1. 1 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 29 – Customs union Bilateral screening: Chapter 29 PRESENTATION OF MONTENEGRO Brussels, 20-21 June 2013

2. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Customs value

3. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union CUSTOMS VALUE At first on a voluntary basis Member of the WTO since 2012

4. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union LEGAL FRAMEWORK Customs Law (Official Gazette of the Republic of Montenegro 7/02, 38/02, 72/02, 21/03, 31/03, 29/05,66/06,21/28 Chapter III ’’Value of goods for customs purposes’’ Articles 29-45 Implementing provisions to the Customs Law ( Official Gazette of the Republic of Montenegro 15/03, 81/06, 38/08) Part IV ‘’Customs valuation of goods’’ Articles 68-98

5. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union PURPOSE OF THE USE OF CUSTOMS VALUE Calculation of ad valorem duties VAT on imported goods Rules of origin Statistical data

6. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union METHODS OF DETERMINATION OF CUSTOMS VALUE 1. Transaction value ( Art.30 ) 2. Transaction value of identical goods ( Art.32 ) 3. Transaction value of similar goods ( Art.33 ) 4. Value based on unit price ( Art.35 ) 5. Computed value ( Art.36 ) 6. Available data -“fall-back method”( Art.37 )

7. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union TRANSACTION VALUE METHOD ( Art.30 )....... the price actually paid or payable for the goods sold for export to Montenegro and increased as set forth in the Article 38 of Customs Law, …….

8. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union TRANSACTION VALUE METHOD ( Art.30 ) Conditions: - No restrictions as to the disposition or use of the goods; - The sale is not subject to conditions for which a value cannot be determined; - No part of the proceeds of any subsequent resale will accrue directly or indirectly to the seller; - Buyer and seller are not related, or the price is not influenced by the relationship.

9. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union TRANSACTION VALUE METOD ADDITIONS ( Art.38 )...commissions and brokerage...,...materials...,tools, dies, moulds...,...transport and insurance of imported goods to the port or the place of introduction into the customs territory of ME..,...loading, unloading...,...design work and plans and sketches...,...royalties and license fees..., other......

10. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union TRANSACTION VALUE METHOD DEDUCTIONS (Art.39)...costs of transport after introduction into the customs territory of Montenegro...,...construction, mounting, assembling, maintenance or technical assistance, to be undertaken after the importation, e.g. of industrial plants, machinery or equipment...,...import duties and other charges payable in Montenegro by reason of the importation or sale of the goods..., other....

11. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union VALUE OF IDENTICAL GOODS (Art.32).......... transaction value of identical goods sold for export to Montenegro and exported at or about the same time and sold on the same commercial grounds and in approximately the same quantity as the goods being valued ……

12. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union VALUE OF SIMILAR GOODS ( Art.33 ) ……….. the transaction value of similar goods sold for export to Montenegro shall be considered as the customs value if the goods are exported at or about the same time as the goods being valued……

13. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union DEDUCTIVE METHOD VALUE BASED ON UNIT PRICE (art.35) ….. value based on the unit price at which the imported goods, or identical or similar goods, are sold within Montenegro in the greatest aggregate quantity to persons not related to the seller….

14. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union COMPUTED METHOD ( Art.36 )... based on the calculated value, consisting of the sum of: - the value of materials and cost of production or other treatments employed in producing the imported goods, - an amount for profit and general expenses equal to that usually reflected in sales of goods of the same class or kind as the goods being valued, - all costs and charges set forth in Article 38, Paragraph 1, Item 1), indents 4, 5 and 6 of the Customs Law.

15. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union METHOD OF AVAILABLE DATA “fall-back method” (A rt.37)...on the basis of data available in Montenegro, applying appropriate methods in accordance with the principles and main provisions of: - Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade of 1994; - Article VII of the General Agreement on Tariffs and Trade of 1994; - the provisions of Chapter III of the Customs Law;

16. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union PROVISIONAL DETERMINATION OF THE CUSTOMS VALUE ( Art.42 )...where in determining the customs value of imported goods it is necessary to postpone the final determination of the customs value, the goods may be released to the declarant provided that the payment of customs duties is secured...

17. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union CONFIDENTIALITY OF INFORMATION ( A rt.44a ) ….information and data necessary for validation and checking of customs value of goods, shall be considered to be an official secret and the customs authority must not further communicate it, without prior consent of a person or authorized bodies who revealed it, except in cases where a Court requires it to be revealed…...

18. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union RIGHT TO CHECK (Art.44 CL/Art.96 R) Customs may request the declarant to produce all required documents and information necessary for determining the customs value. The data concerning the customs value of the imported goods should be submitted correctly along with the customs declaration.

19. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union RIGHT TO PROVIDE NOTIFICATION REGARDING DETERMINATION OF CUSTOMS VALUE ( Art.94 R )... the customs shall, prior to reaching the final decision, inform in writing the declarant at his/her request of the reasons for the doubt, and provide him/her with the adequate time period for the explanation......customs decides in the form of decision…

20. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union RIGHT TO APPEAL (Art.8) An appeal may be lodged against the first-instance decision to the Ministry of Finance. The appeal shall not postpone the enforcement of the decision.

21. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union EDUCATION HANDBOOK FOR DETERMINATION OF CUSTOMS VALUE INSTRUCTIONS AND MEETINGS WITH CUSTOMS OFFICIALS EXPERT ASSISTANCE EXCHANGING OF EXPERIENCE - WORKING GROUP WTO WCO

22. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union THANK YOU FOR ATTENTION Stojanka Milošević Customs Administration of Montenegro Head of Depertment of value, origin of goods and laboratory tel. +382 20 442 018, e-mail: stojanka.milosevic@carina.gov.mestojanka.milosevic@carina.gov.me Irena Milačić Customs Administration of Montenegro Advisor in Department of value, origin of goods and laboratory tel. +382 20 442 025, e-mail: irena.milačić@carina.gov.meirena.milačić@carina.gov.me