1 Trade Systems Main Customs Procedures 1. Transit 2. Processing under customs control 3. Home use 4. Customs Warehousing 5. Temporary Admission 6. Inward Processing 7. Outward Processing 8. Compensating Goods 9. Exports 10. Imports 11. Re-exports

2 Trade Systems Transit + TIR Entering Customs Customs Territory Customs Border TRANSIT Leaving Customs Customs Border Foreign Country TIR: Transport International Routier

3 Trade Systems Home Use Foreign Country, Free Zone National Market Foreign Goods in free circulation Tax on sales Special Taxes { Imports duties

4 Trade Systems Temporary Admission Customs Territory Foreign Goods Foreign Goods Imports duties others taxes Foreign Country Professional equipment Display goods Commercial samples... National Market Under Customs Control

5 Trade Systems Procedure for Inward Processing Foreign Goods Foreign Goods Value Added Imports duties Foreign Country or Free Zone National Market Customs Territory others taxes * * Two options:1.- duty free in entry 2.- reimbursement in exit

6 Trade Systems Procedure for Outward Processing Customs Territory Goods in free circulation Goods Value Added Imports duties Foreign Country or Free Zone others taxes

7 Trade Systems Exports Customs Territory Goods in free circulation or nationalised Foreign Country or Free Zone

8 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!

9 Trade Systems MAIN TRADE FLOWS : Overall view of movements Home 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 Rm M L K J T National Market Customs Warehouse I W Z U V N Q Free Zone: (W) entry from National Market (U) entry from Foreign Country exit to Foreign Country (Z) after Free Zone (V)

10 Trade Systems Overall view of Special Trade Overall view of General Trade

11 Trade Systems General 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.

12 Trade Systems General Trade System 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.

13 Trade Systems General Trade System 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..

14 Trade Systems General Trade System 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.

15 Trade Systems Special 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

16 Trade Systems Special 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.

17 Trade Systems Special Trade System 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.

18 Trade Systems Special Trade System 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

19 Trade Systems Special Trade System 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.

20 Trade Systems UN 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).