Duty free is a special customs regime, in which goods are sold in the territory of a certain country, but it does not levy a tax on their value. The most striking examples are duty free shops. They are usually located on the border between two states, including airports. Goods that are displayed on the shelves of such stores are not subject to duties, excise taxes and VAT. Therefore, their retail value is much lower than usual. In today's article, we will understand the procedure, principles and features of duty-free trade in accordance with the legislation of the Customs Union and the Russian Federation.
The concept
The customs regime “duty free trade” involves the import of foreign goods into Russian territory or the export of domestic goods from it without tax collection. Any product that is not prohibited by the law of the Russian Federation that is sold in a duty-free store falls under it.
Content and Terms
The customs procedure is a set of rules that govern the transport of goods across the state border. For example, transit and re-import rules are separately defined. In total, according to the Customs Code of the Russian Federation, there are 17 types of procedures. Duty-free trading is one of them. Within its framework, the import, export and circulation of any goods other than those prohibited by law may be carried out. The declarant of this procedure may only be the owner of a duty-free shop. He can do this both independently and through his own representative. Placement of these goods in the store is carried out only after the issuance of the relevant permission customs authority. All of them must be declared, and the point of sale itself is open in accordance with the established procedure.
The main requirement for the sale of such goods is that wholesale trade in them is unacceptable. Retail is carried out in accordance with the legislation of the Russian Federation. Unsold goods, if desired, can be placed under another customs procedure, for example, re-export or release for consumption within the state. The law also defines the actions of the owner when closing or liquidating a store. He is obliged to place all goods under a different customs procedure within 15 days after the relevant decision is made.
Duty Free
This procedure is subject to any products that are allowed to move across the state border and turnover inland. Duty-free trade in the following products is prohibited:
- Products that are not intended for personal consumption or use by individuals.
- Goods whose weight exceeds 20 kg or the sum of the dimensions of which is more than 200 cm.
- Packaged products intended for retail sale.
Duty-free trade in goods may also be prohibited, in respect of which non-economic prohibitions and restrictions are established in accordance with the legislation of the Russian Federation. However, the following products may not be included in this list:
- Products from fish and aquatic invertebrates that are packaged and ready for direct consumption and whose weight does not exceed half a kilogram.
- Sturgeon caviar. However, it must be labeled in accordance with the Convention on International Trade, and its weight must not exceed 0.25 kg.
- Over-the-counter medications.
- Jewelry, with the exception of unique amber.
- Any souvenirs.
The duty-free trading procedure involves the sale of alcoholic beverages and tobacco products without excise taxes and other brands, if their packaging has the inscription: “For duty free sale only” in English or its translation into Russian, printed in typographical form.
Duty Free Service Products
Goods that are necessary for the normal functioning of the duty-free point are not subject to placement under this procedure. These include:
- Equipment purchased for the arrangement of the store.
- Samplers.
- Other goods intended for consumption in the internal territory of the state in accordance with the Customs Code.
Store Requirements
Customs duty-free trade involves opening special points of sale at checkpoints across the state border, including airports. Under Russian law, there are two types of duty free shops. They differ in the categories of buyers who can purchase products in them. Duty free shops are:
- For individuals who travel outside the customs territory.
- For diplomatic missions of foreign states and international organizations, as well as equivalent consular officers and members of their families.
Requirements for a duty-free shop depend on its type. They relate to its location, equipment and arrangement.
Duty free for individuals
Stores for people entering the customs territory of the Russian Federation should consist of trading floors, utility rooms and storage facilities. They are equipped in such a way as to provide the possibility of control in relation to them. Outsiders in utility rooms and warehouses are strictly prohibited. The duty-free trading room is located in such a way as to exclude the possibility of seizing goods from it in addition to customs control and transfer to third parties who are not going to cross the border. It should have racks and display cases that allow potential buyers to familiarize themselves with the assortment.
A separate area is allocated in the warehouse for customs control, the size of which is at least 5 meters in length and the same in width. It is indicated by a white line, the thickness of which must be more than 20 cm. Duty-free goods cannot be stored in this area. It is intended solely for customs control.
Shops for diplomatic missions
The requirements for the arrangement, location and equipment of the second-type point of sale are established by the Government of the Russian Federation. However, it has not yet adopted a decree. Therefore, at present, Russia cannot organize duty-free trade for diplomatic missions of foreign states and international organizations.
Features of store ownership
The owner of such a point of duty-free sale of goods can only be a legal entity of one of the states of the Customs Union. It must be included in the appropriate registry. A number of requirements are put forward to him:
- Availability of suitable premises in the operational management, economic management or property of the applicant.
- His lack of administrative responsibility for violations in the customs sphere during the year prior to the day of application for registration.
- Availability of tax payment in the amount of at least 2.5 million rubles.
Duty Free Point Registration
An application is submitted for inclusion in the list of duty free store owners. It should contain the following information:
- A request from a potential owner for inclusion in the register.
- Information about the name, organizational form, bank accounts, location of premises, tax payment, approval of the opening of a store, permits and registration documents.
The latter are attached to the application.The duties of the owner of the duty-free trade include accounting for products and reporting to customs authorities.
Certificate issuance
The opening of the store is regulated by the legislation of the Russian Federation and the Customs Union. Duty-free trade of Russia with citizens entering their territory is possible only in stores that are included in a special register. Their owners receive a special certificate. It contains the following information:
- Name, legal form, location and identification number of the owner.
- Location of the trading floor and warehouse.
- Name of the customs authority that issued this certificate and date.
Duty free country
But is it always necessary to pay tax when buying in the state, and not in a duty-free store? It turns out that next to Spain is the small country of Andorra. And on its territory there is a duty-free trade regime. Andorra is a true paradise for shopaholics. Continuous are the rows of shops that sell rare brands of expensive cars, electronics, fashionable clothes, premium cosmetics and groceries. Many local residents are actively involved in the country's commercial life.
Millions of people come here every day. They are attracted not only by local natural beauties and interesting architecture, but also by low prices. That's because Andorra is a country of duty free trade. And here tourists can combine business with pleasure. From Spain, excursions to Andorra are practiced. Today, the latter lives almost entirely due to tourism and trade.
