Outline of Available Customs Regimes in the UK

As goods and materials move across national frontiers, managing the customs function is a key factor to success within the efforts of supply-chain management. When supply-chains take on an international dimension it is essential to take account of customs requirements and procedures. Failure to take account of customs law can, in extreme cases, lead to the commitment of a criminal offence. Inefficient management of customs control can lead to increased inventory costs, delays at frontiers and loss in supply-chain responsiveness.

There is a number of customs regimes available to traders in the UK that could enhance a firm’s competitiveness in terms of cash flow, duty liability and customs clearance time. Trade-off considerations that need to be made are the advantages that an available regime may bring, against any compliance/accounting/reporting costs, operating costs and any commercial restrictions imposed by the regime.

Regimes available at import include:

· Import into Free Circulation – customs duty and import VAT (Value Added Tax) is paid and goods are removed from customs control; some goods may be subject to import licences and policy measures;

· Customs Warehousing – enables goods to be stored without payment of import duty or VAT until released for free circulation or placed under another customs regime;

· Free Zones – enable goods to be stored and processed without payment of import duty or VAT;

· Inward Processing Relief (IPR) suspension/drawback – allows conditional relief from duty on imported materials and components for use in manufacture of products for export; under IPR, suspension duty is suspended while under IPR drawback duty is paid and later reclaimed;

· Processing under Customs Control – allows specific dutiable components and materials to be imported without payment of duty, processed into finished products and released for free circulation at the duty rate of the finished good – this rate may be lower than the rate of the components and materials used in the production process;

· Temporary Importation – gives relief from duty for goods imported for a given period of time – maximum 24 months – and re-exported in the same state;

· Returned Goods Relief – allows relief on re-importation of goods previously exported;

· End Use – reduced/zero duty rates for goods intended for specified end use;

· Other – goods are re-exported, destroyed or otherwise disposed of without payment of duty.

Regimes available at export are:

· Export – goods leaving the EU may be subject to licensing requirements, export duties and commercial policy measures;

· Outward Processing Relief – allows relief from duty on EU goods re-imported after repair or process abroad;

· Community Transit – an EC customs procedure which controls and facilitates the movement of certain goods from one part of the EC to another – delaying duty and VAT payment;

· ATA Carnet (Temporary Admission) – may be used to simplify customs clearance of temporarily exported goods; the carnet replaces normal customs documents both at export and re-import;

· TIR Carnet (International Road Transports) – subject to certain conditions, these allow goods to travel across national frontiers with the minimum of customs formalities; duty and VAT free.

Regimes available outside the European Union:

Outside the EU, other customs regimes may exist that could give an international supply-chain similar competitive advantages. Examples would be free trade zones, export processing zones or tariff suspension for industries identified to be essential in developing the governing economy. Any one of these regimes could give a business considerable advantage in managing costs and duty liabilities and should be considered when planning and managing an international supply-chain.

Exercise 9.Choose the right answer.

1. What can failure to take account of customs law lead to?

a) commitment of administrative offence; b) commitment of criminal offence;

c) law-breaking; d) punishment.

2. What are the advantages that an available regime may bring?

a) cash flow; b) duty liability;

c) trade-off considerations; d) customs clearance time.

3. What could enhance a firm’s competitiveness in terms of cash flow, duty liability and customs clearance time?

a) customs regimes; b) trade-off considerations;

c) supply-chain responsiveness; d) commercial restrictions.

4. What regime is not included in the regimes available at import?

a) end use; b) community transit;

c) import into free circulation; d) free zones.

5. What does Customs Warehousing enable to be stored without payment of import duty?

a) duty; b) cash; c) materials; d) goods.

6. What is a key factor to success within the efforts of supply-chain management?

a) managing the customs function; b) completing customs regime;

c) international dimension; d) firm’s competitiveness.

7. What disadvantages may the regime bring?

a) export; b) duty-free trade;

c) any costs and commercial restrictions; d) free circulation.

8. What regime enables goods to be stored and processed without VAT?

a) Free circulation; b) Free Zones;

c) Community transit; d) No regime.

9. How many regimes are available at export?

a) three; b) five; c) nine; d) four.

10. What is VAT?

a) Voluntary Aid Tax; b) Video Audio Text;

c) Value Action Team; d) Value Added Tax.

Exercise 10.Translate the following terms into Russian. Give your own definition to them (in English) and learn these terms by heart.

1. export; 2. an inventory; 3. a warehouse; 4. an exemption; 5. to defer; 6. a restriction; 7. to impose; 8.to enhance; 9. to suspend; 10. a carnet.

Exercise 11. Write an outline of the text.

COMPREHENSION

Exercise 12.Fill in the table. Add two more categories for comparison.

	Russian Federation	United Kingdom
Import Regimes
Export Regimes
Free Regimes

Exercise 13. Fill in the gaps using the words given below, and translate the sentences into Russian.

goods warehouse regime customs control importers

customs borders extend the term customs clearance customs procedures

full exemption temporary import regime

1. To use Free Circulation regime, … must observe all import requirements and customs duties and taxes must be paid in full. 2. The International customs transit is performed under … . 3. Under Internal proceeding regime, imported …, except those prohibited from import, are processed in Russia within a time period not exceeding two years for eventual export from Russia. 4. Using ATA Carnet quickens and simplifies the … . 5. Under the customs …, any goods imported into Russia are stored in specially-allocated rooms or territories in the custody of customs authorities. 6. Goods can be imported under the … for a maximum period of two years. 7. The customs authorities can … of a temporary import if the importer has not violated the terms of the importation regime. 8. The Customs Code allows the temporary import of goods with …, that is without monthly fees, in three circumstances. 9. We have the very latest online services to facilitate instant, paperless … and goods removal facilities from anywhere within the United Kingdom. 10. The new Russian customs code provides for more complete and detailed regulation of goods and vehicles crossing Russia’s … .

Exercise 14.Replace the underlined words with the synonymous terms from the texts.

1. The weather is a condition to be taken into consideration. 2. Thus, for both ethical and political reasons, leadership is a responsibility as well as a right. 3. The USA is a major shipper of Venezuelan oil. 4. This discharge from taxes on services is extended only to the official residences of heads of diplomatic missions and international organizations. 5. The regional branches of the Bank of Russia shall not be legal entities and they shall have no right to emit normative acts or grant bank guarantees. 6. To ride out he had to ask consent from the commissioner. 7. It was entirely in his character to put off action in this way for the better part of the day. 8. High debt burden continues to guide to a net loss. 9. That will strengthen the authority of the Convention and raise confidence in it. 10. Such concerns may include, for instance, deferment in hearing the cases.

Exercise 15.a)Match the verbs on the left with the nouns on the right.

1. to enter	a) competitiveness;
2. to provide for	b) across national frontiers;
3. to pay	c) the customs territory;
4. to choose	d) enable goods;
5. to enhance	e) sum of money;
6. to charge	f) interest;
7. to move	g) delays at frontiers;
8. to take	h) a full and partial exemption;
9. to store	i) account of customs requirements;
10. to lead to	j) a different customs regime.

b) In the sentences below replace the Russian expressions with the phrases you have got. Use these expressions in the necessary form.

1. Ensure that Customs requirements (примут во внимание) the interests and constraints of the airline industry. 2. If customs officers don’t work hard it (приведет к задержкам на границе). 3. There are warehouses at the Customs where you can (хранить товар). 4. The goods shall (ввозиться на таможенную территорию) of Georgia with full observation of customs formalities. 5. Credit cards (начисляют проценты) and are primarily used for short-term financing. 6. Importers must (выбрать таможенный режим), under which to import their goods into Russia. 7. Some European tax systems (обеспечивают полное или частичное освобождение) for both foreign branch income. 8. What authorities can do to (повысить) a firm’s (конкурентоспособность)? 9. I (оплатил денежную сумму) as the down payment on a new car, but the agent delayed importing it. 10. The final objective of cooperation in Trade, Customs and Monetary Affairs is to achieve a unified single economic space within which goods are able to (свободно перемещаться через государственные границы).

WRITING AND COMMUNICATION

Exercise 16.Write an essay on one of the given topics and discuss it with your partner.

1. Basic Customs Regimes.

2. Economic Customs Regimes.

3. Special Customs Regimes.

Exercise 17. Translate the following sentences from Russian into English.

1. Выбор таможенной процедуры осуществляется самостоятельно декларантом или таможенным брокером. 2. Перемещение товаров и транспортных средств через российскую таможенную границу производится в соответствии с заявленными таможенными режимами. 3. Таможенный режим отказа в пользу государства – безвозмездная передача ввезенного груза государству производится без оплаты каких либо таможенных платежей. 4. В зависимости от роли и места таможенных режимов в общем процессе хозяйственной деятельности их можно условно разделить на две группы. 5. Под таможенный режим транзита могут помещаться любые товары, за исключением товаров, транзит которых запрещен в соответствии с законодательством Российской Федерации. 6. При проведении грузовых операций таможенные органы вправе проводить таможенный досмотр транзитных товаров. 7. Вам следует знать порядок применения таможенных пошлин, налогов и ограничений при помещении товаров под таможенный режим беспошлинной торговли. 8. Таможенные склады могут принадлежать как юридическим лицам, так и таможенным органам. 9. Решение о продлении срока хранения товаров на таможенном складе принимает начальник таможни. 10. Действие таможенного режима приостанавливается при помещении иностранного товара под таможенный режим таможенного склада.

PROJECT WORK

Imagine that you are a customs officer. You are going to create a website on customs regimes. Think about links on different customs regimes you will use in the Internet, magazines and books. Find some pictures that relate to your texts. Arrange them so to see which text belongs to which link on customs regime.

Unit 5.