Regulations On procedures of application of excise marks

27.03.1997 Regulations On procedures of application of excise marks to alcoholic drinks, ethyl (food) alcohol and tobacco goods imported to the Azerbaijan Republic

В«ApprovedВ»
K. Heydarov Chairman
State Customs Committee
Azerbaijan Republic

В«AgreedВ»
F. Yusifov
Finance Minister
Azerbaijan Republic

Baku, March 27, 1997

REGULATIONS
On procedures of application of excise marks to alcoholic drinks, ethyl (food) alcohol and tobacco goods imported to the Azerbaijan Republic

I. General

1.1 Application of excise marks to alcoholic drinks, ethyl (food) alcohol and tobacco goods imported to the Azerbaijan Republic will be carried out in accordance with the Decree # 527 of the Azerbaijan President В«On regulation of storing, import and sale of production of alcoholic drinks, ethyl (food) alcohol and tobacco goodsВ» dated December 20, 1996.

1.2 Excised goods which are not produced by CIS countries, as well as which are produced by CIS countries (certificate of origin), but imported outside CIS will marked by excise duty marks, such kind of goods, which are produced within CIS countries and imported from those countries will be marked with special marks.

1.3 The importer of those goods will be responsible for marking of the excised goods subject to marking.

1.4 Sale price of the excise marks will be established by State Customs Committee in an amount of 90 (ninety) manats in proportion to the production and delivery costs of those marks.

II. Purchase of the excise marks

2.1 Excise collection marks and special marks will be sold to the importers of goods by the customs bodies serving their area of activities. The marks will be bought until the actual delivery of goods subject to marking to Azerbaijan Republic.

2.2 In order to buy a mark the importer should submit the following documents to the corresponding area customs body:

2 copies of application form attached herein (Attachment 1, Attachment 2);
the copy of the license on import of goods marked with excise marks;
original and copy of the agreement on foreign trade regarding the delivery of goods;
Copy of the document certifying advance payment of money to the account of the corresponding area customs body for purchasing of the ordered marks.

The words В«for excise marksВ» should be specified in the column of В«Definition of the paymentВ» of the document.

The original of the agreement on foreign trade will be compared with its submitted copy and returned to the importer.

2.3 The amount to be transferred to the account of the corresponding area customs body for purchase of marks will be defined according to the following formula:

A=Pm x N

Here

A вЂ” is the amount of the money required for purchase of marks.

Pm вЂ” is the price per mark.

N вЂ” is the number of goods (number of boxes for tobacco goods and bottles for alcohol drinks) subject to marking.

For example, if the importer specifies purchase of 10.000 (ten thousand) excise collection marks (or special marks) in his application, in this case amount of money to be paid to the account of area customs body will be 900.000 (nine hundred thousand) manats.

2.4 Issue of excise collection marks and special marks will be carried out in accordance with the Section II of the В«Procedures on application of excise marks to alcohol drinks, ethyl (food) alcohol and tobacco goods imported to the Azerbaijan RepublicВ» (hereinafter referred to as Procedures).

In this case delivery of registers on foreign trade transactions of the organisations delivering excised goods and goods by the importer to the Azerbaijan Republic upon the established period, their submission to customs bodies and obligation of the importer on payment of custom charges will be made up according to the procedures specified in Attachments 3 and 4.

2.5 The area customs body will register the money incoming to its account from the sale of marks in the corresponding columns of the register and transfer it to the special bank account of the State Customs Committee during the period established by legislation.

2.6 A note В«Money receivedВ» will be specified in the first copy of the application submitted for purchase of marks and returned to the importer, its second copy will be kept at the customs bodies.

2.7 The order by local customs bodies to State Customs Committee for purchase of marks will also be made up in two copies. Its first copy will be submitted to the State Customs Committee, but the second copy will be kept at the local customs bodies.

2.8 In case of non-payment of excise duties in advance upon the sale of the marks, the importer should present the guarantee on its payment of the bank included into the register of the State Customs Committee. The bank guarantee presented will be made up according to the following form (Attachment 5). The amount ensuring payment of excise taxes upon delivery of excised goods in accordance with the numbers of excise marks should be specified in the guarantee.

2.9 The Senior official of the area customs body will make notes on receipt of the guarantee (by specification of amount of the guarantee, date of its registration, bank requisites, etc) in both copies of an application submitted for the purchase of marks upon receipt of bank guarantee and on number of payment documents, its date, date of incoming money, etc. upon receipt of payment documents for marks.

2.10 The Bank guarantee does not give reasons for prolongation of payment of payment documents upon customs declaration of goods.

2.11 Upon submission of marks to the importer the employee of the local customs body will give a receipt in 2 copies agreed with the Ministry of Finance. The form of the receipt is attached to the Regulations (Attachment 6).

2.12 After completion of transactions upon issue of marks second copy of the importer applicant, payment documents submitted for the purchase of marks, his obligations, bank guarantee, or payment document for advance payment of excise duty and second copy of the receipt will be kept at the corresponding customs body in accordance with the procedures of keeping of serious financial documents.

III. Procedure of marking of excised goods imported to the Azerbaijan Republic

3.1 Except the cases established by current legislation according to customs procedure, marking of excised goods imported to the Azerbaijan Republic will be carried out outside the customs territory of the Azerbaijan Republic.

3.2 Marks of excise collection and special marks will be stuck on the necks of the bottles of the alcoholic drinks. The marks should be stuck in such a way that its central part should coincide with the central part of the lid and upon use of the goods the mark should be immediately spoiled.

There should be chosen such a stick for sticking of the marks that it should resist low and high temperatures, different humidity degrees, it should not be possible to re-use it without spoiling.

The importer of the goods will be responsible for keeping the requirements on the choice of stick.

In case of non-observance of the requirements, the customs bodies will have the right of not allowing those goods into the territory of the Republic.

3.3 The procedure of marking of cigarettes made of tobacco or its substitutes will be carried out in accordance with the Attachment 7.

IV. Customs clearance of the marked goods

4.1 Customs clearance of the marked goods will be carried out by the area customs body which sales marks for those goods. In this case customs taxes and duties, charged by the customs bodies will be calculated and charged according to the established general rules.

4.2 Upon filling up the customs declaration of goods, the declarer should specify the series, numbers and amount of the marks declared in the column 50 of this declaration.

4.3 Excise duty to be paid upon the customs declaration of goods will be calculated as follows:

Ae=T x Ep

Here:

Ae вЂ” is the amount of excise duty to be paid (in manats),

T вЂ” is the total amount of the excise duty calculated,

Ep вЂ” is the total excise duty paid upon purchase of the marks.

If the importer of goods had paid the excise duty beforehand (upon purchase of the marks) according to the quantity of goods he imported, in this case excise duties should be re-calculated upon customs clearance of goods (taking into account actual quantity, amount, etc. of the declared goods) and the difference should be paid. Example: the importer paid the excise duty in an amount of 4.500.000 manats calculated in accordance with the quantity of goods he had specified in his application upon the purchase of excise marks.

But upon customs clearance of goods the excise duty was re-calculated in accordance with the quality, quantity and amount of the actually imported goods and made up 4.700.000 manats. In this case the importer of goods should pay the difference in an amount of 200.000 manats (4.700.000 вЂ“ 4.500.000).

Otherwise, this amount should be taken in the future activity of the enterprise or refunded from the budget.

V. Control over collection of excise duties and use of special marks

5.1 Control over collection of excise duties and use of special marks will be carried out in accordance with the Section 7 of the В«RegulationsВ».

5.2 All importers, which purchased marks should submit the following documents and present a report to the area customs body not later than 6 months from the date of the purchase of the marks:

Customs declaration of the goods, which is the basis of accomplishment of customs clearance of the marked goods;
Not used or the damaged marks.

In this case series and quantity of the marks specified in the customs clearance of goods and returned marks should correspond with the series and quantity of the marks sold to the same person.

5.3 In case of non-observance by the importer of the requirements specified in the Section 5.2, the area customs body will charge the importer all customs duties, as well as excise duties calculated according to the amount of goods specified by him in his application for the purchase of marks.

VI. Final provisions

6.1. Issue of goods for free turnover

In case of excised goods subject to marking and imported to the Azerbaijan Republic are stipulated for free turnover, those goods will be marked according to general procedures and subject to excise duty.

The provisions of this paragraph will also be related to the excised goods imported by all means of transportation.

6.2. Re-import of not marked goods

Not marked goods of the Azerbaijan Republic, which were exported from the Azerbaijan Republic before should be marked for the purposes of free turnover upon import.

6.3. Transit traffic of the excised goods

Excised goods, which are moved according to transit customs procedures under the customs control, will not be marked.

6.4. Re-export of the not marked goods

Excised goods declared to customs bodies for final re-export will not be marked. Those goods should be re-exported within the period of 6 months after the receipt of entry of goods. The goods, which are declared for re-export and not exported within the period of 6 months should be marked and will be liable to excise duties.

In case of marked goods are declared to customs bodies for re-export, marks on excise duties and special marks stuck on those goods should be damaged in such a way that they should not be used for the sale of goods in the Azerbaijan Republic.

6.5. Temporary delivery (shipping) of the not marked goods

Except separate samples delivered (shipped) for the purposes of demonstration at shows, fairs, international meetings such other events, temporary delivery (shipment) of excised goods to be marked will not be permitted. Upon free turnover temporary delivered (shipped) goods will be marked according to general procedures and liable to excise duties, in case of other customs procedures they will be marked according to these procedures and be liable to excise duties.

6.6. Duty-free shops

Excised goods delivered to duty-free shops will not be marked. Goods delivered to the duty вЂ“free shops violating that procedure should be marked and be liable to excise duties.

6.7. Customs warehouses

Excised goods, which should be marked upon handing over to the customs warehouses, will not be marked and liable to excise duties. Those goods will be marked according to general procedures and liable to excise duties upon release from the warehouse for free turnover, in case of other customs procedures they will be marked according to that procedures and be liable to excise duties.

6.8. Export of goods

In case of marked goods, which are manufactured abroad, being related to export customs procedures, excise marks stuck on those goods should be damaged in such a way that those marks should not be used for sale of goods within the Azerbaijan Republic.

Chief ____________________________________________________

(name of the customs body)

Registration в„–________________________________________199___

(filled in by the customs body)

Application

For purchase of the excise collection marks

__________________________________________________________

(Full name, code, address, bank requisites of the organisation)

___________________________________________________________

We ask you to sell us marks in the following amount:

amount____________________unit _________, amount______________________unit

(kind of the mark)

amount____________________unit _________, amount______________________unit

(kind of the mark)

amount____________________unit _________, amount______________________unit

(kind of the mark)

Total amount ______________________________________________________ manats

(in words)

The specified numbers of the marks are necessary for the purchase of the following goods:

___________________________________________________________

(nomenclature and number of the goods, number of boxes for tobacco goods and

___________________________________________________________

number of cigarettes in each box, number of bottles of

___________________________________________________________

alcoholic drinks and specification of their capacity)

The specified goods will be purchased according to the agreement on the foreign trade number ___ dated ________Concluded with __________company and will be delivered to __________________________________________________________

(Address)

Money for the purchase of marks were transferred to the account в„– ____, of the customs body according to the payment document dated ____________

Amount ____________________________________________________________

(in words)

The procedures of application of excise marks to excised goods have been introduced to us.

Head of the enterprise _______________________________name, surname, patronymic)

(signature)

SEAL

Chief accountant___________________________________name, surname, patronymic)

Note of the customs body on the receipt of money

__________________________________________________________

(latest date of delivery of goods)

Chief ______________________________________________________

(name of the customs body)

Registration в„–_________________________________________________199__

(filled in by the customs body)

APPLICATION
For purchase of the special marks

__________________________________________________________

(Full name, code, address, bank requisites of the organisation)

______________________________________________________

We ask you to sell us marks in the following amount:

amount____________________unit _________, amount______________________unit

(kind of the mark)

amount____________________unit _________, amount______________________unit

(kind of the mark)

amount____________________unit _________, amount______________________unit

(kind of the mark)

Total amount _______________________________________________manats

(in words)

The specified numbers of the marks are necessary for the purchase of the following goods:

________________________________________________________

(nomenclature and number of the goods, number of boxes for tobacco goods and

_________________________________________________________

number of cigarettes in each box, number of bottles of

_________________________________________________________

alcoholic drinks and specification of their capacity)

The specified goods will be purchased according to the agreement on the foreign trade number ______ dated _____concluded with __________________company.

CIS country, manufacturing the good _____________________________________

(name of the country)

Money for the purchase of marks were transferred to the account # _____, of the customs body according to the payment document dated __________

Amount ___________________________________________________

(in words)

The procedures of application of excise marks to excised goods have been introduced to us.

Head of the enterprise ___________________________________(name, surname, patronymic)

(signature)

SEAL

Chief accountant________________________________________(name, surname, patronymic)

(signature)

Note of the customs body on the
receipt of money

Note of the customs body on the latest period of the customs clearance of the goods

Record book of the foreign trade transactions of the organisations delivering excised goods subject to marking

в„–	Na me of the or ga ni sa ti on	code	Re gis tra tion num ber and date of the app lica tion for pur cha se of the ma rk	Marks ordered		в„– and date of the pay ment docu ment for pur chase of the mark	Amo unt of pay ment for pur chase of marks	Date of receipt of money to acco unt	Date and в„– of the docu ment on mo ney tran sfer to the acco unt of State Cus toms Com mit tee	Amo unt of gua ran tee and bank requi sites	La test date of clea rance of goods	Date and в„– customs clea rance of goods (CCG)	в„– of goods accor ding to CCG	Total of cus toms pay ments accor ding to CCG indi cated (accor ding to pay ment kin ds)	Amo unt of retur ned marks	в„– and date of pay ment order or col lec tion order for re ceipt of cus toms pay ment	Date of re ceipt of mo ney to acco unt	Date and в„– of trans fer docu ment of mo ney to the state bud get of the Azer bai jan Repub lic
				в„–	Kind and Seri es
1	2	3	4	5		6	7	8	9	10	11	12	13	14	15	16	17	18

Chief ________________________________________________________________________

(name of the customs body)

Registration Number ______________________________________________________________199____

(to be filled in by the customs body)

OBLIGATION
On delivery of goods

________________________________________________________________________

(full name, code, address, bank requisites of the organistaion)

Undertakes to actually deliver to the Azerbaijan Republic,

goods _____________________________in an amount of ________________________,

(the names of the goods)

to place them____________________________________________________________,

to clear them and to pay all customs duties in accordance with customs procedures on free turnover until В«____В» ______________199___

Document ensuring payment of customs duties for the above mentioned goods will be presented as follows:

(to fill in if necessary)

Guarantee obligation в„–___ of the_____________________________________________bank in an

amount of _____________________________________________dated В«____В» _________199___

(to be written in words)

Payment document в„–___in an amount of ____________________________________dated

(to be written in words)

В«____В» ______________199___

On transfer to deposit account of the customs body for ensuring of the customs duties

Head of the organisation _____________________________(name, surname, patronymic)

Chief accountant

Seal

Note of the senior executive of the customs body

Chief customs body ______________________________________________________

(name of the customs body)

Guarantee Obligation

В«____В» ______________199___

________________________________________________________________________

(full name, code, address, MFO of the bank or other credit organisation

________________________________________________________________________

# of license of the National bank on accomplishment of currency transactions

________________________________________________________________________

telephone, telex and fax numbers)

Hereby guarantees that if goods subject to marking are not submitted to customs bodies in accordance with the number of marks purchased according to the application в„– __ dated ____________________________ or not used or damaged marks are not returned until ________________________________________________________________________by

(name of the organisation)

will have customs duties in an amount of _________________________within the period of 3 days after the date specified above.

In case of non-payment by the bank of money to be received for this guarantee, the Bank will allow the customs bodies to completely write off those money, including penalty in amount of 0,3% for each day of delay.

This guarantee obligation will be valid until the completion of customs clearance of the goods subject to marking, or until the return of not used marks or until writing off of the money to be received according to this guarantee obligation.

This guarantee obligation will not be applied as a payment guarantee upon delay of customs duties or their prolongation.

Manager of the bank __________________________________(name, surname, patronymic)

(signature)

Chief accountant ____________________________________( name, surname, patronymic)

(signature)

Bank seal

RECEIPT в„–____

Registration ______________________________________________________199____

(filled in by the area customs body)

has been given to_________________________________________________________

(Full name, code, address, bank requisites of the organisation)

Excise marks:

number______________________unit _________, amount_______________.manats

(kind of the mark)

number______________________unit _________, amount_______________.manats

(kind of the mark)

number______________________unit _________, amount_______________.manats

(kind of the mark)

Total amount ________________________________________________________manats

(to be written in words)

Series and numbers of the marks issued_________________________________________

_________________________________________________________________________

Signature of the employee, which issued the marks ________________________________

Received _________________________________________________________________

(position, name, surname, patronymic)

Power of Attorney в„–__________________________date ___________________________

Passport series _____________________________number__________________________

Issued_____________________________________________________________________

(place of issue of the passport)

Received В«____В» ________199__ Signature___________________________

Seal of the customs body

Note: Form of the receipt has been agreed with the Ministry
of Finance of the Azerbaijan Republic.

Procedure of marking of tobacco goods

a) Sticking on the upper surface

The mark should be stuck on the upper surface in such a way that it should be at the equal distance from the right and left sides, as well as front and back sides of the box.

b) Sticking on the side

The mark should be stuck on the side in such a way that it should cover the part of back side of the box, corner and side of the cover and immediately spoil upon opening.