Customs tariff regulation of foreign trade in Belarus

Customs duty rates are established by the President of the Republic of Belarus and Council of Ministers and are standard and invariable for all legal entities and individuals moving goods across the customs frontier of the Republic of Belarus regardless of the nature of the transaction and regardless of other factors, with the exception of the instances envisaged by the legislation.

The amount of custom duties is determined as product of tax base by respective rate.

When goods are imported to the customs territory of the Republic of Belarus or are exported out of it, the tax base is determined:
- as customs value of goods being moved across customs frontier of the Republic of Belarus - for those goods to which ad valorem custom duties are applicable;
- as quantity (volume, weight) or other physical dimensions - for those goods for which specific duties are applicable;
- by combination of the two stated above methods - for those goods for which combination rates of custom duty are applicable.

 

The customs value of imported goods is determined using the following methods: at the transaction price for the imported goods, at the transaction price for identical goods, at the transaction price for similar goods, through deduction of costs, through the sum of costs, using the reserve method.

 

The core method used is based on the transaction price for the imported goods. The transaction price paid or payable for the imported goods at the moment the goods cross the customs frontier of Belarus is deemed to be the customs value. If that method cannot be applied, each of the methods listed above is tested until a suitable method is found.

 

The following tariff discounts are established by the President of the Republic of Belarus in order to promote entrepreneurial activities, stimulate production and realization of goods (work, services), attract foreign investment:
- Customs duty exemption is applicable to technological equipment, components or spare parts of such equipment placed under the customs regime of release for free circulation which have been imported to the customs territory of the Republic of Belarus as a contribution to the statutory fund of the commercial organization with foreign investment established (except for those formed in consequence of reorganization) after 1 April 2008;
- Customs duty exemption is applicable to technological equipment, components or spare parts of such equipment which have been imported to the customs territory of the Republic
of Belarus as a contribution to the statutory fund of the organizations which are situated in rural localities and conduct their activities (produce goods, render services, perform work) in these or other rural population centers;
- Customs duty exemption is applicable to technological equipment, components or spare parts of such equipment which have been imported to the customs territory of the Republic of Belarus (except for those that are imported from Russian Federation) for the purpose of realization of investment projects being financed by the external governmental loans used for innovation development of the economy of the Republic of Belarus or for persons who realize such projects.

 

VAT may be withheld by the customs or tax authorities (when customs clearing is not performed).

 

The tax base on goods imported to the customs territory of the Republic of Belarus, the tax on which is withheld by tax authori¬ties, is determined as the amount of:
- Customs value;
- Customs duty payable;
- Excises payable (for excisable goods)

 

The tax base for goods exported from the Russian Federation is determined for the purpose of VAT payment as of the date of initial recognition of exported goods as the aggregate of cost of goods purchased, including shipping costs and costs of delivery of these goods and excises payable (for excisable goods).

 

Law of the Republic of Belarus Concerning Value Added Tax stipulates instances when goods being imported to the customs territory of the Republic of Belarus are exempt from VAT. In addition, certain legislative acts also provide for VAT exemption.

 

The following value added tax concessions are established with a view of promotion of entrepreneurial activities, stimulating of production and realization of goods (work, services) and attraction of foreign investment:
- VAT exemption is applicable to technological equipment, components or spare parts of such equipment placed under the customs regime of release for free circulation which have been imported to the customs territory of the Republic of Belarus as a contribution to the statutory fund of the commercial organization with foreign investment established (except for those formed in consequence of reorganization) after 1 April 2008 in locations with the population up to 50,000 people;
- VAT exemption is applicable to technological equipment, components or spare parts of such equipment which have been imported to the customs territory of the Republic of Belarus as a contribution to the statutory fund of the organizations which are situated in rural localities and conduct their activities with respect to production of goods (rendering of services, performing of work) in these or other rural population centers;
- VAT exemption is applicable to technological equipment, components or spare parts of such equipment which have been imported to the customs territory of the Republic of Belarus (except for those that are imported from Russian Federation) for the purpose of realization of investment projects being financed by the external governmental loans used for innovation development of the economy of the Republic of Belarus or for persons who realize such projects.

According to the legislative acts of the Republic of Belarus, unified excise rates are applicable both to goods produced by the excise payers in the territory of the Republic of Belarus and goods imported by the excise payers to the customs territory of the Republic of Belarus.
Depending on the rates established for excisable goods being imported to the customs territory of the Republic of Belarus the excise application base is determined as:
- The volume of imported excisable goods in physical units – for those goods to which fixed (specific) rates apply;
- Custom value increased by the customs duty payable – for those goods to which ad valorem rates apply.

 
Excise rates are established as an absolute amount based on a physical unit of measurement with respect to excisable goods (fixed (specific) rates) or as a percentage rate of the value of the goods (ad valorem rates).

 

Law of the Republic of Belarus Concerning Excise Duty specifies instances where the goods imported to the customs territory of the Republic of Belarus are exempt from excise. Other goods may be excise exempt in cases specified in the Custom Code of the Republic of Belarus and approved by the President of the Republic of Belarus.