Customs tariff. RF Law on Customs Tariff

The RF Law "On Customs Tariff" establishes the procedure for the formation and application of one of the most important instruments of the country's trade policy. This concept acts as a lever at the state level regulating the country's domestic product market regarding its relationship with the world market. He also established the entire set of rules for levying duties on goods when moving them across the customs border of our country.

Next, the concept of the Unified Customs Tariff of the Customs Union should be touched. What it is? This term refers to the general set of rates of all customs duties that apply to goods imported into a single customs territory. For the Eurasian Economic Customs Union, a single customs tariff is an ordered system for describing goods imported from third countries with their coding and the amount of duty rates.

About Russian tariff

The main functions of any customs tariff can be called fiscal and protectionist. The purpose of the latter is to protect the national commodity producer. Its mechanism is simple: import goods taxed by customs duties automatically increase in price during the process of sale on the market of the importing country. Due to this, the competitiveness of domestic goods for similar purposes is increasing.

The task of the fiscal function of the tariff is to ensure the receipt of the proceeds from the collection of customs duties in the revenue of the state treasury.

The main goals proclaimed by the Law on Customs Tariff are as follows:

1. To rationalize the structure of the import of goods into the country.
2. To ensure a rational ratio of the volume of import and export of goods, a balance of income and expenses in foreign currency on the territory of the Russian Federation.
3. Create the conditions necessary for positive dynamics in the development of consumption and production of goods in the country.
4. Protect the national economy from foreign competitors.
5. Provide conditions for the effective integration of our country into the global economy.

Law content

What exactly determines this normative act on customs tariff? What does it say?

The law is about:

• The objectives of the customs tariff, its nature and scope, rates, as well as types of customs duties and related terminology.
• On the types of duties (seasonal and special) and the procedure for their application.
• On the rights and obligations of the customs authority and declarants.
• The methods by which the customs value of a particular product is determined, together with the procedure for their application.
• Criteria for determining the country of imported goods and the list of supporting documents.
• In those cases where exemption from customs duty or the provision of a preferential tariff is possible.
• On the principles of compliance with international relations in customs.

Read more about the concept

The customs tariff of the Russian Federation refers to the set of all customs duty rates that apply to goods transported across the border of the Russian Federation. All the information contained in it is systematized according to the commodity nomenclature of foreign economic activity (TN FEA).

At its core, customs duties relate to indirect taxes that the state levies on goods crossing the customs national border. According to its fiscal function, customs duties are one of the sources of the state budget.

What types of customs tariff rates are applied in the Russian Federation

There are three main varieties:

1. Ad valorem - accrued as a percentage of the customs value of goods transported.
2. Specific - the essence of the availability of a certain size per unit of each taxable product.
3. Combined - a combination of the two above varieties.

How is the customs value of goods imported into the Russian Federation determined?

Such an assessment is carried out using a number of methods, which we will now try to briefly touch upon.

• At the price of the transaction. This concept refers to imported goods at the time they cross the Russian border. The transaction price consists of the cost of delivering the goods to the place of import, as well as the buyer incurred that part of the cost that is provided by the seller free of charge or on special preferential terms. It also includes various types of licensing and other payments levied as certain conditions of sale, and part of the income (direct or indirect) from the future resale of the goods, their transfer or use in the country.
• Another evaluation criterion is the price of a transaction with goods of identical quality. That is, those that are completely equal to the evaluated product. Physical characteristics, reputation on the world market, manufacturer, quality, etc. are implied. This method is taken as a basis in the case of the sale of goods for import into the territory of Russia, simultaneous import of goods with the goods being evaluated on the same conditions and in approximately the same quantities. In case of revealing a different level of transaction prices for identical goods for customs value, the lowest of them will be accepted.
• Another pricing principle is the transaction price of homogeneous goods. As the latter, those are accepted that, while not being completely identical, have similar characteristics that allow performing similar functions. Homogeneity is characterized by quality, market reputation, the presence of a trademark, manufacturer, country of origin. As homogeneous, it is impossible to recognize goods produced in another country in relation to those being evaluated or designed and designed in the territory of the Russian Federation.

Other valuation methods

1. The method of subtracting the cost. It is applied when a similar evaluated or identical product is to be sold on the territory of the Russian Federation without changing its initial condition. The basis is the price of the goods at which its maximum lot is sold for 90 days (no later) from the date of importation. The price of the goods is reduced by the amount of commissions, allowances for profits and general expenses, import duties and other payments, including insurance, transportation, loading, unloading expenses.
2. The principle of value addition. To determine it, they take the price of the goods by adding three components: the cost of materials and all other costs of the manufacturer when releasing the goods, the total costs that will be faced when selling them (they take similar conditions for countries exporting similar goods, taking into account all overhead costs) and the planned profit, which the exporter usually receives as a result of the supply of such goods to our country.
3. Fallback method. They resort to it only when none of the five previous options can be used. Customs value is calculated according to world price information.

The above methods are applied sequentially. Each of them is taken into service if it is impossible to use all the previous ones.

The main objectives of the law

These include the need:

• To protect all sectors of the Russian economy and individual subjects of the Federation from adverse factors associated with foreign competition.
• Provide conditions for the effective entry of the domestic economy into the world market.
• Maintain at the required level the balance of payments of the country.
• To meet the needs of the domestic Russian market in the event of a critical shortage of certain goods (for example, agricultural products, etc.) by regulating their exports.
• Promote the products of Russian manufacturers to the world market.

Customs Tariffs and Duties

The main types of duties are several:

1. Special customs duties are those whose purpose is to protect the interests of domestic producers in the event that a large quantity of goods is imported into the country (or imported on conditions unfavorable to Russian manufacturers). They are also used as a preventive or response measure in response to the actions of other countries of a discriminatory nature and as a suppression of cases of unfair competition. The rate on such a fee is set each time separately.
2. Under the anti-dumping duties are understood those that apply if goods are imported into the customs territory of the country at a lower than normal cost and this procedure risks causing material damage to the domestic manufacturer. The task of the anti-dumping duty is to raise the price of imported goods to a normal level.
3. Compensatory variety of customs duties is charged in excess of the usual. They are used to reduce the competitiveness of imported goods within the domestic market. The rates of such duties may be significantly higher than the rates of import duties for the same type of goods. They are often used in case of importation of goods that were produced or operated using subsidies. The meaning of applying this duty is the same - protection from possible damage to domestic producers of a similar type of product.

In order to introduce the above special duties, an investigation procedure should be carried out with proof of possible damage or the fact of dumping, etc.

Other types of payments

Such payments, in particular, include excise taxes and value added tax (VAT). The rate of the latter is determined in the amount of 10% relative to food products (except for excisable goods) according to a special list approved by the Government of the Russian Federation, this also applies to goods for children. 20% is determined for all other goods, work or services, together with excisable food.

Calculate the VAT on imported goods on the basis of a certain customs value with the addition of a duty and, if necessary, the amount of excise duty.

According to tax law, a number of products are exempt from VAT:

• Intended for the needs of foreign diplomatic missions and the personal use of their personnel.
• Currency (Russian and foreign), banknotes as a means of payment and securities.
• Humanitarian aid.
• Medical products, medicines, motor vehicles for the disabled.
• Instruments and equipment for scientific research.
• Confiscated and ownerless valuables.
• Technological equipment together with spare parts.
• Public transport.
• Special vehicles.

Also, goods imported from the CIS countries (except Ukraine) are not subject to VAT.