Liability of foreign economic activity's participants for customs laws violation Oksana Kurochkina 1...

Liability of foreign economic activity's participants for

customs laws violation

Oksana Kurochkina

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The world is fair, while you are with us

Customs & Corporate Lawyers

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National law of the Member States of the

Customs Union is applied in the

field of administrative and criminal

liability

National law on administrative liability is not brought into

compliance with international regulations

The legislation in the framework of

the Customs Union is not

unified

Liability issues in the Customs Union


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The agreement about the features of criminal and administrative

liability for violation of the customs legislation of the

Customs Union and the Member States of the Customs Union

The agreement on legal assistance and cooperation of customs

authorities of the Member States of the Customs Union in criminal

cases and administrative cases

Liability issues in the Customs Union

The decision of the Interstate Council of the Eurasian Economic Community

of July 5, 2010 No. 50


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Violations of the non-tariff regulation

Failure by the carrier in taking measures in order to ensure the safety of the goods in the case of an accident, as well as failure to report the relevant information

Providing the customs broker, representative with false information about goods

Violation of the deadline to submit Goods declaration, as well as failure to timely submit other documents. Violation of the customs duties payment terms

Failure to comply with the due-date of the temporary storage of goods

Submission of invalid documents before filing Good declaration

Failure to declare, as well as providing unreliable declaration of goods

Carrying out illegal activity in the field of customs affairs

Illegal movements of goods

The Russian Federation Administrative Offences Code stipulates administrative liability for the following:


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Article 14.10: Unlawful use of someone else’s trademark, service mark, appellation of origin

or similar designations for similar goods

Items containing the illegal reproduction of a trademark, service mark, appellation of origin.

A fine and confiscation of the object: on citizens - from 1500 to 2000 rubles, on officials - from 10 000 to 20 000 rubles, for legal entities - from 30 000 to 40 000

rubles.


Article 16.1 : Unlawful movement of commodities and (or) transport vehicles across the customs border of the Russian Federation (Customs

union) Part 1 : Arrival / departure outside of the state border of the Russian Federation or other places established in accordance with the law of the Customs Union, or outside of working hours of customs authorities, or without the permission of the customs authority.Penalty: on officials - from 10 000 to 20 000 rubles, on citizens / legal entities - from half to three times the cost of the commodities, which are the subjects of the administrative offence, with or without confiscation thereof.Part 2: : Concealing them from it by way of using hiding places and other means impeding the detection of commodities, or under the disguise of other commodities when moving them across the customs border of the Customs Union.Penalty : on officials - from 10 000 to 20 000 rubles, on citizens / legal entities - from half to three times the cost of the commodities, which are the subjects of the administrative offence, with or without confiscation thereof. Part 3: The communication to the customs body of inaccurate information on the number of the cargo packages, about their markings, about their name, gross weight and (or) about the volume of the goods during the arrival on the customs territory of the Customs union, departure from customs territory of the Customs union or the placement of the goods under the customs procedure of customs transitor to the warehouse of the temporary storage by presentation of invalid documents or the use for such purposes of counterfeit means of identification or the original means of identification relating to other goods and (or) to vehicles/Penalty : on citizens in an amount from 1 000 to 2 500 rubles with the confiscation of the goods the object of the administrative offence or without such or the confiscation of the objects of the administrative offence; on officials - from 5 000 to 10 000 rubles, on legal entities from 50 000 to 100 000 rubles with the confiscation of the goods that became the object of the administrative offence.

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Article 16.2: Non-declaring or misleading declaring of the goods and (or) transport vehicles

Part 1 : Non-declaring under the established form (oral, written or electronic form)of the goods and (or) transport vehicles that are subject to customs declaring (except for the currency). Penalty: on officials – from 10 000 to 20 000 rubles, on citizens and legal entities – in the amount of one half to two times the amount of the value of the goods that formed the object of the administrative offence with their confiscation or without such or the confiscation of the objects of the administrative offence. Part 2: The statement by the declarant or the customs representative during the customs declaring of the goods and (or) transport vehicles of inaccurate information about their name, description, classification code under the uniform Commodity nomenclatureof foreign trade activities of the Customs union, about the country of origin, about their customs cost or other information if such information formed or could form the basis for the exemption of payment of the customs duties, taxes or for understating of their amount.Penalty: on officials – from 10 000 to 20 000 rubles, on citizens and legal entities – in the amount of one half to double the sum of the customs duties subject to payment, taxes with the confiscation of the goods that were the subjectsof an administrative offence, or without such or the confiscation of the objects ofthe administrative offence. Part 3: The statement by the declarant or the customs representative during the customs declaring of the goods and (or) transport vehicle of inaccurate information on the goods or representation of invalid documents if such information or documents could form the basis for non-observance of interdictions and restrictions established by the normative legal acts of the Russian Federation enacted according to the international treaties of the member states ofthe Customs unionPenalty: on citizens from 1500 to 2500 rubles with confiscation of the goods that were the objects of the administrative offence, or without such or confiscation of objects of the administrative offence, on officials - from 10000 to 20000 rubles, on legal entities - from 100 000 to 300 000 rubles with the confiscation of the goods that were objects of the administrative offence, or without such or confiscation of objects of the administrative offence.

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Article 16.3:Non-observance of interdictions and (or) restrictions on importation of goods to the Customs territory of the Customs Union and (or) exportation of

goods from the Customs territory of the Customs Union Part 1: The non-observance of the interdictions and restrictions established by the legislation of the Russian Federation and the Customs Union except for measures of non- tariff regulation, on the importation of goods on the customs territory of the Customs union and (or) exportation of the goods fromthe customs territory of the Customs union, except for the cases envisaged by part 3 Articles of 16.2of the Administrative offences Code of the Russian Federation

Penalty: on citizens from 1500 to 2500 rubles with confiscation of the goods that were the objects of the administrative offence, or without such or confiscation of objects of the administrative offence, on officials - from 10000 to 20000 rubles, on legal entities - from 100 000 to 300 000 rubles with confiscation of the goods that were the objects of the administrative offence, or without such or confiscation of objects of the administrative offence. Part 2: The non-observance of the measures established by the normative legal acts of the Russian Federation enacted according to the international treaties of the member states of the Customs union of non-tariff regulation during the importation of goods on the customs territory of the Customs union and (or) during the exportation of the goods from the customs territory of the Customs union, except for the cases envisaged by part 3 of Article 16.2of the Administrative offences Code of the Russian FederationPenalty: on citizens from 1000 to 2000 rubles with confiscation of the goods that were the objects of the administrative offence, or without such or confiscation of objects of the administrative offence, on officials - from 5000 to 10000 rubles, on legal entities - from 50 000 to 100 000 with confiscation of the goods that were the objects of the administrative offence, or without such or confiscation of objects of the administrative offence.

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Article 16.6 : Failure to take measures in case of an emergency or the force

majeure circumstances Part 1 : Failure by a carrier in case of emergency, the force majeure circumstances or occurrence of other developments preventing the delivery of goods and (or) vehicles to the place of arrival or the place of the crossing of the customs border of the Customs union, to the performance of a stop or landing of water or aerial vehicle at the established places or the transportation of the goods according to customs transit, measures to ensure safety of the goods and (or) vehicles, except for the cases of irrevocable loss of the goods and (or) vehicles owing to circumstances that the carrier could not prevent and the elimination of which did not depend on it Penalty: on citizens from 1500 to 2000 rubles; on officials - from 3000 to4000 rubles; on legal entities - from 30000 to 40 000 rubles.

Part 2 : Failure by the carrier to inform the nearest customs body about the emergency, about the force majeure circumstances or about occurrence of other developments preventing the delivery of the goods and (or) vehicles to the place of arrival or in the place of the crossing of the customs border of the Customs union, to the performance of a stop or landing of a water or aerial vehicle at the established places or the transportation of the goods according to customs transit, about the place of the location of the goods and (or) vehiclesor failure to ensure the transportation of the goods and (or) vehicles to the nearest customs body or to another place indicated by the customs body . Penalty: on citizens from 300 to 500 rubles; on officials - from 500 to1000 rubles; on legal entities - from 5000 to 10 000 rubles.

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Article 16.7 : Presentation by the declarant oranother person to the customs representative or another person of

documents for their presentation to the customs body during the fulfillment of customs operations resulting in the

statement to the customs body by the customs representative or another person of inaccurate information on the goods

and (or) transport vehicles.Penalty : on citizens from 1500 to 2500 rubles with confiscation of the goods that were the objects of the administrative offence, or without such or confiscation of the objects of the administrative offence. on officials - from 10000 to 20000 rubles. on legal entities - from 100 000 to 300 000 with confiscation of the goods that were the objects of the administrative offence, or without such or confiscation of the objects of the administrative offence.

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Article 16.9 : Nondelivery, the issuance (transfer) without the permission of the Customs body or loss of the goods or non-delivery of documents

thereto

Part 1 : Non-delivery of the goods transported according to customs transit, to the place of delivery or the issuance (transfer) without the permission of the customs body or loss of the goods that are under the customs control.Penalty: on citizens from 1500 to 2500 rubles with confiscation of the goods that were the objects of the administrative offence, or without such or confiscation of the objects of the administrative offence; on the officials - from 10000 to 20000 rubles; on legal entities - from 300 000 to 500 000 rubles with confiscation of the goods that were the objects of the administrative offence, or without such or confiscation of the objects of the administrative offence.

Part 2 : Non-delivery of customs, commercial or transport (shipping) documents for the goods transported according to customs transit, to the place of delivery. Penalty: on citizens from 300 to 500 rubles, on officials – from 500 to 1000 rubles, on legal entities - from 5000 to 10000 rubles.

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Article 16.12 : Non-observance of the time period of submitting the customs declaration or of the presentation of documents and information

Part 1 : Non-observance of the established time periods for submitting the complete customs declaration during the temporary periodic customs declaring, the resulting declaration on the goods in declaring of the goods in non-assembled or a disassembled state or the customs declaration and (or) the necessary documents and information during the release of the goods before the submission of the customs declaration.Penalty: on officials from 3000 to 5000 rubles, on legal entities from 10000to 50000 rubles.Part 2 : The submission of the customs declaration with the infringement of established time periods in cases if the declaring is carried out after the actual exportation of the goods.Penalty: on officials - from 5000 to 10000 rubles, on legal entities - from 50000 to 100000 rubles.Part 3 : The failure to submit in the course of the time period established by the customs body of documents and information necessary for carrying out of the customs control.Penalty: on officials - from 10000 to 20000 rubles, on legal entities –from 100000 до 300000 rubles.

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Article 16.15: The failure to submit reporting to the customs body in cases envisaged by the legislation of the Russian

Federation about customs business, or presentation of the reporting containing inaccurate information.

Penalty: on officials - from 2000 to 5000 rubles, on legal entities - from 20000 to 50000 rubles.

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Article 16.16 : Infringement of the time periods of the temporary storage of goods.

Penalties with confiscation of the goods that were the objects of the administrative offence, or without such: on citizens from 1500 to 2500 rubles; on officials - from 10000 to 20000 rubles; on legal entities - from 50000 to 100000 rubles.


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Article 16.17: Presentation of invalid documents for the release of the goods before the submission of the customs declaration if the information contained in

such documents influences the making by the customs body of the decision on the release of the

goods before the submission of the customs declaration

Penalty: on officials - from 10000 to 20000 rubles. on legal entities - from 50000 to 100000 rubles.


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Article 16.21: Using the goods that were illegally moved across the customs border of the Russian Federation and the Customs union and in relation to which the customs duties, taxes were not paid or interdictions

and restrictions established by the normative legal acts of the Russian Federation (the Customs union) were not observed, or the goods and (or)

transport vehicles that were released, including the goods that were conditionally released, according to the customs procedure the use of

which goods, their transfer to possession or to use or disposition of which in different ways was admitted in the infringement of the established

interdictions and (or) restrictions, as well as the acquisition, storage or transportation of such goods

Penalty: on officials - from 10000 to 20000 rubles, on legal entities - from one half to the double size the cost of the goods that were the objectsof the administrative offence, with their confiscation or without such or the confiscation of the objects of the administrative offence


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Article 16.22: Infringement of the time periods of the payment of the customs duties, taxes that are subject to payment in connection with the movement of the goods across the customs border of the Customs union

Penalty: on citizens from 500 to 2000 rubles, on officials - from 5000 to 10 000 rubles, on legal entities - from 50 000 to 300 000

rubles.

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Article 193 : Non-return from abroad of funds in foreign

currency by the manager of an organisation, required to be transferred without fail to accounts in the authorized banks of the Russian Federation (Customs union) in accordance

with its laws.

Note:The act envisaged by this Article shall be deemed to be committed on a large scale if the sum of the non-returned funds in

foreign currency exceeds 30 million rubles.

Punishable by deprivation of liberty for a term of up to three years.


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Article 194 : Evasion of customs payments collected from organizations or natural person

Part 1 : The evasion of customs payments collected from organisations or natural person committed on a large scale.Note:The evasion of customs payments shall be regardedas committed on a large scale if the amount of non-paid customs payments collected from the natural person exceeds 1 000 000 rubles, from organizations – 2 000 000 rubles, on especially large scale - if the amount of non-paid customs payments collected from the natural person exceeds 3 000 000 rubles, from organizations – 10 000 000 rubles.Fine in an amount of from 100 000 to 500 000 rubles or totalling a wage or any other income of a convict over a period of from 1 to 3 years or with compulsory labour for a period of 480 hours or up to two years of imprisonment.Part 2 : The same deed committed: a) by a group of persons by prior conspiracy; b) on especially large scale.Fine in an amount of from 300 000 to 500 000 rubles or totalling a wage or any other income of a convict over a period of from 2 to 3 years or up to 5 years of imprisonment with the deprivation of right to hold certain posts or engage in certain activities for a term of up to 3 years or without such deprivation.


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Confiscation - forced legal seizure without compensation, appeal to the state ownership upon

conviction instruments and means of crime, a certain type of property obtained by crime, property received

as a result of the conversion of the previously specified property, the property of the used (intended

to use) for the financing of terrorism, organized group, illegal armed groups, criminal association

(criminal organization).


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Customs &

Corporate

Lawyers

Bar association Customs &

Corporate Lawyers (Moscow,Russia)


Ukraine(Kiev, Ukraine)

Corporate Lawyers Group (CIS)

(Moscow, Russia)

Customs & Сorporate Lawyers

(SPb)(St. Petersburg,

Russia)

Corporate Lawyers Group South Russia

(Rostov-on-Don, Russia) Customs &

Corporate Lawyers Italy (Rome-Milan-

Ancona, Italy)Customs &

Corporate Lawyers North America

(Toronto, Canada)

International partnership network of law companies Customs & Corporate Lawyers


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Representatives of the bar are members of various

expert associations in the field of law, including

members of the Expert Council of the Committee

on budget and taxes of the State Duma of the Federal Assembly of the Russian

Federation, members of the counsel on customs policy of Chamber of commerce and industry of Russia as

well as experts of the Agency for strategic

initiatives at the Government of the Russian

Federation.

Bar association is an Official consultant of International forums and

congresses on intellectual property rights «Expopriority»

Bar association

was established on 10 June

2003


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Bar association provides a full range of services in the field of foreign economic activity:

legal support of foreign trade transactions, including

the examination of all the basic documents required for the assessment of risks

and tax consequences

legal support of business related to the prevention

and pre-trial settlement of conflict situations

trial settlement of disputes connected with application of international and

customs law

representation when considering foreign economic disputes,

including those outside the Russian Federation

protection of rights to objects of intellectual

property

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THANK YOU FOR YOUR ATTENTION!

107045, Russia, Moscow, Rozhdestvensky Boulevard

9, p. 1, of. 320,

Tel. +7 (495) 623-50-24; +7 (495) 608 33 17 (fax), website: www.customs-advocate.ru


Liability of foreign economic activity's participants for customs laws violation Oksana Kurochkina 1...

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