trade systems

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Trade Systems

Main Customs ProceduresMain Customs Procedures

1. Transit2. Processing

under customs control

3. Home use4. Customs

Warehousing5. Temporary

Admission

6. Inward Processing

7. Outward Processing

8. Compensating Goods

9. Exports10. Imports11. Re-exports

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Trade Systems

TransitTransit

+TIR

EnteringCustoms

Customs Territory

Customs Border

TRANSIT LeavingCustoms

Customs Border

Foreign Country

TIR: Transport International Routier

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Trade Systems

Home UseHome Use

Foreign Country,Free Zone

National Market

ForeignGoods

Goodsin free circulation

• Tax on sales• Special Taxes{• Imports duties

4

Trade Systems

Temporary AdmissionTemporary Admission

Customs Territory

ForeignGoods

ForeignGoods

Importsduties

otherstaxes

Foreign Country

•Professional equipment•Display goods•Commercial samples...

National Market

Under CustomsControl

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Trade Systems

Procedure for Inward Processing Procedure for Inward Processing

ForeignGoods

ForeignGoods

ValueAdded

Importsduties

Foreign Country orFree Zone

National Market

Customs Territoryotherstaxes

*

* Two options: 1.- duty free in entry

2.- reimbursement in exit

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Trade Systems

Procedure for Outward Processing Procedure for Outward Processing

CustomsTerritory Goods in free

circulation

Goods ValueAdded

Importsduties


otherstaxes

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Trade Systems

Exports Exports

CustomsTerritory Goods in free circulation

or nationalised


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Trade Systems

There are two Trade Systems by which International Merchandise Trade Statistics are compiled;-

(a) The General Trade System, and

(b) The Special Trade System.

Goods leaving or entering a customs territory are declared for different Customs Procedure Codes or Regimes which are crucial in determination of the trade system!

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Trade SystemsMAIN TRADE FLOWS : Overall view of MAIN TRADE FLOWS : Overall view of

movementsmovementsHome Use :(A) on Direct Imports(B) after Warehouse or(Ci) on Temporary Imports for Inward Processing(Cd) after Temporary Admission(Rm) on Re-imports of a Temporary Exports for Outward Processing(Rt) on Re-imports of a Temporary Exports in view to be returned

unchanged

(D) Temporary Admission in view to be returned unchanged (I) Temporary Imports for Inward Processing

(E) Entry in Warehouse

Exports:(J) of national goods (K) of nationalised goods(L) for ship and aircraft supplies(M) Temporary Exports for Outward Processing(T) Temporary Exports in view to be returned unchanged

Re-exports:(P) from Warehouse(Q) for ship and aircraft supplies from Warehouse(Xi) after Temporary Imports for Inward Processing(Xd) after Temporary Admission in view to be returned unchanged

(F) Transit

of foreign goods(N) of national or nationalised goods

Xi

Xd

Free Zone

F

E

A

P

B

D

Ci

Cd

Rt

RmM

LKJ

T

NationalMarket

CustomsWarehouse

I

W

Z

UV

N

Q

Free Zone:(W) entry from National Market(U) entry from Foreign Country exit to Foreign Country

(Z) after Free Zone

(V)

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Trade SystemsOverall view of Special Trade

Overall view ofGeneral Trade

General Trade

Others

Xi

Xd

Free Zone

F

E

A

P

B

D

Ci

Cd

Rt

RmM

LKJ

T

NationalMarket

CustomsWarehouse

IW

Z

UV

N

Q

Xi

Xd

Free Zone

F

E

A

P

B

D

Ci

Cd

Rt

RmM

LKJ

T

NationalMarket

CustomsWarehouse

IW

Z

UV

N

Q

Special Trade

Others

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Trade SystemsGeneral Trade SystemGeneral Trade System

General Imports consists of;-(a)Imports of foreign goods(other than compensating

products after outward processing) into free circulation area, premises for inward processing or industrial free zones, from rest of the World or Custom Transit

(b)Imports of foreign goods (other than compensating products after outward processing) into premises for Customs warehousing or commercial free zones, from rest of the World or Custom Transit.

(c) Imports of foreign goods comprised of compensating products after outward processing into the free circulation area, premises for inward processing or industrial Free zones, from the rest of the world or from customs transit.

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General Imports consists of;- … ctd(d)Imports of foreign goods comprised of

compensating products after outward processing into premises for Customs warehousing or commercial free zones, from the rest of world or customs transit

(e)Re-imports of domestic goods in the same state as exported, into free circulation area, premises for inward processing or industrial free zones, from the rest of world or customs transit.

(f ) Re-imports of domestic goods in the same state as exported, into premises of customs warehousing or commercial free zones, from the rest of world or customs transit.

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General Exports consists of;-(a)Exports of domestic goods originating in the free

circulation area or industrial free zones, directly to the rest of the world.

(b)Exports of domestic goods originating in the free circulation area or industrial free zones but exported from premises for customs warehousing or commercial free zones to the rest of the world.

(c ) Exports of domestic goods comprised of compensating products after inward processing, directly to the rest of the world..

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General Exports consists of;- … ctd(d)Exports of domestic goods comprised of

compensating products after inward processing but exported from premises for customs warehousing or commercial free zones to the rest of the world.

(e)Re-exports of foreign goods, in the same state as previously imported, from free circulation area, premises for inward processing or industrial free zones, directly to the rest of the world.

(f ) Re-exports of foreign goods, in the same state as previously imported, from premises for customs warehousing or commercial free zones, to the rest of the world.

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Trade Systems Special Trade SystemSpecial Trade System

The Special Trade System is used when the statistical territory comprises only the Free Circulation Area.

(a) Imports include all goods entering the free

circulation area of a compiling country-cleared

through Customs for home use.

(b) Exports include all goods leaving the free

circulation area of a compiling country

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Trade SystemsSpecial Trade SystemSpecial Trade System

Special Imports consists of;-(a)Imports of foreign goods (other than

compensating products after outward processing) into free circulation area, premises for inward processing or industrial free zones, from rest of the World or Custom Transit

(b)Imports of foreign goods (other than compensating products after outward processing) into free circulation area, premises for inward processing or industrial free zones, from premises for Customs warehousing or commercial free zones.

(c ) Imports of foreign goods comprised of compensating products after outward processing into the free circulation area, premises for inward processing or industrial free zones, from the rest of the world or from commercial free zones.

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Special Imports consists of;- … ctd(d)Imports of foreign goods comprised of

compensating products after outward processing into the free circulation area, premises for inward processing or industrial free zones, from premises for customs warehousing or commercial free zones.

(e)Re-imports of domestic goods, in the same state as previously exported, into free circulation area, premises for inward processing or industrial free zones, from the rest of world or customs transit.

(f ) Re-imports of domestic goods, in the same state as previously exported, into free circulation area, premises for inward processing or industrial free zones, from premises for customs warehousing or commercial free zones.

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Special Exports consists of;-

(a)Exports of domestic goods originating in the free circulation area or industrial free zones, directly to the rest of the world.

(b)Exports of domestic goods originating in the free circulation area or industrial free zones into premises for Customs warehousing or commercial free zones.

(c ) Exports of domestic goods comprised of compensating products after inward processing, directly to the rest of the world

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Special Exports consists of;- … ctd(d)Exports of domestic goods comprised of

compensating products after inward processing, into premises for customs warehousing or commercial free zones

(e)Re-exports of foreign goods, in the same state as previously imported, from free circulation area, premises for inward processing or industrial free zones, directly to the rest of the world..

(f ) Re-exports of foreign goods, in the same state as previously imported, from free circulation area, into premises for customs warehousing or commercial free zones.

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Trade SystemsUN RecommendationUN Recommendation

It is recommended that the General Trade System be

Used for compilation of international merchandise trade

statistics and international reporting:-

It provides a comprehensive recording of external trade

It provides a better approximation of the change of ownership criterion used into Systems of National Accounts(SNA) and Balance of Payment (BP).

trade systems

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