Customs duties. Customs tariff

• Author: Octavian Pasat
• Position: U.S.M. Chisinau, Republic of Moldova
• Pages: 165-174

CUSTOMS DUTIES. CUSTOMS TARIFF

PhD. student Octavian PASAT

1

Abstract

Romania Import Tar iff is from 1 J anuary 2007, the Common Customs Tar iff of the Europea n Union.

Applicable in a ll EU Member States, it ensur es the smtooh functioning of the European interna l mar ket. From 1

Janu ary 2007, as a member state of the E uropean Union, Romania applies the E U Common Customs Tariff. Common

Customs Tariff duties lists applied to each ta riff line imports from third countries, by all EU Member States, the r egime

most favored na tion clause. Customs duties included in the Common Customs Tariff commitments made by the EU in

the WTO for the ta riff, on behalf of a ll Member States. The vast major ity of the Common Customs Tar iff duties are

consolidated in the WTO 1.5.1. The lega l basis of the common customs tar iff is the Council Regula tion no. 2658/87/23

July 1987 on the tar iff and sta tistical nomenclature and on th e Common Customs Tariff. Like other financia l

instruments is one of the duties that a ny investor – Romania n or foreign – must know the long term. Stability and

predictability constitutes an element that directly or indirectly affect what is called country risk country’s attractiveness

for investors and investment process.

Keywords: customs duties, common customs tariff, European Union, financia l instruments.

JEL Classification: K34

I. Overview. Concepts

The customs policy is based on the regulations adopted by the state regarding the goods

entering and leaving the country which involves the check in when crossing the state frontier by

goods and means of transportation fulfilling the customs formalities and paying the customs duties

(customs tax). The principal means to achieve this is the customs tariff (it includes customs laws,

customs rules, etc), which includes the customs duties (imposed on imported and exported goods).

The customs taxation has three major functions:

- of fiscal nature (the customs duties being a source of income to the state budget);

- of protectionist nature ( they protect the national economy against foreign competition);

- of negotiation (the countries can negotiate some customs facilities either bi-or

multilaterally).

The customs territory represents that geographic area within which a certain customs regime is

applied. As a rule, the customs area coincides with the area of the independent countries. The

exceptions (even more frequent in the last decades) show that the customs area can be bigger than

the national area by setting up some customs unions or areas of free exchange. The customs area

can be smaller than the area of a country if a free area is set up. They represent well delineated areas

(zones) as a rule enclosed and guarded, where loading-unloading operations, storing,

manufacturing, and sending goods can take place, without imposing any customs duties on that

country. The free areas are established in order to contribute to the economic development of a

region or locality, to encourage the traffic of goods on certain routes (especially their transit). They

are located in special places on the border (important harbors, railway stations, road junction) or

which will become important, within that country or not far from some important airports.

The customs union appears when two or more countries decide by a special agreement, to give

up commercial barriers (firstly the customs ones) from their mutual relations and introduce a mutual

customs regime (unique) with the third parties. The customs unions determine the so called customs

annexation (extension or inclusion), the new customs area comprising the respective national

countries.

The customs unions fall into two categories:

a) perfect (complete)-when the agreement refers to the whole range of goods both from

mutual relations and the commercial relations with the third parties;

1 Pasat Octavian - U.S.M. Chişinu, Republic of Moldova, octavian.pasat@yahoo.com