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Chapter 32. Calculation of customs duties
and taxes
Article 222. The Object of Taxation with Tax Duties and Taxes
and the Tax Basis
Goods conveyed through the customs
border shall be the objects of taxation with customs duties and taxes. For the
purpose of calculation of customs duties and taxes, the tax base shall be the
customs value of goods and (or) their quantity according to the tax legislation
of the Kyrgyz Republic and this Code.
Article 223. Basic Provisions Relating to Customs Valuation
1. The system for determination
of customs value (customs valuation) of goods shall be based on general principles
of customs valuation acceptable in international practice and shall extend to
goods imported into the customs territory of the Kyrgyz
Republic.
2. Methods of determination of customs
value of goods imported into the customs territory of the Kyrgyz Republic shall be established by this
Code.
3. A simplified procedure of customs
valuation according to Article 198 of this Code shall apply to the goods conveyed
by natural persons not for commercial purposes.
4 Control over customs
value shall be carried out by customs bodies in accordance with the procedure
established by an Instruction of the Ministry of Finance of the Kyrgyz
Republic.
Article 224. Procedure of Declaring and Determination of
Customs Value of Goods
1. The customs
value shall be declared to the customs body by declarant at declaring of goods.
The customs
value declared by declarant and information that he provides on its determination
should be based on reliable, quantifiable and documented information.
2. If the documents and information
provided by declarant are not sufficient for making a decision with respect
to the declared customs value, the customs body shall demand in writing additional
documents and information from declarant and shall fix period for their submission
which is to be sufficient for that.
For confirmation of the declared
customs value of goods, declarant should, at the demand of the customs body,
submit all necessary additional documents and information or provide written
explanation of reasons for which the documents and information demanded by the
customs body may not be submitted. The declarant shall have a right to prove
legality of application of a customs valuation method he chose and reliability
of the submitted information.
3. In the absence of data confirming
correctness of determination of customs value declared by the declarant, or
if signs are found that the documents and information submitted by the declarant
are not reliable and (or) sufficient, the customs body shall be entitled to
make a decision on inadmissibility of application of the chosen customs valuation
method and to propose the declarant to apply another method to determine customs
value in compliance with this Code. In this case there may be consultations
between the customs body and declarant with regard to the basis for determination
of customs value.
4. In cases when the declarant does
not submit additional documents and information within the period established
by the customs body, or the customs body discovers signs that the information
submitted by the declarant is not reliable and (or) sufficient and the declarant
refused to determine customs value on the basis of another method, the customs
body shall independently determine customs value of the goods consistently applying
the customs valuation methods. The customs body shall inform the declarant of
the decision made in written form.
5. If at customs clearance of goods
there occurs a need to postpone determination of customs value of goods, the
goods may be released before the end of the procedure of customs valuation with
payment of customs duties and taxes on the basis of temporary (provisional)
valuation of goods established by the customs body, before submission by the
declarant of documents and information confirming the declared customs value,
provided there is security for payment of customs duties and taxes which may
be additionally charged.
6. In case of failure to produce
the mentioned documents and information within the period established by the
customs body in compliance with Item 4 of this Article, temporary (provisional)
valuation shall be considered as customs value of goods for purposes of calculation
and payment of customs duties and taxes, except for cases when the customs body
makes a decision that the customs value is higher or lower than the temporary
(provisional) value.
If as a result of determination
of the customs value it is necessary to make additional payment or customs duties
and taxes should be refunded, they should be executed no later than 10 working
days from the date on which the customs body makes a decision on determination
of the customs value. No penalty fees shall be added to the additional amount
of customs duties and taxes paid within said period.
Article 225. Rights and Obligations of Declarant
The customs value of the goods declared
by declarant and information related to its determination that he provides should
be based on reliable, quantifiable and documented information.
If it is necessary to confirm the
customs value of the goods declared by the declarant, he should, at the demand
of the customs body, provide the latter with necessary information. If the customs
body has doubts regarding the data submitted by the declarant for determination
of the customs value of the goods, the declarant shall have a right to prove
such reliability.
In case of failure to provide proofs
confirming reliability of the data used by the declarant, the customs body shall
be entitled to make a decision on impossibility of applying the method of customs
valuation chosen by the declarant.
If there is a need to clarify the
customs value of the goods declared by the declarant, he shall be entitled to
refer to the customs body with request to submit the declared goods for use
on security of customs payments according to Article 256 of this Code.
Additional costs incurred by the
declarant due to clarification of the declared customs value of the goods or
due to submission of additional information to the customs body shall be covered
by the declarant.
Article 226. Rights and Obligations of the Customs Body
If there are no data confirming
correctness of determination of the customs value of the goods declared by the
declarant, the customs body shall be entitled to release the goods on security
of customs payments according to Article 256 of this Code calculated on the
basis of temporary (provisional) valuation of the goods.
At a written request of the declarant,
the customs body shall be obliged within a month to provide written explanation
of reasons for which the customs value of the goods declared by the declarant
cannot be accepted by the customs body as the basis for calculation of customs
payments and provide information on how the temporary (provisional) value of
the goods was determined.
If the declarant does not agree
with the decision of the customs body with respect to determination of the customs
value of the goods, such decision may be appealed in accordance with the procedure
established by this Code.
Article 227. Methods for Determination of Customs Value of
the Goods
1. Customs value of goods imported
into the customs territory of the Kyrgyz Republic shall be determined by consistently
applying the following methods:
- transaction
value method of imported goods;
- transaction
value method of identical goods;
- transaction
value method of similar goods;
- deductive
value method;
- computed value
method;
- reserve method.
2.
The basic method for determination of customs value of the goods
shall be the transaction value method of imported goods. Where the basic method
can not be applied, then each of the methods mentioned in item 1 of
this Article shall be sequentially applied. Note: where customs value of the
goods can not be determined by applying the previous method, then each subsequent
method shall apply.
Upon the declarant’s request,
the deductive and computed value methods may be applied in any order of the
sequence.
Article 228. Transaction Value Method of Imported Goods
1. The customs value of imported goods shall be the transaction value, that
is the price actually paid or payable for the goods when sold for export to
the Kyrgyz Republic, as of the moment of its crossing the customs border of
the Kyrgyz Republic, adjusted in accordance with the provisions of this Article.
In determining customs value of the goods, the transaction value shall include
the following components unless they have already been included:
a) charges for delivery of goods to the airport or other place of importation
of goods into the customs territory of the Kyrgyz Republic:
- the cost of transport;
- loading, unloading, transshipment and handling costs;
- insurance amount;
b) costs incurred by the buyer:
- commissions and brokerage, except buying commissions;
- the cost of containers and (or) other reusable tare, if under the Goods
Nomenclature they are considered as one with the goods under valuation;
- the cost of packing, whether for labor or materials;
c) the value, apportioned as appropriate, of the following goods and services
where supplied directly or indirectly by the buyer free of charge or at reduced
cost for use in connection with the production or sale for export of the goods
under valuation:
- raw materials, materials, components, semi-finished goods and other
- components incorporated in the goods under valuation;
- tools, dies, moulds and similar items used in the production of the goods
under valuation;
- materials consumed in the production of the goods under valuation (lubricants,
fuel and other);
- engineering, development, design work, art work and plans and sketches undertaken
elsewhere than in the customs territory of the Kyrgyz Republic and directly
necessary for the production of the goods under valuation;
d) license and other fees for use of objects of intellectual property, which
the buyer must pay directly or indirectly as a condition of a sale of the goods
under valuation;
e) the relevant part of direct or indirect proceeds of the seller of any subsequent
resale, transfer or use of the goods under valuation in the territory of the
Kyrgyz Republic.
No additions shall be made to the price of the goods actually paid or payable
except as provided in this Article.
2. The method mentioned may not be applied for determination of customs value
of the goods if:
а) there are restrictions as to the disposition or use of the goods under valuation
by the buyer other than restrictions which:
- are established by legislation of the Kyrgyz Republic;
- limit the geographical area in which the goods may be resold; or
- do not substantially affect the value of the goods;
b) the sale and transaction value are subject to conditions the influence of
which cannot be taken into account;
c) data used by declarant at declaring
customs value of the goods are not documented or quantifiable and reliable;
d) parties of the transaction are related and transaction value
is not acceptable as the basis for determination of customs value according
to requirements of this Article.
Here, persons shall be deemed to be related only if:
- One of the participants of a transaction
(a natural person) or an official of one
of the participants of a transaction is at the
same time an official of the other
participant of the transaction;
- Parties
of the transaction are co-owners of the enterprise;
- Parties of the transaction are bound
with labor relations;
- Other person directly or indirectly
owns or controls at least 5 per cent of the
outstanding voting stock or shares of each of the participants to the
transaction;
- Both
of them are directly or indirectly controlled by a third person;
- Parties of the transaction together
directly or indirectly control a third
person;
- One
of the participants to the transaction is under direct or indirect control of the other participant
to the transaction;
- Participants
to the transaction or their officials are relatives.
3. Relationship between the parties
of a transaction shall not be itself a sufficient ground to deem that transaction
value is unacceptable.
In such case circumstances accompanying
the transaction should be examined, and its value should be recognized as acceptable
for determination of the customs value if relationship had no impact on the
price.
If the customs body has grounds
to suppose that relationship of the parties of the transaction affected the
price of the goods, in this case the declarant shall be provided with recommendation
(at request of the declarant, in writing). Here, the declarant shall be provided
with the period for the response within 90 days.
At request of the declarant,
transaction value shall be taken as a basis for determination of customs value,
if the declarant provides documented information that it is close to one of
the following values established approximately at the same time:
a) transaction value of identical
or similar goods between the parties, which are not related;
b) customs value of identical
goods or similar goods determined by the deductive value method;
c) customs value of identical
or similar goods determined by the computed value method.
At submission by the declarant
of prices for comparison, their respective adjustment shall be made with taking
into account difference in the commercial level (wholesale, retail), quantity,
other elements listed in Item 1 of this Article, as well as other costs of the
seller arising from the transaction between persons that are not related, if
such costs are not incurred by the seller in the transaction between related
persons.
In the above mentioned case the
information submitted by the declarant shall be used only for the purpose of
comparison.
Article 229. Transaction Value Method of Identical Goods
1. When applying the transaction
value method of identical goods
transaction value of identical
goods shall be accepted as the basis for determination of customs value of the
goods subject to the conditions mentioned in this Article. Identical goods shall
mean goods similar in all respects to the goods under valuation, including the
following characteristics:
- physical characteristics;
- quality and
reputation in the market;
- country of
origin;
- producer.
Insignificant differences in appearance
may not be grounds to refuse to treat the goods as identical if in all other
respects such goods comply with requirements of this item.
2. Transaction value of identical
goods shall be taken as the basis for determination of customs value of the
goods, if these goods:
a) were sold for importation
into the customs territory of the Kyrgyz Republic;
b) were exported for importation
into the customs territory of the Kyrgyz Republic at the same time or in the
period before or after 30 days with the goods under valuation;
c) were exported for importation
into the customs territory of the Kyrgyz Republic approximately in the same
quantity and (or) at the same commercial level (wholesale, retail). In case
if identical goods were imported in other quantity and (or) at other commercial
level, the declarant should make a respective adjustment of their price taking
into account such differences and confirm by documents its justification to
the customs body.
3. Customs value of the goods
determined with the use of transaction value of identical goods should be adjusted
taking into account considerable differences in the expenses mentioned in Sub-item
"а" of Item 1 of Article 228 of this Code.
An adjustment should be performed
by the declarant on the basis of reliable information confirmed by documents.
4. In case, if in application
of this method more than one transaction value of identical goods is discovered,
the lowest value shall apply for determination of value of the imported goods.
Article 230. Transaction Value Method of Similar Goods
1. When applying the transaction
value method of similar goods, transaction value of the goods similar with the
imported ones shall be taken as the basis for determination of customs value
of the goods subject to conditions mentioned in this Article. Similar goods
shall mean goods which, although not similar in all respects, have similar characteristics
and consist of similar components that allows them to fulfill the same functions
as the goods under valuation and be commercially interchangeable. In determining
the similarity of the goods the following features shall be taken into account:
- quality, the fact of a trademark
and reputation in the market;
- country of origin;
- producer.
2. Provisions of Items 2-4 of
Article 229 of this Code shall apply when applying the method of determination
of customs value of the goods with the use of transaction value of similar goods.
3. When applying the method of
customs valuation of the goods on the basis of provisions of Article 229 and
this Article:
a) goods shall not be deemed
as identical with goods under valuation or similar with them if they were not
produced in the same country as the goods under valuation;
b) goods produced
by an entity other than the producer of the goods under valuation shall be taken
into account only if there are no identical or similar goods produced by the
manufacturer of the goods under valuation;
c)
goods shall not be considered identical or similar if their engineering, research,
artwork and design, plans and sketches, and other similar works are undertaken
in the Kyrgyz Republic and provided free of charge
or at a reduced price in relation to their production and sale for exportation
to the Kyrgyz Republic.
Article 231. Deductive Value Method
1. Customs value of the goods
shall be determined by the deductive value method in a case if the goods under
valuation, identical or similar goods are sold in the territory of the Kyrgyz
Republic without changing its primary condition.
2. When applying the deductive
value method, the unit price of the goods, at which the goods under valuation,
identical or similar goods are sold in the greatest quantities in the territory
of the Kyrgyz Republic, no later than 90 days from the date of importation of
the goods under valuation, to the party of the transaction that is not related
with the seller, shall be taken as the basis for determination of the customs
value of the goods.
3. The following components shall
be deducted from the unit price of the goods:
a) commissions usually paid (or agreed to be paid) or the
additions usually made for profit and general expenses in connection with sales
in the customs territory of the Kyrgyz Republic of imported goods of the same
class or kind;
b)
amounts of import customs duties, taxes, fees and other payments payable in
the Kyrgyz Republic by
reason of the importation or sale of the goods;
c)
the usual costs of transport, insurance, loading and unloading incurred within
the Kyrgyz Republic.
4. Goods of the same class or
kind shall imply a group of goods, which relate to the products of a certain
industry, including identical and similar goods.
If neither the goods under valuation
nor identical nor similar goods are sold at or about the time of importation
of the goods under valuation, the price per unit at which the goods under valuation,
identical or similar goods are sold in the Kyrgyz Republic at the earliest time
after importation, but not later than 90 days from the date of importation of
the goods under valuation, shall be taken as the basis for determination of
the customs value.
5. If neither the goods under valuation nor identical nor similar
goods are sold in the condition as imported, then, if the declarant so requests,
the unit price of the goods after further processing with an adjustment for
the value added and subject to provisions of items 2 and 3 of this Article may
be used.
Article 232. Computed Value Method
When applying the comoputed value
method, the price calculated by computation of the following shall be used as
the basis for determination of customs value of the goods:
a) the cost of materials and costs incurred by manufacturer
in relation to production of the goods under valuation;
(b) general costs typical for sale
to the State of importation from the country of exportation of goods of the
same type, including costs on transportation, loading and unloading operations,
insurance to the place of crossing the customs border of the State of importation,
and any other costs;
c) profit which is usually derived
by exporter as a result of delivery of such goods to the State of importation.
Article 233. Reserve Method
In cases where customs value
of the goods may not be determined by the declarant through the consecutive
application of the customs valuation methods mentioned in Articles 228-233 of
this Code or the customs body reasonably thinks that these customs valuation
methods cannot be applied, the customs value of the goods under valuation shall
be determined with taking account the world practice.
When applying the reserve method
the customs body shall provide the declarant with the available price information.
No customs value shall be determined under the reserve method
on the basis of:
(a) the price of the goods in the domestic market of the exporting
country;
(b) the cost of production other than computed values which
have been
determined for identical and similar goods;
(c) minimum customs value;
(d) price of the goods which are
delivered from the country of its
exportation to third countries;
(e) price in the domestic market
of the Kyrgyz Republic
for
domestic goods;
(f) arbitrarily established or
reliably unsupported price of the goods.
When determining customs value, a system which provides for
use for customs
purposes of the higher of two alternative values may not be
accepted as the basis.
Article 234. Procedure for Calculation of Customs Duties and
Taxes
1.
Customs duties and taxes shall be calculated by the declarant, customs broker
or other persons, responsible for making customs payments independently, except
for cases stipulated in Item 3 of Article 206 of this Code and in Item 2 of
this Article.
2.
When presenting a claim on customs payments according to Article 261 of this
Code, the customs bodies shall calculate payable customs duties and taxes.
3.
Payable customs duties and taxes shall be calculated in the national currency
of the Kyrgyz Republic,
except for cases stipulated by Section IV of this Code.
Article 235. Application of Rates for Customs Duties and Taxes
1. The rates effective as of the
date of receipt of the customs declaration by the customs body shall apply for
purposes of calculation of customs duties and taxes, except for cases stipulated
in Item 1 of Article 237 of this Code.
2. The rates compliant with description and classification
of goods according to the Customs Tariff of the Kyrgyz Republic and other normative
acts of the Kyrgyz Republic shall apply for purposes of calculation of customs
duties and taxes, except for a case stipulated by the second paragraph of this
Item, as well as at application of flat rates of customs duties and taxes to
the goods conveyed through the customs border by natural persons in accordance
with a simplified and privileged procedure (Article 192).
When declaring goods of several descriptions with indication
of one tariff code under the Goods Nomenclature of Foreign Trade according to
Article 290 of this Code, the rates of customs duties and taxes corresponding
to this code shall apply to all such goods.
Article 236. Conversion of Foreign Currency for Purposes of
Calculation of Customs Duties and Taxes
In cases when for purposes of calculation
of customs duties and taxes, including determination of customs value of goods,
it is required to convert foreign currency, the rate of the foreign currency
to the national currency of the Kyrgyz Republic established by the National
Bank of the Kyrgyz Republic and effective as of the date of receipt of the customs
declaration by the customs body shall apply, except for cases stipulated this
Code .
Article 237. Calculation of Customs Duties and Taxes at Illegal
Conveyance of Goods through the Customs Border or Use of Goods with Violation
of the Established Restrictions
1. With respect to goods imported
into the customs territory of the Kyrgyz Republic with violation of requirements
and conditions established by this Code, and with respect to which customs payments
were not made, the amounts of due customs payments shall be calculated based
on rates of customs duties and taxes effective as of the date of crossing the
customs border; if such date cannot be established, as of the date of identification
of such goods by customs bodies. In case of loss, failure to deliver or issue,
without permission of the customs bodies, of goods conveyed or stored in compliance
with customs procedures of domestic customs transit or temporary storage, the
amounts of due customs payments shall be calculated based on the rates effective
as of the date of placement of the goods under a certain customs procedure.
In case of illegal exportation of
goods outside the customs territory of the Kyrgyz Republic the amounts of due
customs payments shall be calculated based on the rates of customs duties and
taxes effective as of the date of crossing the customs border; if such date
cannot be established, as of the first day of a month or the first date of the
first month of a year during which the goods were exported.
2. For purposes of calculation of
customs duties and taxes of goods imported into the customs territory of the
Kyrgyz Republic, the customs value of the goods, their quantity or other characteristics,
used for determination of the tax base, as of the date of application of rates
of customs duties and taxes according to Item 1 of this Article shall be used
as a tax base.
The amount of the value added tax
paid at circulation of goods shall be deducted from the amounts of customs payments
with respect to the goods imported into the customs territory of the Kyrgyz
Republic in the amount confirmed by the documents used for calculation
of the value added tax in compliance with the tax legislation of the Kyrgyz
Republic.
3. In case where conditionally released
goods are used for purposes other than those with respect to which full or partial
exemption from payment of customs duties and taxes is granted, the rates of
customs duties and taxes shall apply, which are effective as of the date of
receipt of the customs declaration by the customs body. Customs value of goods,
their quantity or other characteristics, used for determination of the tax base,
shall be established as of the date of application of rates of customs duties
and taxes. |
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