Customs clearance issues of goods for personal use

Customs clearance issues of goods for personal use

Currently  Russia is having a boom in internet sales so the issues related to express delivery of orders are very much relevant both for individuals and distance selling companies.


 The agreement signed on June 18, 2010 defining the procedure for the movement by private individuals of goods for personal  use over the customs border of the Customs Union and customs clearance procedures specifies that in the territory of the Customs Union (Russia, Belarus and Kazakhstan) private individuals can import goods for personal use  without  paying  customs fees if the value of such goods does not exceed EUR 1000 and the  weight does not exceed 31 kg for one private individual   delivered to the address of an individual who does not cross the customs border. These quotas of EUR 1000 and 31 kg apply to one recipient for one month, meaning that  a private  individual can buy goods totaling EUR 1000 in value and 31 kg in weight delivered from abroad.

If the abovementioned quotas are exceeded a customs duty of RUB 250 has to be paid as well as a customs fee of 30% but not less than EUR 4 per each kg exceeding the 31 kg limit and/or the EUR 1000 quota. The customs fee and duties have to be paid in  RUB according the  exchange rate of the Bank of Russia for the date the customs declaration is filed.

Sample calculations:

1)       A parcel weighs 39 kg and the declared valued is  EUR 680.

As the weight exceeds the 31 kg quota, the customs fee for the extra weight is calculated as (39 kg – 31 kg ) * EUR 4 = EUR 32.

In addition a customs duty  RUB 250 has to be paid

Thus in total the recipient has to pay RUB 250 + EUR 32.

2)       A parcel weighs 14 kg and is valued at EUR 1300

The value of the parcel exceeds the EUR 1000 quota, therefore a customs duty has to be paid equal to: (EUR 1300 – EUR 1000) * 30% = EUR 90

Moreover a customs fee   RUB 250 has to be paid.

Thus  total   RUB 250 + EUR 90 has to be paid by the consignee.

3)      A parcel weighs 41 kg and is valued at EUR 1200

In this case both quotas are exceeded thus the customs duty will be equal the greater of  two :  (EUR 1200 – EUR 1000) * 30% = EUR 60 or   (41kg – 31 kg) *EUR 4 = EUR 40. In this case the customs duty will equal EUR 60.

The customs fee will be still  equal RUB 250

The total amount to be paid is RUB 250 + EUR 60.

Also take into account that the delivery rates  used in the calculation of customs duties includes the price of express delivery and any additional services such as insurance.

If indivisible items are sent to private individual by a carrier or through international postal systems and their weight exceeds 35 kg, then the total customs payments for such items will consist of:

Customs duties

  • Customs duties
  • Customs fee
  • VAT
  • Excise (if applicable)

*an indivisible item is an item weighing over 35 kg that consists of one or several kits, including disassembled items or incomplete kits or semi-finished good on condition that the item has the key property of an assembled kit or a finished item. Whether or not a kit constitutes an indivisible item is determined on the basis of information provided by the manufacturer, seller or sender on the labels, passports, warranty cards, packing lists or other documents as well as based on traditional uses of such goods or kits for their intended purposes.

Examples of indivisible items include furniture kits, large TV sets shipped in semi-assembled form etc.

Examples:

A sofa weighing 45 kg with declared value  at USD 600 with USD 180 delivery costs

The customs value is 600 + 180 = USD 780

HS code:  9401400000

Customs duties: RUB 500

Customs fee: 15%, but no less than EUR 0.613 per kg, excise = 0, VAT = 18%.

Thus total customs fees and duties: 780 * 15% = USD 117 or 45 kg * EUR 0.613 = EUR 27.585. We take the larger of these two amounts: USD 117.

VAT (780 + 117) * 18% = USD 161.46

Total:

Customs fee:     RUB 500

Duty:  USD 117

VAT:          USD 161.46


It’s important to realize that there are a number of restrictions and special requirements for some categories of goods (for example personal use items, restricted or banned items) sent across international borders by post or courier.

The law also stipulates conditions when an individual must submit a passenger customs declaration form when their delivery arrives in the territory of the Customs Union.

If you face difficulties then LCM Express specialists will offer you consultations and any other help with customs clearance and delivery of your parcel.