Free custom zone customs procedure shall be applied in the territory of industrial and R&D zones as well as port zones. This is to provide benefits to residents engaged in development of hi-tech production facilities, which in many cases require importation of expensive equipment and components from abroad.
Foreign products (equipment, raw materials, components and construction materials) brought to special economic zones can be used without paying customs duties and taxes. Apart from that no non-tariff regulatory measured can be applied to such goods. Free customs zone procedures are applied to goods imported from the Customs Union countries (no customs duties are paid and no restrictions are imposed).
Upon completion of the free customs zone procedure other customs procedures provided for by the Customs Code of the Customs Union are applied to the relevant goods (depending on their status) as well as to the products manufactured from them.
Goods manufactured by residents of special economic zones established by January 1, 2012 with the use of foreign products imported to Russia using free customs zone procedure may be taken to the domestic market of the Customs Union countries by January 1, 2017 without paying any customs duties and taxes (provided the degree of processing is sufficient). The residents may choose criteria for the processing degree determination:
- Change of Customs Union FEACN classification code (any of the first four marks);
- Compliance with obligatory requirements (production and processing operations) sufficient to recognize the goods manufactured of foreign products imported using free customs zone procedure as the goods manufactured in the Customs Union;
- Change in the cost of the goods, so that the percentage of the cost of used goods or added value equals the fixed share in the finished products’ price (ad valorem share rule).
If a special economic zone resident ships its products manufactured in the special economic zone territory from imported components or raw materials to the customs territory of the Customs Union, it has a right to choose the customs duty rate to be applied (i.e. customs duties applicable to raw materials or finished products).
Customs duties/taxes applicable to products placed under free customs zone customs procedure (import)/exported products.
Goods from non-Customs Union member countries:
Import customs duties — not applicable;
VAT — not applicable;
Excises — not applicable.
Goods from Customs Union member countries :
Export customs duties — not applicable;
VAT — refund;
Excises — not applicable.