- the first 2 digits (e.g. 72- ferrous materials) represent the commodity group (chapter);
- the first 4 digits (e.g. 7217 – iron/nonalloy-steel wire) are referred to as the heading;
- the first 6 digits (e.g. 721720 – iron /nonalloy-steel wire, plated or coated with zinc) represent subentry;
- 10 digits (e.g. 7217209000 – iron /nonalloy steel wire, with 0.6% or more carbon, plated or coated with zinc) make full entry and is fixed in customs cargo declaration.
Definition of the conveyed commodity code is assigned to the declarant, however it’s accuracy is verified by customs authorities. The defined codes of the conveyed goods are used to count customs duties to levy, and also, to apply special provisions if there are ones prescribed to these goods.
-
INVOICE is issued by Seller or Consignor/Forwarder. This is the main confirmation of declared goods value. Must contain the following data:
- Reference number and issue date of the Invoice;
- Names of Seller, Sender, Buyer, Consignee;
- Reference number and date of the Contract;
- Registration number of the transport vehicle or type of transport;
- Delivery terms;
- Payment terms;
- Goods name;
- Goods NGFT code;
- Goods Country of origin;
- Weight per item and grand total weight;
- Number of packages/pieces and marking data if available;
- Price per item and grand total price;
- Packaging;
- Miscellaneous data.
- PACKING LIST issued by Seller or Sender. Required to specify the quantity, packing method, overall dimensions, and recorded confirmation of weight brutto and netto for each of declaring goods NGFT code.
- Declaration of conformity — issued by Manufacturer or Sender or in their name. Required for goods certification in Russian Federation.
- Certification of Origin — issued by Chamber of Commerce of Sender’s state/country. Could be of 3 types: Form A – for developed countries (для развивающихся стран дальнего зарубежья), Form CT-1 (for CIS states) and regular form (rest of countries). Required for confirmation of the country of origin of goods.
- Sanitary, Veterinary, phytosanitary certificates (regarding type of registering goods) — issued by relevant authorities of the country of export. In some cases should be legalized by accredited representative of Russian Federation in the country of export.
- Price-list and/or copy of export customs cargo declaration копия экспортной Грузовой Таможенной Декларации (ГТД). Required for goods price confirmation.
- Copy of Insurance Form (for delivery terms CIP, CIF). Required for delivery on terms of CIP, CIF, also, required for goods price confirmation.
- Shipping documents:
- CMR;
- Bill of Lading;
- Carnet TIR;
- Delivery Control Form (in Russian Federation);
CMR completion template: Section1. Sender (name, full address, country). If the goods send to Russian Federation by the third company under commitment for Contract Holder, there is the name of that company to be figured out with remark “Under commitment for ”. E.g. “Company B (Sender) under commitments for Company A (Contract Holder) Section 2. Consignee (name, full address, country) Section 3. Place of end delivery of the goods. Consignee’s or other company’s store address Section 4. Place and date of taking over of the goods Section 5. Annexed documents. References of invoices, price quotations, certificates etc., carnet TIR number. Sections 6. 7. 8. 9.10. 11. 12. Number of packages, Method of packing, Nature of the goods, NGFT codes, Gross weight in kg, Volume in m3 Section 13.Consignee’s customs authority details (Customs, gateway, gateway code ), bonded warehouse or temporary-storage customs warehouse (address, license number and license expiration date) Section 15. Terms of delivery according to Incoterms-2010. Sections 16,17. Carrier (Name, Address, Country), his stamp and signature. Section 20. Date of receipt, Consignee’s Stamp and signature Section 21. Date of CMR completion. Sections 25, 26. Registered numbers of truck and trailer.
- Transport and insurance documents, if they are available depending on terms of delivery;
- Transportation bill or legalized copy of price calculation for transportation costs (in case transportation costs are not included into invoice)
- Customs declaration of exporting country, certified by Sender;
- Shipment orders;
- Specifications, price-lists, catalogues by Manufacturer;
- Price calculations by Manufacturer for evaluated goods (in case the Manufacturer agree to submit it for Russian party);
- Commercial, customs and billing document relevant to contracts for identical or similar goods; Price calculation, brochures, bills, price quotations by Manufacturer;
- Other documents which could be used to confirm data figured out in customs value declaration.
- In case of specific nature of goods, it is desirable to submit explications and descriptions: technical details, brochures, samples, drawings etc. All the copies are to be legalized by Consignee.
In accordance with paragraph 1a article 19 of the Customs Tariff Law shipping expenses include costs for transportation, loading, transfer reloading and unloading, insurance fees. Hence propriety evaluation of expenses for shipment after the place of bringing the goods in the territory, is to be evaluated separately regarding the each constituent, as transportation cost depends on distance, loading-unloading costs depend on weight while insurance fee is relevant to the price of goods.
- If there are special equipment and/or skills required to provide customs declaring of that kind of goods.
- Depending on type of transport used for international cargo carriage.
- in case of conveying across the customs border certain types of goods which are used to be subjects of customs regulations violations or in case of prohibitions or restrictions are established according to the applicable legislation of the Russian Federation in field of foreign trade activity.
- in case when a special control measures required for particular types of goods containing objects of intellectual property according to the registry approved by Russian Federation regulatory.
If the declaration is submitted to unauthorized customs body, that declaration at the discretion of the declarant could be optionally:
- resent to the authorized customs body at the day of submission (the period of declaration acceptance can be extended for the time that is necessary for re-sending the declaration form but no longer than for two days), or
- returned back to the declarant to be submitted by himself to the relevant authorized customs body.
The customs declaration for imported commodities is to be submitted within15 days starting from the actual cargo arrival at the customs terminal of the Russian Federation or from the moment of the completion of the domestic customs transit procedure (e.g. from the date of placement to the temporary-storage warehouse). It is permitted to extend the time limit of customs declaration submission within the maximum duration of temporary storage of merchandise. Submission of customs declaration for exported goods is submitted, as a rule, before their departure from the customs territory of RF. The procedure of customs declaration acceptance is regulated by Order No.1356 by 28.11.2003 issued by State Customs Committee of Russian Federation.
- to ensure safety preservation for foreign goods while performing customs clearing;
- to provide an opportunity for the interested persons to check the goods and to submit customs declaration.
The temporary-storage warehouses are the most common places for temporary storage. In special cases the procedure of temporary storage may be carried out by
- the cargo recipient
- the railways bodies
To place the goods for temporary storage at the same place of actual arriving it is required to submit the regular set of documents that follows cargo arrival to the customs territory of theRussian Federation. In case that temporary storage is out of the place of actual goods arriving, it is required to submit the documents for domestic customs transit. The mentioned documents are submitted to the customs authority by temporary-storage warehouse owner. In case of insufficiency of submitted data the person that is responsible for placement goods to the customs temporary storage is obliged to submit the missing data. The Federal Customs Service may narrow the number of data required to place goods under the customs procedure of temporary-storage warehouse, depending on type of transport, type of goods, and categories of persons performing conveyance of goods and vehicles. Regular term of temporary storage makes 2 month. Maximum duration of temporary storage of merchandise is 4 months. That means that temporary storage of regular terms prolongation is permitted up to 2 months. Breaching terms of temporary storage of goods entails responsibility in accordance with Administrative Code of theRussian Federation, chapter 16.16. “Goods temporary storage terms breaching”. To define the terms of temporary storage is to be considered the following:
- The type of goods. For example, the terms of temporary storage for short-lived commodity established according to the quality expiration. Commodities banned for admission at the territory of Russian Federation are permitted for temporary storage within 3 days.
- Goods legal statue. For example, for the commodity placed for temporary storage while holding special customs audit, terms of temporary storage is defined by terms of the audit.
Under condition of changing status, for example, from statue of customs clearance to statue of evidence, the temporary storage will be prolonged for the whole period of the proceedings on the case starting from institution of an action of legal proceedings, up to the moment when the court decision coming into effect. Commodities that placed under the customs procedure of temporary storage may be subjected to the following operations:
- Measures to ensure preservation of goods and to prepare them for customs declaring (examination, revising, counting, weighting etc.). Mentioned measures may be performed by persons in charge regarding these goods and/or their representatives, e.g. brokers. While performing this measures the goods must preserve their condition, packaging and and/or means for identification.
- Measures to prepare goods for exiting the temporary-storage warehouse and following selling, measures for sampling for expertize needs, measures to restore damaged packaging.
Some of the mentioned measures as sampling could be also performed for aims of declaration. The main condition for performing of any kind of operation is to get permission of customs authorities.
The temporary-storage warehouses. The temporary-storage warehouse is to be understand as rooms and/or open plots of land intended for storage of goods. The temporary-storage warehouse must meet the following requirements: 1. Location Requirements:
- the temporary-storage warehouses is to be located at the same post address or inside the territory continuous by perimeter, in the region assigned to the customs station issued the permission;
- it must be located at the reasonable proximity to the junctions and highways through which commodities are delivered from the customs bodies of RF;
- there must be access ways from junctions and highways to the temporary-storage warehouse;
- it is not permitted to locate the temporary-storage warehouse on movable transport vehicles of any kind.
2. Requirements regarding facilities and equipment of temporary-storage warehouse: These requirements ensure:
- safety preservation of goods;
- avoid unauthorized access to the goods (by those persons who are not in charge to deal with the goods nor representatives of persons in charge);
- possibility to perform the customs control procedures for the stored goods;
- completion of the domestic customs transit procedure.
There are allowed to be temporary-storage warehouses of two types:
- The temporary-storage warehouse of the open type intended for goods and users of any kind.
- Closed-type temporary-storage warehouse intended for:
- owner’s wares storage;
- certain types of goods, including those with restrictions for turnover;
- those kinds of goods which need special terms of preservation.
It is up to the applicant to choose the type of the temporary-storage customs warehouse. The type of the organized temporary-storage customs warehouse as well as the necessity and expedience of applying for the closed-type temporary-storage warehouse, described in application form for registering ownership of temporary-storage warehouse. Customs authorities are allowed to organize temporary-storage warehouse of open type only. Such kind of temporary-storage warehouse has to meet all requirements concerning location, facilities and equipment.
- individuals for personal, family, private and other needs that are not connected with commercial activity;
- special categories of foreign citizens ;
- foreign organizations/representatives accredited in the Russian Federation, while declaring customs procedures of the temporary importation, re-exportation, transit аs well as customs procedure of release for the internal consuming of goods imported for the own needs of that representatives;
- foreign carriers while 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 part to it.
The customs declaration is to be submitted to declare:
- goods that are conveyed across the customs borders;
- goods that are subjected to changing of the customs procedure (e.g. customs procedure of temporary admission is changed to procedure of release for the domestic consuming);
- wastes that generated while implementing a customs procedures of inward processing and processing for domestic consumption;
- wastes that are rests of goods imported for processing and not processed while implementing a customs procedures of inward processing and processing for domestic consumption;
- wastes that generated from destructed foreign goods while implementing the customs destruction procedure;
- goods which were illegally conveyed across the customs border of theRussian Federation and are bought by a person which performs commercial activity and not involved into the illegal conveyance.
Ways of customs declaring. Customs declaration may be submitted by parties of foreign trade activity in hard copy or digital digitally. Hard copy of customs declaration includes:
- customs cargo declaration;
- application form (e.g. declaring customs procedure of re-export);
- transit declaration (e.g. in case of goods transportation by the procedure of international customs transit);
- customs document (e.g. carnet ATA in case of temporary importation).
Digital form of declaring performed in accordance with paragraph 8 chapter 63 and paragraph 1 chapter 124 of the Customs Code of Russian Federation and in accordance with Order No.395 by State Customs Committee of Russian Federation issued by 30.03.2004. The procedure of digital declaring includes:
- digital submission of the data that are to be figured in hard copy of the customs cargo declaration form or customs declaration application form;
- submission of the digital forms and forms register which confirmed submitted data according to the chosen customs procedure.
- customs duties, taxes, commissions payments;
- to pay for customs clearance fees payments;
- licenses and certificates.
Other options for implementing the customs procedure of domestic transit are:
- transportation of commodities from the place of customs declaring to the place of actual departure from customsterritoryofRussian Federation(e.g. exportation of compensating products generated by foreign goods processing);
- transportation between temporary-storage warehouses or bond warehouses (e.g. in case of termination of activity of temporary-storage warehouse where undeclared wares preserve).
The customs procedure of domestic transit cannot be implemented in following cases:
- under the emergency (technical) landing or stopover of the airplane at the arriving place while performing a regular flight without partial unloading;
- to the commodities conveyed across the border using pipeline transport or via electric power-lines.
Transit duration under the customs procedure of domestic transit defined on each certain case by the customs authorities that issued permission for customs domestic transit (customs authorities of departure). Factors that affected terms of transportation are the carrier statement, type of transport, rout length. All the listed above is to counted within terms that fixed in paragraph 1 of chapter 82 of Customs Code, namely:
- 2 000 km per month for automobile, railway, sea (river) transport;
- 3 days for aviation.
The permission for placement goods under the customs procedure of domestic transit is issued by customs authorities in the region of starting point of transportation (customs authorities of place of departure). The permission may be issued for:
- the carrier;
- the expeditor under condition of owning Russian citizenship;
- the foreign goods recipient, who performs transactions with that goods not at the place of location of customs authorities.
The following requirement are to be fulfilled in order to get the permission:
- Commodities applied for transportation under the customs procedure of domestic transit are not banned for importation to theRussian Federation; had passed all the necessary state control procedures that provided for goods importation to the territory of Russian Federation(veterinary, sanitary and others); permitted/licensed for transportation of single goods across the customs territory of Russian Federation.
- The transit declaration or waybills are submitted.
- Customs taxes and fees payments are ensured.
- The transport mean/container/ removable truck bodie is equiped appropriately to transport cargo under customs seals and stamps.
- Identification of goods and relative documents is carried out.
It is not required to ensure customs taxes and fees payments in cases of
- transportation of goods using authorized customs carrier;
- customs support for carriers.
The permission form of placement the goods under the customs procedure of domestic transit is settled by Instruction for performing customs operations under the domestic and international transit of commodities. The place of shipment for domestic transit is defined by customs authorities of place of departure based on destination place, pointed in waybills. The place of shipment is the place of location of customs authorities assigned as customs supervision zone (in most cases they are territories of temporary-storage warehouses where customs stations or subdivisions authorized for customs clearance allocated). Exceptions to the rule make shipments to the places of location of recipient’s warehouse. The place of destination for exportation goods from the customs territory of Russian Federation is to be the place of departure outside Russian Federation.
- TERMS FOR ANY TRANSPORT MODE
- EXW – EX WORKS (… named place of delivery)
The Seller’s only responsibility is to make the goods available at the Seller’s premises. The Buyer bears full costs and risks of moving the goods from there to destination.
- FCA - FREE CARRIER (… named place of delivery)
The Seller delivers the goods, cleared for export, to the carrier selected by the Buyer. The Seller loads the goods if the carrier pickup is at the Seller’s premises. From that point, the Buyer bears the costs and risks of moving the goods to destination.
- CPT – CARRIAGE PAID TO (… named place of destination)
The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage.
- CIP – CARRIAGE AND INSURANCE PAID TO (… named place of destination)
The Seller pays for moving the goods to destination. From the time the goods are transferred to the first carrier, the Buyer bears the risks of loss or damage. The Seller, however, purchases the cargo insurance.
- DAT – DELIVERED AT TERMINAL (… named terminal at port or place of destination) to The Seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the Buyer’s disposal at a named terminal at the named port or place of destination. “Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal.
The Seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.
- DAP - DELIVERED AT PLACE (… named place of destination)
The Seller delivers when the goods are placed at the Buyer’s disposal on the arriving means of transport ready for unloading at the names place of destination. The Seller bears all risks involved in bringing the goods to the named place.
- DDP – DELIVERED DUTY PAID (… named place)
The Seller delivers the goods -cleared for import – to the Buyer at destination. The Seller bears all costs and risks of moving the goods to destination, including the payment of Customs duties and taxes.
- RULES FOR SEA AND INLAND WATERWAY TRANSPORT
- FAS – FREE ALONGSIDE SHIP (… named port of shipment)
The Seller delivers the goods to the origin port. From that point, the Buyer bears all costs and risks of loss or damage.
- FOB – FREE ON BOARD (… named port of shipment)
The Seller delivers the goods on board the ship and clears the goods for export. From that point, the Buyer bears all costs and risks of loss or damage.
- CFR – COST AND FREIGHT (… named port of destination)
The Seller clears the goods for export and pays the costs of moving the goods to destination. The Buyer bears all risks of loss or damage.
- CIF – COST INSURANCE AND FREIGHT (… named port of destination)
The Seller clears the goods for export and pays the costs of moving the goods to the port of destination. The Buyer bears all risks of loss or damage. The Seller, however, purchases the cargo insurance.
