Czech Republic: Law of Offshore
Law on Free Zones
Free zones are established in a number of cities across the Czech Republic. Any goods exported into the free zone are exempt from duties and VAT. The exemption also remains if the goods are used in the manufacture of a final product that is exported out of the country again. Duty is only payable when the goods are removed from the zone and into the Czech economy.
Extracts from the law:
CHAPTER ELEVEN, PART ONE
Section 217. General Provisions
- Free customs zones and free customs warehouses shall be parts of a customs territory or facilities built in such parts of a customs territory, which shall be separated from the rest of the customs territory, where:
- from the viewpoint of import duties, taxes and fees and commercial policy measures, foreign goods shall be deemed not to be located in the customs territory, unless such goods have been released for free circulation or released into another customs procedure, or consumed or used under conditions other than those set forth in customs regulations,
- for the purpose of customs duties, taxes and fees collected during import and import commercial policy measures, foreign goods shall be deemed to be goods located in this country that have not been released into free circulation or some other customs regime or used or consumed under other conditions than stipulated in the customs regulations,
- insofar as Czech goods are concerned, their placement in a free customs zone or a free customs warehouse shall entitle them to a preferential treatment generally applied to exported goods.
- If commercial policy measures are to be employed pursuant to the special legal regulations:
- in the release of goods into free circulation, these measures shall not be employed for goods located in a free customs zone or free customs warehouse,
- on entrance of the goods into [the Czech Republic], these measures shall be employed for foreign goods located in a free customs zone or free customs warehouse,
- these measures shall be employed for export of goods if Czech goods located in a free customs zone or free customs warehouse are exported abroad; the exported goods shall be under customs supervision.
CHAPTER ELEVEN, PART TWO
Section 219. Placement of Goods in Free Customs Zones and Free Customs Warehouses
- The perimeter, entry and exit points of free customs zones and free customs warehouses shall be under supervision of the Customs Office.
- People or means of transport entering or leaving a free customs zone or a free customs warehouse may be subjected to a customs control.
- Access to a free customs zone or a free customs warehouse may be denied to persons who cannot provide guarantees of compliance with regulations set forth for free customs zones and free customs warehouses because they have been repeatedly punished for violations of customs regulations.
- The Customs Office shall be entitled to check goods entering, leaving or staying in a free customs zone or a free customs warehouse. In order to enable the Customs Office to conduct such examinations, copies of transport documents accompanying goods entering or leaving the free customs zone or warehouse shall be handed over to, or kept available for, the Customs Office, by the person whom the Customs Office designates for this purpose.
- Goods entering a free customs zone or a free customs warehouse need not be submitted to a Customs Office and a customs declaration need not be submitted for them.
- Control pursuant to paragraphs 2 and 4 shall be carried out only at random by the Customs Office if they have justified suspicion that the customs regulations are being violated; the provisions of paragraph 1 shall not be prejudiced thereby.
- The term “transport document” pursuant to paragraph 4 shall denote any document related to transport of the goods in question according to which the goods can be identified, in particular a bill of delivery, bill of freight and manifest.
Section 220. Placement of Goods in Free Customs Zones and Free Customs Warehouses
- Both Czech and foreign goods may be placed in a free customs zone or a free customs warehouse, irrespective of their quality, origin and place of their importation or destination, including goods subject to bans and restrictions, except for bans and restrictions imposed due to veterinary or pathological concerns, protection of public morality, public order, public security or human health, environmental protection, protection of cultural assets and monuments and museum or gallery exhibits, articles of artistic or historical value, as well as protection of intellectual property. …
CHAPTER 11, PART THREE
Section 222. Operation of Free Customs Zones and Free Customs Warehouses
- The time for which goods will be allowed to remain in a free customs zone or a free customs warehouse shall be unlimited.
- The Ministry may issue a decree imposing a time limit in relation to Czech goods to which the legal regulation implementing agricultural market regulation measures applies.
- Foreign goods placed in a free customs zone or a free customs warehouse may, while so located:
- be released for free circulation under the conditions laid down for release into such procedure and the conditions set forth in Section 229,
- be used without any permission for the operations and routine handling …, <;/
- be released into the inward processing procedure under the conditions laid down for that procedure,
- be released into the procedure for processing under customs supervision under the conditions laid down for that procedure,
- be released into the temporary admission procedure under the conditions laid down for that procedure,
- be abandoned to the state by the person so authorized,
- be destroyed, if the person authorized to do so provides the Customs Office with all information the Customs Office deems necessary.
- If goods are released into the procedures set forth in paragraph 1, letters c), d) or e), the types of check applicable to these procedures may be employed.
CHAPTER 11, PART FOUR
228. Removal of Goods from Free Customs Zones and Free Customs
- 1. Unless stipulated otherwise in special regulations, goods leaving a free customs zone or a free customs warehouse may be
- exported under the exportation procedure or re-exported abroad, or
- brought to another part of the territory of the Czech Republic.
- If a customs debt has been incurred with respect to foreign goods and the customs value of such goods is based on a price actually paid or to be paid, which includes the costs of storage and preservation of the goods in question while they remain in the free customs zone or free customs warehouse, the latter costs shall not be included in the customs value, if distinguished from the price actually paid or to be paid.
- If goods placed in a free customs zone or free customs warehouse have undergone, under a permission granted by the Customs Office, the usual forms of handling … which are essential for preserving the goods, improving their package or marketable quality, or preparing them for transport, the duty shall be assessed, upon the importer’s request, on the basis of the nature and customs value of the goods in question before such handling.
CHAPTER TWELVE, PART ONE – SPECIAL PROCEEDINGS
Section 233. Re-exportation, Destruction and Abandonment to the State
- Foreign goods imported to the country may be:
- re-exported to another country, or
- destroyed under direct supervision of customs authorities, or
- abandoned to the State by a person so authorized.
- The Customs Office shall be notified in advance of any re-exportation or destruction of goods, or their abandonment to the State. If an application has been submitted for the goods to be re-exported by being released into a procedure other than the transit procedure, a customs declaration … shall be submitted.
- The Customs Office shall permit the goods to be destroyed or surrendered to the State under the condition that the destruction or abandonment will comply with applicable environmental protection regulations and that the State will not incur any costs in connection therewith, except for those associated with the sale of the goods in question.
- Any waste or remains resulting from the destruction of goods may be assigned a customs-approved treatment or use applicable to foreign goods. The goods shall remain under customs supervision until they are released into the appropriate customs procedure.