PART II. OUTWARD PROCESSING REGIME

Outward processing allows for complete or partial relief of payment of import duties and VAT for 12) … goods imported again, after it has been temporarily exported from the customs area, in order to undergo processing operations.

The following are the processing operations:

- working of goods, including its assembly or installation or its integration in other goods;

- Processing of goods;

- Completion of goods;

- The repair of goods, including restoring them and putting them in order;

- Goods exported for replacement.

The procedure may be applied for all types of goods. The same shall be applied in case when the received products and the goods for temporary import are subject to import duties and VAT.

In the outward processing including working, processing and completion of the goods, two methods are applicable for calculation of the import duties and VAT: The method of added value and the method for difference in duties. According to the added value method, the basis for payment of the import duties and VAT shall be the sum of the expenses of the outward processing abroad, the transportation and other additional costs for realization of the outward processing of the goods. At customs 13) …, the valid customs rate for the received imported products shall be applied. By using this method, maximum relief of payment is provided, if the customs rate for the exported goods is lower then the customs rate for the received products, due to the fact that customs duties are paid only for the added value. The method of added value cannot 14) … to foreign goods or goods which have been put in market circulation before export with customs rate with value zero.

According to the method of difference between duties, the basis for payment of the import duties and VAT shall be the difference between the import duties (the customs rate) for the received products put in free 15) … after outward processing of the goods and the import duties (the customs rate) which would be 16) … on the same day, if the goods are exported for outward processing (in the original condition). During customs clearance, the valid customs rate shall be applicable for the received imported products and the valid customs rate for the goods subject of outward processing.

In cases of free of charge repair of goods during the period of guarantee, a complete relief of customs duties may be required, under the condition the goods be repairable and the repair not to be used for improvement of its technical characteristics. In case of free of charge replacement of defected or damaged goods within the 17) … period, complete or partial relief shall be applicable for import duties, which shall be determined in a manner that the amount of import duties estimated for the replacement product put in market circulation shall be deducted from the amount of import duties which would be calculated for the exported goods, subject to outward processing. If the goods are repaired or replaced after the guarantee period, partial relief of customs duties is possible. The methods for calculation of the import duties and VAT are described in detail in the by-law on outward processing.

Date: 2016-01-14; view: 676