THE CUSTOMS CODE OF THE REPUBLIC OF TAJIKISTAN

SECTION II CUSTOMS PROCEDURES

SUB SECTION 2 CUSTOMS REGIMES
_______________________________________________________________

CHAPTER 21 PROCESSING OF GOODS ON CUSTOMS TERRITORY

Article 173
Content of the Regime for Processing Goods on the Customs Territory

1. 'Processing of goods on customs territory' shall mean the customs regime under which foreign goods imported to the customs territory of the Republic of Tajikistan used for processing on the customs territory of the Republic of Tajikistan within the state time period (the time period of processing of goods) with full conditional exemption from customs duties and taxes and further export of processed products outside the customs territory of the Republic of Tajikistan.
2. All the prohibitions and restrictions set in accordance with normative legal acts of the Republic of Tajikistan shall be applied with respect to imported goods, placed under the customs regime for processing goods on customs territory.

Article 174
Terms of Placement of Goods under the Regime for Processing on Customs Territory

1. The processing of goods on the customs territory shall be allowed with the permission of the customs authority (Article 179).
2. The processing of goods on the customs territory shall be allowed if customs bodies may identify imported goods in the processed products (Article 175), except for the case when the customs regime is completed with the exportation of processed products resulted from processing of goods equivalent to those imported in accordance with Article 186 of this Code.
3. The foreign goods earlier placed under other customs regimes may be placed under the customs regime of processing of goods on the customs territory in case of compliance with requirements and conditions provided by this Code.
4. The Government of the Republic of Tajikistan shall have the right to define the cases when processing of goods on the customs territory is not allowed with respect to specific kinds of imported goods, and also establish quantity and cost restrictions on admission of imported goods to operations related to processing of goods on the customs territory for protection of the interests of domestic commodity producers in accordance with the customs regime for processing on the customs territory.

Article 175
Identification of Foreign Goods in Processed Products

1. For identification of imported goods in processed products g the following methods may be applied based on the nature of goods and operations performed on the processing of goods:
1) putting by the declarant, processor or a customs official, of seals, stamps, numbers and other markings on the imported goods
2) detailed description of imported goods, taking photographs, showing on the scale
3) matching of samples or specimens of imported goods against the processed products
4) using serial numbers and other markings of the producer of imported goods.
2. Applicability of the declared method of identification of imported goods for processing of goods on the customs territory in processed products shall be established by the customs authority given the nature of goods and operations performed for goods processing.
3. At the request of the applicant and with the contest of the customs authority the said identification for customs purposes may be provided through investigation of submitted detailed information on raw materials, materials and components that are used in production and also on technology of production of processed products or through execution of the customs control when performing operations on processing of goods.

Article 176
Operations for Processing of Goods on Customs Territory

Îperations for the processing of goods under the customs regime on the customs territory shall include:
1) actual processing and re-processing of goods
2) production of new goods, including mounting, assembling or dismantling of goods
3) repair of goods, including its restoration, replacement of components, restoration of their consumption properties
4) processing of goods, which facilitate or simplify the production of products, even when these goods are wholly or partially used in the course of processing.

Article 177
Time Limit for Processing of Goods on Customs Territory

1. The time limit for processing on customs territory shall be determined by the declarant in agreement with the customs authority and may not exceed two years.
2. The time limit for processing of goods on the customs territory shall be determined based on the duration of the processing of goods and time necessary for disposal of the processed products.
3. If the person who obtained a permit for processing and who without violation of requirements and provisions established by this Article cannot complete the customs regime within the given term under the reasons beyond his control, the initially set time limit for processing of goods shall be extended under a well reasoned request of the applicant who obtained the permit for processing, within the time limit established by Paragraph 1 of Article.
4. The time limit for processing of goods shall start from the day of their placement under the customs regime for processing of goods on the customs territory, and in case of importing goods in lots - from the day of the placement of the first lot.

Article 178
Output Norms for Products of Processing of Goods on Customs Territory

1. The norm of output of processed goods (quantity and percentage of processed goods received as a result of processing of a definite number of imported goods) shall be determined by the declarant in agreement with the customs authority based on the actual conditions, under which the goods are processed, except for the case provided by the Paragraph 3 of Article.
2. In coordination of the norm of output of processed goods, the customs authority shall take into account the conclusions of expert organizations (including customs laboratories), based on the specific technological process.
3. If operations on processing of goods having practically constant characteristics are usually performed in accordance with specific technical conditions and lead to the output of processed products of unchanged quality, the competent authorities, authorized by the Government of the Republic of Tajikistan, shall establish standard norms of output of processed products for customs purposes.
4. The description, quality and quantity of processed products shall be finally determined after the agreement of the norms of output of processed products.

Article 179
Permit for Processing of Goods on Customs Territory

1. Any interested domestic person, including the ones who are not directly engaged into the processing of goods, may obtain a permit for processing of goods on the customs territory.
2. The permit for processing of goods shall be issued by the customs authority based on the application of the person concerned.
3. The permit for processing of goods shall include:
1) description, quality and quantity of goods intended for processing, and their processed products
2) operations on processing of goods and methods of their performance
3) the norm of output of processed products
4) methods of identification of imported goods in processed products
5) time limit for processing of goods
6) other information determined by the authorized body on customs affairs, and necessary for customs purposes.
The form of the permit for processing of goods shall be determined by the authorized body on customs affairs.
4. The permit for processing of goods shall be valid within the set time limit for processing of goods.
5. The person, who obtained the permit for processing of goods, shall have the right within its validity time limit to transfer it to another domestic person by getting a written permission of the customs authority (Article 61) provided that this person undertakes responsibilities for further fulfillment of requirements and provisions set by Articles 173-180 of this Code . At that, the person who obtained the permit for processing of goods, shall submit to the customs authority the report on fulfillment of requirements and provisions determined by this Chapter for the period when the goods were used under the customs regime of processing of goods on the customs territory and also pay customs duties, taxes if within this period the events occurred arising the obligation to pay customs duties, taxes in accordance with this Code.
The person to whom the permit for processing of goods is transferred shall undertake responsibilities for fulfillment of requirements and provisions set by this Chapter, and register all the necessary documents under his name if the observance of the customs regime is provided by guarantees (Article 160). This person shall enjoy the rights and bear responsibilities that are determined by this Code with respect to the person who obtained a permit for processing of goods, from the day the customs authority adopted the decision to transfer the permit for processing of goods.
6. The permit for processing of goods may be submitted before as well as after the import of goods on the customs territory of the Republic of Tajikistan if the applicant follows the requirements and provisions determined by this paragraph.
7. The person who obtained a permit for processing of goods shall bear the responsibility for payment of customs duties and taxes in accordance with the paragraph 2 of Article 350 of this Code.

Article 180
Procedure for Issue of Permit For Processing of Goods

1. To obtain the permit for processing of goods the person shall submit to the customs authority the application containing the information as follows:
1) details of the applicant
2) details of the person (persons) directly engaged into the operations of processing of goods
3) goods intended for processing, processed products, and also wastes and remains
4) operations on processing of goods, methods and terms of their completion
5) location of manufacturing capacities used for processing of goods
6) norm of output of processed products
7) methods of identification of imported goods in processed products
8) replacement of imported goods with equivalent goods
9) time limit for goods processing.
2. The form of application and the form for presenting the data shall be established by the authorized body on customs affairs.
The documents confirming the declared information shall be attached to the application.
3. The customs authority shall consider the application and attached documents within 30 days from the day of their acceptance. Within this period the customs authority shall verify the compliance with the set requirements and provisions and also shall take a decision on agreement of the declared norms of output of processed products and the time limit for processing of goods.
The customs authority shall have the right to request from third parties and also from government bodies proofs stated in Paragraph 1 of this Article. The said persons shall be obliged to submit the requested documents within 10 days from the moment of receiving the request. At that, the customs body shall be entitled to extend the period of consideration of the application, but no more than two months from the moment of its receipt.
A permit for processing of goods and the documents attached thereto shall be registered by the authorized body on customs affairs. In case of non-compliance with the stated requirements and provisions the authorized body on customs affairs shall have the right to refuse the issuance of the permit for processing of goods.
4. The customs declaration on placement of goods under the customs regime of processing of goods on the customs territory is used as an application for processing of goods provided that when importing goods and further exporting of the processed products they are submitted at the same time and declared to the same customs authority, if :
1) the goods were placed under the customs regime of processing of goods on the customs territory for repair, including the repair free of charge
2) the customs value of goods placed under the customs regime of processing of goods on the customs territory does not exceed 600 fold of the minimum monthly wage determined by the law
3) the residues of earlier imported goods are placed under the customs regime of processing of goods on the customs territory in accordance with paragraph 1 of Article 184 of this Code.
5. If the customs declaration is used as an application, the time period of its consideration shall not exceed the period of examination of the customs declaration, set by Paragraph 1 of Article 400 of this Code.
6. The customs authority shall refuse to issue a permit for processing of goods only in the case if, when lodging the application, the applicant does not follow requirements and provisions set by Articles 173-180 of this code, and also in case of customs authority takes a decision to refuse to agree the declared norms of output of processed products and the time limit of products processing.
The refusal of the customs authority to issue the permit for processing of goods shall be justified and motivated. The applicant shall be notified about the refusal to issue the declared permit in a written form.

Article 181
Withdrawal of Permit for Processing of Goods

1. The issued permission for processing of goods shall be withdrawn by the customs authority if the placement of goods under the customs regime of processing of goods on the customs territory shall not be allowed in accordance with normative legal acts of the Republic of Tajikistan adopted based on Paragraph 4 of Article 174 of this Code.
2. The decision on withdrawal shall enter into effect from the day the relevant act of the Government of the Republic of Tajikistan comes into effect.
3. In case of withdrawal of the permit for processing of goods, placement of goods under customs regime of processing of goods on the customs territory in accordance with the withdrawn permission shall not be allowed and with respect to the goods placed under customs regime of processing of goods on the customs territory prior to the withdrawal of the permission the said customs regime may be completed in accordance with this Chapter.
4. The form of withdrawal of the permission for processing of goods shall be established by the authorized body on customs affairs.

Article 182
Exemption of Processed Products from Export Customs Duties and Application of Prohibitions and Restrictions with respect to the Processed Products

1. Export customs duties shall not be paid when exporting processed products from the customs territory of the Republic of Tajikistan.
2. All the prohibitions and restrictions set in accordance with normative legal acts of the Republic of Tajikistan shall be applied to exported processed products.

Article 183
Wastes

1. Wastes, resulting from processing of goods on the customs territory shall be subject to customs duties, taxes as if these wastes were imported to the customs territory of the Republic of Tajikistan in this state, except for the cases when these wastes are exported from the customs territory of the Republic of Tajikistan or processed until the condition unsuitable for their further commercial use on the customs territory of the Republic of Tajikistan and cannot be restored by efficient economic method.
The wastes that are subject to customs duties and taxes shall be declared.
2. For the purposes of collection of customs duties and taxes wastes shall be deemed as goods imported to the customs territory of the Republic of Tajikistan.
The customs value of wastes is determined in accordance with the tax legislation of the Republic of Tajikistan taking into account the specific details set by the Paragraph 3 of Article.
3. If it is impossible to determine the customs value of wastes under the method based on the transaction value of imported goods, the transaction value of identical goods or the transaction value of similar goods in accordance with the legislation of the Republic of Tajikistan, the customs value of wastes shall be amounted to one of the following values:
1) sale price of estimated wastes being sold for the first time on the territory of the Republic of Tajikistan to the buyer being non- related to the parties of the transaction on processing of goods
2) sale prices of goods identical or similar to estimated wastes , if these goods are produced as a result of similar processing under customs regime of processing of goods on the customs territory and if it is the price of their first sale on the customs territory of the Republic of Tajikistan to the buyer being non- related to no one parties of the transaction on processing of goods
3) prices of the deal with goods identical or similar to estimated wastes, sold for export to the Republic of Tajikistan and imported to the Republic of Tajikistan at the same, or nearly the same time of the process of declaration of estimated wastes
4) realization price on the domestic market of the Republic of Tajikistan between non-related sellers and buyers of goods, being identical or similar to estimated wastes, without taxes subject to payment in the Republic of Tajikistan in realization of goods.

Article 184
Residues

1. Residues of goods, placed under the customs regime of processing of goods on the customs territory, may be exported from the customs territory of the Republic of Tajikistan without paying export customs duties or placed under customs regime of processing of goods on the customs territory.
2. The residues that are not exported are subject to payment of import customs duties, taxes as if they were imported to the customs territory of the Republic of Tajikistan in this state. The residues that are subject to payment of customs duties and taxes shall be declared.
The amount of customs duties, taxes shall be determined based on size of quantity or cost part of residues proportionate to the amount of customs duties, taxes that would be subject to payment if the goods, processing of which resulted in these residues, were released for free circulation on the day of placement under customs regime of processing of goods on customs territory

Article 185
Termination or Suspension of Customs Regime

1. Processed products shall be exported outside the customs territory of the Republic of Tajikistan or shall be placed under a different customs regime before the expiration of the time limit of processing established in compliance with Article 177 of this Code.
2. When processed products are exported outside the customs territory of the Republic of Tajikistan in several batches, the final verification of the quantity of processed products, mentioned in the permit for processing of goods (Article 179) may be conducted on a periodic basis after the export of the processed products, but not less than once in three months, and no later than thirty calendar days from the date that the last batch of goods was exported. If as a result of this verification, the person who got the permission for processing of goods on the customs territory, should pay customs duties, taxes, the interests thereof are not charged f they are paid within 10 working days from the moment the customs authority adopted a decision in written form regarding the necessity to payment these duties and taxes. The customs authority shall forward notification to the person who obtained the permission for processing of goods, to make a payment of customs levies no later than one day following the day on which the decision was adopted.
3. The customs regime of processing of goods on the customs territory may be completed by release of goods and (or) their processed products for free circulation or their placement under different customs regime in compliance with requirements and provisions set by this Code.
4. In release of imported goods and (or) the processed products for free circulation
the amounts of customs duties, taxes, that would be subject to payment if the imported goods were declared for release for free circulation on the day of placement of goods under the customs regime of processing of goods on the customs territory, as well as interests thereof in the amounts established by the tax code of the Republic of Tajikistan, as if the payment of the said amounts was postponed from the day of placement of the goods under the customs regime of processing goods on the customs territory.
5. At the well-reasoned request of the person concerned the effect of customs regime
of processing of goods on the customs territory may be suspended in the following cases:
1) when placing processed goods in customs warehouse in accordance with paragraph 3 of Article 217 of this Code
2) when placing processed products under other customs regimes not stipulating release of goods for free circulation.
6. The suspension of the effect of customs regime of processing of goods on the customs territory results in suspension of the time limit of processing of goods (Article 177). The interests, which are charged and paid according to the provision of this Article, shall not be charged and paid for the period of suspension of the effect of customs regime of processing of goods on the customs territory.
Actions during the period of suspension of the effect of customs regime of processing of goods on the customs territory are not allowed.
7. The customs regime of processing of goods on the customs territory may be also completed with export of imported goods in unchanged condition (re-export).

Article 186
Equivalent Compensation

1. With the permission of the authorized body on customs affairs, foreign goods, placed under the regime for processing on the customs territory, may be replaced with other goods, including domestic ones, if they match in description, quality and technical specifications to the foreign goods (equivalent compensation).
2. The products resulting from the processing of equivalent goods shall be deemed as processed products resulting from the processing of imported goods, in compliance with the provisions of this Chapter.
3. For the customs purposes equivalent goods shall have the status of imported goods, and imported goods shall have the status of the goods that had equivalent goods.
4. If equivalent compensation is permitted, export of processed goods is allowed prior to the import of goods for processing of goods on customs territory provided the permit for processing is available. Customs authorities establish the time limit for import of these goods.

Back>>