day of their placement under the inward processing procedure.

Article 185. Completion and Suspension of the Customs Procedure

1. The goods inward processing procedure shall be completed by exportation of compensating products from the customs territory of the Russian Federation or by placement of the imported goods and the compensating products manufactured thereof under other customs procedures not later than the date of expiration of the time term stipulated for the goods processing (Article 177).

2. In case the compensating products are exported from the customs territory of the Russian Federation in several lots, the final verification of their quantity specified in the goods processing (Article 179) may be conducted periodically upon exportation of the compensating products, but at least quarterly and not later than within 30 days following the exportation of the last lot of the compensating products. In case such verifications reveal that the holder of a processing permit is liable for dutiable payments, the amounts of such payments shall be exempted from any penalty fees provided they are reimbursed within 10 working days from the date when the customs office concerned issued a written resolution stipulating remittance of said amounts. The customs authorities will be obliged to send their resolution stipulating the exigency of dutiable payments to the holder of the processing permit not later than on the day following the day of passage of said resolution.

3. The inward processing procedure may be completed by way of release for free circulation of the imported goods and/or the compensating products manufactured thereof, or by placement of the imported goods and compensating products under other customs procedures provided the terms and conditions stipulated by this Customs Code are observed.

4. At the instance of their release for free circulation, the imported goods or/and compensating products manufactured thereof shall be liable for customs duties and taxes equivalent to those which would be payable if the imported goods and compensating products manufactured thereof were declared for release for free circulation on the day of placement of said goods under the inward processing procedure plus the interest chargeable on the quoted amounts according to the refinance rates established by the Central Bank of the Russian Federation as though remittance of the quoted amounts were postponed from the date of their placement under the inward processing procedure.

5. Upon a request made by an interested person, the inward processing procedure may be suspended in the following situations:

- in case of placement of compensating products to a bonded warehouse as per Item 3 of Article 217 of this Customs Code;

- in case of placement of compensating products under other customs procedures, which do not stipulate release of goods for free circulation.

6. Suspension of the inward processing procedure shall entail suspension of the goods processing period (Article 177). The interests chargeable and disbursed in accordance with this Article shall not be charged or disbursed throughout the duration of suspension of the inward processing procedure.

Any goods processing operations (Article 176) are prohibited throughout the period when the inward processing procedure is suspended

7. The goods inward processing procedure may be completed by way of exportation of the imported goods in their original [unchanged] state (re-export).

Article 186. Equivalent Compensation

1. Upon permission of the customs authorities, the imported goods, which have been placed under the inward processing procedure, may be replaced with other goods including Russian goods if their description, quality, and specifications coincide with those of the imported goods (equivalent compensation).

2. The products obtained as a result of processing of equivalent goods shall be regarded as compensating products of the imported goods in accordance with this Chapter.

3. For customs clearance purposes, the equivalent goods shall have the status of imported goods, whereas the imported goods shall have the previous status of the equivalent goods.

4. In case equivalent compensation is permissible, exportation of the compensating products may be performed prior to the importation of goods for inward processing provided a permit for processing said goods is available. The customs authorities shall establish the time limits for importation of such goods.

§2. Processing for Domestic Consumption

Article 187. Content of the Customs Procedure

1. Processing for domestic consumption constitutes a customs procedure under which imported goods are utilised in the customs territory of the Russian Federation within a designated period of time (goods processing period) for the purpose of their processing with complete conditional exemption from customs duties and taxes, subsequent release of the compensating products obtained thereof for free circulation including payment of all required duties and taxes levied on compensating products.

2. The imported goods subjected to the processing for domestic consumption shall be liable for all restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 188. Terms of Placement of Goods under the Customs Procedure

1. Processing for domestic consumption is permitted upon permission issued by the customs office concerned (Article 192).

2. Processing for domestic consumption is permitted with regard to the goods and commodities whose register is approved by the Government of the Russian Federation.

3. Goods processing for domestic consumption is permitted in the following situations:

(1) the amounts of customs duties and taxes payable for compensating products are below those which would be charged on the day of placement of imported goods to the customs procedure for domestic consumption is such goods were released for free circulation;

(2) the customs authorities are capable of identifying imported goods in the resulting [compensating] products manufactured thereof (Article 189);

(3) compensating products cannot be restored to their original state by any economically feasible method.

4. Subject to processing for domestic consumption may be foreign goods, which have undergone other customs procedures, provided the terms and conditions stipulated by this Customs Code are observed.

Article 189. Identification of Goods in Compensating Products

(1) seals, stamps, digital and other markings affixed by the declarant, processor, or customs officer to the imported goods;

(2) detailed description of imported goods, their photographic images, and scaled drawings;

(3) comparison of the results of examination of samples and specimens of the imported goods and the compensating products manufactured thereof;

(4) use of serial numbers and other markings made by the manufacturer of the imported goods.

2. The customs authorities determine the relevance of the declared method of identification of the goods, which were imported to the customs territory of the Russian Federation for processing for domestic consumption, in compensating products manufactured thereof.

3. Upon the request of an interested person and with the consent of the customs office concerned, identification of goods for customs purposes may be achieved by analysing the submitted information pertaining to raw materials, construction elements and components used for the manufacture of the imported goods, as well as the technology applied for manufacturing the compensating products thereof, or by exercising customs control throughout the whole period of goods processing operations.

Article 190. Goods Processing Operations

1. The operations applied to the goods subjected to processing for domestic consumption include:

(1) goods processing and machine-tooling operations;

(2) manufacture of new goods, including goods’ assembly or disassembly.

Article 191. Time Terms of Goods Processing Operations

1. The time required for goods processing operations shall be determined by the declarant in coordination with the customs authorities and it may not exceed one year.

2. Duration of the processing procedure for domestic consumption shall be determined proceeding from the time required for the goods processing operations, as well as the based on time required for disposal of the compensating product.

3. Upon a motivated request by the person duly authorised to effect the goods processing procedure for domestic consumption, the customs authorities may extend the initially prescribed time terms of the goods processing operations within the time limits stipulated by Item 1 herein if said person is not capable of completing the customs procedure within the initially prescribed period without violating the terms and conditions stipulated by this Paragraph for the reasons beyond his (or her) control.

4. The goods processing period begins on the day of their placement under the terms of the processing procedure for domestic consumption, or on the day when the first consignment is subjected to said procedure in case goods are imported by separate consignments.

Article 192. Permit for Processing Goods for Domestic Consumption

1. A permit for processing goods for domestic consumption is issued by a customs office based on an application submitted by an interested person (Item 1 of Article 193).

2. A permit for the processing for domestic consumption contains:

- the description, quality and quantities of the imported goods and compensating products manufactured thereof;

- the goods processing operations and their methods;

- the rate of yield of compensating products;

- the methods of identification of imported goods in compensating products;

- the time terms of goods processing;

- other information determined by the Federal Customs Authority as required for customs clearance purposes.

The form of the permit for goods processing is determined by the Federal Customs Authority.

3. A permit for goods processing remains in effect throughout the prescribed time limit of goods processing.

4. A permit for the goods processing is issued prior to placement of goods under the customs procedure of processing for domestic consumption.

5. A permit for goods processing shall not be transferred to another person.

6. The person who was issued a permit for the processing goods for domestic consumption shall be responsible for the disbursement of customs duties and taxes as per Item 2 of Article 320 of this Customs Code.

Article 193. Issuance of Permit for Processing Goods for Domestic Consumption

1. In order to obtain a permit for processing goods for domestic consumption a person shall be obliged to submit to the customs office concerned an application containing the following details:

- on the applicant;

- on the person(s) directly involved in the goods processing procedure;

- on the goods intended for processing, compensating products thereof, wastes and residues;

- on the goods processing operations, their methods and duration;

- on location of production facilities involved in goods processing operations;

- on the rate of yield for compensating products;

- on the methods of identification of imported goods in the compensating products manufactured thereof;

- on the time terms of goods processing.

2. The form of the application and the form of presentation of information contained therein is determined by the Federal Customs Authority.

The application ought to be supplemented with the documents confirming the declared information.

3. The customs office concerned consider the submitted application the documents supplemented thereto within 30 days from the day of their acceptance. Within the designated period the customs authorities verify the observance by the applicant of the established terms and conditions and pass a resolution with regard to coordinating the declared rate of yield of the compensating products, which is determined pursuant to the regulations stipulated by Article 178 of this Customs Code.

The customs office has the right to request that third parties, as well as the state agencies, provide the documents verifying the information stated in Item 1 herein. Those persons shall be obliged to furnish the requested documents within ten days from the day they receive such a request from said customs office.

Note: the customs office has the right to extend the period of consideration of the application, but for not more than two months from the date of its acceptance.

4. The customs authorities will deny a permit for the goods processing procedure only when the person who is submitting the application has not observed the terms and conditions set forth in this Paragraph, or in that event the customs authorities resolved to refuse to coordinate the declared rate of yield of the compensating products and time terms of goods processing.

Article 194. Wastes and Residues

The wastes and residues which have formed as a result of goods processing operations, as well as remnants of the goods placed under the customs processing procedure for domestic consumption, shall be liable for the rules and requirements stipulated by Articles 183 and 184 of this Customs Code.

Article 195. Completion of the Customs Procedure

1. The goods processing procedure for domestic consumption by way of releasing compensating goods for free circulation. At the instance of their release for free circulation, the goods’ compensating products shall be liable for the customs duties and taxes calculable proceeding from the rates applicable to compensating products. The customs value and quality of the compensating products shall be determined as of the date of their declared release for free circulation.

2. With a view to promoting the development of Russian economy and stimulating the process of substitution of imported investment goods on the territory of the Russian Federation by their domestic analogues, the Government of the Russian Federation has the right to determine specific kinds of goods and/or the compensating products manufactured thereof in whose regard for the purpose of calculating the value of dutiable payments the customs value and and/or quantity of foreign goods may apply at the instance of their placement under the customs procedure of goods processing for domestic consumption.

Article 196. Peculiarities of Application of Rates Customs Duties with regard to Compensating Products

Compensating products shall be liable for the rates of customs duties effective in the country of origin of the goods imported [to the customs territory of the Russian Federation] for their processing. In the instances when goods processing involves the use of foreign goods originating from different countries, the rates of pertinent customs duties shall be applied with consideration of the following peculiarities:

(1) in case goods processing has resulted in a change of a goods’ classification code as per the Nomenclature of Goods subject to Foreign Trade on the level of any first digits, applicable to the resulting [compensating] products shall be the rates of customs duties established for the goods imported from the countries enjoying the status of a most favoured nation in trade and political relations; the rates applicable to the goods originating from a country enjoying the status of a most favoured nation in terms of its trade and political relations with the Russian Federation;

(2) in other instances, the rates of customs duties based on the country of origin of foreign goods whose customs value is highest shall be applicable.

§3. Outward Processing Procedure

Article 197. Content of the Customs Procedure

1. The outward processing procedure constitutes a customs procedure under which goods are exported from the customs territory of the Russian Federation for the purpose of their processing within a designated period of time (goods processing period) and subsequent re-importation of compensating products manufactured of the exported goods with their complete or partial exemption from customs duties and taxes.

2. Goods are exported from the customs territory of the Russian Federation based on the outward processing procedure with complete conditional exemption from export duties. The exported goods shall not be liable for any economic restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

3. The goods exported based on the outward processing procedure shall not be exempted from any domestic taxes; the paid domestic taxes levied thereto shall not be redeemed or reimbursed.

Article 198. Terms of Placement of Goods under Customs Procedure

1. Goods may be subjected to the outward processing procedure upon permission issued by the customs office concerned (Article 203).

2. The outward processing procedure is permitted when the customs authorities are capable of identifying the exported merchandise in the resulting [compensating] products manufactured thereof (Article 199), except the case when the compensating products are substituted by foreign merchandise as per Article 206 of this Customs Code.

3. For the goods to be subjected to the outward processing procedure, they ought to have the status of goods in free circulation. It would be permissible to place under the outward processing procedure the goods enjoying privileges with regard to customs duties and taxes in accordance with the statutes of Russian law provided they are subjected to the outward processing procedure for the purpose of their maintenance/repairs.

4. The Government of the Russian Federation has the right to determine the cases when the outward processing procedure will be prohibited with regard to specific categories of goods, as well as impose restrictions on the quantities or value of the goods targeted for the outward processing procedure with a view to protecting the interests of domestic producers. The above-mentioned restrictions and prohibitions shall go into effect not earlier than in ninety days from the day of official publication of respective normative acts to that effect of the Government of the Russian Federation.

Article 199. Identification of Goods in Compensating Products

1. Identification of exported goods in the compensating products manufactured thereof may be effected by the following methods provided such methods are applicable proceeding from the nature of said goods and the processing operations they are subjected to:

(1) seals, stamps, digital and other markings affixed by the declarant, processor, or customs officer to the exported goods;

(2) detailed description of exported goods, their photographic images, and scaled drawings;

(3) comparison of the results of examination of the preliminarily taken samples and specimens of the exported goods and the compensating products manufactured thereof;

(4) use of serial numbers and other markings made by the manufacturer of the exported goods;

(5) documentary proofs that subject to the outward processing procedure have been the exported goods;

(6) other identification techniques based on application of innovative technologies.

2. The customs authorities determine relevance of the declared technique applied identifying the goods exported for the outward processing procedure in the compensating products manufactured thereof with consideration of the nature of said goods and the processing operations to which they are subjected.

3. Upon a request of an interested person and with the consent of the customs office concerned, identification of goods for customs purposes may be achieved by analysing the submitted information pertaining to raw materials, construction elements and components used for manufacturing goods, as well as the technology applied for manufacturing the compensating products thereof.

Article 200. Goods Processing Operations

The operations applied to the goods subjected to the outward processing procedure include:

(1) goods processing and machine-tooling operations;

(2) manufacture of new goods, including goods’ assembly or disassembly;

(3) goods repairs, including their restoration, replacement of their components, and restoration of their consumer properties.

Article 201. Time Terms of Goods Processing Operations

1. The time required for goods processing operations shall be determined by the declarant in coordination with the customs authorities and it may not exceed two years.

2. Duration of the outward processing procedure shall be determined proceeding from the time required for the goods processing operations and the time required for the haulage of compensating products within the goods processing period defined in Item 1 herein.

3. Upon a motivated request by the person duly authorised to subject goods to the outward goods processing procedure, the customs authorities may extend the initially prescribed time terms of the goods processing operations within the time limits stipulated by Item 1 herein.

4. The goods processing period begins on the day of their placement under the terms of the outward processing procedure, or on the day when the first consignment is subjected to said procedure in case goods are exported by separate consignments.

Article 202. Rate of Yield for Compensating Products for the Customs Clearance Purpose

1. The rate of yield of the compensating products (their quantities or pro rata share in the compensating products manufactured as a result of processing of a given quantity of exported goods) shall be determined by the declarant in coordination with the customs office concerned proceeding from the actual conditions of the goods processing procedure, except the instances specified in Item 4 herein, if such measure is acknowledged as expedient for customs control purposes. The rate of yield of the compensating products shall be determined prior to the exportation of goods from the customs territory of the Russian Federation.

2. The rate of yield of the compensating products is coordinated by the customs authorities based on pertinent documentation submitted by the declarant containing comprehensive information on the goods processing technology. In determining the rate of yield of compensating products, the customs authorities will also rely on the conclusions provided by expert organisations (including customs laboratories) based on the applied goods processing technology.

3. The description, quality, and quantity of the processing products shall be finalised following the approval of the rate of yield of the compensating products.

4. In case the processing operations with the goods featuring permanent properties and characteristics are conducted in compliance with specific technical conditions conducive to the output of the compensating products of invariable quality, the competent bodies duly authorised by the Government of the Russian Federation will establish, for customs clearance purposes, standardised rates of yield for the compensating products.

In case of use of standardised rates of yield of compensating products, their importation, for customs clearance purposes, shall not be permitted with complete or partial exemption from customs duties and taxes in the quantities exceeding the established rates of yield of compensating products.

Article 203. Permit for the Outward Processing Procedure

1. Exportation of goods with a view to subjecting them to the outward processing procedure shall only be acceptable for the holder of a valid permit for goods’ outward processing procedure.

2. A permit for the outward processing procedure is issued to a declarant.

3. A permit for the outward processing procedure contains:

- the description, quality and quantities of the goods stated for the outward processing procedure and of the compensating products manufactured thereof;

- the goods processing operations and their methods;

- the rate of yield of compensating products provided said rate is determined (Item 4 of Article 202) or coordinated on the date of issue of the permit;

- the methods of identification of exported goods in compensating products;

- the time terms of goods processing;

- other information determined by the Federal Customs Authority as required for customs clearance purposes.

The form of the permit for goods processing is determined by the Federal Customs Authority.

4. A permit for goods processing remains in effect throughout the prescribed time limit of goods processing.

5. The person holding a permit for goods processing shall bear full responsibility for disbursement of customs duties and taxes as per Item 2 of Article 320 of this Customs Code.

Article 204. Issuance of Permit for Outward Processing Procedure

1. In order to obtain a permit for the outward processing procedure a person shall be obliged to submit an application to the customs office concerned containing the following details:

- on the applicant;

- on the person(s) directly involved in the goods processing procedure, and his (her/their) location;

- on the goods intended for outward processing;

- on the goods processing operations, their methods and duration;

- on location of production facilities involved in goods processing operations;

- on the rate of yield for compensating products provided said rate is determined (Item 4 of Article 202) or coordinated on the date of issue of the permit;

- on the compensating products and their quantities;

- on the methods of identification of exported goods in the compensating products manufactured thereof;

- on substitution of compensating products by foreign goods;

- on the time terms of goods processing.

2. The form of the application and the form of presentation of information contained therein is determined by the Federal Customs Authority.

The application ought to be supplemented with the documents confirming the declared information.

3. The customs office concerned considered the submitted application the documents supplemented thereto within 30 days from the day of their acceptance. Within the designated period the customs authorities verify the observance by the applicant of the established terms and conditions and pass a resolution with regard to coordinating the declared rate of yield of compensating products and duration of the processing procedure.

The customs office has the right to request that third parties, as well as the state agencies provide the documents verifying the declared information.

Note: the customs office has the right to extend the period of consideration of the application, but for not more than two months from the date of its acceptance.

4. Submitted as an application for goods processing may be the customs declaration whereby goods were placed under the outward processing procedure provided the original goods at the instance of their exportation and the compensating products manufactured thereof at the instance of their subsequent exportation are declared simultaneously to the same customs office in case:

(1) the purpose of placement of goods under the outward processing procedure is their repairs, including the repairs effected on the compensatory basis;

(2) the customs value of the goods placed under the outward processing procedure does not exceed 500,000 roubles.

5. In case said customs declaration is used as an application for the goods outward processing procedures, the time term of its consideration should not exceed the time limit set for the verification of customs declaration, as stipulated by Item 1 of Article 359 of this Customs Code. In this situation, the compensating products shall be declared at the instance of their importation to the same customs office that issued a permit for their processing procedure.

Article 205. Withdrawal of a Permit for Goods Processing

1. A permit for goods processing may be revoked by the customs authorities in case placement of goods under the outward processing procedure is precluded pursuant to the legal act of the Government of the Russian Federation adopted as per Item 4 of Article 198 of this Customs Code.

2. A decision to revoke the permit goes into effect on the date of entry into force of the respective legal act of the Government of the Russian Federation.

3. In the instance of withdrawal of a permit for goods processing, placement of goods under the outward processing procedure will be prohibited due to withdrawal of the permit, whereas the goods, which had been placed under the outward processing procedure before the permit was revoked, should complete the prescribed customs procedure pursuant to the requirements of this Paragraph.

4. The form of withdrawal of a permit for the outward processing procedure is determined by the Federal Customs Authority.

Article 206. Substitution of Compensating Products by Foreign Goods

Substitution of compensating products by foreign goods, whose description, quality and specifications coincide with those of the compensating products, will only be permitted provided the operations, to which said goods have been subjected pursuant to the outward processing procedure, constituted repairs, or in the instances when customs authorities do not perform identification of goods in accordance with this Customs Code. In case substitution of compensating products by foreign goods is acceptable, importation of foreign goods may be completed prior to the exportation of the Russian goods concerned for their outward processing procedure.

Article 207. Application of Partial of Complete Exemption of Compensating Products from Customs Duties and Taxes

1. Compensating products may be granted complete exemption from customs duties and taxes provided the goods concerned have been exported and subjected to the outward processing procedure for the purpose of warranty (gratuitous) repairs. As regards outward processing of the goods that were released for free circulation in the customs territory of the Russian Federation, such goods will not be granted complete exemption from customs duties and taxes if they were release for free circulation with consideration of the defects constituting the reason for their repairs.

2. In other cases compensating products shall be partially exempted from customs duties and taxes, except excise taxes, in the following order:

(1) the amount of payable customs duties and taxes shall be defined as a difference between the total import duties levied on compensating products and the total import duties that would be levied on the exported goods as though they were released for free circulation provided their compensating products are subjected to specific rates of customs duties and their outward processing operation is not repairs, or based on the cost of the goods processing operations, which, in the absence of documents confirming the value of such operations, may be defined as a difference between the customs value of compensating products and the customs value of the goods exported for outward processing thereof.

(2) the payable VAT amount shall be determined based on the cost of the goods processing operations, which, in the absence of documents confirming the value of such operations, may be defined as a difference between the customs value of compensating products imported to the customs territory of the Russian Federation and the customs value of the goods exported for outward processing thereof.

3. The excise tax levied on compensating products shall be remitted in full except the instances when a goods outward processing operation constitutes repairs of the exported goods.

4. Compensating products shall not be granted partial or complete relief from customs duties and taxes in case of their importation after the expiry of their prescribed term of processing (Article 201), or in violation of other terms and conditions stipulated by this Paragraph or their inadequate confirmation.

Article 208. Completion of the Customs Procedure

1. The goods outward processing procedure shall be completed by importation of compensating products to the customs territory or by another method stipulated by this Article.

2. In case the compensating products are imported to the customs territory of the Russian Federation in several lots, the final verification of their quantity specified in the goods processing permit (Article 203) may be conducted periodically upon importation of the compensating products, but at least quarterly and not later than within 30 days following the importation of the last lot of the compensating products. In case such verifications reveal that the holder of a processing permit is liable for dutiable payments, the amounts of such payments shall be exempted from any penalty fees provided they are reimbursed within 10 working days from the date when the customs office concerned issued a written resolution stipulating remittance of said amounts. The customs authorities will be obliged to send their resolution stipulating the exigency of dutiable payments to the holder of the processing permit not later than on the day following the day of passage of said resolution.

3. The outward processing procedure may be completed by re-importation of the exported goods and/or placement of said goods under the customs procedure applicable to exported goods provided all the terms and conditions stipulated by this Customs Code are observed. Substitution of the goods’ outward processing procedure with the export customs procedure is prohibited if the exported goods and the compensating products manufactured thereof are liable for mandatory re-importation pursuant to conformable statutes of the Russian Federation. Substitution of the goods’ outward processing procedure with the customs procedure applicable to imported goods is permissible without de facto presentation of goods for inspection to the customs authorities.

In case of substitution of the outward processing procedure by the export procedure, the exported goods shall be liable for export duties, if such duties are stipulated, as well as for the interest thereon calculable as though disbursement of the export duties has been postponed from the date of acceptance of the pertinent customs declarations.

4. In case compensating products are placed under a customs processing procedure which does not stipulate their release for free circulation, the amounts of export customs and duties levied on such goods shall not exceed the amounts levied on goods pursuant to Items 2 and 3 of Article 207 of this Customs Code without consideration of penalty fees and interest, except the instance stipulated by Item 5 herein.

5. Upon importation of compensating products manufactured from the goods, which were exempted from customs duties and taxes prior to their exportation (Item 3 of Article 198), at the instance of their release for free circulation such compensating products shall be liable both for the customs duties and taxes payable as per Article 207 of this Customs Code and the import customs duties and taxes from which such products were exempted prior to their exportation for the outward processing procedure.

§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.

§5. Bonded [Customs] Warehouse

Article 215. Content of the Customs Procedure

The bonded [customs] warehouse constitutes a customs procedure under which the goods imported to the customs territory of the Russian Federation are stored in customs custody without payment of customs duties, taxes and without application of any economic restrictions established pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, whereas the goods intended for export are stored in customs custody on the terms and conditions stipulated by this Paragraph.

Article 216. Bonded Warehouses

1. Bonded warehouses are set up in specially allocated and equipped rooms or on specialised territories and/or open plots of land meeting the requirements set forth by Article 225 of this Customs Code.

The goods placed under the customs procedure of the bonded warehouse shall be stored in bonded warehouses, except the goods specified in Item 4 of Article 217 of this Customs Code.

2. Bonded warehouses constitute a customs control zone.

3. Goods may be placed for storage to any bonded warehouse with consideration of the restrictions stipulated by this Customs Code.

Article 217. Terms of Placement of Goods under the Customs Procedure

1. Any merchandise may be placed under the customs procedure of the bonded warehouse except the goods and commodities whose importation to and exportation from the Russian Federation is prohibited or the goods subject to the restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities and listed in the Register authorised by the Government of the Russian Federation, as well as the goods and commodities whose the “good-for-use” period on the date of their declaration for the customs procedure of the bonded warehouse is shorter than the terms stipulated by Item 2 of Article 218 of this Customs Code.

2. The goods capable of damaging other goods or requiring special storage conditions ought to be stored in specially equipped bonded warehouses or in isolated rooms thereof with the observance of all mandatory requirements predicated on the Law of the Russian Federation on Technical Regulations.

3. Placed under the customs procedure of the bonded warehouse may be merchandise that was previously subjected to other customs procedures. In the instances stipulated by this Customs Code, foreign goods may also be placed for storage in a bonded warehouse for the purpose of suspending their terms of customs procedures, which do not involve release of goods for free circulation.

4. The goods located in reasonable proximity from a bonded warehouse whose dimensions preclude their placement inside the warehouse may be subjected to the customs procedure of the bonded warehouse without their de facto storage therein upon a written resolution to that effect issued by the customs office concerned. In this case, the declarant of the goods’ customs status of the bonded warehouse shall be obliged to submit to the customs office concerned his (or her) guarantee of the dutiable payments in the amount equivalent to that payable for the goods in the instance of their release for free circulation, as well as make a commitment to observe all the terms and conditions stipulated by this Paragraph.

Note: transfer of goods to any third person for use or disposal of by any other way, including the goods’ alienation during their term of the customs procedural status of the bonded warehouse, is prohibited.

Article 218. Time Terms of Storage of Merchandise in a Bonded Warehouse

1. The maximum term of storage of merchandise in a bonded warehouse is three years.

2. Merchandise with a limited “good-for-use” and/or “good-for-sale” period should be subjected to the customs procedure other than the bonded warehouse and removed from the warehouse not later than 180 days prior to the expiration of its “good-for-use” and/or “good-for-sale” periods with the exception of perishable products whose terms of storage may be shortened by the decision passed by the Federal Customs Authority.

3. Merchandise term of storage shall be stated in the customs declaration within the time terms stipulated by this Article by the person responsible for placing said merchandise under the customs procedure of the bonded warehouse.

4. Upon a motivated request by the person responsible for placing merchandise under the customs procedure of the bonded warehouse, a customs office concerned may extend its term of storage within the time terms stipulated herein.

Article 219. Operations with Goods Stored in a Bonded Warehouse

1. The persons endowed with special powers with regard to merchandise placed for storage in bonded warehouses and their representatives have the right to perform ordinary operations required for ensuring the goods preservation in unchanging state including the goods’ inspections, measurements and movement within the limits of the bonded warehouse provided such operations will not entail any change of the goods condition, damage their packaging and/or change the identification facilities affixed to them.

2. Other operations with merchandise, which are not specified in Item 1 herein, including taking samples and specimens of the goods, performing repairs on damaged packaging, as well as the operations needed for preparing goods for departure from the bonded warehouse and their subsequent haulage, such as breaking up consignments, formation of goods batches, goods grading, packaging, repackaging, marking and operations for improvement of their consumer properties, may be effected upon the express permission of the customs authorities by the persons endowed with special powers with regard to the goods and their representatives.

The customs authorities have the right to deny permission for such operations if their performance may cause loss of goods or change of their essential properties.

3. The samples and specimens of foreign goods shall be liable for customs duties and taxes identical to those payable for such goods at the instance of their release for free circulation, except the instance when such samples and/or specimens are returned to the bonded warehouse within one month.

4. Alienation of merchandise stored in a bonded warehouse, as well as re-assignment of its ownership rights, the rights to utilise and/or dispose of it will be permissible provided the customs authorities concerned have been preliminarily notified in writing of such measures, except the goods specified in Item 4 of this Customs Code. The person who has thereby acquired ownership rights of said merchandise should be obliged to submit to the customs authorities his (or her) written obligation to observe the terms and conditions stipulated by this Paragraph with regard to that merchandise. Starting from the day following the day on which the customs authorities received this written obligation, the person who has acquired ownership rights of said merchandise shall be endowed with the rights and assume the responsibilities stipulated by this Customs Code for the person who has placed merchandise for storage in a bonded warehouse.

5. Upon written permission issued by the customs authorities goods may be moved from one bonded warehouse to another before expiry of the time terms specified in Article 218 of this Customs Code. In this situation, the term of storage of merchandise in a bonded warehouse is not interrupted or suspended.

Article 220. Exemption of Export Goods from Dutiable Payments and Indemnity of Paid Taxes and Duties

1. When foreign goods designated for exportation from the customs territory of the Russian Federation, which have been subjected to other customs procedures, are placed for storage to a bonded warehouse, they shall be exempted from customs duties and taxes, or the previously paid amounts of customs duties and taxes shall be reimbursed by customs authorities provided such exemptions and indemnity were stipulated for the goods’ de facto exportation from the customs territory of the Russian Federation. In case said foreign goods are not exported from the customs territory of the Russian Federation, all the customs duties and taxes from which said goods were exempted or which were reimbursed shall be repaid to the customs authorities including the interests thereof. Calculations of the amounts of import duties and taxes, as well as of the interests thereof shall be based on the requirements regulating termination of the term of the preceding customs procedure and in compliance with the terms and conditions regulating placement of goods under the newly selected customs procedure opted by the goods declarant for disposal of said goods on the customs territory of the Russian Federation.

2. The Russian goods intended for exportation from the customs territory of the Russian Federation in accordance with the export customs procedure shall be exempted from domestic taxes, or the domestic taxes levied thereto shall be reimbursed or indemnified if such exemption, reimbursement or indemnity are stipulated for the goods’ de facto exportation from the customs territory of the Russian Federation in accordance with the Russian legislation on taxes and duties. If such goods have not been exported within six months from the date of their placement in the bonded warehouse, said exemption, reimbursement and indemnity shall be charged including the interest calculable on the basis of the refinance rates established by the Central Bank of the Russian Federation which was in effect throughout the entire period of storage of goods in the bonded warehouse in accordance with the procedures specified by this Customs Code for levying customs payments.

Article 221. Broken Down, Perished or Damaged Merchandise

Merchandise which has been broken down, perished or damaged as a result of an accident or force majeure in the course of its temporary storage shall be subject to the customs procedure determined by the declarant, as if said merchandise were imported to the customs territory of the Russian Federation in broken down, perished or damaged condition.

Article 222. Determination of Goods Customs Value at instance of their Release for Free Circulation

Whereas calculation of customs duties and taxes levied based on this Customs Code is based on the customs value of goods and/or their quantities following their storage in a bonded warehouse, at the instance of goods release for free circulation, their customs value and/or quantities shall be determined as of the date of their release for free circulation.

Article 223. Completion of Customs Procedures

1. Merchandise stored in a bonded warehouse should be declared for a different customs procedure not later than on the day of expiry of its term of storage in a bonded warehouse (Article 218) in compliance with the terms and conditions stipulated by this Customs Code.

Upon expiry of said term of storage, disposal of such merchandise shall be regulated by Article 41.

2. Any person who is authorised to act as a declarant as per Article 126 of this Customs Code has the right to perform the customs operations required for completing the term of the customs procedure of the bonded warehouse in accordance with this Customs Code.

3. Upon release from the bonded warehouse of the merchandise, which previously enjoyed the customs procedure of temporary importation, for its subsequent use on customs territory of the Russian Federation in compliance with the terms and conditions of this procedure, the term of the merchandise’s temporary importation is resumed. In case of its release for free circulation, calculation of dutiable payments thereto shall be made as per Article 214 of this Customs Code.

4. As regards the merchandise subject to the customs procedure of storage in a bonded warehouse, the bonded warehouse owner has the right to declare the customs procedure of merchandise destruction.

Article 224. Types of Bonded warehouses

1. Bonded warehouses may be of open or of closed type.

Bonded warehouses shall have the status of open-type warehouses if they are suitable for storage of any kinds of merchandise and are accessible by any persons.

Bonded warehouses shall have the status of closed-type warehouses if they are intended for the storage of goods belonging to the warehouse owner (Article 226).

2. The Government of the Russian Federation has the right to determine the categories of merchandise, which may be stored in closed-type bonded warehouses.

3. The open- and closed-type bonded warehouses may be used for storing specific kinds of merchandise requiring special storage conditions or capable of causing damage to other goods (specialised bonded warehouses).

Article 225. Technical and Engineering Requirements to Facilities and Location of Bonded Warehouses

1. The rooms and/or open plots of land intended for use as a bonded warehouse ought to be designed and equipped so as to ensure preservation and safety of merchandise, preclude admission to goods of any unauthorised persons (who are not the warehouse employees, who have no powers with regard to the goods and who are not representatives of the persons who have such powers), as well as enable customs control inspection of said goods. The place of location of bonded warehouses shall be chosen with consideration of the interests of trade organisations and other interested persons.

2. Based on Items 1 of this Article, the Federal Customs Authority establishes mandatory requirements to the technical facilities, equipment and the place of location of bonded warehouses and/or open plots of land designated for use as bonded warehouses.

Article 226. Owners of Bonded warehouses

1. A bonded warehouse may be owned by a Russian juridical person included in the Register of Owners of Bonded Warehouses.

2. The owner of a bonded warehouse shall be obliged to ensure storage of goods in customs custody in the instances and on the terms stipulated by this Customs Code.

3. Relations between the owner of the bonded warehouse and the persons committing their goods for storage are established on a contractual basis. The owner of an open-type bonded warehouse is not permitted to decline concluding a goods storage contract provided he (or she) has adequate storage facilities.

4. Bonded warehouses may be owned by customs offices without entering them in the Register of Owners of Bonded Warehouses. The Federal Customs Authority shall be obliged to publish in its official releases at least once in six months the register of bonded warehouses owned by the customs authorities, as well as the changes made in said register.

Article 227. Terms of Entry onto the Register of Owners of Bonded Warehouses

1. The terms of entry into the Register of Owners of Bonded Warehouses are, as follows:

(1) ownership (possession as private property, lease or economic administration) of rooms and/or open plots of land suitable for use in capacity of a bonded warehouse and meeting all laid requirements thereto (Article 225);

(2) guarantee of dutiable payments as per Article 339 of this Customs Code;

(3) availability of the applicant’s civil liability insurance policy covering the cases, which may occur as a result of damage caused to the goods belonging to other persons trusted for storage to the owner of said bonded warehouse, or due to breach by other persons of their commitments pursuant to their goods storage contracts. The insurance premium, which the insurer shall be obliged to cover in the event of occurrence of each insurance case to the persons whose property interests have been damaged, shall be determined proceeding from the useful area or useful volume, and it shall be calculated on the basis of 3,500.00 roubles per square metre of useful area if goods were stored at an open plot of land used as a bonded warehouse, or on the basis of 1,000.00 roubles per cubic metre of useful volume if goods were stored in the room used as a bonded warehouse, but it may not be below the sum of two million roubles.

2. In case ownership of rooms and/or open plots of land is exercised on the basis of a lease agreement, such an agreement ought to be concluded for the period of at least one year as on the date of submission of the application for entry into the Register of Owners of Bonded Warehouses.

Article 228. Application for Entry onto the Register of Owners of Bonded Warehouses

1. The record certifying entry of a person into the Register of Owners of Bonded Warehouses shall be made based on an application submitted by the person meeting the criteria specified in Article 226 of this Customs Code.

2. Said application for the entry into the Register of Owners of Bonded Warehouses should contain:

(1) an application to the customs office concerned with a request to be entered into the Register of Owners of Bonded Warehouses;

(3) information pertaining to the type of the bonded warehouse (in case of setting up a bonded warehouse of closed type, substantiation of the necessity and expediency of setting up a bonded warehouse of such type);

(4) information on the available rooms and/or open plots of land owned by the applicant and intended for use as a bonded warehouse, their location, arrangement, facilities, and equipment;

(5) information on dutiable payments as per Article 339 of this Customs Code;

(6) information on the applicant’s civil liability insurance policy.

3. The application for entry into the Register of Owners of Bonded Warehouses should be supplemented with the following documents certifying the declared information, including:

- the applicant’s incorporation documents and the document certifying the applicant’s entry as a juridical person in the General State Register of Juridical Persons;

- the certificate of the applicant’s state registration as a juridical person;

- the certificate of the applicant’s registration by the tax authorities;

- the documents certifying the applicant’s right of ownership of the rooms and/or open plots of land intended for use as bonded warehouses;

- the plans and drawings of the rooms and/or open plots of land intended for use as bonded warehouses;

- the documents certifying the size of the completely formed authorised (equity) capital, the authorised investment fund or the applicant’s share therein;

- the documents certifying the applicant’s guarantee of dutiable payments as per Article 339 of this Customs Code;

- the bank references certifying the applicant’s accounts opened in them;

- the applicant’s insurance policy.

4. Each territorially separate room and/or territorially separate open plot of land intended for use as a bonded warehouse shall require a separate application.

Article 229. Certificate of Entry onto the Register of Owners of Bonded Warehouses

1. Entry of the owner of a bonded warehouse onto the Register of Owners of Bonded Warehouses shall be effected with regard to each territorially separate room and/or territorially separate open plot of land used as a bonded warehouse. The owner of the bonded warehouse is issued an individual Certificate of Entry into the Register of Owners of Bonded Warehouses for each territorially separate room and/or territorially separate open plot of land used as a bonded warehouse.

2. The certificate of entry onto the Register of Owners of Bonded Warehouses shall contain:

(1) the name of the owner of a bonded warehouse, the definition of his (or her) organisational and juridical entity and its location;

(2) information on ownership of each room and/or open plot of land which are used as a bonded warehouse;

(3) information on the amounts and form of guarantee of dutiable payments to be made as per Article 339 of this Customs Code;

(4) designation of the type of the bonded warehouse;

(5) designation of location of the bonded warehouse.

3. The Certificate of Entry onto the Register of Owners of Bonded Warehouses shall remain in force for the period of five years.

Article 230. Obligations of the Owner of a Bonded Warehouse

1. The owner of a bonded warehouse shall be obliged to:

(1) observe the terms and requirements stipulated by this Customs Code with regard to goods stored in a bonded warehouse;

(2) keep record of the stored goods in customs custody and submit to the customs authorities reports on storage of said goods (Article 364);

(3) ensure safety of merchandise stored at the bonded warehouse;

(4) preclude access to the stored goods of any unauthorised persons without the permission of the customs authorities;

(5) pay customs duties and taxes in the instances stipulated by Item 2 herein, as well as per Item 1 of Article 90 of this Customs Code if the owner of said bonded warehouse holds a valid permit for the domestic customs transit procedure.

2. The owner of a bonded warehouse shall be responsible for payment of customs duties and taxes levied on the goods kept at the bonded warehouse in case of their loss or release without the requisite permission by the customs authorities. The owner of a bonded warehouse shall not be responsible for payment of customs duties and taxes levied on the goods that have been irretrievably lost as a result of an accident, due to force majeure or their natural diminution under normal storage conditions.

Article 231. Withdrawal of Certificate of Entry onto the Register of Owners of Bonded Warehouses

The Certificate of Entry onto the Register of Owners of Bonded Warehouses may be revoked by the customs authorities in the following situations:

(1) breach by the owner of a bonded warehouse of at least one of the terms of entry into the Register of Owners of Bonded Warehouses set forth by Article 227 of this Customs Code;

(2) breach by the owner of a bonded warehouse of his (or her) obligations stipulated by Sub-Item 5) of Item 1 in Article 230 of this Customs Code;

(3) multiple cases of application of administrative penalties to the owner of the bonded warehouse due to non-fulfilment by the latter of his (or her) responsibilities or the administrative offences in the sphere of the customs system stipulated by Articles 16.1, 16.2, 16.3, 16.9, 16.11, 16.13, 16.14 and 16.15 of the Code of the Russian Federation on Administrative Offences.

Article 232. Operations with Merchandise in case of the Exclusion of the Owner of a Bonded Warehouse from the Register of Owners of Bonded Warehouses

In case the Certificate of Entry onto the Register of Owners of Bonded Warehouses has been revoked or the owner of the bonded warehouse excluded from the Register of Owners of Bonded Warehouses due to other reasons, the goods stored in the bonded warehouse ought to be transferred to another bonded warehouse within two months following the date of said exclusion. The owner of the bonded warehouse shall be obliged to notify the persons who placed their merchandise for storage in said bonded warehouse within three days from the date of his (or her) exclusion from the Register of Owners of Bonded Warehouses. Placement of goods to said bonded warehouse shall be precluded beginning from the date following the date of exclusion of the owner of said temporary storage warehouse from the Register of Owners of Bonded Warehouses.

Article 233. Storage of Merchandise at Bonded Warehouses Owned by Customs Offices

1. The bonded warehouses owned by customs offices are warehouses of open type, and they should meet the criteria set forth by Article 225 of this Customs Code.

2. Throughout storage of merchandise at bonded warehouses owned by customs offices, the relations between the customs authorities and the persons placing goods for storage at said warehouses shall be regulated by this Customs Code and the Civil Code of the Russian Federation. The contract for storage concluded by a customs office with a person placing goods at a customs-owned bonded warehouse shall be regulated by the requirements of civil law of the Russian Federation pertaining to a public contract. The customs authorities are not permitted to decline conclusion a storage contract if said warehouse has adequate storage facilities.

Acceptance of merchandise for storage by a customs office shall be certified by a receipt to that effect issued to the person who places his (or her) merchandise for storage at a customs-owned bonded warehouse, the form of the receipt being determined by the Federal Customs Authority.

3. The rights, obligations, and responsibilities vested in the customs authorities owing to the fulfilment by customs offices of their obligations pursuant to storage of merchandise in bonded warehouses stem from the essence of said obligations based on the general storage requirements stipulated by the Civil Code of the Russian Federation with consideration of the provisions set forth by this Customs Code.

The customs authorities shall be responsible for reimbursement of customs duties and taxes levied on the goods kept in a customs-owned bonded warehouse in case of loss of the goods stored therein, except the cases when the goods have been irretrievably lost as a result of an accident, due to force majeure, or as a result of their natural diminution under normal storage conditions.

4. Storage of goods at a customs-owned bonded warehouse is free of charge. The person who has placed his (or her) goods for storage in a customs-owned bonded warehouse shall be obliged to cover the expenses incurred by the storage of goods as per Item 2 of Article 897 of Part Two of the Civil Code of the Russian Federation pursuant to the procedure approved by the Government of the Russian Federation.

Chapter 20.
COMPLETION OF CUSTOMS PROCEDURES

§1. Re-Import

Article 234. Content of the Customs Procedure

1. Re-import constitutes a customs procedure under which the goods under which were previously exported the customs territory of the Russian Federation are imported back to the customs territory of the Russian Federation within prescribed terms of time (Sub-Item 2) of Item 1 in Article 253) without payment of customs duties and taxes or application of economic restrictions pursuant to Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

2. For customs clearance purposes, the goods placed under the customs re-import procedure are regarded as goods released for its free circulation.

Article 235. Terms of Placement of Merchandise under Customs Procedure

1. Placement of merchandise under the re-import customs procedure shall be permitted in the following instances:

(1) at the moment of exportation from the customs territory of the Russian Federation, merchandise had the status of the goods released for free circulation or constituted compensating products resulting from processed of foreign goods (Paragraph 1 of Chapter 19);

(2) merchandise has been declared for the customs re-import procedure for three years beginning from the date following the date of its exportation from the customs territory of the Russian Federation. Upon a motivated request by an interested party, the Federal Customs Authority may authorise the extension of the terms with regard to building equipment, equipment used for industrial production, extraction of mineral resources, and similar purposes provided all the other requirements contained herein are observed;

(3) merchandise remains in the same state as it was at the moment of its exportation from the customs territory of the Russian Federation, except the changes resulting from natural wear or natural diminution under normal haulage, storage and utilization (operation) conditions;

(4) all dutiable amounts of import duties, taxes, subsidies and other payments, which are liable for redemption to the state budget at the instance of goods re-import, have been paid.

2. Use of goods outside the customs territory of the Russian Federation for making profit, and/or operations with goods required for their preservation, including repairs (except overhaul and upgrading), technical servicing, and other operations, which may be needed for maintaining the goods consumer properties and preserving them in the same state as they were on the day of their exportation from the customs territory of the Russian Federation, does not preclude placement of said goods under the customs re-import procedure, except the instances when goods repairs have resulted in an increase of their value in comparison with their value on the day of their exportation.

3. The goods which earlier were subject to other customs procedures may be placed under the customs re-import procedure.

Article 236. Reimbursement of Import Duties, Taxes, Subsidies and other Charges at Goods Re-Import

1. At the instance of goods re-import the following charges should be reimbursed to the federal budget:

- the amounts of import duties, taxes, and/or interests thereof when such duties, taxes, and/or interests thereof were not charged or were refunded owing to the goods exportation from the customs territory of the Russian Federation;

- the amounts of domestic taxes, subsidies and other charges unpaid or received directly or indirectly as repayments, privileges or indemnities owing to the goods exportation from the customs territory of the Russian Federation.

2. The amounts of import duties, taxes, and/or interests thereof shall be calculated according to the rules specified in Item 4 of Article 185 of this Customs Code for determining the payable amounts of import duties and taxes ay the instance of release of goods for free circulation.

The amounts of domestic taxes shall be calculated proceeding from the rates effective on the date of acceptance of the customs declaration at the instance of exportation of goods from the customs territory of the Russian Federation, as well as the customs value of goods and/or their quantities, as were determined during the exportation of goods from the customs territory of the Russian Federation.

3. The order of calculation of subsidies and other amounts, which are not specified in Item 2 herein, is determined by the Government of the Russian Federation. The Government of the Russian Federation has the right to determine the instances when the specified amounts are levied with interests thereof based on the refinance rates established by the Central Bank of the Russian Federation.

4. The above amounts of customs duties, taxes, subsidies and others including interests charged thereof stipulated by this Article shall be levied by the customs authorities in the order established by this Customs Code for levying dutiable payments.

Article 237. Documents and Information Required for Placing Goods under the Customs Re-Import Procedure

1. In order to obtain permission for placement of goods under the customs re-import procedure the declarant shall be obliged to inform the customs authorities of the circumstances of the goods exportation from the customs territory of the Russian Federation and submit information pertaining to the goods repairs if they underwent any repairs outside the customs territory of the Russian Federation.

2. In order to certify the information contained in Item 1 herein the declarant shall submit to the customs authorities the customs declaration which was accepted at the instance of the goods exportation from the customs territory of the Russian Federation, the documents certifying the date of the goods’ conveyance across the customs border of the Russian Federation at the instance of their exportation, and the documents confirming observance by the declarant of the provisions set forth by Article 236 of this Customs Code, as well as the other documents certifying the declared information.

Article 238. Reimbursement of Export Duties at Goods Re-Import

1. The paid amounts of export duties shall be reimbursed if the goods are imported to the customs territory of the Russian Federation in accordance with the re-import procedure not later than in six months from the day following the day of conveyance of goods across the customs border at the instance of their exportation from the customs territory of the Russian Federation.

2. The customs authorities reimburse the paid amounts of customs duties in accordance with the provision of this Customs Code.

§ 2. Re-Export

Article 239. Content of the Customs Procedure

Re-export constitutes a customs procedure under which the goods, which were previously imported to the customs territory of the Russian Federation, are exported from said territory exempt from or with reimbursement of the paid customs import duties and taxes and without subjecting them to the economic restrictions or prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 240. Terms of Placement of Goods under the Customs Procedure

1. The customs re-export procedure applies to foreign goods, including those imported to the customs territory of the Russian Federation in violation of the prohibitions imposed pursuant to the provisions of the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities (Item 1 of Article 13).

The goods released for free circulation may be placed under the customs re-export procedure provided the requirements stipulated by Article 242 of this Customs Code are observed.

2. Placed under the customs re-export procedure may be the goods, which were previously subjected to other customs procedures, for the purpose of completing their term of such customs procedure in accordance with this Customs Code.

3. Federal laws and other legal norms and statutes of the Russian Federation and/or international treaties to which the Russian Federation is party may establish additional terms and conditions for placement of goods under the customs re-export procedure.

Article 241. Application of Customs Duties and Taxes to Goods under the Re-Export Procedure

1. At the instance of re-export, goods shall be exempted from import duties and taxes, and/or the amounts, which were previously levied on them, reimbursed provided said exemption and/or reimbursement are stipulated by the terms of the customs procedure said goods have been subject to during their stay in the customs territory of the Russian Federation.

2. At the instance of re-export, goods shall be exempted from import duties.

Article 242. Application of the Customs Re-Export Procedure to Goods Released for Free Circulation

1. The goods released for free circulation may be subject to the re-export procedure if it has been established that at the instance of their conveyance across the customs border said goods featured various defects or otherwise failed to comply with the conditions of the foreign economic transaction with regard to their quantity, quality, description, or packaging for which reason said goods are returned to the supplier or to another person designated by the supplier provided the following terms and conditions are observed:

- the goods have not been used or repaired in the Russian Federation, except for the cases when the use of said goods was necessitated for the purpose of detecting their defects or revealing other circumstances causing the return of said goods;

- the goods are identifiable by the customs authorities;

- the goods are re-exported within six months beginning from the day of their release for free circulation.

2. During re-export of goods as per Item 1 herein, the paid amounts of customs duties and taxes are reimbursed pursuant to Article 356 of this Customs Code.

§ 3. Destruction

Article 243. Content of the Customs Procedure

The destruction constitutes a customs procedure under which foreign goods are destroyed under customs control without payment of customs duties and taxes or application of any economic restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 244. Terms of Placement of Goods under the Customs Procedure

1. Destruction of goods is permissible provided the goods subjected to the destruction procedure cannot be restored in their original state by any economically beneficial method.

2. The customs destruction procedure may not be applied to the following categories of goods:

(1) cultural value;

(2) animals and plants under threat of extinction, their parts and derivatives, except the cases when their destruction is necessitated by prevention of epidemics and epizooties;

(3) the goods accepted by the customs authorities as collateral until the collateral-based relations are completed;

(4) goods which have been withdrawn or sequestered in accordance with law of the Russian Federation;

(5) other goods listed in the register approved by the Government of the Russian Federation.

3. Destruction of goods is prohibited when:

- it may inflict substantial damage on environment or pose direct or potential threat to human life and health;

- it involves their consumption in accordance with their regular intent;

- it may incur expenses on the state bodies of the Russian Federation.

Article 245. Time Terms and Place of Merchandise Destruction

1. The time terms for merchandise destruction are determined by the customs authorities based on the declarant’s applications proceeding from the time which could be reasonably required for accomplishing the operations for destroying said category of merchandise by the declared method, as well as the time that may be required for hauling the merchandise from the place of its storage to the place of its destruction.

2. The place intended for merchandise destruction shall be designated by the declarant with consideration of the requirements of Russian law on environmental protection.

Article 246. Application of Customs Destruction Procedure to Merchandise Destroyed by an Accident or Force Majeure

1. The customs destruction procedure may be applied to goods which have been destroyed, irretrievably lost, or damaged as a result of an accident or force majeure.

2. At the instance of placing any destroyed or damaged merchandise under the customs destruction procedure the provisions of Item 1 of Article 244 and Article 247 of this Customs Code shall apply.

Article 247. Wastes

1. Wastes, which have formed as a result of destruction of foreign goods, shall be liable for customs duties and taxes equivalent to those payable for goods imported to the customs territory of the Russian Federation in the state of said wastes, except for the instances when the wastes have been exported from the customs territory of the Russian Federation or processed into the state in which they become unsuitable for further commercial utilization in the customs territory of the Russian Federation and in which they cannot be restored to their original state by any economically beneficial method.

Wastes liable for customs duties and taxes should be declared.

2. For the purpose of levying customs duties and taxes, wastes shall be regarded as goods imported to the customs territory of the Russian Federation.

3. Wastes customs value shall be determined based on the rules stipulated by Article 183 of this Customs Code.

4. Wastes declarant bears full responsibility for the disbursement of requisite customs duties and taxes.

§ 4. Rejection in Favour of State

Article 248. Content of the Customs Procedure

Rejection of goods in favour of the state constitutes a customs procedure under which goods are transferred to state property free of charge and without payment of customs duties and taxes or application of economic restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 249. Terms of Placement of Goods under the Customs Procedure

1. Rejection of goods in favour of the state should not involve any expenses on the part of the state bodies of the Russian Federation which cannot be reimbursed by the funds raised as a result of sale of said goods.

2. The customs procedure of goods rejection in favour of the state may not be applied to the goods prohibited for circulation in accordance with the law of the Russian Federation.

3. The list of goods and commodities, which may not be placed under the customs procedure of goods rejection in favour of the state, is approved by the Government of the Russian Federation.

Article 250. Status of Goods Rejected in Favour of State

1. The goods placed under the customs procedure of goods rejection in favour of the state shall be transferred to federal property in accordance with this Customs Code.

2. Beginning from the moment of their transfer to federal property, the goods and commodities rejected by a person in favour of the state, for customs clearance purpose, shall acquire the status of goods released for free circulation in the customs territory of the Russian Federation.

Article 251. Responsibility for Non-Observance of Customs Procedures

Responsibility for the lawful disposal of goods through their placement under the customs procedure of goods rejection in favour of the state shall be vested in declarant. The customs authorities shall not indemnify any property claims raised by the persons who have powers with regard to the goods, which the declarant has rejected in favour of the state.

Chapter 21.
SPECIAL CUSTOMS PROCEDURES

§1. Temporary Exportation

Article 252. Contents of the Customs Procedure

1. Temporary exportation constitutes a customs procedure under which the goods in free circulation in the customs territory of the Russian Federation may be temporarily used outside the customs territory of the Russian Federation with their full conditional exemption from export duties and taxes and free from any restrictions of economic nature stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

2. The goods exported pursuant to the customs temporary exportation procedure shall not be exempted from domestic taxes; the domestic taxes levied thereto shall not be redeemed or reimbursed.

Article 253. Terms of Placement of Goods under Customs Procedure

Temporary exportation of goods shall be permissible provided the temporarily exported goods may be identified by customs authorities at the instance of their re-importation, except the instances when temporarily exported goods may be substituted by goods of the same make pursuant to the international treaties to which the Russian Federation is party.

Article 254. Time Terms of Temporary Exportation

1. The time terms of temporary exportation are prescribed by the customs authorities based on the declarant’s request proceeding from the purpose and circumstances of given exportation and with consideration of the provisions of Item 2 herein.

Upon the declarant’s motivated request, the declared time terms of temporary exportation of goods may be prolonged with consideration of the provisions of Item 2 herein.

2. The Government of the Russian Federation has the right to prescribe the time limits regulating the terms of temporary exportation for individual categories of goods whose re-importation to the customs territory of the Russian Federation is mandatory under law of the Russian Federation.

Article 255. Application of Customs Duties and Taxes to Goods under Temporary Exportation Procedure

1. The goods under the customs temporary exportation procedure shall be conditionally exempted from customs duties and taxes.

2. In case of non-importation of the temporarily exported goods, the export customs duties and taxes applicable to said goods shall be repaid proceeding from the goods customs value and/or quantity at the instance of the exportation, as well as the rates of customs duties effective on the date of the goods declaration for the customs procedure of temporary exportation. In addition, the declarant shall be charged interest on said dutiable payments based on the refinance rates established by the Central Bank of the Russian Federation as though said dutiable payments were postponed on the day of placement of goods under the customs procedure of temporary exportation. No interest shall be charged on the amounts of customs export duties at the instance of declaration of the customs export procedure with regard to natural gas, which has been temporarily exported through a pipeline for storage in an underground reservoir outside the customs territory of the Russian Federation.

Article 256. Completion of the Customs Procedure

1. The goods under the customs temporary exportation procedure shall be liable for re-importation to the customs territory of the Russian Federation (Article 254) or declared for a different customs procedure not later than on the date of expiry of the time term stipulated cy customs authorities for their temporary exportation.

2. Upon a request made by a person responsible for the placement of goods under the customs temporary exportation procedure, the customs authorities may substitute the customs procedure of temporary exportation by the customs export procedure provided all conditions and requirements stipulated by this Customs Code are observed, except in the instances when, in accordance with law of the Russian Federation, the temporarily exported goods shall be subject to mandatory re-importation to customs territory of the Russian Federation.

3. In case the property rights to the temporarily exported goods have been transferred to a foreign person, the Russian person responsible for the placement of said goods under the customs procedure of temporary exportation shall be obliged to change the customs procedure of temporary exportation for the customs export procedure, except in the instance stipulated by Item 2 herein.

4. Substitution of the goods customs procedure of temporary exportation by the customs export procedure may be effected without actual presentation of the goods concerned to the customs authorities for inspection.

Article 257. Responsibility for Dutiable Payments

Responsibility for the dutiable payments pursuant to Item 2 of Article 320 of this Customs Code shall be borne by the person who has placed the goods under the customs procedure of temporary exportation.

§2. Duty-Free Trade

Article 258. Content of the Customs Procedure

1. Duty-free trade constitutes a customs procedure under which foreign goods imported to the customs territory of the Russian Federation or Russian goods are sold by retail in duty-free shops directly to natural persons at the instance of their departure from the customs territory of the Russian Federation without payment of customs duties and taxes, or application of any economic restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

2. Sale of the goods specified in Item 1 herein in duty-free shops is effected under customs control in the customs territory of the Russian Federation at the border gates established at the State Border of the Russian Federation.

3. Upon placement of Russian goods under the duty-free trade customs procedure, said goods shall be exempted from domestic taxes; the paid domestic taxes levied thereto shall be redeemed or reimbursed in accordance with the Law of the Russian Federation on Duties and Taxes.

4. Upon placement of foreign goods under the duty-free trade customs procedure, the disbursed domestic import duties and taxes levied thereto shall be redeemed provided such redemption is stipulated for de facto exportation of said goods from the customs territory of the Russian Federation in compliance this Customs Code.

Article 259. Terms of Placement of Goods under the Customs Procedure

1. Subject to the duty-free trade customs procedure may be any merchandise, except those goods whose importation to and exportation from the Russian Federation or whose circulation in the territory of the Russian Federation is prohibited, as well as the other goods listed in the register approved by the Government of the Russian Federation.

2. The goods, which are placed under the duty-free trade customs procedure, may only be declared by the owner of a duty-free shop. The owner of a duty-free shop may only be a Russian juridical person.

3. Placement of goods under the duty-free trade customs procedure will be permitted in the following instances:

(1) the goods are intended for retail sale in a duty-free shop which was set up in accordance with Article 261 of this Customs Code;

(2) payment of customs duties and taxes has been guaranteed as per Article 31 of this Customs Code.

4. The goods used for ensuring functioning of a duty-free shop shall not be subjected to the duty-free trade customs procedure.

Article 260. Customs Requirements to Facilities, Equipment a Duty-Free Shop

1. The rooms of a customs-duty shop may comprise a sales area, backrooms, and storerooms.

The sale area, the back- and storerooms ought to be equipped so as to ensure sale of goods exclusively in the sales area of a duty-free shop, as well as preservation of goods and possibilities of subjecting them to customs control measures.

2. The Federal Customs Authority has established special mandatory requirements to the facilities and equipment of the storerooms serving the needs of a duty-free shop if said storerooms are located outside the border-gate area of the State Border of the Russian Federation, as per provisions stipulated in Article 107 of this Customs Code.

3. The sales areas of duty-free shops ought to be situated so as to preclude any possibility of leaving purchased duty-free goods in the customs territory of the Russian Federation including the possibility of handing them over to natural persons staying in said territory.

4. All rooms comprising a duty-free shop constitute a customs control zone.

Article 261. Setting Up a Duty-Free shop

1. Duty-free shops are set up and inaugurated in accordance with the requirements of the customs procedures established at the border-gate areas of the State Border of the Russian Federation provided the duty-free shop owners have obtained all the requisite registrations and licences for effecting retail trade operations with duty-free goods whenever availability of said registrations and licences is predicated on respective statutes of the Russian Federation, the statutes of the constituencies of the Russian Federation, and/or the normative legal acts adopted by the local self-governance bodies concerned.

2. The owner of a duty-free shop shall be obliged to send a preliminary notification to the customs office concerned designating the date of inauguration of the duty-free shop. Release of goods in compliance with the terms and conditions of the duty-free trade customs procedure shall only be permissible following the receipt of said notification.

Article 262. Obligations and Responsibilities of a Duty-Free Shop Owner

1. The owner of a duty-free shop shall be obliged to:

(1) observe the terms and conditions stipulated by the duty-free trade customs procedure;

(2) observe the requirements laid to the equipment and facilities of a duty-free shop (Article 260);

(3) exclude any possibility of utilisation of goods supplied to a duty-free shop for any purpose other than their retail sales;

(4) keep record of the goods supplied to and sold by a duty-free shop, and submit to the customs authorities respective reports thereof (Article 364);

(5) preserve the goods placed under the duty-free trade customs procedure only in the store- and backrooms of the duty-free shop;

(6) pay the customs duties and taxes stipulated by Item 2 herein and Item 2 of Article 263 of this Customs Code, as well as in the instance stipulated by Item 1 of Article 90 of this Customs Code if the owner of the duty-free shop also holds a permit for the domestic customs transit procedure;

(7) observe the requirements established by law of the Russian Federation in the sphere of trade operations with consideration of the peculiarities stipulated by this Customs Code;

(8) notify the customs office concerned of the decision to close down a duty-free shop.

The owner of a duty-free shop shall be responsible for paying duties and taxes levied on the foreign goods placed under the duty-free trade customs procedure in case of their losses or utilisation for the purposes other than their retail sales in duty-free shops to the natural persons departing from the customs territory of the Russian Federation in compliance with the terms and conditions stipulated in this Chapter. The owner of a duty-free shop shall not be responsible for paying duties and taxes on the goods only in the instance of their destruction or irretrievable loss due to an accident or force majeure or their natural wear and diminution under normal storage and sales conditions.

Article 263. Operations with Goods in cases of Closing Down a Duty-Free Shop

1. In cases of closing down a duty-free shop, the foreign goods enjoying the status of the duty-free customs procedure shall be subject to another customs procedure within fifteen days from the day following the date of closing down of said shop.

2. In cases of closing down a duty-free shop, the redemptions of the domestic taxes, which were levied on the Russian goods at the instance of their placement under the duty-free trade customs procedure which still remained in the duty-free shop, shall be repaid pursuant to the Law of the Russian Federation on Duties and Taxes including the interest charged on said amounts based on the refinance rates of the Central Bank of the Russian Federation which were effective at the time of the goods’ storage in the duty-free shops in accordance with the order stipulated by this Customs Code for levying dutiable payments.

3. Beginning from the day following the date of closing down a customs-duty shop, the goods placed under the duty-free trade customs procedure shall be regarded for customs clearance purposes as the goods subjected to a temporary storage procedure. Sale of such goods or placement of other goods in the duty-free shop is prohibited.

4. The exigency of closing down a duty-free shop does not relieve its owner of the responsibility to observe the terms and conditions stipulated by this Customs Code.

§3. Relocation of Stores

Article 264. Content of the Customs Procedure

1. Relocation of stores constitutes a customs procedure under which the merchandise intended for consumption on board sea- and riverboats, aircraft or railway trains used for paid international haulage of passengers or for the paid or free if charge international industrial or commercial haulage of goods and commodities, as well as the goods intended for sale to crewmembers and passengers of such on board sea- and riverboats, aircraft or railway trains shall be conveyed across the customs border exempted from customs duties and taxes and free of any prohibitions and restrictions of economic nature stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

2. Upon exportation of merchandise under the customs procedure of relocation of stores, such goods shall be exempted from either payment or redemption of domestic taxes unless the Russian legislation on taxes and duties contains other provisions thereto.

Article 265. Placement of Goods under the Customs Procedure

1. The merchandise (hereinafter, stores) placed under the customs stores relocation procedure may be:

- required for ensuring normal operation, technical maintenance and servicing of sea- and/or riverboats, aircraft, and/or railway trains en route to their destinations or at their intermediate ports of call, air terminals, or train stations (including fuels and lubricants);

- intended for consumption by the passengers and crewmembers on board sea- and riverboats, aircraft and/or railway train whether such stores are intended for sale or not;

- intended for sale to passengers and crewmembers on board sea- and riverboats and aircraft rather than for consumption of such stores on board said vessels.

2. The stores are placed under the customs relocation procedure regardless of the country of registration or national identity of sea- and/or riverboats, aircraft, and/or railway train coaches.

3. The customs stores relocation procedure shall not apply to spare parts and equipment required for ensuring normal operation, technical maintenance and servicing of sea- and/or riverboats, aircraft, and/or railway trains en route to their destinations or at their intermediate ports of call, air terminals, or train stations (including fuels and lubricants).

4. The customs stores relocation procedure shall apply to the stores used on board sea- and riverboats for merchant marine purposes, on board civil aviation, state-owned or experimental aircraft, except the instances when said means of transport are used by natural persons for private purposes (Chapter 23).

Article 266. Terms of Exemption from Dutiable Payments

1. Upon importation to the customs territory of the Russian Federation, the stores on board sea- and/or riverboats and/or aircraft shall be exempted from customs duties and taxes provided the stores remain on board said vessels throughout their stay in the customs territory of the Russian Federation.

2. Upon importation to the customs territory of the Russian Federation, the stores on board railway trains required for normal operation, technical servicing and maintenance of train coaches, as well as the stores intended for consumption by the train passengers and train crews shall be exempted from customs duties and taxes provided said stores remain on board the train throughout their stay in the customs territory of the Russian Federation.

3. In case foreign goods, which are intended for sale to the passengers and crewmembers on board sea- and/or riverboats, aircraft, and/or railway trains without their consumption on board said vessels and/or trains, are placed under the customs procedure of stores relocation, such goods will be exempted from customs duties and taxes provided they are sold outside the customs territory of the Russian Federation with consideration of the provisions of Item 3 or Article 267 of this Customs Code.

4. At the instance of exportation from the customs territory of the Russian Federation, the stores on board sea- and/or riverboats and/or aircraft shall be exempted from customs duties and taxes if said stores are exported in the quantities corresponding to the number of passengers and crewmembers, the voyage or flight duration and sufficient for ensuring normal operation and technical maintenance of said vessels with consideration of the quantities of stores already available on board said vessels.

5. At the instance of exportation from the customs territory of the Russian Federation, the stores on board railway trains, which are required for ensuring normal operation and technical maintenance of said trains, as well as the stores intended for consumption by the passengers and crew aboard the train, shall be exempted from customs duties and taxes provided said stores are exported in the quantities required for ensuring normal operation and technical maintenance of said trains and for consumption by the train passengers and crew en route to the train destination with consideration of the quantities of stores already available on board said train.

6. Upon permission issued by the customs office concerned the stores may be temporarily unloaded and transferred to other vessels or trains performing international haulage of merchandise and passengers provided the terms and conditions stipulated by this Paragraph are observed.

Article 267. Utilisation of Stores

1. The stores intended for consumption by passengers and crewmembers on board sea- and/or riverboats, and the stores intended for ensuring normal operation and technical maintenance of said vessels may be consumed and/or utilised on board said vessels throughout their stay in the customs territory of the Russian Federation in the quantities corresponding to the number of passengers and crewmembers, duration of stops, including the stops required for repairs of sea- and/or riverboats in docks or dockyards provided their crewmembers remain on board said vessels.

2. At the instance of making planned landings in one or several airports situated in the customs territory of the Russian Federation, the stores intended for ensuring normal operation and/or technical maintenance on board the aircraft as well as the stores intended for consumption by passengers and crewmembers during the stay of said aircraft at the premises of the intermediate airports and in flight between such airports, may be consumed during such stays or in flight between the intermediate airports.

3. The stores, which are intended for sale to passengers and crewmembers on board aircraft without their consumption on board, may be sold throughout the stay of said aircraft in the customs territory of the Russian Federation provided such stores are sold on board aircraft.

4. The stores on board railway trains intended for consumption by the passengers and crew aboard the train as well as the stores required for ensuring normal operation and technical maintenance of said trains may be consumed and/or utilised on board said trains en route to the train destinations or during the train stops at intermediate stations, while in the customs territory of the Russian Federation, in the quantities corresponding to the number of train passengers and crew as well as with consideration of the duration of stops and travel.

5. The customs authorities have the right to oblige the carrier to take adequate measures for ensuring the observance of terms and conditions of utilisation and consumption of stores as per this Paragraph through the stay of sea- and/or riverboats, aircraft, and/or railway trains in the customs territory of the Russian Federation. Upon the resolution by the customs authorities, the rooms used for the keeping stores may be secured by customs seals and stamps affixed thereto.

§ 4. Other Special Customs Procedures

Article 268. Other Special Customs Procedures

Other special customs procedures may be applied to the following goods at the instance of their conveyance across the customs border:

(1) goods which are exported from the customs territory of the Russian Federation for the purpose of ensuring functioning of the embassies, consular offices, representative offices accredited to international organisations and other official representative offices of the Russian Federation abroad;

(2) goods which are conveyed across the customs border between military units of the Russian Federation located both in the customs territory of the Russian Federation and beyond;

(3) goods which are conveyed across the customs border for the purpose of preventing and liquidating the consequences of natural calamities and other extraordinary situations, including goods intended for free distribution among the persons who have suffered from natural disasters, goods required for performing emergency rescue operations and other exigent tasks, as well as goods supplied to support the functioning of emergency rescue teams;

(4) goods which are exported to the former Soviet Union republics for the purpose of ensuring functioning of medical institutions, sports and health resorts, and other social sphere institutions whose property remains in the ownership of the Russian Federation or its constituencies, as well as for enabling Russian organisations to pursue non-commercial scientific investigation activities on said territories in the interests of the Russian Federation;

(5) Russian goods which are conveyed between customs border gates across the territory of a foreign country.

Article 269. Content of Special Customs Procedures and Terms of Placement of Goods under Special Customs Procedures

1. The special customs procedures stipulate complete exemption of goods under said procedures from customs duties and taxes, and non-application to them of the economic restrictions and prohibitions pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

2. Placement of goods under the special customs procedures does not involve either reimbursement of the paid customs duties and taxes or redemption and indemnity of the domestic taxes, except the instances when the selected special customs procedure is substituted by the customs export procedure.

3. The other terms and conditions regulating the placement of goods under the special customs procedures, as well as imposition of various restrictions on the use and disposal of the goods placed under said customs procedures are approved by the Government of the Russian Federation.

Section 3. SPECIAL CUSTOMS PROCEDURES

Chapter 22. CONVEYANCE OF MEANS OF TRANSPORT

Article 270. Customs Procedures Applicable to Means of transport

Means of transport are conveyed across the customs border in accordance with the customs procedures of temporary importation or temporary exportation in the order as specified by this Chapter.

Article 271. Temporary Importation of Means of transport

1. Temporary importation of means of transport to the customs territory of the Russian Federation with complete exemption from customs duties and taxes shall be permissible provided:

(1) said means of transport is registered by a foreign person and (on) the territory of a foreign country;

(2) said means of transport is imported to the customs territory of the Russian Federation and used by a foreign person, except the situations when said means of transport is used by the Russian person who has been duly authorised by a foreign person in that regard;

(3) said means of transport are not used in the customs territory of the Russian Federation for domestic haulage;

(4) following its importation, said means of transport is not rented (or sub-rented if said means of transport has already been imported as a rented vehicle), except for the cases when a (sub-)rental contract is concluded with a view to completing a goods haulage operation by immediate exportation of the means of transport.

2. The Government of the Russian Federation has the right to prescribe regulations for the cases of temporary importation of means of transport to the customs territory of the Russian Federation with complete exemption from customs duties and taxes if the temporarily imported means of transport is used or registered by a Russian person and the other terms and conditions stipulated by Sub-Item 1) through 4) of Item 1 herein are not observed provided the property rights to said means of transport are not transferred to a Russian person throughout the entire period of its temporary importation.

3. In the instances when complete exemption from customs duties and taxes is not applied as per Items 1 and 2 herein and the terms and conditions stipulating the application of complete exemption from customs duties and taxes are not observed, such a means of transport shall be subject to a partial exemption from customs duties and taxes in accordance with the procedures stipulated by this Customs Code with regard to temporarily imported goods (Article 212).

4. The customs procedure of temporary importation with regard to means of transport is completed at the instance of their re-exportation within the time terms stipulated by Article 272 of this Customs Code. Upon permission of the customs authorities, the customs procedure of temporary importation with regard to temporarily imported means of transport may also be completed pursuant to the requirements stipulated by Article 214 of this Customs Code regulating the completion of the customs procedure of goods temporary importation.

Article 272. Time Terms for Temporary Importation of Means of transport

1. Re-exportation of imported means of transport ought to be effected immediately following the completion of a goods haulage operation for which it has been temporarily imported.

2. In excusive situations for customs clearance purposes the customs authorities have the right to prescribe the time limits to the temporary importation of a means of transport proceeding from the carrier’s request and with consideration all the circumstances associated with intended haulage operation.

Upon a motivated request of an interested party, the customs authorities may extend the initially prescribed term of temporary importation.

Article 273. Operations with Temporarily Imported Means of transport

The temporarily imported means of transport may be subjected to regular servicing and repairs operations that may be required in the course of its travel to the customs territory of the Russian Federation or its operation on said territory.

Article 274. Temporary Exportation of Means of transport

1. Temporary exportation of a means of transport is permissible provided said means of transport enjoys the status of free circulation in the customs territory of the Russian Federation and it is registered by a Russian person, except the case stipulated by Item 3 herein.

2. The means of transport subject to temporary exportation shall be exempted from customs duties and taxes.

3. The temporary exportation of a means of transport, which was previously temporarily imported to the customs territory of the Russian Federation with partial exemption from customs duties and taxes will be permissible provided said temporary exportation is effected by Russian person who has no property rights with regard to said means of transport regardless of the fact whether it is registered by the Russian person or not.

Note: the customs procedure of temporary importation is applied to such means of transport with regard to payment of customs duties and taxes prior to the expiry of the term of this procedure pursuant to the regulations stipulated by Article 214 of this Customs Code.

4. Temporary exportation of means of transport is permissible regardless of the person exporting it or its intended use outside the customs territory of the Russian Federation.

Article 275. Time Terms of Temporary Exportation

The time terms of temporary exportation of means of transport are unlimited.

Article 276. Re-Importation of Temporarily Exported Means of transport

1. In the instance of re-importation of the temporarily exported means of transport to the customs territory of the Russian Federation, it shall be exempted from customs duties and taxes unless said means of transport was subjected to processing operations outside the customs territory of the Russian Federation, except:

- repairs, technical servicing, maintenance, or other operations which were required for preserving its safety and serviceability, as well as maintaining it in the same state as it was on the day of its placement under the customs procedure of temporary importation;

- the repair operation effected gratis owing to law or a contract;

- the repair operations, including overhaul, which are effected for the purpose of restoring said means of transport after it has been damaged due to an accident or force majeure outside the customs territory of the Russian Federation.

2. In case the means of transport which has been subjected to repairs and/or other operations outside the customs territory of the Russian Federation is not exempted from customs duties and taxes as per Item 1 herein, that means of transport shall be partially exempted from customs duties and taxes as per provisions of Article 204 of this Customs Code which are applicable to the customs duties and taxes levied on the compensating products pursuant to the customs outward processing procedure.

In determining the cost of a processing operation, the expenses incurred by the relocation of said means of transport to the processing site and back shall not be taken into consideration if said relocation constitutes international haulage of freight or passengers.

Article 277. Change to Customs Procedure of Temporary Exportation

1. The customs procedure temporary exportation applicable to the temporarily exported means of transport may be substituted by the customs export procedure or another customs procedure provided all terms and conditions stipulated by this Customs Code are observed.

2. In case the property rights to the temporarily imported means of transport have been transferred to a foreign person, the person, who placed said means of transport under the customs procedure of temporary exportation, shall be obliged to change the customs procedure of temporary exportation for the customs export procedure.

3. A change of the customs procedure of temporary exportation may be effected without actual presentation of the means of transport concerned to customs authorities for inspection.

Article 278. Temporary Importation and Temporary Exportation of Equipment and Spare Parts

1. The temporarily imported special-purpose equipment intended for loading, unloading, tackling, and preservation of cargoes, which is conveyed to the customs territory of the Russian Federation together with the means of transport, irrespective of whether or not said equipment might be used independently from the means of transport, shall enjoy complete conditional exemption from customs duties and taxes.

2. The temporarily imported spare parts and equipment intended for repairs, technical servicing, or operation of the means of transport, shall enjoy complete conditional exemption from customs duties and taxes.

3. The temporarily imported spare parts intended as replacements for the built-in parts and equipment installed in the temporarily exported means of transport in the process of repairs or technical servicing, shall enjoy complete conditional exemption from customs duties and taxes at the instance of their temporary exportation from the customs territory of the Russian Federation.

Importation to the customs territory of the Russian Federation of the replaced spare parts and equipment may be permitted with complete conditional exemption from customs duties and taxes applicable to the customs re-import procedure.

Article 279. Customs Registration of Means of transport, Spare Parts and Equipment

1. The customs registration of means of transport, spare and equipment thereto may be simplified at the point of their entry to or departure from the customs territory of the Russian Federation.

The customs registration of means of transport is performed at the places of location of customs offices during their working hours.

2. In the process of customs registration of means of transport customs authorities will accept as a customs declaration the carrier’s standard documents stipulated by the international treaties to which the Russian Federation is party in the sphere of transportation provided they contain requisite information on the means of transport, its route, freight, stores, crew, and passengers, the information explicating the purpose of importation (exportation) of a means of transport and/or the names (descriptions) of the spare parts and equipment which are conveyed across the customs border for the purpose of repairs or operation of the means of transport.

In case the standard documentation submitted by the carrier do not contain all the required information, the lacking information shall be furnished to the customs office by way of submission, respectively, of the exit or the entry declaration based on the form approved by the Federal Customs Authority.

Note: the standard documentation submitted by the carrier shall be regarded as an inseparable part, respectively, of the exit or the entry declaration.

The customs authorities have no right to demand from the carrier any other information.

The carrier shall be obliged to submit to the customs authorities the exit or the entry declaration, respectively, at the instance when the means of transport is departing from or arriving at the customs territory of the Russian Federation.

3. Placement of means of transport under the customs procedure of temporary importation or temporary exportation in the instances stipulated by Item 1 of Article 271, Article 274 and Item 1 of Article 276 of this Customs Code is effected upon submission by the carrier, respectively, of the exit or the entry declaration.

In other situations, means of transport are declared in accordance with the regulations stipulated by this Customs Code for declaring goods and commodities (Article 14).

In case spare parts and equipment are conveyed across the customs border together with a means of transport as per Article 278 of this Customs Code, information pertaining to them may be declared in the exit or the entry declaration submitted with regard to this means of transport.

4. In case the requirements applied to the documents submitted to the customs authorities at the instanced of entry or exit of means of transport are stipulated by international treaties in the sphere of transportation to which the Russian Federation is party, used for customs clearance purpose shall be the documents stipulated by said treaties of the Russian Federation/

5. In case a means of transport has not been declared for any customs procedure as merchandise, for customs clearance purposes beginning from the moment of the customs registration of said means of transport it will be regarded as placed under the customs procedure, respectively, of temporary exportation of temporary importation which status stipulates the obligation of all persons involved to abide by the provisions of said customs procedures.

6. Customs registration of replaced spare parts and equipment imported to the customs territory of the Russian Federation shall be effected in accordance with the regulations applied to the goods imported in accordance with the customs re-export procedure.

7. The pare parts and equipment, which have been utilised and not re-exported, shall be released for free circulation or placed under another customs procedure provided all the terms and conditions stipulated by this Customs Code are observed.

Article 280. Conveyance across the Border of Seagoing Vessels (Riverboats) and Aircraft Which Are Not Used for International Haulage of Goods and/or Passengers

1. The seagoing vessels (riverboats), which are temporarily exported from customs territory of the Russian Federation with a view to using them for trawling aquatic biological resources, conducting survey and development of mineral and other fossil resources in the seabed and sea subsoil, performing pilot and icebreaking navigation, search, rescue and towing operations, lifting sunk property, carrying out hydro-technical, subsurface technical and other similar operations, effecting sanitary, quarantine and other control, protection and preservation of marine environment, conducting marine science investigation, training, sports and cultural activities as well as for other purposes related to merchant marine navigation, shall be conveyed across the customs border for their temporary exportation or re-importation in accordance with the regulations stipulated by this Chapter, with the exception of the means of transport conveyed across the customs border by natural persons for personal, family-related, household and other needs which are not associated with the person’s entrepreneurial activities.

2. The civilian, state-owned, and experimental aircraft, which are not used for international haulage of goods and/or passengers, shall be conveyed across the customs border for their temporary exportation or re-importation in accordance with the regulations stipulated by this Chapter.

Chapter 23.
CONVEYANCE OF GOODS BY NATURAL PERSONS

Article 281. Conveyance of Goods across the Customs Border by Natural Persons for Personal, Family-Related, Household and Other Needs Not Associated with Person’s Entrepreneurial Activities

1. The goods declared for personal, family-related, household and other needs which are not associated with entrepreneurial activities of natural persons (hereinafter, for personal use), shall be conveyed across the customs border by said persons pursuant to the provisions stipulated by this Chapter or pursuant to the general procedures specified by this Customs Code whenever the regulations of this Chapter do not apply.

2. The purpose of goods shall be determined by the customs authorities proceeding from the declaration made by the natural person concerned with regard to the goods conveyed across the customs border, the goods’ nature, quantity, as well as frequency of their conveyance across the border.

3. Conveyance across the customs border by natural persons of the goods declared for their personal use predicates the goods complete exemption from customs duties and taxes, application to them of general rates of customs duties and taxes, charging of dutiable payments in the form of a combined payment, as well as the goods’ exemption from the restrictions and prohibitions of economic nature stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities, mandatory confirmations of the goods conformity, and application of the simplified customs registration procedure.

Article 282. Importation and Exportation of Goods and Means of transport for Personal Use and Application of Customs Duties and Taxes to Such Goods and Means of transport

1. Imported goods shall be exempted from customs duties and taxes partially or completely provided the overall value of the goods imported to the customs territory of the Russian Federation, except means of transport, amounts to not more than 65,000.00 roubles.

The values of means of transport and/or goods above 65,000.00 roubles but not exceeding 650,000.00 roubles shall be charged general rates of customs duties and taxes. The order of application of said general rates of customs duties and taxes is determined by the Government of the Russian Federation based on the average established rates of customs duties and taxes levied on the goods and means of transport whose categories are conveyed across the customs border in greatest quantities.

Complete exemption from customs duties and taxes or levying of the general rates of customs duties and taxes shall be applied in the quantitative limits established by the Government of the Russian Federation.

2. The Government of the Russian Federation has the right to impose quantity and cost restrictions on the goods imported by natural persons with complete exemption from customs duties and taxes or with application of the general rates of customs duties and taxes with regard to the goods liable for excise taxes and the goods subject to quantitative restrictions on their importation to the Russian Federation pursuant to the Federal Law on Measures for Protecting Economic Interests of the Russian Federation in Foreign Trade Operations with Goods and Commodities.

3. The Government of the Russian Federation has the right to determine those instances when complete exemption from customs duties and taxes is not granted, or is applied with limitations to the goods conveyed to the customs territory of the Russian Federation by underage natural persons, as well as the natural persons who frequently cross the customs border.

4. The Government of the Russian Federation has the right to determine those instances when complete exemption from customs duties and taxes or the general rates of customs duties and taxes are applied in the amounts exceeding the limits stipulated by Item 1 herein with regard to the goods conveyed across the border by natural persons at the instance of their resettlement to a new place of permanent residence, the goods moved by refugees or forced migrants, as well as with regard to inherited property.

5. Goods of cultural value imported to the customs territory of the Russian Federation shall be completely exempt from customs duties and taxes at the instance of their written declaration, as well as their special registration stipulated by the Law of the Russian Federation on Importation and Exportation of Cultural Values.

6. Goods imported to or exported from the customs territory of the Russian Federation in accordance with this Article shall be regarded for customs clearance purposes, respectively, as goods released for free circulation or goods exported pursuant to the customs export procedure.

7. Goods exported by natural persons will be exempted from dutiable payments or the domestic taxes levied thereon redeemed in accordance with the regulations set forth in the Russian legislation on taxes and duties.

8. The provisions of this Article shall not apply to goods temporarily imported (exported) or re-exported (re-imported) by natural persons.

Note: for the purpose of application of this Article of the Customs Code, a means of transport shall be defined as motor vehicles and trailers, seagoing vessels (riverboats) or aircraft complete with spare parts, tools and appliances thereto imported and exported by natural persons for their personal use.

Article 283. Temporary Importation of Goods by Natural Persons

1. Goods temporarily imported to the customs territory of the Russian Federation by foreign natural persons shall be completely exempted from customs duties and taxes provided these goods are imported exclusively for personal use by said persons throughout the period of their temporary stay in the customs territory of the Russian Federation.

2. The exemption from customs duties and taxes stipulated by Item 1 herein applies to means of transport owned, rented, or otherwise hired for personal use by foreign natural persons, which are imported to the customs territory of the Russian Federation concurrently, prior to, or after the entry of said foreign person to the customs territory of the Russian Federation.

The means of transport conveyed across the customs border by natural persons for the purpose of paid haulage of person or for commercial or industrial haulage of cargoes shall be conveyed across the customs border based on the rules stipulated by Article 22 of this Customs Code.

3. In case temporarily imported goods are subject to a written declaration as per Item 2 of Article 286 of this Customs Code, the time limits of their temporary importation shall be prescribed by the customs authorities proceeding from the declaration made by said foreign natural persons with consideration of his (or her) intended duration of stay in the Russian Federation within the time limits established by the Government of the Russian Federation as per Item 4 herein.

Upon a motivated request by a foreign natural person, the time term of goods temporary importation prescribed by the customs authorities may be extended within the time limits established by the Government of the Russian Federation as per Item 4 herein

4. The Government of the Russian Federation has the right to prescribe the time limits for temporary importation of specific categories of goods including the means of transport, which are temporarily imported to the customs territory of the Russian Federation by foreign natural persons.

5. Temporarily imported goods may be re-exported from the customs territory of the Russian Federation through any customs border gate. At the instance of their re-exportation, temporarily imported goods shall be exempt from customs duties and taxes or free from any restrictions of economic nature stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

6. Re-exportation of temporarily imported goods, including means of transport, may be unnecessary is said goods, including means of transport, have been seriously damaged as a result of an accident or force majeure.

7. Russian natural persons have the right to temporarily import means of transport provided said means of transport are registered in the territory of a foreign country and their aggregate terms of temporary importation do not exceed six months within a single a single calendar year with regard to each imported means of transport.

Article 284. Temporary Exportation of Goods by Natural Persons

1. Russian natural persons have the right to temporarily export from the customs territory of the Russian Federation goods intended for their personal use throughout the period of their temporary stay in the territory of a foreign country and re-import said goods with their complete exemption from dutiable payments.

2. Upon a request made by a natural person, the customs authorities may perform identification (Article 390) of temporary exported goods provided said identification will contribute to the goods re-importation with a complete exemption from customs duties and taxes. Such identification is stated in the customs declaration of which one copy is returned to the natural person who is exporting said goods. Absence of the goods identification does not preclude their re-importation by natural persons with a complete exemption from customs duties and taxes.

Article 285. Customs Registration of Goods Conveyed across the Customs Border by Natural Persons for Personal Use

1. Customs registration of the goods conveyed across the border by a natural person for personal use shall be regulated by the order determined by the Government of the Russian Federation in conformity with this Customs Code.

2. Natural persons crossing the customs border in their owned motor vehicles, as well as inside commercial motor vehicles or on board a train, as a rule, may complete all requisite customs formalities without leaving said vehicles.

3. The goods, including means of transport conveyed across the border by natural persons, shall be subject to placement in a temporary-storage warehouse in the following instances:

(1) upon request by said persons;

(2) when instant completion of the goods customs registration formalities and/or payment of customs duties and taxes thereon becomes impossible due to reasons beyond the customs authorities’ control.

4. Temporary storage of goods is effected in accordance with the procedure specified by Chapter 12 of this Customs Code at the expense of the person whose goods have been placed in a temporary-storage warehouse.

5. With a view to simplifying the customs registration formalities with the goods conveyed by natural persons using motor vehicles or by railway, the Federal Customs Authority shall conclude agreements with the customs authorities of the bordering countries with regard to effecting joint customs registration formalities and customs control of said goods.

Article 286. Declaration of Goods by Natural Persons

1. Declaration of goods conveyed across the border by natural persons as their hand luggage or attended baggage shall be performed at the instance of their crossing the border gate at the State Border of the Russian Federation.

2. Liable for declaration shall be goods, including means of transport:

(1) which are conveyed by natural persons as unattended baggage;

(2) which are dispatched to the address of natural persons for their personal use, except the goods dispatched by international mail;

(3) whose importation is restricted pursuant to Russian law or whose value and/ quantity exceed the limits established for conveyance across the customs territory of the Russian Federation of the goods enjoying complete exemption from customs duties and taxes as per Article 282;

(4) whose exportation is restricted pursuant to Russian law;

(5) whose mandatory written declaration at the instance of exportation is stipulated by Russian law;

(6) means of transport.

3. In the instances which are not specified in Item 2 herein, the goods are declared orally.

A natural person, upon his (or her) wish, has the right to declare in writing the goods conveyed across the customs border, which are not liable for mandatory written declaration.

4. In the cases and according to the procedures prescribed by the Federal Customs Authority, goods liable for oral declaration shall be declared by performing actions proving that neither the person’s hand luggage nor the attended baggage contains any goods liable for written declaration (declaration in contracting bargain form). For this purpose the customs border is equipped with the corridors for natural persons specially designated so that a person may make a conscious choose of the form of declaration of his (or her) goods. Passage of a natural person through the gate specially designated for the persons who have no goods in his (or her) hand luggage or attended baggage liable for written declaration shall be regarded as a declaration to the customs authorities of the fact that said natural person carries no goods liable for written declaration.

5. The goods in possession of underage persons below sixteen years old shall be declared by the person’s accompanying parent, stepparent, guardian, or trustee, or by a group leader in the instance of an organised exit (entry) or return entry (exit) of a group of underage persons unaccompanied by parents, stepparents, guardians, or trustees.

6. A written customs declarations pertaining to the goods conveyed across the customs border in unattended baggage should be submitted to the customs authorities within the time limits specified in Article 129 of this Customs Code in case of their importation to the customs territory of the Russian Federation, or concurrently with presentation of goods for inspection to the customs authorities in case of their exportation.

The goods conveyed across the customs border in unattended baggage may be declared by the person who is conveying said goods, or by another person acting upon the power of attorney of the person conveying said goods across the customs border.

The goods contained in the unattended baggage of an underage person below sixteen years old should be declared by his (or her) parent, stepparent, guardian, or trustee, or by a person acting upon a power of attorney of said persons.

Article 287. Dutiable Payments by Natural Persons

1. Dutiable payments shall be made by natural persons at the instance of filling out their written customs declarations with regard to their goods based on the customs receipt whose form is approved by the Federal Customs Authority. One copy of the receipt is handed to the person responsible for customs payments.

2. The customs duties and taxes levied on the goods conveyed across the border for personal use shall be made by natural persons in the form of a combined customs payment (payment to be made as a lump amount without dividing it into specific customs duties and taxes) or in the form of a customs payment based on the general rates of customs duties and taxes (Article 282).

Article 288. Customs Value of Goods Conveyed by Natural Persons

1. The goods customs value is declared a natural person conveying said goods at the instance of their declaration. The goods declared value may be confirmed by receipts, invoices, and other confirming purchase of the declared goods and their value.

2. At the instance of importation of goods to the customs territory of the Russian Federation by a natural person, the goods customs value does not include the expenses incurred for haulage of said goods to the air or sea terminal or any other place of the goods entry to the customs territory of the Russian Federation.

3. In the absence of documents and information confirming the correctness of the goods customs value declared by a natural person, customs authorities have the right to determine the goods customs value based on the data contained in relevant catalogues published by foreign trade organisations, or using other price reference information available at the customs office concerned.

In using said price reference information, customs authorities adjust the goods customs value depending on the goods quality, their market reputation, their country of origin, the date of their manufacture, and other factors affecting their value.

Article 289. Spare Parts and Fuel for Means of Transport Conveyed by Natural Persons

1. The spare parts required for repairing a means of transport, which was temporarily imported to the customs territory of the Russian Federation by a natural person, may be conveyed across the customs border subject to the temporarily importation procedure with complete exemption from the customs duties and taxes for a period not exceeding the prescribed time limits of temporary importation of said means of transport.

2. The fuel, which is contained in the tank(s) arranged in accordance with the design of the means of transport conveyed across the border by a natural person, may be imported to, or exported from the customs territory of the Russian Federation exempt from customs duties and taxes.

Article 290. Information Regulating Conveyance across Customs Border of Goods by Natural Persons

The Federal Customs Authority and other customs offices shall ensure availability of information regulating the conveyance of goods by natural persons, including circulation of information bulletins in Russian and other languages through transportation and tourist organisations, as well as by installing information boards at the places of customs registration of the goods conveyed by natural persons.

Chapter 24.
CONVEYANCE OF GOODS BY INTERNATIONAL MAIL

Article 291. International Mail

1. For the purpose of application of the provisions of this Chapter, international mail shall be defined as any postal items accepted for dispatch from the customs territory of the Russian Federation, arriving in customs territory of the Russian Federation, or transiting in said territory. International mail comprises the following categories:

(1) letters (ordinary, registered, registered with statement of value);

(2) postcards (ordinary, registered);

(3) parcels and special “M” bags (ordinary, registered);

(4) cecograms (ordinary, registered);

(5) small bags (registered);

(6) packages (ordinary, with statement of value);

(7) international express-mail items.

2. International mail shall not be released to recipients by postal service organisations or dispatched to the addressees located outside the customs territory of the Russian Federation without authorisation by the customs authorities.

Article 292. Prohibitions and Restrictions on the Importation to and Exportation from the Customs Territory of the Russian Federation of Goods by International Mail

1. Prohibited for dispatch by international mail shall be the following goods:

(1) the goods prohibited for importation to and exportation from the customs territory of the Russian Federation;

(2) the goods whose dispatch by mail is prohibited by the regulations of the Universal Postal Union;

(3) other goods subject to restrictions imposed pursuant to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities whose register may be determined by the Government of the Russian Federation.

2. With regards to the goods whose importation to or exportation from the customs territory of the Russian Federation is restricted by Russian law or international treaties, to which Russia is party, the senders or recipients thereof or the persons acting on their behalf shall be obliged to submit to the customs authorities all the requisite permits, licenses, certificates, and other documents confirming their observance of the above-mentioned restrictions.

3. The goods dispatched by international mail shall not be liable for any restrictions of economic nature stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities in the following instances:

- if the goods’ customs value does not exceed the limits stipulated by Sub-Item 2) of Item 2 in Article 319 of this Customs Code;

- if the goods are dispatched to natural persons and are intended for personal use;

- in the other instances determined by the Government of the Russian Federation.

4. Withdrawal of the goods prohibited and/or restricted for posting by international mail as well as disposal thereof is effected by the customs authorities in pursuant to this Customs Code or in the order prescribed by the Government of the Russian Federation wherever the provisions of this Customs Code do not apply.

Article 293. Customs Registration of Goods Posted by International Mail

1. The customs registration of goods posted by international mail accompanied with the documents stipulated by the Universal Postal Union (UPU) shall be conducted in accordance with this Customs Code and with consideration of the peculiarities stipulated by this Chapter.

2. The customs registration of goods dispatched by international mail shall be conducted as a priority procedure within the shortest possible time, which should not exceed three days. The specific time limits of customs registration formalities are determined by the Federal Customs Authority in coordination with the Federal Postal Authority.

3. Customs registration of the goods dispatched by international mail shall be carried out at international postal exchange offices, except the case stipulated by Item 6 herein. The register of post offices authorised to operate as international postal exchange offices is determined and approved by the Federal Customs Authority in coordination with the Federal Postal Authority.

4. In the instance when all the details, which the customs authorities may require for customs clearance purposes, are contained in the documents stipulated the statutes and regulations of the Universal Postal Union accompanying international mail items, no separate customs declaration will be required, except in the instances stipulated by Item 5 herein.

5. A separate customs declaration pertaining to posted goods shall be required in the following instances:

[1] the customs value of the goods imported to the customs territory of the Russian Federation exceeds the limits prescribed for the conveyance of goods by international mail exempt from customs duties and taxes, as per Item 1 of Article 295 in this Customs Code, except the cases when such goods are addressed to natural persons and are intended for personal, family, household and other use which is not associated with any entrepreneurial activities;

[2] the goods sender ought to confirm their exportation from the customs territory of the Russian Federation to customs and/or tax authorities;

[3] the goods imported to the customs territory of the Russian Federation are intended for placement under a customs procedure which does not stipulate their release for free circulation.

6. The customs registration formalities pertaining to the goods, whose posting needs to be formalised in a separate customs declaration, as per Item 5 herein, may be effected by the customs office whose sphere of activities covers the goods’ senders or recipients in compliance with the procedures prescribed by the Federal Customs Authority in coordination with the Federal Postal Authority.

7. The customs registration of goods exported from the customs territory of the Russian Federation by international mail, whose dispatch needs to be formalised by a separate customs declaration, as per Item 5 herein, shall be fulfilled by their senders or the persons acting on their behalf prior to the submission of said goods to a postal offices for their dispatch.

Article 294. Customs Inspection and Customs Control of International Mail

1. Upon a request by the customs authorities, postal offices will submit international mail for the purpose of customs inspection and customs control. The methods of such submission are determined by customs authorities.

2. The customs authorities shall not request presentations for inspection of the following international mail items:

- postcards and letters;

- cecograms [literature for blind people].

The customs authorities have the right to demand that postal offices present specific international mail items for inspection and customs control when they have sufficient reasons to suppose that that said mail items contain the goods prohibited or limited for importation to the customs territory of the Russian Federation, as well as in the instances when customs control and customs inspections are conducted on a random or selective basis.

3. The customs authorities have the right to demand that postal offices present to them the exportable international mail items which they deem to subject to customs control or customs inspections on a random or selective basis.

4. In performing customs inspections or customs control, the customs authorities shall make maximum use of the customs control technical facilities.

Article 295. Customs Duties and Taxes Levied on Goods Mailed by international mail

1. The goods dispatched from the customs territory of the Russian Federation by international mail shall be exempted from customs duties and taxes provided the value of such goods addressed within one week to the same recipient does not exceed 10,000.00 roubles.

2. The goods intended for personal use dispatched by international mail to natural persons shall be exempted from customs duties and taxes completely or partially. The Government of the Russian Federation pursuant to Article 282 of this Customs Code establishes general rates of customs duties and taxes applicable to the goods whose value exceeds the cost of the goods dispatched exempt from customs duties and taxes with regard to said excess.

3. The customs duties and taxes with regard to the goods, whose dispatch my international mail does not require submission of a separate customs declaration, shall be calculated and charged by the customs office responsible for the customs registration formalities at international exchange offices with the issuance of a customs receipt (Item 1 of Article 287). The calculation of dutiable payments is based on the information pertaining to the goods’ value, as stated in the documents stipulated by the statutes of the Universal Postal Union, which are applied for customs clearance purposes. The amounts of customs duties and taxes to be levied on international mail items with declared value shall be calculated proceeding from the goods declared value only when it exceeds the goods’ value specified in the reference documents used for customs clearance purposes.

4. International mail items containing the goods, which have been levied dutiable payments by the customs authorities, shall be released to their recipient at international postal exchange office only after the post office concerned has received full amount full amount of dutiable payments due for said goods. Said dutiable payments are levied based on a postal cash transfer form filled in by a customs officer in charge. The paid amounts are subsequently credited to the bank account of the customs office that has levied them after said international postal item has been released to the recipient. The postal fee for the cash transfer is covered by the person making such dutiable payments and it may not exceed 1 percent of the paid amount. The postal cash transfer forms are supplied to customs offices free of charge.

5. In the event of loss of an international mail item or its release to the recipient without authorisation by the customs authorities, responsible for the dutiable payments shall be the postal office which has lost or released said mail item.

6. Calculation of the customs fees and duties and their disbursement for the goods specified in Item 5 of Article 293 of this Customs Code shall be regulated by the procedures set forth in Part III of this Customs Code.

Article 296. Domestic Customs Transit of International Mail

The domestic customs transit procedure (Chapter 10) shall be applied to international mail pursuant to the regulations specified by the Federal Customs Authority in coordination with Federal Postal Authority based on the requirements and restrictions prescribed by this Customs Code.

Article 297. Transit of International Mail

International mail transiting in the territory of the Russian Federation shall not be subject to customs registration.

Chapter 25.
CONVEYANCE OF GOODS
BY SPECIFIC CATEGORIES OF FOREIGN PERSONS

Article 298. Sphere of Application of This Chapter

1. The provisions of this Chapter shall be applicable to the goods conveyed across the customs border by diplomatic, consular, and other official representative offices of foreign countries, international organisations, the staff of such representative offices and organisations, as well as to the goods intended for personal or family use by specific categories of foreign citizens enjoying advantages, privileges and/or immunity in the customs territory of the Russian Federation pursuant to the international treaties to which the Russian Federation is party.

2. Customs registration of the goods specified in Item 1 herein shall be conducted in a simplified manner.

Article 299. Conveyance of Goods by the Diplomatic Representative Offices of Foreign Countries

Foreign diplomatic representative offices of foreign countries located in the territory of the Russian Federation may import to and export from the customs territory of the Russian Federation the goods intended for official use in said offices. Such goods will be exempted from customs duties and taxes and not liable for the economic restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 300. Conveyance of Goods by the Head of a Foreign Diplomatic Representative Office and Members of Diplomatic Staff of a Representative Office of Foreign Country

1. The Head of a diplomatic representative office of a foreign country, members of the diplomatic staff of said representative office, and their family members residing with them may import to the customs territory of the Russian Federation the goods intended for their personal and family use, including the goods intended for their setting up, and export from the customs territory of the Russian Federation the goods intended for their personal and family use with complete exemption of said goods from customs duties and taxes and non-application to them of any economic restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

2. Personal luggage belonging to the head of the diplomatic representative office of a foreign country, members of diplomatic staff of said representative office, and their family members residing with them shall be relieved of customs inspections unless the customs authorities have serious reasons to presume that their luggage contains goods which are not intended for personal and family use or goods whose importation to or exportation from the Russian Federation is prohibited by law of the Russian Federation, the international treaties, to which the Russian Federation is party, or is regulated by quarantine rules. Such customs inspections should only be conducted in the presence of the persons specified in this Article or their duly authorised representatives.

Article 301. Conveyance of Goods by Members of Administrative and Technical Staff of Diplomatic Representative Office of Foreign Country

Members of the administrative and technical staff of a diplomatic representative office of a foreign country, and their family members residing with them, provided said persons and their family members are neither permanent residents nor citizens of the Russian Federation, may import to the customs territory of the Russian Federation the goods intended for their setting up with their complete exemption from customs duties and taxes and non-application to said goods of economic restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 302. Application of Customs Privileges Accorded to Members of Diplomatic Staff of Representative Offices of Foreign Countries to Administrative, Technical and Service Staff of Said Representative Offices

Based on special agreements with foreign countries, the customs privileges accorded to members of diplomatic staff of representative offices of foreign countries in accordance with this Customs Code may also be accorded to administrative and technical staff of said representative offices and members of their families, who are neither permanent residents nor citizens of the Russian Federation, proceeding from the principle of reciprocity with regard to each specific foreign country.

Article 303. Conveyance of Goods by Consular Offices of Foreign Countries by their Staff Members

1. The consular offices of foreign countries, the consular officials of foreign countries including the head of the consular office of a foreign country, the consular staff of foreign countries, and members of their families are accorded the customs privileges stipulated by this Customs Code for the diplomatic representative offices of foreign countries or respective staff of diplomatic representative offices of foreign countries.

2. Based on special agreements with foreign countries, members of the administrative and technical staff of consular offices of foreign countries and members of its families, who are not permanent residents in the Russian Federation, may be accorded the same customs privileges as those granted, in accordance with this Customs Code, to respective diplomatic staff of representative offices of foreign countries, proceeding from the principle of reciprocity with regard to each specific foreign country.

Article 304. Conveyance of Diplomatic Mail and Consular Valise of Foreign Countries across the Customs Border

1. The diplomatic mail and consular valise of foreign countries conveyed across the customs border shall not be subject to either opening or detention. In case the customs authorities have serious reasons to presume that the consular valise is contains the documents and/or goods other than those specified in Item 3 herein, they have the right to demand that the consular valise be opened by the authorised officials of the represented foreign country in the presence of a customs officer. In case of denial, the consular valise should be returned to the place of its departure.

2. All the items comprising diplomatic mail or consular valise ought to have clearly visible external markings indicative of the nature of said items.

3. The diplomatic mail may only contain diplomatic documents and the goods intended for official use; the consular valise may only contain official correspondence and documents or goods intended exclusively for official use.

Article 305. Customs Privileges for Foreign Diplomatic and Consular Couriers

Foreign diplomatic and consular couriers may import to and export from the customs territory of the Russian Federation the goods intended for their personal use which, proceeding from the principle of reciprocity with regard to each specific foreign country, will be free from customs inspections, exempted from customs duties and taxes, and without application to said goods of economic restrictions and prohibitions stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities.

Article 306. Customs Privileges Accorded to Representatives and Members of Delegations of Foreign Countries

Official representatives of foreign countries, members of parliamentary and governmental organisations, as well as, pursuant to the principle of reciprocity, members of foreign country delegations arriving in the Russian Federation for participation in international negotiations, international conferences and forums, or with other official assignments shall be accorded the customs privileges, which are stipulated by this Customs Code for members of diplomatic staff of representative offices of foreign countries. The same privileges shall be granted to the family members accompanying said persons.

Article 307. Conveyance of Goods by Members of Diplomatic Staff, Consular Officers, Representatives and Members of Delegations of Foreign Countries Transiting in Customs Territory of the Russian Federation

Members of diplomatic staff of representative offices of foreign countries and consular officers of consular offices of foreign countries, members of their families, as well as the persons specified in Article 306 of this Customs Code transiting in the customs territory of the Russian Federation shall be accorded the same customs privileges as those stipulated by this Customs Code for members of foreign diplomatic staff.

Article 308. Customs Privileges Accorded to International, Interstate and Inter-Governmental Organisations, Representative Offices of Foreign Countries Accredited Thereto, and Staff Members of Said Organisations and Representative offices

Customs privileges accorded to international, interstate, and inter-governmental organisations, representative offices of foreign countries accredited thereto, and staff members of said organisations and representative offices, as well as members of their families shall be stipulated by respective international agreements of the Russian Federation.

Chapter 26.
CONVEYANCE OF COMMODITIES BY PIPELINES AND VIA ELECTRIC POWER LINES

Article 309. Sphere of Application of this Chapter

Conveyance of commodities across the customs territory of the Russian Federation using pipeline transport or through electric power lines shall be effected in accordance with the provisions contained in this Chapter, or based on general procedures established by this Customs Code wherever the provisions of this Chapter do not apply.

Article 310. Importation and Exportation of Commodities Conveyed by Pipeline Transport

1. Importation to and exportation from the customs territory of the Russian Federation of commodities using pipeline transport shall only be permitted following the acceptance by the customs authorities of the customs declaration and release of commodities in compliance with the terms and conditions of the customs procedure declared in it.

2. At the instance of submission of a customs declaration, physical presentation of commodities for inspection will not be required.

3. During importation to and exportation from the customs territory of the Russian Federation of commodities using pipeline transport, mixing of commodities as well as change of their quantity and condition (quality) resulting from the technological peculiarities of the commodity transportation and specifications will be permissible based on requisite technical regulations and national standards adopted in the Russian Federation.

4. The customs procedures of temporary storage and domestic customs transit shall not apply to the commodities conveyed by pipeline transport.

Article 311. Declaration of Commodities Conveyed by Pipeline Transport

1. During conveyance across the customs border of commodities using pipeline transport, the commodities periodic temporary declaration will be permissible pursuant to the regulations specified by Article 138 of this Customs Code with consideration of the peculiarities stipulated by this Article.

The commodities periodic temporary declaration is effected by way of submission of a temporary customs declaration.

Contained in the temporary customs declaration may be information predicating the quantities of commodities intended for exportation or importation within a designated period of time, not exceeding term of validity of the foreign trade agreement [contract], the commodities conventional customs value (valuation) determined based on the quantities of commodities scheduled for conveyance across the customs border and/or the commodity price determination procedure stipulated by the terms and conditions of the external trade agreement.

The customs authorities may accept a single temporary customs declaration submitted to them with regard to the commodities imported or exported by the same person in compliance with the terms and conditions of the same customs procedure in the process of fulfilment of obligations assumed by said person pursuant to several foreign trade agreements [contracts] (including the contracts stipulating different terms of supply, pricing and payments).

2. A temporary customs declaration should be submitted by a declarant for the period of time not exceeding three months, or one calendar year with regard to natural gas, not later than on the 20th day of the month preceding said period.

In case the terms of supply and/or quantities of supplied commodities stated in the temporary customs declaration accepted by the customs authorities have changed inside a calendar month, the declarant has the right to submit an additional temporary customs declaration within the month when said supply is effected.

3. The declarant shall be obliged to submit one or several duly filled out complete customs declarations for the commodities imported or exported within the duration of each calendar month of supply of said commodities. A complete customs declaration should be submitted by a declarant not later than on the 20th day of the month following the commodity supply calendar month. Upon the declarant’s motivated request, the customs authorities may extend the term of submission of the complete customs declaration with regard to the exported commodities for the period not exceeding ninety days. Any extension of the term of submission of the complete customs declaration will not prolong the terms of dutiable payments.

4. In case the commodities declared for importation or exportation in the temporary customs declaration have not been either imported or exported, the declarant shall be obliged to submit written notification in that regard to the customs office concerned prior to expiry of the term of submission of the compete customs declaration.

Article 312. Application of Rates of Customs Duties and Taxes and their Payment Procedure in case of Conveyance of Commodities by Pipeline Transport

1. Dutiable payments are charged on the goods and commodities exported from the customs territory of the Russian Federation for each calendar month of their supplies based on the rates of customs import duties effective on the 15th day of the commodity supply month.

At least 50 percent of the amounts of export duties calculated based on the information stated by the declarant in the temporary customs declaration are paid on the 20th day of the month preceding each commodity supply calendar month. Note: calculation of the amounts of export customs duties is made proceeding from the quantity of goods pro rata one supply calendar month in case the supply period stated in the temporary customs declaration exceeds a calendar month.

If the declarant opts to submit an additional temporary customs declaration, as per the second paragraph of Item 2 in Article 311 of this Customs Code, the chargeable export duties should be paid in full not later than on the date of acceptance of said additional declaration.

The remaining calculated amount of the export customs duties based on the verified information on the exported commodities and the export duty rate effective on the 15th day of the commodity supply month shall be paid not later than on the 20th day of the month following each commodity supply calendar month.

2. In the instance of commodity importation by pipeline transport, the applicable customs import duties and taxes should be paid not later than on the 20th day of the month preceding each commodity supply calendar month based on the information stated in the temporary customs declaration. For the purpose of calculation and disbursement of dutiable payments applicable to the commodities should be the rates of customs duties and taxes effective on the 15th day of the month preceding the commodity supply month.

The verified details on the commodities imported each commodity supply calendar month should be submitted to the customs office concerned not later than on the 20th day of the month following each commodity supply calendar month. In case the amounts of payable customs duties and taxes have increased as a result of verifications, the additional amounts should be disbursed concurrently with submission of the verified details. In this case, penalty fees are not charged.

The excessively paid amounts are reimbursed in accordance with Article 355 of this Customs Code.

Article 313. Application of Restrictions and Prohibitions Stipulated by the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities

Commodities conveyed with the use of the pipeline transport shall be subjected to the Federal Law of the Russian Federation on the State Regulation of Foreign Trade Activities from the day of acceptance of the temporary customs declaration.

Article 314. Peculiarities of Importation, Exportation and Declaration of Commodities Conveyed through Electric Power Lines

1. Importation to and exportation from the customs territory of the Russian Federation of the commodity conveyed through electric power lines may be effected without a preliminary permission of the customs authorities provided said conveyance will be subsequently declared and the customs duties and taxes chargeable thereto disbursed pursuant to the regulations stipulated by this Article.

2. The customs procedures of temporary storage and domestic customs transit are not applied to the commodity conveyed through electric power lines.

3. Declaration of electric power transmitted across the customs border is effected by way of submission of a customs declaration not later than on the 20th day of the month following each calendar month of the commodity de facto supply. Upon the declarant’s motivated request, the customs authorities may extend the term of submission of the customs declaration by not more than five days.

4. Subject to declaring is actual quantity of transmitted electric power determined based on the readings of the registering instruments installed in the technologically stipulated locations for recording transmission of electric power.

The quantity of electric power conveyed between two countries is determined as a power-flow balance (which constituted an algebraic sum of electric power flows in opposite directions through the operational inter-state electric power lines of all classes of voltages) for every calendar month.

The calculated power-flow balance is adjusted by the value of losses of electric power occurring in the grid during transmission of electric power.

Declaration is effected based on the acts of the electric power actual supplies pursuant to a respective foreign trade agreement.

5. Customs duties and taxes shall be disbursed not later than on the day of submission of the customs declaration for the commodity conveyed across the customs border within a single calendar month.

Article 315. Guarantees of Dutiable Payments

The customs authorities have the right to demand that the declarant provide a guarantee for requisite dutiable payments in case the declarant has been conducting said foreign economic activities for less than one year. The actual value of such guarantee shall be determined pursuant to provisions of Article 338 in this Customs Code.

Article 316. Non-Application of Requirements for Merchandise Identification with regard to Commodities Conveyed by Pipeline Transport or via Electric Power Lines

Identification of merchandise conveyed by pipeline transport or through electric power lines is not conducted, which fact does not prevent the customs authorities from determining the commodities’ quantities, quality, and other characteristics based on the information contained in respective documents, as well as the readings of meters and other measuring and registering instruments for customs clearance purposes.

Article 317. Conveyance of Russian Commodities between Two Points Situated in the Territory of the Russian Federation across the Territory of Foreign Country

Conveyance of Russian commodities between two points situated in the territory of the Russian Federation across the territory of a foreign country using pipeline transport or electric power lines is regulated by the provisions of Item 4 of Chapter 21 of this Customs Code with regard to the special customs procedure of conveyance of Russian goods and commodities between customs offices across the territory of a foreign country.

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Запреты и ограничения на вывоз товаров из РФ

PART II.CUSTOMS PROCEDURES

Section 1. CUSTOMS REGISTRATION/CLEARANCE

Article 58. The Sphere of Application of this Chapter

Article 59. Customs Registration Procedures

Article 60. Commencement and Completion of Customs Registration Formalities

Article 61. Permission for Customs Operations by the Customs Authorities

Article 62. Time and Place of Customs Registration with Regard to Goods and Means of transport

Article 63. Documents and Information Required for the Fulfilment of Customs Registration

Article 64. Presence of Interested Persons of their Representatives during Customs Registration

Article 65. Language of Customs Registration

Article 66. Customs Clearance and Control Measures Exercised by Other State Bodies

Article 67. Priority Order of Customs Control Procedures

Article 68. Special Simplified Customs Control Procedures for Specific Persons

Chapter 9.ENTRY OF MERCHANDISE TO THE CUSTOMS TERRITORY OF THE RUSSIAN FEDERATION

Article 69. Timing and Place of Entry of Merchandise and Means of Transport to the Customs Territory of the Russian Federation

Article 70. Measures Taken in Case of Accidents, Force Majeure, or other Circumstances

Article 71. Preliminary Notification of Customs Authorities of the Entry of Merchandise and/or Means of Transport to the Customs Territory of the Russian Federation

Article 72. Submission of Documents and Information in instances of the Entry of Merchandise and Means of transport to the Customs Territory of the Russian Federation

Article 73. Documents and Information Submitted to the Customs Authorities in instances of the International Shipment of Goods by Motor Vehicle

Article 74. Documents and Information Submitted to the Customs Authorities in instances of the International Shipment of Merchandise by Seagoing Vessel (Riverboat)

Article 75. Documents and Information Submitted to Customs Authorities in instances of the International Shipment of Merchandise by Air Transport

Article 76. Documents and Information Submitted to Customs Authorities in instances of the International Shipment of Merchandise by Railway Transport

Article 77. Operations with Goods and Means of transport at a Customs Terminal

Article 78. Unloading and Transhipment of Merchandise at a Customs Terminal

Chapter 10.DOMESTIC CUSTOMS TRANSIT

Article 79. Domestic Customs Transit

Article 80. Permission for Domestic Customs Transit

Article 81. Transit Declaration

Article 82. Time Terms for Domestic Customs Transit

Article 83. Identification of Goods and Documents Thereto

Article 84. Equipment of Means of transport, Containers and Removable Truck Bodies for Haulage of Merchandise under Customs Seals and Stamps

Article 85. Place of Destination of Merchandise subject to Domestic Customs Transit Procedure

Article 86. Measures for Effecting Observance of Statutes of Customs Legislation of the Russian Federation with regard to Domestic Customs Transit

Article 87. Customs Escort

Article 88. Obligations of Carrier pursuant to Domestic Customs Transit

Article 89. Transhipment, Unloading, Loading and Other Cargo-Handling Operations

Article 90. Responsibility of Carrier and Forwarder pursuant to Domestic Customs Transit

Article 91. Measures Taken in Case of Accident, Force Majeure or other Circumstances

Article 92. Completion of Domestic Customs Transit

Article 93. Customs Carrier

Article 94. Terms of Entry into Register of Customs Carriers

Article 95. Application for Entry into the Register of Customs Carriers

Article 96. Certificate of Entry into the Register of Customs Carriers

Article 97. Obligations of the Customs Carrier

Article 98 Withdrawal of Certificate of Entry into the Register of Customs Carriers

Article 99. Temporary Storage of Goods

Article 100. Temporary-Storage Warehouses

Article 101. Placement of Goods at Temporary-Storage Warehouses

Article 102. Documents Required for Placing Goods at a Temporary-Storage Warehouse

Article 103. Terms of Temporary Storage

Article 104. Operations with Goods Placed in a Temporary-Storage Warehouse

Article 105. Damaged or Ruined Merchandise

Article 106. Types of Temporary-Storage Warehouses

Article 107. Technical and Engineering Requirements to Facilities and Location of Temporary-Storage Warehouses

Article 108. Owners of Temporary-Storage Warehouses

Article 109. Terms of Entry into the Register of Owners of Temporary-Storage Warehouses

Article 110. Application for Entry into the Register of Owners of Temporary-Storage Warehouses

Article 111. Certificate of Entry into the Register of Owners of Temporary-Storage Warehouses

Article 112. Obligations of the Owner of a Temporary-Storage Warehouse

Article 113. Withdrawal of Certificate of Entry into the Register of Owners of Temporary-Storage Warehouses

Article 114. Operations with Merchandise in case of Exclusion of the Owner of a Temporary-Storage Warehouse from the Register of Owners of Temporary-Storage Warehouses

Article 115. Storage of Merchandise at Customs Temporary-Storage Warehouses

Article 116. Peculiarities of Temporary Storage of Goods Transported by Railway

Article 117. Temporary Storage at a Warehouse Owned by Goods Recipient

Article 118. Placement of Goods in a Temporary-Storage Warehouse by Customs Authorities

Chapter 13.EXPORTATION OF GOODS FROM THE CUSTOMS TERRITORY OF THE RUSSIAN FEDERATION

Article 119. Place and Time of Departure of Goods and Means of transport from the Customs Territory of the Russian Federation

Article 120. Submission of Documents and Information

Article 121. Loading of Goods to Means of transport Departing from the Customs Territory of the Russian Federation

Article 122. Requirements of Goods at their Departure from the Customs Territory of the Russian Federation

Chapter 14.DECLARATION OF GOODS

Article 123. Goods Liable for Declaration

Article 124. Declaration of Goods to the Customs Authorities

Article 125. Places for Declaring Goods

Article 126. Declarant

Article 127. Declarant’s Rights and Obligations

Article 128. Peculiarities of Declaring Goods with Different Names within the Same Consignment

Article 129. Time Limits for Submitting a Customs Declaration

Article 130. Preliminary Declaration of Goods

Article 131. Submission of Documents pertaining to the Declaration of Goods

PART II.
CUSTOMS PROCEDURES

Chapter 9.
ENTRY OF MERCHANDISE TO THE CUSTOMS
TERRITORY OF THE RUSSIAN FEDERATION

Chapter 10.
DOMESTIC CUSTOMS TRANSIT

Chapter 13.
EXPORTATION OF GOODS
FROM THE CUSTOMS TERRITORY OF THE RUSSIAN FEDERATION

Chapter 14.
DECLARATION OF GOODS

Chapter 15.
CUSTOMS BROKER (agent)