Module 2. Customs clearance procedures

UNIT 2.1 CUSTOMS PAYMENTS

In this Unit, you learn how to: - talk about collections of duties and taxes - describe protective role of tariffs - describe goods to which import duties apply - speak on types of goods which are exempt from Customs duty Grammar: Conditional sentences (Type III)

Exercise 1. Give the Russian equivalents for:

articles are liable to duty, to exceed a certain fixed quota, under Customs restrictions, to submit Customs declarations, to apply the law, to impose tariffs, the flow of revenue, cultural valuables, inefficient domestic industries, dumping.

Exercise 2. Find in the dictionary definitions of the following words:

ad valorem, equipment, valuables, tariff, dumping, consumer, protectionism, label.

Exercise 3. Practise useful expressions related to Unit 2.1.

items brought into a country state the value revenue collection payable duties combined rate to double the base rates fixed duties raw materials movement of goods handmade goods amount of imports impose tariffs certain priority imports foreign competition to force the consumer

предметы, ввозимые в страну указать стоимость сбор доходов налоги, подлежащие уплате совокупная ставка удвоить базовые ставки фиксированные пошлины сырье перемещение товаров товары ручной работы объем импорта вводить тарифы определенный приоритетный импорт иностранная конкуренция принуждать, заставлять потребителя (приобрести что-либо)

Exercise 4. Replace the underlined words in Texts 1-2 with the words in the box.

resolve; rivalry; antagonists;   verbally; lessening; amount; defence; particular; limitations; instrument; statute; stores; ineffective; private; strategy; merchandise; defend; tax; decay; method; commerce; profits; obstacles; bad; position; mass; purpose

 

 

Exercise 5. Match the sentence halves. Consult Texts 1-2.

1. Base Customs duty rates… 2. Сustoms regulations… 3. Tariffs determine… 4. Customs payments are generally paid… 5. Revenue collection and protection of economic interests… 6. High tariffs… 7. A decline in business… 8. Domestic industries…

a) leads to fewer jobs. b) stipulate what articles are liable to duty and what are duty-free. c) have always been the principle function of Customs. d) before or when submitting Customs declarations to Customs. e) benefit from a reduction in competition. f) usually reduce the importation of a given product. g) vary widely. h) which nations will be granted the most favorable trading conditions.

Exercise 6. Skim Text 1 to answer the following questions:

1. What does Customs duty stipulate?

2. What is a traveler asked to do during the Customs control?

3. When are Customs duties paid?

4. What duties are called specific?

5. How are ad valorem duties levied?

6. What goods are exempt from Customs duty?

Text 1

Customs Duty

Customs duty is a tariff or tax on the import or export of goods. Every country has its own Customs regulations, which stipulate what articles are liable to duty and what are duty-free.

Sometimes an article which falls under Customs restrictions and is liable to duty is allowed in duty-free, if the traveler does not exceed a certain fixed quota. Customs restrictions also include a prohibited list of items which may not be brought into a country or taken out of it.

If the traveler has any item which comes under Customs restrictions, he is asked to declare it. That is, he is asked to name the item, stating its value and other particulars. The declaration is made either orally or in writing on a special form.

The practice seems to vary in different countries. Upon payment of duty the traveler is given a receipt. As a rule personal effects are duty-free. Customs payments are generally paid before or when submitting Customs declarations to Customs.

    Revenue collection and protection of economic interests have always been the principal function of Customs.

Import duty applies to most goods. The duties payable are of two kinds. If they are fixed duties imposed according to the physical quantity of the goods (volume, weight or quantity, etc), they are called specific duties. If they are levied according to the value of the goods, they are known as ad valorem duties (Latin for ‘according to value’).

The majority of Customs duty rates in Russia are ad valorem. Some duties have a combined rate incorporating the two and, therefore, the tax base may vary.

Base Customs duty rates vary widely, from 100% but not less than Euro 2 per litre on spirits to 0% for some printed matter and certain priority imports.

Zero duty applies, for example, to a wide range of equipment and machinery. On average, duty rates fall between 5% and 20% of the Customs value of goods. The base rates specified in the law apply to countries that enjoy Most Favored Nation status. Certain raw materials and handmade goods from “developing” and “least developed” countries may be imported at 75% of the base rates or zero rates, respectively. Goods originating in other countries will be subject to duty at double the base rates.

Exercise 7. Use the following word-combinations in the sentences of your own.

Customs regulations; prohibited list of items; to submit Customs declarations; exempt from Customs duty; protection of economic interests; subject to duty; the principle function of Customs; zero duty; goods for personal use; international movement of goods; the value of goods; Customs duty rates; Most Favored Nation status.

Exercise 8. Make up sentences with the given Russian phrases. Pay attention to the prepositions:

1. при ограничениях 2. подлежать 3. ввозить в страну 4. вывозить из страны 5. после уплаты 6. применяться к странам 7. по курсу 8. для личного пользования 9. освобождаться от 10. ввозиться физическими лицами 11. на специальном бланке

under restrictions be liable to/be subject to be brought into a country be taken out of the country upon payment apply to countries at а rate for personal use be exempt from be imported by individuals on a special form

Exercise 9. Translate the following sentences:

1. В России большинство ставок таможенных пошлин являются адвалорными.

2. После оплаты пошлины туристу выдается квитанция.

3. Базовые ставки таможенной пошлины в большинстве своем отличаются друг от друга.

4. Сбор доходов и защита экономических интересов всегда являлись основной функцией таможни.

5. Некоторые товары освобождаются от таможенных пошлин.

6. Таможенные ограничения распространяются на товары, запрещенные к ввозу / вывозу из страны.

Exercise 10. Read Text 2 for certain true/false information. Support your idea.

1. High tariffs abandon protectionism.

2. Tariffs protect foreign industries.

3. Many developing nations use tariffs as a way of raising revenue.

4. Tariffs are rarely used by the governments.

5. Trade barriers are usually pro-producer and anti-consumer.

Text 2