Law for the Customs

Note: Present Act is shown here just for your general information and does not pretend for any accuracy, exactness or completeness. Printing mistakes are possible.

Part one.

GENERAL PROVISIONS

Chapter one.

GENERAL PROVISIONS

Art. 1. This law settles the structure and organisation of the customs administration and the activity carried out by it.

Art. 2. (1) The activity of the customs authorities includes the customs supervision and control, on the territory of the country, over the import, export and transit of commodities to, from and through the Republic of Bulgaria, the collection of customs takings, the implementation of the administrative and punitive provisions and investigation of crimes in the cases, under the conditions and by the order stipulated by the Penal Procedure Code.

(2) The customs supervision is a combination of the activities of the customs bodies undertaken for the purpose of providing the observance of the customs legislation and other provisions applicable to the commodities under customs supervision.

(3) The customs control is the carrying out by the customs bodies of specific activities such as inspection of commodities, transport, commercial, accountancy and other documents of physical persons and corporate bodies, of vehicles, luggage and other commodities carried through the state border and other similar activities for providing the observance of other provisions, applicable for the commodities under customs supervision, as well as the collection of customs takings.

Art. 3. The persons and vehicles, as well as the commodities, carried or transported by them, shall cross the state border through the border control checkpoints and shall be subject to customs supervision and control, which shall be carried out at places determined for the purpose. The order by which the customs supervision and control shall be carried out shall be determined by the regulations for implementation of this law, called hereinafter the regulations.

Art. 4. (1) All persons shall be obliged to inform immediately the customs authority about the left, found or detained by them commodities, including vehicles, for which it is known or supposed that they have been imported without carrying out the respective customs formalities. These commodities shall be presented to the customs bodies.

(2) If the owner of the left, found or detained commodities, including vehicles, is a foreigner or a local person with unknown address and he claims them within six months from the day of their presentation to the customs bodies, the person shall carry out the respective formalities for obtaining customs direction for the commodities upon payment of all expenses made by the customs institution for them.

(3) The left, found or detained commodities, including the vehicles, shall be considered left in favour of the state when:

1. their owner is a foreigner or a local person with unknown address and from the day of their presentation to the customs bodies six months have elapsed;

2. their owner is a local person with a known address in the country and from the day of presentation of the invitation for collecting the commodities, sent by the customs institution, three months have elapsed. The invitation shall be sent within one week from the day of the presentation of the commodities to the customs bodies.

Art. 5. (1) All persons, including the state bodies, within the frames of their competence, shall render assistance to the customs authority in carrying out their activity. They shall be obliged in 14 days term after receiving the request by the customs bodies to concede information about the facts and the circumstances pointed out in it.

(2) Nobody shall have the right to dispose with commodities under customs supervision without the knowledge and the permit of the customs authority.

(3) The activities carried out in violation of para 2 shall be invalid regarding the customs bodies.

Art. 6. All persons related to the operations regarding the import, export and transit of commodities, shall be obliged, for the purposes of the customs control and supervision, to submit to the customs authority, at their request and within a term determined by it, the entire information and documentation for the concrete operations regardless of the used carrier.

Chapter two.

CUSTOMS ADMINISTRATION

Section I.

Structure and organisation

Art. 7. (1) The customs administration is a centralised administrative structure organised in Agency Customs at the Minister of Finance, which is a corporate body at budget support with headquarters in Sofia.

(2) Agency Customs is structured in Central Customs Department and regional customs directorates. The general and the specialised administration in the Central Customs Department are organised in directorates.

(3) The regional customs directorate is structured in regional customs department and customs. The general and the specialised administration of the regional customs department are organised in departments.

(4) The customs is structured in territorial customs department and customs bureaux and/or customs stations. The general and the specialised administration of the customs are organised in departments.

(5) The Central Customs Department shall organise, manage, control and report on the activity of the customs administration and shall carry out the customs activity.

(6) The regional customs department shall organise, manage, control and report on the activity of the customs included in the structure of the regional customs directorate, shall carry out customs activity and provide informational services to the customs and to the Central Customs Department.

(7) The territorial customs Department shall organise, manage, control and report on the activity of the customs bureaux and/or customs stations included in the structure of the customs and, together with them, shall be basic executive of the customs supervision and control.

(8) The general management and control of the activity of the customs administration shall be carried out by the Minister of Finance or by a deputy minister appointed by him. The officials from the inspectorate at the Minister of Finance shall have right to access to all data and documents in the customs administration in connection with the checks implemented by them.

(9) Agency Customs can issue specialised publications.

Art. 8. Regional customs directorates, customs, customs bureaux and customs stations shall be established, transformed and closed down by the Minister of Finance upon proposal of the director of Agency Customs. The director of Agency Customs shall determine the structure and the number of their personnel within the frames of the total number of personnel of the agency.

Art. 9. (1) Agency Customs shall be managed and represented by a director who shall be appointed and released by the Minister of Finance in coordination with the Prime Minister.

(2) In carrying out his functions the director of Agency Customs shall be assisted by deputy directors. The number of the deputy directors shall be determined by the structural regulations of the agency.

(3) The deputy directors of Agency Customs shall be appointed and released by the Minister of Finance upon proposal of the director of the agency.

(4) The structure of Agency Customs shall include at direct subordination of the director of the agency inspectorate which shall exercise control over the activity of the customs administration.

Art. 10. (1) Customs official can be an able Bulgarian citizen who has not been convicted for premeditated crime of general nature, who has not been deprived by a court order of the right to occupy the respective position and who meets the requirements for work in the customs administration.

(2) The customs officials cannot:

1. be sole entrepreneurs, unlimited liability partners or participate personally or through a dummy in the bodies of management of trade companies, co-operations and other organisations practising economic activity;

2. conclude additional employment contracts except as assistants in scientific institutes and lecturers in educational institutions.

3. have hierarchic relation of management and control with a spouse, relative on the direct line without limitations, by the collateral line up to fourth degree including, or by marriage up to fourth degree including.

(3) The customs employees who occupy positions according to official terms of employment must meet the requirements under art. 7 of the Law for the civil servant.

(4) On taking office the customs employees shall sign a declaration for the circumstances under para 1 and 2.

(5) On taking office and release, and every year, not later than 31 May, the customs employees shall be obliged to declare before the director of Agency Customs their proprietary status, as well as the proprietary status of their spouses and of underage children in a form approved by the Minister of Finance.

(6) Upon written request of the director of Agency Customs the bodies of the National Revenue Agency shall submit data for the income and the property of the customs employees.

(7) Regarding the protection and the access to the data under para 5 and 6, processed by Agency Customs, shall apply the provisions of the Law for protection of the personal data.

(8) The incompatibility under para 1 and 2, as well as not filing in time the declaration under para 5, shall be considered grounds for unilateral termination of the legal terms of employment with the customs employee without advance notice.

Art. 11. (1) The Council of Ministers, upon proposal of the Minister of Finance, shall adopt structural regulations of Agency Customs and shall determine the number of personnel of the agency and of the Central Customs Department.

(2) The structural regulations of Agency Customs can determine additional requirements for occupying positions in the customs administration.

(3) The Minister of Finance, upon proposal of the director of Agency Customs shall adopt regulations for the organisation and activity of the regional customs directorates.

Art. 12. The customs bodies shall collect taxes for the extra services and in cases determined by the regulations. These taxes are not customs takings. Their amount shall be determined by the Council of Ministers.

Art. 13. The Agency Customs shall collect revenue from contracts concluded with corporate bodies and physical persons for activities permitted by the Minister of Finance in the zones of the border control checkpoints and in other places, whose fulfilment requires additional customs control.

Art. 14. (1) The Chief department of customs shall be administrator of:

1. the incomes of art. 12;

2. the incomes of art. 13

3. ninety percent of the incomes of art. 240, para 2;

4. the incomes from the exploitation of immovable property - state ownership and from conceding data;

5. twenty percent of the collected fines and proprietary sanctions for customs and currency breaches;

6. the incomes from the printed publications of art. 7, para 9;

7. the incomes from the use of the r4ecreation base;

8. the revenue under art. 17, item 3 of the Currency Law and under art. 251, para 2 of the Penal Code;

9. the revenue under art. 64, para 5 of the Civil Procedure Code.

(2) The Minister of Finance, upon proposal of the director of Agency Customs shall determine the employees for additional remuneration for participation in the fight against the customs and currency offences and crimes and for material stimulation.

(3) The resources under para 2 shall be determined in extent of twenty five percent of the salary of the budget of Agency Customs for the respective year and shall be included in the Law for the state budget for the same year.

(4) The order of determining the individual size of the additional remuneration under para 2 shall be determined by an ordinance issued by the Minister of Finance.

Section II.

Functions and tasks

Art. 15. (1) The customs administration shall:

1. participate in the working out and realisation of the customs policy of the state;

2. participate in working out and development of the international agreements regarding the customs activity;

3. carry out international customs relations;

4. collect, process, analyse, store and submit information regarding the customs activity and work out customs statistics. The conditions and the order for this activity shall be determined by an ordinance issued by the Minister of Finance;

5. carry out the qualification and re-qualification of the customs employees.

6. insure the customs employees against accident and Life insurance for the account of its budget.

(2) The customs bodies shall:

1. carry out customs supervision and control over the commodities, vehicles and persons in the zones of the border control checkpoints and on the whole customs territory of the country;

2. calculate, collect or require the security of customs takings determined for import, export or transit of commodities;

3. apply, within the frame of their competence the tariff measures and the measures of the trade policy of the Republic of Bulgaria;

4. protect the economic interests of the country within the frame of their competence;

5. carry out customs investigation and intelligence work for counter-acting the customs and foreign currency offences;

6. organise and carry out the activity for prevention and discovering illegal traffic of narcotic substances and precursors;

7. carry out foreign currency control within the frames of the competence prescribed to them by law;

8. issue permits for the implementation of the customs provisions.

9. (rep.)

10. carry out activity on establishing administrative offences and imposing administrative penalties;

11. participate in carrying out operative investigating activity jointly with the bodies of the Ministry of Interior, under the conditions and by the order of the Law for the Ministry of Interior.

12. apply measures for border control for protection of rights on the intellectual property.

(3) The conditions and the order of interaction between the customs bodies and the bodies of the Ministry of Interior for prevention and discovery of customs and currency offences shall be settled by a joint instruction of the Minister of Finance and the Minister of Interior.

(4) The customs administration shall carry out other functions assigned by law.

Section III.

Legal capacities of the customs bodies

Art. 16. (1) In fulfilment of their official duties the customs authorities shall have the right:

1. to carry out inspections related to the customs supervision and control over commodities, vehicles and persons in the border control checkpoints and on the whole customs territory of the country;

2. to undertake the necessary measures allowed by the law for carrying out the customs control;

3. to require the presentation or submission of commodities, documents, information and other carriers of information related to the customs supervision and control;

4. to require the presentation of personal identification documents;

5. to require written or verbal explanations;

6. to carry out subsequent customs control of commodities and documents related to the import, export and transit;

7. to collect sums: for customs takings for imported and exported commodities; for due liabilities and guarantees; for payment of the equivalent of commodities confiscated in favour of the state, when they are missing or expropriated and for any other customs liabilities and other state takings collected by the customs bodies;

8. to impose, by the order established by the law, distraints and interdictions for securing due customs takings and other state takings collected by them;

9. to carry out personal check up of persons crossing the state border.

10. to carry out searching and confiscation of commodities which have been or should have been subject of customs supervision and control and the documentation related to them in offices, official and other premises, as well as personal search of the persons found there, in compliance with the provisions of the Criminal procedural code;

11. to carry out controlled deliveries jointly with the competent bodies of the Ministry of Interior and by permit of the respective prosecutor's office.

(2) (rep.)

(3) The customs employees shall have the right to carry weapon and use it in case of unavoidable defence and utter necessity.

(4) In exercising the legal capacities according to para 1, item 1 the specialised control bodies of Agency Customs shall have the right to stop the vehicles inside the country under conditions and by an order according to art. 15, para 3.

(5) Upon a written request of the director of Agency Customs, of the directors of regional customs directorates and of the chiefs of customs the bodies of the National Revenue Agency shall submit data for subsequent transactions regarding the quantity, the kind, the value and the origin of commodities subject to import-export operations, for sums subject to payment or reimbursement according to the Law for the value added tax and the Excise Law, as well as for offences established by the bodies of the National Revenue Agency, committed by persons carrying out import and export activities.

(6) The order and the way of electronic exchange of information between the customs administration and the National Revenue Agency shall be determined by a joint instruction of the director of Agency Customs and the Executive Director of the National Revenue Agency.

(7) At implementing checks within the framework of the follow up control or in the progress of the customs investigation for establishing customs liabilities or breaches, when there are data about concealing of facts and circumstances which are of importance for the check or for the investigation as well as at impairing their conducting the customs bodies can implement search and seizure by the order of the Penal-Procedure Code. In these cases the customs bodies implementing the check or the investigation shall have the authority of bodies of the pre-trial procedure.

(8) The provisions of the Penal-Procedure Code shall also be applied for the authorities and the procedure activities of the customs bodies of para 1, item 10 at implementing the checks of art. 7 as well as for the rights and the obligations of the checked persons about the ground and the purposes of the search and the seizure, the bodies implementing it and the persons who attend as well as for the right to defence of the checked persons.

Art. 17. (1) In fulfilment of their official duties the customs employees shall be obliged:

1. to observe the organisation of the work in the customs office;

2. to protect the property, the rights and the freedoms of the persons;

3. to show the customs sign and official card;

4. to wear uniform clothes, when this is stipulated for the respective occupations by the Structural Regulations of Agency Customs;

5. to observe the ethical norms of conduct of the customs employee approved by an order of the Minister of Finance;

6. not to disseminate circumstances and facts having become known to them during or on occasion of the fulfilment of their official duties, determined by this law as official secret, except for a written request of a state body, when this is stipulated by a law on request of the officials from the inspectorate at the Minister of Finance, or to another customs body in connection with the fulfilment of its legal capacities according to this law. The conditions and the order of submitting information for circumstances and facts representing official secret to another customs body shall be determined by the director of Agency Customs.

(2) For failure to fulfil the obligations under para 1 the customs employees shall bear disciplinary responsibility.

Art. 17a. (1) The customs bodies shall collect and process personal data for the objectives of the customs supervision and control.

(2) Administrator of personal data shall be the director of Agency Customs who shall assign the processing of personal data to officials authorized by him under the conditions and by the order of the Law of protection of the personal data.

(3) The collected and processed personal data by the customs bodies may be conceded to bodies of foreign countries and to international organizations in fulfilment of international agreements to which the Republic of Bulgaria is a party, under the conditions and by the order of the Law of protection of the personal data.

Chapter three.

RIGHTS AND OBLIGATIONS OF THE PERSONS

Section I.

Representation

Art. 18. (1) Every person can be represented before the customs bodies for carrying out the activities and the procedures stipulated by this law and by the normative acts for its implementation, including by a customs agent.

(2) The conditions and the order by which the representation shall be carried out by a customs agent shall be determined by the regulations.

(3) The representative must be a local person except in the cases explicitly stipulated by this law.

(4) The customs bodies shall require from every person declaring that he acts as representative to present written proof of that.

Section II.

Decisions of the customs bodies

Art. 19. (1) For issuance of a decision by the customs bodies related to the application of the customs provisions the person who has requested it must present the whole necessary information and documentation.

(2) The decision under para 1 must be taken and announced to the applicant within a period determined by the regulations. When the request for a decision is extended in writing the decision must be taken within the period determined by the regulations, considering from the date on which the request was received by the customs bodies. The decision shall be announced in writing to the applicant.

(3) If the customs bodies cannot take a decision within the stipulated period due to a necessity of gathering additional information they must inform the applicant before the expiration of the period, stating the reasons and the necessary period for taking the requested decision.

(4) The decisions of the customs bodies, rejecting the requests of the persons or they are unfavourable for them, must be motivated.

Art. 20. (1) If a decision, taken in favour of the respective person, is based on untrue or incomplete information, it shall be considered void when:

1. the applicant has known or must have known that the information is untrue or incomplete; and

2. such decision could not be taken on the basis of true and complete information.

(2) The person must be informed about the annulment of the decision.

(3) The annulment shall be in force on the date on which the decision was taken.

Art. 21. (1) In cases, different from Art. 20, a decision taken in favour of the interested person shall be revoked or amended when one or more of its conditions have not been fulfilled or are not fulfilled anymore.

(2) A decision in favour of the interested person can also be revoked when this person does not fulfil an obligation assigned to him by the decision.

(3) The person whom the decision of the customs body regards must be informed about its revoking or amendment.

(4) The revoking or amendment of the decision shall come into force on the day of the notification under para 3. The Agency Customs can, in exceptional cases, when required by the legal interests of the interested person, postpone the date of enactment of the revoking or amendment of the decision.

Section III.

Information

Art. 22. (1) The customs bodies shall submit to the interested persons information regarding the implementation of the customs legislation. The customs body can refuse to reply when the request is not related to actually forthcoming import or export operations.

(2) The information under para 1 shall be provided free of charge. The expenses thereof shall be paid when they are related to analysis, specialised expertise of the commodities, their return to the applicant and the like.

Art. 23. (1) The customs bodies shall issue, by a decision under Art. 19, a binding tariff information or a binding information about the origin of the commodities upon written request, under conditions and by an order determined by the regulations.

(2) The information under para 1 shall bind the customs bodies and its titular only regarding the tariff classification or determination of the origin of concrete commodities, when the respective customs formalities for the commodity are carried out after the date on which the information was issued.

(3) For the customs processing of the commodities the titular of the received information shall certify before the customs bodies the full conformity:

1. between the declared commodities and the commodities described in the information for the purposes of the tariff determination;

2. between the declared commodity and the circumstances determining the acquisition and the origin of the commodity and the circumstances indicated in the information for the purposes of the origin.

(4) The binding information shall be valid for a period of up to three years considered from the date of its issuance. The binding information shall be considered void when it is based on untrue or incomplete data presented by the applicant, regardless of the conditions under Art. 20, para 1, item 1 and 2.

(5) The tariff information shall cease to be valid:

1. upon adoption of a new normative act when it does not conform with its provisions;

2. when it is incompatible with the interpretation of the nomenclatures indicated in Art. 26. The incompatibility with the interpretation can be:

a) on national level - as a result of amendment of the national explanatory notes to the nomenclatures of the customs tariff or by a court decision;

b) on international level - as a result of issuance of opinion for classification or amendment of the explanatory notes to the nomenclature of the harmonised system of description and coding of the commodities published by the World Customs Organisation; 3. upon its revoking or amendment by the order of Art. 21 and on condition that the titular of the information has been informed about the revoking of its implementation or its amendment.

(6) The information about the origin shall cease to be valid:

1. upon adoption of a new normative act or a conclusion of a respective international agreement by the Republic of Bulgaria when it does not conform with their provisions;

2. when it is incompatible:

a) on national level - with the explanatory notes and opinions adopted for the purposes of interpreting the regulations or by a court decision;

b) on international level - with the Agreement for the rules of origin established by the World Trade Organisation or with the explanatory notes and opinions for the origin, adopted for interpretation of the agreement;

3. upon revoking or amendment by the order of Art. 21 and on condition that the titular has been informed about the revoking of its implementation or about its amendment.

(7) The titular of the binding information, which ceases to be valid according to Art. 5, item 2 or 3 and para 6, item 2 or 3, can continue to apply it within a period not longer than six months from the enactment of the respective acts under conditions and by an order determined by the regulations.

(8) When the normative acts or the agreement under Art. 5, item 1 and para 6, item 1 stipulate a period different from those under para 7, the period stipulated by them shall apply.

(9) The classification or determining the origin of the commodities by the binding information shall only apply:

1. for determining import or export customs takings;

2. for calculation of export subsidies and any other gratuitous financial support for export or import of commodities as a part of the agricultural policy of the Republic of Bulgaria;

3. for using export licences and certificates for import or export required at the time of acceptance of the customs declaration for the commodities, on condition that these certificates have been issued on the grounds of this binding information.

Part two.

ELEMENTS ON WHOSE GROUNDS SHALL APPLY IMPORT OR EXPORT CUSTOMS TAKINGS AND OTHER MEASURES STIPULATED REGARDING THE COMMODITY TRADE

Chapter four.

CUSTOMS TARIFF, TARIFF CLASSIFICATION

Art. 24. (1) The commodities carried through the state border of the Republic of Bulgaria shall be levied with import or export customs duties, inasmuch as this or other law stipulates otherwise, as well as by an international agreement party to which is the Republic of Bulgaria.

(2) The import or export customs duties due on occurrence of a customs liability shall be based on the Customs Tariff of the Republic of Bulgaria.

Art. 25. Other measures regarding specific spheres related to the trade with commodities stipulated by normative acts, and outside those under art. 24, shall be introduced in compliance with the tariff classification of these commodities.

Art. 26. (1) The Customs Tariff includes:

1. the combined nomenclature of the Republic of Bulgaria;

2. any other nomenclature which is entirely or partially based on the combined nomenclature of the Republic of Bulgaria or adds subdivisions to it, and which has been adopted by a normative act stipulating specific spheres regarding the implementation of tariff measures related to the trade with commodities;

3. the rates and other elements of levying, applied for commodities included in the combined nomenclature regarding:

a) the customs duties and

b) the duties for import of commodities in compliance with the agricultural policy or in compliance with specific provisions applicable for commodities obtained by processing of agricultural products;

4. preferential tariff measures included in agreements party to which is the Republic of Bulgaria, and stipulate the provision of preferential tariff treatment;

5. preferential tariff measures adopted unilaterally by the Republic of Bulgaria in favour of countries, group of countries or territories;

6. autonomous measures introduced by the Council of Ministers which temporarily reduce or remove the acting import customs receivables regarding definite commodities (autonomous measures of suspending); the conditions and the order of introduction and application of autonomous measures of suspending shall be determined by an ordinance of the Council of Ministers;

7. other tariff measures stipulated by other normative acts.

(2) In observance of the rules for levying by a single customs rate the measures under para 1, item 4, 5 and 6 shall apply instead of those under item 3, upon request of the declarer, when the commodities meet the requirements established for these measures. The request may also be granted subsequently where the respective requirements are met.

(3) If the application of the measures under para 1, item 4, 5 and 6is restricted for a definite quantity or value of the import their application shall be discontinued:

1. for tariff quotas - immediately when the determined qualitative or value limit of the import is reached;

2. for tariff margins - from the moment determined by a normative act.

Art. 26a. (1) The Council of Ministers, before the end of each calendar year, shall adopt the Combined Nomenclature of the Republic of Bulgaria and shall determine rates of customs duties in compliance with the bound rates of the customs duties of the Republic of Bulgaria according to the List of obligations and relief attached to GATT of 1994 (conventional rates of the customs duties), which shall apply from the first day of the next year.

(2) The Combined Nomenclature, the conventional rates of the customs duties and the autonomous rates of the customs duties shall be promulgated in the State Gazette.

Art. 27. (1) The tariff classification of the commodities is determination according to rules, established by a normative act, regarding:

1. the sub-positions of the nomenclature under art. 26, para 1, item 1 or of any other nomenclature under art. 26, para 1, item 2 or;

2. the sub-positions of any other nomenclature which is entirely or partially based on the Combined Nomenclature of the Republic of Bulgaria or adds sub-divisions to it, and which is adopted by a normative act stipulating specific spheres regarding the application of measures different from the tariff measures related to commodity trade.

(2) An ordinance of the Minister of Finance may determine additional rules for tariff classification of the commodities in compliance with:

1. the explanatory notes to the Approximated System for description and codification of the commodities;

2. the explanatory notes to the Combined Nomenclature applied in the countries - members of the European Union;

3. the opinions for classification of the commodities adopted by the Committee of the approximated system of the World Customs Organisation;

4. the decisions for classification of the commodities applied in the countries - members of the European Union.

Art. 28. (1) The conditions under which definite commodities can, according to the customs tariff, use more favourable treatment due to their nature or specific purpose, shall be determined by the regulations. The provisions of art. 92 and 93 shall apply when a permit is required.

(2) In the context of para 1 under favourable tariff treatment shall be understood every reduction or every temporary reduction or removal (suspending) of import customs takings, even within the frames of a tariff quota.

Chapter five.

ORIGIN OF THE COMMODITIES

Section I.

Non-preferential origin

Art. 29. The non-preferential origin of the commodities determined by Art. 30, 31 and 32 shall serve for the purposes of:

1. the application of the Customs tariff with the exception of the preferential tariff measures stipulated by Art. 26, para 1, item 4 and 5;

2. the implementation of measures, different from the tariff, established by an act of the Council of Ministers;

3. the working out and issuance of certificates of origin.

Art. 30. (1) Commodities with origin from a definite country are the commodities entirely obtained or produced in this country.

(2) Commodities entirely obtained in a definite country are:

1. mineral products obtained in this country;

2. vegetal products raised in the country;

3. live animals, born and bred in the country;

4. products of live animals bred in the country;

5. products of hunting or fishing carried out in the country;

6. products of sea fishing and other products obtained from the sea, outside the inner territorial waters and the territorial sea of the country, by ships registered in the country and navigating under its flag;

7. commodities obtained or produced on board of ship factories from products under item 6, with origin from the country, on condition that these ship factories are registered in this country and float under its flag;

8. products obtained from the sea bottom or its womb, outside the inner sea waters or the territorial sea, on condition that this country has exclusive rights to exploit this sea bottom or its womb;

9. waste and scrap obtained from the production of manufacturing operations carried out in the country and used objects, on condition that they are collected in the country and are only fit for restoration of the raw materials;

10. commodities produced in the country exclusively from the commodities indicated in item 1 - 9, or from their derivatives from every stage of the production.

(3) For the implementation of para 2 on the customs territory of the country its inner sea waters and the territorial sea shall be included.

Art. 31. (1) The commodities whose production includes the participation of more than one country shall be considered that they have an origin from the country in which they have passed through their last, significant, economically substantiated processing or reproduction in the enterprise equipped for the purpose and having led to the production of a new product or which represents an important stage of the production.

(2) Processing or reproduction, for which it is established or there are enough data that the purpose has only been the evasion of provisions applied in the Republic of Bulgaria for commodities from definite countries, shall not be considered enough to attribute to the obtained commodity an origin from the country where this processing or reproduction has taken place.

Art. 32. (1) Document for proving the origin shall be presented when required by a customs or another normative act.

(2) Regardless of the presentation of a document of origin of the commodity the customs bodies shall have the right, in cases of grounded doubt, to require another proof, which must confirm that the declared origin corresponds to the rules of non-preferential origin established in the Republic of Bulgaria.

Section II.

Preferential origin

Art. 33. The conditions of acquiring preferential origin of the commodities with the purpose of applying the measures under Art. 26, para 1, item 4 and 5 shall be settled by:

1. the international agreements of the Republic of Bulgaria for introduction of preferential tariff measures;

2. the normative acts for unilaterally adopted preferential tariff measures by the Republic of Bulgaria.

Chapter six.

CUSTOMS VALUE

Art. 34. The customs value is the value of the commodities in levs determined for the customs purposes. The provisions of this chapter settle the determining of the customs value for the purposes of implementation of the Customs Tariff of the Republic of Bulgaria, as well as for the purposes of applying measures established by a normative act, different from the tariff measures.

Art. 35. (1) The customs value of imported commodities determined by this article is the contractual value, which is the actually paid or subject to payment price of the commodities, sold for export to the Republic of Bulgaria, adjusted according to Art. 38, on condition that:

1. there is no restriction regarding the right of disposal or using the commodities by the buyer, except the restrictions which:

a) are established by normative acts of the Republic of Bulgaria;

b) determine the geographic region where the commodities can be sold, or

c) do not affect substantially the value of the commodities;

2. the sale or the price is not subject to conditions or considerations, whose value regarding the commodities subject to evaluation cannot be determined;

3. whatever part of the revenue from each consecutive sale, ceded right of use or disposal with the commodities by the buyer is not returned directly or indirectly to the seller, except if there is a possible adjustment according to Art. 38; and

4. the buyer and the seller are not related persons and if related - on condition that the contractual value is acceptable for the customs purposes according to para 2.

(2) Circumstances which are accounted for related persons:

1. in determining whether the contractual value is acceptable for the purposes under para 1 the fact that the buyer and the seller are related persons should not be grounds for the contractual value to be considered as unacceptable. If necessary the circumstances of the sale must be considered and, on condition that the relation has no influence on the price, the contractual value should be accepted. If, on the grounds of information, presented by the buyer or another source, the customs bodies have grounds to consider that the relation has influenced the price, they should announce their grounds to the declarer and provide a real possibility for him to reply. At the request of the declarer his grounds shall be announced in writing.

2. for sale between related persons the contractual value should be accepted and the commodities shall be evaluated according to para 1 when the declarer proves that this value is very close to one of the following values determined by the same or approximately the same moment:

a) the contractual price for sale of identical or similar commodities sold for export to the Republic of Bulgaria, between buyers and sellers who are not related persons;

b) the customs value of identical or similar commodities determined according to Art. 36, para 2, item 3;

c) the customs value of identical or similar commodities determined according to Art. 36, para 2, item 4.

(3) In applying para 2, item 2 shall be accounted the differences in the trade level, the quantity, the elements under Art. 38, and in the expenses made by the seller for sales, when he and the buyer are not related persons, and when the expenses are not made by the seller when he and the buyer are related persons. The methods under para 2, item 2 shall apply at the initiative of the declarer and only for the purposes of comparison, and not as a basis of determining the customs value.

(4) The actually paid or subject to payment price is the total sum which the buyer has paid or must pay for the imported commodities to the seller or in favour of the seller and includes all payment by the buyer to the seller or by the buyer to a third party for indemnification of liabilities of the seller, made or due as a condition of the sale. It is not necessary for the payment to be always in the form of cash transaction but it can be carried out by a letter of credit or contractual resources and can be carried out directly or indirectly.

(5) Activities, including marketing, undertaken by the buyer for his account, different from those for which an adjustment is stipulated in Art. 38, shall not be considered indirect payment to the seller even when they can be considered in favour of the seller or have been undertaken as a result of an agreement with him and the expenses for them should not be added to the actually paid or subject to payment price. Marketing activities in the context of this para are all activities related to the advertising and promotion of the sale of the evaluated commodities and all guarantee activities regarding the commodities.

Art. 36. (1) If the customs value cannot be determined according to Art. 35 is shall be determined through a consecutive application of the provisions under para 2, item 1 - 4 until the conditions of the first in order provision allows its application. Exception from the indicated order shall be admitted in applying item 3 and 4 should the declarer wishes to change the order of these two items. Only when such value cannot be determined according to a concrete item in the indicated consequence can apply the provisions of the next item by the order determined according to this para.

(2) Customs value determined by the order of this article is:

1. the contractual value of identical commodities sold for export to the Republic of Bulgaria and exported at approximately the same moment as the commodities subject to evaluation;

2. the contractual value of similar commodities sold for export to the Republic of Bulgaria and exported at approximately the same moment as the commodities subject to evaluation;

3. the value based on the unit price at which the largest sum of quantity of the imported commodities or imported identical or similar commodities is sold to persons who are not related to the persons from whom they buy these commodities;

4. the calculated value consisting of the sum of:

a) the expenses for materials and production or for other operations related to the processing of the imported commodities;

b) the sum of the profit and the overall expenses equal to the one which is usually calculated for the sale of commodities of the same class or kind as the commodities subject to evaluation, which are produced by manufacturers in the exporting country for export to the Republic of Bulgaria;

c) the expenses under Art. 38, para 1, item 5.

(3) the additional conditions and rules of applying para 2 shall be determined by the regulations.

Art. 37. (1) If the customs value of imported commodities cannot be determined according to Art. 35 and 36 is shall be determined through methods corresponding to the principles and the general provisions of the Agreement for application of Art. VII of the General Agreement for the taxes and trade and the provisions of this chapter.

(2) The customs value determined according to para 1 cannot be based on:

1. the sale price inBulgaria of commodities manufactured inBulgaria ;

2. a system providing the adoption, for customs purposes, the higher value of two possible values;

3. the price of commodities on the home market of the exporting country;

4. production expenses different from the calculated values which have been determined for identical and similar commodities in compliance with Art. 36, para 2, item 4;

5. prices of commodities sold for export which has not been designated for the Republic of Bulgaria;

6. minimal customs values;

7. subjectively determined or accommodation values.

Art. 38. (1) In determining the customs value according to Art. 35 to the actually paid or subject to payment price of the imported commodities shall be added:

1. the following expenses, to the amount paid by the buyer, but not included in the actually paid or subject to payment price:

a) commission and remuneration for mediation (broker's remuneration), with the exception of the sale commissions;

b) the expenses for containers which, for the customs purposes, are treated together with the evaluated commodities;

c) the expenses for packing including the labour and the materials;

2. the value, respectively distributed, of the following commodities and services, when they are supplied directly or indirectly by the buyer, free of charge or at reduced prices, for use in connection with the production and the sale for export of imported commodities, inasmuch as this value has not been included in the paid or subject to payment price:

a) materials, components, parts and other similar included in the imported commodities;

b) instruments, cliche, matrix and other similar, included in the imported commodities;

c) used materials in the production of the imported commodities;

d) engineering, developments, artistic design, design, plans and drawings which are not worked out in the Republic of Bulgaria and have been necessary for the production of the imported commodities;

3. royalties and licence taxes regarding the evaluated commodities which the buyer, directly or indirectly, must pay as a condition for the sale of the evaluated commodities, to the amount, in which these royalties and taxes are not included in the paid or subject to payment price;

4. the value of every part of the revenue, of every next sale, ceding the right of possession or use of the imported commodities which is submitted directly or indirectly to the seller;

5. expenses for:

a) transportation of the imported commodities to a border point of the Republic of Bulgaria;

b) loading and unloading and processing operations related to the transportation of the imported commodities to a border point of the Republic of Bulgaria;

c) insurance of the imported commodities.

(2) Additions to the actually paid or subject to payment price under this articles shall only be made on the basis of objective and subject to quantitative evaluation data.

(3) When determining the customs value other additions cannot be made to the actually paid or subject to payment price except the ones stipulated by this article.

(4) In this chapter the term commission for purchase means the consideration paid by an importer to his agent for the service to represent him in the delivery of the evaluated commodities.

(5) Regardless of the provisions of para 1, item 3:

1. the taxes for the right of reproduction of the imported commodities in the Republic of Bulgaria shall not be added to the actually paid or subject to payment price of the imported commodities in determining the customs value;

2. payment made by the buyer for the right of distribution or sale of the imported commodities shall not be added to the actually paid or subject to payment price of the imported commodities if this payment is not a condition for the sale of the commodities for export to the Republic of Bulgaria.

Art. 39. The customs value of imported commodities shall not include the following expenses, on condition that they have been differentiated from the actually paid or subject to payment price:

1. the expenses for transportation of the commodities carried out on the territory of the Republic of Bulgaria upon their import;

2. expenses for construction, instalment, assembly, maintenance or technical assistance carried out for the commodities upon their import;

3. the taxes for the right of reproduction of the commodities imported in the Republic of Bulgaria;

4. sale commissions;

5. customs duties, taxes, excise and taxes due in the Republic of Bulgaria for the import or the sale of the commodities;

6. interest on financial agreements of the buyer in connection with the purchase of the imported commodities regardless of whether the credit is granted by the seller, a bank or a third person, on condition that the interest has been differentiated from the actually paid or subject to payment price, the financial agreement has been made in writing and the buyer can, in case of necessity, prove that:

a) such commodities are sold by the moment of evaluation at the price declared as actually paid or subject to payment, and

b) the declared interest rate does nor exceed the level for the prevailing number of such contracts in the country, where and when the financing has been provided.

Art. 40. The regulations can stipulate specific rules for determining the customs value of imported information carriers designated for use in equipment for electronic data processing, carrying data or instructions.

Art. 41. The order of determining the customs value in specific cases shall be determined by a decree of the Council of Ministers.

Art. 42. (1) The transfer of foreign currency into levs for calculating the customs value shall be carried out at the exchange rate announced by the Bulgarian National Bank of the foreign currencies to the lev.

(2) The period for which the respective exchange rate is applied shall be determined by the regulations.

Art. 43. (1) The provisions of this chapter do not regard the specific provisions for determining the customs value for import of commodities which have been under another customs destination.

(2) Regardless of the provisions of Art. 35 - 37 the customs value of perishable commodities, usually a consignment deliveries, at the request of the declarer, can be determined according to a simplified rules stipulated by the regulations.

Part three.

IMPORT OF COMMODITIES ON THE CUSTOMS TERRITORY OF THE REPUBLIC OF BULGARIA UNTIL OBTAINING CUSTOMS DESTINATION

Chapter seven.

IMPORT OF COMMODITIES ON THE CUSTOMS TERRITORY OF THE REPUBLIC OF BULGARIA

Art. 44. (1) From the moment of import on the customs territory of the country the commodities shall be under customs supervision and can be subject to customs control in compliance with the acting provisions by the date of import.

(2) The commodities shall be under customs supervision until the determination of their customs status. With the exception of the cases under Art. 8, para 1 the foreign commodities shall also remain under customs supervision until the change of their customs status or their entering a free zone or a free warehouse or until their re-export or their destruction according to Art. 180.

Art. 45. (1) The commodities imported on the customs territory of the country must be immediately transported by the person importing them, according to the orders of the customs bodies to the respective customs office or to another place determined by them. If necessary the customs bodies shall determine the route of transportation of the commodities.

(2) The person who undertakes the obligation to transport the commodities upon their import on the customs territory of the Republic of Bulgaria shall be responsible for the fulfilment of the obligations under para 1.

(3) para 1 shall not exclude the application of provisions of other normative acts for:

1. postal consignments;

2. tourist travels;

3. transportation of commodities of insignificant economic importance on condition that they do not create obstructions to the customs supervision and the customs control.

(4) Para 1, 2 and 3, as well as Art. 46 - 60 shall not apply for commodities which temporarily leave the customs territory of the Republic of Bulgaria, transported between two points of this territory on water or by air, on condition that the transportation is carried out on direct line by an aircraft or a ship carrying out regular transportation, without stopping outside the customs territory of the Republic of Bulgaria.

(5) Para 1 shall not apply for commodities which are on board of ships or aircrafts crossing territorial waters or the air space of the Republic of Bulgaria, with no port or airport of call on the customs territory of the Republic of Bulgaria.

Art. 46. (1) In the cases of insurmountable force or other unforeseen circumstances, when the person cannot fulfil the undertaken obligations under Art. 45, para 1 he shall be obliged to inform immediately the closest customs bodies. When the commodities are not completely destroyed the customs bodies must be informed about their exact location.

(2) When the ship or the aircraft is forced, due to insurmountable force or other unforeseeable circumstances, to berth or land temporarily on the customs territory of the Republic of Bulgaria, if unable to fulfil his obligations under Art. 45, para 1, the person, managing the transport vehicle, or any other person acting instead of him, shall inform immediately the customs bodies.

(3) In the cases under para 1 and 2 the customs bodies shall determine the measures to be taken for carrying out the customs supervision and, if necessary, for providing the transportation of the commodities to a customs office or another place determined by them.

Chapter eight.

PRESENTATION OF THE COMMODITIES TO THE CUSTOMS BODIES

Art. 47. The commodities which are transported according to the requirements of Art. 45, para 1 must be presented to the customs bodies by the person who has imported them on the customs territory of the Republic of Bulgaria or by the person who has undertaken the transportation of the commodities upon their import.

Art. 48. For commodities carried by persons or placed under customs regime, without being presented to the customs bodies can apply another order of presentation determined by the regulations.

Art. 49. Upon their presentation the commodities can be subject to analysis or taking samples for specifying their customs destination by a permit of the customs bodies.

Chapter nine.

MANIFESTING AND UNLOADING THE COMMODITIES PRESENTED TO THE CUSTOMS BODIES

Art. 50. (1) Customs manifest shall be presented for the commodities presented to the customs bodies.

(2) The customs manifest must be presented immediately upon presentation of the commodities to the customs bodies. The customs bodies can determine another deadline of presentation of the manifest, but not later than the first work day after the day on which the commodities were presented.

Art. 51. (1) the manifesting of the commodities shall be carried out under conditions and by an order determined by the regulations. The customs bodies can also accept trade or other document instead of customs manifest if it contains the necessary data for identification of the commodities.

(2) The customs manifest shall be presented by:

1. the person importing the commodities on the customs territory of the Republic of Bulgaria or by the person who has undertaken the transportation of the commodities upon their import;

2. the person in whose name have acted the persons under item 1.

Art. 52. In the cases when the customs bodies can present a manifest ex-officio, as well as not require the presentation of a customs manifest shall be determined by the regulations.

Art. 53. (1) The commodities can be unloaded or re-loaded from the vehicles carrying them only by permit of the customs bodies, at places determined by them.

(2) Permit shall not be required in cases of accidents or other circumstances requiring immediate unloading, entirely or partially, of the commodities. In this case the customs bodies must be informed immediately.

(3) For the purposes of the customs control over the commodities, including over the vehicles carrying them, the customs bodies can require, at any time, unloading and unpacking of the commodities.

Art. 54. The commodities can be taken from the place where they have been located initially only by permit of the customs bodies.

Chapter ten.

OBLIGATION FOR CARRYING OUT FORMALITIES FOR OBTAINING CUSTOMS DESTINATION OF THE COMMODITIES PRESENTED TO THE CUSTOMS BODIES

Art. 55. The foreign commodities presented to the customs bodies must be given admissible customs destination.

Art. 56. (1) The following formalities shall be carried out for manifested commodities in order to obtain customs destination within the following periods:

1. forty five days from the date of presentation of the customs manifest for commodities carried by sea transportation;

2. twenty days from the date of presentation of the customs manifest for commodities carried by transport different from the sea transport.

(2) The customs bodies, depending on the concrete circumstances, can determine periods, shorter or longer than those under para 1. The extension cannot be longer than the actually necessary in the case.

Chapter eleven.

TEMPORARY STORING OF COMMODITIES

Art. 57. Until obtaining customs destination the commodities presented to the customs bodies shall have the status of temporary stored commodities.

Art. 58. (1) Temporarily stored commodities can be left only at the places and under the conditions determined by the customs bodies.

(2) The customs bodies shall have the right to require from the person holding the commodities, to secure the payment of every customs liability which can occur on the grounds of Art. 199, para 1, item 5, 6 and 7.

Art. 59. The temporarily stored commodities cannot be subject to processing different from the one designated for their preservation in unchanged condition, without changing their initial kind or technical characteristics. This provision does not restrict the application of Art. 49.

Art. 60. (1) For the commodities, for which, according to the period under Art. 56 the respective formalities for obtaining admissible customs destination have not been completed, the customs bodies shall invite in writing, by registered mail, the recipient of these commodities to fulfil the respective formalities within thirty days from the day of receipt of the invitation.

(2) Upon expiration of the period under para 1 the commodities shall be considered abandoned in favour of the state.

(3) When the recipient of the commodities is a foreign person, unknown person, local person with unknown address or not found at the indicated address, invitation under para 1 shall not be sent and the commodities shall be considered abandoned within three months from their manifestation.

(4) The customs bodies can, for undertaking the responsibility and the expenses by the holder of the commodities, permit their moving to another place under customs supervision until the completion of the respective formalities.

Chapter twelve.

FOREIGN COMMODITIES UNDER TRANSIT REGIME

Art. 61. The provisions of Art. 45, with the exception of para 1, as well as Art. 46 - 60 shall not apply in the import of commodities on the customs territory of the Republic of Bulgaria placed under transit regime.

Art. 62. When, after the movement of foreign commodities under transit regime, reach their destination on the customs territory of the Republic of Bulgaria and, upon presentation to the customs authorities, according to the acting transit provisions, the provisions of Art. 49 - 60 shall apply.

Chapter thirteen.

OTHER PROVISIONS

Art. 63. When the circumstances so require the customs bodies shall have the right to decree the destruction of the commodities presented to them for certification, informing about that the holder of the commodities. The expenses related to the destruction of the commodities shall be for his account.

Art. 64. When the customs bodies establish that on the customs territory of the Republic of Bulgaria illegally have been imported or have evaded from customs supervision commodities they shall undertake the activities provided by the normative acts, including their sale.

Part four.

CUSTOMS DESTINATIONS

Division one.

GENERAL PROVISIONS

Art. 65. (1) If there are no normative restrictions or prohibitions the commodities, under conditions determined by this law, can be given the requested customs destination regardless of their kind, quantity, origin, starting point or place of destination.

(2) Para 1 does not exclude implementation of prohibitions or restrictions in connection with protection of the national security, the public peace and moral, the life and health of the people, of animals and plants, as well as of the national wealth representing artistic, historical and archaeological value and the protection of the industrial and intellectual property.

(3) In exercising customs control under para 2, unless stipulated otherwise, the customs bodies my postpone, by a motivated decision, for a period up to five working days, the permitting of the destination requested for the commodities, immediately informing the bodies competent for the supervision or control related to the respective prohibitions or restrictions.

Division two.

CUSTOMS REGIMES

Chapter fourteen.

PLACING THE COMMODITIES UNDER CUSTOMS REGIME

Art. 66. (1) Every commodity to be placed under customs regime shall be subject to declaring for the respective regime.

(2) The local commodities declared for export, temporary export, passive improvement, transit or customs storing shall be under customs supervision from the moment of their declaring before the customs office until their leaving the customs territory of the Republic of Bulgaria or their destruction or until the annulment of the customs declaration.

Art. 66a. (1) The director of Agency Customs can determine, by an order, individual customs establishments which carry out customs activity regarding definite types of commodities and/or depending on the customs regimes under which they will be placed.

(2) The order under para 1 shall be promulgated in the State Gazette.

Art. 67. (1) The declaring before the customs office shall be carried out:

1. in writing;

2. by electronic means;

3. verbally;

4. through other activity by which the holder of the commodities expresses his wish to place them under customs regime.

(2) The conditions and the order of declaring in the cases under para 1, item 2, 3 and 4 shall be determined by the regulations.

Section I.

Written declaration according to the normal procedure

Art. 68. (1) The written declaring shall be made by a customs declaration in a form and by an order determined by the Minister of Finance.

(2) The customs declaration shall be signed and shall contain all data necessary for the application of the provisions of the customs regime for which the commodities have been declared.

(3) The customs declaration must be accompanied by all documents, determined by normative for permitting the customs regime for which the commodities are declared.

Art. 69. The customs declarations, formed according to Art. 68, shall be accepted immediately by the customs bodies if the declared commodities are presented to them.

Art. 70. (1) The declaring can be carried out by a person, including by his representative, who can present or order to present before the competent customs bodies the commodities and all documents necessary for permitting the customs regime for which the commodities are declared.

(2) When the acceptance of the customs declaration leads to concrete obligations for a definite person the declaring must be carried out by this person or for his account.

(3) The declarer must be a local person. This is not required for persons who:

1. carry out declaring for transit or temporary import; or

2. declare commodities in rare cases and if the customs bodies consider the declaring admissible.

Art. 71. (1) Upon acceptance of the customs declaration at the request of the declarer the customs bodies can permit one or more corrections in the declaration. The correction cannot include commodities different from the initially declared.

(2) Correction shall not be admitted when the request is extended after the customs bodies have:

1. informed the declarer about their intention to inspect the commodities;

2. established incorrect data in the declaration;

3. permitted the lifting of the commodities.

Art. 72. (1) The customs bodies, at the request of the declarer, shall annul the accepted customs declaration when the declarer proves that the commodity has been wrongly declared for the respective customs regime or that due to particular circumstances its remaining under the declared customs regime is ungrounded.

(2) When the customs bodies have informed the declarer about their intention to inspect the commodities the request for annulment of the declaration can be accepted upon this inspection.

(3) The declaration cannot be annulled after the permit for lifting the commodities except in the cases stipulated by the regulations.

(4) The annulment of the declaration shall not be an obstacle for applying the penalty provisions.

Art. 73. As date of applying the provisions of the customs regime under which the commodities were declared shall be considered the date of acceptance of the customs declaration by the customs bodies unless stipulate otherwise by a normative act.

Art. 74. For checking up the accepted declarations the customs authorities shall have the right to carry out:

1. document control of the declaration and the accompanying documents. The customs bodies shall have the right to require from the declarer the presentation of other documents for checking up the reliability of the data in the declaration;

2. inspection of the commodities and taking samples for analysis or control.

Art. 75. (1) The transportation of the commodities to the places for inspection and taking samples, as well as all operations necessary for the inspections and for taking samples shall be carried out by the declarer and with his responsibility. The incurred expenses shall be for the account of the declarer.

(2) The declarer shall have the right to attend the inspection of the commodities and the taking of samples. The customs bodies can require the presence of the declarer or his representative during the inspection of taking samples for facilitation of the inspection.

(3) When the samples are taken according to the acting provisions the customs bodies shall not owe compensations but shall pay the expenses for the analysis or control.

Art. 76. (1) When subject of the inspection is a part of the commodities included in one declaration the results of the inspection shall be valid for the whole quantity of commodities according to this declaration.

(2) The declarer can request additional inspection of the commodities when he considers that the results of the partial inspection are not valid for the remaining part of the declared commodities.

(3) For the application of para 1, when the declaration includes several kinds of commodities, the data about every kind shall be considered individual declaration.

Art. 77. (1) The results of the check up of the declaration shall be grounds for applying the respective customs regime under which the commodities are placed.

(2) When a check up of the declaration is not carried out grounds for applying the respective customs regime shall be the data of the declaration.

Art. 78. (1) The customs bodies shall take the necessary measures for identification of the commodities when it is necessary for providing the compliance with the conditions of the customs regime under which the commodities are declared.

(2) The means of identification placed on the commodities or in the cargo compartments of the vehicles can be taken off or destroyed only by the customs bodies or by their permit. This provision shall not apply in the cases of insurmountable force or in the presence of other unforeseeable circumstances, with the purpose of protection of the commodities and the vehicles.

Art. 78a. (1) The customs bodies shall postpone, by a motivated decision, the giving of permit for lifting commodities declared for import regime and shall immediately inform the competent bodies for market supervision when the inspection establishes that:

1. the commodities show definite characteristics which give rise to grounded doubts about the presence of a serious and immediate risk for the health and safety if they would be used in normal and predictable conditions, or

2. the commodities are not accompanied by the documents required according to the rules for safety or if they are not marked in compliance with these rules.

(2) When, in the cases of para 1, the competent bodies for market supervision consider that the commodities do not pose a serious and immediate risk for the health and safety the customs bodies shall permit the lifting of the commodities on condition that all other requirements and formalities for placing under import regime have been met.

(3) If, within three working days considered from the day following the actions under para 1, the customs bodies are not informed by the competent bodies for market supervision about the measures taken by them, the lifting of the commodities shall be permitted on condition that all other requirements and formalities for placing under import regime stipulated by the acting legislation have been met.

(4) The customs bodies shall not permit the lifting of the commodities and their placing under import regime when they are informed by the competent bodies for market supervision that the commodities pose a serious and immediate risk for the health and safety and measures have been taken regarding them for prohibition of letting them on the market. In these cases the customs bodies shall affix on the invoice and on the other accompanying documents the text Dangerous product - import regime not permitted.

(5) The customs bodies shall also not permit the lifting of the commodities and their placing under import regime when they have been informed by the competent bodies for market supervision that the commodities do not correspond to the acting rules for safety and measures have been taken for prohibition of their letting on the market. In these cases the customs bodies shall affix on the invoice and on the other accompanying documents the text Product not meeting the requirements - import regime not permitted.

(6) The provisions of this article shall apply regarding commodities for which the customs bodies have been informed in advance by the bodies for market supervision that they are subject to control for observance of the rules for safety. The notification shall be carried out by an order coordinated between the customs bodies and the bodies for market supervision.

(7) The provisions of this article shall apply inasmuch as a normative act does not stipulate otherwise regarding the organisation of the border control over specific commodities.

Art. 78b. The provisions of art. 78a shall not apply when a normative act stipulates the veterinary and zoo-technical control, as well as the control regarding the protection of the plants and animals.

Art. 79. (1) By observing the provisions of Art. 80 when the conditions of placing the commodities under a regime are fulfilled and if they are not subject to prohibition or restrictive measures the customs authorities shall permit their lifting upon checking up the data of the declaration or they have been accepted without checking up. Permit for lifting the commodities shall also be given when the inspection cannot be concluded within reasonable period and the presence of the commodity is no longer necessary for it.

(2) The lifting of the commodities shall be permitted for the whole quantity of commodities indicated in one declaration. When one declaration includes several kinds of commodities the data regarding every kind shall be considered an individual declaration.

Art. 80. (1) When the acceptance of the customs declaration incurs customs liability the lifting of the commodities, included in this declaration, shall only be permitted if the customs liability has been paid or secured. This para shall not apply under a regime for temporary import with partial exemption from customs takings in compliance with the provisions of para 2.

(2) When the customs regime, under which the commodities are declared, requires a security the customs bodies shall permit the lifting of the commodities only after its establishment.

(3) The commodities dangerous for the health and the environment, the fire hazardous, perishable and other similar commodities can be lifted after a written permit of the customs bodies before the establishment of the security.

Art. 81. The customs bodies shall undertake the activities stipulated by the normative, including confiscation in favour of the state and sale of commodities:

1. for which a permit for lifting cannot be issued for the following reasons:

a) the check up of the commodities could not have been started or concluded within the periods determined by the customs bodies for reasons caused by the declarer;

b) the documents necessary for placing the commodities under the requested customs regime have not been presented;

c) the due import or export takings have not been paid or secured within the determined period;

d) the commodities are subject to prohibition or restrictive measures;

2. which have not been lifted within the period determined by this law, after the issuance of the permit.

Section II.

Written declaring according to the simplified procedures

Art. 82. (1) For facilitating the customs formalities for observing the procedures of declaring and of the conditions determined by the regulations the customs bodies shall permit:

1. presentation of simplified customs declaration, which is considered as the declaration under Art. 68, not containing some of the required data or to which some of the required documents are not attached;

2. instead of the customs declaration under Art. 68 to present a trade or another document accompanied by an application for placing the commodities under the respective customs regime;

3. the declaring of commodities under the respective customs regime to be carried out through entering them in the accountancy documents of the declarer. In this case the customs bodies shall have the right to relieve the declarer from the obligation to present the commodities.

(2) The simplified declaration, the trade or other document or the entering of the commodities in the accountancy documents must contain the data necessary for identification of the commodities. The entering in the accountancy documents must contain obligatory the date on which it was made.

(3) With the exception of the cases determined by the regulations the declarer shall be obliged to present additional declaration which can be of general, periodical or recapitulative nature.

(4) The additional declaration under para 3 shall be considered a uniform, inseparable document of the documents under para 1, item 1, 2 and 3, which shall come into force on the date of their acceptance by the customs bodies. In the cases under para 1, item 3 the entry in the accountancy documents shall be of the same legal effect as the acceptance of the declaration under Art. 68.

(5) The simplified procedures for transit regime shall be determined by the regulations.

Section III.

Other types of declaring

Art. 83. (1) When the declaring before the customs bodies was made by electronic way, verbally or another activity according to Art. 67, the provisions of Art. 68 - 82 shall apply, accounting for the respective specifics and without violating the principles established by them.

(2) When the declaring has been made by electronic way the customs bodies may not require the attachment of the documents under art. 68, para 3. In these cases the documents shall be at the disposal of the customs bodies for the purposes of the customs control.

(3) The Minister of Finance shall determine the conditions and the order of declaring before the customs bodies by electronic way, considering the respective specifics.

Section IV.

Subsequent control of the declaring

Art. 84. (1) After the permit for lifting the commodities the customs bodies shall have the right to carry out a second check up of the declaration, ex-officio or at the request of the declarer.

(2) The customs bodies shall have the right, after lifting the commodities, for establishing the reliability of the data of the declaration, to carry out control of the trade documents and the data of the import or export operations with them. This control shall be carried out on the spot, before the declarer, for each person related directly or indirectly to the above operations, as well as for any other person, possessing these documents and data. The customs bodies shall have the right to carry out inspection of the commodities if they can be presented.

(3) When, a second check up of the declaration or subsequent control establish that the respective customs regime has been applied on the basis of untrue or incomplete data, the customs bodies shall take the necessary measures, taking into consideration the new circumstances.

(4) Every person, directly or indirectly related to operations for the import, export and transit of commodities, shall be obliged to keep for a period of 5 years the entire documentation for the concrete operations, regardless of the used carrier. This term shall begin at the end of the calendar year when:

1. for commodities under an import regime, different from the ones under item 2, or for commodities declared for export the respective customs declarations have been accepted;

2. for commodities under import regime with reduced or zero customs duty, due to their use for specific purposes, these commodities cease to be under customs supervision;

3. for commodities under other customs regime the respective customs regime concluded;

4. for commodities in a duty free zone or duty free warehouse the commodities leave the duty free zone or duty free warehouse.

Art. 84a. (1) Follow up control of the declaring shall be implemented for all persons who exercise or are related to activity the control of which is assigned to the customs bodies with a law.

(2) At the follow up control shall be implemented check of the lawfulness of the activities of the checked person at the applying of the respective regimes, procedures and measures of the trade policy as well as for fulfilment of his obligations for payment of the public state receivables, collected by the customs bodies.

(3) The customs bodies shall be obliged to establish impartially the facts and the circumstances of para 2 both in damage and in favour of the checked person. In the progress of the check the checked person shall have right to receive information about the established facts and circumstances as far as this will not impede its implementation.

(4) The check shall comprise the goods, the available in the storehouses, the accounting records, the trade, the accountancy and other documentation of the checked person which is of importance for the concrete case.

(5) The customs bodies shall be obliged to clarify to the checked person and to the other participants in the procedures under this law their procedure rights, provided in the Tax-insurance Procedure Code, respectively in the Penal-Procedure Code and to ensure opportunity for exercising them.

Art. 84b. (1) The follow up control shall be implemented by customs employees in specialized units for follow up control in the central customs management and in the regional customs departments. If necessary units for follow up control may be created also in territorial customs departments by the order of art. 11, para 3.

(2) The competence of the unit for follow up control shall be determined by the address of management, respectively according to the permanent address of the checked person. The competence of the unit for follow up control in the Central customs department shall be national.

(3) If it is necessary to be established facts and circumstances connected with the activity of the checked person, of its division, site, activity or property, which are in the scope of competence of other unit for follow up control the director of Agency Customs may permit implementing of the whole check or separate activities to this unit for follow up control.

(4) If specific knowledge and qualification are necessary in the check may participate also other customs employees having them or expert statements may be required from them.

Art. 84c. (1) The check within the framework of the follow up control shall be implemented on the basis of order for assignment.

(2) The order of para 1 shall be issued by:

1. the director of Agency Customs or by officials form Agency Customs authorized by him;

2. director of regional customs directorate and chief of customs, about which the director of Agency Customs shall be notified.

(3) The order of para 1 shall be issued in writing and it shall contain:

1. the legal and the factual grounds for implementing the check;

2. the names and the position of the customs employees who will implement the check;

3. the checked person;

4. the checked period;

5. the kind and the range of the check;

6. the initial date of starting the check and the term for finishing it.

(4) The order of para 1 shall be handed over to the checked person by the customs bodies in the beginning of the check. The checked person may be warned in advance about the beginning of the check if this does not threaten its purpose.

(5) The order of para 1 may be changed with new motivated order by the body assigned the check. The change shall be considered implemented from the date of issuing of the new order which shall be handed over to the checked person.

(6) The term for finishing the check within the framework of the follow up control cannot be longer than two months.

(7) Upon grounded need the term of para 6 can be extended with not more than 4 months with new motivated order by the body assigned the check.

(8) The body assigned the check shall stop the procedure:

1. in case of insurmountable force – from the day of occurrence of the event;

2. when court or administrative procedure has been started of importance for the outcome of the check – after presenting certificate about this circumstance, issued by the body before which the procedure is formed;

3. upon other circumstances, provided with a law.

(9) The body assigned the check can order its stopping for defined term but not longer than 30 days upon motivated request by the checked person after checking the circumstances.

(10) The term for implementing the check shall not pass from the date of occurrence of the respective circumstance for stopping it till the date of its renewal.

(11) The check shall be renewed with an order by the body assigned it at dropping the ground for stopping it. The order for renewal shall be handed over to the checked person.

(12) The orders for assigning, change, stopping and renewal of the check shall not be subject to appeal.

Art. 84d. (1) The checked person shall be obliged to render cooperation to the customs bodies at clarifying facts and circumstances which are of importance for the check by:

1. conceding trade, accounting and other documentation;

2. giving explanations required by the customs bodies;

3. preparing references;

4. certify the references and copies of documents, required by the customs bodies;

5. ensure access to official premises, storehouses and cash rooms;

6. ensure place and conditions for implementing of the check;

7. define persons for rendering cooperation at implementing the check.

(2) The checked person shall be obliged within a reasonable term defined by the customs bodies but not less than 24 hours to present all data, information, documents, papers, chattels, information carriers and circumstances, subject to establishing in the progress of the check, and to point out all persons, state and municipal bodies where they are. This term may be extended if important reasons impose this.

(3) The checked person shall be obliged to ensure for the customs bodies access to the information system when the collecting, preservation and processing of the information of para 2 is implemented through such system.

(4) If it is not possible the check to be implemented at the checked person it shall be implemented at the customs department. In this case the customs bodies shall compile record and description of the documents, chattels and the other evidences which are delivered to them.

Art. 84e. (1) Evidences in the procedure under this section can be the factual data connected with the circumstances of importance for the objectives of the check, contribute for their clarification and are collected and checked by the order, provided in this law.

(2) The evidences shall be collected and checked through written explanations, references and declarations of the checked persons or their representatives, records of explanations by third persons not participating in the administrative process, records of the activities of the customs bodies, expert statements, official documents, received through exchange of information with administrations of other states in line of the international cooperation as well as by other means, provided in a law.

(3) All persons, state and municipal bodies shall be obliged in 7 days term after receiving of request by the customs bodies to present data, information, documents, papers, chattels, information carriers and other evidences about the facts and the circumstances pointed out in the request. This term may be extended by the body assigned the check.

(4) At implementing of check the customs bodies can require cooperation by other bodies for implementing activities with regard establishing of liabilities or responsibilities of the checked person.

(5) When for clarifying of circumstances and issues occurred at the implementation of the check is necessary special knowledge that the customs bodies do not have on their initiative or upon request by the checked person the body assigned the check shall appoint expertise. When the expertise is appointed upon request by the checked person the expenses for implementing it shall be for his account.

Art. 84f. (1) At implementing the check the customs bodies can undertake actions for ensuring of evidences by description or search and seizure by the order of art. 16, para 7 and 8 of documents, papers and other information carriers, of goods and means for processing of information and of technical carriers giving opportunity for its reproduction, taking the necessary measures for preserving its authenticity.

(2) When there is no other opportunity for ensuring the evidences the customs bodies can seal offices, cash rooms, storehouses, trade and other premises for term up to 72 hours.

(3) Record shall be compiled about the activities of para 1 and 2 a copy of which shall be handed over to the checked person.

(4) Till the elapse of the term of para 2 the body, assigned the check, can require from the district court at the location of the site extension of the term of sealing. The court shall pronounce decision on the day of receiving of the request in a closed session with definition, determining term of the sealing. The definition shall not be subject to appeal.

(5) The customs bodies shall terminate the sealing if till the elapse of the term of para 2 the district court has not permitted its extension.

(6) The activities for ensuring the evidences may be appealed in three days term before the body assigned the check, who shall pronounce motivated decision at latest on the day following the day of receiving the appeal. With its decision the body assigned the check may confirm entirely or partially or revoke the appealed activities.

(7) Upon not pronouncing of decision by the body of para 6 within the established term or rejecting of the appeal the activities for ensuring the evidences may be appealed with regard to their lawfulness in 7 days term after the elapse of the term for pronouncing decision of para 6, respectively from receiving the decision, before the administrative court at the location of the body assigned the check. The court shall pronounce definition in 14 days term which shall not be subject to appeal.

(8) The appeal shall not stop the activities for ensuring of the evidences.

(9) The decision of para 6 or the definition of para 7 with which is ruled termination of the activities for ensuring of the evidences shall be fulfilled by the customs body undertaken them.

Art. 84g. For the unarranged issues about collecting, check and ensuring of the evidences and the preparation of the evidence means shall be respectively applied the provisions of Tax-insurance Procedure Code.

Art. 84h. At implementing the check the customs bodies can impose preliminary securing measures by the order of chapter 26, section 1 for preventing the implementing of activities for disposing with the property of the checked person due to which the collecting of the customs duties and the other public state receivables will be impossible or significantly hampered.

Art. 84i. (1) The customs bodies implementing check within the framework of follow up control can accept as established the elements for levying determined by them as well as to accept as established the avoiding of the measures of the trade policy when one of the following circumstances exist:

1. there is no or is not presented accounting according to the Accountancy law or the kept accounting gives no opportunity for establishing or determining the extent of the due public state receivables as well as when the documents necessary for establishing the due public state receivables and for applying the measures of the trade policy are destroyed not by the established order;

2. the necessary documents are lacking or are damaged so that they are unfit for use;

3. the necessary additional data and information cannot be obtained because the checked person is not found at the address of management or at his permanent address after thorough and documented search by the customs bodies;

4. at implementing of check the checked person has not presented the referable evidences within the term of art. 84d, para 2.

(2) In the cases of para 1 the customs bodies shall take in mind each of the circumstances referable to the checked person about:

1. the kind and the character of the factually implemented activity;

2. the paid customs duties and other public state receivables;

3. the movement and the remainders in the bank accounts;

4. the official and the private documents;

5. the contracts concluded by the checked person in connection with the activity implemented by him;

6. the difference between the supplied and the input in the production raw materials and materials;

7. the summarized data about the realized profit, respectively revenues or income by other persons, exercising the same or similar activity under the same or similar conditions;

8. the price and other conditions of the concluded transactions, including data about such transactions between persons related to the checked person;

9. the received and the implemented supplies and the exercised right to tax credit;

10. other evidences of importance for the concrete case.

(3) The circumstances of para 1 and 2 shall be pointed out in the report about the check.

(4) When the circumstances of para 1, items 1, 2 and 4 exist the customs bodies shall notify the checked person that they accept as established the elements determined by them for levying and that they accept as established the evasion of the measures of the trade policy, determining term for presenting of documents and for statement.

Art. 84j. (1) When in the progress of the check in the term of art. 84c, para 3, item 6 have been collected evidences for implemented customs violations or for different extent of the due customs duties and other public state receivables the customs bodies implementing the check shall conduct with the checked person concluding discussion of the circumstances established at the check and the possible legal consequences ensuing from them unless the checked person refuses in writing the discussion. In 7 days term after the concluding discussion the checked person may present written statement on the preliminary findings as well as new evidences.

(2) Record shall be compiled for the conducted concluding discussion which shall be signed by the customs employees implemented the check and by the checked person.

(3) In case the checked person refuses concluding discussion or does not sign the record of para 2 this circumstance shall be certified by two witnesses.

Art. 84k. (1) In 14 days term after the elapse of the term of art. 84c, para 3, item 6 written fact finding report shall be prepared, containing:

1. number and date;

2. the names and the positions of the customs employees implemented the check;

3. the factual and the legal grounds for the check;

4. data about the checked person;

5. the kind and the range of the check;

6. the implemented activities and the established facts and circumstances;

7. the findings made;

8. the undertaken measures for securing the evidences and the public state receivables;

9. proposals for determining the extent of the customs duties and the other public state receivables and for formation of administrative – punitive procedure;

10. description of the attached evidences;

11. signatures of the customs employees, compiled the report and of the chief of the respective unit for follow up control.

(2) The evidences attached to the report shall be integral part of it. The originals of the collected written evidences shall be attached to the copy of the report designated for the customs body assigned the check and certified copies of them shall be attached to the copy designated for the checked person.

(3) The factual findings in the report must be supported with evidences and shall be considered true until the contrary is proved.

(4) In 7 days term after its compiling the report about the check and the evidences attached to it shall be handed over to the checked person against signature and shall be delivered to the body assigned the check for follow up actions. If it is not possible the report to be given personally the checked person the customs bodies shall send it to him with registered letter.

(5) The checked person may make written objections and present additional evidences to the body assigned the check in 14 days term after receiving the report.

Art. 84l. The provisions of art. 211d shall be applied for handing over of messages and documents at implementing of checks within the framework of the follow up control.

Chapter fifteen.

IMPORT

Art. 85. (1) The establishment of import regime shall impart to the foreign commodities a customs status of local commodities.

(2) The import shall comprise the application of the measures of the trade policy, the formalities stipulated for the import of commodities and the levying of the due customs takings.

Art. 86. (1) If, after the date of acceptance of the declaration for import, but before lifting the commodities, the customs stakes or the taxes with equal effect are reduced, the declarer shall have the right to request the application of the more favourable stakes or taxes. In these cases the provisions of Art. 73 shall not apply.

(2) Para 1 shall not apply if the commodities have not been lifted through the fault of the declarer.

Art. 87. When a consignment contains commodities with different tariff classification, whose individual declaring leads to processing and expenses, not corresponding to the amount of the due import customs takings, the customs bodies shall have the right, at the request of the declarer, to accept the customs taxation of the whole consignment according to the tariff classification of the commodity by the highest customs stake.

Art. 88. (1) Commodities which, due to their specific designation are placed under import regime with reduced or zero customs duties or exemption from customs takings, shall remain under customs supervision. The customs supervision shall end when:

1. the determined conditions for levying by reduced rates of customs takings or exemption from customs duties have become inapplicable;

2. the commodities have been exported or destroyed; or

3. it is permitted to use the commodities for purposes different from the ones determined for reduced or zero customs duties or for exemption from customs takings, upon payment of the due customs takings.

(2) The provisions of Art. 94, para 2 and 3 and Art. 96 shall apply for the commodities under para 1 taking into consideration the respective specifics.

Art. 89. The imported commodities shall loose their status of local commodities when:

1. the import declaration is annulled after their lifting; or

2. the import customs takings for these commodities have been reimbursed or acquitted under conditions and by an order determined by the regulations.

Chapter sixteen.

REGIMES OF POSTPONED PAYMENT AND CUSTOMS ECONOMIC REGIMES

Section I.

General Provisions

Art. 90. (1) For the purposes of applying the provisions under Art. 91 - 96:

1. the concept regime of postponed payment regards foreign commodities under the following regimes:

a) transit;

b) customs storing;

c) active improvement with postponed payment;

d) processing under customs control;

e) temporary import;

2. the concept customs economic regime regards the commodities under the following regimes:

a) customs storing;

b) active improvement;

c) processing under customs control;

d) temporary import;

e) passive improvement.

(2) The commodities under regime of postponed payment, as well as the commodities which, within the frames of a regime of active improvement according to the system of restoration have been subject to the formalities for import and the formalities under Art. 128, para 4 shall be considered imported commodities.

(3) The imported commodities which, within the frames of the regimes for active improvement and processing under customs control, have not undergone any operations of improvement or processing, shall be considered commodities in unchanged condition.

Art. 91. The application of every customs economic regime shall be admitted by a permit issued by the customs bodies.

Art. 92. The permits under Art. 91 and Art. 106, para 1 shall be issued in compliance with the conditions stipulated for the respective regime:

1. to persons who are in position to provide the correctness of the operations; and

2. when the customs bodies are in position to provide the supervision and the control over the regime without a necessity of introduction of administrative requirements, not corresponding to the economic need of using of the regime.

Art. 93. (1) The conditions under which the respective regime shall be applied will be indicated in the permit.

(2) The titular of the permit shall be obliged to inform the customs bodies about every change which has occurred after its issuance, which can influence its contents and the conditions of its application.

Art. 94. (1) In the cases determined by the regulations, when commodities produced from commodities under regime of postponed payment are not considered local, the manufactured commodities shall be considered placed under the same regime.

(2) For placing the commodities under regime of postponed payment the customs bodies shall have the right to require security of the customs liability.

(3) For every regime of postponed payment the regulations can stipulate special provisions for establishing a respective security.

Art. 95. (1) Customs economic regime with postponed payment shall conclude when the commodities placed under this regime or the received compensatory or treated products receive a new admissible customs destination.

(2) The customs bodies shall take all necessary measures determined by the regulations for the commodities for which the regime has not ended, according to the provided conditions.

Art. 96. The rights and obligations of the titular of customs economic regime, under conditions determined by the customs bodies, can be transferred to other persons who meet the requirements for using the respective regime.

Section II.

Transit

Art. 97. (1) The transit regime permits the transport from one to another place of the customs territory of the Republic of Bulgaria of:

1. foreign commodities, without being levied with customs takings and without being subject to the measures of the trade policy;

2. local commodities, in cases and in conditions determined by the regulations stipulated for which, as products, are restrictive or encouraging measures for export, for preventing the avoiding or unlawful implementation of these measures.

(2) The transport according to para 1 shall be carried out:

1. according to the provisions for transit regime in the Republic of Bulgaria;

2. under the carnet TIR used as transit guarantee document by the order of the Customs Convention for international transport under carnets TIR (Convention TIR 1975) in the cases when:

a) the transport has begun or must conclude outside the country; or

b) the transportation regards both consignments of commodities which must be unloaded in the country and commodities designated for unloading abroad;

3. under carnet ATA used as a transit guarantee document by the order of the Customs Convention for temporary admission of commodities (Convention ATA 1961), as well as other conventions party to which is the Republic of Bulgaria;

4. under the coverage of form 302 (NATO MANIFEST 302) according to the ratified, promulgated and enacted international agreements of the Republic of Bulgaria with the North Atlantic Treaty Organisation, the countries - members of NATO and the countries - partners participating in Partnership for peace;

5. through post consignments including parcels.

(3) The transit shall apply without violation of the special provisions regarding the movement of commodities under customs economic regime.

Art. 98. (1) The transit regime shall end and the obligations of the holder of the regime have been fulfilled, when the commodities and the necessary documents are presented at the receiving customs office according to the provisions of the regime.

(2) The customs bodies shall conclude the transit regime when they establish, on the grounds of a comparison of the data available in the sending customs establishment with those available in the receiving customs establishment, that the transit regime has been concluded regularly.

Art. 99. The transit regime for transportation of commodities through the territory of another country shall apply when:

1. this possibility is stipulated by an international agreement, or

2. the transportation of commodities through another country is based on a single transport document issued on the customs territory of the Republic of Bulgaria; in this case the effect of the transit regime shall be discontinued temporarily on the territory of the other country.

Art. 100. (1) The person in charge of the transit regime shall be obliged to present security in order to provide the payment of the customs duty and of the other public receivables which can occur regarding the commodities.

(2) The security can be:

1. one-time, covering one transit operation, or

2. general, covering several transit operations, when the customs bodies have permitted the person in charge to use such a general security.

(3) The permit under para 2, item 2 shall be given to local persons who:

1. regularly use the transit regime or for whom the customs bodies are aware that they are in position of fulfilling their obligations related to this regime, and

2. they have not committed grave or repeated offences of the customs or tax legislation.

(4) Persons who prove before the customs bodies that they meet higher requirements for reliability may obtain permit for using general security of a reduced size or a permit for exemption from the obligation to present security. The additional criteria for this permit include:

1. the correct using of the transit regime for a definite period;

2. cooperation with the customs bodies, and

3. regarding the permit for exemption from the obligation to present security - good enough financial status for covering the liabilities of the persons.

(5) The detailed requirements for applying the criteria, as well as the order of giving permit under para 4 shall be determined by the regulations.

(6) The permit for exemption from the obligation to present security under para 4 shall not apply for transit operations including commodities determined by the regulations as commodities of higher risk.

(7) Taking into account the principles of para 4 temporarily prohibited may be the using of general security of reduces size for the transit regime, as an exceptional measure in particular circumstances.

(8) Taking into consideration the principles of para 4 temporarily may be prohibited the using of general security for the transit regime of commodities which, in using general security, have been identified as an object of a wide circle of fraud.

(9) The measures under para 7 and 8 shall be introduced by an order of the director of Agency Customs which shall be promulgated in the State Gazette.

Art. 101. Security shall not be required for:

1. transportation on water or by air;

2. transportation along electric circuits and piping;

3. transportation carried out by railway by licensed railway carriers and transport of postal consignments, including parcels;

4. transportation determined by a normative act of the Council of Ministers.

Art. 102. (1) The person in charge shall be holder of the transit regime. The person in charge shall be obliged:

1. to present the commodities in unchanged state in the receiving customs establishment by the defined deadline and in observance of the measures taken by the customs authorities for their identification;

2. to observe the provisions for the transit regime.

(2) Regardless of the obligations of the person in charge under para 1 the carrier or the recipient who accepts the commodities and knows that they have been placed under transit regime shall also be obliged to present them in unchanged state in the receiving customs establishment by the defined deadline and observing the measures taken by the customs bodies for their identification.

Art. 103. (1) The conditions, the order and the exceptions in applying the transit regime shall be determined by the regulations.

(2). Admitted, in observing the measures stipulated for the commodities shall be:

1. introduction, through bilateral or multi-lateral agreements, of relieved formalities, valid for definite types of commodities or activities, according to the criteria indicated by the agreements;

2. introduction, by an act of the Council of Ministers, of relieved formalities for commodities under definite conditions.

Section III.

Customs storing

Art. 104. (1) The regime of customs storing shall not permit the placing and storing in the customs warehouse of:

1. foreign commodities which are not levied with customs takings and which are not subject to the measures of the trade policy;

2. local commodities for which, according to the acting provisions, for their presentation at the customs warehouse export measures are stipulated.

(2) Customs warehouse means any approved, by the customs bodies and under their control, place where commodities can be stored under definite conditions.

(3) The cases when the commodities under para 1 can be placed under a regime of customs storing, without being in a customs warehouse, shall be determined by the regulations.

Art. 105. (1) The customs warehouse can be public or private, public is the warehouse which can be used for storing commodities by all persons and private is the customs warehouse which can be used for storing only by the holder of the warehouse.

(2) Holder of the warehouse is the person to whom it is permitted to manage the warehouse.

(3) Depositor in the warehouse is the person responsible, according to the declaration, for placing the commodities under a regime of customs storing or the person to whom these rights and obligations are transferred.

Art. 106. (1) The opening and management of customs warehouse shall be admitted upon issuance of permit by the customs bodies with exception of the cases when the warehouse is managed by these bodies.

(2) A person who wishes to open and manage a customs warehouse shall present a written request to the customs bodies, containing the necessary information for issuance of permit and proving the economic expediency of the storing. The permit shall determine the conditions under which the customs warehouse shall be opened and managed.

(3) Permit shall only be issued to local persons.

Art. 107. The warehouse holder shall be obliged:

1. to provide the stay of the commodities under customs supervision during their storing in the customs warehouse;

2. to fulfil the obligations ensuing from storing the commodities;

3. to observe the conditions determined by the permit.

Art. 108. (1) When the permit is issued for a public warehouse the obligations under Art. 107, item 1 and/or 2 can only be assigned to the depositors in the warehouse.

(2) The depositor shall always be responsible for the fulfilment of the obligations ensuing from placing the commodities under regime of customs storing.

Art. 109. The rights and obligations of the warehouse holder can be transferred to another person by a permit of the customs bodies.

Art. 110. The customs bodies, in compliance with the provisions of Art. 94, shall have the right to require from the warehouse holder to establish security of his obligations under Art. 107.

Art. 111. (1) The material accounting for the commodities under regime of customs storing shall be kept by a person approved by the customs bodies, under conditions and by an order approved by them, except in the cases when the public warehouse is managed by the customs bodies.

(2) The commodities under regime of customs storing shall be registered in the respective documents immediately after their deposition in the warehouse.

(3) In compliance with the provisions under Art. 92 the customs bodies may not require material accounting when:

1. the obligations under Art. 107, item 1 and/or 2 are assigned only to the depositor, and

2. the commodities are placed under regime of customs storing by a written declaration and by the normal procedure or by a trade or other document accompanied by an application for placing them under this regime.

Art. 112. (1) When there is a grounded economic expediency and the customs supervision is not obstructed the customs bodies shall have the right to permit:

1. depositing local commodities in a customs warehouse, according to Art. 104, para 1, item 2;

2. reproduction of foreign commodities in a customs warehouse, admitted under the regime of active improvement in compliance with the requirements of this regime;

3. processing foreign commodities in a customs warehouse, admitted under the regime of processing under regime of processing under customs control, in compliance with the requirements of this law;

4. formalities which may not be fulfilled in a customs warehouse by the order of item 2 and 3 according to the regulations.

(2) In the cases under para 1 the commodities shall not be placed under regime of customs storing.

(3) The customs bodies shall have the right to require the commodities under para 1 to be kept under supervision by the order of Art. 111.

Art. 113. (1) The stay of the commodities under regime of customs storing shall be unlimited.

(2) The regulations can determine cases when the customs bodies have the right to determine a period before whose expiration the depositor shall be obliged to request a new customs destination.

Art. 114. (1) During the customs storing usual operations can be applied to the imported commodities, determined by the regulations, designated for provide their protection, improvement of their appearance or quality or their preparation for delivery or re-sale.

(2) The operations under para 1 shall be co-ordinated in advance with the customs bodies which determine the conditions of their fulfilment.

Art. 115. (1) The commodities under a regime of customs storing can be temporarily taken out of the customs warehouse when it is required by the concrete circumstances. The taking out of the commodities shall be permitted in advance by the customs bodies which shall also determine the conditions for it.

(2) During the stay out of the customs warehouse the commodities can be subject to the operations under Art. 144 under the conditions determined by it.

Art. 116. The commodities under a regime of customs storing can be moved from one to another customs warehouse with the permit of the customs bodies.

Art. 117. (1) On occurrence of a customs liability for import of a commodity and the customs value of this commodity is determined on the basis of the actually paid or subject to payment price, which includes the expenses for storing and preservation of the commodities during their stay in the warehouse, these expenses shall not be included in the customs value, on condition that they have been separated from the actually paid or subject to payment price of the commodity.

(2) If the imported commodity has been subjected to usual operations in the context of art. 114, determined, upon request of the declarer for determining the size of the import customs duties shall be used the data for the type, the quantity and the customs value which, at the moment of occurrence of a customs liability would have been used for this commodity if it has not undergone the said operations. Exceptions from these provisions shall be stipulated by the regulations.

(3) When foreign commodities are placed under import regime according to art. 82, para 1, item 3 without presentation to the customs bodies, valid for determining the size of the customs takings shall be the type, the customs value and the quantity for these commodities by the moment of their placing under customs storing regime, on condition that these elements for taxation have been accepted or admitted by the customs bodies on placing the commodities under customs storing regime, and the interested person does not file a request for applying the elements of taxation valid by the moment of occurrence of the customs liability. The performed customs registration shall not exclude the implementation of the provisions in subsequent control.

Section IV.

Active improvement

Art. 118. (1) In compliance with the requirements under Art. 119 the regime of active improvement shall permit to carry out one or more operations on the customs territory of the Republic of Bulgaria for the improvement of:

1. foreign commodities for re-export as compensatory products without levying import customs takings and without being subject to measures of the trade policy;

2. imported commodities for which the import customs takings shall be reimbursed or remitted if they are exported as compensatory products outside the customs territory of the Republic of Bulgaria.

(2) For the purposes of the regime of active improvement:

1. system of postponed payment means a regime of active improvement under para 1, item 2;

2. system of restoration means a regime of active improvement under para 1, item 2;

3. operations for improvement means:

a) processing of commodities including their assembly and uniting with other commodities;

b) reproduction of commodities;

c) repair of commodities, including their full restoration;

d) using commodities determined by the regulations, which are not contained in the compensatory products but allow and facilitate their production even if they are used entirely or partially in the production process;

4. compensatory products are all products obtained as a result of the operations for improvement of the commodities;

5. equivalent commodities are local commodities used instead of import commodities for the production of compensatory products;

6. output is the quantity or the percentage of compensatory products obtained by the improvement of a definite quantity of import commodities.

Art. 119. (1) The customs bodies shall permit:

1. to obtain the compensatory products from equivalent commodities;

2. the compensatory products obtained from equivalent commodities to be exported outside the customs territory of the Republic of Bulgaria before the import of the imported commodities.

(2) The equivalent commodities must be of the same quality and must have the same characteristics as the import commodities. In cases determined by the regulations can be permitted for the equivalent commodities to be on a higher production stage as compared with the import commodities.

(3) For customs purposes, in applying para 1, the import commodities shall be considered equivalent and the equivalent - imported.

(4) The application of the provision under para 1 can be prohibited, restricted or relieved under conditions and by an order determined by the regulations.

(5) In the cases under para 1, item 2, when the compensatory products are subject to levying import customs takings and these products are not exported or re-exported under the regime of active improvement the titular of the permit shall secure the customs takings if the import commodities are not imported within the determined period.

Art. 120. The permit for active improvement shall be issued at the request of the person who carries out or orders the operations for the improvement.

Art. 121. The permit shall be issued to local persons, admitting the issuance of permit to foreign persons if they import commodities not for trading purposes:

1. when it is possible to identify the import commodities in the compensatory products with the exception of the commodities under Art. 118, para 2, item 3, letter d and for the commodities under Art. 119 - when it is possible to establish whether the conditions determined for the equivalent commodities have been fulfilled, and

2. when the regime of active improvement further the creation of more favourable conditions of export or re-export of compensatory products and do not affect the basic economic interests of the producers in the Republic of Bulgaria (economic conditions). The cases when the economic conditions are considered fulfilled shall be determined by the regulations.

Art. 122. (1) The customs bodies shall determine a period within which the compensatory products must be exported or re-exported or receive another customs destination. This period shall be determined according to the duration of the operations for the improvement and the disposal with the compensatory products.

(2) The period shall begin on the date on which the foreign commodities are placed under a regime of active improvement. The customs bodies can extend this period upon written motivated request by the titular of the permit. The customs bodies can admit a period which shall begin within a calendar month or quarter, expire on the last day of a subsequent calendar month, respectively quarter.

(3) For applying the provision under Art. 119, para 1, item 2 the customs bodies shall determine the period of import of the foreign commodities and their declaring for the regime. This period shall begin on the date of acceptance of the declaration for export of the compensatory products obtained from the equivalent commodities.

(4) For individual import commodities or operations for the improvement the regulations can determine special periods.

Art. 123. (1) The customs bodies shall approve the output of the operations for improvement of the commodities or shall indicate the method of its determining. The output shall be determined on the basis of actual conditions under which the operation for the improvement must be fulfilled.

(2) For the cases of usual fulfilment of operations for improvement of commodities with constant characteristics under equal technological conditions, leading to the production of compensatory product with constant quality, on the basis of collected data, the regulations can determine standard output stakes.

Art. 124. The cases and the conditions under which the commodities, in unchanged condition, or the compensatory products are considered placed under import regime shall be determined by the regulations.

Art. 125. (1) When customs liability occurs its amount shall be determined on the basis of the elements to be levied, corresponding to the import commodities by the moment of acceptance of the declaration for their placing under a regime of active improvement, taking into consideration the provisions of Art. 126.

(2) If, at the time of acceptance of the declaration for import, there is a preferential tariff treatment within the frames of the tariff quotas or margins for commodities identical to the declared, these commodities can use the provided preferences, on condition that on the day of accepting the declaration for placing under regime of active improvement the import commodities have conformed with the requirements for preferential tariff treatment.

Art. 126. Except the cases under Art. 125 the compensatory products:

1. shall be levied with import customs takings for these products when placed under import regime and are included in a list enclosed to the regulations, and if they are in quantities corresponding in their output to the exported part of the compensatory products not included in the list. The titular of the permit can request for these products to be levied under the conditions under Art. 125;

2. shall be levied with import customs takings determined according to the provisions for regime of postponed payment or for free zone, or for free warehouse, if placed under this regime or they are in a free zone or a free warehouse as:

a) at the request of the interested person the taxation can be carried out according to the provisions of Art. 125;

b) when the compensatory products have been given one of the indicated customs destinations with the exception of processing under customs control, the amount of the import customs takings must not be less than the amount determined according to the provisions of Art. 125;

3. can be levied according to the regime of processing under customs control if the import commodities can be placed under this regime;

4. can use more favourable tariff treatment due to their specific purpose if such treatment is provided for imported identical commodities;

5. shall be exempt from import customs takings if such exemption is provided for imported identical commodities, in the cases under art. 181, para 1.

Art. 127. (1) The compensatory products and the commodities in unchanged condition or parts of them can be exported temporarily for additional operations for improvement out of the customs territory of the Republic of Bulgaria under the conditions of the regime for passive improvement.

(2) When, during the re-import of the products and commodities under para 1, customs liability occurs levied shall be:

1. the compensatory products and the commodities in unchanged condition under para 1, whose import takings are determined according to Art. 125 and 126, and

2. the re-imported products after their processing outside the customs territory of the Republic of Bulgaria when the amount of the import customs takings is calculated according to the provisions of the regime of passive improvement under the same conditions which would have been applied if the products, exported under the conditions of this regime would have been admitted for import before their export.

Art. 128. (1) The application of the system of reimbursement shall be possible for all commodities with exception of the cases when, at the moment of acceptance of the declaration for import:

1. quantitative restrictions for import exist;

2. tariff measures within the frames of quotas apply for the import commodities;

3. required for the import commodities is presentation of import or export licences or certificates within the framework of the agricultural policy;

4. export subsidies or fees are stipulated for the compensatory products.

(2) Reimbursement shall not be made if, at the moment of acceptance of the declaration for export of the compensatory products presentation is required of import or export licences or certificates within the framework of the agricultural policy or export subsidies or fees are stipulated for them.

(3) Exceptions from para 1 and 2 may be determined by the regulations.

Art. 129. For the system of restoration shall apply the provisions of Art. 119, para 1, item 2 and para 3 and 5, Art. 122, para 3, Art. 124, Art. 125, Art. 126, item 3 and Art. 132.

Art. 130. Temporary export of compensatory products, carried out by the order of Art. 127, para 1, shall not be considered export in the context of Art. 131, unless these products are not re-imported to the Republic of Bulgaria within the set period.

Art. 131. (1) The titular of the permit shall have the right to request reimbursement or acquittal of the import customs takings when he presents proof to the customs bodies that the imported commodities according to the system of restoration or the compensatory products obtained from them are:

1. exported: or

2. with the purpose of subsequent re-export have been placed under transit regime, regime of customs storing, temporary import, active improvement by the system of postponed payment or in a free zone or free warehouse.

(2) The provision of para 1 shall apply if all conditions of using the respective regime have been fulfilled.

(3) For receiving customs destination under para 1, item 2 the imported commodities and the compensatory products shall be considered foreign commodities.

(4) The request for reimbursement shall be presented within a period determined by the regulations.

(5) The compensatory products or the commodities in unchanged condition placed under customs regime in a free zone or in a free warehouse according to the provisions of para 1 can be placed under import regime by a permit of the customs bodies. In this case, for failure to meet the requirements of Art. 126, item 2, the amount of the reimbursed or acquitted import customs takings corresponds to the amount of the customs liability.

(6) In determining the amount of the import customs takings, subject to reimbursement or acquittal, shall apply the provision of Art. 126, item 1, taking into consideration the respective specifics.

Art. 132. For the regime of active improvement under the system of postponed payment the compensatory products shall be exempt from export customs takings which are collected for similar products obtained from local commodities, instead of imported.

Section V.

Processing under customs control

Art. 133. The regime of processing under customs control shall permit the admission to the customs territory of the Republic of Bulgaria of foreign commodities for processing with the purpose changing the appearance or their condition, without levying import customs takings or subjecting to the measure of the trade policy. The products (processed products) obtained as a result of the processing shall be registered for import in the country upon payment of the due import customs takings.

Art. 134. The cases and the specific conditions when a regime of processing under customs control can be used shall be determined by the regulations.

Art. 135. (1) Permit for processing under customs control shall be issued at the request of the person who carries out or orders the processing.

(2) The permit shall be issued to local persons when:

1. the import commodities can be identified in the processed products;

2. after the processing of the products it is economically expedient to restore their appearance and condition which they have had before their placing under the regime;

3. the application of the regime will not lead evasion of the rules for origin and quantitative restrictions stipulated for imported commodities;

4. the application of the regime stimulates the development of the respective activity in the country without affecting the basic economic interests of local producers of similar commodities (economic conditions). The cases when the economic conditions shall be considered fulfilled shall be determined by the regulations.

Art. 136. The provisions of Art. 122, para 1 and 2 and Art. 123 shall also apply for processing under customs control, taking into consideration the specifics of this regime.

Art. 137. When customs liability occurs for commodities in unchanged condition or for products in a transitional stage of processing regarding the one stipulated by the permit, the amount of this liability shall be determined on the basis of the elements of the taxation, established for the import commodities at the time of acceptance of the declaration for processing the commodities under customs control.

Art. 138. (1) When permitting the regime of processing under customs control, if the import commodities were in conformity with the requirements for using definite preferential tariff treatment and if it is applicable for products identical to the prepared for import processed products, for calculation of the import customs takings for the processed products shall apply the preferential customs stakes.

(2) The provisions of para 1 shall also apply for tariff quotas and margins. In these cases, from the tariff quotas or margins, applied at the time of acceptance of the customs declaration for import, shall be deducted the quantity of the import commodity used for obtaining the processed product.

Section VI.

Temporary Import

Art. 139. The regime of temporary import permits the use of the customs territory of the Republic of Bulgaria, with full or partial exempt from import customs takings and without applying the measures of the trade policy, of foreign commodities designated for re-export, without having undergone changes except the normal wear during their use.

Art. 140. Permit for temporary import shall be issued at the request of the person who uses or orders the use of these commodities.

Art. 141. (1) The customs bodies shall not permit a regime of temporary import when it is impossible to identify the import commodities.

(2) The customs bodies can permit a regime of temporary import without identification of the commodities when their nature or the operations to be carried out will not lead to abuse of the regime.

Art. 142. (1) The period within which the import commodities must be re-exported or to receive a new customs destination shall be determined by the customs bodies. This period must be enough for the permitted use.

(2) The maximal period, during which the commodities can remain under regime of temporary import, shall be 24 months, complying with the provisions regarding the specific terms under art. 143. The customs bodies can determine a shorter term with the consent of the interested person.

(3) For exceptional circumstances the customs bodies can extend the periods under para 1 and 2 at the request of the interested person, within reasonable limits, in order to utilise the permitted using.

Art. 143. The cases, the periods and the conditions under which can be permitted regime of temporary import with full exemption from import customs takings shall be determined by the regulations.

Art. 144. (1) The use of regime of temporary import with partial exemption of import customs takings shall be permitted for commodities which are not indicated in the cases under Art. 143 or which are indicated but do not meet all requirements stipulated for permitting the temporary import with full exemption of import customs takings.

(2) The cases of using a regime of temporary import with partial exemption from import customs takings, as well as the commodities for which this regime cannot apply, shall be determined by the regulations.

Art. 145. (1) The amount of the due import customs takings with partial exemption, for each calendar month or a part of the month, during which they are under this regime, shall be 5 percent of the amount of the customs takings due for these commodities, if they have been admitted under import regime on the date on which they have been admitted under temporary import regime.

(2) The total amount of the partially due import customs takings must not exceed the amount of the customs takings which would have been due if these commodities were registered under import regime on the date on which they were placed under temporary import regime, without adding the due interest.

(3) the transfer of rights and obligations ensuing from the temporary import regime according to Art. 96 shall not require the application of the same system of exempt for each period of use.

(4) If the transfer of the rights and obligations has been carried out under regime with partial exemption for the two titulars of the regime during one and the same month, the first titular shall owe the amount of the import customs takings for the whole month.

Art. 146. (1) When a customs liability occurs for imported commodities its amount shall be determined on the basis of the levied elements corresponding to these commodities by the moment of acceptance of the declaration for their placing under temporary import regime. In the cases under art. 143 determined by the regulations, the amount of the liability shall be determined on the basis of the levied elements, corresponding to these commodities by the moment of occurrence of the respective customs liability.

(2) When, due to a reason, different from placing the commodities under temporary import regime with partial exemption from customs takings a customs liability occurs for these commodities the amount of this liability shall be equal to the difference between the customs takings, determined under para 1, and the customs takings, determined under Art. 145.

Section VII.

Passive improvement

Art. 147. (1) In compliance with the provisions of Art. 156 - 161 and Art. 127, applied for the system of the standard exchange, the regime of passive improvement shall permit to export temporarily local commodities, outside the customs territory of the Republic of Bulgaria, in order to subject them to operations for their improvement and the products, obtained as a result from these operations, shall be registered under a regime of import with full or partial exemption from import customs takings.

(2) The temporary export of local commodities shall include the levying with export customs takings, the application of the measures of the trade policy, as well as the other formalities stipulated for the export of local commodities outside the customs territory of the Republic of Bulgaria.

(3) For the purposes of the regime of passive improvement:

1. temporarily exported commodities are the commodities under regime of passive improvement;

2. operations for improvement are the operations under Art. 118, para 2, item 3, letters a, b and c;

3. compensatory products are all products obtained as a result of the operations for improvement of the commodities;

4. output is the quantity or the percentage of compensatory products obtained by the improvement of a definite quantity of temporarily exported commodities.

Art. 148. (1) Local commodities cannot be placed under regime of passive improvement:

1. whose export entitles reimbursement or acquittal of import customs takings;

2. which, before the export, have been placed under regime of import with full exemption from import customs takings due to their use for specific purposes, until the conditions determined for permitting this exemption are in force;

3. the export of which entitles the receipt of subsidies.

(2) Exceptions from the provision of para 1, item 2 can be determined by the regulations.

Art. 149. (1) Permit for passive improvement shall be issued at the request of the person who orders the operations for the improvement.

(2) Using the regime of passive improvement can also be permitted to another person for commodities of Bulgarian origin in the context of this law when the operations for the improvement consist in inclusion of these commodities in commodities produced outside the Republic of Bulgaria and imported as compensatory products. The application of the regime shall be permitted if it facilitates the sale of the exported commodities, without affecting the interests of the local producers of commodities identical or similar to the imported compensatory products.

(3) The cases and the specific conditions for application of para 2 shall be determined by the regulations.

Art. 150. The permit shall be issued to local persons when:

1. it is possible to establish that the compensatory products have been obtained as a result of improvement of the temporarily exported commodities. Exceptions from this provision can be determined by the regulations.

2. the permit for using the regime of passive improvement will not affect substantially the economic interests of the local producers.

Art. 151. (1) The period during which the compensatory products must be re-imported to the customs territory of the Republic of Bulgaria shall be determined by the customs bodies. The set period can be extended upon presentation of a motivated request by the titular of the permit.

(2) The output of the operations for the improvement of the commodities shall be determined by the customs bodies which, if necessary, shall determine the method of its determination.

Art. 152. (1) Full or partial exemption from import customs takings under Art. 153, para 1 shall be permitted on condition that the compensatory products have been declared for import in the name or for the account of:

1. the titular of the permit; or of

2. every other local person if he has obtained the consent of the titular of the permit and if the conditions of the permit have been met.

(2) Full or partial exemption from import customs takings shall not be permitted under Art. 153, para 1 when one or several of the conditions or the responsibilities under the regime of passive improvement have not been met, with the exception of the cases when the non-feasance has not violated the correct functioning of the regime.

Art. 153. (1) The full or the partial exemption from import customs takings under Art. 147, para 1 shall be made through deduction from the amount of the import customs takings, due for the imported compensatory products, of the amount of the import customs takings which would have been due on the same date for the temporarily exported commodities if they have been imported on the customs territory of the Republic of Bulgaria from the country where they have been subject of the operation or of the last operation of improvement.

(2) The amount deducted under para 1 shall be calculated on the basis of the quantity and the type of the temporarily exported commodities on the date of acceptance of the declaration for their placing under a regime of passive improvement and on the basis of the other taxable elements applied regarding these commodities on the date of acceptance of the declaration for import of compensatory products. On applying para 1 the value of the temporarily exported commodities shall be the one taken into account for these commodities at the time of determining the customs value of the compensatory products according to art. 38, para 1, item 2, letter a, or if the value cannot be determined in this way - the difference between the customs value of the compensatory products and the expenses related to improvement, determined by any other appropriate way.

(3) For the purposes of applying para 2:

1. the regulations shall determine the expenses which shall not be taken into account in calculating the sum of deduction;

2. when the temporarily exported commodities, before their placing under regime of passive improvement, have been placed under import regime with reduced customs duties due to their using for specific purposes, and while the terms determined for applying the reduced customs duties continue to be in force, the size of the sum of deduction shall be the size of the import customs takings actually collected in their registration under import regime.

(4) If the temporarily exported commodities could, on placing under import regime, use reduced or zero customs duties due to their using for specific purposes, this size of the customs duties shall be taken into account on condition that these commodities have been subject of the same operations stipulated for such a specific designation in the country where they have been subjected to the operation or of the last operation of improvement.

(5) When the compensatory products use preferential tariff measure in the context of art. 26, para 1, item 4 or 5, and if such a measure is in force for commodities with the same tariff number as the one of the temporarily exported, the size of the import customs takings taken into account in calculating the sum of deduction under para 1 shall be the one which would have been applied should the temporarily exported commodities have met the requirements under which this preferential tariff measure could be applied.

(6) If, within the frames of the trade exchange between the Republic of Bulgaria and other countries exemption from import customs takings, is stipulated for some compensatory products the provisions of this article shall not apply.

Art. 154. (1) When the operation for the improvement aims at repair of temporarily exported commodities their subsequent import shall be carried out with full exemption from import customs takings if it is proven that the repair has been made free of charge under a guarantee obligation or due to a production defect.

(2) para 1 shall not apply when the defective condition of the commodity has been established and taken into consideration at the moment of the initial import of this commodity.

Art. 155. (1) When the operation for the improvement is a repair of temporarily exported commodities against payment the partial exemption from import customs takings is a determination of the amount of the due customs takings on the basis of the elements for levying compensatory products by the date of acceptance of the declaration for their import, as the customs value is equal to the expenses for the repair, if these expenses represent the sole payment by the titular for the permit and they are not affected by relations between him and the person carrying out the repair.

(2) For departure from the provisions of art. 153 the regulations may determine in which cases and under what specific terms the commodities may be placed under import regime after passive improvement, whereas the expenses related to improvement shall be adopted as grounds for determining the customs value for the purposes of applying the Customs Tariff of the Republic of Bulgaria.

Art. 156. (1) The compensatory product can be replaced by an imported commodity, substituting a product, in applying the system of the standard exchange and in compliance with the provisions of Art. 156 - 161.

(2) The application of the system of standard exchange shall be permitted by the customs bodies when the operation for the improvement consists of repair of local commodities.

(3) The provisions applied for the compensatory products shall also apply for the substituting products, with the exception of those under Art. 149, para 2 and 3 and Art. 150.

(4) The customs bodies can permit, under conditions determined by them, a preliminary import of the substituting products before the export of the temporarily exported commodities.

(5) For preliminary import of substituting product shall be established a security of the import customs takings.

Art. 157. (1) The supplementing products must have the same tariff classification, commercial quality and technical characteristics as the temporarily exported commodities for the planned repair.

(2) When the temporarily exported commodities have been used before the export the substituting products must also have been used. The customs bodies shall have the right to permit not to use the substituting product if it has been supplied free of charge due to a guarantee obligation or factory defect.

Art. 158. The standard exchange shall be permitted if it possible to check up whether the conditions under Art. 157 have been fulfilled.

Art. 159. (1) In cases of preliminary import the export of the temporarily exported commodities must be carried out within 2 months from the date of acceptance of the declaration for import of the substituting products.

(2) The customs bodies can extend the period under para 1 at the motivated request of the titular.

Art. 160. In case of preliminary import and application of the provisions under Art. 153 the amount of the sum for deduction shall be determined depending on the taxable elements of the temporarily exported commodities by the date of acceptance of the declaration for placing them under a regime of passive improvement.

Art. 161. For standard exchange shall not apply the provisions of Art. 149, para 2 and 3 and Art. 150.

Art. 162. The procedures stipulated for the regime of passive improvement shall also apply for commodities using the measures of the trade policy, different from the tariff.

Chapter seventeen.

EXPORT

Art. 163. (1) The export regime represents an export of local commodities out of the customs territory of the Republic of Bulgaria and includes the application of the formalities stipulated for the export of commodities, including the measures of the trade policy and, when stipulated - levying export customs takings.

(2) The local commodities for export shall be placed under export regime. This provision shall not apply for the commodities under regime of passive improvement and temporary export.

(3) The declaration for export shall be presented at the customs office in the region where the dispatch and the loading of the commodities for export are carried out. Exceptions from this provision can be provided by the regulations.

(4) For local commodities, for which a law stipulates fiscal preferences as for export the export regime can apply when the commodities leave the customs territory of the Republic of Bulgaria under conditions and by an order determined by the regulations.

Art. 164. The export shall be permitted if the commodities leave the customs territory of the Republic of Bulgaria in the same condition in which they were found at the time of acceptance of the declaration for export.

Chapter eighteen.

TEMPORARY EXPORT

Art. 165. (1) The regime of temporary export permits local commodities to be exported temporarily out of the customs territory of the Republic of Bulgaria on condition that they shall be re-imported without having undergone changes, except the normal wear of their use.

(2) The conditions, the order and the terms of temporary export shall be determined by the regulations.

Division three.

OTHER CUSTOMS DESTINATIONS

Chapter nineteen.

FREE ZONES AND FREE WAREHOUSES

Section I.

General Provisions

Art. 166. The free zones and free warehouses are a detached parts of the customs territory of the Republic of Bulgaria or its premises on which:

1. the foreign commodities for the purposes of the customs taxation and the measures of the trade policy for import are considered outside the customs territory of the Republic of Bulgaria unless they are not placed under import regime or other customs regime and they are not used or spent in violation of the customs provisions;

2. the local commodities can use the measures applied for the export of commodities if this is stipulated by another law or by an act of the Council of Ministers.

Art. 167. (1) The free zones must be fenced, with exception of those under art. 168a. The free zones and free warehouses shall have determined entrance and exit control checkpoints.

(2) New construction in the free zone shall be co-ordinated with the customs bodies regarding the possibilities of exercising customs control and supervision. The co-ordination shall be carried out within 30 days. If the bodies do not announce their decision within this period it shall be accepted that the co-ordination has taken place.

Art. 168. (1) The borders, the entry and exit border control checkpoints of the free zones and warehouses shall be subject to customs supervision, with exception of the free zones under art. 168a.

(2) The customs bodies can exercise customs control of the persons, vehicles and the commodities carried out by them entering or leaving the free zone or the free warehouse.

(3) The access to the free zone or the free warehouse can be prohibited for persons who do not observe the provisions of this law.

(4) The import of commodities in a free zone or a free warehouse, forthcoming and the taking our of these commodities from a free zone or free warehouse can be controlled by the customs authorities. For the purposes of this control all necessary documents, accompanying the commodities in their entering or exiting the free zone or warehouse shall be presented to the customs bodies or to a person appointed by them who shall keep them at their disposal. The customs bodies shall have the right to require the presentation of other documents. While carrying out the control the commodities must be at the disposal of the customs bodies.

Art. 168a. (1) The Council of Ministers may determine free zones where the customs check ups and formalities shall be carried out according to the provisions for regime of customs storing, applying the provisions stipulated for this regime regarding the customs liability. Applied regarding these free zones shall not be art. 170, 176 and 179.

(2) The provisions of art. 44, para 2, art. 199, para 1, item 8 and para 3, item 6 and art. 202, para 1, item 5 shall not regard the free zones under para 1.

Section I.

Import of commodities in the free zones or free warehouses

Art. 169. (1) The free zones and the free warehouses can store both foreign and local commodities.

(2) The customs bodies shall have the right to require the commodities, presenting certain danger, which can damage other commodities and which require special conditions of storing, to be placed on premises or in places equipped for such commodities.

Art. 170. (1) In compliance with the provisions under Art. 168, para 4 the import of the commodities in free zones or free warehouses shall not be considered grounds for their presentation before the customs bodies, or for presentation of customs declaration.

(2) For carrying out the stipulated customs formalities before the customs bodies shall be presented the commodities which:

1. are placed under customs regime and whose import to a free zone or a free warehouse leads to conclusion of this regime. Presentation of the commodities shall not be necessary if it is not required by the provisions of the respective customs regime.

2. are subject to permit for reimbursement or acquittal of import customs takings, on condition that it permits the placement of these commodities in the free zone or in the free warehouse;

3. use the measures under Art. 166, item 2.

(3) The customs bodies must be informed about the commodities subject to levying with export customs takings or other provisions regulating the import.

(4) At the request of the interested persons the customs bodies shall certify the foreign or local status of the commodities placed in a free zone or a free warehouse.

Section I.

Functioning of the free zones and the free warehouses

Art. 171. (1) The duration of the stay of the commodities in the free zones or in the free warehouses shall be unlimited.

(2) The regulations can determine periods of the stay of some commodities in the free zones or in the free warehouses.

Art. 172. (1) Permitted in the free zones and in the free warehouses shall be any activities of industrial or commercial nature, as well as providing services in compliance with the provisions of this law. For carrying out these activities the customs bodies shall be informed in advance.

(2) The customs bodies shall have the right to prohibit or restrict the activities under para 1 depending on:

1. the nature of the commodities - subject of this activity;

2. the needs of the customs supervision.

(3) The customs bodies shall have the right to prohibit the carrying out of activity in the free zones and in the free warehouses to persons who do not comply with the provisions of this law.

Art. 173. (1) The foreign commodities located in a free zone or in a free warehouse can be:

1. placed under import regime according to the requirements of this regime and the provisions of Art. 178;

2. subject to the habitual operations indicated in Art. 114, para 1 without requiring a permit.

3. Placed under regime of active improvement according to the requirements of this regime;

4. placed under regime of processing under customs control according to the requirements of this regime;

5. placed under regime of temporary import according to the requirements of this regime;

6. left according to the provisions of Art. 180;

7. destroyed on condition that the interested person presents to the customs bodies the necessary information.

(2) When the commodities are placed under one of the regimes under para 1, item 3, 4 and 5 the ways of control shall be complied with the conditions of functioning of the free zones or the free warehouses and the customs supervision in them.

Art. 174. (1) The local commodities under Art. 166, item 2 can be subject only to operations aiming at their preservation. These operations can be fulfilled without a permit of the customs bodies.

(2) The local commodities under Art. 166, item 2 can be subject to operations different from those aiming at their preservation under the control of the customs bodies, on condition that after the fulfilment of these operations they will leave the territory of the Republic of Bulgaria.

(3) The local commodities which have not used the measures stipulated by Art. 166, item 2 can be subject to other operations, different from those aiming at their preservation, under the control of the customs bodies.

Art. 175. (1) The commodities placed in the free zones and in the free warehouses, with the exception of the foreign commodities, for which Art. 173 applies, and of the local ones, for which the measures under Art. 166, item 2 have not been applied, cannot be used or spent.

(2) With the exception of the provisions for supplying products for ships, aircrafts and trains, carrying out international transportation, and to a degree allowed by the respective regime, para 1 shall not apply in using or spending commodities under regime of import or temporary import, which under a regime of import or temporary import are not levied with customs takings and which are not subject to the measures of the trade policy.

Art. 176. (1) Every person, exercising the activities of storing, processing, reproduction or sale and purchase of commodities in the free zone or in a free warehouse, must keep a material account in a form, approved by the customs bodies, from the moment of entering the commodities in the free zone or the free warehouse. This material account must allow to the customs bodies the identification of the commodities and the tracking of their movement.

(2) In case of re-loading of commodities in the free zone the documents related to these operations must be at the disposal of the customs bodies. The short-term storing of commodities in cases of re-loading shall be considered a part of the re-loading.

Section IV.

Exporting commodities from the free zones and the free warehouses

Art. 177. (1) In compliance with the special customs provisions the commodities placed in a free zone or a free warehouse can be:

1. exported or re-exported outside the customs territory of the Republic of Bulgaria;

2. deposited in the remaining part of the customs territory of the Republic of Bulgaria.

(2) With the exception of the provisions of Art. 55 - 60, regarding the local commodities, the provisions of Part Three shall apply for deposition of commodities from the free zones or free warehouses in the remaining parts of the customs territory of the country. These provisions shall not apply for commodities exported from the free territory at sea or by air, without placing under transit regime or other customs regime.

Art. 178. (1) When customs liability occurs for a foreign commodity whose customs value is formed on the basis of actually paid or subject to payment price, including the expenses for the storing and keeping the commodities during their stay in the free zone or in the free warehouse, these expenses shall not be included in the customs value on condition that they have been separated from the actually paid or subject to payment price of the commodity.

(2) When a foreign commodity has undergone, in the free zone or in the free warehouse, habitual operations by the order of Art. 114, para 1, the data about the kind, the quantity and the customs value of the commodity used for determining the amount of the import customs takings are those which at the moment of occurrence of the customs liability would apply for this commodity if it has not undergone the said operations. This provision shall also apply at the request of the declarer on condition that the operations have been co-ordinated by the order of para 2.

(3) The regulations can stipulate exceptions from the cases under para 2.

Art. 179. (1) For entry or re-entry of commodities from free zone or from free warehouse into the remaining part of the customs territory of the Republic of Bulgaria or for their placing under customs regime the certification under Art. 170, para 4 can be used for proving the foreign or local status of these commodities.

(2) When the concrete status of the commodities is not determined they shall be considered:

1. local commodities - for the purposes of export customs takings and for applying the measures of the trade policy in cases of export;

2. foreign commodities - in the remaining cases.

Chapter twenty .

RE-EXPORT, DESTRUCTION AND LEAVING IN FAVOUR OF THE STATE, AND LEAVING THE CUSTOMS TERRITORY

Art. 180. (1) The foreign commodities can be:

1. re-exported outside the customs territory of the Republic of Bulgaria;

2. destroyed or left in favour of the state by a permit of the customs bodies.

(2) For the re-export shall apply the formalities for leaving of commodities and the measures of the trade policy.

(3) The Council of Ministers may determine cases when the foreign commodities may be placed under regime of deferred payment in view of applying the measures of the trade policy for export.

(4) The customs bodies shall be informed in advance about the re-export or about the destruction of the commodities. The customs bodies shall prohibit the re-export when the formalities or the measures under para 2 so require.

(5) When commodities are re-exported which, during their stay on the customs territory of the Republic of Bulgaria, have been under customs economic regime, customs declaration shall be presented in compliance with the provisions of art. 66 - 84 and art. 163, para 3 and 4.

(6) The destruction and leaving commodities in favour of the state shall be carried out according to the provisions of the regulations. The destruction or the leaving of commodities in favour of t he state shall not lead to any expenses related to it.

(7) The waste and the remains from the destruction of the commodities shall receive their own customs destination provided for foreign commodities. They shall remain under customs supervision until the moment determined by Art. 44, para 2.

Art. 180a. The commodities leaving the customs territory of the country shall be under customs supervision. They may be subject to check ups on the part of the customs bodies according to the acting provisions. The commodities must leave the customs territory of the country on the roads and in ways determined by the competent bodies.

Part five.

CUSTOMS RELIEF

Chapter twenty one.

EXEMPTION FROM CUSTOMS TAKINGS

Art. 181. (1) The cases when exemption from customs takings are permitted for import or export of commodities shall be determined by the regulations.

(2) The exemption from taxes stipulated by other normative acts does not include the exemption from taxes under Art. 12 of this law except in the cases when this is explicitly settled.

(3) Exemption from customs takings shall not be permitted for commodities sold in the zones of customs control at the border control checkpoints with the exception of:

1. the usual ship and aeroplane supply with fuel and products;

2. the retail sale of commodities at the ports and airports after customs control;

3. the retail sale on board of the aeroplanes carrying out international transportation and on ships of international routes;

4. the sale in the specialised shops for servicing the Diplomatic corps.

Chapter twenty two.

PRODUCTS FROM THE SEA FISHING AND OTHER PRODUCTS OBTAINED FROM THE SEA

Art. 182. Without violating the requirements of Art. 30, para 2, item 6, when placing them under import regime exempt from import customs regime shall be:

1. the products from the sea fishing and the other products obtained from the sea outside the territorial waters of the Republic of Bulgaria by ships registered in the Republic of Bulgaria and navigating under its flag;

2. the commodities obtained from the products under item 1 on board of factory ships registered in the Republic of Bulgaria and navigating under its flag.

Chapter twenty two.

RETURNED COMMODITIES

Art. 183. (1) Local commodities exported outside the customs territory of the Republic of Bulgaria, if returned to it as import for a period of three years, shall be exempt from import customs takings at the request of the interested person.

(2) In specific circumstances the period of three years can be extended by the chief of Agency Customs or by a person authorised by him.

(3) When the returned commodities, before their export from the customs territory of the Republic of Bulgaria, registered with regime of import with reduced or zero customs takings due to their using for specific purposes, the exemption under para 1 shall be permitted if these commodities are used again for the same purposes. If these commodities do not have the same destination the amount of the due import customs takings shall be reduced by the amount of the customs takings paid for the initial import. If the sum for deduction is larger than the due sum for the returned commodities reimbursement shall not be permitted.

(4) The exemption from import customs takings under para 1 shall not be permitted for commodities exported outside the customs territory of the Republic of Bulgaria under a regime of passive improvement, with the exception of the cases when the commodities are in the condition in which they have been exported.

Art. 184. Exemption from import customs takings under Art. 183 shall be permitted for commodities which are re-imported in the same condition in which they have been exported. Cases and conditions, under which exceptions from this provision are admitted, can be stipulated by the regulations.

Art. 185. (1) The provisions of Art. 183 and 184 shall apply considering the respective specifics and for the returned compensatory products, exported or re-exported after having been placed under a regime of active improvement.

(2) The amount of the due import customs takings shall be determined according to the rules for the regime of active improvement as the date of re-export of the compensatory products shall be accepted as date of their import.

Part six.

CUSTOMS LIABILITY

Chapter twenty four.

SECURING THE AMOUNT OF THE CUSTOMS LIABILITY

Art. 186. (1) When, for applying the customs provisions, the customs bodies require establishment of security for customs liability, this security must be provided by the debtor or the by the person who could become a debtor.

(2) The customs bodies shall have the right to require establishment of only one security for one customs liability.

(3) The customs bodies can permit the establishment of the security by another person instead of the person from whom it is required.

(4) When the debtor or the person who could become debtor is a state body or a body of the local authority the chief of Agency Customs shall have the right to relieve him completely or partially from the obligation to establish a security.

(5) The customs bodies may not require establishment of security for insignificant sums, whose amount shall be determined by the regulations.

Art. 187. (1) When the customs provisions do not stipulate obligatory establishment of security such security can be required by a decision of the customs bodies in case that the payment of the due customs liability or a liability which could occur is not certain.

(2) When the security under para 1 is not required the customs bodies can require from the person under Art. 186, para 1 to undertake, in writing, the responsibility for the existing liabilities.

(3) The security under para 1 can be required:

1. at the moment of applying the provisions stipulating the possibility of requiring such security; or

2. at every subsequent moment when the customs bodies establish that the payment of occurred customs liability or liability which could occur is not certain within the stipulated terms.

Art. 188. At the request of the person under Art. 186, para 1 or 3 the customs bodies shall have the right to permit the establishment of a common security for covering several operations through which customs liability occurs or could occur.

Art. 189. (1) When the customs provisions stipulate obligatory establishment of security the customs bodies, taking into account the specific provisions for the transit regime determined by the regulations, shall determine the amount which shall be equal to:

1. the concrete amount of the customs liability(s) if this amount can be determined in a certain way at the moment when the security is required; or

2. the highest amount of the customs liability(s) determined by the customs bodies which have occurred or which could occur for the remaining cases.

(2) For established common security of customs liabilities, whose sum is changing in time, the amount of such security must be determined so that it covers at any moment the full amount of the respective customs liabilities.

(3) When the customs provisions stipulate not obligatory establishment of security and the customs bodies require it they shall determine its amount so that it does not exceed the amounts under para 1 and 2.

(4) Under conditions and in cases determined by the regulations the customs bodies shall have the right to contract with the debtor securities in amounts different from the ones under this article.

Art. 190. The security can be established by a cash deposit, a bank guarantee and, in cases determined by the regulations, in other way, providing the payment of the customs liability.

Art. 191. The cash deposit must be established in forms of payment instruments established according to the acting legal provisions.

Art. 192. The customs bodies shall not owe interest on the received securities.

Art. 193. (1) The bank guarantee shall be presented in a written form and the guarantor shall be obliged to pay jointly with the debtor the secured amount of the customs liability when the payment is due.

(2) The customs bodies shall have the right to refuse the acceptance of the offered bank guarantee when it does not secure the payment of the customs liability within the stipulated period.

Art. 194. (1) The person who is obliged to establish a security shall be free to choose its type among the stipulated under Art. 190.

(2) The customs bodies shall have the right, by an order determined by the regulations, to refuse the acceptance of the offered security as well as the way of its establishment when they are incompatible with the correct functioning of the customs regime. The customs bodies shall have the right to determine a period of time during which the chosen way of securing cannot be changed.

Art. 195. The customs bodies can refuse the security offered by the debtor if it does not provide the payment of the customs liability.

Art. 196. When the customs bodies establish that the presented security does not guarantee or already does not guarantee indisputably or completely the payment of the customs liability within the stipulated period they shall require from the person under Art. 186, para 1 additional security or the replacement of the initial security by a new one.

Art. 197. (1) The security shall not be released until the customs liability, for which it has been presented, is not paid or can occur again. The security shall be released immediately, after the customs liability is paid or cannot occur anymore.

(2) When the customs liability is partially paid or cannot occur for a part of the sum which has been secured the respective part of the security shall be released at the request of the interested person.

Art. 198. Exceptions from applying the provisions of this chapter shall be admitted in fulfilment of international agreements party to which is the Republic of Bulgaria.

Chapter twenty five.

OCCURRENCE OF CUSTOMS LIABILITY

Art. 199. (1) Import customs liability for a commodity subject to import customs takings shall occur for:

1. establishment of import regime;

2. placing under temporary import regime with partial exemption from import customs takings;

3. unlawful entry to the customs territory of the Republic of Bulgaria in violation of the provisions of Art. 45 - 48;

4. unlawful entry from a free zone or from a free warehouse to the remaining part of the customs territory of the country in violation of the provisions of Art. 177, para 1, item 2;

5. evading the customs supervision;

6. non-fulfilment of one of the requirements for temporary storing or using customs regime;

7. non-fulfilment of one of the conditions determined for placing under a respective customs regime or for levying reduced or zero import customs takings, or for exemption from import customs takings before the using of the commodity for specific purposes;

8. using or spending in a free zone or a free warehouse under conditions different from the stipulated by the acting provisions. In case of disappearance of the commodity and if, for this disappearance reliable proof is not presented to the customs bodies it shall be considered that the commodities have been used or spent in the free zone or in the free warehouse;

9. issuance of documents necessary for obtaining preferential treatment of commodities with Bulgarian origin in other countries when agreements concluded between the Republic of Bulgaria and these countries stipulate payment of the due customs takings for the foreign commodities.

(2) The provisions of para 1, item 6 and 7 shall apply in cases different from the ones under item 5 of the same para if the established omissions have lead to actual consequences for the correct functioning of the temporary storing or the respective customs regime.

(3) The import customs liability shall occur:

1. at the moment of acceptance of the customs declaration for the cases under para 1, item 1 and 2;

2. at the moment of the unlawful entry for the cases under para 1, item 3 and 4;

3. at the moment of evasion from the customs supervision for the cases under para 1, item 5;

4. at the moment of ceasing the fulfilment of the requirement whose non-fulfilment ensues customs liability for the cases under para 1, item 6;

5. at the moment of placing the commodity under the respective regime for the cases under para 1, item 7;

6. at the moment of initial using or the spending of the commodity under conditions different from the ones stipulated by the respective provisions for the cases under para 1, item 8;

7. at the moment of accepting the customs declaration for export of the commodities for which documents are issued for using preferential tariff treatment for the cases under para 1, item 9.

(4) Specific cases of occurrence of customs liability, not settled by para 1, as well as the cases when customs liability does not occur shall be determined by the regulations.

Art. 200. (1) Export customs liability shall occur for:

1. export with customs declaration outside the customs territory of the Republic of Bulgaria of commodity subject to export customs takings;

2. export without customs declaration outside the customs territory of the Republic of Bulgaria of commodity subject to export customs takings;

3. non-compliance with the conditions of export outside the customs territory of the Republic of Bulgaria of commodity with full or partial exemption from export customs takings.

(2) The export customs liability shall occur:

1. at the moment of acceptance of the customs declaration for export for the cases under para 1, item 1;

2. at the moment when the commodity has actually been exported out of the territory of the country for the cases under para 1, item 2;

3. at the moment when the commodity has reached a destination different from the one for which its export was permitted with partial or full exemption from customs takings or if it is impossible for the customs bodies to determine this moment - at the moment when the period expires for presentation of proof of fulfilment of the stipulated conditions for the cases under para 1, item 3.

Art. 201. (1) The customs liabilities under Art. 199, para 1 and under Art. 200, para 1 shall also occur when it concerns a commodity - subject of the measure of prohibition or restriction of import or export.

(2) Customs liability shall not occur for unlawful entry in the customs territory of the Republic of Bulgaria of forged bank notes, narcotic substances for which liability is born under the Criminal Code.

(3) When the customs legislation stipulates favourable tariff treatment of the commodities due to their nature or their specific designation, or their partial or full exemption from import or export customs duties according to art. 28, 88, 147, 181 and 183 - 185, such a favourable tariff treatment or full or partial exemption from import customs duties shall apply n the cases of occurrence of import customs liability according to art. 199, 200 and 201, on condition that the actions of the interested person are not related to unconscientiousness or gross negligence and the person proves that the remaining requirements for favourable tariff treatment or for the full or partial exemption have been met.

Art. 202. (1) Debtor of the customs liability shall be:

1. in the cases under Art. 199, para 1, item 1, 2 and 9 and Art. 200, para 1, item 1 and 3 - the declarer, and in cases of indirect representation debtor shall also be the person for whose account was filled out the customs declaration; When the customs declaration for placing under regime has been made on the basis of information leading to partial or full exemption of the due import customs takings, debtor of the customs liability shall also be the person having submitted the necessary information for the declaration, and who has known or, according to the circumstances, should have known that the information is not true to the reality.

2. in the cases under Art. 199, para 1, item 3 and 4:

a) the person(s) who have unlawfully imported the commodities or have participated in it;

b) the person(s) who have purchased or accepted commodities, for which they have known or, under the circumstances, must have supposed that they are unlawfully imported;

3. in the cases under Art. 199, para 1, item 5:

a) the person(s) who have evaded commodities from customs supervision or have participated in it;

b) the person(s) who have purchased or accepted commodities for which they have known or, under the circumstances, must have supposed that they evaded customs supervision;

c) the person responsible to fulfill the obligations ensuing from the temporary storage of the goods or from the using of the customs regime under which they have been.

4. in the cases under Art. 199, para 1, item 6 and 7 - the person(s) who have not fulfilled the requirements ensuing from the temporary storing of the commodities or for using customs regime, or non-fulfilment of one of the conditions of the provided customs regime;

5. in the cases under Art. 199, para 1, item 8 - the person who has used or spent the commodities as well as each person taken part in this action, who has known or from the circumstances must have known that the commodities are used or spent under conditions different from the provided in the acting legislation; when the customs bodies cannot establish in undisputable way the person used or spent the commodities as debtor shall be considered the person who is known to the customs bodies as last possessor of the commodities.

6. in the cases under Art. 200, para 1, item 2 - the person who has exported without customs declaration commodities subject to customs takings and the person(s) who have participated in the export and has known or, under the circumstances, must have known that customs declaration should have been presented for the commodities.

(2) When for a customs liability there is more than one debtor they shall be jointly responsible for its payment.

Art. 203. (1) Unless provided otherwise by this law the amount of the import or export customs takings, due for a commodity, shall be determined on the basis of the elements for levying this commodity by the moment of occurrence of the respective customs liability.

(2) Exceptions from the provisions of para 1 for individual specific cases can be determined by the regulations.

(3) In cases determined by the regulations, in case of occurrence of import customs liability related to regimes of deferred payment the debtor shall pay interest amounting to the size of the legal interest on the size of the import customs takings due to deferring the date of occurrence or its taking under account.

Art. 204. (1) The customs liability shall occur at the place where the activities having led to its occurrence have taken place.

(2) When it is impossible to determine the place of occurrence the customs liability shall be considered occurred at the place where the customs bodies establish that customs takings are due for the commodity.

(3) When the respective customs regime for a commodity has not concluded and the place of occurrence of the customs liability cannot be determined by the order of para 1 and 2 the customs liability shall be considered occurred at the place where the commodity has been placed under this regime.

(4) When the available information allows the customs bodies to establish that the customs liability has already occurred, when the commodities have been placed on another location at an earlier date, it shall be considered that the customs liability has occurred on this location, which can be determined as a location of the commodities at the earliest moment when it can be established that the customs liability has occurred.

(5) Exceptions from the provision of para 1 for individual specific cases can be determined by the regulations.

Chapter twenty six.

PAYMENT OF THE CUSTOMS LIABILITY

Section I.

Taking under account and informing the debtor about the amount of the customs takings

Art. 205. (1) The customs bodies shall calculate the amount of the customs takings ensuing from a customs liability at the moment when they have available the necessary elements and shall enter it in the accountancy documents or in other carrier of accountancy information, which shall be considered taking under account.

(2) The cases when para 1 shall not apply, as well as the procedures and the terms of taking under account shall be determined by the regulations.

(3) When customs liability has occurred, with exception of the cases under art. 199, para 1, item 1 and art. 200, para 1, item 1 and there are no data for the kind of the commodities it shall be considered that liability has occurred:

1. in the cases when data exist for a definite kind of commodities - for the commodity with the highest customs rate of all commodities comprised in this group;

2. in the cases when no data exist for the kind of the commodities - for the highest taxable commodity, taking into account all state takings collected by the customs bodies.

Art. 206. (1) The debtor must be informed in writing about the amount of the customs takings immediately upon their taking under account. The notification of the debtor shall be implemented by the order of art. 211d.

(2) When the amount of the customs takings, entered in the customs declaration, has only informative nature and has not yet been accepted by the customs bodies, the latter shall carry out the notification under para 1 only if the amount of the indicated customs takings does not correspond to the amount determined by them. When the amount of the informatively indicated customs takings corresponds to the amount determined by the customs bodies, and in compliance with the respective provisions, stipulated by the regulation, the issuance of permit for lifting the commodity shall be considered notification of the debtor.

(3) The notification of the debtor may not be made after the expiration of a three-year period from the date of occurrence of the customs liability. This term shall stop running from the moment of filing a complaint in the context of art. 220 for the time of the appeal proceedings.

Section I.

A Imposing security measures by the customs bodies

Art. 206a. (1) When the payment of the customs takings and of the other state receivables, collected by the customs bodies, has not been secured by the order of chapter twenty four the customs bodies may impose the following securing measures:

1. seizure of chattel and takings from the debtor, including of bank accounts;

2. seizure of commodities in circulation;

3. floating charge on real estates.

(2) The security measures shall be imposed when it will be impossible, without them, or the collection of customs takings and other state receivables collected by the customs bodies shall be hindered.

(3) The security measures shall be imposed in compliance with the size of the customs takings and the other state receivables collected by the customs bodies.

(4) The measures under para 1 may not be imposed on the properties on which enforcement cannot be made, except by the consent of the debtor, as well as on the considerations up to the sizes determined by the Tax-insurance Procedure Code.

Art. 206b. (1) The security measures shall be imposed by a provision of the chief of the customs in the region where the size of the customs liability or other public state receivable subject of security has been established.

(2) The provision of para 1 may be appealed by the order of appealing the decrees for compulsory collecting of public state receivables.

Art. 206c. Applied for the issues not settled by this law shall be the provisions of chapter 24 of the Tax-insurance Procedure Code.

Section II.

Terms and ways of payment

Art. 207. The customs takings for which the notification under Art. 206 must be paid by the debtor within periods determined by the regulations.

Art. 208. (1) The payment must be made at the customs office or through a bank.

(2) At the request of the debtor the payment can be made through deduction by the customs bodies of customs takings not due but paid by him.

Art. 209. (1) At the request of the interested person the customs bodies shall have the right to postpone the payment of the customs takings under conditions and within periods determined by the regulations.

(2) The postponement of the payment shall be permitted upon securing the customs takings by the debtor.

(3) For provided additional services, in connection with permitting the postponement of the payment the customs bodies shall collect the incurred expenses.

Art. 210. The customs takings can also be paid by another person, different from the debtor.

Art. 211. (1) When the amount of the customs takings is not paid within the determined period the customs bodies shall:

1. use all possibilities of providing the payment of customs takings provided by this law and other normative acts, including issue administrative acts for compulsory collection.

2. collect legal interest on the amount of the customs takings.

(2) By the order of para 1 shall be provided the payment, together with the legal interest and other state takings collected by the customs bodies, which are not paid within the determined period.

Section III.

Decrees for compulsory collecting of public state takings issued by the customs bodies

Art. 211a. The decrees for compulsory collecting of public state takings are individual administrative acts which shall be issued by the head of the customs in whose region liability unpaid in time has occurred, whereby customs liabilities and other public takings are established.

Art. 211b. The decree shall be issued in 4 original copies - for the debtor, for the customs, for the competent territorial directorate of the National Revenue Agency and for the Agency for state takings.

Art. 211c. (1) The decree shall be issued in writing and shall contain:

1. name of the body issuing it;

2. name and number;

3. the actual and the legal grounds for issuing;

4. data for the debtor;

5. size of the due customs takings and of the other public takings;

6. the date of occurrence of the public takings;

7. (rep.)

8. eventual measures for securing indemnification or its preliminary fulfilment;

9. the body before which and the term within which it can be appealed;

10. the date of issuance and the signature of the respective head of customs.

(2) The decree shall be sent by the chief of the customs with registered letter to the Agency for state receivables for compulsory execution except in the cases of art. 211g, para 2.

(3) The receiving of the decree subject to fulfilment shall be confirmed in writing by the public executor before the customs following the receiving in the account and the sums of the customs duties and other state receivables.

Art. 211d. (1) The handing out of the decree to the individuals shall be certified with signature of the person or his representative. When the deliverer does not find the person he shall hand over the decree to major member of the family if he agrees to deliver it. The person through the handing over takes place shall sign in slip, noting the names, the unified civil number and in what quality he accepts the decree as well as his obligation to deliver it.

(2) The handing over of the decree to corporate bodies shall be certified with the signature of the official received the decree, noting the names, the unified civil number and the position of the recipient.

(3) The handing over of the decree at the working place shall be implemented through an official of the administration. The handing over shall be regular if the names, the unified civil number and the position of the recipient are pointed out.

(4) The deliverer of the decree shall certify with his signature the date and the way of handing over. The refusal the decree to be accepted shall be certified with the signature of the deliverer and at least one witness, the deliverer noting the names, the unified civil number and his address and making note about this in the slip. In this case the decree shall be considered as regularly delivered.

(5) When witness cannot be ensured the decree shall be sent with registered letter. The decree sent by post with registered letter shall be considered as regularly delivered on the date when the slip is signed or on the date when refusal for accepting the decree was made, which refusal shall be certified by the post employee. In case the person does not appear and certify the receiving in the term set in the post message the decree and the post documents shall be attached to the file and the decree shall be considered as regularly delivered.

(6) The individuals with regard to whom procedure has started about which they have been notified and who stay more than 30 days abroad shall be obliged to point out person on the territory of the country to represent them before the customs bodies and to whom the messages and the other acts of the customs administration to be delivered.

(7) The handing over of the decree to the convicted to imprisonment and to the retrained in custody shall be implemented through the administration of the respective institutions.

(8) The handing over of the decree to military servicemen in real service shall be implemented through the commander of the respective division.

(9) handing over of the decree by attaching to the file shall be implemented after elapse of 14 days term after placing of announcement for appearing of the person when:

1. the address of the person is unknown;

2. the person, his representative or proxy cannot be found at the address of management or at their permanent address after thorough and documented search by the customs bodies.

(10) The announcement of para 9 shall be put at a defined for this purpose place in customs department where the decree is issued. The announcement shall also be published in Internet at the respective site of the customs administration.

(11) The circumstances of para 9, item 1 shall be certified with the file and of para 9, item 2 – with document outgoing from the post or with the signature of the deliverer and at least one witness, the deliverer noting the names, the unified civil number and his address making note for this in the slip.

(12) In case the person does not appear before the elapse of the term of para 9 the decree shall be attached to the file and shall be considered as regularly delivered.

Art. 211e. When, after the enactment of the decree the debtor pays the customs duties and the other state receivables together with the interest or part of it the chief of the customs shall notify the public executor about these circumstances.

Art. 211f. The decree can be appealed through the head of the customs who has issued it to the director of the respective regional customs directorate within fourteen days from its presentation.

Art. 211g. (1) The appeal of the decree shall not stop its fulfilment.

(2) The fulfilment of the decree shall be stopped upon request of the debtor if he presents a security amounting to the principal ad the interests. The security can be made in cash deposit or bank guarantee.

(3) The request for stopping the fulfilment shall be made simultaneously with the filing of the complaint and it shall be accompanied by the proof of the made security.

(4) Legal interest on the principal shall be due for the term of the termination.

(5) Para 1 shall not be applied in the cases when with decree for enforced collection of public state receivables are established liabilities ensuing from the applying of international convention to which the Republic of Bulgaria has joined, and debtors are the guaranteeing organizations, determined with an act of the Council of Ministers.

Art. 213h. The head of the customs, through whom the complaint has been filed, shall be obliged, within seven days from its receipt, to send it together with a written statement and the file to the respective director of customs directorate in whose region the respective customs is located. When a request for termination is made it shall also be attached together with the respective proof. If the claim presented in time has been addressed improperly it shall be sent ex-officio to the competent body and the term shall be considered complied with.

Art. 211i. (1) The director of the regional customs directorate shall consider the claim in essence and shall assess all circumstances related to the decree.

(2) The director shall take a motivated decision within thirty days from receipt of the complaint, by which he shall either confirm or revoke the decree entirely or partially, presenting the positions of the parties and the grounds for his decision. He shall also take decision on the request for termination of the fulfilment when such has been made.

(3) When it is established that the issued decree is illegal, another one must be issued instead of it, the director of the regional customs directorate shall revoke the contested decree and shall return the file to the respective head of customs with obligatory instructions.

(4) The decision shall be issued in four original copies - for the debtor, for the customs, for the regional customs directorate and for the Agency for state takings to whom they shall be sent not later than seven days from the expiration of the term under para 2.

(5) The decree confirmed by a decision of the director of the regional customs directorate shall be subject to appeal before the administrative court at its location within fourteen days from the receipt of the decision under para 4. The complaint shall be submitted through the respective head of customs.

(6) The decree cannot be appealed by a court order in the part for which it has not been appealed by an administrative order, or in the part in which the complaint has been entirely or partially satisfied.

Art. 211j. (1) Applied for the proceedings on the court appeal and for the cassation proceedings shall be respectively the provisions of chapters seventeen and nineteen of the Tax-insurance Procedure Code, and the revoking of enacted decisions can be required from the interested party under the conditions and by the order of art. 231 of the Civil Procedure Code.

(2) In considering the complaints subpoenaed in court shall be the body who has issued the contested act, the claimant and the National Revenue Agency when it is an interested party.

Art. 211k. The decree shall enter into force when:

1. it has not been contested by the deadline before the respective director of regional customs directorate;

2. it has been contested by the deadline of the regional customs directorate, it has not satisfied the complaint and the decree has not been contested at court by the deadline;

3. it has been confirmed by the court.

Art. 211l. (rep.)

Chapter twenty seven.

ACQUITTAL OF THE CUSTOMS LIABILITY

Art. 212. (1) The customs liability shall be acquitted:

1. by payment of customs takings;

2. by remission of customs takings;

3. when for commodities declared for customs regime requiring the payment of customs takings:

a) the customs declaration has been annulled;

b) before giving permit for their lifting the commodities have been detained and, immediately or subsequently, have been: confiscated in favour of the state; destroyed by order of the customs bodies; destroyed or left by the order of Art. 190; destroyed or irrevocably lost due to a reason related to the nature of the commodities or due to an insurmountable force or other unforeseeable circumstances;

4. when commodities, for which customs liability has occurred according to Art. 199, para 1, item 3 and 4 are detained for their unlawful import and, immediately or subsequently, have been confiscated in favour of the state.

(2) The right of collecting the customs takings shall also be acquitted with the expiration of a five-year period, considered from January 1 of the year following the year during which the customs liabilities and the other public state takings have occurred, established by a decree for compulsory collecting.

(3) The provision of para 1 shall not apply when court proceedings are instituted for insolvency of the debtor.

Art. 212a. The customs liability occurred pursuant to art. 199, para 1, item 9 shall be redeemed when the implemented formalities for permitting preference tariff treatment are revoked.

Art. 213. The ways of acquittal of the customs liabilities, occurred in specific cases, shall be determined by the regulations.

Chapter twenty seven.

REIMBURSEMENT AND REMISSION OF CUSTOMS TAKINGS

Art. 214. (1) Reimbursement of customs takings is the return in full or partial amount of the paid import or export customs takings.

(2) The reimbursement shall be carried out when it is established that at the moment of payment the customs takings have not been due or the grounds for their payment has been dropped.

Art. 215. (1) Remission of customs takings is:

1. a decision for full or partial non-collection of import or export customs takings; or

2. a decision for full or partial annulment of the receivable under account of the amount of the import or export customs takings when they have not been paid.

(2) Remission shall be carried out when it is established that at the moment of taking them under account the customs takings have not been due or the grounds for their collecting has been dropped.

Art. 216. (1) Reimbursement or remission cannot be permitted when the activities which have served as grounds of the payment or the taking under account of customs takings which are not due ensue from unconscientious behaviour of the interested person.

(2) The reimbursement or the remission of import or export customs takings shall be permitted upon written request before expiration of the term of three years, considered from the date on which the debtor has been informed about these customs takings.

(3) The term of para 2 may be extended if the interested person presents evidences that he has been impeded to submit such request due to unpredictable circumstances or insurmountable force.

Art. 216a. Redemption of import or export landing charges shall be implemented in case the customs declaration is annulled and the landing charges have been paid. The redemption shall be permitted after written request by the interested person submitted within the term for submitting of application for annulling of the customs declaration.

Art. 217. The regulations can determine cases and conditions different from the indicated in the preceding articles, under which can be permitted reimbursement or remission of import or export customs takings.

Art. 218. The regulations can determine a minimal amount of the import or export customs takings under which reimbursement or remission shall not be permitted.

Art. 219. When, due to admitted mistakes the customs liability has been remised or the amount of the respective customs duties has been reimbursed the initial liability shall become due again.

Art. 219a. No interest shall be due for the reimbursed customs takings. In the cases when the customs takings have been determined by an unlawful act of the customs bodies the undue sums shall be reimbursed with the legal interest.

Part seven.

APPEAL OF DECISIONS

Art. 220. Every person can appeal decisions of the customs bodies affecting him, by the order of the Administrative procedure code.

Art. 221. When the appealed decision is related to import or export customs takings for the suspension of its fulfilment security for their amount shall be required.

Art. 222. The provisions of division seven shall not apply in the cases regarding the revoking or amendment of acts issued by the customs bodies on the basis of administrative and punitive provisions of this law.

Part eight.

ADMINISTRATIVE AND PUNITIVE PROVISIONS

Chapter twenty nine.

GENERAL PROVISIONS

Art. 223. The customs bodies shall investigate, establish and punish every violation or an attempt of violating the provisions of the customs legislation, inasmuch as the perpetration does not represent a crime.

Art. 224. The acts representing customs violation, the penalties for which are imposed, as well as the responsibilities for them are determined by this law.

Art. 225. (1) The establishment of the violations, the issuance of penalty decrees and their appeal shall be carried out by the order of the Law for the administrative offences and penalties.

(2) The fulfilment of the enacted penalty decrees and decisions of the court shall be carried out by the order of the Law for the administrative offences and penalties inasmuch as this law does not provide otherwise.

Art. 226. (1) Administrative and punitive responsibility shall be born by persons who have committed customs offence on the customs territory of the Republic of Bulgaria, as well as the instigators, accessories, concealers and allowing.

(2) The persons under para 1 shall be jointly responsible for the customs takings and other public state takings with exception of the fine penalty as a result of the offence.

Art. 226a. (1) The customs bodies shall order seizure in favour of the state of the commodities subject to customs violation, as well as of the vehicles having served for transportation or carrying of the commodities in the cases when such a measure is stipulated by this or other law, except in the cases of art. 229b, para 1, item 3.

(2) before the conclusion of the administrative penal proceedings the customs bodies may administer, by the order of art. 239, the commodities subject to fast perishing, as well as the commodities whose storing causes considerable expenses to the customs administration.

(3) When the seizure in favour of the state is impossible or in the cases of para 2 the persons under art. 226, para 2 shall pay jointly and severally a sum equal to the customs value of the subject of violation, as well as of the carrying and transport means having served for the transportation or carrying of the commodities.

Chapter thirty .

ADMINISTRATIVE PENALTIES

Art. 227. (1) The following penalties are stipulated for the customs offences:

1. fine;

2. temporary deprivation of the right of carrying out import and export of commodities by the corporate bodies and sole entrepreneurs;

3. proprietary sanction for the corporate bodies and sole entrepreneurs.

(2) The deprivation of the right to carry out import and export of commodities is a temporary prohibition for the perpetrator to carry out such activity for a period of six months to two years. This penalty shall be imposed when the customs smuggling represent a severe case or for repeated perpetration of offences under this law.

Art. 228. For insignificant cases of customs offences established during their perpetration the customs bodies can impose fines on the spot by an order and in amounts established by Art. 29 of the Law for the administrative offences and penalties.

Art. 229. (1) The customs bodies shall have the right to seize and detain the commodities - subject of customs offence, the carrying, transporting and other means which have served for their hiding, import or export from the country, the material evidence, necessary or related to the investigation procedure, as well as commodities and sums for securing eventual takings under the issued act.

(2) Until the conclusion of the administrative penal and criminal proceedings the seized and withheld commodities shall be stored by the customs establishment.

(3) The customs bodies shall detain and store under customs supervision the commodities which are object or means or proof of committed crime until the fulfilment of the customs formalities regarding them according to the acting legislation.

(4) For the narcotic substances seized by the customs bodies shall apply the provisions of the Law for control over the narcotic substances and precursors.

(5) The customs bodies shall turn over immediately to the bodies of the Ministry of Interior the seized weapons, munitions and explosives.

(6) In case that the commodities - subject of the customs offence, are not confiscated in favour of the state, including in case of determining their equal value, the customs takings and the other state takings for them shall be collected on general grounds.

(7) The customs bodies may impose the measures by the order of chapter twenty six, section Ia for securing the takings under the act for establishing customs violation.

Art. 229a. Until the issuance of the penal provisions, but not later than 30 days from the issuance of the act for establishing the customs violation, an agreement may be reached between the administrative punishing body and the offender for termination of the administrative penal proceedings for violations under art. 233, para 1 and 2, art. 234 and art. 234a, except in the cases when the act constitutes a crime.

Art. 229b. (1) The agreement shall be made in writing and shall present the agreement of the administrative punishing body and the offender on the following issues:

1. whether an act has been committed, has it been committed by the offender and whether it has been committed guiltily, does it constitute customs violation;

2. what shall be the kind and the size of the penalty;

3. shall the commodities - subject of the violation, be seized in favour of the state, as well as the transport and carrying vehicles having served for the transportation or carrying of the commodities, or they shall be paid in a size not less than 25 percent of their equal value.

(2) The agreement may not determine:

1. a penalty of a kind different from the one stipulated by the law for the concrete customs violation;

2. a size of the fine or of the property sanction lower than the minimal, determined for the concrete customs violation;

3. a sum amounting to less than 25 percent of the monetary equivalent of the subject of violation, as well as of the monetary equivalence of the carrying and transport vehicle representing their customs value.

(3) The agreement shall be signed by the administrative punishing body and by the offender or his representative, explicitly authorised for reaching an agreement.

(4) Within 14 days from signing the agreement for termination of the administrative penal proceedings the director of Agency Customs or an official authorised by him, shall issue a decision approving or refusing the approval of the agreement. The decisions approving the agreement for termination of the administrative penal proceedings shall be sent to the respective prosecutor within 7 days from their issuance.

(5) The agreement for termination of the administrative penal proceedings shall be approved if the requirements of the law have been observed and if the public state receivables stipulated by it have been paid or secured to the deposit account of the respective customs establishment.

(6) The decision under para 4 shall not be subject to appeal, with exception of an appeal approving the agreement for termination of administrative penal proceedings against which the prosecutor may file a protest regarding its lawfulness before the court by the order of the Administrative procedure code. In this case, the protest of the prosecutor shall not stop the fulfilment of the decision.

(7) The terms of issuance of penal provisions shall stop at the moment of instituting court proceedings on a protest of the prosecutor until its conclusion.

(8) In the cases when the agreement for termination of the administrative penal proceedings is not approved, or the decision approving it, is revoked by the court, the administrative punishing body shall issue penal provisions on general grounds.

Art. 229c. The agreement for termination of the administrative penal proceedings shall enter into force on the date of its approval. The agreement shall have the effect of an enacted penal provision and shall be subject to enforcement by the order of the Tax-insurance Procedure Code.

Chapter thirty one.

PROCEEDINGS ON CASES FOR OFFENCES OF THE CUSTOMS REGIME

Art. 230. For every case of offence of the customs regime shall be issued an act by the customs bodies.

Art. 231. The penalty decrees shall be issued by the chief of the Agency Customs or by officials appointed by him.

Art. 232. (1) When the offender is not known the act shall be signed by the issuer of the act and by one witness and it shall not be presented. In this case penalty decree shall be issued which shall be enacted from the moment of its issuance.

(2) When the perpetrator is unknown and he has not been found at the address indicated at the time of presentation of the act for administrative offence, or he has left the country, or he has indicated only an address abroad, the penalty decree shall not be presented. The decree shall be considered enacted two months after its issuance.

Chapter thirty two.

CUSTOMS OFFENCES AND DETERMINING THE ADMINISTRATIVE PENALTIES

Art. 233. (1) Who carries or transports commodities through the state border or attempts it without the knowledge and the permit of the customs bodies, inasmuch as the perpetration does not represent a crime, shall be punished for customs smuggling with a fine of 100 to 200 percent of the customs value of the commodities.

(2) When the subject of the customs smuggling are commodities for which excise is due or which are prohibited for import or export commodities the fine shall be from 150 to 250 percent of the customs value of the commodities.

(3) The commodities, subject of customs smuggling, shall be confiscated in favour of the state regardless of whose property they are and, if the are missing or have been expropriated, their equivalent shall be adjudged, representing their customs value.

(4) the commodities, subject of customs smuggling, shall be confiscated in favour of the state in the cases when the perpetrator is unknown.

(5) The transporting and carrying devices and vehicles which have served for transportation or carrying the commodities, subject of customs smuggling, shall be confiscated in favour of the state regardless of whose property they are if their value obviously does not correspond to the value of the subject of the customs smuggling.

Art. 234. (1) A person who evades or attempts to evade:

1. entirely or partially payment or securing of landing charges or the other public state takings collected by the customs bodies, or

2. prohibitions or restrictions of import or export of commodities or applying of measures of the trade policy, shall be punished for customs fraud.

(2) The penalty for customs fraud shall be fine – for the individuals, or proprietary sanction – for the corporate bodies and the sole entrepreneurs, from 100 to 200 percent of:

1. the extent of the evaded public state takings – for violation of para 1, item 1;

2. the customs value of the commodities subject to the violation of para 1, item 2.

(3) When subject of the customs fraud are commodities for which excise is due the penalty shall be fine – for the individuals, or proprietary sanction for the corporate bodies and the sole entrepreneurs, from 150 to 250 percent of:

1. the extent of the evaded public state takings – for violation of para 1, item 1;

2. the customs value of the commodities subject to the violation of para 1, item 2.

(4) In the cases of para 1 and 3 shall be applied respectively the provisions of art. 233, para 3 and 4.

Art. 234a. (1) A person who diverts temporarily stored commodities or commodities with assigned customs regime or customs direction, by not fulfilling the conditions established by the normative acts or by the customs bodies shall be punished with the fine – for the individuals, or proprietary sanction – for the corporate bodies and the sole entrepreneurs, from 100 to 200 percent of the customs value of the commodities – subject of the violation.

(2) When subject of the violation of para 1 are commodities for which excise is due, the penalty shall be fine – fir the individuals, or proprietary sanction – for the corporate bodies and the sole entrepreneurs, from 150 to 250 percent of the customs value of the commodities – subject of the violation.

(3) In the cases of para 1 and 2 shall be applied respectively the provisions of art. 233, para 3, 4 and 5.

Art. 235. (1) Who sells, buys or attempts to do that, gives or accepts as a present, for keeping, using, renting or as a pawn commodities for which he knows or, under the circumstances, must have supposed that they have been imported in violation of the customs legislation or in violation of the normative restrictions and conditions for imported with reduced or no customs takings due to their specific purpose, shall be punished with fine – for the individuals, or proprietary sanction – for the corporate bodies and the sole entrepreneurs, with up to one thousand levs.

(2) When the provision under para 1 is applied to commodities subject of customs offences under Art. 233 and 234 these commodities shall be confiscated in favour of the state regardless of whose property they are.

(3) The imposed penalty shall not relieve the persons from payment of the due customs takings and other state takings with the exception of the cases under para 2.

Art. 236. The penalty under Art. 235, para 1 shall also be imposed on persons who do not fulfil their obligations under Art. 4, para 1.

Art. 237. Commodities which, in kind and quantity have no commercial nature and for which declaring is required, if not declared by the passengers crossing the state border and which are found at the usual places during customs control shall be confiscated in favour of the state regardless of whose property they are, without imposing a fine.

Art. 238. (1) Each offence of normative acts applicable for commodities under customs supervision, established by the customs bodies, unless provided otherwise, shall be punished with the fine or the proprietary sanction under Art. 235, para 1.

(2) The same penalty shall apply for a person who defies the customs bodies in fulfilment of their official duties, as well as a person obliged by this law to present to these bodies commodities, documents and information, but he refuses to do so.

Art. 238a. Who does not comply with the terms established by the normative acts or determined by the customs bodies shall be punished with fine – for the individuals, or proprietary sanction for the corporate bodies or the sole entrepreneurs, with up to 2000 levs.

Art. 238b. Who does not fulfil obligation under art. 10, para 5. shall be punished with fine up to 1000 levs.

Part nine.

DISPOSAL WITH COMMODITIES CONFISCATED OR LEFT IN FAVOUR OF THE STATE AND DISTRIBUTION OF THE RECEIVED SUMS

Art. 239. The customs administration shall dispose with the confiscated and left in favour of the state commodities under conditions and by an order determined by the regulations.

Art. 240. (1) With the sums received from the realisation of left and confiscated in favour of the state commodities shall be paid the expenses of the customs offices for searching, transportation and storing them, as well as the expenses for the assessment and sale.

(2) Upon deduction of the expenses the sums under para 1 and the sums representing the equivalence of the commodities confiscated in favour of the state, when they are missing or are expropriated, shall be deposited as income.

Additional provisions

§ 1. In the context of this law:

1. Lifting commodities is the release by the customs bodies of commodities for the purposes stipulated by the customs regime under which they have been placed.

2. import customs takings are the customs duties and taxes of equal effect, due for import of commodities.

3. Declaring is the activity by which a person expresses, in established forms and ways, his wish for applying a definite customs regime for a commodity.

4. Export customs takings are the customs duties and taxes of equal effect, due for export of commodities.

5. Local person is any physical person who is a citizen of the Republic of Bulgaria, as well as any corporate body with headquarters of management or registration in the Republic of Bulgaria according to the Bulgarian legislation.

6. local commodities are:

a) commodities which are entirely obtained or produced on the customs territory of the Republic of Bulgaria by the order of Art. 30 and which do not contain commodities imported from other countries. The regulations can determine cases in which the commodities produced from commodities under regime of postponed payment shall not be considered local;

b) commodities imported by the established order to the customs territory of the Republic of Bulgaria and are registered under import regime;

c) commodities produced on the customs territory of the Republic of Bulgaria or only from the commodities under letter b or from the commodities under letters a and b.

7. Customs liability is the liability of a person to pay the import customs takings - import customs liability or the export customs takings - export customs liability levied on certain commodities according to the acting legislation.

8. Customs destination of commodities is:

a) placing commodities under customs regime;

b) placing commodities in a free zone or a free warehouse;

c) re-exporting commodities outside the customs territory of the Republic of Bulgaria;

d) destruction of commodities;

e) leaving commodities in favour of the state.

9. Customs bodies are the officials of the customs offices who carry out customs supervision and control.

10. Customs regime is:

a) import;

b) transit;

c) customs storing;

d) active improvement;

e) processing under customs control;

f) temporary import;

g) passive improvement;

h) export;

i) temporary export.

11. Customs status is the status of the commodities for the purposes of the customs control as local or foreign commodities.

12. Presentation of commodities to the customs bodies is the notification of the customs bodies according to the established forms about the arrival of the commodities at the customs office or at any other place determined or approved by them.

13. Decision is every administrative act for the implementation of the customs provisions issued by the customs bodies for a concrete case, related to legal consequences for one or more persons identified or who can be identified. This identification includes also the binding information under Art. 23.

14. Commodities are all kinds of objects carried through the state border, including along piping and electric trunks, as well as vehicles, passenger luggage and other consignments.

15. Titular of permit is the person to whom a permit is issued.

16. Titular of regime is the person for whose account the declaration has been made, or the person to whom the rights and obligations of the first person have been transferred regarding customs regime.

17. Foreign commodities are the commodities different from the local commodities. The local commodities lose their customs status when they leave the customs territory of the Republic of Bulgaria.

18. Tariff quota is the quantity of a commodity expressed in value or in physical units for which, during a definite period applies a reduced stake of the customs duty which, upon exhausting the quantity, the levying with the stake under the customs tariff shall be resumed.

19. Tariff margin is a quantity of commodity expressed in value or in physical units fro which apply the reduced stake of the customs duty, and in case of exceeding the amount of this quantity, the levying with the stake of the customs tariff can be resumed by the order determined by the act for its introduction.

20. Taxes for additional services are the taxes corresponding to the principles of the provisions under Art. VIII of the General Agreement for the Tariffs and Trade and related to activities such as: issuance of licences, statistic services, foreign currency control, issuance of documents and certification, analysis and inspection, as well as customs activity outside the working place and after office hours.

21. Controlled supply are the methods through which is admitted the export from, passing through or import to the territory of one or several countries of illegally dispatched or arising suspicion that are illegally dispatched narcotic substances and precursors and their analogues and substances which substitute them, with the knowledge and under the control of the competent bodies of these countries with the purpose of discovering the persons participating in illegal traffic.

22. Customs territory of the Republic of Bulgaria is the territory of the Republic of Bulgaria.

23. Declarer is the person who carries out the declaring on his behalf or the person on whose behalf is carried out the declaring.

24. Official secret are:

a) the concrete individualised data entered in the customs declarations and in the attached documents with exception of the data included in the public registers;

b) the data from the trade contracts, including regarding the size and the way of payment;

c) other concrete individualised data obtained or collected in the process of carrying out customs supervision and control or of other activities stipulated by this law.

25. Customs establishments are:

a) the Central Customs Department;

b) the regional customs departments;

c) the territorial customs departments;

d) the customs bureaux;

e) the customs stations.

26. Agreement on the rules for origin, General Agreement on Tariffs and Trade of 1994 and Agreement on implementation of art. VII of the General Agreements on Tariffs and Trade are multi-lateral agreements on the trade with commodities of Appendix 1A to the Marrakech Agreement for establishment of the World Trade Organisation (Appendix to the Statement for accession of the Republic of Bulgaria to the Marrakech Agreement for establishing the World Trade organisation (SG 67, 2002);

27. List of the obligations and relieves attached to the General Agreement for the taxes and Trade of 1994 is the list concerning the Republic of Bulgaria to the Statement for accession of the Republic of Bulgaria to the Marrakech Agreement for establishing the World Trade organisation (Appendix to the Statement for accession of the Republic of Bulgaria to the Marrakech Agreement for establishing the World Trade organisation (SG 67, 2002);

28. Combined nomenclature of the Republic of Bulgaria is a commodity nomenclature used for the purposes of the customs levying and implementation of the non-tariff measures of the trade, agricultural, customs and other policies, related to the import and export, as well as for the statistical recording of the import and export of commodities;

29. Combined nomenclature applied in the countries - members of the European Union is a commodity nomenclature introduced by a stipulation of the Council of the European Communities, used for the purposes of the common customs tariff of the European Communities, of the foreign trade statistics and of the other communion policies related to the import and export of commodities;

30. Approximated system of description and codification of the commodities is a commodity nomenclature based on the Convention for Approximated System of description and codification of commodities of 1983, signed in Brussels within the World Customs Organisation framework.

31. Customs intelligence work is gathering, processing, check up, analysis and spreading of information by the customs bodies for counter-action of the customs and foreign exchange offences and crimes.

32. Measures of the trade policy are not tariff measures introduced as part of the trade policy of the Republic of Bulgaria with normative acts, regulating the import and the export of commodities as measures for supervision or protective measures, quantitative restrictions or limits as well as prohibitions of import or export.

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