Import and export
Foreign trade: customs declaration, customs payments, foreign-currency settlements and how to account for them
How does the export contract price become the customs value: are freight and packing added to the declaration, is delivery abroad deducted?
Export of dried apricots: the contract price is 48 000 dollars, while the customs value in the declaration is 45 950. Where does the difference come from? Under Articles 315, 316 and 317 of the Customs Code: which costs are added, which are deducted, and what happens if documents are missing or the price is determined later.
What is a customs regime: what «status» do goods get when they cross the border, and how are the 16 regimes grouped?
The second lesson of the course: what a customs regime is in plain words, why the same goods pass under different regimes for different purposes, the full list of 16 regimes with their codes, how to group them by direction, and a table of hypothetical shipments for one month.
Which documents are submitted for each of the 16 customs procedures: one table by the articles of the Customs Code
The Customs Code has a separate article for each procedure on the "documents required" for placement. Put side by side, they split the 16 procedures into four groups: declaration and accompanying documents only; procedures that require an additional document; procedures whose list is left to the Cabinet of Ministers; and procedures cleared with a special declaration (a short CCD or a transit declaration). The documents for a processing permit and tips on documents when choosing a procedure.
Which documents are needed for an export (code 10): how does one set of documents serve customs, the tax authority and accounting?
Export documents are needed in four places: by customs, which places the goods under the procedure, by the post at the border, by the tax authority to confirm 0% VAT and by accounting to record revenue. Which document is required by which article, which one serves several purposes at once and which date determines what: the example of an export of granite slabs by rail.
Which documents are prepared for an import (code 40): from the papers that travel with the goods to the journal entry
Before foreign goods reach the warehouse, the documents are collected in three layers: those that travel with the goods, those the carrier presents at the border and those the declarant submits to customs. What the Customs Code lists precisely, what it leaves to the Cabinet of Ministers and which entry is made in the books on the basis of each document: the example of an import of furniture fittings.
If a buyer makes a claim about exported goods or the goods do not arrive: how are a discount, compensation and the exchange difference recorded in the accounts?
Some of the LED lamps sent to Bishkek were damaged in transit, and the buyer asked for a price reduction. Is this a sales discount or compensation under a claim, at which rate is the discount recorded if the receivable was remeasured at month-end, what happens if the goods do not arrive at all, and what is done with the customs declaration and payments: full accounting under the Customs Code and NAS No. 21.
Where are freight, insurance, broker and certificate costs recorded in an export, and how do the delivery terms change the seller's profit?
The buyer offered two prices: at the lower one he collects the cargo from the warehouse himself, at the higher one the seller pays the freight and insurance. Why export costs go not to the cost of the product but to 9410, which line records each of them, and which offer leaves more profit: a calculation on the example of mung beans.
Export through an intermediary (commission agent): on whose balance sheet are the goods, when is revenue recorded and which documents are needed for 0% VAT?
A small manufacturer did not enter the foreign market itself and entrusted its export to an experienced trading company. On whose balance sheet does the atlas silk handed to the intermediary remain, at which rate is revenue recorded, where does the agency fee go, and when is VAT credited if the money arrives in the intermediary's account: the principal's and the commission agent's accounting in one example.
0% VAT on export: in which month is the VAT paid on raw materials credited, how is the negative difference refunded and what is recorded in the books?
No VAT is charged on export sales, but the VAT paid on raw materials is not lost. It is credited step by step as the buyer's money arrives, and in the end a negative difference appears. The difference between the zero rate and exemption, a two-month calculation, the refund procedure and journal entries using the example of a juice company.
Two foreign-currency advances were received for an export and the goods were shipped later: at which rates is revenue recorded and how is the remaining receivable remeasured?
Half of the contract amount arrived in advance in two parts, the rest after shipment. One sale is recorded at three different rates: each advance at the rate of its own day, the remaining part at the rate of the shipment day. Why the advance is not remeasured at month-end while the remaining receivable is: the full chain using the example of a knitwear company.
Free warehouse (code 73): if foreign goods are stored duty-free and without a time limit, what may be done there and how is cost calculated when part is imported?
A spare parts trader brought in 1 000 boxes of goods, but the domestic market needs only 600 of them for now. What the free warehouse procedure offers, which works are allowed there, why retail trade is prohibited and why two parts of one consignment end up with different costs in the books: 8 points and an accounting example.
Processing within the customs territory (code 51): if a product is made from a foreign customer's raw material, what is formalised at customs and what is recorded in the books?
A Kazakh customer sends aluminium profile, and a workshop in Uzbekistan assembles window frames from it and ships them back. Is duty paid on the profile, for how many years is the permit issued, what happens to the leftover profile and what does the workshop show on its own balance sheet: the example of one workshop under the Customs Code and NAS No. 21.
6 methods of determining customs value: how do you move on to the next one if the first does not work, and does it affect the cost of the goods?
The contract price does not always become the customs value. The Customs Code requires six methods to be applied in strict order. When each method is used, what is prohibited under the fallback method and how customs value differs from cost in the accounts: 8 points and a worked example of the deductive method.
Destruction (code 76) and abandonment in favour of the state (code 75): how to get rid of unusable or unneeded foreign goods without duty, and what is recorded in the accounts?
Part of a consignment of glass that arrived at the border is broken, and another part is cut to a size that does not match the order. Must they be imported with duty paid, or can the destruction and abandonment in favour of the state procedures help? Conditions, documents, prohibitions and accounting entries on the example of one company.
What are import and export: where do the words for "bringing in" and "taking out" come from, and who needs foreign trade?
The first lesson of the course: what import and export are in plain words, which Latin verbs both words come from, foreign trade using the example of dried apricots and a phone, why customs is needed, and who works in this field.
Temporary export (code 12): what conditions apply to goods taken out for an exhibition or a lease, and what happens if they are sold abroad?
A pump factory took a display unit to an exhibition in a neighbouring country, and someone there wants to buy it. Which goods cannot be exported temporarily, when the two-year term is extended and how the procedure is turned into export: 8 points and an example.
Re-export (code 11): if imported goods are returned to the supplier, how is the duty paid refunded and what is recorded in the accounts?
Part of the raw material did not match the contract and was sent back abroad unopened. The conditions of re-export, the two-year condition for refunding duty and taxes, the application to customs and the 10-working-day term, the claim entries in the books: the example of a packaging factory.
Re-import (code 41): what happens if exported goods come back, and how is it recorded in the accounts?
The buyer returned part of an export consignment. What conditions does the Code set for bringing it back without duties and taxes, from when is the time limit counted, and how does the returned product reduce revenue and cost of sales: 8 points and an example with dried apricots.
Processing outside the customs territory (code 61): if raw material is processed abroad and brought back, what is formalised and how is it reflected in the accounts?
Fabric went abroad to have a pattern printed on it and came back as printed chintz. Which permit is needed, on which value are duty and VAT calculated, what happens if the product does not come back, and through which accounts does the fabric pass in the books: the example of a textile company.
Customs transit (code 80): what conditions, obligations and documents are required when goods pass through Uzbekistan?
Transit cargo passes without duties and taxes, but in return the carrier answers for the seal, the time limit and the route. Articles 116–120, 218–225 and 257¹ of the Customs Code in 8 points and one trip example.
Export procedure (code 10): how are the revenue from goods shipped to a foreign buyer and the foreign-currency receivable recorded in the accounts?
The goods have crossed the border, but the dollars have not arrived yet. On which day and at which rate is revenue recorded, why is the receivable remeasured at month-end, and where does the exchange difference go when the money arrives: a full calculation using the example of a company exporting towels.
Sample cargo customs declaration: how to read the boxes of an import declaration?
A sample cargo customs declaration (form TD 1) filled in with fictional data: what goes in each box, which classifier the codes come from, and how the customs payments in box 47 are calculated. The blank form and the sample can be downloaded as PDF.
Import (40), temporary admission (42) or customs warehouse (74): how to choose the procedure?
Under all three procedures the goods are in the country, but payments, time limits and what may be done with the goods are completely different. A comparison based on Chapters 9, 11 and 14 of the Customs Code and a calculation for the temporary admission of equipment.
Key concepts of the Customs Code in 8 points: from declarant to customs value
To speak the same language as the broker, an accountant needs the legal meaning of the terms. Eight points, each definition with its article number, a conclusion for accounting and the path of one import from start to finish.
An advance was paid to a foreign supplier in foreign currency and the goods arrived later: at which rate are they recorded?
An import batch paid half in advance and half afterwards is recorded at three rates. Under NAS No. 22 the advance part is not remeasured, while the remaining debt is remeasured every month. Step-by-step journal entries using the example of a textile mill.
How is the cost of imported goods built up: contract, freight, duty and exchange difference
The invoice says 20 000 dollars, but the goods entered the warehouse at more than 303 mln soum. Which costs are added to cost and which are not, and why customs value and accounting cost differ: calculation and journal entries using the example of a household appliance shop.
37 customs payment codes: which go into the cost of goods and which become an expense?
The payments section of the CCD contains codes such as 10, 20, 29 and 72. Duty and fees are added to the cost of the goods, while late payment interest and fines go to other expenses. The full table of Annex 13 with each code's place in the accounts and a calculation for one batch.
What do the procedure, transport and delivery terms codes in a cargo customs declaration tell an accountant?
Figures in the CCD such as "40", "30" and "02 FCA" are not just for customs. They show in advance whether the goods will stay with you, which document to ask for and which expense goes into cost. Full tables of three classifiers and an example of reading one declaration.