Chapter 1 Customs System and the Laws Regulating Customs Operations

Legal regulation of the customs relations in the Republic of Belarus derives from the law of the Customs Union, the domestic laws, the principal source being the law of the Customs Union of the Eurasian Economic Community（Customs Union）, which is based on the Treaty on the Creation of Common Customs Territory and Formation of the Customs Union dated 6 October, 2006..he Eurasian Economic Community was established by three member states:the Republic of Belarus, the Russian Federation and the Republic of Kazakhstan for the purpose of trade and economic integration. It was aimed at creating a common customs territory which would provide a uniform legal regime for trade with third countries.

The Customs Union can be defined as an international organisation, consolidating the territories of the member states, eliminating the customs borders and customs barriers between them, facilitating the free circulation of the goods, with no taxes or administrative limitations to hinder mutual trade. The main advantage of a customs union is that its creation leads to uniformity of law among its member states and in a sense the creation of one legal entity as far as trade relations with the outside world are concerned.

The principles of the Customs Union are:

1. free circulation within the territory of the Customs Union of the goods, originating from the member states of the Customs Union released for domestic consumption in any member state of the Customs Union;

2. regulation of customs legal relations at the level of supranational legislation;

3. priority of the Union legislation, over national legislation; and

4. elaboration of uniform customs rules and procedures for goods imported into the territory of the Customs Union and measures of tariff and non-tariff regulation.

The principal statute that regulates customs in the Customs Union is the Customs Code..his Code provides for the regulation of legal relations connected with the movement of goods through customs borders of the Customs Union, their transportation across the unified customs territory of the Customs Union under the customs control, temporary storage of goods, customs declaration, release and use in accordance with the customs procedures, implementation of the customs control, payment of customs duties, as well as the relationship between the customs authorities and the entities exercising the ownership, usage and disposition rights regarding specified goods（Article 1 of the CC）.

According to Article 3 of the Customs Code, the customs legislation of the Customs Union consists of:（1）the Customs Code;（2）international agreements of the member states of the Customs Union regulating the customs legal relationships within the Customs Union; and（3）decisions of the Commission of the Customs Union regulating the customs legal relationships within the Customs Union, taken in accordance with the Customs Code and international agreements of the Customs Union member states..s a result, the legal basis of the customs in the Republic of Belarus is twofold:the law of the Customs Union and the domestic laws of the state. National laws may be regarded as default rules in the sense that they apply when a particular matter is not governed by international agreements of the Customs Union and resolutions of the Interstate Council and the Eurasian Economic Commission. National laws cover mainly the following matters:（1）liability of customs agencies and their officials for instance for negligence in the discharge of their duties; issues of criminal liability in the customs sphere; and（2）technical issues relating to customs operations. In the post-USSR period domestic laws in the customs sphere are presented by a system of laws established in accordance with the Constitution.

The normative arrangement of the domestic laws is as follows:

1. Law of the Republic of Belarus on Customs Regulation;

2. edicts and decrees issued by the President of the Republic of Belarus on customs issues; and

3. regulatory instruments made by the State Customs Committee of the Republic of Belarus.

In general, the aims of the customs policy of the Republic of Belarus are:to ensure of the most efficient use the tools of customs control and regulation of commodity exchange in the customs territory of the Republic of Belarus; to protect the domestic market; to promote the development of the Belarusian economy; to promote structural reforms and fulfilment of other tasks of the economic policy of the Republic of Belarus; and to achieve other goals set by the President, the Parliament and the Government of the Republic of Belarus in line with the Customs Code and other laws of the Republic of Belarus. The Republic of Belarus also seeks to play an active role in international cooperation in customs matters and aspires to harmonise and unify its customs legislation with international standards.

As the laws in the customs operate at the union level and the national level, so do the official bodies involved in customs regulation.

The highest body of the Customs Union is the Interstate Council of Eurasian Economic Community（hereinafter the“Interstate Council”, operating at two levels, namely the level of head of state and the level of head of government）..he uniform regulatory body of the Customs Union is the Eurasian Economic Commission（hereinafter the EEC）, created in accordance with the Agreement on Eurasian Economic Commission,18 November 2011.

Judicial functions of the Customs Union are carried out by the Court of the Eurasian Economic Community. In connection with forming of Customs Union the Eurasian Economic Community Court has the authority to consider cases about consistency between Customs Union legal acts and International agreements that form the Customs Union agreements base, about challenging decisions and actions（or omissions）of Customs Union authorities. The Eurasian Economic Community Court has the authority to judge cases between the EEC and Customs Union member states, petitions of Customs Union member states and Eurasian Economic Community states, petitions of Customs Union agencies and Eurasian Economic Community agencies, petitions of entities and any other cases according to the agreements of Customs Union and Eurasian Economic Community. Since 1 January 2012 the Eurasian Economic Community Court has started working at its headquarters in Minsk.

The system of the state customs bodies, according to Article 8 of the Customs Regulations Law.onsists of:

· the State Customs Committee of the Republic of Belarus, which is the central customs authority and which coordinates and controls activities of all customs bodies of the country;

· nine customs houses; and

· state bodies, who are expected to support customs operations.

Perhaps the most practical problem in trade is on payment. Customs duties are mandatory payments paid to customs bodies on the fulfilment of their activities, named in the Customs Code and the laws of the member states of the Customs Union. Questions of payment arise in relation to specific aspects of customs practice. Article 70 of the Customs Code names, among others, the following:（1）import customs duties;（2）export customs duties;（3）value-added tax levied on goods imported into the customs territory of the Customs Union;（4）excise tax（excise duty）charged when importing goods into the customs territory of the Customs Union;and（5）customs duties..or each type, the legislation of the Customs Union or the Republic of Belarus may specify the manner in which it should be calculated:either in a definite amount, or an amount calculated on the basis of the characteristics of the goods.

The rates of export customs duties are established by national legislation. The laws in the Republic of Belarus dealing with those issues are:

· The resolution of the Council of Ministers of 31 October 2012, No. 1932 on the rates of export customs duties on oil and oil products.

· The Decree of the President of the Republic of Belarus of 9 October 2010, No. 522 on timber.

· The Decree of the President of the Republic of Belarus of 26 October 2009, No. 525 on potash.

· The Decree of the President of the Republic of Belarus of 1 February 2011, No. 40 on the production of skins.

· The Decree of the President of the Republic of Belarus of 21 May 2010, No.272 on rapeseed.

One of the essential elements of the customs regulations of the Republic of Belarus is tariff regulations. The legal base for the tariff regulations is the Agreement on Uniform Customs Tariff Regulation of 25 January 2008..his instrument establishes the formation of the Uniform Customs Tariff（hereinafter the UCT）, applied by member states of the Customs Union. This is a list of rates of customs duties that have to be used with respect to goods imported from third countries, which are systemised in accordance with the Uniform Goods Nomenclature of Foreign-Economic Activity of the Customs Union. The rates of import duties from the UCT must be applied by each member state depending on the state of origin of imported goods and the condition of such imported goods unless otherwise set out in the uniform customs tariff. The sums of import customs duties so collected are apportioned, in accordance with a formula which has been formulated by the Treaty on Determination and Application of Procedure regarding Enrolment and Apportioning of Import Customs Duties（and other customs duties, taxes and levies, having equivalent application）. The allocation according to this formula for the Republic of Belarus is 4.70 percent. Export customs duties are stipulated in the Agreement on Export Customs Duties in respect of Third Countries of 25 January 2008..rticle 84 of the Customs Code of the Customs Union states that the procedure for the payment of export customs duties shall be governed by a separate international treaty of the Customs Union member states..owever, no such treaty has been concluded yet.

1.1 General rules on customs operations

One of the basic concepts, used in the customs legislation of both Customs Union and the Republic of Belarus, is the concept of“customs border”. This notion is quite different from the concept of“state border”. The state border of the Republic of Belarus is a line that delineates the territory of the Republic of Belarus（land,water, minerals, air space）..t the same time, customs border should be understood as the bounds of the territory of the Customs Union, which includes territories of the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation, as well as the territories of member states outside the territory, such as artificial islands, installations, structures and other objects in respect of which the state members of the Customs Union have exclusive jurisdiction.

Each member state determines what points of its state border will be the national customs clearance points.

The movement of goods across the customs border is regulated mainly by the Customs Code of the Customs Union and the Law of the Republic of Belarus on Customs Regulations..he movement of goods includes the actions of import and export of the goods within the customs territory. The Customs Code gives a broad definition of“goods”. According to Article 4 of the Customs Code, “goods”means any movable property, moved through the customs border, including digital media, currency of member states of the Customs Union, securities and/or foreign exchange values, travellers cheques, electric and other energy sources, as well as other movable things equated to real estate..aturally, vehicles used in the international carriage of goods and passengers are excluded from the definition of goods.

The points of entry and exit of goods, transported through the customs border of the Customs Union, are the national customs clearance points of the Republic of Belarus, established by the Decree of the President of the Republic of Belarus of 7 August 2007, No. 373, on the entry and exit of goods transported through the customs border of the Customs Union in the Republic of Belarus..f the goods are transported across the customs border through pipelines or power lines, the points of entry are the parts of pipelines and power lines passing through the customs border.

The legislation provides the rules for the customs operations connected with the arrival of the goods in the customs territory, as well as with the departure from it.“Customs operation”is a new concept in the law of the Customs Union, and basically has the same meaning as in the customs regimes of foreign countries. However, the Customs Code defines customs operation as the complex of laws regulating the conditions and rules of the usage and disposal of goods in the territory of the Customs Union or outside..hese conditions and rules characterise every customs regime.

The specific features of customs operations are the following:

· the list of the customs operations is exhaustive and specified in the Customs Code;

· each customs operation has its own algorithm and its own purpose to achieve a definite result;

· the rulings of each customs procedure are imperative, and cannot be changed at the will of the importer/exporter, or other interested party; and

· one of the parties is always the state customs authority.

Article 202 of the Customs Code of the Customs Union sets out 17 customs procedures..hey are:

（1）production for home use;

（2）export;

（3）customs transit;

（4）customs warehousing;

（5）processing on the customs territory（inward processing）;

（6）processing outside the customs territory（outward processing）;

（7）processing for domestic consumption;

（8）temporary imports（admission）;

（9）temporary exports;

（10）re-import;

（11）re-export;

（12）duty-free trade;

（13）destruction;

（14）abandonment（or refusal）in favour of the State;

（15）free customs zone;

（16）free warehousing; and

（17）special customs procedures（customs procedures for customs purposes of determining the requirements and conditions of use and/or disposal of certain categories of goods in the customs territory of the customs union or outside it）.

The first 14 customs operations are regulated by the Customs Code. The rules on the free customs zone and free warehousing are determined by the international agreements of the member states of the Customs Union. The special customs procedures are determined by the national legislation of the member state of the Customs Union, in accordance with the conditions and types of goods, specified in the decisions of the Commission of the Customs Union.

The Customs Code states that following the party's choice, the goods moved across the customs border are placed under a certain customs procedure according to the procedure and on conditions envisaged in the Customs Code and the legislation of the member-states of the Customs Union. Where the purpose for which goods are to be used changes, the initially chosen customs procedure may be changed to another one in accordance with the Customs Code at a party's request（Article 203）.

1.2 A brief analysis of the types of customs operations

1.2.1 Customs procedure for export（Chapter 31 of the Customs Code）

Export is a customs procedure when goods leave the customs territory of the Customs Union and are intended to remain permanently beyond its frontiers..rticle 213 determines the conditions of placement of goods under the customs procedure of export. They are as follows:

1. payment of the export customs duties if there are no privileges on the payment of such duties;

2. compliance with prohibitions and restrictions; and

3. submission of a certificate of origin of goods for the goods included in the consolidated list of goods formed by the Commission of the Customs Union in compliance with the international treaties of the member states of the Customs Union regulating the issues of application of the export customs duties for third countries.

Once exported, the goods lose their status as goods of the Customs Union. The duty to pay the export customs duties for the goods placed under the customs procedure of export arises for the declaring party from the moment the customs declaration is registered by the customs authority. All duties should be paid before the release of goods, in accordance with the customs procedure of export, if another deadline is not specified in the Customs Code.

1.2.2 Customs procedure of customs transit（Chapter 32 of the Customs Code）

Article 215 of the Customs Code.rovides regulations on customs transit. This is the customs procedure, in accordance with which goods are transported under customs control of the territory of the Customs Union, as well as through the territory of the foreign country, from the customs authority of departure to the customs authority of destination, without the payment of customs duties or taxes while applying prohibitions and restrictions, except for the non-tariff and technical regulation.

This customs operation is applied to the transportation of:

1. foreign goods from the customs authority at the place of arrival to the customs authority at the place of departure;

2. foreign goods from the customs authority at the place of arrival to the local customs authority;

3. foreign goods as well as goods of the Customs Union in accordance with item 5 below, from the local customs authority to the customs authority at the place of departure;

4. foreign goods from one domestic customs authority to another internal customs authorities; and

5. goods from the customs authority of the Customs Union of departure to the customs authority of the place on the territory of a state not being a member of the Customs Union.

However, this operation（customs transit）is not applied for the goods transported by air, if the air vessel in the course of an international flight made an immediate or emergency（technical）landing at the place of arrival without a partial discharge（unloading）of goods.

The particulars of the customs transit for the goods moved by railway transport over the customs territory of the Customs Union are specified in an international treaty of the member-states of the Customs Union.

The declaring party must declare goods placed under the procedure of customs transit to the customs territory. Article 186 of the Customs Code states that declaring parties may include:

1. a person of a member state of the Customs Union who has entered into a foreign trade transaction or in whose name（on whose behalf）the transaction was concluded; having the right of possession, use and/or disposal of the goods, in the absence of the foreign trade transaction;

2. foreign persons, that is, natural persons moving the goods for personal use; or persons enjoying customs benefits in compliance with Chapter 45 of the present Code; an organisation having a mission（representation）established on the territory of the member state of the Customs Union according to the established procedure, with a statement of customs procedures of temporary import, re-export, as well as the customs procedure of release for internal consumption only in respect of the goods imported for own use such representations; party enjoying the right of disposal of the goods other than in the framework of the transaction where one side is the party of the member state of the Customs Union; and

3. for declaring the customs treatment of customs transit, the persons cited in the above two cases, as well as the carrier, in particular the customs carrier, the shipping agent, if he is a person of a member state of the Customs Union.

Article 216 of the Customs Code sets out the following conditions for this procedure:

“Article 216, Terms of Placing of Goods under the Customs Transit Customs Procedure

The placing of goods under the customs transit customs procedure is permitted while observing the following conditions:

1. the goods are not prohibited for import to the customs territory of the Customs Union or export from such territory;

2. the goods are accompanied by documents confirming the observance of restrictions associated with the moving of goods across the customs border, if such moving is permitted in the presence of these documents;

3. the border control and other types of state control are carried out for the imported goods if the goods are subject to such control at the place of arrival;

4. transit declaration is presented;

5. measures of ensuring observance of the customs transit shipment are taken for the goods in compliance with Article 217 of the present Code;

6. identification of goods is ensured in compliance with Article 109 of the present Code;

7. the vehicle of international transportation is equipped appropriately if the goods are transported under customs seals and stamps. ”

The time limit for the“customs transit of goods”（i. e. the customs procedure to facilitate the movement of goods）from the customs authority of departure to the customs authority of destination is established by the customs authority of the place of departure, in accordance with the usual period of the transportation of goods, on the basis of the type of transport used and the capacity of the vehicle, the established route, other conditions of the transportation and the requirements of the regime of work and requirements of rest for the driver in accordance with international agreements, but considering that the established time limit should not exceed the maximum time limit for the customs transit.

The legislation has set the maximum time limit for the customs transit, which must not exceed the period calculated on the basis of two thousand kilometres in one month. In spite of this fact, the law provides for an extension of time on a reasonable request made by the declaring party or the carrier itself.

Under the procedure of customs transit the place of delivery of goods is designated by the customs authority of departure on the basis of information of the office of destination, stated in the transport（shipment）documents. In some situations, as provided by legislation of the member states of the Customs Union, customs authority of departure has the right to set the place of the delivery despite the information indicated in the transport（shipment）documents. The place of delivery of goods is the customs control zone, located in the area of activity of the customs authority of destination. In this respect, the goods are transported from the place of their arrival to the place of location of the customs authority, if the Customs Code does not otherwise require.

The Customs Code also prescribes the obligations on the unloading, trans-shipment and other loading operations of goods, and the substitution of vehicles under the customs transit, as well as the rights and the obligations for the carrier.

The obligation on the declaring party to pay the customs import duties, taxes, regarding foreign goods which are placed under the customs procedure of customs transit, occurs at the moment of the registration of transit declaration by the customs authority.

The customs procedure of the customs transit terminates once the delivery of goods to the place of delivery, established by the customs authority of departure, is complete. Before the termination of the customs procedure of customs transit, the goods are placed in the customs control zone at the place of delivery of goods. The placement of goods in the customs control zone is allowed at any time of the day or night. In order to terminate the customs procedure of customs transit, the carrier should present to the customs authority of destination, the transit declaration and other documents on goods, which are available to him. Time limits for this, in respect of different modes of transport, are stipulated in Article 225 of the Customs Code.

1.2.3 Customs procedure of the customs warehousing（Chapter 33 of the Customs Code）

Customs warehousing refers to the customs procedure whereby foreign goods are stored under customs control in a customs warehouse for the specified period without payment of customs duties and taxes and without applying non-tariff regulation measures. Payment of any duty will not become due until the goods leave the customs warehousing procedure.

Under the customs procedure of customs warehousing may be placed any type of foreign goods, with the exception of goods with a shelf life and/or sell by date of less than 180 calendar days, or goods which are listed in the decision of the Commission of the Customs Union. The customs warehousing procedure may be used to place foreign goods to suspend the customs procedures of temporary import（access）or processing on the customs territory（inward processing）.

Large-sized goods, which cannot be physically placed in a customs warehouse, may be placed under the customs procedure of customs warehousing without actually placing them in a customs warehouse, with the permission of the customs authority.

The obligation to pay import duties and taxes on foreign goods, placed under the customs warehousing procedure occurs:（1）for the declaring party, from the moment of registration of the customs declaration;（2）for the owner of the customs warehouse, from the moment of placing the goods at the customs warehouse.

The term of the storage of goods in a customs warehouse shall not exceed three years from the date of the placement of goods under the customs warehousing procedure. Article 236 of the Customs Code stipulates when the procedure of customs warehousing ends:.or instance, it ends when the goods are placed under another customs procedure before the expiry of the period of storage of goods at the customs warehouse.

1.2.4 Customs procedure for processing on customs territory（inward processing）（Chapter 34 of the Customs Code）

In chapter 34 of the Customs Code are stipulated regulations on the customs operation of processing in the customs territory. The definition is given in article 239 of the Customs Code. It is the customs procedure when foreign goods are used to carry out operations of processing on the customs territory of the Customs Union within specified deadlines with a full conditional exemption from the payment of import customs duties, taxes and without the application of measures of non-tariff regulation followed by subsequent export of products of processing outside the customs territory of the Customs Union.

The goods, placed under this customs operation, preserve the status of foreign goods and the goods obtained as a result of the operation of processing of goods acquire the status of foreign goods.

The conditions for the placement of the goods under that customs operation are the following:

1. submission of the document on the terms of processing of goods on the customs territory issued by the authorised body of a member state of the Customs Union, and containing information specified in Article 244 of the Customs Code;

2. opportunities of identification by the customs bodies of the foreign goods in the products of their processing, except for the cases of replacement with equivalent goods in compliance with Article 248 of the Customs Code.

The Commission of the Customs Union may specify the list of goods prohibited to be placed under the customs procedure of processing in the customs territory.

This operation can include the following types:

1. processing or machining of goods when the foreign goods lose their individual characteristics;

2. manufacture of goods, including installation, assembly, disassembly and adjustment;

3. repair of goods, including restoration, replacement of component parts;

4. use as raw materials of goods assisting the manufacturer of products of processing or facilitating it, even if these goods are fully or partly consumed in the course of processing. The given operation must be fulfilled simultaneously with one of operations mentioned in above three items.

Operations of processing of goods do not include:

1. operations intended to ensure preservation of goods when they are prepared for sale and transportation;

2. getting crops, rearing and feeding animals, birds, fish, as well as growing crustaceans and molluscs;

3. growing trees and plants;

4. copying and duplication of information, audio and video recordings on any types of media;

5. use of foreign goods as auxiliary means in the technological process（equipment, machine-tools, fixtures and others）.

The period for processing of goods on the customs territory may not be longer than three years. The period of processing of goods begins with the day of their placing under the customs procedure of processing on the customs territory, and in the cases of customs declaring of goods in separate batches（several batches）, from the day of the placing under this customs. A decision of the Commission of the Customs Union may specify a longer period of processing of goods on the customs territory for individual categories of goods.

The time limit for processing on customs territory includes:

1. the duration of the production process of processing of goods; and

2. the time required for the actual export of products of processing carrying out of customs operations pertaining to the disposal of waste and residues of foreign goods.

The procedure of fixing and prolongation of the period of processing of goods on the customs territory is specified in the legislation of the member states of the Customs Union

1.2.5 Customs procedure for processing outside the customs territory（Chapter 35 of the Customs Code）

Another customs operation established by the Customs Code is customs processing outside the customs territory. Processing outside the customs territory refers to the customs procedure when the goods of the Customs Union are exported from the customs territory of the Customs Union to carry out operations of processing outside the customs territory of the Customs Union within specified deadlines with a full conditional exemption from payment of export customs duties and without application of the measures of non-tariff regulation followed by subsequent import of products of processing to the customs territory of the Customs Union.

The conditions for the placement of the goods under this customs operation are as follows:

1. submission of the document on the terms of processing of goods outside the customs territory issued by the authorised body of the member state of the Customs Union and containing information specified in Article 257 of the Customs Code. If the goal of the placing of goods under the customs procedure of processing outside the customs territory is their repair, one may use the customs declaration as the aforementioned document;

2. opportunities of identification by the customs bodies of the goods of the Customs Union in the products of their processing, except for the case of replacement of the products of processing with foreign goods in compliance with Article 259 of the Customs Code.

The Commission of the Customs Union may specify the list of goods prohibited from placing under the customs procedure for processing outside the customs territory.

The period of processing of goods outside the customs territory may not be longer than two years.

1.2.6 Customs procedure for processing for internal（domestic）consumption（Chapter 36 of the Customs Code）

According to Article 264 of the Customs Code, processing for internal consumption means the customs procedure when foreign goods are used to carry out operations of processing on the customs territory of the Customs Union within specified deadlines without the payment of import customs duties while applying prohibitions and restrictions, as well as restrictions associated with the application of special protective, anti-dumping and countervailing measures, on condition of subsequent placing the products of processing under the customs procedure of release for internal consumption while paying the import customs duties at the rates applied to the products of processing.

Processing for internal consumption is permitted for goods, the list of which is determined by the Commission of the Customs Union and/or legislation of the member states of the Customs Union.

Placement of goods under the customs procedure for processing of goods for internal consumption is permitted provided the following conditions are met:

1. submission of the document on the terms of processing of goods for internal consumption issued by the authorised body of the member state of the Customs Union and containing information specified in Article 269 of the present Code;

2. the possibility identification of foreign goods in the products of their processing by customs bodies;

3. if the amount of import customs duties due for payment for products of processing is less than those that would be payable on the date of placing foreign goods under the customs procedure of processing for internal consumption, if they were placed under the customs procedure of release for internal consumption;

4. products of processing cannot be restored to their original condition by using a cost-effective manner.

Operations for the procedure for processing of goods include:

1. processing or refining of goods under which foreign goods lose their individual characteristics;

2. manufacture of goods, including installation, assembly, disassembly and customizations.

Operations for processing of goods do not include:

1. operations to ensure the safety of goods when they are prepared for sale and transportation;

2. obtaining progeny, growing and fattening of animals, birds, fish, and the cultivation of crustaceans and molluscs;

3. the cultivation of trees and plants;

4. copying and reproduction of information, audio and video records on any type of media.

The period for processing of goods for internal consumption may not be longer than one year.

1.2.7 Customs procedure for temporary import（admission）

The customs procedure for temporary import（admission）is the customs procedure when foreign goods are used within the prescribed period on the customs territory of the Customs Union with a conditional release, full or partial, from the payment of import customs duties, taxes and without applying non-tariff regulation followed by subsequent placement under the customs procedure of re-export.

The placing of goods under the customs procedure of temporary import（admission）is permitted provided there are opportunities for identification of goods placed under this customs procedure, followed by their subsequent customs declaring in order to complete the customs procedure for temporary import（admission）.

Identification of goods is not required in cases where placement of temporarily imported goods is permitted by international treaties of the member states of the Customs Union.

It is forbidden to place under this operation:

1. food, beverages, including alcohol, tobacco and tobacco products, raw materials and semi-finished products, materials and designs, except as single copies for advertising and/or demonstration purposes or as exhibits or industrial designs;

2. waste, including industrial waste;

3. goods which are prohibited from being imported into the customs territory of the Customs Union.

Article 280 states that the period of temporary importation of goods is established by the customs authority on the basis of the application by the declaring party on the objectives and circumstances of such import, and may not be greater than two years from the day of placing the goods under the customs procedure of temporary import except for the cases envisaged in that Article.

1.2.8 Customs procedure for temporary export（Chapter 38 of the Customs Code）

Temporary export is the customs procedure under which the goods of the Customs Union are exported and used within a specified period outside the customs territory of the Customs Union with full exemption from payment of export customs duties and without the application of non-tariff regulations, followed by subsequent placement under the customs operation of re-import..oods placed under the customs procedure of temporary export and actually exported from the customs territory of the Customs Union lose the status of goods of the Customs Union.

Goods that may not be placed under the customs procedure of temporary import may not be placed under the customs procedure of temporary export too.

The period of temporary export of goods is specified by customs authority on the basis of the application of the declaring party on the objectives and circumstances of such export. For individual categories of goods, depending on the purpose of their export outside the customs territory of the Customs Union, as well as for certain categories of goods whose re-importation is obligatory in compliance with the legislation of member states of the Customs Union, the legislation of the member states of the Customs Union may specify deadlines for temporary export of such goods.

1.2.9 Customs procedure for re-import（Chapter 39 of the Customs Code）

Re-import is the customs procedure whereby goods previously exported from the customs territory of the Customs Union are brought back to the customs territory within the deadlines specified in Article 295 of the Customs Code, without payment of import customs duties and taxes and without the application of the measures of non-tariff regulations..oods placed under the customs procedure of re-importation acquire the status of Customs Union goods.

Previously exported products may be placed under the customs procedure of re-importation such as:

1. goods placed under the customs procedure of export, or being the products of processing of goods placed under the customs procedure for processing on the customs territory and exported from the customs territory of the Customs Union in compliance with the customs procedure of re-export, if these goods are placed under the customs procedure of re-import within three years from the day following the day of their moving across the customs border, when exported from the customs territory of the Customs Union, provided that the goods remain unchanged, except for changes caused by normal wear and tear under normal conditions of carriage（shipment）, storage and/or use（operation）; and the customs authority receives documents and information necessary for the placing of goods under the customs procedure for re-import submitted in compliance with Article 294 of the Customs Code;

2. goods placed under the customs procedure of temporary exportation, if the goods are imported during the period of temporary export and are in the same condition, except for normal wear and tear, under normal conditions of carriage（shipment）, storage and/or use（operation）as well as changes that are permitted in respect of such goods when they are used in compliance with the customs procedure of temporary export;

3. goods placed under the customs procedure for processing outside the customs territory, if the goods are imported during the period of processing and are in the same condition as they were exported from the customs territory of the Customs Union, except for changes, caused by normal wear and tear, under normal conditions of transportation（shipment）, storage and/or use（operation）;

4. products of processing of the goods placed under the customs procedure of processing outside the customs territory, if the purpose of processing was gratuitous（warranty）repair and these goods are placed under the customs procedure of re-import during the period of processing, except for the products of processing of goods that when released under the customs procedure for release for internal consumption had a flaw being the reason of gratuitous（warranty）repair.

Declaring party has to submit to the customs authority information concerning the circumstances of the export of goods from the customs territory of the Customs Union, as well as information on the operations of repairing the goods if such operations were carried out with the goods outside the customs territory of the Customs Union.

1.2.9 Customs procedure for re-export（Chapter 40 of the Customs Code）

Re-export refers to the customs procedure where the goods previously imported into the customs territory of the Customs Union, or the products of processing of the goods placed under the customs procedure of processing on the customs territory are exported from the customs territory without payment and/or with the return of the amounts paid as import customs duties and taxes and without the application of nontariff regulation.

The following may be placed under the customs procedure of re-export.

1. foreign goods available on the territory of the Customs Union, including those imported in violation of the measures of non-tariff regulation, and products of processing of the goods placed under the customs procedure of processing on the customs territory;

2. goods placed under the customs procedure of release for internal consumption, if the goods are returned because of the failure to fulfil the terms of the foreign economic transaction, including the quantity, quality, description or packaging, while observing the following conditions:

a. the goods are placed under the customs procedure of re-export within one year from the day following the day of release for internal consumption;

b. the customs authority gets the documents submitted in compliance with Article 299 of the Customs Code（namely documents and information necessary for the placing under the customs procedure of re-export of goods earlier placed under the customs procedure of release for internal consumption）;

c. the goods were not used and were not repaired in the customs territory of the Customs Union, except in cases where the use of the goods was necessary to detect defects or other circumstances, which caused the return of goods;

d. the products can be identified by the customs authority.

1.2.10 The customs procedure for duty-free trade（Chapter 41 of the Customs Code）

Duty-free trade refers to the customs procedure when the goods are sold at retail in duty-free shops to individuals leaving the customs territory of the Customs Union or to foreign diplomatic missions, representative offices of international organisations which equated to them, consulates and diplomatic agents, consular officials and members of their family members residing with them, without the payment of customs duties and taxes and without the application of measures of non-tariff regulation.

Under the customs procedure of free trade can be placed any goods, except for goods prohibited from import to the customs territory of the Customs Union or for export outside the Customs territory of the Customs Union, as well as goods prohibited for circulation in the territories of member states of the Customs Union. Commission of the Customs Union may establish a list of other goods that may not be placed under the customs procedure of duty-free trade.

The only person who can be the declaring party of the goods is the owner of a duty-free shop, which is going to sell these products.

1.2.11 Customs procedure for destruction（Chapter 42 of the Customs Code）

Destruction refers to the customs procedure when foreign goods are destroyed under the customs supervision without payment of import duties and taxes and without application of measures of non-tariff regulation..estruction or rendering goods harmless means bringing goods into a state in which they lose their consumers or other qualities, completely or partially, and cannot be restored to the original condition in a cost-effective manner.

Placement of goods for destruction is permitted on the basis of the conclusion of the authorised government agency, issued in accordance with the legislation of the member states of the Customs Union, permitting destruction, indicating the method and place of destruction. Such a conclusion is not required in cases, where the goods are lost irretrievably due to an accident or force majeure. To place such goods under the customs procedure for destruction, documents confirming the fact of irretrievable loss of the goods because of an accident or force majeure must be submitted.

For the following categories of goods, they are excluded from this procedure of destruction:

1. goods of cultural, archaeological or historical value;

2. animals and plants of any species which are protected by the laws of the member states of the Customs Union and/or by international treaties, except when their destruction is necessary to prevent epidemics and epizootics and to spread quarantine facilities;

3. goods accepted by customs bodies, as a matter of collateral to the termination of the relationship of mortgage;

4. goods that are seized, including non-physical evidence, in accordance with the laws of the members of the Customs Union;

5. other goods which are determined by as such the Commission of the Customs Union.

Destruction of goods is prohibited when such destruction:

1. may cause harm to the environment, or is hazardous to the life or health of the people;

2. is produced by consumption of goods in accordance with their common purpose;

3. may result in costs to public authorities of member states of the Customs Union.

Destruction of goods is the responsibility of the declaring party, at its own expense. Destruction must take place by the deadlines the customs authority specifies, based on the time that is required for the actual destruction of the goods and the method and place of their destruction.

1.2.12 Customs procedure for refusal（abandoning）in favour of the State（Chapter 43 of the Customs Code）

The last customs procedure expressly referred to in the Customs Code is the customs procedure of refusal in favour of the state. This refers to the customs procedure when foreign goods are transferred free of charge to become the property of the member state of the Customs Union without customs payment and without the application of measures of non-tariff regulation..oods placed under this customs procedure acquire the status of goods of the Customs Union.

Foreign goods, except goods prohibited from being imported into the customs territory of the Customs Union, as well as goods prohibited from circulation in the territories of the member states of the Customs Union, can be placed under this customs procedure. The Commission of the Customs Union may specify a list of other goods that cannot be placed under this procedure. The procedure of refusal goods in favour of the state is specified in legislation of the member states of the Customs Union.

1.2.13 General rules for the customs procedure of free customs zone and free warehousing

The customs operation of the free customs zone and free warehousing are regulated by the domestic legislation. In the Republic of Belarus, this operation is stipulated in Chapter 42 of the Law of the Republic of Belarus on the Customs Regulations..owever, this chapter does not provide any directly relevant rules or definitions. It states that all the named characteristics of both operations are to be stipulated by the international agreements of the member states of the Customs Union. Under this operation can be placed the foreign goods in the territory of the Republic of Belarus, with the exception of the goods listed in the Customs Union regulations. Also the list of the goods prohibited from being placed under this operation may be established by the President of the Republic of Belarus or the Government.

A distinct feature of the free customs zone, distinguishing its operation from all others, is related to the rules on the declaring party. According to the law, the declaring party may only be a resident of a free customs zone, carrying out storage, use and/or other operations with the goods placed under a customs procedure. Under Article 244 of the Law, the declaring party is required to ensure the placement of such goods in a certain customs free zone..oods must be in the same condition, in which they were released into the customs procedure of a free customs zone, except for any natural wear and tear under normal conditions of transportation and storage conditions. Placing of goods in a free customs zone is confirmed by notifying the customs authority of such placement. All the operations with the goods should be carried out only by the declaring party of the customs procedure, in accordance with the prohibitions and restrictions, established in the free（special）economic zone and or in a free zone, in accordance with the customs legislation of the Customs Union and the legislation of the Republic of Belarus.

Quite similar to customs procedure of free customs zone is the customs procedure for free warehousing. According to the law, only the owner of the free warehouse in territory of which the storage would be carried out, or other person named by the President of the Republic of Belarus, may act as the declaring party.

1.2.14 Special customs procedure

The last customs procedure is the special customs procedure. This procedure concerns certain categories of goods, which are listed in the customs law of the Customs Union, and which are transported to the territory of the Republic of Belarus and used in its territory or transported outside of it without payment of customs duties and taxes. Under this procedure can be placed the goods of the Customs Union or foreign goods. The rules providing the conditions and restrictions of this customs operation are stipulated in the domestic law of the Republic of Belarus if there is no applicable Customs Union law.