BASIC CUSTOMS INSTRUMENTS Customs Tariff Bilateral Screening Chapter 29 Customs Union Presentation by Republic of Serbia Brussels, 3-4 June 2014
Content Customs tariff Tariff classification 2
Customs Tariff Customs Tariff Law ( Official Gazette of RS, No s 62/05, 61/07 and 7/09) prescribes: - Customs tariff as an integral part of the CT Law Article 1 - Duty rates Article 2 - Customs tariff nomenclature and right for Government to adopt the annual regulation for harmonization the CT nomenclature with the Combined Nomenclature Article 3 - The classification of goods Article 3a - Specific provisions for procedure with unassembled products or products in a disassembled state Article 4 3
Duty rates (Article 2) For the goods which are imported into the customs territory of the Republic of Serbia, the customs duty is calculated and collected by applying the customs rate of duty, which is set out in the column 4. of the Customs Tariff, on the customs value of the goods (ad valorem). Exceptionally, the goods in the column 4. of the Customs Tariff, which in addition to the ad valorem customs duty contain a specific minimum and maximum customs duty will have the latter applied in cases when the ad valorem is below the minimum value or conversely when it is higher than the maximum value (applicable only for cigarettes: 57.6% min 5.15 max 7.57 /1000 pieces) Duty rate ad valorem specific (min, max) 4
The rates specified in the Customs Tariff shall be applied to goods: originating from countries to which the most favoured nation (MFN) clause is being applied, or from countries applying MFN clause to goods originating from the Republic of Serbia. The rates specified in the Customs Tariff, increased by 70%, shall be applied for goods originating from other countries. For the import of the goods from the countries with which the Republic of Serbia has signed FTAs, the rates of duties provided for in those Agreements are applied. 5
Customs tariff nomenclature The term nomenclature (Article 3) encompass: 1. descriptions of Sections, Chapters, Subchapters, headings and subheadings along with their numerical designations; 2. Section, Chapter, Heading and Subheading Notes and Additional Notes; 3. General rules for the interpretation of the Customs tariff (GIRs). Current Serbian tariff nomenclature (CT2014) is harmonized with: o the latest amandments of the WCO Harmonized system (HS2012) and o the EU Combined Nomenclature for 2014. 6
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Тhe Regulation on harmonization of the CT nomenclature legal base Article 3 Paragraph 8 of the Customs Tariff Law The Government, through regulations, shall harmonize the nomenclature of the Customs Tariff, at the latest in November of the current year for the next year, with the Combined Nomenclature of the European Union that shall be applied in classification of goods in the Customs Tariff. This regulation includes also the rates of customs duties, i.e. amount of custom duty determined by this law, or by the signed Free Trade Agreements, and applied to the harmonized nomenclature. Regulation on harmonization of the Customs tariff nomenclature (annually since 2008) 8
Differences between CN2014 and CT Law Combined Nomenclature The Customs tariff Law Note Article 1 Article 1 Customs tariff as integral part Article 2 Article 6 Entering into force Part One Section I A - General Rules for the interpretation of the CN Part One Section I B - General Rules concerning duties Part One Section I C - General Rules applicable both to nomenclature and duties Part One Section II Special provisions A - Goods or certain categories of ships, boats and vessels and for drilling or production platforms Part One Section II Special provisions B - Civil aircrafts and goods for use in civil aircrafts Part One Section II Special provisions C - Pharmaceutical products Part One Section II Special provisions D - Standard rate of duty Annex of the CT Law Article 2 partly No agricultural component. Seasonal and special duties are prescribed in separate decisions. Article 2 partly - Serbia is not WTO member - Serbia is not WTO member National tariff headings for civil aircrafts with 0 duty rate. - Serbia is not WTO member Article 107 of the Serbian Customs Law Flat rate is 10% 9
Combined Nomenclature The Customs tariff Law Note Part One Section II Special provisions E - Containers and packing materials Part One Section II Special provisions F - Favorable treatment by reason of the nature of goods - - Part Two - Schedule of customs duties YES National tariff heading at 10 digit level. No agricultural component. Seasonal and special duties are prescribed in separate decisions. Part Three Section I - Tariff annexes Agricultural Annexes 1, 2 Part Three Section II - Tariff annexes List of pharmaceutics which qualify for duty free treatment; Annexes 3, 4, 5, 6 Part Three Section IV - Favorable tariff treatment by reason of the nature of goods; Annexes 8, 9, 10 - - - 10
Тhe Regulation on harmonization of the CT nomenclature for 2014 adopted by Government on 25 th November 2013 published in Official Gazette of the RS No 107/13 and 119/13 harmonizes the Serbian tariff nomenclature with: o EU Combined Nomenclature for 2014 (Regulation 1001/2013 - OJ EU L 290/13). o further amandments of the CN 2014 (Regulation: 1326/2013 - OJ EU L 334/14) New amandments of the CT2014 are in drafting process in order to implement further amandments of the CN 2014 (Regulations: 365/2014 and 366/2014 - OJ EU L 108/14 and 388/2014 OJ L 113/14) 11
Regulation incorporates duty rates prescribed by Customs Tariff Law and preferential rates according to FTAs (SAA EC, CEFTA, EFTA, Turkey, Russian Federation, Belarus and Kazakhstan). 12
Section No of tariff lines Average duty rate 2014 No of new tariff lines No of national tariff lines I 941 15,71 7 16 II 563 12,44 0 16 III 128 6,78 0 0 IV 837 21,23 2 9 V 239 1,87 1 6 VI 1209 2,84 2 91 VII 315 5,40 0 25 VIII 141 6,80 0 4 IX 226 3,49 2 22 X 205 4,74 0 19 XI 1164 12,36 0 6 XII 107 14,60 0 2 XIII 246 8,97 3 16 XIV 57 9,68 0 2 XV 1001 4,75 5 88 XVI 1612 5,39 4 449 XVII 298 5,99 6 46 XVIII 337 2,63 0 28 XIX 23 23,96 0 2 XX 218 9,68 0 10 XXI 7 5,00 0 0 total 9874 8,74 32 857 13
Values for MFN duty rates are from 0 57.6%. The overall average MFN customs duty rate in 2014 is 8.74%, for industrial goods 5.57% and for agricultural goods 16.37%. duty rate No 0 108 1 2958 3 483 5 1650 7 98 22 2% 25 1% 30 6% 57.6 0% 0 1% 1 30% 3 5% 8 324 10 1810 20 8% 12 22 12.5 14 15 515 18 205 20 816 22 218 18 2% 15 5% 12.5 0% 12 0% 10 18% 8 3% 7 1% 5 17% 25 57 30 595 57.6 1 total 9874 14
Differences between CN2014 and CT2014 Combined Nomenclature Customs Tariff 2014 nomenclature Note Chapter 4 Additional Note 1 - Not applicable for Serbia Chapter 9 Additional Note 1 - Not applicable for Serbia Chapter 10 Additional Note 2 - Not applicable for Serbia Chapter 11 Additional Note 1 - Not applicable for Serbia Chapter 17 Additional Notes 2, 4 and 7 - Not applicable for Serbia Chapter 18 Additional Note 1 - Not applicable for Serbia Chapter 19 Additional Note 1 - Not applicable for Serbia Chapter 21 Additional Note 4 - Not applicable for Serbia Chapter 27 Additional Note 5 last paragraph and 6 - Not applicable for Serbia Chapter 57 Additional Note 1 - Not applicable for Serbia Chapter 73 no Additional note Additional Note 1 Chapter 84 Chapter 87 Chapter 97 Additional Note 1 - collectors motor vehicles - Additional note for national tariff subheadings Additional notes for national tariff subheadings 1, 2,3 15
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Tariff classification Article 3a of the CT Law The classification of goods into the Customs Tariff represents determining the tariff position for such goods, in accordance with this law and provisions laid down on the basis of this law. The Classification opinions which are brought by the HS Committee of the World Customs Organization, in accordance with the Article 8. Paragraph 2 of the International Convention on the Harmonized Commodity Description and Coding System (HS System) adopted by the World Customs Organization, are obligatory for the application. Commission Regulations, concerning the classification of certain goods and published in the Official Journal of the European Union, are obligatory for the application. 17
Publication in Official Gazette of the RS All Commission Regulations concerning the classification of certain goods (currently in force) which are published in the Official Journal of the European Union since 1989 are published in Official Gazette of the RS in English and Serbian. Also classification opinions which are brought by the WCO HS Committee from 23 rd to 52 nd Session were published in Official Gazette of the RS in English and Serbian. 18
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 year current amend ments total 1989 21 4 25 1990 12 12 1991 18 2 20 1992 15 1 16 1993 12 1 13 1994 14 14 1995 9 1 10 1996 16 1 17 1997 10 1 11 1998 12 12 1999 14 1 15 2000 13 13 2001 14 14 2002 10 10 2003 10 10 2004 11 11 2005 12 12 2006 19 19 2007 18 18 2008 15 15 2009 20 1 21 2010 21 2 23 2011 47 1 48 2012 51 51 2013 47 1 48 2014 5 5 25 20 15 10 5 0 60 50 40 30 20 10 0 4 2 1 1 1 1 21 1 18 1 15 16 14 14 12 12 12 13 9 10 1 1 1 2 47 51 47 14 19 18 20 21 10 10 11 12 15 5
Explanatory Notes - Harmonized System Explanatory Notes version HS2007/HS2012 are translated in Serbian language but not published yet due to problems with copyright contract with WCO. - Explanatory notes to the Combined Nomenclature of the European Union, published in the Official Journal of the EU (C series) are neither translated nor published in Serbia. 20
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