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Bulgaria
Law on Free Zones
Bulgaria has a number
of Free Trade Zones. These are located close
to major transport routes. Free Trade Zones
are located on the border with Serbia, another
on the Turkish border, and in Plovdiv. There
are further zones located at seaports. The Free
Trade Zones allow the movement and storage of
goods without incurring excise duties and VAT,
subject to certain conditions. Bureaucracy is
also kept to a minimum for those companies operating
in these zones.
The
following are relevant extracts from Bulgarian
law on Free Trade Zones, The Customs Act:
TITLE THREE – OTHER CUSTOMS ASSIGNMENTS
CHAPTER
NINETEEN – FREE ZONES AND FREE WAREHOUSES
Section
I. General Provisions
Article 166. Free zones and free warehouses
shall be separate parts of the customs territory
of the Republic of Bulgaria or premises situated
in that territory in which:
1. for the purpose of import customs duties
and trade policy importation measures foreign
goods are considered as being outside the customs
territory of the Republic of Bulgaria provided
they have not been placed under import regime
or another customs regime and have not been
used or consumed in contravention to the customs
regulations;
2. local goods may use the measures applicable
for exportation of goods if this is provided
for in another act or instrument of the Council
of Ministers.
…
Section
II. Placing Goods in Free Zones or Free Warehouses
Article 169.
(1) Both local and foreign goods may be placed
in a free zone or a free warehouse.
(2)
The customs authorities shall be entitled to
require that goods which present a danger or
are likely to damage other goods or which require
special preservation conditions be placed in
premises or locations specially equipped for
such goods.
…
Section
III. Operation of Free Zones and Free Warehouses
Article 171.
(1) There shall be no limit to the length of
time goods may remain in free zones or free
warehouses.
(2)
Time limits may be specified in the Regulations
for some goods remaining in free zones or free
warehouses.
Article
172.
(1) Any industrial and commercial activity as
well provision of services shall be authorized
in a free zone or a free warehouse in compliance
with the provisions herein. The carrying out
of such activities shall be notified in advance
to the customs authorities.
(2)
The customs authorities shall be entitled to
prohibit or restrict the activities referred
to in Paragraph 1, depending on:
1. the nature of the goods concerned;
2. the requirements of customs supervision.
(3)
The customs authorities shall be entitled to
prohibit persons who do not observe the provisions
herein from carrying on an activity in a free
zone or a free warehouse.
…
Section
IV. Removal of Goods from Free Zones or Free
Warehouses
Article 177.
(1) In compliance with the special customs regulations,
goods leaving a free zone or free warehouse
may be:
1. exported or re-exported from the customs
territory of the Republic of Bulgaria;
2. brought into another part of the customs
territory of the Republic of Bulgaria.
(2)
With the exception of Articles 55 to 60 relating
to local goods, the provisions of Part Three
shall apply also to goods brought into other
parts of the customs territory of the country
from free zones and free warehouses. These provisions
shall not apply to goods which leave the free
zone by sea or air without being placed under
a transit or another customs regime.
Article
178.
(1) When a customs debt occurs in respect of
foreign goods whose customs value is formed
on the basis of a price actually paid or payable
and which includes the cost of warehousing or
preserving goods while they remain in the free
zone or the free warehouse, such costs shall
not be included in the customs value provided
they are shown separately from the price actually
paid or payable for the goods.
…
PART
FIVE – CUSTOMS REBATES
CHAPTER
TWENTY-ONE – EXEMPTION FROM CUSTOMS DUTY
Article
181.
(1) The cases of granting exemption from customs
duty both in exportation and importation of
goods shall be specified in the Regulations.
(2)
…
(3)
No exemption from customs duties shall be allowed
for goods sold within the customs control zones
in the border checkpoints, except for:
1. the usual supplies of fuel and products for
ships and aircraft;
2. retail sale of goods in ports and airports
after the customs control;
3. retail sale of goods aboard aircraft and
ships performing international transport;
4. retail in specialized shops servicing the
diplomatic corps.
…
PART
SIX –CUSTOMS DEBT
CHAPTER
TWENTY-FOUR – SECURITY TO COVER CUSTOMS
DEBT
Article
186.
(1) When applying customs rules, the customs
authorities shall require security for customs
debt to be provided; such security shall be
provided by the person who is liable or who
may become liable for that debt.
(2)
The customs authorities shall require only one
security to be provided in respect of one customs
debt.
(3)
The customs authorities may allow that the security
be provided by a person other than the person
that is required.
(4)
When the person who has incurred or who may
incur a customs debt is a public or a local
authority, the Director of the Customs Agency
may exempt the said person in whole or in part
of the obligation to provide security.
(5)
The customs authorities may waive the requirement
for provision of security for insignificant
sums the amount of which shall be specified
in the Regulations.
…
CHAPTER
TWENTY-FIVE – OCCURRENCE OF A CUSTOMS
DEBT
Article
199.
(1) An import customs debt shall occur for goods
subject to customs duties through:
1. processing under the import regime;
2. placing under the temporary import regime
with partial exemption from import customs duties;
3. unlawful introduction into the customs territory
of the Republic of Bulgaria in contravention
to the provisions under Articles 45 to 48;
4. unlawful introduction into another part of
the country's customs territory of goods located
in free zones or free warehouses in contravention
to the provisions set forth in of Article 177,
Paragraph 1, Item 2;
5. evasion from customs supervision;
6. non-compliance with one of the requirements
arising in case of temporary storage or of using
of the customs regime;
7. non-compliance with one of the conditions
governing the placing of the goods under the
respective customs regime or the granting of
a reduced or zero rate import duty or exemption
from customs duties by virtue of the use of
the goods for specific purposes;
8. consumption or use in a free zone or in a
free warehouse under conditions other than those
laid down by the legislation in force. When
goods disappear and when no credible evidence
is presented to the customs authorities it shall
be deemed that the goods have been consumed
or used in the free zone or the free warehouse;
9. issue of documents necessary to grant preferential
treatment in third countries to goods with Bulgarian
origin when agreements concluded between the
Republic of Bulgaria and these countries provide
for the payment of customs duties due for the
foreign goods input.
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