Be in the Know. Tax & Legal February Special Customs Alert 0

Transcription

1 Special Customs Alert Be in the Know Tax & Legal February 2016 Special Customs Alert 0

2 Kazakhstan s Accession to the World Trade Organization On Certain Issues related to Kazakhstan s Accession to the World Trade Organisation. The accounting treatment of specific goods transported between EEU member countries A Protocol dealing with the import and circulation of goods in the EEU customs territory (Protocol) entered into force on 11 January 2016, as did a list of goods on which Kazakhstan applies import customs duties (the List) that are lower than EEU Common Customs Tariff (CCT) rates. As we previously mentioned, the List covers 1,347 commodity items, but is due to be increased to 3,512. Under the Protocol, Kazakhstan commits to create a special system (the System ) for recording goods in the List that are exported to other EEU member countries. The System compares details on goods in the List eligible for reduced rates against goods subject to CCT import duties. At the same time, the System should focus on shipping documents containing details on goods, quantities, customs declaration numbers, serial numbers in customs declarations and details on the payment of import customs duties (at reduced WTO rates or CCT rates). The existence of shipping documents in the System is a condition for goods to be exported to other EEU countries. If a Kazakhstan exporter-seller does not have shipping documents available when selling goods included in the List to other EEU countries, then carriers will be entitled to refuse to transport the goods in question. Furthermore, Eurasian Economic Commission Board Resolution 166 dated 15 December 2015 has amended the Instructions for completing commodity declarations, so that when declaring goods for customs under a single commercial batch, it will be important to note whether the importer is applying the reduced WTO rate for goods included in the above List. If an importer decides to use the reduced WTO rate on goods in the List, then they should be declared in a separate customs declaration. If so, for identification purposes, the number of the third element of a customs declaration should start with a 1. According to the new rules, taxpayers should issue electronic invoice when: selling goods included in the List that had previously been imported from outside the EEU based on a commodity customs declaration; Special Customs Alert 1

3 selling goods imported previously into Kazakhstan from other EEU countries (FEA CN code and the name of the goods are included in the List) and drawn up based on an application to import goods and pay indirect taxes; selling goods manufactured in Kazakhstan, whose FEA CN code and name are included in the List; exporting goods from Kazakhstan into another EEU country due to their transfer within a single legal entity, provided they are included in the List and have been already imported into Kazakhstan. If goods when initially imported from outside the EEU goods were subject to WTO rates, they may not be exported to other EEU countries. In this case, according to explanations from the tax authorities, any difference between WTO and CCT rates may not be paid. To export List goods on which duties have been paid according to CCT rates to other EEU countries, taxpayers should draft the following shipping documents and have them certified by the Kazakhstan state revenue authorities: a soft copy of an electronic invoice and commodity declaration if goods are imported from outside the EEU, or a soft copy of an electronic invoice and application to import goods and pay indirect taxes if goods are imported from other EEU countries, or a soft copy of an electronic invoice and original СТ-1 certificate of origin if goods were manufactured in Kazakhstan, but the name and code are included in the List. Goods registered at reduced WTO rates may circulate freely in Kazakhstan through the use of an electronic invoice, and may not be exported to the EEU. Special Customs Alert 2

4 Dear Clients, Please contact us should you have any questions regarding the application of Customs Union or Kazakhstan customs law. The Deloitte customs group provides services specifically designed to assist those performing foreign economic activities understand and apply statutory rules and regulations concerning the import and export of goods. We have a team of experts to work on our engagements who have both theoretical and practical customs knowledge, which, in our opinion, is the key to a quality and professional job. We are always glad to be of assistance! Special Customs Alert 3

5 Contacts: Almaty: Vladimir Kononenko Partner Tel.: +7(727) Fax: +7(727) Astana: Sholpan Dossymkhanova Manager Tel.: +7(717) Fax: +7(717) Atyrau / Aktau: Anthony Mahon Partner Tel.: +7(727) Fax: +7(727) anmahon@deloitte.kz Special Customs Alert 4

6 deloitte.kz About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see for a more detailed description of DTTL and its member firms. Please see for a detailed description of the legal structure of Deloitte, Kazakhstan. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte s more than 225,000 professionals are committed to becoming the standard of excellence. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication Deloitte TCF, LLP. All rights reserved.