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EEC recommends improving interaction of the state bodies controlling the circulation of commodities

EEC recommends improving interaction of the state bodies controlling the circulation of commodities

6/20/2018

The issues of customs cooperation, technical regulation and the internal market functioning were discussed at the meeting of the Board of the Eurasian Economic Commission (EEC) on June 19. A recommendation was adopted for the countries of the Eurasian Economic Union (EAEU) concerning interaction of the State control bodies, a procedure was approved with regard to delayed determination of the customs commodity cost.

The Board of the EEC adopted the Procedure for interaction between the State control (supervision) bodies of the countries of the Eurasian Economic Union when implementing activities to comply with the requirements of the EAEU technical regulations. The Member States are advised to rely on this document from the date of its publication.

The control body of one of the countries of the Union that discovered a breach of any EAEU technical regulation is invited to forward a seven-day notice of violation and adoption of restrictive measures to the state control bodies of other countries of the Union and to the Commission. The notice will contain the name of the state control (supervision) body that discovered a commodity that does not meet the standards of technical regulations; the date of the discovery; the name of the legal person or the full name of the individual entrepreneur with whom such products were discovered; and some other data.

Having received the information, the competent authorities will check the possible cases of circulation in their countries of the unsafe goods specified in the notice. The results of the inspections and the measures taken will be reported to the state control body that sent the notice.

When preparing the recommendation for the EEC, the representatives of the parties expressed their willingness for further cooperation in the sphere of state control in order to ensure mutual confidence in its results and to prevent dangerous products from entering the single market of the Union.

The document will help implement certain provisions of the Agreement on principles and approaches to the implementation of state control (supervision) over compliance with the requirements of the EAEU technical regulations in order to harmonize the legislation of the Member States in this field. The recommendation will become the basis for the development of a binding Procedure for interaction between the State control (supervision) bodies of the Member States, which is planned to be approved by the decision of the Council of the EEC after the Agreement comes into force.

The Board of the EEC adopted the Procedure for delayed determination of the customs commodity cost, revised in accordance with the new Customs Code of the Union (EAEU CC).

The participants of foreign economic activity (FEA) will be entitled to a 15-month delay on determining an accurate customs commodity cost, if the customs value of the goods is unknown for objective reasons at the time of the customs declaration.

For example, entrepreneurs of the EAEU countries can delay determination of the exact customs value of commodities in case when at the time of customs declaration the exact amount of licensing and other similar payments for the use of intellectual property is not available. This may include payments for patents, trademarks, copyrights, etc. The same applies to cases when during declaration the exact amount of revenue from the sale or use of the imported goods that is directly or indirectly due to the seller remains unclear. This simplification also applies to the goods, the price of which depends on stock-exchange quotations which are unknown at the time of declaration.

The decision of the EEC keeps the current procedure for application of the simplification - at the time of customs declaration a participant of the FEA must determine a provisional customs value based on projected data, and within 15 months - the exact customs value, and make changes to the customs declaration. In this case, as was previously established, if the exact customs value exceeds the provisional value, the remaining customs duties can be paid without any penalties.

Exercising the delay in determining the accurate customs value allows the customs applicants to determine the customs value of the commodities based on the transaction value and not resort to other “assessment methods” which involve additional financial cost for confirmation. The possibility of a delay in determining customs value of commodities was introduced for the EAEU entrepreneurs in 2016.