English_for_customs / English for customs / unit4 / 97

UNIT 4

FREE ZONES

(У)(У) Check your answers with your partner's.

©©© Pairs report back to their classmates.

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7. © True or false.

1. Foreign free zones are enclosed areas which are considered outside Russian Customs territory and in which duties on merchandise are deferred, reduced or, in some cases, eliminated. Domestic and foreign merchandise can be brought into a foreign free zone for the purpose of storage, manufacturing, assembly, salvage, re­ packing, repair, re-export, transshipping, exhibit and other operations. Customs duty on products manufactured, assembled or processed in foreign free zones excludes labour, facility and overhead costs as well as profit.

2. In Russia customhouse brokers are licensed by the State Customs Committee of the Russian Federation. Brokers must pass an examination and obtain a licence from the Personnel Department to do business. Brokers are to consult with Customs to determine the proper rate of duty or basis for appraisement. Brokers are required to maintain strict confidence about business and transactions. Customs officers and employees may not only offer advice and assistance but also act as brokers for importers and forwarders.

3. A warehouse is primarily used for the receipt, temporary storage and distribution of goods en route from the production site to the point of consumption. Companies may have their own private warehouses, use public warehouses or use contract warehousing. A public warehouse is one that is managed by the state and which offers rental space on a long-term basis.

4. In general, warehouses do not do basic manufacturing, handle hazardous materials (except in special circumstances) or store goods for extended periods of time (dead storage). Usually services provided by warehouses include storage,

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