Press release «New customs administration of cross-border e-commerce»

Press release «New customs administration of cross-border e-commerce»

Since 2021 the Eurasian Economic Commission (hereinafter referred to as the Commission) jointly with the member states of the Eurasian Economic Union (hereinafter referred to as the EAEU) have been working on introducing changes and amendments to the EAEU legislation, providing for comprehensive regulation of cross-border e-commerce issues.

Based on the results of this work on December 25, 2023 the heads of the EAEU member states signed the Protocol on Amendments to the Treaty on the EAEU Customs Code (hereinafter referred to as the Protocol, EAEU Customs Code), which provides:

  • detection of goods that are purchased via cross-border e-commerce into a separate category with definition of the features of its regulation;
  • introduction of the institution of e-commerce Operator (hereinafter referred to as the Operator);
  • introduction of a new type of customs declaration - declaration for e-commerce goods;
  • introduction of a new customs duty - duty on e-commerce goods with a flat rate set by Commission;
  • sale of e-commerce goods to individuals from the Operator's warehouse using the customs procedure of a customs warehouse.

Currently, the Protocol is at the stage of ratification by the EAEU member states (responsible government body in the Republic of Kazakhstan is the Ministry of National Economy of the Republic of Kazakhstan).

New customs regulation is being introduced in relation to the goods purchased by individuals located (residing) in the customs territory of the EAEU member states on foreign internet platforms (shops) using the internet connection, i.e. the new customs  regulation will apply to online purchases where the seller is a legal entity and the buyer is an individual (B2C).

Amendments to the EAEU Customs Code provide for two methods of delivering e-commerce goods to the buyer – individual:

  • e-commerce goods purchased by individuals (the so-called “direct delivery” which is an already existing method of purchase); and
  • e-commerce goods intended for sale to individuals (that is purchase of goods on a foreign internet platform, and receipt of these goods - from the Operator’s warehouse in the territory of the Republic of Kazakhstan, i.e. application of the “bonded warehouse” principle).

 

Accordingly, the customs administration of these two logistics purchase schemes also differs.

Thus, for e-commerce goods intended for sale to individuals, the use of the customs procedure of a customs storage warehouse is provided.

This scheme involves the import into the customs territory of the Republic of Kazakhstan of a commercial consignment of foreign goods, which are placed by the Operator under the customs procedure of a customs storage warehouse and are stored in this warehouse for 3 years, while maintaining the status of foreign goods.

And when a citizen of the Republic of Kazakhstan purchases goods on the internet, he will be offered the option of an expedited delivery of the goods from the Operator’s warehouse. In this case the goods are placed by the Operator under the customs procedure of release for domestic consumption using the rates of the EUEU Unified Customs Tariff and with payment of taxes.

Presently, in order to implement the powers of the Commission provided for in the Protocol, the development of legislative acts that should come into force along with the Protocol is underway. They are:

  • development of a form of declaration for e-commerce goods;
  • consideration of the value of a flat customs duty rate;
  • consideration of the amount of security for the fulfillment of Operator’s obligation;
  • draft decisions of the Commission on the procedure of e-commerce goods return, declaration’s structure, etc.

Also, the work to introduce appropriate amendments to the Code of the Republic of Kazakhstan “On Customs Regulation in the Republic of Kazakhstan” is carried out.