How to Export to Tajikistan

/Home/T-U-V Countries/Tajikistan (Country Code 992)/Export to Tajikistan

Customs Clearance Process in Tajikistan



June 2007



Author: Jamshed Rahmonberdiev, BISNIS Representative for Tajikistan

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2007. ALL RIGHTS RESERVED FOR USE OUTSIDE OF THE UNITED STATES.

NOTE: This report should be used for general reference purpose only. As customs-related legislation and regulations are constantly changing, it is advised that exporters consult with customs officials from the country of importation to obtain accurate and current information that would pertain to their specific transaction.



I. GENERAL MARKET INFO

Trade statistics

TajikistanÌs trade turnover in 2005, in $ mln.

Country


Export


Import

Total, including


908.7


1330.1

Netherlands


423.4


2.0

Switzerland


27.0


8.4

Turkey


143.4


21.9

Iran


36.7


30.9

Russia


82.8


256.5

Kazakhstan


19.7


168.3

Uzbekistan


66.5


152.9

Latvia


44.2


0

Azerbaijan


0.6


114.9

Ukraine


3.9


84.3

Italy


15.6


51.7

China


5.7


92.5

UAE


0.3


24.3

Romania


0.9


61.7

Source: Foreign Trade Annual Book, 2006, State Statistics Committee



Tajikistan Ò US trade turnover in $ mln.

Year


Export


Import

2006


43.1


60.7

2005


28,8


241,0

2004


55,7


7,3

Source: http://www.census.gov/foreign-trade/balance/c4642.html


Customs environment in general
a) New legislation

* New tax code introduced in 2005
* New customs code introduced in 2005

b) Major Problems and Hurdles

According to a 2007 IFC survey of small and medium enterprises, the following difficulties hinder foreign trade with Tajikistan:

* High transportation costs;
* The absence of institutional support to facilitate foreign trade operations;
* Complicated regulatory procedures;
* Internationally unrecognized technical standards;
* The transportation of goods within the country is very difficult, especially during the winter months, due to mountainous terrain and harsh weather;
* 80% of entrepreneurs in Tajikistan consider export and import procedures in Tajikistan to be complicated or very complicated.



Also according to this survey (original source FIAS), the following are considered major problems with import operations in Tajikistan:

* Under-invoicing in double-entry bookkeeping is reportedly high, leading to the use of other valuation methods by customs authorities. Valuation disputes are frequent and are handled through the High Economic Court under the Customs Chapter of the Administrative Violation Code (Tajikistan has no valuation dispute resolution administrative tribunal and without WTO membership is under no obligation to establish one). Six different valuation options remain available to customs officials under the new code, three of which the business community believes are not consistently applied;
* Imported goods must be certified according to Tajik standards (even imports of certified products);
* Customs authorities require original letters of credit and other important documents; they do not accept faxed documents (as is customary internationally) or e-mails;
* Customs authorities reportedly still require a foreign exchange certificate from the transactional bank, despite this requirement being removed in the 2003, 2004, and 2005 reforms on current account transactions.



In addition, the following hurdles further complicate the current customs clearance process:

* There is a lack of storage facilities owned by customs authorities (in general and specifically at terminals);
* Lack of warehouses owned by customs (in general and at terminals specifically);
* Existing warehouses at terminals are not sufficiently equipped; man labor is required to load and unload trucks.

c) U.S.-Tajik Agreement

Established in July 1993, this agreement between the Government of Tajikistan and the United States of America sets a basis for favorable duty rate regimes. In particular, the following statement applies:



For goods produced or exported to a territory of another party, each of the parties of this agreement shall unconditionally provide favorable regime not less favorable than to those offered for similar goods sourced or exported to a territory of any third country on all concerned issues:



* Any customs duties and fees applied to or related with export and import, including methods of application of such duties and fees;
* Payment forms for import and export transactions, including international wiring of such payments;
* Rules and formalities related with import and export, including those related to customs clearance, transit, warehousing and reloading;
* Any taxes and internal fees applied directly or indirectly to imported goods, and
* Procedures for sale, procurement, transportation, distribution, storage and usage of products in internal market;

d) Customs Fees

Goods and transportation means imported to the customs territory of Tajikistan are subject to fees:

* Customs duty
* Value added tax
* Excise tax and
* Customs fees



The taxation regime for imported goods is the same as for national products.
e) Customs Duty

Customs duties are set by the decree of the Government of the Republic of Tajikistan dated October 25, 2003 (reference number 450). A copy of the decree is available in Russian from BISNIS upon request.
f) Value Added Tax

The value added tax (VAT) rate is 20%. The VAT is calculated using the following formula:



VAT = (CV+ CD + Excise) x 20%



Where,



VAT Ò Value Added Tax

CV Ò Customs Value

CD Ò Customs Duty

Excise Ò Excise Tax
g) Excise tax

According to commodity classification of goods for foreign economic activities of CIS (TNVED SNG), article 247 of the Tax Code identifies a list of goods subject to excise tax.



Excise Tax applies to some sub-items under the following classification codes:

Group 22 Ò Spirit, Non-alcoholic and alcoholic beverages

Group 24 Ò Processed tobacco, industrial replacement of tobacco

Group 27 Ò Gasoline and oil products

Group 40 Ò Tires (protectors), new and second-hand

Group 71 Ò Gold, silver and platinum jewelry

Group 87 Ò Automobiles



Excise rates can be applied as a percentage of the value of the goods, or as a fixed amount per unit of goods.


II. CUSTOMS CLEARANCE



The customs clearance process is governed by Section II of the Customs Code (enacted in December 2004 and effective as of January 1, 2005). The Section provides a detailed description of the regulating norms for customs clearance.



The customs clearance process applies to the import and export of goods. It is considered to be complete when the necessary procedures and paperwork are complete, followed by the application of appropriate customs regime to goods.



For the purpose of this report, the usual form of customs clearance will be described in detail. The usual form of customs clearance is applied to import and export of goods for commercial purposes. The simplified form of customs clearance is applicable to physical entities crossing the border (business travel and regular travel).
Procedure

At-a-glance, the process starts with the arrival of goods at the customs unit at a border. Depending on the shipping method (rail, automobile, or air), the goods are then escorted by customs authorities to the nearest warehouse facility for temporary storage. The consignee is responsible for collecting all supporting documents for submission of the Customs Cargo Declaration to customs authorities. Upon completion of this two-phase process (described in detail below), the goods are released. Although the process is very well outlined in customs regulating documents, the actual implementation mechanisms are not in place. Import of equipment or technologies that constitute chartered capital for new projects as well as upgrading of existing productions lines are subject to specific waivers. Customs authorities have recently developed the application mechanism of these waivers, but actual implementation remains very challenging.



The major practical challenges to implementation include the following: lack of licensed storage facilities (customs warehouse or temporary warehouse), complete lack of cargo handling equipment at existing non-licensed warehouse facilities, imposed five day limit for trucks to unload and leave the country, lack of a specific list of goods that are subject to mandatory certification (according to current regulations all goods are subject to mandatory certification), lack of an independent certification body, and lack of a customer-friendly environment by customs and certification authorities. Other challenges include complicated procedures such as the excessive time, cost and paperwork involved. According to the IFC survey, a Tajik importer spends 44 days, $3,550 and fills out 10 documents.



Typically, the consignee is responsible for declaration of goods. The consignee must appoint an authorized representative for customs clearance process. This authorized representative could be a certified staff member or customs broker hired by consignee. The goods must be declared within 15 days from the date of arrival to port of entry.



For the purpose of this report, customs clearance process is divided into three phases: (i) preliminary operations, (ii) application process, (iii) clearance by the Office of Payments and Currency Control, and (iv) clearance by the Office of Customs Control to the final release of goods. The purpose of each phase is described below.



Preliminary Operations:

The purpose of preliminary operations is to notify the consignee of the arrival date and place. The carrier of goods is required to inform the consignee. The consignee makes the necessary preparation for customs clearance, unloading and storage.



Application Process:

The purpose of the process is to collect all of the necessary documents for submission of the Customs Cargo Declaration. A full description of the required documents is listed in the section ÏCustoms DocumentationÓ of this report.



Clearance by the Office of Payment and Currency Control:

The purpose of this clearance is to ensure that the Customs Cargo Declaration is complete, all supporting documents are attached, customs duties are pre-paid, and customs duties are calculated and deducted from the pre-paid customs duties account.



Clearance by Office of Customs Control:

The purpose of this clearance is to assign a reference and registration number to the customs cargo declaration, verify the accuracy of the customs cargo declaration, verify the accuracy of supporting documents, and provide a customs inspection of the goods.
a) Preliminary operations

* Notification on import transaction. The carrier of goods or transportation means should prepare this notification. Customs authorities will register this notification and will assign the time and location where these goods and transportation means should be delivered to proceed with customs clearance.
* Inspection of temporary storage warehouse to ensure it is in accordance with storage requirements of goods and transportation means prior to full completion of the customs clearance.
* Supervision over conveyance of goods and transportation means to a temporary storage warehouse until customs clearance and control has been completed in full. Any kind of good can be stored in the warehouse; given it will not harm other goods being stored. Customs authorities determine the duration that goods can be stored in storage warehouses, but cannot exceed 2 months.
* Selection and supervision of samples and tests. The review, measuring, and selection of probes and samples are carried out at the temporary storage warehouse. For these purposes, samples and probes should be extracted in minimum quantities and should be sufficient to complete the necessary examination and identify the nature and characteristics of the goods. This procedure is performed to identify the customs value of the goods.
* Notification by the export-import entity of information and documentation for a file in the customs control, given that such file has not been already established.



Another purpose of preliminary operations is to enable customs authorities to learn about goods that are being imported and proceed with customs clearance and customs control. However in reality, the goods are placed in non-licensed unequipped warehouses and the customs clearance process begins immediately.
b) Application Process

At this stage, the customs inspector accepts documents prepared for customs clearance and the Customs Cargo Declaration is inspected for accuracy and correctness. The customs inspector prepares a file (a simple file folder brought in by the declarant) that includes the following documents from the importer:

* Copy of the certificate of registration to confirm that the importer is a legal entity;
* Copy of the taxpayerÌs identification number, original is showed during each clearance procedure.
* Copy of the charter (usually not required, but should be ready if requested)
* Copy of incorporation documents (usually not required, but should be ready if requested). If equipment from manufacturing plants is being imported as chartered capital, a registered charter and legal statement from the Ministry of Justice should be included.
* Copy of the certificate of registration with the State Statistics Committee; the original of the certificate may be requested to show during each clearance procedure.



When a preliminary file is ready, the customs officials inspect the documents that are required for customs clearance and control. Below is the list of documents that must be attached to the Customs Cargo Declaration:

* Authority of declarant (power of attorney to certified staff of importer, or contract with customs broker)
* International sales contract
* Shipping documents (bill of lading, packing list, customs declaration of the shipping country or transit and etc);
* Invoice
* Certificate of Origin
* Bank reference confirming 100% payment of the advance payment for the listed goods;
* Transit declaration, confirming arrival of goods to point of destination.
* Compliance with limits and/or prohibitions
* Certificate of Quality issued by Tajik Standard, or one of the certified laboratories:
1. Quarantine Certificate for agricultural products, issued by the State Quarantine Agency of the Ministry of Agriculture and Environmental Protection
2. Veterinary Certificate (if applicable) issued by the Office of Veterinary Control of the Ministry of Agriculture and Environmental Protection;
3. Quota and licenses for alcoholic products (spirit), tobacco and tobacco products issued by the Ministry of Agriculture and Environmental Protection;
4. Certificate for pharmaceutical goods issued by the Ministry of Health;
5. Certificate for import of agricultural products, ornamental and cultivated plants (including seeds), and silkworm issued by the Ministry of Agriculture and Environmental Protection;
6. Certificate for radio electronic devices and high frequency devices issued by the Ministry of Transport Communications.



Declarant should list these documents on a blank sheet of paper using the table provided below:



c) List Of Documents



ATTACHED TO

CUSTOMS CARGO DECLARATION SERIAL NUMBER:

SUBMITTED BY CUSTOMS SPECIALIST TO CUSTOMS:

FOR THE PURPOSE OF CUSTOMS CLEARANCE



Name of document


Number


Quantity


Original or Copy

Regional identification, Customs Cargo Declaration serial number and customs regime










Contract










Certificates of quality, conformity

Other relevant documents:










Shipping documents










Licenses and other permission documents





















List prepared and submitted along with documents to customs by:





Documents, as listed, received by customs inspector

Name:





Name:

Signature:





Signature:

Date:





Date:




















The first copy of the list is submitted with the customs cargo declaration to customs, the second copy is for the declarantÌs records. It should be indicated whether originals or copies of the documents have been submitted.



Once customs officials have reviewed the documents, they proceed to the following procedures:

a) Check data in customs cargo declaration for accuracy and completion.

b) Check for appropriate commodity goods classification identification number to ensure accuracy, completeness and identification of good.

c) Check for accuracy of the country of origin and validate that corresponding documents confirm this information.



If any of the required documents are missing, an appropriate record will be made on the reverse side of the first copy of the declaration. This record will list the missing documents and the customs official will endorse the record with his signature and a seal with his identification number. The Chief of the customs authority responsible for customs clearance will determine the deadline for submission of the missing documents and data. This decision is recorded on the reverse side of the first copy of the declaration and is dated and endorsed with his signature.



If presented documents are considered to be sufficient for customs purposes and customs valuation, then the customs cargo declaration and supporting documents are transferred to the Office of Customs Payments and Currency Control.
d) Clearance by the Office of Payments and Currency Control

At this stage, the office official carries out the following procedures for customs control:

* Calculates customs payments
* Makes an appropriate record in the customs cargo declaration
* Takes measures for payment of customs payments
* If preferences or privileges are applied, the payment inspector verifies the legitimacy of such preferences. If they are determined to be legitimate, such preferences or privileges are applied in the appropriate manner.



During this process, officials of the Office of Customs Payments may request additional documentation that was not initially enclosed including:

* Invoice for transportation, or officially endorsed calculation of transportation expenses if these costs were included in the invoice. This will vary from condition of supply of goods;
* Insurance documents;
* The declarant may also present documents that allow discounts on custom fees or full exemption from customs fees.



The Chief of the Office of Customs Payment and Currency Control makes the ÏCustoms Payments EnforcedÓ seal. It is endorsed with the signature of the payment inspector and sealed with an identification number.
e) Clearance by the Office of Customs Control

Upon completion of these procedures, the customs cargo declaration and supporting documents are returned to the customs inspector for customs control, the third stage of clearance process.



At this stage, goods and transportation means are inspected and released according to the customs regime stated earlier.



The customs official carries out the following procedures:

* Assigns a reference and registration number to the customs cargo declaration;
* Verifies accuracy of customs cargo declaration;
* Verifies accuracy of supporting documents;
* Carries out customs inspection.



Upon completion of these procedures, the customs inspector puts his seal with an identification number on the customs cargo declaration. The reference and registration number of the customs cargo declaration is written on the top right corner of each document that is submitted with the customs cargo declaration. If applicable, identification numbers are assigned to transportation means and commodities.



Upon completion of the customs clearance process, the customs inspector distributes all four copies of the customs cargo declaration and supporting documents in the following order:

* 1st Copy Kept with customs authorities who conducted customs clearance and customs control
* 2nd Copy Given to the Office of Statistics of the Regional Customs Department by the customs inspector
* 3rd Copy Returned to declarant
* 4th Copy Returned to the owner of goods

f) Actors and their interaction
1) Customs officials

Processing Inspector Ò customs official authorized to process customs clearance and control for imported and exported goods in Tajikistan



Payments Inspector Ò customs official from the Payments and Currency Control Department of the customs authority who is responsible for the customs application and tariff regulations.



Customs Broker Ò company incorporated under the laws of the Republic of Tajikistan and listed in the Register of Customs Brokers and who is entitled to provide customs operations and services. Relationship between customs broker and importer (consignee) is based on a written contract for services.
2) Declarant

The declarant is an entity (legal or physical) that prepares and submits the Customs Cargo Declaration. The declarant has the right to:

* Check goods which are being declared prior to submission of the Customs Declaration;
* Take samples of goods with no objection of customs authorities;
* Review results of sample tests that are available with customs authorities;
* Submit documents and information necessary for customs clearance process.



During the customs clearance process, the declarant is responsible for:

* Submission of the customs declaration and supporting information;
* Payment of customs duties
* Present declaring goods upon the request of customs authorities

3) Broker acting on behalf of the Declarant

Customs brokers act on behalf of the declarant or any other party to perform certain customs procedures. Relation between customs broker and declarant or any other party is governed by a contract.



More information on the broker and subsequent rights and responsibilities are described in the Customs Code.
4) Importer (consignee)

A company registered under the laws of the Republic of Tajikistan that brings in goods for personal or business use.
g) Expected course of action

The following actions are expected for customs clearance process:

* Consignee engages customs broker to clear shipment;
* Consignee provides documentation requested by customs;
* Documentation submitted;
* Necessary payments made;
* Shipment/documentation inspected;
* Shipment released.

h) Temporary customs warehouse

Once the goods have arrived at a port, they will remain in temporary storage under control of the customs officials until they are released according to the specified customs regime. Goods can be temporarily stored in appropriate facilities or locations. The list of temporary customs warehouses is published periodically by the Customs Department.



In general, in order to place goods in a warehouse, customs officials request only documentation to identify the goods.



Unless otherwise specified, the goods can be stored at a temporary customs warehouse for a maximum of 20 days. For goods in certain categories, the Customs Authorities may have a shorter duration.
i) Internal customs transit

Internal customs transit is conducted according to the Customs Code, whereas customs transit is a customs regime to move commodities between two customs points, including via territories of third countries without application of custom duties, fees and waiver for compliance with economic policies.



Transit of commodities within Tajikistan is carried out without any limitations, except for items specifically outlined in the Government decree (reference 111, of February 19 1997 concerning ÏMeasures for improvement of foreign economic activitiesÓ and a ÏList of Goods and Services for which import, export and transit is carried out according to government decisionsÓ).



Below is list of the goods that require special government decision:

* Natural gas;
* Uranium and other radioactive matters and products, technologies, devices and equipment, sources of radioactive radiation, including radioactive waste;
* Gun powder, explosives and wastes;
* Narcotics and psychotropic agents, poisons;
* Chemical agents for plant protection;
* Armament, military equipment, parts for its production, works and services in the area of military and technical cooperation;
* Technical specifications for military products (designer and user specifications);
* Official and civil weapons;
* Military uniforms and attributes;
* Means of protection again military poison-gas, particles and accessories;
* Encrypting devices (including encrypting machinery, parts, encrypting software), technical specifications for encryption devices;
* Electricity.

j) Customs carrier

Although a legal basis for the existence and operation of customs carrier exists, as of 2004 there are no customs carriers in Tajikistan. Appropriate regulation ÏConcerning Customs CarrierÓ was signed in early 1996 (reference number 63, February 23, 1996). According to the Customs Code any legal entity incorporated under the laws of Tajikistan can be a customs carrier. A customs carrier license is issued by the Customs Department of the Ministry of State Revenue and Duties.


Customs Regimes



The Customs Code provides for the application of 18 customs regimes to goods that are listed below:



1) Free Circulation

2) Export

3) International Customs Transit

4) Processing in customs territory

5) Processing for free circulation

6) Processing outside of customs territory

7) Temporary Import

8) Customs Warehouse

9) Re-Import

10) Re-Export

11) Disposal

12) Reject in favor of State

13) Temporary Export

14) Duty Free Sale

15) Free Customs Zone

16) Free Warehouse

17) Movement of supplies

18) Special customs regimes



A customs regime is applied to any imported or exported goods. The importer has the right to choose the applicable customs regime as well as the right to change the customs regime for its goods within the period of time defined for each customs regime.



The following distinctive characteristics make one customs regime different from another:

* Origin of goods
* Movement of goods (import or export)
* Specific payment of customs duties and applicable taxes (value added tax, excise tax)
* Application of special tax benefits
* Maximum duration allowed for storage of goods under applicable customs regime
* Status of goods upon completion of customs clearance (partial or full release)

a) Free Circulation

Under this regime, goods are cleared for free circulation within Îcustoms territoryÌ without restrictions for consumption.



Goods are cleared, provided that the following conditions are met:

* Customs duties and taxes are paid
* Compliance with economic policy measures (restrictions)
* Compliance with other requirements provided in the Customs Code
* Customs clearance process is completed

b) International Customs Transit

Under this customs regime, foreign goods are moved through the customs territory of Tajikistan under customs control without necessitating payment of customs duties, taxes and waiver from compliance with economic limitation from the point of arrival to the point of departure from the customs territory. This is applicable only for routes that begin and end outside of the customs territory of Tajikistan.
c) Temporary Import

Under customs control, foreign goods placed in a customs warehouse can be used for a certain amount of time (referred to as Ïduration of temporary importÓ) on the customs territory of Tajikistan with either a full or partial waiver from customs duties, taxes and waiver from compliance with economic limitations, under the condition that goods will be exported from the customs territory within the defined term.
d) Customs Warehouse

Under the customs warehouse regime, goods can be stored under customs control without the payment of customs duties, taxes and waiver from compliance with economic limitations. Goods can be stored in a customs warehouse for up to three years. There are two types of customs warehouses: open and closed. Open warehouses can be used by any customer for any type of goods. Closed warehouses are typically utilized by the warehouse owners to store their own properties. Certain goods, which are determined by Government of Tajikistan, cannot be placed in closed warehouses.
e) Re-import/re-export

Goods that had previously been exported from the customs territory of Tajikistan can be re-imported within three years without payment of customs duties, taxes and with waiver from compliance with economic limitations. For customs purposes, goods placed under re-import regimes are considered as cleared for free circulation.



Goods that had previously been imported to the customs territory of Tajikistan can be re-exported without payment or with reimbursement of import duties and taxes, and waiver from compliance with economic limitations.
f) Temporary Export

Goods from Tajikistan can be used outside of the customs territory of Tajikistan for three years, with conditional exemption to pay customs duties. Goods under temporary exports are not waived from local taxes.
g) Duty Free

Duty free goods refer to imported foreign goods and/or goods made in Tajikistan for retail sale to natural persons leaving the customs territory of Tajikistan. Goods are sold in duty free shops without application of customs duties, taxes and waiver from compliance with economic limitations.
h) Free Customs Zone

Foreign goods can be places and used within the defined territorial border of free economic zones with full or partial exemption of customs duties and taxes, and waiver from compliance with economic limitations. Industrial and commercial operations with goods are allowed in free customs zones, but the retail sale of goods is prohibited.
i) Bonded Warehouse

In free warehouses goods are placed without the application of customs duties, taxes and with waiver from compliance with economic limitations. Free warehouses are established by the Government of Tajikistan and recommended by customs and foreign economic relations authorities. Goods can be stored in free warehouse for an indefinite period of time.
Customs Documentation

Information on all of the supporting documents (name/type of document, issued by, date and reference number, copy or original) that will be attached to the Customs Cargo Declaration is listed in a separate sheet of paper, attached as Attachment 1 to the Customs Cargo Declaration. Attachment 1 is prepared in two copies, one copy for submission with the Customs Cargo Declaration, and the second copy is kept with the declaring party as a reference.



When submitting the Customs Cargo Declaration, additional documents should be attached to confirm the following:



a) Authority of the delcarant to submit the Customs Cargo Declaration. Authorization can be in the form of (i) power of attorney from the importer to its qualified employee; or (ii) contract between the importer and the broker firm.

b) Right of ownership. This can be a sales contract or any other agreement which confirms the right of ownership to use the shipping goods.

c) Customs value of goods. This can be an invoice, pro-forma invoice, specifications or any other document.

d) Origin of goods. Certificate or declaration of origin of goods.

e) Payment or commitment to pay customs duties and taxes subject to selected customs regime and applicable waivers.

f) Shipment of documents to destination point. This could be a transit declaration or any other document according to international regulations.

g) Compliance with applicable limitations or quotas.

h) Compliance with mandatory standards specifications.

i) Registration with tax authorities (a letter of reference).
a) Customs Cargo Declaration

The customs cargo declaration is the most important document for export and import operations. Any disputes that may arise between a business and inspection authorities (tax or customs) are based on the customs cargo declaration and the accuracy of the data provided therein.



An authorized representative of the importer must fill out the customs cargo declaration. The customs broker or certified internal staff can act as an authorized representative. The form should be filled out in Russian or Tajik on a typewriter or personal computer system.



Customs legislation provides for the following forms of declaration: (i) oral, (ii) written, (iii) electronic. Oral and written forms of declaration are commonly used.



The following information must presented to customs authorities when goods are being moved across the border:

* Who is shipping the goods
* What type of transportation is being used
* Identification and codes of goods (classification of goods), quantity, and customs value of the goods
* Country of departure and country of origin of the goods
* Sender and consignee of the goods
* What customs regime is being stated
* Under what documents the shipment is being made

b) Commercial Invoice

Four copies of the original invoice are needed for the customs clearance process. The invoice should be translated into Russian or Tajik.
c) Contract

For customs valuation purposes, the contract and its addendums, being an integral part of the contract, should include as much detail as possible. For example:

* Nature of the transaction (sales contract, consignment agreement, commodity credit, commission agreement, rental, etc).
* Conditions of supply
* List of goods by assortments
* Volume (quantity) of imported goods
* Cost per unit (in the currency of the contract) and total value of the contract
* Quality requirements
* Procedure for reclamation concerning actual misbalance between quantity and quality of the goods
* Procedure, place of disputes settlement between seller and buyer (arbitrage conditions)
* Condition and terms of payment for imported goods

d) Transaction Passport

A transaction passport is not required by Tajik legislation and regulations. However, in Customs, authorities continue to require a transaction passport for export operations.
e) Packing List

A standard packing list is required for the customs clearance process.
f) Certificate of Origin

For goods manufactured in the country, the Chamber of Commerce and Industry of Tajikistan issues a certificate of origin. Principles of identification of the country of origin for goods in Tajikistan are based on existing world practices. The country of origin is a country where goods were produced and substantially processed according to established criteria.



The country of origin may mean a group of countries, a customs union of countries, a region or a part of a country if such identification may seem to be necessary.



Contact:

CHAMBER OF COMMERCE AND INDUSTRY

21 Valamatzade Street

Dushanbe, Tajikistan 734012

Tel: +992 (37) 221-5284

Fax: +992 (37) 221-1480
g) Criteria for substantial processing of a good

If more than two countries are involved in the production process of an item, the country of origin is identified according to a series of substantial processing criteria.



These criteria include:

* Change in the commodity classification identification number on the level of the first four digits, if such change is the result of processing;
* Ad-volare rule Òchange in the cost of a good where the percentage ratio of the cost of materials used or the added value achieves a fixed portion of the price of the good.



The following criteria are considered as invalid:

* Operations to provide security of goods during storage or transportation;
* Pre-sale operations, pre-transportation operations (division into parties, shipping, sorting, repackaging);
* Simple installation operations;
* Mixing of goods (components) where product characteristics do not substantially differ from source components.

h) Necessary certificates



1) Certificate of Quality issued by Tajik Standard

Contracts for supply of goods to Tajikistan should include a provision to have a certificate and conformity label. Since all goods imported to Tajikistan are subject to mandatory certification, the importer must obtain a Certificate of Quality and attach it when submitting the Customs Cargo Declaration. If the certificate is not presented to customs authorities, customs authorities will deny the import of goods to Tajikistan and will inform Tajik Standard until an international certificate is recognized or a certification is conducted.



2) Veterinary Certificate (if applicable)

Issued by the Office of Veterinary Control of the Ministry of Agriculture and Environmental Protection.



3) Phyto-sanitary certificate

The policy of the Government of Tajikistan concerning the development and support of sanitary norms is to protect the health and lives of people, animals and plants; it is not to create technical barriers for foreign products or protection of domestic producers.



4) Certificate of Compliance

Tajik Standard, a government agency under the Ministry of Economy and Trade, is responsible for governmental management of standards in Tajikistan.

Certificate of Compliance is issued by Tajik Standards Agency according to the law On Certification of Products and Services. The following goods are subject to mandatory certification.



* Children goods
* Food products, processed agricultural products and feed production
* Pharmaceuticals and herbs
* Consumer goods (that have contact with skin, food products and drinking water
* Fuel
* Consumer chemical
* Perfumery and cosmetics
* Poison chemicals and mineral fertilizers
* Products of agricultural machinery, equipment and for household purposes
* Agricultural equipment
* Individual protection means
* Electro technical, radio technical, electronic devices for testing of electric and magnetic compatibility and safety
* Construction materials
* Communication means
* Matter, materials and their products subject for flame and explosion
* Explosive materials and devices for explosive works, storage under pressure and weight lifting machinery
* Oil, oil products, gas, electric energy and heat energy



The certification of imported goods is based on protocols of tests conducted in testing laboratories accredited by Tajik Standard.



The Certificate of Conformity is issued according to the National Certification System of Tajikistan and certifies acknowledgement of a foreign certificate and can replace it in the territory of Tajikistan.



5) Certificate of Quality for Pharmaceutical Products

The import of medical equipment, supplies and pharmaceutical products requires a special certificate to be obtained that allows the importation of such goods. The Ministry of Health issues the certificate.



6) Certificate for import of agricultural products, ornamental and cultivated plants (including seeds), and silkworm

The Ministry of Agriculture and Environmental Protection issues the certificate.



7) Certificate for the Right to Use Communication Technologies

The State Communications Inspectorate of the Ministry of Transport and Communications issues the certificate.
i) Receipts for payment of customs dues

The customs clearance process does not start without documentation that customs duties have been paid. The majority of importers deposit a certain amount of funds to customs authorities in advance. Adjustments are then made based on the actual cost of customs duties and payments.
j) Transaction Terms - Buyer/Seller Responsibilities

The basis for transaction terms is Incoterms 2000, published by International Chamber of Commerce. Transaction terms are divided into four categories:

* The ÏEÓ Group (EXW)
* The ÏFÓ Group (FCA, FAS, FOB)
* The ÏCÓ Group (CIF, CIP, CFR, CPT)
* The ÏDÓ Group (DAF, DES, DEQ, DDU, DDP)



The Incoterms 2000 are recognized by the customs authorities. Other transaction terms may be used provided they do not contradict Incoterms instructions.
Customs Payments
a) Commodity Classification

Only customs authorities have the right to classify commodities and this is the only classification used for customs purposes. Goods are classified according to the Eurasian Cooperation Organization Commodity Classification System (a 10 digit commodity classification system).
b) Customs Valuation

When goods cross the customs border of Tajikistan, the declarant states the customs value to the customs authorities of Tajikistan. The customs value must be indicated in the customs value declaration. The declaring party is obliged to provide supporting documentation used for determination of the customs value. Customs authorities have the right to carry out their own calculations of customs value. However, the process of customs value verification/adjustment may not serve as a reason to delay the release of goods. If this happens, the declaring party can opt for conditional customs valuation.



Existing valuation rules for goods imported into the customs territory of Tajikistan provide for the following six methods:



* Transaction Value of Imported Goods
* Transaction Value of Identical Goods
* Transaction Value of Similar Goods
* Deductive Value Method
* Computed Value Method
* Reserve Method



The primary method is transaction value of imported goods. If the primary method cannot be used, the next method will be used in the order listed above.



The customs value of goods being imported to Tajikistan consists of transaction cost, actually paid or to be paid at the time of crossing customs border (to the port or other destination).



The following actual expenditures must be included in the transaction value of goods:

* Costs of transportation of imported goods to a port or place of importation
* Transportation, including costs of delivery of goods to airport, port or any other place of export
* Costs associated with loading, unloading, reloading and temporary storage
* Insurance



The following expenditures, if incurred by the buyer:

* Commission and brokerage fees, except buying commissions
* Cost of containers
* Cost of packing

c) Import Duty

Customs Duty Ò applied according to the law On Customs Duties for goods crossing customs border of Tajikistan. A copy of the Law with customs duty rates is available from BISNIS upon request.
d) Excise Tax

Excise Tax Ò applied to goods imported to the customs territory of Tajikistan according to the Customs Code and Tax code.
e) VAT

Value Added Tax Ò applied according to Customs Code and Tax Code. VAT rate is 20%.
f) Customs Processing Fee

There are two types of customs processing fees: goods for commercial purposes (0.15%), and goods for not-for-profit purposes, including international mail shipments (0.1%).
g) Customs Fee for Customs Supervision of Goods

Current fees for customs supervision of goods is 14 Somoni (US$3)/10 km
Preferential Tariff Regimes

Tariff preference is a reciprocal or unilateral provision of the trade policy for goods crossing customs borders of Tajikistan in the form of reimbursement of customs duties paid earlier, exemption from customs duties, deduction of customs duty rate, setting up of tariff quotas for imported and exported goods:



- For goods originating from Eurasian Economic Union

- For goods from least developed countries



Presently, Tajikistan is a member of the Eurasian Economic Community (EEC) formerly known as Customs Union. As a member of the EEC, Tajikistan has a 0% import tariff for goods originated in EEC member countries.
Prohibited or Restricted Imports

According to the Customs Code, import of some commodity items and transportation means may be prohibited for the following reasons: national security, protection of public order, moral of population, life and health of human person, protection of animals and plants, protection of environment, protection of art, historical and archaeological values of Tajikistan and foreign countries, protection of property including intellectual property, protection of interests of national consumers and other lawful interests of Tajikistan.



These commodities and transportation means are subject to immediate export outside of the Tajikistan territory or return to the territory of Tajikistan, unless there is no provision for their confiscation.



Export or the return of these goods and transportation means is carried out by the person carrying the goods at his/her own cost. In the case of disability or failure to immediately export the goods and transportation means, they are handed over to a temporary customs warehouse for storage, which is owned by the customs authorities of Tajikistan. Maximum duration for such storage is three days.



Alcohol and tobacco products are subject to license and limited import regulations. These are explained in detail in relevant government decrees and laws.
Membership in Free Trade Agreements

? Agreement on Customs Union and Unification of Economic Environment (26 February 1999).

? Agreement on establishment of the Eurasian Economic Community (10 October 2000).

? Tajikistan has received ÏobserverÓ status in the World Trade Organization (WTO) in 2001.

? Agreement between the Government of Tajikistan and the United States of America on trade relations (1 July 1993).

? Agreement between the Government of Tajikistan and the United States of America on encouragement and mutual protection of investments.
Applicable Legislation

? 2005 Customs Code

? 2006 Tax Code

? The law of Tajikistan On Certification of Products and Services

? Government Decree On Customs Tariffs

? Government Decree (10 January 2001, #3) on Guidelines for Application of Customs and Tariff Mechanisms for ventures with foreign investment registered prior 1 January 1995.

? The law of Tajikistan On Investments

? The law of Tajikistan On Customs Tariffs

? The law of Tajikistan On Foreign Economic Activity

? Instructions on Filling Out of Customs Value Declaration
POINT OF CONTACT

The Tajikistan trade representatives abroad do not have the institutional capacity to provide business and trade counseling support for companies.


III. PORTS OF ENTRY
1. Name of Port of Entry

Accurate and consistent information was not available at the time of preparing this report.
Corresponding Customs House(s) (contact info)



DUSHANBE CUSTOMS DEPARTMENT

36 Negmat Karabaev Street

Dushanbe, 734018

Tel: +992 (37) 234-9495/97

Fax: +992 (37) 234-7611



SOGD REGIONAL CUSTOMS DEPARTMENT

50-Let SSSR Street

Khujand, 735706

Tel: +992 (3422) 51233/23937



KHATLON REGIONAL CUSTOMS DEPARTMENT

61 Vahdat Street

Qurghon-teppa

Tel: +992 (3222) 24059

Fax: +992 (3222) 23580



GBAO CUSTOMS DEPARTMENT

Rudaki Street, The Customs

Khorog

Tel: +992 (35220) 6640

Fax: +992 (35220) 7448



TURSUNZADE CUSTOMS DEPARTMENT

Karl Marx Street

Tursunzade, 735000



Note: Phone numbers may change and were provided as is. BISNIS has not verified the accuracy of each phone number listed above.
Servicing Brokers (contact info)

Please contact a BISNIS representative.
Prevalent commodity types/transportation modes

According to statistics data of the Ministry of State Revenues and Duties, the prevalent transportation mode for imports and export of goods to and from Tajikistan is railway transport. Automobile transport (trucks) is widely used for domestic transportation between regions.



If you need counseling or require assistance in doing business in Tajikistan, please do not hesitate to contact BISNIS Representative for Tajikistan:



Mr. Jamshed Rahmonberdiev

BISNIS Representative for Tajikistan

The Embassy of the United States of America

109A Ismoil Somoni Avenue

Dushanbe, Tajikistan

Tel: +992 (37) 229-2000

Fax: +992 (37) 229-2050

Email: Jamshed.Rahmonberdiev@mail.doc.gov



For more information on Tajikistan, visit BISNIS online at http://www.bisnis.doc.gov