Besides the variety of positive introductions in the Customs Code of Eurasian Economic Union (hereinafter – the Customs Code of EAEU), international carriers faced certain difficulties concerning the implementation of new customs legislation. One of these difficulties consists in peculiarities of customs transit procedure regarding the goods transported across the customs border of Eurasian Economic Union (hereinafter – Union) in unassembled or disassembled form, including incomplete form. Conditionally, they can be divided into two categories.
- Large-scale and physically huge goods: factories, processing equipment, production lines, etc. Shipment of the parts for these goods is frequently named as “partial delivery”. Transportation of such goods usually involves high number of vehicles and takes significant amount of time, sometimes in accordance with installation process. This category of goods generally requires importers to obtain a decision for classification of goods transported across the customs border of Union in unassembled or disassembled form, including incomplete form (hereinafter – decision for classification).
- Smaller goods: machines, production work stations, engines, etc. Transportation of such goods is usually conducted simultaneously in several vehicles in disassembled form. The objective is synchronous arrival of vehicles at the Customs office of destination where a declarant releases the goods classifying it with a single code for complete goods according to the FEACN. Among the carriers, such transportation usually refers to “block delivery”. In most cases, “block delivery” involves up to five vehicles, but sometimes this number can reach twenty.
Provisions of Customs Code of EAEU and Decision of Board of the Eurasian economic commission of November 7, 2017 No. 138 "About features of application of customs procedure of customs transit concerning the goods moved through customs border of the Eurasian Economic Union in not collected or sorted type, including in incomplete or incomplete type and determination of the amount of ensuring discharge of duty on payment of customs duties, taxes concerning such goods" (hereinafter – Decision of EEC Board № 138) determine that abovementioned goods can be put under the customs procedure of customs transit only if there is a decision for classification or preliminary decision for classification according to the FEACN (hereinafter – preliminary decision for classification).
Decision for classification is a common practice and a necessity for importer if we speak about the import of the goods from the first category to the custom territory of Union, while for the second category importer normally does not seek such decision due to unreasonable time and costs involved. Why should he arrange decisions for classification of goods that arrive at the Customs office of destination in five vehicles at the same time? It is unnecessary for the release of goods, while that is unaffordable luxury for any importer who appreciates his time and money to seek the decisions for classification in order to conduct the customs transit procedure. Furthermore, in the vast majority of cases international carriers themselves act as declarants in this customs procedure, so their clients used to consider issues of customs transit as an exclusive responsibility of carrier.
If there is no decision for classification or preliminary decision for classification, every single part of complete goods shall be declared separately with indication of value, quantity and gross weight mentioned in the transit declaration. The biggest difficulty is that even a producer sometimes is unable to determine the value and weight of each particular part of complete goods as long as he does not have such information. The situation is even worse in case of transit transportation of the parts of complete goods within the Union territory. In this context, we can hardly speak about decision for classification or preliminary decision for classification issued by the customs authority of EAEU. Nevertheless, the EEC Board Decision No. 138, adopted in order to determine the aspects of customs procedure of customs transit for these goods, does not exclude transit transportation from the common rules.
There is a slight consolation in this situation provided by paragraph 10, article 142 of the Customs Code of EAEU, which expresses a possibility for Union’s member state to autonomously define the aspects of customs procedure of customs transit for goods transported within its territory. The Customs Code of Customs Union contained the same provision, so the simplification in this regard has already been implemented in Belarus. According to paragraph 6, article 186 of the Law of the Republic of Belarus of 10.01.2014 № 129-Z “On Customs Regulation in the Republic of Belarus”, it is possible to perform a release of goods in unassembled or disassembled form transported in several shipments by single or multiple vehicles using the single code of FEACN, if there is an export declaration issued in a country of exportation, which contains a classifying code for the complete goods. Provision of such declaration hugely simplifies customs declaration process and warrants confirmation of the data mentioned in transit declaration, as long as it is a custom document.
However, whereas previously this provision applies for all goods transported across Belarussian part of Union customs border, now the possibility of providing export declaration issued in a country of exportation works only regarding the direct import to the Republic of Belarus. In case of transportation of goods to other states, the Decision of EEC Board № 138 applies, so the existence of decision for classification or preliminary decision for classification is obligatory.
I would like to believe that in the future the approach of the customs authorities in the Union’s member states will change, and the experience of the Belarussian customs will be taken as a basis. Though, currently numerous carriers simply refuse to transport such goods, in order not to face demurrages while waiting for the documents at the customs border. Due to the fact that sometimes there is no source of information necessary for a customs declaration, waiting can last very long.
Head of Customs Operations Department, LLC “Autopromsnab-spedition”
Vadim Naumik