New rules have been established regarding the temporary storage of goods transported across the customs border by individuals.
elchi reports with reference to trend that the relevant law adopted on June 19 in connection with amendments to the Customs Code came into force on September 3.
According to the law, the placement of goods in a temporary storage warehouse will be carried out based on a simplified declaration submitted by individuals and an act drawn up by customs authorities.
The duration of stay of goods in temporary storage warehouses will be determined by customs authorities, taking into account their characteristics, for a period not exceeding 1 month.
Food products brought by individuals into the customs territory in excess of the limit set by the relevant executive authority and not intended for production or commercial purposes will not be allowed to be placed in a temporary storage warehouse. In this case, the goods must be returned from the customs territory based on the person’s choice or destroyed in the presence of a customs official.
If it is not possible to immediately remove goods prohibited from being brought into the customs territory, the maximum storage period for such goods in a temporary storage warehouse is 3 days.
During the period of stay of goods in a temporary storage warehouse, individuals have the following rights:
– to take the goods by paying the required customs duties, as well as by submitting the relevant license or permit document when provided for in the Law “On Licenses and Permits”;
– to return the goods from the customs territory;
– to abandon the goods in favor of the state.
A customs fee in the amount determined by the relevant executive authority will be paid for the storage of goods in a temporary storage warehouse.
The form of the act on the placement of goods in a temporary storage warehouse will be determined by the relevant executive authority.
Temporary storage declaration
Foreign goods presented to customs authorities will be placed in temporary storage based on a temporary storage declaration.
Documents whose list is determined by the relevant executive authority will be submitted together with the temporary storage declaration.
The temporary storage declaration will be submitted to the customs authority together with the goods by the person who brought the goods into the customs territory, the person acting on their behalf, the person responsible for the transport of the goods after they have been brought into the customs territory, the person who immediately places the goods under the relevant customs procedure, the owner of the storage facilities, or one of the persons operating in a free zone.
A short import declaration containing the information necessary for the application of temporary storage or transport documents replacing it will be accepted as a temporary storage declaration, depending on the completeness of that information.
The temporary storage declaration will be used in the following cases:
– during the confirmation of the import of goods into the customs territory for which a mandatory decision has been made;
– during the presentation of goods to customs authorities;
– during the placement of goods placed in temporary storage under another customs procedure or their re-export.
For the placement of foreign goods transported under the transit special customs procedure in temporary storage, a transit document will be accepted by customs authorities as a temporary storage declaration. After the transit special customs procedure is completed, a temporary storage declaration will be issued.
Except for the cases provided for in the following paragraph, corrections to the temporary storage declaration submitted to customs authorities will be allowed based on the declarant’s request. Corrections made to the temporary storage declaration cannot be applied to goods not previously covered by it.
In the following cases, corrections to the temporary storage declaration submitted to customs authorities will not be allowed:
– after customs authorities have notified the declarant of their intention to inspect the goods;
– after customs authorities have determined that the information in the temporary storage declaration is incorrect.
The temporary storage declaration will be canceled by the customs authority upon the declarant’s request, as well as if the declared goods are not presented to customs authorities within 1 month.
Conditions and obligations for placing goods in temporary storage
Temporary storage of foreign goods will be carried out without the collection of import customs duties, value-added tax on imports, and excises, and without the application of trade policy measures, in temporary storage warehouses that meet the requirements set by the relevant executive authority, as well as in other storage places agreed upon with customs authorities and under customs control. Other storage places agreed upon with customs authorities must meet the requirements for storage warehouses.
Customs authorities have the right to demand security from the owner of the goods for any customs debt that may arise.
To ensure that goods placed in temporary storage remain in their current state, they may be subjected to ordinary forms of handling. In such cases, changing the appearance and technical characteristics of the goods will not be allowed.
The owner of temporary storage warehouses and storage places is responsible for:
– the evasion of goods placed in temporary storage from customs control;
– the fulfillment of obligations arising from the storage of goods.
If it is not possible to store goods in a temporary storage warehouse, or if they are not declared for placement under another customs procedure or re-exported before the expiration of the temporary storage period, such goods will be disposed of in the established manner.
Customs authorities will allow the storage of domestic goods in a temporary storage warehouse in the manner determined by the relevant executive authority.
With the consent of customs authorities, goods in temporary storage will be transported between different temporary storage warehouses under customs control.
The relevant executive authority will publish the list of temporary storage warehouses, including other storage places agreed upon with customs authorities, place it on its official internet information resource, and ensure the constant updating of the information.
The relevant executive authority will determine the requirements for the types, structure, equipment of temporary storage warehouses, operations related to goods placed there, accounting and reporting, the implementation of customs control, and the warehouse owner.
Duration of stay of goods in temporary storage
Except for cases where a shorter period is determined by the relevant executive authority depending on the properties and characteristics of individual goods, the duration of stay of goods in temporary storage should not exceed 4 months.
The duration of stay of goods in temporary storage will be determined by the customs authority, taking into account the characteristics of the goods and the transport vehicle used, as well as the time required for submitting the customs declaration. If there is a reasoned request from the person who submitted the temporary storage declaration, the customs authority will extend that period within the limits specified in the paragraph above.
Goods must be declared for placement under another customs procedure or re-exported before the expiration of the temporary storage period.
It should be noted that this draft law was first presented at the meeting of the Economic Policy, Industry and Entrepreneurship Committee of the Milli Majlis held on April 29.
Speaking at the meeting, Chairman of the State Customs Committee Shahin Bagirov stated that among the main goals of the project, the further development of Azerbaijan’s transit potential, the promotion of the reliable partnership institution, the expansion of simplifications in customs operations, as well as the application of modern and flexible approaches in customs control occupy a special place.
Speaking about the innovations related to the development of transit potential, Shahin Bagirov emphasized the importance of applying the “one electronic declaration” principle in multimodal transport. It was noted that innovations such as integration into international transit systems and the digitalization of transit operations will also serve to further strengthen Azerbaijan’s position as a transit country.
When discussing the changes envisaged in the project in the direction of promoting reliable partnership, information was provided about the expansion of the scope of the Authorized Economic Operator status and the improvement of the customs representation institution.
Among the proposed innovations related to simplifications in customs operations, the electronization of administrative acts, the expansion of electronic document circulation, as well as the application of the Trade Facilitation Centers concept were specifically noted.
It was emphasized that these changes will serve to strengthen the legitimacy of administrative processes, reduce the administrative burden on business entities, and form a more favorable legal environment. At the same time, it was brought to attention that the legal bases of customs control and audit mechanisms have been clarified in the document, and new procedures have been established in this area.
It was noted that the preparation of a separate rule for the implementation of customs control forms, and the provision of proportionality, justification, documentation, video recording, and complaint mechanisms in those rules serve to ensure human rights and freedoms.
It was emphasized that the new edition of the Customs Code will create a favorable legal basis for the transition of customs regulation to a more flexible, transparent, and business-oriented model, for the more operational and efficient organization of foreign trade operations, and for the expansion of the country’s transit and logistics capabilities.