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Chapter 16. Inward processing
Article 113. Content of the Customs Regime
1. Inward processing is a customs regime under which the
imported goods are used in the customs territory of the Kyrgyz Republic within
the established period (period for processing of goods) for purposes of carrying
out goods processing operations with conditional exemption from payment of customs
duties and taxes, provided products of processing are exported from the customs
territory of the Kyrgyz Republic within the established period of time.
2. All prohibitions and restrictions
established according to legislation of the Kyrgyz Republic on State regulation of foreign
trade activity shall apply to imported goods placed under the customs regime
of inward processing.
Article 114. Conditions for Placement of Goods under the Customs
Regime
1. The customs
body shall create a control file according to Article 119 of this Code when
placing goods under the customs regime of inward processing.
2. Inward
processing shall be allowed if customs bodies can identify foreign goods in
products of processing, except for cases when the customs regime is completed
by exportation of products of processing obtained from processing of the goods,
equivalent to foreign ones, according to Article 122 of this Code.
3. The customs regime of inward processing may be declared by any interested
person that may act as a declarant according to Article 286 of this Code.
4. Goods earlier placed under other
customs regimes may be placed under the customs regime of inward processing.
Article 115. Identification of Foreign Goods in Products of
Processing
1. Requirements with respect to
identification of goods for inward processing shall be established by an Instruction
of the Ministry of Finance of the Kyrgyz
Republic.
2. At request of an interested person
and at the consent of a customs body, identification for customs purposes can
be ensured by providing detailed information on raw products, materials and
component parts used in production, as well as on technology of manufacture
of products of processing or through accomplishment of customs control during
processing operations.
Article 116. Goods Processing Operations
Goods processing operations shall
include the following:
1) processing proper and treatment
of goods;
2) manufacture of new goods, including
mounting, assembling and disassembling of goods;
3) repair of goods, including their
reconditioning, bringing to order, replacement of constituent parts;
4) use of goods promoting and facilitating
manufacture of products of processing as raw products, even if these goods are
used in processing totally or partially.
Article 117. Period for the Processing of Goods
1. The period for inward processing
shall be established by a customs body and may not exceed one year, except for
cases stipulated in Item 4 of this Article.
2. The period for processing shall
begin from the date of placement of goods under the customs regime of inward
processing, and at importation of goods in separate consignments, from the date
of placement of the first consignment of goods.
3. Duration of the processing of
goods and disposal of products of processing shall be considered when establishing
the period for inward processing of goods.
4. At a motivated request
of an interested person, the customs body shall establish a period longer than
that provided in Item 1 of this Article, or shall prolong the earlier established
period. A longer period of processing shall be fixed if the technological process
of processing lasts more than one year. The period fixed for inward processing
of goods shall be prolonged if the person, on whom a control file has been created,
without violation of requirements and conditions stipulated by this Chapter,
is not able to complete the customs regime within the established period for
reasons beyond his control.
5. The time limit for processing shall make two years.
Article 118. Norms of Output of Products of Processing for
Customs Purposes
1. The norm
of output (quantity or percentage of products of processing obtained as a result
of processing of a certain number of foreign goods) shall be established by
or agreed upon with the customs body at creation of a control file for processing
with taking into consideration actual conditions under which processing is performed.
2. Description, quality and quantity
of products of processing shall be precisely determined after establishment
or agreement of the norm of output.
3. In cases when processing operations
relate to goods with practically constant characteristics, are usually performed
following clearly specified technical conditions and lead to output of products
of processing of unchanged quality, the customs body shall establish standard
norms of output.
4. When establishing the norms of
output, the customs body shall consider opinions of the expert organizations
based on certain technological process of processing.
Article 119. Control File for the Processing of Goods
1. A control file for processing
of goods shall be created by the customs body on a domestic person, if the customs
regime of inward processing may be applied to goods according to Article 114
of this Code.
2. Control file shall include:
- description, quality and quantity of foreign goods and
products of their processing;
- goods processing operations and
their methods;
- norm of output;
- period for processing.
3. The control file for processing shall be valid within the
established period of processing of goods.
4. The control file for processing
within the period of its validity may be applied to another domestic person,
provided that the person overtakes obligations of further observation of conditions
of the customs regime of inward processing to the customs bodies. In this case
the person, with respect to whom the control file for processing has been initially
opened, should submit a report to the customs body on implementation of conditions
of the customs regime for the period when that person used the goods according
to the customs regime, also make customs payments if events resulting in the
obligation to make customs payments in compliance with this Code occurred during
that period.
Article 120. Wastes and Remains
Customs duties and taxes shall be
paid with respect to wastes appearing as a result of processing, as well as
remains of unprocessed imported foreign goods, as if they were imported into
the customs territory of the Kyrgyz Republic in such condition, except for cases
when these wastes and remains were taken out outside the customs territory of
the Kyrgyz Republic or processed into the condition which does not fit for their
further commercial use.
Article 121. Completion of the Customs Regime
The products of processing should
be taken out from the customs territory of the Kyrgyz Republic not later than the date of
expiration of the period of inward processing established according to Article
117 of this Code.
If the products of processing are
taken out from the customs territory in several consignments, the final reconciliation
of compliance of quantity of products of processing specified in the control
file may be carried out periodically after exportation of products of processing,
but at least once in three months and not later than 30 days from the date of
exportation of the last consignment of goods. If as a result of such reconciliation
the person, with respect to whom the control file for inward processing was
created, should pay customs duties and taxes, no fines shall be imposed on the
amounts of such customs payments if they are paid not later than 10 working
days form the date when the customs body makes the decision that such amounts
should be paid.
Article 122. Equivalent Compensation
1. Foreign goods placed under the
customs regime of inward processing may be replaced, on permission of customs
bodies, with other goods if they are of the same description, quality and technical
characteristics as foreign goods (equivalent compensation).
2. The products obtained as a result
of processing of equivalent goods shall be considered as products of the processing
of foreign goods in compliance with provisions of this Chapter.
3. For customs purposes the equivalent
goods shall have a status of foreign goods, and goods replacing them shall have
a status of equivalent goods.
4. If the equivalent compensation
is allowed, exportation of products of processing shall be admissible before
importation of goods for inward processing, provided a control file for processing
is available. Customs bodies shall establish a period for importation of foreign
goods.
Article 123. Specificity of Application of the Customs Regime
of Inward Processing
1. When conditional exemption from
payment of customs duties and taxes is applied in cases of failure to export
products of processing within the established period, the amounts of customs
duties and taxes shall be paid, which would be payable if at their importation
the goods were declared for release for free circulation, as well as interests
thereon at rates of the National Bank of the Kyrgyz Republic, as if at placement
of the goods under the customs regime of inward processing the deferral was
granted to the aforementioned amounts.
2. Application of conditions of
the customs regime of inward processing shall be allowed with respect to goods
released for free circulation at request of an interested person. In this case
the customs bodies shall refund the amount of customs duties and taxes paid
at importation of the goods, if the products of processing are exported within
one year from the date of release of foreign goods for free circulation, provided
that the goods can be identified by customs bodies and other requirements and
conditions established by this Chapter are followed.
Provisions of this Item can be also
applied at exportation of products of processing of goods equivalent to foreign
goods imported into the customs territory of the Kyrgyz Republic.
Article 124. Liability for Non-Observation of Conditions of
the Customs Regime
The person, with respect to whom
a control file for inward processing is created, shall be liable for non-observation
of conditions of the customs regime, as well as for making customs payments
according to Item 3 of Article 221of this Code.
If the control file for inward processing
is applied with respect to another person according to Item 6 of Article 119
of this Code, that person shall be liable for non-observation of conditions
of the customs regime from the date of permission by the customs body for such
transfer. |
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