Customs procedure of processing in the customs territory

Article 163. Content and application of the customs procedure of processing in the customs territory

1. Customs procedureprocessing in the customs territory is a customs procedure applied to foreign goods, according to which processing operations are carried out with such goods in the customs territory of the Union in order to obtain their processed products intended for subsequent export from the customs territory of the Union, without payment of import customs duties, taxes, special, anti-dumping, countervailing duties 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 processing in the customs territory retain the status of foreign goods, and goods received (formed) as a result of processing operations in the customs territory of the Union (processed products, waste and residues) acquire the status of foreign goods.
3. It is allowed to apply the customs procedure of processing in the customs territory to suspend the customs procedure of temporary import (admission) by placing goods placed under the customs procedure of temporary import (admission) under it.
4. The Commission has the right to determine the list of goods for which the customs procedure for processing in the customs territory is not applied. (see the Decision of the Board of the Eurasian Economic Commission No. 203 of 11.12.2018)

Article 164. Conditions for placing goods under the customs procedure of processing in the customs territory and their use in accordance with such customs procedure

1. The conditions for placing goods under the customs procedure of processing in the customs territory are:
   1. availability of a document on the conditions for processing goods in the customs territory of the Union issued by the authorized body of the Member State and containing the information specified in Article 168 of this Code. A declaration for goods may be used as such a document if the purpose of applying the customs procedure for processing in the customs territory is the repair of goods, as well as in other cases determined by the Commission; (see Decision of the Board of the Eurasian Economic Commission No. 180 of 12.11.2018)
   2. the possibility of identification by customs authorities of foreign goods placed under the customs procedure of processing in the customs territory in the products of their processing, except in cases of replacement of such foreign goods with equivalent goods in accordance with Article 172 of this Code;
   3. compliance with prohibitions and restrictions in accordance with Article 7 of this Code.
2. The conditions of use of goods in accordance with the customs procedure of processing in the customs territory are:
   1. compliance with the established validity period of the customs processing procedure in the customs territory;
   2. compliance with the provisions of Article 166 of this Code when performing operations with goods placed under the customs procedure of processing in the customs territory;
   3. the finding of goods placed under the customs procedure of processing in the customs territory by the persons specified in the document on the conditions for processing goods in the customs territory of the Union, and the use of such goods for processing operations by these persons.
3. For the purposes of the application of this chapter, the identification by the customs authority of foreign goods in their processed products is understood to mean the establishment by one of the methods defined in Article 167 of this Code that it was the goods placed under the customs procedure of processing in the customs territory that were subjected to operations for processing goods in the customs territory of the Union in order to obtain processed products.

Article 165. Validity period of the customs procedure of processing in the customs territory

1. The validity period of the customs procedure of processing in the customs territory is established on the basis of the term of processing of goods in the customs territory of the Union, defined in the document on the conditions of processing of goods in the customs territory of the Union.
2. The established period of validity of the customs procedure for processing in the customs territory is extended at the request of a person when extending the period for processing goods in the customs territory of the Union.
3. The legislation of the Member States may provide that when extending the period of processing of goods in the customs territory of the Union, the established period of validity of the customs procedure for processing in the customs territory may be extended no later than 10 working days after its expiration. If the validity period of the customs procedure for processing in the customs territory established by the customs authority is extended after its expiration, the validity of such customs procedure is resumed from the date of termination of this customs procedure.

Article 166. Processing operations in the customs territory of the Union

1. Processing operations in the customs territory of the Union include:
   1. processing or processing of goods;
   2. manufacture of goods, including installation, assembly, disassembly and fitting;
   3. repair of goods, including their restoration, replacement of components, modernization;
   4. the use of goods that promote or facilitate the production of processed products, even if these goods are fully or partially consumed during the processing process. This operation must be performed simultaneously with one of the operations specified in subparagraphs 1-3 of this paragraph.
2. Processing operations in the customs territory of the Union do not include:
   1. operations to ensure the safety of goods when preparing them for sale and transportation (transportation), including packaging, packaging and sorting of goods, in which the goods do not lose their individual characteristics;
   2. obtaining offspring, raising and fattening animals, including birds, fish, as well as the cultivation of crustaceans and mollusks;
   3. cultivation of trees and other plants;
   4. copying and reproduction of information, audio and video recordings on any types of media;
   5. the use of foreign goods as auxiliary means in the technological process (equipment, machines, devices, etc.);
   6. other operations determined by the Commission.
3. When processing operations are carried out in the customs territory of the Union, it is allowed to use Union goods, with the exception of goods for which the legislation of the Member States establishes export customs duty rates and which are included in the list determined by the Commission.
   The Commission has the right to determine cases whenUnion goods in respect of which the legislation of the Member States establishes the rates of export customs duties and which are included in the list provided for in paragraph one of this paragraph may be used in processing operations in the customs territory of the Union.

Article 167.Identificationforeign goods in their processed products

In order to identify foreign goods in their processed products, the following methods can be used:

• affixing by the declarant, the person performing processing operations, or customs officials of seals, stamps, application of digital and other markings onforeign goods;
• detailed description, photographing, image on the scale of foreign goods;
• comparison of pre-selected samples and (or) samples of foreign goods and products of their processing;
• the use of existing labeling of goods, including in the form of serial numbers;
• other methods that can be applied based on the nature of the goods and processing operations performed in the customs territory of the Union, including by examining the submitted documents containing detailed information on the use of foreign goods in the technological process of processing operations in the customs territory of the Union, as well as on the technology of processing products, or by conducting customs control during processing operations in the customs territory of the Union.

Article 168. Document on the conditions of processing of goods in the customs territory of the Union

1. A document on the conditions for processing goods in the customs territory of the Union issued by the authorized body of a Member State can be obtained by anyperson of the Member State, on the territory of which this document is issued, including performing processing operations or not performing such operations directly.
2. The document on the conditions for processing goods in the customs territory of the Union must contain the following information:
   1. about the authorized body of the member state that issued the document;
   2. about the person to whom the document was issued;
   3. about the person(s) who will directly perform processing operations in the customs territory of the Union;
   4. about foreign goods and products of their processing (name, code in accordance with the Commodity Nomenclature of foreign economic activity, quantity and cost). The legislation of the member States on customs regulation may provide for the possibility of specifying the code of foreign goods and products of their processing at the level of the commodity item of the Commodity Nomenclature of foreign Economic Activity, as well as the possibility not to specify the cost of goods and products of their processing;
   5. about the goods of the Union, in respect of which the legislation of the Member States establishes the rates of export customs duties that ensure the implementation of the technological process of processing foreign goods (name, code in accordance with the Commodity Nomenclature of Foreign Economic Activity and quantity), if this is established by the legislation of the member state;
   6. about documents confirming the right to own, use and (or) dispose of goods;
   7. norms of output of processed products in quantitative and (or) percentage terms;
   8. about processing operations in the customs territory, methods of their execution;
   9. on the methods of identification of foreign goods placed under the customs procedure of processing in the customs territory, in the products of their processing;
   10. about waste and residues (name, code in accordance with the Commodity Nomenclature of foreign economic activity, quantity and cost). The legislation of the Member States on customs regulation may provide for the possibility of specifying the code of waste and residues at the level of the commodity item of the Commodity Nomenclature of Foreign Economic Activity, as well as the possibility of not specifying the cost of such waste and residues;
   11. the term of processing of goods in the customs territory of the Union;
   12. on the replacement of goods with equivalent goods, as defined in Article 172 of this Code, if such replacement is allowed;
   13. about the possibility of further commercial use of waste;
   14. about the customs authority (customs authorities) in which it is supposed to place goods under the customs procedure of processing in the customs territory and the completion of this customs procedure.
3. The term of processing of goods in the customs territory of the Union may not exceed 3 years or a longer period determined by the Commission for certain categories of goods. (see Decision of the Board of the Eurasian Economic Commission No. 203 of 11.12.2018)
4. The term of processing of goods in the customs territory of the Union includes:
   1. duration of the production process of goods processing;
   2. the time required for the actual export of processed products from the customs territory of the Union and the performance of customs operations related to the disposal of waste and residues of foreign goods.
5. The term of processing of goods in the customs territory of the Union is calculated from the date of placing goods under the customs procedure of processing in the customs territory, and in the case of customs declaration of goods in several batches - from the date of placing the first batch of goods under the customs procedure of processing in the customs territory.
6. The term of processing of goods in the customs territory of the Union may be extended within the period specified in paragraph 3 of this Article.
7. The legislation of the Member States may establish additional information to be specified in the document on the conditions for processing goods in the customs territory of the Union.
8. The form of the document on the conditions for processing goods in the customs territory of the Union, the procedure for filling it out and the procedure for issuing such a document, making changes (additions) to it, as well as its revocation (cancellation) and (or) renewal of its validity are established by the legislation of the Member States. (see Order of the Ministry of Finance of the Russian Federation No. 246n of 12/24/2019)
9. If the goods declaration is used as a document on the conditions for processing goods in the customs territory of the Union, information on the conditions for processing goods in the customs territory of the Union is indicated by the declarant in the goods declaration.

Article 169. Norms of output of processed products

1. The rate of output of processed products is understood as the quantity and (or) percentage of processed products formed as a result of processing operations in the customs territory of the Union of a certain number of foreign goods.
2. If processing operations in the customs territory of the Union are carried out in respect of goods whose characteristics remain practically constant in accordance with the established technical requirements, and lead to the receipt of processed products of unchanged quality, the authorized bodies of the Member States may establish standard standards for the yield of processed products.

Article 170. Waste generated as a result of processing operations in the customs territory of the Union, and production losses

1. Waste generated as a result of processing operations in the customs territory of the Union shall be placed under the customs procedures provided for by this Code, except in cases when the specified waste in accordance with the legislation of the Member States is deemed unsuitable for their further commercial use or such waste in accordance with the legislation of the Member States is subject to burial, neutralization, disposal or destruction in another way.
2. Waste generated as a result of processing operations in the customs territory of the Union, when placed under the customs procedure chosen by the declarant, is considered as imported into the customs territory of the Union in this condition.
3. The wastes specified in paragraph 1 of this Article, which are not subject to placement under customs procedures, acquire the status of goods of the Union and are considered not under customs control from the date of their recognition in accordance with the legislation of the Member States unsuitable for further commercial use or from the date of submission to the customs authority of documents confirming the fact of burial, neutralization, disposal or destruction generated waste in another way or the fact of their transfer for such operations.
4. Foreign goods placed under the customs procedure of processing in the customs territory, irretrievably lost as a result of processing operations in the customs territory of the Union and recognized by the customs authorities as production losses, are not subject to placement under customs procedures at the end of the customs procedure of processing in the customs territory.

Article 171. Remnants of foreign goods formed as a result of processing operations in the customs territory of the Union

The remnants of foreign goods formed as a result of processing operations in the customs territory of the Union in accordance with the norms for the output of processed products are subject to placement under customs procedures in accordance with Article 173 of this Code.

Article 172. Replacement of foreign goods with equivalent goods

1. With the permission of the customs authority, it is allowed to replace foreign goods placed under the customs procedure of processing in the customs territory or planned to be placed under the customs procedure of processing in the customs territory in accordance with the document on the conditions of processing of goods in the customs territory of the Union with goods of the Union, which in their description, quality and technical characteristics coincide with such foreign goods (hereinafter referred to as in this article - equivalent goods).
   In the case of importation into the customs territory of the Union for repair in faulty form of parts, assemblies, aggregates that were part of goods previously exported from the customs territory of the Union in accordance with the customs procedure of export, Union goods that in their description, quality and technical characteristics coincide with such parts, assemblies imported into the customs territory of the Union, aggregates are considered as equivalent goods without taking into account the condition of their serviceability and (or) wear.
2. The processed products obtained as a result of processing operations on the customs territory of the Union of equivalent goods are considered as products of processing of foreign goods in accordance with the provisions of this chapter.
3. Equivalent goods acquire the status of foreign goods, and the goods replaced by them acquire the status of Union goods.
4. If it is allowed to replace foreign goods with equivalent goods, the export from the customs territory of the Union of processed products obtained from equivalent goods is allowed before the import of foreign goods into the customs territory of the Union.
5. The procedure and conditions for replacing foreign goods with equivalent goods are established by the legislation of the Member States on customs regulation.

Article 173. Completion, suspension and termination of the customs processing procedure in the customs territory

1. Before the expiration of the established period of validity of the customs procedure for processing in the customs territory, the effect of this customs procedure ends with the placement of goods received (formed) as a result of processing operations in the customs territory of the Union (processed products, waste, with the exception of waste specified in paragraph 3 of Article 170 of this Code, and (or) residues), and (or) foreign goods placed under the customs procedure of processing in the customs territory and not subjected to processing operations in the customs territory of the Union, under the customs procedure of re-export.
2. Before the expiration of the established period of validity of the customs procedure for processing in the customs territory, the effect of this customs procedure may be completed:
   1. by placing goods received (formed) as a result of processing operations in the customs territory of the Union (processed products, waste, with the exception of waste specified in paragraph 3 of Article 170 of this Code, and (or) residues), and (or) foreign goods placed under the customs procedure of processing in the customs territory and not subjected to processing operations in the customs territory of the Union, under the customs procedure of release for domestic consumption or under another customs procedure applicable to foreign goods under the conditions provided for by this Code, with the exception of the customs procedure of customs transit, customs procedure of temporary import (admission). At the same time, special, anti-dumping, countervailing duties are not paid in respect of processed products and the submission of documents confirming compliance with internal market protection measures in a form other than special, anti-dumping, countervailing duties and (or) other duties established in accordance with Article 50 of the Treaty on the Union is not required.;
   2. the resumption of the customs procedure of temporary importation (admission), the operation of which was suspended in accordance with paragraph 3 of Article 224 of this Code;
   3. recognition by customs authorities in accordance with the legislation of the member states on customs regulation of the fact of destruction and (or) irretrievable loss due to an accident or force majeure or the fact of irretrievable loss as a result of natural loss under normal conditions of transportation (transportation) and (or) storage of goods received (formed) as a result of processing operations at the customs the territory of the Union (processed products, waste and (or) residues), and (or) foreign goods placed under the customs procedure of processing in the customs territory and not subjected to processing operations in the customs territory of the Union;
   4. recognition, in accordance with the legislation of the Member States, of waste generated as a result of processing operations in the customs territory of the Union, unsuitable for their further commercial use, or submission to the customs authority of documents confirming the fact of burial, neutralization, disposal or destruction of the generated waste in another way or the fact of their transfer for such operations;
   5. recognition by the customs authorities of a part of foreign goods placed under the customs procedure of processing in the customs territory as production losses;
   6. the occurrence of circumstances determined by the Commission and (or) the legislation of the member states on customs regulation, before which the goods are under customs control.
3. Before the expiration of the established period of validity of the customs procedure of processing in the customs territory, the effect of this customs procedure may be suspended in the case of placing goods placed under the customs procedure of processing in the customs territory and (or) products of their processing under the customs procedure of a customs warehouse or products of their processing under the customs procedure of temporary import (admission).
4. Processed products can be placed under customs procedures in one or several batches.
5. After the expiration of the established period of validity of the customs procedure for processing in the customs territory, the validity of this customs procedure is terminated.

Article 174. The emergence and termination of the obligation to pay import customs duties, taxes, special, anti-dumping, countervailing duties in respect of goods placed (placed) under the customs procedure of processing in the customs territory, the term of their payment and calculation

1. The duty to pay import customs duties, taxes, special, anti-dumping, countervailing duties in respect of goods placed under the customs procedure of processing in the customs territory arises for the declarant from the moment of registration by the customs authority of the goods declaration, and in respect of goods declared for release before filing the goods declaration, the person who filed the application for release of goods before filing a declaration for goods, - from the moment of registration by the customs authority of the application for release of goods before filing a declaration for goods.
2. The obligation to pay import customs duties, taxes, special, anti-dumping, countervailing duties in respect of goods placed (placed) under the customs procedure of processing in the customs territory is terminated by the declarant upon the occurrence of the following circumstances:
   1. termination of the customs procedure of processing in the customs territory in accordance with paragraph 1 and subparagraphs 1, 2, 4-6 of paragraph 2 of Article 173 of this Code before the expiration of the customs procedure of processing in the customs territory established by the customs authority, including after the occurrence of the circumstances specified in subparagraphs 1 and 2 of paragraph 4 of this Article;
   2. placement of goods in respect of which the customs procedure for processing in the customs territory has been terminated, and (or) goods received (formed) as a result of processing operations in the customs territory of the Union within the framework of the application of such a customs procedure, the effect of which has been terminated, for temporary storage in accordance with paragraph 6 of Article 129 of this Code;
   3. placement of goods in respect of which the customs procedure for processing in the customs territory has been terminated, and (or) goods received (formed) as a result of processing operations in the customs territory of the Union within the framework of the application of such a customs procedure, the effect of which has been terminated, under customs procedures in accordance with paragraph 7 of Article 129 of this Code;
   4. 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;
   5. 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 placed under the customs procedure of processing in the customs territory, and (or) goods received (formed) as a result of processing operations in the customs territory, as a result of an accident or force majeure or the fact irrevocable loss of these goods as a result of natural loss under normal conditions of transportation (transportation) and (or) storage, except for cases when, before such destruction or irrevocable loss in accordance with this Code, the deadline for payment of import customs duties, taxes, special, anti-dumping, countervailing duties has come in respect of these goods;
   6. refusal to release goods in accordance with the customs procedure of processing in the customs territory - with respect to the obligation to pay import customs duties, taxes, special, anti-dumping, countervailing duties that arose during the registration of a declaration for goods or an application for the release of goods before filing a declaration for goods;
   7. 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;
   8. confiscation or conversion of goods into the property (income) of a Member State in accordance with the legislation of that Member State;
   9. detention of goods by the customs body in accordance with Chapter 51 of this Code;
   10. 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 transfer of foreign goods placed under the customs procedure of processing in the customs territory, before the completion of such customs procedure to a person (persons) not specified in the document on the conditions of processing in the customs territory, - the day of transfer of goods, and if this day is not set, - the day of placing goods under the customs procedure of processing in the customs territory;
   2. in case of loss of foreign goods placed under the customs procedure of processing in the customs territory before the completion of such customs procedure, except for 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 goods, and if this day is not set, - the day of placing goods under the customs procedure of processing in the customs territory;
   3. in case of non-completion of the customs procedure of processing in the customs territory before the expiration of the customs procedure of processing in the customs territory established by the customs authority - the date of expiration of the customs procedure of processing in the customs territory established by the customs authority.
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 goods placed under the customs procedure of processing in the customs territory 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 declaration for goods filed for placing goods under the customs procedure of processing in the customs territory, and in respect of goods, the release of which is made before submission of a declaration for goods, - on the day of registration by the customs authority of the application for the release of goods before filing a declaration for goods.
6. Interest is 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 processing in the customs territory until the date of expiry of the payment of import duties. customs duties, taxes, special, anti-dumping, countervailing duties. These percentages are accrued and paid in accordance with Article 60 of this Code.
   If the operation of the customs procedure of processing in the customs territory was suspended in accordance with paragraph 3 of Article 173 of this Code, the interest provided for in this paragraph for the period of suspension of the customs procedure is not accrued and is not paid.
7. In case of termination of the customs procedure of processing in the customs territory, or placement for temporary storage in accordance with paragraph 6 of Article 129 of this Code of goods placed under the customs procedure of processing in the customs territory, and (or) goods received (formed) as a result of processing operations in the customs territory, or premises in accordance with paragraph 7 of Article 129 of this Code of such goods under the customs procedures provided for by this Code, or the detention of such goods by customs authorities in accordance with Chapter 51 of this Code after fulfilling the obligation to pay customs duties, taxes, special, anti-dumping, countervailing duties and (or) their recovery (in whole or in part) of the amount of 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.

Article 175. Features of calculation and payment of import customs duties, taxes, special, anti-dumping, countervailing duties in respect of processed products when they are placed under the customs procedure of release for domestic consumption

1. When placing processed products under the customs procedure of release for domestic consumption, import customs duties, taxes, special, anti-dumping, countervailing duties are payable in the amount of the amounts of import customs duties, taxes, special, anti-dumping, countervailing duties that would be payable as if foreign goods placed under the customs procedure of processing in the customs territory and used for the manufacture of processed products in accordance with the norms of the output of processed products, were placed under the customs procedure of release for domestic consumption.
   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 declaration for goods filed for placing goods under the customs procedure of processing in the customs territory, and in respect of goods, the release of which is made before submission of a declaration for goods, - on the day of registration by the customs authority of the application for the release of goods before filing a declaration for goods.
   If, in order to calculate customs duties and taxes, it is required to convert foreign currency into the currency of a Member State, such recalculation is carried out at the exchange rate effective on the day specified in the first paragraph of this paragraph.
2. Interest is payable on the amounts of import customs duties, taxes, special, anti-dumping, countervailing duties paid (collected) in accordance with paragraph 1 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 processing in the customs territory to the date of termination of the obligation to pay import customs duties, taxes, special, anti-dumping, countervailing duties. These percentages are accrued and paid in accordance with Article 60 of this Code.
   If the operation of the customs procedure of processing in the customs territory was suspended in accordance with paragraph 3 of Article 173 of this Code, the interest provided for in this paragraph for the period of suspension of the customs procedure is not accrued and is not paid.