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ИД «Финансы и кредит»






Finance and Credit

The customs procedure of duty-free trade: Methodological problems of indirect taxation and solutions

Vol. 27, Iss. 6, JUNE 2021

Received: 18 January 2021

Received in revised form: 22 March 2021

Accepted: 5 April 2021

Available online: 29 June 2021

Subject Heading: FISCAL SYSTEM

JEL Classification: H2, H25, M31

Pages: 1270–1291


Elena Yu. SIDOROVA Financial University under Government of Russian Federation, Moscow, Russian Federation


Aleksei A. ARTEM'EV Financial University under Government of Russian Federation, Moscow, Russian Federation


Subject. The article discusses customs payments made as part of sale and purchase deals for imported goods passing the duty-free trade customs clearance procedure.
Objectives. We study methodological aspects of indirect taxation in the sale of goods passing the duty-free trade customs clearance procedure, and determine economically reasonable consequences in common situations.
Methods. We use the graphic method, methods of comparison and observation to prove the reasonableness, reliability of methodological provisions and provide our reasoning on economically correct tax implications of indirect taxes as part of sale of imported goods subject to the duty-free trade customs clearance procedure.
Results. Setting forth effective rules for duty-free shops and the use of the duty-free customs clearance procedure, the government expected that goods be sold to outbound passengers. However, as the real situation shows, inbound passengers can also go for duty-free shopping. Some methodological issues and contradictions arose after the scope of the duty-free procedure changed. There are two types of deals in selling goods to a duty-free shop (the seller is a Russian resident in the first case, but not in the other). Furthermore, currently, duty-free shops may sell goods to each other, being in the Russian Federation, which also engenders complicated contractual schemes.
Conclusions. The paper outlines scenarios of selling goods to duty-free shops, and respective tax implications. We also consider the mechanism for charging taxes on deals involving goods subject to the duty-free trade procedure. In this study, we determine the taxation of other transactions that duty-free shops can make, out of the scope of the duty-free trade customs clearance procedure.

Keywords: customs procedure, customs payment, value added tax, excise tax, duty-free trade


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