Customs and Excise Act, 1964 (Act No. 91 of 1964)

Customs and Excise Rules

Chapter V : Clearance and Origin of Goods: Liability for and payment of duties

Rules for Section 46A of the Act

Part 3 : Non-reciprocal tariff treatment under the Generalised System of Preferences (GSP) granted to developing and least developed countries by the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan

Rules relating to enactments of the Russian Federation prescribing requirements concerning origin and proof of origin in respect of goods exported from developing countries

RO "Rules determining the origin of goods of developing countries when granting tariff preferences within the General System of Preferences"

Purchase

46A3.06

(a)	In terms of RO Rule 1, goods are regarded as originating in a developing country which is subject to the tariff preferential treatment where the goods are—

(i)	wholly produced in such country (specified in RO Rule 2);

(ii)	produced in such country by using raw materials, semi-finished or finished items originating from another country or goods of unknown origin provided the goods have been put through sufficient finishing or processing in such country in accordance with RO Rule 3.

(b)	In terms of RO Rule 3 goods are considered to have been put through sufficient finishing or processing in a developing country which is subject to the tariff preferential treatment in the following circumstances:

"(a)

the goods have undergone sufficient finishing or processing in a developing country which is subject to the tariff preferential treatment and the value of the goods utilized in that process (feedstock, semi-finished and finished goods) originating from other countries which are not subject to the tariff preferential treatment or the goods of unknown origin do not exceed 50% of the value of the goods exported by a developing country which is subject to the tariff preferential treatment;

(b)

the goods have undergone finishing or processing in several developing countries which are subject to the tariff preferential treatment and the value of the goods utilized in the process originating from other countries which are not subject to the tariff preferential treatment or the goods of unknown origin do not exceed 50% of the value of the goods exported by one of the developing countries which is subject to the tariff preferential treatment;

(c)	the goods have been produced in one of the developing states which are subject to the tariff preferential treatment and have been put through finishing or processing in other, one or several developing countries which are subject to the tariff preferential treatment.

The value of the goods mentioned under subitems (a) and (b) hereof that originate from the country not subject to the tariff preferential treatment shall be determined on the basis of the customs cost of said goods fixed in the manufacturing country of the exported goods.

The value of the goods of unknown origin mentioned under subitems (a) and (b) hereof, shall be set as equal to the price paid for the said goods in the territory of a developing country – a manufacturer of the exported goods.

The goods (raw materials, semi-finished and finished products) taken from one of the countries granting preferences into the country which is subject to the tariff preferential treatment and utilized there for the production of goods to be exported into the same country that grants preferences shall be deemed as the goods that have been produced in said developing country – the exporter.

The value of the goods exported by a developing country shall be determined on the basis of the price free ex manufacturing works."

(c)	Originating goods are eligible, on importation into the Russian Federation, to benefit from the relevant tariff preferences provided:

(i)	the conditions of "direct purchase" and "direct delivery", stated in RO Rule 4, which are reproduced in rule 46A3.14, are complied with;

(ii)	a valid Certificate of Origin Form A is produced and in terms of RO Rule 5—

(aa)	a Form A is valid for 12 months from the date of issue thereof;

(bb)	Form A must be submitted to the customs authorities in printed form, free from corrections in English;

(cc)	a discrepancy of not exceeding 5% between the quantities of goods actually delivered and those stated on the Form A is allowed on importation into the Russian Federation;

(dd)	where a Form A is lost, a duly completed duplicate may be accepted which may be applied for in accordance with the procedures specified in rule 46A3.18;

(ee)	a presentation of Form A is not required for small consignments of a total value of not exceeding US $ 5 000, for which procedures are prescribed in Rule 46A3.20;

(iii)

the Russian Federation must have received from the developing country which have been granted tariff preferences, the names, addresses and imprints of seals of competent bodies authorised to issue certificates as specified in RO Rule 6 (Customs Co-operation);

(d)	For the purposes of these requirements—

(i)	exporters and producers (as defined) must ensure that proper records are kept to prove the originating status of goods exported (whether for completion of Form A or a declaration for small consignments) under the GSP scheme as specified in these rules;

(ii)	exporters must produce a duly completed application form and submit the necessary supporting documents proving the originating status of the goods concerned when applying for certification of Form A.

(e)

Whenever originating status is claimed for any goods contemplated in RO Rule 3, the exporter shall, in addition to any other documentation that may elsewhere be specified in these rules, keep available for inspection all appropriate records to prove compliance with the conditions in terms of which goods are considered to have been put through sufficient finishing or processing in a developing country for the purposes of preferential tariff treatment in the Russian Federation.

(f)

(i)	Where goods are exported from the Russian Federation to the Republic for working or processing as contemplated in the penultimate paragraph of RO Rule 3, the bill of entry import must be endorsed "Goods originating in the Russian Federation for working or processing in the Republic".

(ii)	In respect of goods that have been so worked or processed, the words "Russian Cumulation" must be inserted in Box 4 of Form A as specified in rule 46A3.16(h).