Holding of exhibitions is an efficient instrument of developing international trade and economic, scientific and technical ties. Naturally, this also results in growing number of questions concerning customs clearance of demonstration articles and related products, as well as increasing number of proposals on simplification and speeding-up of custom duties in respect of these specific articles. "Nalogovyye i tamozhennyye vesti" newspaper editorial office prepared answers to questions, which often appear among participants of exhibitions.
Goods, which are being used as exhibit items or used for designing pavilions, stands or expositions at exhibitions are called exhibition goods. In international customs practice these articles are formalized in temporary import arrangements mode.
According to the Customs Code of the Republic of Uzbekistan (further CC) temporary importation (exportation) - regime during which usage of goods on customs territory of our country or beyond is allowed with full or partial exemption fr om the customs duties, taxes and without application of measures of economic policy to the goods. In particular, according to the Article 22 of the CC, placement of goods under regime of temporary importation is allowed upon authorization of the customs authority in case of submission of the obligation about return exporting of the goods, ensuring of payment of customs charges and identification of goods. This means that temporarily imported goods should be returned in an invariable condition, except for changes owing to natural deterioration or decrease under normal conditions of transportation and storage.
It should be noted that according to the Paragraph 3 of the Resolution by the Cabinet of Ministers "On conditions of the temporary importation of goods and means of transportation in the territory of the Republic of Uzbekistan" (dated 17 August 2004, No 399) following types of commodity are not allowed to be put under customs regime of temporary importation:
What is the order of issuing permission for placing exhibition goods under temporary importation mode?
And what requirements one has to follow in order to place them in this mode?
In accordance with the Provision on customs regulations of temporary importation (exportation)* (further Provision) permission for temporary importation (exportation) is authorized by the territorial customs authority to the person entitled with regard to the goods on the basis of objective and circumstances for this importation (exportation). To obtain this permission authorised person should hand in a written application in accordance with the Attachment No 1 of the Provision. It should contain the following dat a:
By the way, during handing in of an application on a large number of goods, their names can be given in a separate specification.
Application is reviewed within fifteen days. In case of favourable decision of an issue, the applicant receives the Permission for temporary importation (exportation) of goods according to the Attachment No 2 of the Provision.
In case of necessity the customs authorities may request additional documents and information. In this case time for consideration of an application is calculated from the day of their submission. In addition, the set term during which goods are placed under the temporary importation (exportation) mode, is provided in the Cargo Customs Declaration.
Conditions for placing goods under the customs temporary importation (exportation) mode are not complicated. This as Paragraph 16 of the Provision says: avowal of goods in accordance with established procedure; making provisions for their identification; customs clearance charge in necessary cases; handing in of permissions of authorised bodies if the goods are subject to their inspection.
Which normative documents regulate conditions of temporary importation of exhibition goods in Uzbekistan?
Conditions, which are of interest to you, are defined by the Rules of temporary importation of goods and means of transportation in the territory of the Republic of Uzbekistan (approved by the Resolution by the Cabinet of Ministers dated 17 August 2004, No 399, further Rules No 399). In particular, this regulatory legal act stipulates that these rules can be applied only towards person, which received permission of the customs authorities for temporary importation. And only upon authorization of the customs authority it is allowed to hand over temporarily imported goods to the other person, which undertakes a commitment to observe conditions of customs regime of temporary importation.
Can you please tell, whether duties are levied on exhibit items imported for participation at the exhibition?
Rules No 399 have as an attachment a List of goods, which are temporarily imported in the customs territory of the Republic of Uzbekistan with total exemption of customs duties and taxes. In particular, it contains a list of goods for demonstration at exhibitions, fairs, international meetings and other similar events (except for the exhibitions, which are being held in places of industrial or other commercial activity with an aim of selling imported goods), as well as auxiliary equipment and materials, intended for usage in these events. At the same time, term of the goods standing in the territory of the republic should not exceed one year.
By the way, the List also defines commercial samples, which are used solely with an objective of securing an order on these goods and unusable in other circumstances. Their identification is ensured through placing on them non-erasable marking, tearing, punching or damage in any other way. Number of samples should not exceed two specimen of each type of commodity, brand, model, article, style, colour and etc
I heard that customs officers apply information indicator to exhibition goods. How is this carried out and do they damage exhibit items?
Means of customs identification undoubtedly cannot damage exhibition goods. In accordance with the Provision on customs regulations of temporary importation (exportation)* the customs identification of temporarily imported (exported) goods is ensured through sealing, stamping, figure, letter or other type of labeling, identification signs, marking, sampling and probing, description of goods and means of transportation, planning, scale image, photo, and illustration processing, as well as other means of identification.
Means of customs identification can be altered, removed or eliminated only by the customs authorities of the Republic of Uzbekistan or by their approval, except for the cases of existence of real threat of irreparable loss or significant deterioration of goods and means of transportation. To do this, the customs authorities carrying out identification should be immediately notified about alteration, removal or elimination of identification means and correspondingly provided with evidences of this threat's existence.
Is it true that foreign partners during importation of promotional materials must not pay customs payments?
True, the List of goods, which are temporarily imported in the customs territory of the Republic of Uzbekistan with total exemption from the customs duties and taxes, also contain list of goods imported by foreign persons: promotional materials (catalogues, statement of prices and commercial catalogues, models, placards, boards, and brochures). However, it should be taken into account that for each recipient these materials should be imported in no more than two samples or their gross combination weight should not exceed 50 kilogrammes. Apart from this, having total exemption from the customs duties and taxes our foreign partners can import promotional films, promotional computer information-carrying mediums, which reveal features or objective of the product. However on the following conditions: these films and information-carrying mediums remain in disposal of the foreign person; they are related to foreign commodities, which are being offered by the foreign person; they are designed exclusively for showing to possible customers; they are imported in one copy and their usage is not intended for making any profit.
During preparation of the exhibition of our Russian colleagues we faced problems at the customs post concerning decoration of display units, because transportation documents on temporary importation of goods were not unified. If Russia has joined the Customs convention of ATA carnet for temporary importation of goods, then Uzbekistan has not yet joined this system. Because of this the Russian businessmen faced a number of problems, concerning declaration of goods and ensuring payment of customs duties, while ATA carnet replaces declaration and executes duty-free, tax-free and simplified form of registering exhibits during their importation.
I think that in order to protect participants of the foreign-economic activity, development of exhibition activity, attraction of investments it is necessary already today to raise the matter of speeding up the issue of Uzbekistan's joining the Istanbul convention on temporary importation before the customs authorities of our country.
One of the main requirements for elaboration of a new edition of the Customs Code is unification of customs regulations of the Republic of Uzbekistan with international norms and standards. In this context, reflection in the law draft provisions of the Convention "On temporary importation", which was signed in Istanbul in 1990, will allow to begin preliminary works for Uzbekistan's joining ATA carnet. In international practice this document is being used quite successfully for a long time. Therefore, there are good grounds for believing that problems connected with carrying out of customs procedures with regard to goods, intended for usage in exhibition events, will be met with understanding at the State Customs Committee.
We would like to know in brief the mechanism of applying ATA carnets. When these international documents will be implemented in our country
ATA carnets are applied in the following way: organization or firm, which is planning to temporarily import goods into another country, addressed the Trade Chamber or any other similar authorised national institution of its own country with an application of issuing ATA carnet. It consists of a number of sewed in sheets of various colour, which contain the quantity and cost of goods, aim of temporary importation, and a country of supposed exportation of goods. Yellow sheets are used during exportation and re-exportation from the country of temporary exportation, white sheets - during importation and re-importation to the country of temporary importation, blue sheets - for transit, green sheets - cover of ATA carnet. During each border crossing (including during transit through territories of other countries), the customs authorities of border crossing points make notes in ATA carnet, while keeping with themselves tear-off part of the corresponding sheet. This procedure will be finalised by the record of the customs office of the country, from which the goods were exported, on its return importing. After this ATA carnet will be closed and returned by the holder to the issuing body.
Since the Republic of Uzbekistan is not a participant of the Customs convention of ATA carnet, this document is not applied in the territory of our country.
* Approved by the Resolution of the State Customs Committee, which is ratified by the Ministry of Justice of the Republic of Uzbekistan on 14 October 2004 under No 1418.