The Customs Value of Goods in the Event of a Customs Warehouse Procedure

The essence and features of the customs regime «customs warehouse» in modern conditions of foreign economic activity are investigated. The sequence of stages of customs clearance of goods in the customs regime «customs warehouse» is clarified. The problems of «customs warehouses» and the peculiarities of placing goods in the customs warehouse, as well as the peculiarities of storage of goods, the permissible terms of their storage and the list of necessary documentation are analyzed. Today, the «customs warehouse» regime in the process of implementing various foreign economic transactions is extremely relevant and profitable. «Customs warehouse» is a customs regime according to which foreign or Ukrainian goods are stored under customs control with conditional full exemption from taxation by customs duties and without the application of measures of non-tariff regulation of foreign economic activity. This customs regime is applied when placing goods at the customs warehouse. Operations carried out with goods stored in the customs regime of the customs warehouse at the customs warehouse should not change the characteristics according to which these goods were classified according to the Ukrainian classification of goods of foreign economic activity. The term of storage of goods in the customs regime of the customs warehouse may not exceed 1095 days from the date of placement of these goods in the specified customs regime. Taking in to account the above, the «customs warehouse» mode is extremely convenient to use, and it can also be used when the final buyer is still unknown when importing goods, but when using this customs regime, the following problems arise: 1. Imperfection of the existing legislative regulation of activities when placing goods in the customs regime «customs warehouse». 2. Lack of clearly established tariffs for the use of services for the placement of goods in a customs warehouse. It is necessary to establish a unified pricing policy for the provision of customs warehousing services, taking into account the regional aspect. 3. Insufficient system of control and accounting of balances of goods in the customs warehouse. Such leftovers of goods can be in the customs warehouse for an unlimited time, and foreign economic entities will spend money on their storage. In addition, there is no legal regulation that could regulate the control of residues. 4. Inconsistency of the equipment of customs warehouses with existing requirements, since the customs warehouse must be provided in a favorable state, namely: technical and protective means to ensure the necessary regime, for the allocation of separate areas for customs warehouses near checkpoints or customs posts. 5. Failure to comply with the storage conditions of products, as well as the occurrence of financial losses of both counterparties under a foreign trade contract. The storage of goods in customs warehouses should be organized in such a way as to exclude the risks of damage to property, its theft, and destruction. According to the individual specialization of the product, there are requirements for the formation of special storage conditions, namely the appropriate temperature regime, which must always be maintained. In some cases, the only well-thought-out solution to solve this problem is to place the product in a temporary storage warehouse. To simplify customs procedures, the customs authorities of Ukraine are actively implementing the mechanism of electronic declaration, which significantly reduces the cost and reduces the time of customs clearance and enhances the effectiveness of customs control. Issues of efficiency of customs clearance are extremely important in foreign economic activity, as they directly affect the volume of exports and imports.

Movement of goods through the customs border of Ukraine

The relevance of the study is due to the fact that in the context of the spread of new models of business organization, including foreign trade transactions with electronic commerce goods (ECG) purchased by individuals on foreign electronic trading platforms, it is necessary to develop issues related to the determination of tax consequences for persons — participants of such models. The term “goods” in this study means any movable property, including currency of the member states of the Eurasian Economic Union (EEU), securities and (or) currency values, travel cheques, electricity, as well as other movable things equated to immovable property. Since the value added tax (VAT) is one of the most significant for both the state and taxpayers (tax agents), the subject of the study is the mechanism for determining the tax consequences of VAT when foreign sellers sell to Russian individuals electronic commerce goods (ECG) purchased through foreign trading platforms (“marketplaces”), while being (stored) at the time of conclusion of the contract of sale in customs warehouses in Russia. The purpose of the study is to solve the problems related to the determination of VAT payment obligations in connection with the sale of ECG stored in a customs warehouse, namely: economic aspects related to the grounds for the emergence of VAT payment obligations, and the feasibility of changes in the current regulation with regard to the possible consequences. The methodology of the study is based on the use of classical for indirect taxation approaches to the determination of the place of sale of goods and, accordingly, to the decision on the occurrence in the territory of Russia of the object of taxation by the VAT. The scientific novelty of the study consists in the development of approaches to the determination of tax consequences on VAT on the sale of goods from the territories of customs warehouses within the framework of cross-border electronic commerce, as well as possible changes in the current regulation, based on the consideration of the economic sense of the considered business model. It is concluded that when a foreign seller sells goods to Russian individuals through a “marketplace” that are stored in a customs warehouse on the territory of Russia during the purchase period, the seller is subject to VAT. A person of an EAEU member state (Russian organization) — an e-commerce operator — who transfers goods to a purchaser is obliged to present to the purchaser the corresponding amount of VAT, performing the duties of a tax agent. Proposals on the establishment of VAT concessions for transactions on the implementation of ECG from the territory of the customs warehouse were elaborated, the results concluded that the discussion and insufficient economic justification of such proposals.

Russian courts over the past few years have established a clear position on the legal role of the judgements of the Court of the Eurasian Economic Union (EAEU Court) declaring legal acts of the Eurasian Economic Commission (EEC, Commission) on the classification of goods inconsistent with the Treaty on the Eurasian Economic Union. Several reasons for rejecting the legal force of such judgements of the EAEU Court have been formulated, while some of such grounds originate from the Russian legal order and one originates from the legal order of the Eurasian Economic Union. The reason deriving from the international law which has become fatal for the legal fate of the judgements of the EAEU Court, was paragraph 102 of the Statute of the Court stipulating that the judgements of the EAEU Court cannot abrogate or change the law of the Union. Accordingly, all Russian courts, including the Supreme Court and the Constitutional Court, have reached a unanimous opinion on the continuing nature of the EEC legal acts despite the declaration of such acts as illegal by the EAEU Court. Thus, legal acts of public authority — the Eurasian Economic Commission — are legally effective on the territory of the Russian Federation, but there are no ordinary legal means to challenge such acts. Undoubtedly, such a situation is intolerable, since, in fact, it is a legal deadlock and, moreover, it infringes the right to judicial protection provided for by the Constitution of the Russian Federation. Based on the analysis of the practice of Russian courts, the authors conclude that remediation of this shortcoming of the legal system of the EAEU would allow Russian courts to admit legal role of the decisions of the EAEU Court. Russian procedural legislation, in particular, the provisions of the Arbitration Procedure Code on the possibility of case reconsideration on the base of the new circumstances — in case of revocation of the ruling of another body — can also be used in relation to legal acts of the Commission which were recognized as contradicting to the acts of a higher level, i.e. to the EAEU Treaty, to the Customs Code and to other treaties within the EAEU. Prior to amendments to the Statute of the EAEU, the way to remediate of this shortcoming could be the decision of the Supreme Eurasian Economic Council on the procedure for the enforcement of the EAEU Court judgements invalidating the legal acts of the EEC.

This article is devoted to the background and history of the functioning of the Eurasian Economic Commission in the post-Soviet space. It examines the activities of its predecessor, the Customs Union Commission, which operated until November 2011, when, on the basis of the treaty “On the Eurasian Economic Commission,” its powers were transferred to the supranational body of the Eurasian Economic Community—the Eurasian Economic Commission. The Commission of the Customs Union was designed to facilitate the completion of the formation of the legal framework of the Customs Union of members of the Commonwealth of Independent States, including the Customs Code of the Customs Union. The main activities of the Eurasian Economic Commission from the moment of its creation to the present time are traced, and the main stages of the work of the Eurasian Economic Commission of all three convocations of its Boards are examined. The relationship of this supranational body of the Eurasian Economic Community and the Eurasian Economic Union with foreign partners is explored; and the conclusion of agreements on free trade zones with a number of states and regional associations, as well as achievements and challenges faced by integration processes in the Eurasian Economic Union space in the field of trade, customs procedures, technical regulations, industrial cooperation, digitalization of all spheres of activity, etc., is considered.

The article is concerned with the background and history of the functioning of the Eurasian Economic Commission in the post-Soviet space. It considers the activities of its predecessor, the Customs Union Commission, which operated until November 2011, when, on the basis of the treaty “On the Eurasian Economic Commission”, its powers were transferred to the supranational body of the Eurasian Economic Community – the Eurasian Economic Commission. The Commission of the Customs Union was designed to facilitate the completion of the formation of the legal framework for the Customs Union of the Commonwealth of Independent States members, including the Customs Code of the Customs Union. The article traces the main activities of the Eurasian Economic Commission from the moment of its creation to the present time, describes the main stages of the work of the Eurasian Economic Commission of all three convocations of its Boards, the relationship of that supranational body of the Eurasian Economic Community and the Eurasian Economic Union with foreign partners. A particular attention is paid to the conclusion of agreements on free trade zones with a number of states and regional associations, as well as achievements and challenges faced by integrative processes in the in the Eurasian area in the field of trade, customs procedures, technical regulations, industrial cooperation, digitalization in all spheres of activity, etc.

The Eurasian Economic Commission is the executive body of the integration association. By virtue of its purpose, the Commission also performs a law-making function. The implementation of this function follows from its most important role in the integration association — the «engine of integration» and «keeper of treaties» and directly influences the development of integration within the Eurasian Economic Union, forming its legal reality. The paper examines the procedure for implementing lawmaking activities by all political bodies of the EAEU, as well as the stages of the legislative process. Particular attention is given to the legislative function of the Commission, its place in the institutional system of the EAEU and its influence on integration processes. In addition, the experience of both the European Union and the constituent entity of the Russian Federation — the Kaliningrad region in the field of legislative activity is considered for its rational use within the framework of Eurasian integration. Based on the results of the study, the author identifies problems arising in the EAEU legislative process and proposes ways to solve them, as well as formulates proposals to improve the effectiveness of lawmaking activities of all political bodies of the EAEU, in particular the Eurasian Economic Commission.

INTRODUCTION. The Eurasian Economic Union has been in existence for more than 8 years and during this time has achieved certain successes in economic integration. However, in order to continue progressive development, constant work is required to improve the institutional structure, including the reform of Eurasian Economic Commission (hereinafter referred to as the EEC), by using the experience of the European Union (hereinafter referred to as the EU). In this article explores the Eurasian Economic Commission’s right to apply to the Court of Justice of the EAEU.MATERIALS AND METHODS. This study uses the works of both Russian and foreign specialists in the field of European law and EAEU law, as well as analyses of the EU and EAEU legal acts. General scientific methods of knowledge - analysis, synthesis, induction and deduction - were used during the study. Special legal methods - formal-legal, technical-legal, the method of legal analogy, as well as the comparative legal method - were also used in the work.RESEARCH RESULTS. As follows from the analysis of the law enforcement practice of the EEC, almost every year during the monitoring of the implementation of the Union law by the member states, the Commission reveals various violations of the integration legal order, most often concerning the obligations in the field of the EAEU internal market. Based on the results of monitoring, the Commission sends notifications to member states in the form of decisions, which the member states are obliged to implement, but in the future the Commission cannot influence them if they do not implement the Commission's decision. Thus, the Eurasian Economic Commission, as a regulatory body of the Union, at this stage of development of Eurasian integration does not have enough power to perform the tasks assigned to it by the Treaty on the Eurasian Economic Union and other legal acts. In this connection, it is necessary to amend the legal acts governing the activities of the EEC, in particular to give the Commission the right to appeal to the EAEU Court on cases of non-compliance by member states with the prescriptions of the law of the Union. At the same time, it is important to note that the European Commission (hereinafter – the EC) has the relevant right, which allows it to more effectively perform the tasks assigned to it by the EU constituent treaties – this, in turn, allows the EAEU to adopt the positive features of the EC functioning, thereby improving the activities of the Eurasian Economic Commission.DISCUSSION AND CONCLUSIONS. As part of the research, the authors analyse the legal status of the EEC, its powers, the grounds for the Commission's application to the EAEU Court, the competence of the EAEU Court, as well as the prospects of the EEC's right to apply to the Court of EAEU. The authors conduct a brief comparative legal analysis of the powers of the Eurasian Economic Commission and the European Commission, as well as the competence of the European Court of Justice and the Court of EAEU. The main problem is highlighted - the lack of EEC's competence to apply to the Court of EAEU to resolve a dispute. As a result of the study, it is proposed to grant the Commission the right to apply to the Court, as well as expand the competence of the EAEU Court.

Purpose. To analyze the development of the legal institute of digital (electronic) customs within the framework of the Thematic Block “electronic customs”, as well as an Expert Group on the preparation of a draft document «On the development of approaches to the formation of digital customs” in the Eurasian Economic Union.Design/methodology/approach. The research article is devoted to the formation of the institute of electronic (digital) customs. The subject of the research is the institute of digital (electronic) customs. The activities of the Eurasian Economic Commission (EEC) for the development of digital (electronic) customs are comprehensively considered. The issue of creating digital customs in the context of the functioning of the Thematic Block“electronic customs”(thematic block) is analyzed. Special attention is paid to the same questions within the framework of the work of the Expert Group on the preparation of the draft document «On the development of approaches to the formation of digital customs”(expert group). The authors analyze the competence and procedural aspects of the Thematic Block.Social implications. The introduction of the digital customs institute into the law of the Eurasian Economic Union (EEU, Union) and customs regulation as a whole are aimed at optimizing customs operations and simplifying trade procedures.Practical meaning. The results of the study are of interest to the EEC customs block; they can be used in the framework of organizing the work of the “Electronic Customs” Thematic Block and Expert Group. The article is recommended to researchers, as well as experts from the Customs Administrations of the EEU Member States and the World Custom Organization (WCO), whose activities are related to the improvement of customs regulation, the modernization of the digital customs institute, as well as international customs law.Originality/value. The research material is based on an analysis of the practical aspects of the EEC’s and the WCO activities and is a continuation of scientific and practical publications on the development of the digital customs institute.

A task. To systematize the EC (EU) experience in terms of obtaining rights and obligations akin to those enjoyed by the WCO members, including highlighting the actions and stages in connection with the consideration of the EC application for membership in the World Customs Organization. Conclusions. The research article is devoted to the issues of the EC (EU) legal status of in the WCO and the use of the EC precedent for the implementation of the Strategic Directions for the Development of Eurasian Economic Integration until 2025 (Strategic Directions) in terms of joint actions with Member States aimed at obtaining the Union’s membership status in the WCO. The subject of the study is the activities and stages passed by the EC in the framework of interaction with the WCO to change the legal status from an observer to akin to the WCO membership. The research paper presents in abstract form the legal instruments and legal structures that have been developed at the expert level to satisfy the EC application. The identified activities, by analogy, can be used to develop an action plan (roadmap) for the Eurasian Economic Union (EEU) to obtain the WCO member status. Based on the results of the study, conclusions and recommendations were formed within the framework of cooperation between the Eurasian Economic Commission and the WCO. Social consequences. Conducting a study of the legal status of customs and economic unions in the WCO is associated with the implementation of paragraph 11.7.5. of Strategic Directions [6] in terms of cooperation with this international organization. Practical value. The results of the study are of interest to the customs cooperation block of the Eurasian Economic Commission (EEC), and can be used by specialists from customs and other executive authorities in the EEU member states, EEC experts to organize and implement mutually beneficial customs cooperation between the EEC and the WCO. The article is recommended to researchers, teachers, students, graduate students and other categories of students in the Russian Customs Academy, in other universities and the WCO regional training centers in the specialties “Customs” and “Jurisprudence”. Originality/value. The research material is based on an analysis of the practical aspects of the activities of the EEC, the WCO and is the result of a comprehensive study of the issue of the legal and organizational basis for obtaining the WCO member status by economic and customs unions.

In the context of the modern approach to organized cross-border electronic commerce, it becomes obvious that a sufficient level of demand for goods supplied from foreign Internet sites and distributed for the purposes of personal consumption of citizens is being formed. However, at this stage of regulation of cross-border trade, the following tasks remain unresolved: assessment of the applied practice of cross-border electronic commerce using customs warehouses in foreign countries; assessment of export-import potential for conducting cross-border operations in the Russian Federation, implemented in conditions of cross-border electronic sales. It is also necessary to have a bond policy for storing, saving and declaring goods imported from international trading platforms in Russia. In connection with the above, the article presents some results of the analysis of foreign practice in the fi eld of foreign cross-border trade. Problems have been identifi ed in the organization of foreign trade between Russia and the countries of the Eurasian Economic Union. The intermediate facts of the customs experiment in the EAEU are outlined, including the need for duty-free storage of foreign goods placed under the customs warehouse procedure. A new system of indicators is needed to assess the budgetary and socio-economic eff ectiveness of measures for the functioning of customs warehouses. As a result of the research, the article proposes algorithms for calculating the budgetary efficiency of introducing the customs procedure of a customs warehouse within the framework of activities in the single economic space.

The relevance of the research topic lies in the fact that the customs procedure of processing in the customs territory, which allows the use of imported goods in products manufacture for export without paying customs duties and taxes, becomes the object of close attention of foreign economic activity participants, causing both a high level of interest from the economic point of view and certain difficulties associated with its application in foreign trade. The purpose of the study is to conduct an economic and statistical analysis of the application of the customs procedure of processing in the customs territory and to propose ways to improve it. The tasks to achieve the goal were: analyzing the theoretical and legal foundations of the customs procedure application, analyzing its application, identifying the customs control stages over its application, identifying problematic aspects in its use, and proposing ways to solve them. When performing the tasks, the following general scientific methods were used: observation, induction and deduction, and collection and analysis of statistical data. As the study result, conclusions have been formulated based on the results of economic and statistical analysis of the application of the customs procedure of processing in the customs territory, the customs control stages over its application have been identified, the directions in which problems arise in the procedure application have been revealed, and proposals for their solution have been developed.

The aim of the article is to develop a typology for purchase and sale of foreign goods under the customs procedure of the customs warehouse and to propose a mechanism for the formation of economically sound tax consequences of VAT based on this typology. The subject of the research is transactions with goods under the customs procedure of the customs warehouse and their taxation mechanism. The methodological basis was economic methods, a generalization method, and a comparison method to study the approaches in Russia and abroad to the formation of the institutional structure of the customs procedure of the customs warehouse. The study results are a typology of purchase and sale of foreign goods under the customs procedure of the customs warehouse, the base for economically sound tax consequences that comply with the principle of neutrality in determining the tax consequences of VAT. The author concludes that for taxpayers relied on economic rather than tax interests, it is necessary to create conditions in the tax and customs legislation of the Russian Federation that taxation was identical in identical operations. Thus, it is necessary to clarify the norms of Article 147 of the Tax Code of Russia, so that under the current regulation were no legal opportunities to reject Russian territory as a place of sale of goods located in the Russian customs warehouse when they undergo the customs procedure of the customs warehouse. The directions for future research are to develop a mechanism for introducing economically sound tax consequences that comply with the principle of neutrality in determining VAT for sale of foreign goods imported into the territory of the Russian Federation and placed under the customs procedure of the customs warehouse.

To determine the capabilities of the Eurasian Economic Union to overcome the global economic crisis associated with the spread of coronavirus infection, and to restore the economy in the post-coronavirus period, the author conducts a SWOT analysis and reveals the strengths and weaknesses of Eurasian integration in the context of external challenges. The Eurasian Economic Union has a fundamental basis that allows it to undertake anti-crisis measures quickly — this is the presence of institutional mechanisms of interaction on the platform of a supranational body — the Eurasian Economic Commission. As a result, the author proposes to focus on such advantages of the association as high human and scientific potential; and to prioritize the development of information and communication and medical technologies, energy efficient technologies, a “green” economy, which may become a specialization of the region in the new time, in order to avoid falling into export and commodity dependence on the new economic leader — China. The relevance of the study is due to the ongoing work of the Eurasian Economic Commission to prepare an action plan for the implementation of the Strategic Directions for the Development of Eurasian Economic Integration until 2025.

This article aims at examining gender representation within the Eurasian Economic Union’s regulatory bodies - the Eurasian Economic Commission and the Court of the Eurasian Economic Union (here-and-after – Commission and Court, respectively). While the Eurasian Union (EAEU) encourages economic cooperation among its member states, quite limited study has been performed since 2015 to investigate gender inclusion within its regulatory structures. As a result, the primary goal of this article is to assess the existing state of gender parity across these institutions and make recommendations to attain more balance. The study will look into the Commission and Court's current gender representation, including how many women occupy leadership roles and are members. Furthermore, it will investigate whether there are any existing policies or initiatives to promote gender equality inside the EAEU's regulatory framework. Generally, examining gender representation in the Union's regulatory bodies will help to gain a better picture of the EAEU's commitment to international legal principles.