SOME ASPECTS ON THE CUSTOMS DUTY IN TURKMENISTAN
According to Section XV of the Customs Code of Turkmenistan customs privileges are granted to foreign countries’ diplomatic and consular representatives, members of diplomatic personnel, administrative, technical and support staff of a foreign representative office and all the aspects of diplomatic activity of a foreign state in the territory of Turkmenistan.
Customs privileges for other enterprises, companies and organizations.
1. Joint-ventures with participation of legal entities and individuals of Turkmenistan, foreign companies, and organizations and their agencies as well as foreign staff (including family members) of these companies, organizations and agencies are granted with customs privileges according to the related international agreements of Turkmenistan.
2. If a company is established under Article 4 of the law of Turkmenistan “On Free economic zone” the customs regime in the territory of free economic zone, according to Article 8 of the same law, has the following peculiarities:
· Goods and other property being imported in the free economic zone are exempted from customs duty;
· Goods and other property exported from free economic zone to other countries are exempted from customs duty, excluding goods and property of foreign origin;
· Goods and other property being imported in and exported from the free economic zone are to be declared.
· Transit or resale of goods without being processed in the free economic zone, via the territory of free economic zone to other regions of Turkmenistan; export of goods from other regions of Turkmenistan via the territory of free economic zone is executed without granting any tariff-customs or tax exemptions.
The State Tax Inspection of Turkmenistan controls export of goods and property of foreign origin from free economic zone if they were imported without paying customs duty, by checking related documents.
3. Apart from the Customs Code of Turkmenistan and the law of Turkmenistan “On free economic zone”, the decree of the President of Turkmenistan № 5121 dated 26 February 2001 “On customs duties on goods imported in and exported from Turkmenistan” and approved by the same Decree Regulation “On procedure to calculate and pay customs duties on goods imported in and exported from Turkmenistan” stipulate exemptions for foreign investors.
This Regulation describes the procedure of calculations and payments of tax duties on goods imported in and exported from Turkmenistan.
According to the Decree the customs cost of goods is taxable. Customs duty payers are legal and physical entities, both residents and non-residents of Turkmenistan.
Customs duty is not charged from the goods transferred through the customs border of Turkmenistan:
Previously exported (imported) goods declared to the customs body;
From individuals for their hand luggage or isolated heavy luggage the total value of which does not exceed 10-fold size of the base for taxes, duties and other payments calculation set by the legislation of Turkmenistan (Manat 2.500.000), excluding provisions indicated in Annex 1 and Annex 3 to the above Decree;
In accordance with the projects and programs of international financial assistance, technical and humanitarian aid;
For the implementation of projects and contracts with participation of foreign investments for the objects of business and other activity in the territory of Turkmenistan if the share of investor is not less than USD 100thousand, excluding provisions;
For the official utilization by the diplomatic representative offices (similar to the related item in the Customs Code);
In accordance with the international agreements, decisions by the governments (Regulations and Decrees of the President of Turkmenistan) and legal acts of Turkmenistan that stipulate exemption from customs duties (one-time charge or under a specific project);
Delivered under the clearing for gas exports and power exports (currently there is no clearing deals performing);
Indicated in Annex 3 to the above Decree during their registration at the State Commodity Exchange.
For the correct understanding of the phrases “projects and contracts with participation of the foreign investments” it is necessary to mention that according to the law of Turkmenistan “On foreign investments” all types of property and intellectual valuables invested in the objects of business and other types of activity that gain profit (income) or have social effects are recognized as Investments in Turkmenistan. These valuables can include monetary funds, purpose bank deposits, shares and other securities; movable and immovable property (buildings, constructions, equipment and other material valuables); property rights, copyright, “know-how”, experience and other intellectual valuables; rights for the use of land, and other natural resources and other property rights; other valuables.
Investments to the reproduction of fixed assets can be made in the form of capital investments.