DECISION OF BOARD OF THE EURASIAN ECONOMIC COMMISSION

of January 24, 2023 No. 11

About determination of the place for the purposes of the expense accounting in case of determination of customs value of the goods imported by railway transport on customs area of the Eurasian Economic Union

According to subitems 4 and 5 of Item 1 and the subitem 2 of Item 2 of Article 40 of the Customs code of the Eurasian Economic Union the Board of the Eurasian economic commission solved:

1. Determine that concerning the goods imported on customs area of the Eurasian Economic Union by rail in case of determination of their customs value at the cost of the transaction with imported goods expenses on their transportation (transportation) to the place of crossing of customs border of the Eurasian Economic Union and loading expenses, unloading or overload of imported goods and carrying out other transactions connected with their transportation (transportation) to the place of crossing of customs border of the Eurasian Economic Union are added.

2. Customs value of the goods specified in Item 1 of this Decision shall not include expenses on their transportation (transportation) on customs area of the Eurasian Economic Union from the place of crossing of customs border of the Eurasian Economic Union (provided that such expenses are allocated from the price which is actually paid or subject to payment are declared by the customs applicant and documented by it).

3. For the purpose of ensuring application of this Decision examples according to appendix are given.

4. This Decision becomes effective after 30 calendar days from the date of its official publication.

Appendix

to the Decision of Board of the Eurasian economic commission of January 24, 2023 No. 11

Examples of application of the Decision of Board of the Eurasian economic commission of January 24, 2023 No. 11

Example 1. Goods are sold for import to customs area of the Eurasian Economic Union. According to terms of the contract of purchase and sale delivery of goods is performed on the terms of EXW - Kaunas by rail, that is freight charges (transportation) of goods are incurred by the buyer.

Goods on the territory of Lithuania to the border transfer station of Kyan (Lithuania) are transported by Lithuanian Railroads joint-stock company. On piece of way from the transfer station of Kyan (Lithuania) to frontier of the Republic of Belarus and further on the territory of the Republic of Belarus the Belarusian railroad performs. The place of arrival of goods on customs area of the Eurasian Economic Union is the border station of Molodechno (Republic of Belarus).

According to the contract between the Belarusian railroad and Lithuanian Railroads joint-stock company the expenses connected with transportation of goods on the territory of Lithuania (to frontier with the Republic of Belarus), are calculated on transportation rate of Lithuanian Railroads joint-stock company, and on the territory of the Republic of Belarus - on rate of the Belarusian railroad.

According to Item 1 of the Decision of Board of the Eurasian economic commission of January 24, 2023 No. 11 in case of determination of customs value of imported goods to the price which is actually paid or subject to payment for these goods is added, in particular, freight charges (transportation) of goods by rail to the place of crossing of customs border of the Eurasian Economic Union.

Thus, in customs value of imported goods are subject to inclusion freight charges (transportation) of goods by rail only in the amount of, determined according to transportation rate of Lithuanian Railroads joint-stock company as this transportation rate includes the expenses connected with transportation of goods to frontier of the Republic of Belarus in spite of the fact that the border transfer station of Kyan is in the territory of Lithuania.

Freight charges (transportation) of goods by rail from frontier of the Republic of Belarus to the place of their arrival on customs area of the Eurasian Economic Union (Molodechno's station) are not subject to inclusion in customs value of goods.

Example 2. The goods are imported on customs area of the Eurasian Economic Union from the Azerbaijan Republic within execution of the external economic agreement in accordance with the terms of which delivery of goods is made by rail transport on the terms of SRT (the Makhachkala station, the Russian Federation) (INKOTERMS-2020).

Actually the goods on piece of way from station of origin in the Azerbaijan Republic to the transfer station Samur (Russian Federation) are transported by Azerbaijani Railroads joint-stock company, and from the transfer station Samur to the station Makhachkala - Russian Railways open joint stock company. According to the contract between Russian Railways open joint stock company and Azerbaijani Railroads joint-stock company the expenses connected with transportation of goods on piece of way from frontier of the Russian Federation to the border transfer station Samur which is in the territory of the Russian Federation enter rate of Russian Railways open joint stock company.

Also it is necessary to consider that according to the price list approved by Russian Railways open joint stock company if it is transported in direct international and in the indirect international message through border transfer stations of the Russian Federation, in case of determination of haulage distance on Russian Railways the distance to (from) frontier of the Russian Federation is considered.

Considering that goods are delivered on SRT delivery conditions (the Makhachkala station, the Russian Federation), delivery is paid by the seller and, therefore, freight charges (transportation) of goods from frontier of the Russian Federation to the station Makhachkala enter the price which is actually paid or subject to payment for these goods.

According to Item 2 of the Decision of the Eurasian economic commission of January 24, 2023 to No. 11 if freight charges (transportation) of goods from frontier of the Russian Federation to the station Makhachkala are allocated from the price which is actually paid or subject to payment are declared by the customs applicant and are documented by it, such expenses in case of determination of customs value of these goods can be excluded from the price which is actually paid or subject to payment, in the amount of, determined according to transportation rate of Russian Railways open joint stock company.

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