Republic of Serbiap Chapter 33 Financial and budgetary provisions Traditional Own Resources
СONTENT: 1. Legislative framework 2. Institutional framework 3. Customs debt and collection of import duties 4. Guarantee for the existing or the potential debt 5. Repayment or remission of import duties 6. Control mechanisms 7. Statistical data 8. Planned activities 2/40
1.LEGISLATIVE FRAMEWORK COLLECTION OF REVENUE ON THE BASIS OF IMPORT CUSTOMS DUTIES NATIONAL LEGISLATIVE FRAMEWORK The Customs Law (Art.225 Art.279 ); The Regulation on the Customs-Approved Treatment of Goods (Art.424 Art.436; Art. 590-647); Rulebook on Form, Content, Manner of Submitting and Completing Declaration and Other Forms Used in the Customs Procedure; Law on General Administrative Procedure; Law on the Budget of the Republic of Serbia; Rulebook on Terms and Manner of Keeping Public Revenue Accounts and Allocation of Funds in These Accounts 3/40
1.LEGISLATIVE FRAMEWORK - COLLECTION OF REVENUE ON THE BASIS OF IMPORT CUSTOMS DUTIES EU LEGISLATIVE FRAMEWORK Community Customs Code (Art. 189 Art.242 ) Council Regulation (EEC) No 2931/92 of 12 October 1992 establishing the Community Customs Code Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (Art. 857 Art.912; Annex 111) ); Council Regulation (EC, Euratom) No 1150/2000 of 22 May 2000 implementing Decision 94/728/EC, Euratom on the system of the Communities' own resources 4/40
1. LEGISLATIVE FRAMEWORK - COLLECTION OF REVENUE ON THE BASIS OF IMPORT CUSTOMS DUTIES Provisions of the Customs Law governing the area of customs debt and calculation of import duties are harmonized with the relevant provisions of CCC, with the exception of provisions referring to: - generally accepted time limit for entering in the accounts of transactions related to the Budget of the Republic of Serbia, which is 2 days from the day of transaction; - some of the provisions not being transposed to the Customs Law (regulated by other Laws); - some of the provisions relevant for EU member states. Provisions of the Regulation on Customs-Approved Treatment of Goods that regulate the area of the customs debt are harmonized with the relevant provisions of the European Regulation, with the exception of the provisions: - relevant for EU member states and - Annexes 112 and 113 which are not yet applicable in Serbia. 5/40
2. INSTITUTIONAL FRAMEWORK Competent Authority responsible for customs policy: Ministry of Finance of the Republic of Serbia, Customs System and Policy Sector: - Customs System Section - Customs Policy Section The Ministry of Finance performs, among other things, public administration tasks related with: - customs system, customs tariffs, non-tariff barriers and free zones. 6/40
2. INSTITUTIONAL FRAMEWORK ORGANIZATIONAL CHART OF THE MINISTRY OF FINANCE Ministry of Finance Tax Administration Public Debt Administration Treasury Administration Customs Administration Administration for the Prevention of Money Laundering Free Zones Administration Tobacco Administration A D M I N I S T R A T I O N Group for Internal Audit Unit for Publicity of the Ministry s Work Group for Irregularities and Fraud in the handling of EU funds State secretaries (2) The Minister s Cabinet Division for Budget Inspection Unit for Public Procurement System Division for State Aid Control Secretariat Legal Affairs Division Human Resources Division Technical and Operational Affairs Division Financial Affairs Unit 1) Macroecon. and Fiscal Analysis and Forecasting Sector 2) Budget Sector 3) Fiscal System 4) Customs 5) Financial System 6) Internal Control and Sector System and Policy Sector Internal Audit Sector Sector 7) National Fund Sector for EU Funds Management 8) Sector for Contracting and Financing of Programs from EU Funds 9) Property and Legal Affairs Sector 10) International Cooperation Sector 7/40
2. INSTITUTIONAL FRAMEWORK ORGANISATIONAL CHART OF THE CUSTOMS ADMINISTRATION BUREAU OF DIRECTOR GENERAL DIRECTOR GENERAL AUDIT DEPARTMENT INTERNATIONAL CUSTOMS COOPERATION and EU INTEGRATION DEPARTMENT DEPUTY DIRECTOR GENERAL INTERNAL AFFAIRS DEPARTMENT CUSTOMS AFFAIRS AND CUSTOMS PROCEDURES DIVISION 15 CUSTOMS OFFICES TARIFF AFFAIRS DIVISION HUMAN RESOURCES AND GENERAL AFFAIRS DIVISION INVESTMENTS, FINANCIAL AND LEGAL AFFAIRS DIVISION ENFORCEMENT DIVISION INFORMATION AND COMMUNICATION TECHNOLOGIES DIVISION 8/40
2. INSTITUTIONAL FRAMEWORK COMPETENCE FOR IMPLEMENTATION: Ministry of Finance, Customs Administration Investments, Financial and Legal Affairs Division Revenue Collection Department Scope of work: Collection of revenues from customs and other import duties and interests, their distribution in the prescribed budget and extra budgetary accounts. 9/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES Customs Law of the Republic of Serbia (Art. 5): AN OBLIGATION ON A PERSON TO PAY THE AMOUNT OF IMPORT/EXPORT DUTIES Import duties: -customs and other duties -measures of agricultural policy Export duties: -customs and other duties -measures of agricultural policy 10/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES The Decision on Determining Agricultural and Food Products Imported Subject to Special Duty and on the Amount of Special Duty ( Official Gazette of the Republic of Serbia No. 136/2014) applies to: raw sugar (1701121000, 1701129000, 1701131000, 1701139000, 1701141000 and 1701149000); white sugar (1701991000) and invert sugar (1702909500). The Decision on Seasonal Customs Duties on Import of Certain Agricultural Products ( Official Gazette of the Republic of Serbia No. 27/10 and 97/2011); Customs Tariff Nomenclature is harmonized with the Combined Nomenclature of EU (Customs Tariff Law ( Official Gazette of the Republic of Serbia", No. 62/05; 61/07; 05/09). 11/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES CALCULATION OF CUSTOMS DEBT SHALL BE DETERMINED: In accordance with the regulations and based on the data accessible to the customs authority. TIME LIMITS FOR PAYMENT OF CUSTOMS DEBT: Regular payment: within 8 days from the date of receipt of notification; Periodic payment: no later than 30 days from the date on which customs debt was entered in the accounts; Deferred payment: 30 days from the day on which the amount of duty is entered in the accounts. WHERE THE AMOUNT OF CUSTOMS DEBT HAS NOT BEEN PAID WITHIN: 8 days from the date of receipt of notification, the customs authority shall charge interest on arrears. 12/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES IT SUPPORT ISCS (Information System of the Customs Administration) shall ensure: IT processing of all documents based on which the collection of revenues is carried out (calculated customs debt, interest) as well as subsequent revenue collection (decisions from the administrative procedure). Verification of SAD boxes correctness, creation of calculation of customs debt and printing of customs bills for the purposes of their delivery. Structure of customs debt calculation (customs bill) specifying: the amounts for each calculated duty (SAD box 47); total amount to be paid according to the customs bill and reference number. Detailed information on each duty for every description in SAD. 13/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES AN OVERWIEV OF CUSTOMS BILL DETAILS OF THE CUSTOMS BILL Customs Post of calculation Date of calculation No. of customs bill The amounts of individual calculated duties Total amount of customs bill Customs debtor details Account number to which the payment should be made, with reference number Notification date Indicated payment deadline - 8 days 14/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES AN OVERWIEV OF CUSTOMS BILL AS PER THE SAD within ISCS OVERWIEV DETAILS: Customs debtor TIN (Tax Identification Number) No. of customs bill Total amount to be paid Amounts per duties Customs bill maturity date Payment made (YES/NO) SAD identification Type of procedure Method of payment Guarantee applicant TIN Guarantee ID 15/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES 16/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES BUDGET ACCOUNTS TO WHICH COLLECTED IMPORT DUTIES ARE PAID BY CAS 840-715121843 - 89 41601 customs, duties on import of agricultural products 840-742221843 - 57 27013101685102 republic administrative fees 840-714113843 - 17 41601 VAT on import of goods 840-717121843 - 24 41601 excise duty on import of motor fuel 840-717122843 - 31 41601 excise duty on import of diesel fuel 840-717123843 - 38 41601 excise duty on import of fuel oil 840-717124843 - 45 41601 excise duty on import оf other oil derivates 840-717125843 - 52 41601 excise duty on import of liquified petroleum gas 840-717126843 - 59 41601 excise duty on import оf leaded petrol 840-717127843 - 66 41601 excise duty on import of unleaded petrol 840-717128843 - 73 41601 excise duty on import of gas oils 840-717129843 - 80 41601 excise duty on import of kerosene 840-717141843 - 67 41601 excise duty on import of additives of motor fuel 840-717142843 - 74 41601 excise duty on import of additives for gas oli 840-717143843 - 81 41601 excise duty on import of additives for kerosene 840-717144843 - 88 41601 excise duty on import of additives for tng 840-717152843 - 47 41601 excise duty on import of biofuel and bioliquid 840-717222843 - 52 41601 excise duty on import of cigarettes 840-717223843 - 59 41601 excise duty on import оf other tobacco products 840-717321843 - 66 41601 excise duty on import of beer 840-717322843 - 73 41601 excise duty on import of spirit and brandy(vinjak) 840-717326843 - 04 41601 excise duty on import of spirits made of fruit 840-717327843 - 11 41601 excise duty on import of spirits made of grain 840-717324843 - 87 41601 excise duty on import of spirituous beverages 840-717323843 - 80 41601 excise duty on import of vine 840-717325843 - 94 41601 excise duty on import of оther spirituous beverages 840-717411843 - 17 41601 excise duty on import of refreshing non-alcoholic beverages 840-717511843 - 38 41601 excise duty on import of coffee 840-717512843 - 45 41601 excise duty on import of unroasted coffee 840-717513843 - 52 41601 excise duty on import of roasted coffee 840-717514843 - 59 41601 excise duty on import of coffee husks/skins 840-717515843 - 66 41601 excise duty on import of espresso/concentrates of coffee 840-745121843 - 84 41601 - other budget revenues 17/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES MONITORING OF MESSAGE PROCESSING within ISCS ON MADE PAYMENTS DESCRIPTION OF MONITORING PROCESS An overview of received XML messages оn payments made by Treasury Administration Overview of all phases of XML message processing Error identification option Problem elimination option 18/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES INQUIRY ON THE DETAILS OF EACH INFLOW/OUTFLOW FROM THE RECORDED CAS ACCOUNT INQUIRY DETAILS: Statement no. Type of transaction (Inflow/Оutflow) Date of inflow/outflow Inflow/Оutflow status Payee details Payment reference number Inflow/Оutflow amount Purpose of remittance Reference number model 19/40
3. CUSTOMS DEBT AND COLLECTION OF IMPORT DUTIES AN OVERWIEV OF FUNDS DISTRIBUTION INTO THE RECORDED ACCOUNTS DISTRIBUTION DETAILS: Date and time of distribution Amount of the total distributed funds For each group of duties: o Duty code o Duty name o Budget account in which funds are distributed o The amount of distributed funds 20/40
4. GUARANTEES FOR THE EXISTING AND THE POTENTIAL DEBT Security to cover customs debt may be provided by: - cash deposit or - Bank guarantee. The debtor or a person who may become liable for that debt may provide the security. Guarantors: - commercial banks established in the Republic of Serbia; - other financial service providers as well. The provided bank guarantee shall be activated if the debtor fails to pay customs debt for the goods removed from customs supervision, within 8 days from the day of notification. 21/40
4. GUARANTEES FOR THE EXISTING AND THE POTENTIAL DEBT The provided bank guarantee may be withdrawn in case of: - settling the customs debt incurred within the validity period of the specific guarantee. Provision of new guarantee is conditional on: settling of customs debt as per the previous guarantee or in case new guarantee takes over the debts of the previous guarantee. Bank guarantees are registered in the information system: where they receive their ID number specified in the declaration and where use and utilization of bank guarantees is being monitored online. Release of guarantee: following the collection of customs debt, or because of the circumstances due to which customs debt can no longer be incurred. 22/40
4. GUARANTEES FOR THE EXISTING AND THE POTENTIAL DEBT STATISTICS ON RECORDED GUARANTEES* 23/40
4. GUARANTEES FOR THE EXISTING AND THE POTENTIAL DEBT WE CAN DISTINGUISH BETWEEN THE FOLLOWING GUARANTEES FOR PAYMENT OF CUSTOMS DEBT: INDIVIDUAL and COMPREHENSIVE GUARANTEE. FOR THE PROCEDURES: 1. RELEASE OF GOODS FOR FREE CIRCULATION, which includes: o release of goods for free circulation o temporary import procedure o inward processing o processing under customs control and o outward processing; 2. CUSTOMS WAREHOUSING 3. TRANSIT 24/40
4. GUARANTEES FOR THE EXISTING AND THE POTENTIAL DEBT The following guarantees are used in TRANSIT: Pursuant to the Regulation, COMPREHENSIVE guarantee, covering a number of transit operations where the principal has been authorized to use such a guarantee by the Customs Administration, shall be either: - comprehensive guarantee without reduced amount, - comprehensive guarantee for a reduced amount (50% or 70%), - comprehensive guarantee waiver. INDIVIDUAL guarantee: 2 - Individual guarantee by guarantor, 4 - Individual guarantee in the form of vouchers, 9 - Individual guarantee with multiple usage. 25/40
4. GUARANTEES FOR THE EXISTING AND THE POTENTIAL DEBT Total of valid comprehensive guarantees*, until 10.02.2015: 322, as follows: 26/40
5. REPAYMENT AND REMISSION OF IMPORT DUTIES Repayment of customs debt shall be granted: upon submission of an application by the person concerned, or on initiative of customs authority, within a period of three years from the date on which the amount of the debt was communicated to the debtor; in case of returning of goods abroad, because they are defective or do not comply with the terms of the contract, within twelve months from the date on which the amount of such debt was communicated to the debtor. Debtor is entitled to: total refund of customs debt; partial refund of customs debt; to be waived the collection of all or part of the debt based on decision of the customs authority; where it is established that, when it was paid, the customs debt was not legally owed. 27/40
5. REPAYMENT AND REMISSION OF IMPORT DUTIES REPAYMENT PROCEDURE: - Submission of an application by the person concerned, to the customs office of entry in the accounts; - Customs office of entry in the accounts shall communicate the application to the decision-making customs authority making the decision of the first instance, and to the Customs Administration Headquarters implementing the decision on the repayment or remission. An appeal may be lodged by the person concerned to the second instance authority; - Customs Administration Headquarters shall communicate the decision to the Treasury Administration, which shall, on the basis of instruction and the decision, perform repayment of the customs debt from the relevant Budget payment account. 28/40
5. REPAYMENT AND REMISSION OF IMPORT DUTIES 29/40
3. CONTROL MECHANISMS Council Regulation(EC, Euratom) No 1150/2000 Art. 17(5) Post-Clearance Audit Department Customs Laboratory Risk Analysis and Risk Management Department Anti-smuggling Department Customs Investigations Department Art. 18(2) Audit Department 30/40
6.CONTROL MECHANISMS POST-CLEARANCE AUDIT DEPARTMENT - 40 o Post-Clearance Audit Department (CAS Headquarters) o 4 regional centers : Belgrade, Novi Sad, Niš and Kraljevo; Responibilities: Post-clearance examination of customs declarations and accompanying documentation, as well as the control of goods; Post-clearance examination of import - export operations and other activities of economic operators in customs procedures; Record keeping and updating of information on the controlled economic operators. 31/40
6.CONTROL MECHANISMS CUSTOMS LABORATORY 19 o Classification of Goods Section - Belgrade; o Classification of Goods Group - Niš; o Classification of Goods Group Novi Sad; o Analitics Group. Responsibilities: chemical and technological analyses of samples of goods; preparation of written reports on tariff classification of goods; provision of technical assistance to CAS internal units within the scope of its activities. 32/40
6.CONTROL MECHANISMS RISK ANALYIS AND RISK MANAGEMENT DEPARTMENT 22 -Analytics and Control Targeting Section (RM at national level) and -Regional Risk Management Section Risk analysis is IT supported. Responibilities: management of risk and monitoring the tendency of new violations of regulations; organization and coordination of activities in the identification of appropriate objectives in the field of most expected risk; cooperation with other internal units to ensure current data. 33/40
6.CONTROL MECHANISMS THE ANTI-SMUGGLING DEPARTMENT-82-9 Sections: Belgrade, Novi Sad, Subotica, Vršac, Kraljevo, Niš, Užice, Water Transport Customs Control Section and Technical Support Section. Responsibilities: -Planning, initiating, organizing and coordinating operational control measures; -Monitoring and combating smuggling, proposing of appropriate actions; -Studying and analyzing methods of smuggling, submission of information to customs offices in order to improve the control; -Proposing and organizing of measures for strengthening control, including the inland control. 34/40
6.CONTROL MECHANISMS THE CUSTOMS INVESTIGATIONS DEPARTMENT-21 o 4 Customs Investigations Groups in Belgrade, Novi Sad, Kraljevo and Niš o Data Analysis and Customs Investigations Coordination Group. Responsibilities: Organizing and implementation of preventive, current and subsequent control; Exchange of information with foreign customs administrations; Collecting and processing of information about the various forms of severe violations of customs regulations in goods and passenger traffic. 35/40
6.CONTROL MECHANISMS AUDIT DEPARTMENT - 8 Directly responsible to the Director General of CAS. Responibilities: supervision of customs offices and Headquarters work by the internal audit system (IAS); drafting of minutes and information оn facts of the matter established during supervision; operational planning, organizing, implementing and reporting on the results of internal audit. 36/40
7. STATISTICAL DATA 37/40
7. STATISTICAL DATA Customs duties share in the total distributed RS budget revenues (%)* 38/40
8. PLANNED ACTIVITIES Preparation of Guidelines for implementation of TOR system Establishment of an IT system and procedures for managing А and B accounts (IPA) Training of customs officers (IPA, CUSTOMS 2020, TAIEX) Establishment of reporting system Access to the OWNRES and WOMIS web applications 39/40
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