Customs clearance Customs regimes Release for domestic consumption

RELEASE FOR DOMESTIC CONSUMPTION

Release of goods for domestic consumption-customs regimeunder which goods imported into the customs territory of the Russian Federation remain in this territory without an obligation to re-export them.

The application of the customs regime of release for domestic consumption is regulated by the following documents

  • Labor Code of the Russian Federation (§ 1 of Chapter 18 of the Labor Code of the Russian Federation)
  • Order of the Federal Customs Service of Russia dated August 3, 2006 No. 724 "On approval of new forms of sets of customs declaration and transit declaration forms"
  • Order of the Federal Customs Service of Russia dated August 11, 2006 No. 762 "On approval of the Instructions on the procedure for filling out a cargo customs declaration and a transit declaration"
  • Order of the Federal Customs Service of Russia dated April 25, 2007 No. 536 "On approval of the List of documents and information required for customs clearance of goods in accordance with the selected customs regime"
  • Order of the State Customs Committee of Russia dated March 30, 2004 No. 395 "On approval of the Instruction on the performance of customs operations when declaring goods in electronic form"

Considering that in most cases, when goods are released into the customs territory of the Russian Federation, all main types ofcustoms payments, you can also highlight:

  • Law of the Russian Federation "On customs tariff"
  • Tax Code of the Russian Federation
  • Decree of the Government of the Russian Federation of November 27, 2006 No. 718 "On the Customs Tariff of the Russian Federation and the commodity nomenclature used in the implementation of foreign economic activity"
  • Decree of the Government of the Russian Federation of December 28, 2004 No. 863 "On the rates of customs fees for customs clearance of goods"

In addition to the above, there are a number of documents that provide for additional requirements for the importation into the customs territory of the Russian Federation (in the mode of release for domestic consumption) of certain types of goods, for example, weapons, food, cultural property, etc. These requirements are classified as prohibitions and restrictions provided for by the legislation of the Russian Federation on state regulation of foreign trade activities.

The application of the customs release regime for domestic consumption provides for several options for the release of goods.

  1. Release of goods for free circulation, subject to the payment of all necessary customs duties, taxes, as well as compliance with the restrictions established in accordance with the legislation of the Russian Federation on state regulation of foreign trade activities. Goods released for free circulation for customs purposes acquire the status of Russian goods.
  2. The customs regime of release for domestic consumption (for the purpose of clearing goods for free circulation) can be declared not only when goods are imported, but also when they are in the customs territory of the Russian Federation in accordance with the previously declared customs regime. For example, in cases of release into free circulation:
    • foreign goods for processing and (or) products of their processing;
    • temporarily imported goods;
    • goods stored incustoms warehouse.

Conditional release of goods

Conditional release of goodsexempt from paymentcustoms duties, taxes, or conditional release without providing the necessary permits confirming compliance with the restrictions established in accordance with the legislation of the Russian Federation, as well as conditional release upon granting a deferment or installment payment of customs payments or in the event of actual non-receipt of customs duties and taxes to the account of the customs authority.

Conditionally released goods continue to retain the status of being under customs control and are treated as foreign goods.
The use of the customs regime of release for domestic consumption, with the existing benefits for the payment of customs duties, may have its own characteristics.
For example, when placing humanitarian aid under the customs regime of release for domestic consumption, a full exemption from payingimport customs payments(Decree of the Government of the Russian Federation of April 4, 1999 No. 1335 "On Approval of the Procedure for Providing Humanitarian Aid (Assistance) to the Russian Federation"), while the complete or partial sale of humanitarian aid is prohibited.

Restrictions are also provided in the case of the import of goods as a contribution to the authorized (share) capital of enterprises with foreign investments. In this example, the release regime for domestic consumption is also declared, but in view of the provision of benefits in relation to imported goods (exemption from customs duty, and for technological equipment and value added tax), conditional release requirements related to the ban on the sale of such goods are applied

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In cases where the conditional release of goods in the mode of release for domestic consumption was carried out by the customs authorities without submitting documents confirming compliance with the restrictions established in accordance with the legislation of the Russian Federation on state regulation of foreign trade activities, such goods are not subject to transfer to third parties, including by selling them or alienating them in any other way, and in cases where restrictions on the import of these goods are established in connection with checking the quality and safety of these goods, then a ban is imposed on their use (exploitation, consumption) in any form.

Features of the customs declaration of goods placed undercustoms release regime for domestic consumption, provide

  1. Preliminary declaration of goods
  2. Declaration of goods of different names contained in one consignment with indication of one classification code according toTN VED of Russia
  3. Submissionincomplete customs declaration
  4. Submissionperiodic customs declaration
  5. Release of goods before filing a customs declaration
 
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