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Apr 5, 2021
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What is zero duty?

After Moldova signed an association agreement with the EU, which provides for the creation of a free trade zone between them, Russia in 2014 introduced customs duties on the import of agricultural products from this republic.

In 2019, for a part of goods (vegetables, fresh apples, pears, quince, apricots, cherries, cherries, peaches, including nectarines, plums, sunflower seeds, crushed and not crushed, cooked or canned vegetables, natural grape wines, including fortified, grape must ) zero duties were introduced. They were extended every six months, most recently for three months, until March 31, 2021. From April 1, 2021, the preferential zero duty ceased to operate.

What is the zero duty?

In connection with the movement of goods across the customs border, the customs authorities charge a mandatory payment – the customs duty, which is an essential condition for the import or export of goods. The duties serve to replenish the state treasury and perform the function of state regulation of the economy. For individual countries, duties may be set below the minimum rates, and sometimes even zero. Temporary zeroing of the rate of customs duties on the import of agricultural products, raw materials and food is carried out in order to curb the growth of prices for imported products. Zero duties can be imposed on other goods as well. Zeroing is especially advisable for those positions where dependence on imports remains.

So, in 2020, the Eurasian Economic Commission decided to zero import duties on a number of goods that are imported into the countries of the Eurasian Economic Union (EAEU) in order to prevent coronavirus, in particular on medical devices. The action of the measure was extended several times, at the same time the list of products was also corrected. The last time this happened was in October – the measure was extended until March 31, 2021. Since April 1, the list of duty-free imported products has been excluded from goods, the production of which was established in the EAEU.

What other customs fees are paid when importing goods?

In addition to customs duties, value added tax (VAT), excise taxes (excise tax or excise duty) and customs duties may be levied on the import of goods.

The amount of VAT depends on the category of goods and is 10% or 20%. All importers must pay import VAT. In some cases, the import of goods is not subject to VAT. For example, if medical goods are imported into Russia, the sale of which is not subject to VAT in our country (clause 2 of article 150 of the Tax Code of the Russian Federation).

Excise tax is levied only for certain groups of goods. These primarily include tobacco products, as well as oil products, vehicles and alcohol. The amount of the excise tax is also determined depending on what kind of goods are imported or exported.

Customs duty is a mandatory payment that is charged for the provision of customs control and clearance services. The rates depend on the customs value of the goods.

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