Unit 10 customs payments

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Revenue collection and protection of economic interests of the country have always been the principle functions of the Customs.

The legal act the Customs applies is the Statute of the Russian Federation “On Customs Tariff”.

Tariff is a tax, levied on goods that are imported or exported across the border of a country or a group of countries that have formed a customs union. Tariffs are classified as either protective or revenue. Protective tariffs are designed to protect domestic production from foreign competition by raising the price of imported goods. Revenue tariffs are designed to obtain revenue and provide a major source of income for the federal government. These two types are closely related. Protective tariffs raise revenue and revenue tariffs give some protection to domestic producers.

The amount of tax collected is called the customs duty. If they are imposed according to the physical quantity of the goods (per ton, per meter, per item, etc.), they are called specific duties. When duty is charged by weight, it is calculated of the net weight of the article excluding the weight of any container.

If they are levied according to the value of the goods, they are known as ad valorem duties. When an article contains more than one ingredient, the duty is calculated on the proportionate value of the dutiable ingredients. For ad valorem duty the value of an article is assessed according to the price of the article on the open market. This value includes freight, insurance, commission, packing, containers and other costs.

In the Russian Federation all Customs duties are payable both in Russian and foreign currencies. Payments are accepted in cash and by check.

VAT (Value Added Tax) is indirect tax on the final consumption of goods and services in the home market. In Russia there are excise duties on oil products, tobacco, alcohol and automobiles.

Ex. 10 Answer the questions:

1. What functions of the Customs have always been the principle ones?

2. What is the legal act the Customs authorities apply?

3. What is tariff?

4. What are protective tariffs designed for?

5. What are revenue tariffs meant to do?

6. What duties are called specific?

7. How are ad valorem duties assessed?

8. What other costs are included in the value when ad valorem duties are assessed?

9. Is the weight of containers included when the duty is charged by weight?

10. How are duties calculated when articles contain dutiable ingredients?

11. How can payments be made?

12. What is excise?

13. What excise duties are there in Russia?

14. What is VAT?

Ex. 11 Translate the sentences from Russian into English:

1. Первостепенными функциями таможни всегда являлись сбор доходов и

защита экономических интересов государства.

2. Увеличивая цену импортируемого товара, таможенный тариф защищает отечественного производителя от внешней конкуренции.

3. Целью фискального тарифа является пополнение государственного бюджета.

4. Специфические пошлины на товар исчисляются на единицу веса или любой другой меры.

5. «Адвалорная» пошлина исчисляется со стоимости товара.

6. Если пошлина исчисляется с веса, она исчисляется без учета веса упаковки.

7. Все сопутствующие расходы, такие как стоимость транспортировки, страховка, комиссионные, стоимость упаковки и т.д., включаются в общую стоимость товара.

8. Таможенные платежи принимаются как в рублях, так и в иностранной валюте.

9. Акциз и НДС – косвенные налоги, включаемые в стоимость товара.

10. НДС – налог на конечную реализацию товаров и услуг.

Ex. 12 Render the newspaper article:

Teacake Wrangle

The European Court of Justice has ruled that British retailer, Marks & Spencer, can claim back £3.5mln in overpaid VAT on teacakes. For years, the British authorities defined a chocolate teacake as a biscuit- which attracts a sales tax- rather than a cake, which does not. So when is a cake not a biscuit?

Teacakes are made of a shortbread base, a marshmallow filling and a chocolate shell. The British tax authorities decided it was a biscuit, a luxury food liable to sales tax. The supermarket insisted it was a cake, a basic food which is exempt from tax.

The argument has been through many courts and the latest decision has been on the cake side of the argument. Marks & Spencer should get a tax refund, said the judge.