Outward processing means that the domestic goods may be temporary exported from the customs territory in order to undergo processing operations. The processed products resulting from these goods can be released for free circulation with total or partial relief from import duty based on an application submitted by the holder of the authorization or by any other person established in the customs territory provided that the person concerned has obtained the consent of the holder of the authorization and that all the conditions of the authorization are met.
The following domestic goods shall not be eligible for outward processing:
- goods the export of which gives rise to reimbursement or remission of import or export duties
- goods which, prior to export, were released for free circulation under exemption of import duties or at reduced rate of import duty by virtue of their end use, for as long as the purposes of such end use have not been fulfilled, unless those goods have to undergo repair operations.
The outward processing procedure may be used for the following operations:
- processing operation concerning mounting, assembling, or fixing of goods to other goods
- transformation of goods
- repair of goods, including restoration thereof, removal of defects, adjustments
- the use of certain goods defined in accordance with customs regulations, which are not found in the compensating products, but which allow or facilitate the manufacture of those products, even if they are entirely or partially used in the refining process.
Conditions for entry of goods to the procedure
To use the procedure, the applicant shall submit an application (.doc.) for the authorization, based on the form template provided for in Annex 27 of the Regulation on the application of the Customs Code, in line with the completion rules established by the Customs Service.
The outward processing procedure shall be granted subject to the following conditions:
- the customs authority is able to determine that the compensating products were obtained out of the goods exported to be processed
- the outward processing of goods is not detrimental to the national economy.
The following shall not be placed under the outward processing procedure:
- goods which, by removal from the customs territory, gives rise to exemption of import duties or to refund of collected import duties
- goods which, prior to removal from the customs territory, were imported with total exemption of import duties – until the expiry of the exemption terms.
The quantity of the compensating products to be reentered into the territory of the Republic of Moldova shall be established upon the issuance of the authorization. Concurrently, the customs authority shall specify in the agreement the deadline set for the reentry of finished products, taking into account the timeframe required for the processing operations. This period can be extended upon a duly reasoned request of the applicant.
The movement of goods placed under outward processing can take place within the customs territory from the customs post of placement to the customs post of discharge.
If circulating under outward processing from the customs post of placement to the customs post of discharge, the goods shall be subject to the provisions applicable for export regime.
Equivalent goods refer to the domestic goods that are stored, used, or processed instead of the goods placed under a special regime. Under the outward processing regime, equivalent goods shall refer to the foreign goods that are processed in place of domestic goods placed under outward processing.
Terms
The customs office shall establish the deadline by which the temporarily exported goods shall be re-imported, in the form of processed products, and released into free circulation so that the total or partial relief of import duties can be applied. The timing within which the processed products must be re-imported shall be determined depending on the period required for the conduct of processing operations, and the transportation of the temporary exported goods and processed products. The customs office may grant an extension of the time-limit, for a reasonable duration, provided that the holder of the authorization submits a duly justified request.
Under IM/EX outward processing, the authorization shall specify the period during which the domestic goods replaced by equivalent goods shall be placed under outward processing. This period shall not exceed 6 months. At the request of the authorization holder, the period can be extended provided that the total time-limit does not exceed 1 year. (p. 553 of Government Decision no. 92/2023).
The temporary export of goods for outward processing shall be subject to the trade policy measures applicable to the outright exportation of goods. Outward processing operations complementary to inward processing shall be subject to the trade policy measures applicable to the re-export of goods.
In the case of an export or outward processing declaration, where the situation so permits, the declarant shall have the right to replace the quantities of goods taken as samples with identical goods, in order to complete the consignment.
Guarantees
In the case of anticipated import of processed products, a guarantee shall be established to cover the amount of import duties to be paid if the replaced domestic goods were not placed under outward processing in accordance with p. 553 of Government Decision no. 92/2023.
Termination of regime
Outward processing shall be deemed concluded upon re-entry of the compensating products.
Legislation:
Customs Code of the Republic of Moldova no. 95/2021, Codul Vamal al Republicii Moldova nr. 95/2021
Government Decision no. 92/2023 regarding the implementation of Customs Code no. 95/2021, Hotărârea Guvernului nr. 92/2023 cu privire la punerea în aplicare a Codului Vamal nr. 95/2021
Order of the Customs Service no. 550-O/2023 regarding the approval of the Technical Norms for the application of guarantees, Ordinul Serviciului Vamal nr. 550-O/2023 cu privire la aprobarea Normelor tehnice de aplicare a garanțiilor
