Customs procedure of duty-free trade

Article 243. Content and application of the customs procedure of duty-free trade

1. Customs procedureduty-free trade is a customs procedure applied to foreign goods and goods of the Union, according to which such goods are located and sold at retail in duty-free shops without payment of import customs duties, taxes, special, anti-dumping, countervailing duties in respect of foreign goods, subject to the conditions of placing goods under this customs procedure and their use in accordance with such customs procedure.
2. Goods placed under the customs procedure of duty-free trade are sold:
   1. individuals departing from the customs territory of the Union;
   2. individuals arriving at the customs territory of the Union;
   3. individuals traveling from one Member State to another Member State and individuals entering one Member State from another Member State;
   4. diplomatic missions, consular offices, representations of States to international organizations, international organizations or their representations located in the customs territory of the Union, as well as members of the diplomatic staff of a diplomatic mission, consular officials and members of their families who live with them, staff (employees, officials) of State missions to international organizations, international organizations or their representative offices;
   5. other organizations or their representative offices and their personnel, if such implementation is provided for in accordance with the legislation of the Member State in whose territory such organizations or their representative offices are located.
3. Goods placed under the customs procedure of duty-free trade are sold to the persons specified in subitems 1 - 3 of paragraph 2 of this Article in duty-free shops operating in places of movement of goods across the customs border of the Union.
4. The sale of goods to persons specified in subparagraph 2 of paragraph 2 of this Article is allowed in duty-free shops operating in places of movement of goods across the customs border of the Union by air and water means of transport, and if this is established by the legislation of the Member States, also in places of movement of goods across the customs border of the Union by other modes of transport.
   The list of places of movement of goods across the customs border, in which the sale of goods to persons specified in subparagraph 2 of paragraph 2 of this article is allowed, is determined by the legislation of the Member States.
5. The sale of goods to persons specified in subparagraph 3 of paragraph 2 of this Article is allowed in duty-free shops operating in places of movement of goods across the customs border of the Union by air.
6. Goods placed under the customs procedure of duty-free trade are sold to the persons specified in subparagraphs 4 and 5 of paragraph 2 of this Article in duty-free shops determined in accordance with the legislation of the Member States.
7. Union Goods placed under the customs procedure of duty-free trade, sold to individuals specified in subparagraph 1 of paragraph 2 of this article, lose the status of goods of the Union.
   The goods of the Union placed under the customs procedure of duty-free trade, sold to the persons specified in subparagraphs 2-5 of paragraph 2 of this Article, retain the status of goods of the Union.
   Foreign goods placed under the customs procedure of duty-free trade, sold to the persons specified in subparagraphs 4 and 5 of paragraph 2 of this article, after such sale acquire the status of goods of the Union.
8. The customs procedure of duty-free trade does not apply to goods prohibited for circulation in accordance with the legislation of the Member State in whose territory the duty-free shop is located.
   The Commission has the right to determine the list of other goods in respect of which the customs procedure of duty-free trade is not applied. (see the Decision of the Board of the Eurasian Economic Commission No. 203 of 11.12.2018)
9. Without being placed under the customs procedure of duty-free trade, goods necessary to ensure the functioning of these duty-free shops can be placed and used in duty-free shops.

Article 244. Conditions for placing goods under the customs procedure of duty-free trade and their use in accordance with such customs procedure

1. The condition for placing goods under the customs procedure of duty-free trade is compliance with prohibitions and restrictions in accordance with Article 7 of this Code.
2. The declarant of goods placed under the customs procedure of duty-free trade can only be a person who is the owner of a duty-free shop in which these goods will be located and sold.
3. The conditions for the use of goods in accordance with the customs procedure of duty-free trade are:
   1. finding goods in duty-free shops;
   2. sale of goods in duty-free shops to persons specified in paragraph 2 of Article 243 of this Code;
   3. compliance with the conditions for the sale of certain categories of foreign goods placed under the customs procedure of duty-free trade, provided for in Article 245 of this Code.

Article 245. The condition for the sale in duty-free shops of certain categories of goods placed under the customs procedure of duty-free trade

Such goods as alcoholic beverages and beer, tobacco and tobacco products placed under the customs procedure of duty-free trade are sold in duty-free shops to the persons specified in subparagraph 2 of paragraph 2 of Article 243 of this Code, in quantitative norms, within whichgoods for personal useimported into the customs territory of the Union without payment of customs duties and taxes.

Article 246. Completion and termination of the customs procedure of duty-free trade

1. The effect of the customs procedure of duty-free trade ends with the sale of goods placed under this customs procedure in duty-free shops to persons specified in paragraph 2 of Article 243 of this Code, with the exception of the sale of foreign goods to persons specified in subparagraph 3 of paragraph 2 of Article 243 of this Code.
2. When selling foreign goods placed under the customs procedure of duty-free trade in duty-free shops to the persons specified in subparagraph 3 of paragraph 2 of Article 243 of this Code, the effect of the customs procedure of duty-free trade ends with the placement of these foreign goods under the customs procedure of release for domestic consumption.
3. A declaration for goods in respect of foreign goods specified in paragraph 2 of this Article for their placement under the customs procedure of release for domestic consumption must be submitted by the owner of a duty-free shop no later than 10-gothe date of the month following the month of sale of these goods.
   In case of refusal to release goods, a declaration for goods in respect of these goods for their placement under the customs procedure of release for domestic consumption must be submitted by the owner of the duty-free shop no later than 5 working days from the day following the day of refusal to release goods.
4. The effect of the customs procedure of duty-free trade in respect of foreign goods placed under the customs procedure of duty-free trade may be completed:
   1. placing goods under the customs procedures applicable to foreign goods under the conditions provided for by this Code;
   2. the release of goods for use as supplies exported from the customs territory of the Union on board water or aircraft, in accordance with Chapter 39 of this Code.
5. The effect of the customs procedure of duty-free trade in respect of the goods of the Union placed under the customs procedure of duty-free trade may be completed:
   1. placing goods under the customs procedure of export;
   2. export of goods from a duty-free shop to the customs territory of the Union on the basis of the declarant's application for such goods.
6. In case of termination of the operation of a duty-free shop within 3 months from the day following the day of termination of the operation of the said duty-free shop, foreign goods placed under the customs procedure of duty-free trade are subject to placement under customs procedures applicable to foreign goods, and the goods of the Union are placed under the customs procedure of export or export from the duty-free shop to the customs territory of the Union.
   If such actions are not performed within the specified period, the customs procedure of duty-free trade is terminated after this period, and the goods are detained by the customs authorities in accordance with Chapter 51 of this Code.

Article 247. The emergence and termination of the obligation to pay import customs duties, taxes, special, anti-dumping, countervailing duties in respect of foreign goods placed (placed) under the customs procedure of duty-free trade, the term of their payment and calculation

1. The declarant is obliged to pay import customs duties, taxes, special, anti-dumping, countervailing duties in respect of foreign goods placed under the customs procedure of duty-free trade from the moment the customs body registers the goods declaration.
2. The obligation to pay import customs duties, taxes, special, anti-dumping, countervailing duties in respect of foreign goods placed (placed) under the customs procedure of duty-free trade is terminated by the declarant upon the occurrence of the following circumstances:
   1. sale of these goods to the persons specified in sub-paragraphs 1, 2, 4 and 5 of paragraph 2 of Article 243 of this Code;
   2. placing these goods sold to the persons specified in subparagraph 3 of paragraph 2 of Article 243 of this Code under the customs procedure of release for domestic consumption;
   3. placing these goods under the customs procedures provided for by this Code, including placing these goods under customs procedures after the occurrence of the circumstances specified in subparagraph 2 of paragraph 4 of this Article, and (or) their release for use as supplies exported from the customs territory of the Union on board water or aircraft, in accordance with Chapter 39 of this Code;
   4. placing goods in respect of which the customs procedure of duty-free trade has been terminated under customs procedures in accordance with paragraph 7 of Article 129 of this Code;
   5. fulfillment of the obligation to pay import customs duties, taxes, special, anti-dumping, countervailing duties and (or) their collection in the amounts calculated and payable in accordance with paragraph 5 of this article;
   6. recognition by the customs authority in accordance with the legislation of the member states on customs regulation of the fact of destruction and (or) irretrievable loss of foreign goods as a result of an accident or force majeure or the fact of irretrievable loss of these goods as a result of natural loss under normal conditions of transportation (transportation) and (or) storage, except in cases when prior to such destruction or irrevocable loss in accordance with this Code in respect of these foreign goods, the deadline for payment of import customs duties, taxes, special, anti-dumping, countervailing duties has come;
   7. refusal to release goods in accordance with the customs procedure of duty-free trade - with respect to the obligation to pay import customs duties, taxes, special, anti-dumping, countervailing duties that arose during the registration of the goods declaration;
   8. revocation of the declaration for goods in accordance with Article 113 of this Code and (or) cancellation of the release of goods in accordance with paragraph 4 of Article 118 of this Code - with respect to the obligation to pay import customs duties, taxes, special, anti-dumping, countervailing duties that arose during the registration of the declaration for goods;
   9. confiscation or conversion of goods into the property (income) of a Member State in accordance with the legislation of that Member State;
   10. detention of goods by the customs body in accordance with Chapter 51 of this Code;
   11. placement for temporary storage or placement under one of the customs procedures of goods that were seized or arrested during the verification of a crime report, during criminal proceedings or an administrative offense case (conducting administrative proceedings) and in respect of which a decision was made to return them, if such goods were not previously released.
3. The obligation to pay import customs duties, taxes, special, anti-dumping, countervailing duties is subject to execution upon the occurrence of the circumstances specified in paragraph 4 of this Article.
4. Upon the occurrence of the following circumstances, the deadline for payment of import customs duties, taxes, special, anti-dumping, countervailing duties is considered:
   1. in case of violation of the conditions of use of goods in accordance with the customs procedure of duty-free trade - the day of the commission of actions that violate the established conditions of use of goods, and if this day is not established - the day of placing goods under the customs procedure of duty-free trade;
   2. in case of loss of foreign goods, with the exception of destruction and (or) irretrievable loss due to an accident or force majeure or irretrievable loss as a result of natural loss under normal conditions of transportation (transportation) and (or) storage, - the day of loss of goods, and if this day is not established, - the day of placing goods under the customs procedure duty-free trade;
   3. if, within the period specified in the first paragraph of paragraph 3 of Article 246 of this Code, in respect of foreign goods sold to persons specified in subparagraph 3 of paragraph 2 of Article 243 of this Code, a declaration for goods has not been filed, - the last day of the period specified in the first paragraph of paragraph 3 of Article 246 of this Code;
   4. if, within the period specified in the second paragraph of paragraph 3 of Article 246 of this Code, in respect of foreign goods sold to persons specified in subparagraph 3 of paragraph 2 of Article 243 of this Code, a declaration for goods has not been filed, - the last day of the period specified in the second paragraph of paragraph 3 of Article 246 of this Code.
5. Upon the occurrence of the circumstances specified in paragraph 4 of this Article, import customs duties,taxes, special, anti-dumping, countervailing duties are payable as if foreign goods placed under the customs procedure of duty-free trade were placed under the customs procedure of release for domestic consumption without the application of tariff preferences and benefits for the payment of import customs duties and taxes.
   For the calculation of import customs duties, taxes, special, anti-dumping, countervailing duties, the rates of import customs duties, taxes, special, anti-dumping, countervailing duties, effective on the day of registration by the customs authority of the goods declaration filed for placing goods under the customs procedure of duty-free trade, are applied.
6. Interest shall be payable on the amounts of import customs duties, taxes, special, anti-dumping, countervailing duties paid (collected) in accordance with paragraph 5 of this Article, as if a deferral of their payment was granted in respect of these amounts from the date of placing goods under the customs procedure of duty-free trade to the date of expiration of the payment of import customs duties, taxes, special, anti-dumping, countervailing duties. These percentages are accrued and paid in accordance with Article 60 of this Code.
7. In the case of placing goods under the customs procedures provided for by this Code and (or) their release for use as supplies exported from the customs territory of the Union on board water or aircraft, in accordance with Chapter 39 of this Code after fulfilling the obligation to pay customs duties, taxes, special, anti-dumping, countervailing duties and (or) their collection (in whole or in part) import customs duties, taxes, special, anti-dumping, countervailing duties paid and (or) collected in accordance with this Article are subject to refund (offset) in accordance with Chapter 10 and Article 76 of this Code.