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REPUBLIC OF ALBANIATHE PARLIAMENTLAWNr. 8449, date 27.01.1999CUSTOMS CODE OF THE REPUBLIC OF ALBANIABased on Article 81 and 83 of Constitution, upon the proposal of Council of MinistersTHE PARLIAMENTOF REPUBLIC OF ALBANIADECIDEDTITLE IGENERAL PROVISIONSCHAPTER 1SCOPE AND BASIC DEFINITIONSArticle 1(Customs Legislation)Customs rules shall consist of this Code; theinternational Customs related rules concerningthe conventions adhered by the Republic ofAlbania, the Implementing Provisions of thisCode and other rules related to the Customsactivity.Article 2(The aim of Customs activity)The customs activity ensures the protection ofthe interests of the Republic of Albania,concerning the imports, exports and goods intransit, regardless of the way of transport, withrespect to international shipments, bordercrossing and the free circulation of goods,persons and their luggage.Article 3(Customs territory)The customs territory shall include the landterritory, the territorial waters, the inlandwaters, and the airspace of the Republic ofAlbania.Article 4(Customs line)The customs line is constituted by the seacoast,the coasts of the bordering lakes and rivers,and the land borders with other states.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of AlbaniaArticle 5(Customs zone)1. The customs area includes the premiseswhere the customs authorities exercise theiractivity, as well as all the areas where thoseauthorities exercise control or supervision.2. The customs areas are established at thecheck border crossing points as well as otherpoints of the customs territory.3. The establishment, territorial extension, andthe classification of permanent or temporarycustoms areas are determined by the Councilof Ministers upon proposal of the Minister ofFinance.Article 6(The extension of customs zone)1. The customs land surveillance area isconstituted by the territory between the landborders line up to 10 kilometers inward. Alongthe coasts, this land surveillance area isestablished up to 5 kilometers from the coaststowards the land.2. The sea surveillance area of customs isconstituted by the sea zone from the coasts upto the external limit of the territorial watersand internal waters.Article 7(Customs authorities)Customs authorities mean the authoritiesresponsible for applying customs rules, as wellas other normative acts whose application is aduty of such authorities.Article 8(Definitions)For the purposes of this Code, the followingdefinitions shall apply:1. ‘Person’ means:a) a natural person;b) a legal person;c) all other persons recognized by thelegislation in force.2. ‘Persons established in the Republic ofAlbania’ means:a) in the case of a natural person orpersons referred to in point 1(c), anyperson who is normally resident inAlbania;b) in the case of a legal person, any personwho has in the Republic of Albania aregistered office, central headquartersor a permanent business establishment.3. ‘Customs Administration’ means thestructural organization of customsauthorities.4. ‘Customs office’ means any office atwhich all or some of the formalities laiddown by customs rules may be completed.5. ‘Decision’ means any official act by thecustoms authorities pertaining to customsrules giving a ruling on a particular case,such act having normative effects on oneor more specific or identifiable persons.6. ‘Customs status’ means the status of goodsas Albanian or non-Albanian goods.7. ‘Albanian goods’ means goods:a) wholly obtained or produced in thecustoms territory of the Republic ofAlbania under the conditions referred toin article 29, and not incorporatinggoods imported from other countries orterritories;b) imported from other countries orterritories, which have been releasedfor free circulation in the customsterritory of the Republic of Albania;c) obtained or produced in the customsterritory of the Republic of Albania,either from goods referred to insubparagraph (b) alone, or from goodsreferred to both in subparagraphs (a)and (b) above.8. ‘Non-Albanian goods’ means goods otherthan those referred in subparagraph 7.9. ‘Customs debt’ means the obligation of aperson, to pay the amount of the import\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaduties (customs debt on importation) or theamount of the export duties (customs debton exportation), which apply to specificgoods under the provisions in force in theRepublic of Albania.10. ‘Import duties’ means customs duties andother charges having an effect equivalent tocustoms duties payable on the importationof goods.11. ‘Export duties’ means customs duties andother charges having an effect equivalent tocustoms duties payable on the exportationof goods.12. ‘Debtor’ means any person liable forpayment of a customs debt.13. ‘Supervision by the customs authorities’means action taken in general by thoseauthorities with a view to ensuring thatcustoms rules and, where appropriate, otherprovisions applicable to goods subject tocustoms supervision are observed. Theinland customs authorities do thesupervision of the land surveillance areaand the maritime customs authorities do thesupervision of the sea surveillance area.14. ‘Control by the customs authorities’ meansthe engaging in specific acts such asexamining goods, verifying the existenceand the authenticity of documents,examining the accounts of undertakingsand other records, inspecting means oftransport, inspecting luggage and othergoods carried by or on persons, andcarrying out official inquiries and othersimilar acts, with a view to ensuring thatcustoms rules and, where appropriate, otherprovisions applicable to goods subject tocustoms supervision are observed in thecustoms territory of the Republic ofAlbania.15. ‘Customs approved treatment or use ofgoods’ means:a) the placing of goods under a customsprocedure;b) their entry into a free zone or freewarehouse;c) their re-exportation from the customsterritory of the Republic of Albania;d) their destruction;e) their abandonment to the Exchequer.16. ‘Customs procedure’ means:a) release for free circulation;b) transit;c) customs warehousing;d) inward processing;e) processing under customs control;f) temporary importation;g) outward processing;h) exportation.17. ‘Customs declaration’ means the actwhereby a person indicates in theprescribed form and manner, a wish toplace goods under a given customsprocedure.18. ‘Day of acceptance of declaration atCustoms’ means the moment when thedeclaration is presented at the Customs andis accepted by the Customs office.19. ‘Declarant’ means the person making thecustoms declaration in his own name or theperson in whose name a customsdeclaration is made.20. ‘Presentation of goods at customs’ meansthe notification to the customs authorities,in the manner laid down, of the arrival ofgoods at the customs office or at any otherplace designated or approved by thecustoms authorities.21. ‘Release of goods’ means the act wherebythe customs authorities make goodsavailable for the purposes stipulated by thecustoms procedure under which they areplaced.22. ‘Holder of the procedure’ means theperson on whose behalf the customs\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniadeclaration was made or the person towhom the rights and obligations of theabove-mentioned person in respect of acustoms procedure have been transferred.23. ‘Holder of the authorization’ means theperson to whom an authorization has beengranted.CHAPTER 2ORGANIZATION OF CUSTOMSADMINISTRATION, OF PERSONNEL ANDCUSTOMS ACTIVITIESSection 1Organization of the Central and LocalCustoms AdministrationArticle 9(Organizational levels)1. The Customs Administration comprises theDirectorate General, the Regional Directoriesand the customs houses. It is subordinate toand under the supervision of the Ministry ofFinance.2. The Regional Directories are subordinate toand under the supervision of the DirectorateGeneral of Customs. They are comprised ofone or many customs houses over which theyexercise control.3. The powers and the organization of theCustoms Administration are established in theImplementing Provisions of the Customs Code.4. Within the structures of the GeneralDirectorate of Customs shall be created thedepartment of the fight against smuggling andillicit traffic that carries out the functions ofthe judicial police. Law determines the dutiesand rights of the personnel carrying out thefunctions of the judicial police.Article 10(Opening hours of offices)The opening hours of the CustomsAdministration offices are determined in theImplementing Provisions of this Code.Section 2Formalities, controls, surveillance andpowers of customs authoritiesArticle 11(Formalities, controls, surveillance andpowers of customs authorities)1. Goods may cross the customs line of theland, the sea border and in airports only at thestate border crossing points where there arecustoms areas.2. The loading, unloading, embarking,discharge and transshipment of goods andmeans of transport through the customs lineand in airports shall be carried out with thepermission of the customs authorities andaccording to the modalities established bythem.3. The customs authorities are responsible for:a) carrying out all the activities determinedin this Code with regard to the goodsentering or leaving the Albanian customsterritory, in conformity with the rulesprovided for in the ImplementingProvisions of this Code;b) verifying and collecting the customsduties legally due;c) preventing, verifying and repressing thesmuggling activity, offenses and illicittraffic of prohibited goods;d) ascertaining and verifying violations ofthe provisions of the this Code, asprovided for in Title VIII;e) preparing and signing internationalagreements and conventions in customsmatters, according to the authorization;f) prepare, store and upon a written requestdistribute the statistical data of foreigntrade to the Ministry of Trade and otherpublic institutions established by thedispositions in force;g) supervising goods that are under thecustoms supervision, in the entirecustoms territory of the Republic ofAlbania;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania4. In order to guarantee the observance of theprovisions established by this Code and otherrules whose application is a duty of thecustoms authorities, the customs officersexercise control on any goods, means oftransport, and passengers crossing the customsline in the customs areas and along the landand sea borderline, the inland waterways andin airspace which are under customssurveillance. With a view to more efficientcontrols, customs authorities may signagreements with Albanian or foreign, public orprivate organizations, for exchanginginformation in this field.5. At the land and sea border crossing pointsand in the airports, as well as at the exit of theinland customs offices shall be organized thecontrol of the goods and means of transportleaving the customs areas, in order to verifythe conformity of the quantity and quality ofthe goods transported with the customsdocuments accompanying them. If there arenot any differences, the customs officerscharged with such service will put on thecustoms documents the stamp that shows theirregularity. Otherwise, they will draw up theappropriate written report, which will besubmitted, to the Head of the customs officefor the further formalities.6. When necessary, such service will becarried out by the customs authorities, alsothrough controls of the means of transportalong the roads, where such means move. Insuch a case, the customs officers, to whom theservice of stopping the vehicles has beenassigned, must make use of the appropriateroad sign provided by the Directorate Generalof Customs and must show to the driver theiridentity card. In case of irregularities, thecustoms officers will escort the vehicle to thenearest customs office, where they will drawup the appropriate written report, which will besubmitted to the Head of the customs office forthe further formalities.7. With a view to ensuring the implementationof the customs legislation and other normativeacts, the implementation of which is entitled tothe customs, Customs Authorities may, carryout all the necessary controls at the premises ofthe declarant or any other person, involveddirectly or indirectly in the release of goods, inaccordance with the Implementing Provisionsof this Code.8. When other authorities, operating in thecustoms territory of the Republic of Albania,have suspicions or become aware ofinformation concerning violations of theprovisions of this Code, its ImplementingProvisions or other normative acts whoseapplication is assigned to the customs, theyshall inform immediately the customs officecompetent for that territory. The latter willcarry out all the appropriate verifications andformalities, including notification of thejudicial authorities, according to theprocedures provided for in Title VIII of thisCode.9. Where there are reasonable doubts on trafficof drugs, arms, or other crimes of economic orfinancial character, the competent policeauthorities may stop the vehicles that aresubject of the customs formalities and sealedby the customs authorities. In this case, themeans of transport shall be accompanied to thenearest customs office territorially competent,where the seal will be removed and where theabove mentioned police authorities in thepresence of the customs authorities may carryout all the controls deemed necessary. Theseauthorities in collaboration with the customsauthorities shall prepare the written report andlodge it with the judicial authorities, if it is thecase, in accordance with the provisions of theCriminal Procedure Code.Article 12(Territorial competence)1. Except for the cases of force majeure dulycertified, and except for the transit procedureand release of goods for free circulation, thecustoms declaration must be presented at thecompetent customs offices of the locationwhere the person is situated.2. The Director General, in derogation fromthe rule laid down in the previous paragraph,when the circumstances require the applicationof specific controls, may decide that the\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniacustoms formalities regarding some categoriesof goods may be concentrated at the bordercrossing office, or at one or more inlandcustoms offices.3. The Heads of the customs houses, when theneeds of the trade so require and upon requestof the person concerned, may allow some ofthe customs controls be carried out at thepremises of the declarant, or in other placesproposed by them, which are deemed suitableto perform all the necessary controls by thecustoms authorities. The Director General ofCustoms, taking into account the hours spentfor the control and the distance of the premisesfrom the customs office, shall establish thecosts of the above said service, which shall becharged to the declarant.Section 3Organization chart, employment andworking interrelations of CustomsAdministration personnelArticle 13(Chart organization and salaries)1. Within 15 days from the entry into force ofthis Code, the Council of Ministers, uponproposal of the Minister of Finance, shallestablish the organization chart of the customsadministration in order to guarantee, on onehand, the protection of the fiscal interests ofthe Republic of Albania, and on the other handan organization suitable to the dynamism andthe peculiarity of the customs activity. TheDirector General of Customs shall take all themeasures for appointing the personnel in thecentral and local offices.2. In the organization chart the personnel,depending to the proper tasks is divided intohigh level officials, senior customs officers,and other customs personnel, as categorized inthe Implementing Provisions of this Code.3. The tasks and functions assigned to theaforementioned categories, as well as thepromotion procedures, are laid down in theImplementing Provisions of this Code.4. The Council of Ministers within 15 daysfrom the date when this Code comes in force,determines the salary level for each category ofthe personnel provided for in the ImplementingProvisions of this Code in accordance with thelegislation in force.Article 14(Personnel issues)1. The Director General of Customs isappointed upon decision of the Council ofMinisters, upon proposal of the Minister ofFinance. The Deputy General Directors ofCustoms are appointed by the Minister ofFinance upon proposal of the Director Generalof Customs, in accordance with employingprovisions of this Code.2. The personnel of the CustomsAdministration, with exception of the auxiliarypersonnel, is employed through public test,according to the procedures established by thelaw “For the Civil Service” and itsimplementing provisions, as well as by theImplementing Provisions of this Code andother specific provisions regulating thefunctioning of the Directorate General ofCustoms.3. The auxiliary personnel are employed on anominal basis by the Director General ofCustoms.Article 15(Administration of income and incentives)1. The Directorate General of Customs isgiven, besides the incomes referred to inArticle 296 of this Code, 2% of the annualcustoms income to be used for investments,improvement of the working and livingconditions of the Customs Administrationpersonnel, as well as rewards to the latter.2. Without prejudice to all rules in forcerelating to the pubic employees, consideringthe peculiarity of the work performed, as wellas the difficulties faced while carrying on theirtasks, the personnel of the CustomsAdministration may be conferred an incentive\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniapayment, taking into account the followingcriteria:a) the work performed in the land, sea andairport border customs offices;b) the services of high danger for theperson;c) the ascertainment of violations of theCustoms Code and its ImplementingProvisions;d) the efficiency at work.2. The Director General of Customs, based onthe criteria provided for in paragraph 2 above,delivers the incentive payments between theCustoms Administration personnel.Article 16(Judicial police, uniform and weapons)1. The judicial police as referred to in article 9(4) of this Code concerning the implementationof the customs legislation only.2. The customs personnel wear the serviceuniform and at the discretion of the DirectorGeneral of Customs may be provided withweapons. In the events that service needs makeit necessary to work without wearing auniform, the customs personnel must show theIdentity Card, issued by the Director Generalof Customs.3. The provision with weapons and their useby the customs personnel is done inaccordance with the provisions in forceregarding the arms possession and other ruleson the status of police authorities.4. Customs personnel are not allowed toaccept directly or indirectly, rewards in cash orkind for the customs services conducted.Customs officers are not allowed to carry onany kind of trade or advising activity,incompatible with the performance of thecustoms activity.5. Customs personnel must preserve theprofessional secret regarding all activitiesrelated to the performance of his tasks.6. In application of the provisions provided forin the Criminal Code and the provisions inforce in the customs field, the Director Generalof Customs takes the disciplinary measures incases of violations of this article.CHAPTER 3SUNDRY GENERAL PROVISIONSRELATING IN PARTICULAR TO THERIGHTS AND OBLIGATIONS OFPERSONS WITH REGARD TO CUSTOMSRULESSection 1Right of representationArticle 17(Types of representation)1. Under the conditions set forth in Article 89(2), any person may appoint a representative inhis dealings with the customs authorities toperform the acts and formalities laid down bycustoms rules.2. Such representation may be:a) direct, in which case the representativeshall act in the name of and on behalf ofanother person, orb) indirect, in which case the representativeshall act in his own name but on behalfof another person.3. Save in the cases referred to in article 89 (2)(b) and (3), the representative must beestablished within the Republic of Albania.4. The representative must state that he isacting on behalf of the person represented,specify whether the representation is direct orindirect and whether he is empowered to act asa representative.5. The customs authorities require from anyperson stating that he is acting in the name ofor on behalf of another person, to produce\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaevidence of his power to act as arepresentative.6. A representative, according to theconditions laid down in this Article, may alsobe the customs agent licensed as such by theGeneral Directorate of Customs. Theconditions for granting and revoking thelicense are determined in the ImplementingProvisions of this Code.Section 2Decisions related to the application ofcustoms rulesArticle 18(Decisions)1. Where a person requests that the customsauthorities take a decision related to theapplication of customs rules, that person shallsupply all the information and documentsrequired by customs authorities in order to takea decision.2. Such decision shall be taken and notified tothe applicant within 30 days from the datewhen the request is presented.3. Decisions taken and notified to theapplicant by the customs authorities in writingwhich either reject requests or are detrimentalto the persons to whom they are addressed,shall set out the grounds on which they arebased. They shall refer to the right of appealprovided for in article 19 and 20 of this Code.4. Customs authorities shall immediatelyenforce decisions taken and notified to theapplicant. In cases where the disputed decisionrequires payment of import duties or exportduties, suspension of implementation of thatdecision shall be subject to the existence orlodging of a guarantee.Article 19(Annulment of decisions)1. A decision favorable to the personconcerned shall be annulled if it was issued onthe basis of incorrect or incompleteinformation and:a) the applicant knew or shouldreasonably have known that theinformation supplied was incorrect orincomplete, andb) such decision could not have beentaken based on correct or completeinformation.2. The persons to whom the decision wasaddressed shall be notified immediately of itsannulment.3. Annulment shall take effect from the dateon which the annulled decision was taken.Annulment can have power only within theperiod of time the authorization is valid.4. The person concerned may appeal againstthe decision of annulment of authorization atthe General Directorate of Customs, within 10days from the day of notification. The DirectorGeneral of Customs will reply within 20 dayson acceptance or denial of the appeal. In theevent, the Director General of Customs doesnot reply within this term, the request shall bepresumed to have been accepted.Article 20(Revocation and amendment of decisions)1. A decision favorable to the personconcerned, shall be revoked or amendedwhere, in cases other than those referred to inArticle 19, one or more of the conditions laiddown for its issue were no longer fulfilled.2. A decision favorable to the personconcerned may be revoked where the person towhom it is addressed fails to fulfill anobligation imposed on him under that decision.3. The person to whom the decision isaddressed shall be notified immediately of itsrevocation or amendment.4. The revocation or amendment of thedecision shall take effect from the date ofnotification.5. The person concerned may appeal againstthe revocation or amendment of the decision atthe Directorate General of Customs, within 10days from the notification. The DirectorGeneral of Customs shall reply within 20 days\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaon the acceptance or denial of the appeal. Inthe event, the Director General does not replywithin this term, the request shall be presumedto have been accepted.Section 3InformationArticle 21(Binding Tariff Information)1. Natural and legal persons whilst performingcustoms formalities, as well as stateinstitutions in exercising the functions andpowers entitled to them by law, may requestinformation concerning the application ofcustoms legislation from the customsauthorities. Such request may be refused whereit does not relate to an ongoing import orexport operation.2. The information shall be supplied to theapplicant free of charge. However, where thecustoms authorities incur special costs, forexample because of analyses or expert reportson goods, or the return of the goods to theapplicant, he is charged the relevant amount.Article 22(Validation of Binding Tariff Information)1. The customs authorities shall issue bindingtariff information upon written request.2. Binding tariff information shall be bindingon the customs authorities as against the holderof the information only in respect of the tariffclassification of goods. Binding tariffinformation shall be binding on the customsauthorities only for goods on which customsformalities are fulfilled after the date on whichthey supplied the information.3. The holder of such information must provethat the declared goods correspond to thosedescribed in the information in every respect.4. The binding tariff information will be validfor 6 years. By way of derogation from article19, binding tariff information shall be annulledwhere it is based on inaccurate or incompleteinformation from the applicant.5. Binding tariff information shall cease to bevalid:a) when the information no longerconforms to the normative acts in force.b) where it is no longer compatible withthe explanatory notes of a classificationopinion or an amendment to theNomenclature of the HarmonizedCommodity Description and CodingSystem adopted by the World CustomsOrganization. In that case the date onwhich binding tariff information ceasesto be valid, shall be the date ofpublication of the said measures;c) the holder of information is notified ofits revocation or amendment.6. The tariff classification is done by theGeneral Directorate of Customs; it is bindingand can be changed only upon the decision ofthe Nomenclature Commission at the WorldCustoms OrganizationSection 4Other provisionsArticle 23(The right of control)The customs authorities, in accordance withthe conditions laid down by the provisions inforce, carry out all the controls they deemnecessary to ensure that customs legislation iscorrectly applied.Article 24(The obligation to provide documents)For the purposes of applying customs rules,any person directly or indirectly concerned inthe operations for the purposes of trade ofgoods, shall provide the customs authoritieswith all the required documents andinformation, irrespective of the medium used,and all the necessary assistance, at theirrequest and by the time limit prescribed by thecustoms authorities. In such cases, Article 26shall apply.Article 25(Confidentiality of information)\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

All information which is by nature confidentialor which is provided on a confidential basisshall be covered by the obligation ofprofessional secrecy. It shall not be disclosedby the customs authorities without the expresspermission of the person concerned orauthority providing it. The communication ofinformation shall be permitted where thecustoms authorities may be obliged orauthorized to do so, according to theprovisions in force, particularly in respect ofdata protection, or in connection of legalproceedings.Article 26(Keeping of documents)1. The persons concerned shall keep thedocuments referred to in Article 24 for thepurposes of control by the customs authorities,for the period of ten calendar years,irrespective of the medium used. That periodshall run from the end of the year in which:a) in the case of goods released for freecirculation or goods declared forexport, from the end of the year inwhich the declarations for release forfree circulation or export, are accepted;b) in the case of goods released for freecirculation at a reduced or zero rate ofimport duty on account of their enduse,from the end of the year in whichthey cease to be subject to customssupervision;Customs Code of Republic of AlbaniaTITLE IIc) in the case of goods placed underanother customs procedure, from theend of the year in which the customsprocedure concerned is completed;d) in the case of goods placed in a freezone or free warehouse, from the end ofthe year on which they leave theundertaking concerned.2. However, the documents shall be keptbeyond the time limit of five years, accordingto provisions laid down in other legalprovisions, in the following cases:a) where a check carried out by thecustoms authorities in respect of acustoms debt shows that the relevantentry in the accounts has to becorrected;b) where the communication to the debtoris as a result of an act that could giverise to criminal court proceedings thatthe customs authorities could notdetermine the exact amount legally due.Article 27(Rate of exchange)The value of foreign currencies in AlbanianLek to be applied within the framework ofcustoms law shall be calculated at theexchange rate published from the Bank ofAlbania.FACTORS ON THE BASIS OF WHICH IMPORT DUTIES OR EXPORT DUTIES ANDTHE OTHER MEASURES PRESCRIBED IN RESPECT OF TRADE IN GOODS AREAPPLIEDCHAPTER 1CUSTOMS TARIFF ANDTARIFF CLASSIFICATION OF GOODSArticle 28(Customs Tariff)1. Duties legally owed where a customs debt isincurred shall be based on the Customs Tariffof the Republic of Albania.2. The other measures prescribed byprovisions governing specific fields relating totrade in goods shall, where appropriate, beapplied according to the tariff classification ofthose goods.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania3. The Customs Tariff of the Republic ofAlbania shall comprise:a) the Nomenclature of goods based on theharmonized system;b) any other nomenclature which is wholly orpartly based on the Harmonized system orwhich adds any subdivisions to this systemand which is established by otherprovisions governing specific fields with aview to the application of tariff measuresrelated to trade in goods;c) the rates and other charges normallyapplicable to goods covered by thenomenclature based on the harmonizedsystem;d) the preferential tariff measures containedin agreements which the Republic ofAlbania concludes with certain countriesor groups of countries and which providefor the granting of preferential tarifftreatment;e) autonomous suspensive measuresproviding for a reduction in or relief fromimport duties chargeable on certain goods;f) other tariff measures provided for in theframework of Albanian trade policy.4. The measures referred to in subparagraph 3(d) and (e) shall apply to the declarant requestinstead of those provided for in subparagraph 3(c) where the goods concerned fulfill theconditions laid down by those first-mentionedmeasures. An application may be presentedafter the event if the relevant conditions arefulfilled.5. Where application of the measures referredto in subparagraph 3 (d) and (e) is restricted toa certain volume of imports, it shall cease to bevalid:a) in the case of tariff quotas, as soon as thestipulated limit on the volume of importsis reached;b) in the case of tariff ceilings, by specificruling set forth in normative acts.6. The tariff classification of goods shall bethe determination, according to the rules inforce, of:a) the subheading of the nomenclaturebased on the harmonized system or thesubheading of any other nomenclaturereferred to in subparagraph 3 (b); orb) the subheading of any othernomenclature which is wholly or partlybased on the harmonized system orwhich adds any subdivisions to it, andwhich is established by other provisionsgoverning specific fields with a view tothe application of measures other thantariff measures relating to trade in goods,under which the previously mentioned goodsare to be classified.7. The favorable tariff treatment from whichcertain goods may benefit because of theirnature or end -use shall be subject to theconditions laid down in the ImplementingProvisions of this Code. Where anauthorization is required, Articles 109 and 110shall apply.8. For the purposes of paragraph 7, theexpression ‘favorable tariff treatment’ means areduction in or suspension of an import duty asreferred to in Article 8(10), even in theframework of a tariff quota.CHAPTER 2ORIGIN OF GOODSSection 1Non-preferential originArticle 29(Goods wholly produced in a certain country)1. Goods originating in a country shall bethose wholly obtained or produced in thatcountry.2. The expression “goods wholly obtained orproduced in a country” means:a) mineral products extracted within thatcountry;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniab) vegetable products harvested therein;c) live animals born and raised therein;d) products derived from live animals raisedtherein;e) products of hunting or fishing carried ontherein;f) products of sea fishing and other productstaken from the sea outside a country’sterritorial sea by vessels registered orrecorded in the country concerned andflying the flag of that country;g) goods obtained or produced on boardfactory ships from the products referred toin subparagraph (f), originating in thatcountry, provided that such factory shipsare registered or recorded in that countryand fly its flag;h) products taken from the seabed or subsoilbeneath the seabed outside the territorialsea provided that, that country hasexclusive rights to exploit that seabed orsubsoil;i) waste and scrap products derived frommanufacturing operations and usedarticles, if they were collected therein andare fit only for the recovery of rawmaterials;j) goods, which are produced exclusivelyfrom goods, referred to in subparagraph(a) to (i) or their derivatives at any stage ofproduction.3. For the purposes of paragraph 2, theexpression ‘country’ covers also the territorialwaters of that country.Article 30(In production is involved more than onecountry)Goods whose production involves more thanone country shall be deemed to originate in thecountry where they underwent their last,substantial, economically justified processingor working in an undertaking equipped for thatpurpose and resulting in the manufacture of anew product or representing an important stageof manufacture.Article 31(Certificate of origin)1. Customs rules may require that a documentmust be produced as proof of the origin ofgoods.2. The Chamber of Commerce territoriallycompetent where the goods are producedissues the certificate of non-preferential originof the Albanian goods.3. Notwithstanding the production of thisdocument, the customs authorities, in case ofserious doubts, require any additional proof toensure that the indication of origin doescomply with the rules laid down by therelevant legislation.4. The rules of non-preferential origindetermine the conditions that the goods mustmeet to be considered originating from acertain country. They serve to:a) to implement the Customs Tariff of theRepublic of Albania, excluding themeasures referred to in Article 28(3) (d);b) to implement different measures fromthese tariffs laid down in specificdispositions in the field of trade ofgoods.The formalities regarding the issuance of thenon-preferential origin certificate are laiddown in the Implementing Provisions of thisCode.Section 2Preferential origin of goodsArticle 32(Preferential origin of goods)1. The rules on preferential origin shall laydown the conditions governing acquisition oforigin which goods must fulfill in order tobenefit from the preferential measurescontained in agreements which the Republic ofAlbania completes with certain countries orgroups of countries.2. Customs authorities are entitled to issue thecertificate of preferential origin of goods.3. Rules regarding preferential origin as wellas the formalities of issuance of the certificatesof preferential origin are described in theImplementing Provisions of this Code.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of AlbaniaCHAPTER 3VALUE OF GOODS FOR CUSTOMSPURPOSESArticle 33(Scope of this chapter)The provisions of this Chapter shall determinethe customs value for the purposes of applyingthe Customs Tariff of the Republic of Albaniaand non-tariff measures laid down by otherprovisions governing specific fields related totrade of goods.Article 34(Transaction value as customs value)1. The customs value of imported goods shallbe the transaction value, which is the priceactually paid or payable for the goods whensold for export to the customs territory of theRepublic of Albania, adjusted, wherenecessary, in accordance with Articles 37 and38, provided:a) that there are no restrictions as to thedisposal or use of the goods by the buyer,other than restrictions which:i) are imposed or required by a law orby the public authorities in theRepublic of Albania,ii) do not substantially affect the value ofthe goods;b) that the sale or price is not subject tosome condition or consideration forwhich a value may not be determinedwith respect to the goods being valued;c) that no part of the proceeds of anysubsequent resale, disposal or use of thegoods by the buyer will accrue directlyor indirectly to the seller, unless anappropriate adjustment may be made inaccordance with Article 37; andd) that the buyer and seller are not related,or, where the buyer and seller are related,the transaction value is acceptable forcustoms purposes under paragraph 2.2 a) In determining whether the transaction value isacceptable for the purposes of paragraph 1, thefact that the buyer and the seller are relatedshall not in itself be sufficient grounds forregarding the transaction value asunacceptable. Where necessary, thecircumstances surrounding the sale shall beexamined and the transaction value shall beaccepted provided that the relationship did notinfluence the price. If, in the light ofinformation provided by the declarant orotherwise, the customs authorities havegrounds for considering that the relationshipinfluenced the price, they shall communicatetheir grounds to the declarant and he shall begiven a reasonable opportunity to respond. Ifthe declarant so requests, the communicationof the grounds shall be notified in writing;b) In a sale between related persons, thetransaction value shall be accepted and thegoods valued in accordance with paragraph 1wherever the declarant demonstrates that suchvalue closely approximates to one of thefollowing occurring at or about the same time:i) the transaction value in sales, betweenbuyers and sellers who are not relatedin any case, of identical or similargoods for export to the Republic ofAlbania,ii) the customs value of identical orsimilar goods, as determined underArticle 35 (2) (c);iii) the customs value of identical orsimilar goods, as determined underArticle 35 (2) (d).In applying the foregoing criteria, due accountshall be taken of demonstrated differences incommercial levels, quantity levels, theelements enumerated in Article 37 and costsincurred by the seller in sales in which he andthe buyer are not related and where such costsare not incurred by the seller in sales in whichhe and the buyer are related.c) The criteria set forth in subparagraph (b) are tobe used at the initiative of the declarant andonly for comparison purposes. Substitutevalues may not be established in the meaningof the said subparagraph.3.a) The price actually paid or payable is the totalpayment made or to be made by the buyer toor for the benefit of the seller for theimported goods and includes all paymentsmade or to be made as a condition of sale of\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniathe imported goods by the buyer to the selleror by the buyer to a third party to satisfy anobligation of the seller. The payment neednot necessarily take the form of a transfer ofmoney. Payment may be made by way ofletters of credit or any negotiable instrumentand may be made directly or indirectly.b) Activities, including marketing activities,undertaken by the buyer on his own account,other than those for which an adjustment isprovided in Article 37, are not considered tobe an indirect payment to the seller, eventhough they might be regarded as of benefitto the seller or have been undertaken byagreement with the seller, and their cost shallnot be added to the price actually paid orpayable in determining the customs value ofimported goods.Article 35(Alternative methods)1. Where the customs value may not bedetermined under Article 34, it is to bedetermined by proceeding sequentially throughsubparagraphs (a), (b), (c) and (d) of paragraph2 to the first subparagraph under which it maybe determined, subject to the provisions thatthe order of application of subparagraphs (c)and (d) shall be reversed if the declarant sorequests; it is only when such value may not bedetermined under a particular subparagraphthat the provisions of the next subparagraph ina sequence established by virtue of thisparagraph may be applied.2. The customs value determined under thisArticle shall be:a) the transaction value of identical goodssold for export to the Republic ofAlbania and exported at or about thesame time as the goods being valued;b) the transaction value of similar goodssold for export to the Republic ofAlbania and exported at or about thesame time as the goods being valued;c) the value based on the unit price atwhich the imported goods for identicalor similar imported goods are soldwithin the Republic of Albania in thegreatest aggregate quantity to personsnot related to the sellers;d) the computed value, consisting of thesum of:i) the cost or value of materials andfabrication or other processingemployed in producing theimported goods,ii) an amount for profit and generalexpenses equal to that usuallyreflected in sales of goods of thesame class or kind as the goodsbeing valued which are made byproducers in the country ofexportation for export to theRepublic of Albania,iii) the cost or value of the itemsreferred to in Article 37 (1) (e).3. Any further conditions and rules for theapplication of paragraph 2 above shall bedetermined in the Implementing Provisions ofthis Code.Article 36(Fall-back method)1. Where the customs value of imported goodsmay not be determined under Articles 34 or 35,it shall be determined on the basis of dataavailable in the Republic of Albania, usingreasonable means, in accordance with:a) the agreement for the application ofArticle 7 of the General Agreement onTariffs and Trade;b) Article 7 of the General Agreement onTariffs and Trade;c) dispositions of this Chapter.2. No customs value shall be determined underparagraph 1 based on:a) the selling price in the Republic ofAlbania of goods produced in theRepublic of Albania;b) a system which provides for theacceptance for customs purposes of thehigher of two alternative values;c) the price of goods on the domesticmarket of the country of exportation;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniad) the cost of production, other thancomputed values which have beendetermined for identical or similargoods in accordance with Article 35 (2)(d);e) prices for export to another country ;f) minimum customs values; org) arbitrary or fictitious values.Article 37(Elements to be added)1. In determining the customs value underArticle 34, there shall be added to the priceactually paid or payable for the importedgoods:a) the following, to the extent that they areincurred by the buyer but are notincluded in the price actually paid orpayable for the goods:i) commissions and brokerage, exceptthe buying commissions,ii) the cost of containers which is treatedas being one, for customs purposes,with the goods in question,iii) the cost of packing, whether for laboror materials;b) the value apportioned as appropriate, ofthe following goods and services wheresupplied directly or indirectly by thebuyer free of charge or at reduced costfor use in connection with the productionand sale for export of the importedgoods, to the extent that such value hasnot been included in the price actuallypaid or payable:i) materials, components, parts andsimilar items incorporated in theimported goods,ii) tools, dies, molds and similar itemsused in the production of the importedgoods,iii) materials consumed in the productionof the imported goods,iv) engineering work, development,artwork, design work, and plans andsketches undertaken elsewhere than inthe Republic of Albania and necessaryfor the production of the importedgoods;c) royalties and license fees related to thegoods being valued that the buyer mustpay, either directly or indirectly, as acondition of sale of the goods beingvalued to the extent that such royaltiesand fees are not included in the priceactually paid or payable;d) the value of any part of the proceedsof any subsequent resale, disposal oruse of the imported goods that accruesdirectly or indirectly to the seller;e) to the place of introduction into thecustoms territory of the Republic ofAlbania:(i) the cost of transport and insuranceof the imported goods, and(ii) loading and handling chargesassociated with the transport of theimported goods,2. Additions to the price actually paid orpayable shall be made under this Article onlybased on objective and quantifiable data.2/1 No additions shall be made to the priceactually paid or payable in determining thecustoms value except as provided in thisArticle.3. For the purpose of this Chapter, the term‘buying commission’ means fees paid byan importer4. to his agent for the service of representinghim in the purchase of the goods beingvalued.4. Notwithstanding, paragraph 1 (c):a) charges for the right to reproduce theimported goods in the Republic ofAlbania shall not be added to the priceactually paid or payable for theimported goods in determining thecustoms value, andb) payments made by the buyer for theright to distribute or resell the importedgoods shall not be added to the price\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

actually paid or payable for theimported goods, if such payments arenot a condition of the sale for export tothe Republic of Albania of the goods.Article 38(Element to be deducted)Provided that they are shown separately fromthe price actually paid or payable for theimported goods, the following shall not beincluded in the customs value:a) charges for the transport of goods aftertheir arrival at the place of introductioninto the customs territory of the Republicof Albania;b) charges for construction, erection,assembly, maintenance or technicalassistance, undertaken after importationof imported goods such as industrialplant, machinery or equipment;c) charges for interest under a financingarrangement entered into by the buyerand relating to the purchase of importedgoods, irrespective of whether thefinance is provided by the seller oranother person, provided that thefinancing arrangement has been made inwriting and where required, the buyermay demonstrate that:i. such goods are actually sold at theprice declared as the price actuallypaid or payable, andii. the claimed rate of interest does notexceed the level for such transactionsprevailing in the country, where, andat the time when, the finance wasprovided;d) charges for the right to reproduceimported goods in the Republic ofAlbania;e) buying commissions;f) import duties or other charges payable inthe Republic of Albania because of theimportation or sale of the goods.Article 39Customs Code of Republic of AlbaniaTITLE III(Customs value of information carrier media)Specific rules to determine the customs valueof carrier media for use in data processingequipment and bearing data or instructions arelaid down in the Implementing Provisions ofthis Code.Article 40(Determination of exchange rate)1. The provisions of this Chapter shall bewithout prejudice to the specific provisionsregarding the determination of the value forcustoms purposes of goods released for freecirculation after being assigned a differentcustoms-approved treatment or use.2. The customs value of perishable goodsusually delivered on consignment may, at therequest of the declarant, be determined undersimplified rules without being subject to theevaluation criteria established in Articles 34,35, and 36.3. When there is a need to determine thecustoms value of imported goods and it isexpressed in a currency other than AlbanianLek, the following procedure shall be used:a) New exchange rates shall be determinedeach month , with the exceptionmentioned in paragraph 3(d);b) Exchange rates shall be valid from the 6of a month to the 5 of the followingmonth;c) The rate of exchange to be used shall bethe exchange rate published by the Bankof Albania on the last working day of themonth before the period mentioned inparagraph 3(b);d) Where a rate of exchange published bythe Bank of Albania differs by 5% ormore from the rate decided in accordancewith paragraph 3(c) for use inaccordance with paragraph 3(b), it shallreplace the latter rate and enter into usefrom the second working day followingits publication as the rate to be used forthe application of Article 27 for the restof that period.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of AlbaniaPROVISIONS APPLICABLE TO GOODS IN ENTRY AND EXIT FROM THECUSTOMS TERRITORY OF THE REPUBLIC OF ALBANIA UNTIL THEY AREASSIGNED A CUSTOMS-APPROVED TREATMENT OR USECHAPTER 1ENTRY AND EXIT OF GOODS FROM THECUSTOMS TERRITORY OF THEREPUBLIC OF ALBANIAArticle 41(Entry of goods)1. “ Moment of entry or exit” is considered themoment when the goods, regardless of the wayit is transported, cross the state border of theRepublic of Albania to enter or leave thecustoms territory.2. “Manifest of goods” is considered thedocument accompanying the goods entering orleaving the customs territory of the Republic ofAlbania by air, sea, rivers, or lakes. Such adocument should contain informationregarding the nationality, flag, and crew of themeans of transport, as well as all theinformation necessary for the identification ofthe cargo, as provided for in the ImplementingProvisions of this Code.3. Goods brought into the customs territory ofthe Republic of Albania shall, from the time oftheir entry, be subject to the customssupervision. They may be subject to control bythe customs authorities.4. They shall remain under such supervisionfor as long as necessary to determine theircustoms status, if appropriate, and in the caseof non-Albanian goods and without prejudiceto Article 105 (1), until their customs status ischanged, or they enter a free zone or freewarehouse or they are re-exported, ordestroyed or abandoned to the exchequer.Article 42(Conveyance of goods to customs offices)1. Goods brought into the customs territory ofthe Republic of Albania shall be conveyed bythe person bringing them into the Republic ofAlbania without delay, by the route specifiedby the customs authorities and in accordancewith their instructions, if any:a) to the customs office designated by thecustoms authorities or to any other placedesignated or approved by thoseauthorities; or,b) to a free zone, if the goods are to bebrought into that free zone direct by sea,air, or land.2. Any person who undertakes theresponsibility for the carriage of goods afterthey have been brought into the customsterritory of the Republic of Albania, amongother things as a result of transshipment, shallbecome responsible for compliance with theobligations laid down in paragraph 1.3. Paragraph 1(a) shall not precludeimplementation of any provisions in force withrespect to tourist traffic, frontier traffic, postaltraffic or traffic of negligible economicimportance, on condition that customssupervision and customs control possibilitiesare not thereby jeopardized.4. Without prejudice to the implementation ofthe rules in force regarding the protection ofthe interests of the Republic of Albania,paragraph 1 shall not apply to goods on boardof vessels or aircraft crossing the territorial seaor airspace of the Republic of Albania withouthaving as their destination a port or airportsituated in the Republic of Albania. In anycase, the customs authorities may takemeasures to carry out all the necessary controlsfor ensuring that the goods transported by thesaid means of transport, are not presentedillegally in the customs territory of theRepublic of Albania.Article 43(Obstacles and delays)1. Where, by reason of unforeseeablecircumstances or force majeure, the obligationlaid down in Article 42 (1) cannot be compliedwith, the person bound by that obligation or\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaany other person acting in his name shallinform the customs authority of the situationwithout delay. Where the unforeseeablecircumstances or force majeure do not result intotal loss of the goods, the customs authoritiesshall also be informed of precise location ofgoods.2. Where by reason of unforeseeablecircumstances or force majeure, a vessel oraircraft covered by Article 42 (4) is forced toput into port or land temporarily in the customsterritory of the Republic of Albania and theobligation laid down in Article 42 (1) cannotbe complied with, the person bringing thevessel or aircraft into the customs territory ofthe Republic of Albania or any other personacting in his name shall inform the customsauthorities of the situation without delay.3. The customs authorities shall determine themeasures to be taken in order to permitcustoms supervision of the goods referred to inparagraph 1 as well as those on board a vesselor aircraft in the circumstances specified inparagraph 2 and to ensure, where appropriate,that they are subsequently conveyed to acustoms office or other place designated orapproved by the customs authorities.CHAPTER 2SPECIAL PROVISIONS APPLICABLE TOGOODS BROUGHT INTO OR LEAVINGTHE CUSTOMS TERRITORY OF THEREPUBLIC OF ALBANIA CONSIGNED BYAIR, SEA OR RAIL AND PASSENGERAND POSTAL TRAFFIC.A. General ProvisionsArticle 441. Where goods are brought into the customsterritory of the Republic of Albania from aforeign country by sea, rail or air, and areconsigned under cover of a single transportdocument by the same mode of transport,without transshipment, to another port orairport in the Republic of Albania, they shallbe presented at customs, within the meaning ofArticle 65 of this Code, only at the port orairport where they are unloaded ortransshipped.2. Specific provisions regarding customscontrol, supervision and formalities to becarried out at the moment of entry and exit forgoods brought into or leaving the customsterritory of the Republic of Albania are laiddown in the Implementing Provisions of thisCode.B. Air TrafficArticle 451. Aircraft, entering the airspace of theRepublic of Albania may fly in airwaysdesignated by the authority for internationaltraffic, and may land and take off frominternational airports approved for air trafficwith foreign countries.2. The commander of aircraft, before leavingan airport authorized for services as referred toin paragraph 1, should present at the competentcustoms office the manifest of goods regardingall goods leaving the Albanian customsterritory. The customs authorities may carryout all the necessary controls to verify that thegoods indicated in the manifest are effectivelyloaded on the aircraft.Article 461. Aircraft, aircraft and cabin crew, crewluggage, passengers, passenger baggage, andtransported goods shall be subject to customssupervision at the first airport of arrival in theRepublic of Albania.2. Airports authorized for international trafficshall be subject to customs supervision.3. Captain of aircraft or an authorized personby him shall lodge a manifest on all goodsbeing carried, with the customs office as soonas the aircraft lands at an authorized airport.4. Aircraft shall refrain from throwing goodswhilst flying.Article 47(Exemption from the obligation to present themanifest)The following need not present a manifest atthe customs authorities:\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaa) aircraft flying from one airport to anotherin the Republic of Albania without anystops at an airport outside the republic ofAlbania on condition that such means donot transport goods subject to thecustoms control and surveillance;b) military aircraft;c) private aircraft for personal use whensuch means does not carry goods subjectto customs control and surveillance.Article 48(The extension of control)The customs authorities of arrival shall carryout customs supervision of the aircraftimmediately on landing and conduct anycontrols and formalities applicable to:a) the cabin and baggage of the crew;b) passengers baggage and hand luggage.Article 49(The control of aircraft departing)Customs supervision and control of an aircraft,crew, cabin crew, passengers and theirluggage, and goods departing to a destinationoutside the territory of the Republic of Albaniashall be carried out at the airport authorized forinternational departures.Article 50(The emergency landing)If, in cases of emergency or force majeure, anaircraft has to land at an airport not authorizedfor receiving international air traffic, thecaptain of the aircraft shall inform the nearestcustoms authority which shall place theaircraft, crew, passengers and goods undercustoms control and supervision.C. Maritime and Water TrafficArticle 51(Places to encore)1. Vessels carrying goods brought into thecustoms territory of the Republic of Albaniamay only call ports approved for internationaltraffic.2. In cases of emergency or force majeure,vessels referred to in paragraph 1 of thisArticle may also call at other points where thecaptain of the vessel shall inform the nearestcustoms office or the nearest governmentauthority, which shall report immediately tothe nearest customs authority.Article 52(The manifest of goods)1. Vessels carrying goods brought into orleaving the customs territory of the Republic ofAlbania and sailing in the customs border zoneat sea, on navigable lakes or rivers shall carry amanifest of goods referred to in Article 41(2),unless provided otherwise.2. Another document or collection ofdocuments containing the informationprescribed for the manifest may be accepted asa manifest according to the ImplementingProvisions of this Code.3. The following vessels need not carry amanifest:a) vessels used for scientific purposes;b) fishing vessels used only for fishing;c) sports vessels and private boats oncondition that they do not transport goodssubject to customs control. .Article 53(Customs surveillance)1. Customs surveillance starts immediatelyafter the vessel is anchored, arrives at the roadstead or harbor until the moment when thegoods are unloaded from the vessel andassigned a customs approved treatment or use.2. Customs authorities may carry out all thenecessary controls on board of the vesselimmediately after the police andphytosanitarian inspection.Article 54\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania(The lodgment of manifest)Within 24 hours from the arrival of the vesselat the road stead or harbor the of captain of thevessel should present at the customs authoritiesthe manifest of goods according to theprocedures laid down in the ImplementingProvisions of this Code.Article 55(Transshipment of goods)1. Transshipment of goods from one vessel toanother shall be approved by the customsauthorities and shall be carried out undercustoms supervision.2. In cases of unforeseeable circumstances,goods may be transshipped from one vessel toanother without the approval of the customsauthorities. In such cases, the captain of thevessel should request from the competentseaport or harbor authority a report as to thereasons for the transshipment. This documentis presented immediately to the competentcustoms authorities.3. The competent customs authorities thatreceive the report will make sure that there areno customs violations involved. In that case,they will take the appropriate decisionsaccording to what is provided for in Title VIIIof the Code.Article 56(Movement via lakes and rivers)Vessels bringing or sending away goods fromthe customs territory of the Republic ofAlbania via lakes and rivers may arrive ordepart only from points authorized by thecustoms authorities. These vessels are subjectof the same formalities referred to in Articles51 to 55 of this Code.Article 57(Exemption from customs control)Foreign vessels in transit which call at anAlbanian lake or river port to take fuel, food,or other supplies, but not to take on or unloadcargo, are exempt from customs inspection andshall only be placed under customssupervision.Article 581. Albanian vessels in scheduled servicebetween two border customs zones within theAlbanian customs territory, authorized fortransport of goods and passengers, do not needpresent a manifest of goods provided for thatthey are not subject of customs control andsurveillance.2. In any case, the customs authorities maycarry out in the customs areas of surveillanceall the necessary controls to verify eventualviolations of the dispositions of this Code andits Implementing Provisions.D. Rail TrafficArticle 591. The railway company, which accepts toenter the goods, transported by railway in thecustoms territory of the Republic of Albania;accompanied by a consignment note shall bethe responsible body for customs formalities.2. The railway company shall make all therecords held at the accounting offices availableto the Customs Administration, related totransported goods.3. In the transport of passengers by railway,the customs authorities will carry out all thecontrols in the land railway border crossingpoints on the passengers and their luggage, aswell as in the conducting cabins, personnel,and their luggage.E. Postal GoodsArticle 601. All mail containing consignments forcommercial purposes as well as mailcontaining consignments of an aggregatevalue, for each consignment exceeding thethreshold laid down by the provisions in forceissued by the Minister of Finance, are subjectto a customs declaration.2. Postal goods shall be accepted anddelivered between a foreign post office and theAlbanian post office under customssupervision. In case of quickenedconsignments, the Director General of\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of AlbaniaCustoms may authorize immediate release ofgoods towards a guarantee and lodging of theappropriate general and periodical customsdeclaration, according to the form determinedby the Director General of Customs.3. The exchange post office shall forward allmail shipments containing goods brought inthe customs territory of the Republic ofAlbania under customs supervision, to the postoffice approved by the customs authorities, forall the necessary controls.4. Postal shipments shall remain undercustoms supervision while customs formalitiesare completed in the post office.Article 61(Exemption from obligation to declare)The following postal consignments shall beconsidered to have been declared:a) postcards and letters containing personalmessages only;b) printed matter not liable for importduties;c) braille letters; andd) all other consignments sent by letter orparcel post, which are exempt from theobligation to be conveyed to customs inaccordance with the provisions pursuantto Article, 42 (3) of this code.Article 62The customs authorities shall prescribe, inconformity with this Code the conditions,restrictions and the manner under which themeasures of customs supervision may beconducted on postal shipments sent abroad andsubject to control by those authorities.F. Passenger TrafficArticle 63(Definitions)For the purposes of this Chapter, “passenger”means:A. on entry:1. any person temporarily entering thecustoms territory of the Republic ofAlbania, and not normally residentthere, and2. any person returning to the customsterritory of the Republic of Albaniawhere he is normally resident, afterhaving been temporarily in a foreigncountry;B. on exit1. any person temporarily leaving thecustoms territory of the Republic ofAlbania where he is normally resident,and2. any person leaving the customsterritory of the Republic of Albaniaafter a temporary stay, not normallyresident there.Article 64(Control of luggage and exemptions)1. While entering or leaving the Republic ofAlbania, the passenger shall declare and, at thecustoms authority’s request, show all goodsbeing carried.2. In order to check the declaration referred toin paragraph 1 of this article, the customsauthority may, if necessary, control the goodscarried by the passenger.3. Goods carried by diplomatic couriers basedon a diplomatic courier’s letter shall not besubject to customs control. Customs controlwill not be performed also for members of theParliament as well as any other person, towhom by law is given special status, theirluggage, and the mail addressed to them.CHAPTER 3PRESENTATION OF GOODS TOCUSTOMSArticle 65(Deadlines for presentation of goods)Goods which pursuant to Article 42 (1) (a),arrive at the customs office or other placedesignated or approved by the customsauthorities shall be presented to customs by theperson who brought the goods into the customsterritory of the Republic of Albania or, ifappropriate, by the person who assumesresponsibility for carriage of the goodsfollowing such entry:i. when transported by sea within twohours from the arrival, andii. when transported otherwise than by seawithin one hour from the arrival.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of AlbaniaArticle 66(Article 65 shall not preclude theimplementation of rules in force related togoods carried by travelers.Article 67(Examination of goods and how to takesamples)Goods may, once they have been presented tocustoms, and with the permission of thecustoms authorities, be examined or samplesmay be taken, in order that they may beassigned a customs-approved treatment or use.Such permission shall be granted, on request inwriting, to the person authorized to assign thegoods such treatment or use.CHAPTER 4SUMMARY DECLARATION ANDUNLOADING OF GOODS PRESENTED ATCUSTOMSArticle 68(The deadline for the lodgment of summarydeclaration)1. Subject to Article 70, goods presented tocustoms within the meaning of Article 65 shallbe covered by a summary declaration thatshould be lodged:i. when transported by sea, within twohours from the presentation of goods atthe customs, andii. when transported otherwise then bysea, within one hour after thepresentation of goods at customs.2. The summary declaration shall be lodgedwith the customs authorities, within the timelimit determined in paragraph 1(i) and (ii). Thecustoms authorities may, however, allow aperiod for lodging the declaration, which shallnot extend beyond the first working dayfollowing the day on which the goods arepresented at customs.Article 69(The form and the person who lodges thesummary declaration)1. The summary declaration shall be made inthe form corresponding to the modelprescribed by the customs authorities.However, the customs authorities may permitthe use, as a summary declaration, of anycommercial or official document, whichcontains the particulars necessary foridentification of the goods, as provided for inthe Implementing Provisions of this Code. .2. The summary declaration shall be lodgedby:a) the person who brought the goods intothe customs territory of the Republic ofAlbania or by any person who assumesresponsibility for carriage of the goodsfollowing such entry; orb) the person in whose name the personsreferred to in subparagraph (a) acted.Article 70(Exemption from the obligation to lodge thesummary declaration)Without prejudice to the provisions governinggoods imported by travelers and consignmentsby letter and parcel post, the customsauthorities may waive the lodging of asummary declaration on condition that thisdoes not jeopardize customs supervision of thegoods, where, prior to the expire of the periodreferred to in Article 68, the formalitiesnecessary for the goods to be assigned acustoms-approved treatment or use are carriedout.Article 71(The customs control of goods and means oftransport)1. Goods shall be unloaded or transshippedfrom the means of transport carrying themsolely with the permission of the customsauthorities in places designated or approved bythose customs authorities. However, suchpermission shall not be required in case of theimminent danger necessitating the immediateunloading of all or part of the goods. In thatcase, the customs authorities shall be informedaccordingly forthwith.2. For the purpose of inspecting goods and themeans of transport carrying them, the customsauthorities may at any time require goods to beunloaded and unpacked.3. When customs authorities have suspicionsthat a customs violation has been committedthey are allowed to verify the means oftransport and the goods introduced in the\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniacustoms territory of the Republic of Albania,even before the summary declaration is lodged.The person who introduced the goods, theperson who assumes responsibility for thecarriage of goods following such entry or thedeclarant shall be entitled to be present whilstthe goods are examined. The customsauthorities shall notify their intention toproceed with the examination to the personconcerned. If within two hours the said persondoes not declare his will to be present duringthe examination the customs authorities shallproceed without his presence.Article 72Goods shall not be removed from their originalposition without the permission of the customsauthorities.CHAPTER 5OBLIGATION TO ASSIGN GOODSPRESENTED TO CUSTOMS A CUSTOMS-APPROVED TREATMENT OR USEArticle 73(Obligation to assign goods a customsapproved treatment or use)Non-Albanian goods presented at customsshall be assigned a customs-approvedtreatment or use authorized for such non-Albanian goods.Article 74(The deadline for the assignment)1. Where goods are covered by a summarydeclaration, the formalities necessary for themto be assigned a customs-approved treatmentor use must be carried out within the followingtime limits:a) 10 days from the date on which thesummary declaration is lodged in thecase of goods carried by sea;b) 5 days from the date on which thesummary declaration is lodged in thecase of goods carried otherwise than bysea.2. Where circumstances so warrant thecustoms authorities may set a shorter period orauthorize an extension of the periods referredto in paragraph 1. Such extension shall not,however, exceed the genuine requirements,which are justified by the circumstances.CHAPTER 6TEMPORARY STORAGE OF GOODSArticle 75(The meaning of temporary storage of goods)Until they are assigned a customs-approvedtreatment or use, goods presented to customsshall, following such presentation, have thestatus of goods in temporary storage. Suchgoods shall hereinafter be described as “goodsin temporary storage."Article 76(The places for the temporary storage andsecurity)1. Goods in temporary storage shall be storedin customs areas or any other places approvedby the customs authorities, where they arestored within the time limit provided for inArticle 74.2. The customs authorities may require theperson holding the goods to provide securitywith a view to ensuring payment of anycustoms debt on importation which may ariseunder Articles 218 or 219.Article 77(Allowed handling)Without prejudice to the provisions of Article67, goods in temporary storage shall be subjectonly to such forms of handling as are designedto ensure their preservation in an unalteredstate without modifying their appearance ortechnical characteristics.Article 78(Regularization of situation)1. The customs authorities shall without delaytake all measures necessary, including the saleof the goods, to regularize the situation ofgoods in respect of which the formalitiesnecessary for them to be assigned a customsapprovedtreatment or use are not initiatedwithin the periods determined in accordancewith Article 74.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania2. The customs authorities may, at the risk andexpense of the person holding them, have thegoods in question transferred to a specialplace, which is under their supervision, untilthe situation of the goods is regularized.CHAPTER 7PROVISIONS APPLICABLE TO NON-ALBANIAN GOODS WHICH HAVEMOVED UNDER A TRANSIT PROCEDUREArticle 79Article 42, with the exception of paragraph1(a) thereof, and Articles 43 and 65 to 78, shallnot apply when goods already placed under atransit procedure are brought into the customsterritory of the Republic of Albania.Article 80Once non-Albanian goods which have movedunder a transit procedure reach theirdestination in the customs territory of theRepublic of Albania and have been presentedto customs in accordance with the rulesgoverning transit, Articles 68 to 78 shall apply.CHAPTER 8OTHER PROVISIONSArticle 81(The destruction of goods)Where the circumstances so require, in cases ofdanger for the life or health of humans orpollution, the customs authorities may havegoods presented to customs destroyed. Thecustoms authorities shall inform the holder ofthe goods accordingly. The costs of destroyingthe goods shall be borne by the holder.Article 82(Limitations and prohibitions)1. Where customs authorities find that goodshave been brought unauthorized into thecustoms territory of the Republic of Albania orhave been withheld from customs surveillance,they shall take any measures necessary,including sale of the goods, in order toregularize their situation, besides theimplementation of the sanctions referred to inPart VIII of this Code.2. Once the Albanian goods that circulateunder transit procedure reach their destinationin the customs territory of the Republic ofAlbania irregularly, or having withheld fromcustoms surveillance, the customs authorities,besides the implementation of the sanctionsreferred to in Part VIII of this Code, take allthe measures necessary, sale of goodsincluded, in order to regulate their status.3. The Council of Ministers may decide onany restriction or licensing of imports orexports or transit of specific goods, which isdeemed necessary by reason of protection ofpublic or economic interest.4. The customs authorities upon request of theholder of a trademark or patent of productionor other neighboring rights specified in theImplementing Provisions of this Code, mayprohibit their release in free circulation, theexportation, the re exportation and theirplacing under the suspensive procedure of thegoods that are recognized to be counterfeitedor pirated goods, according to the procedureprovided for in the Implementing Provisions ofthis Code.TITLE IVCUSTOMS-APPROVED TREATMENT OR USECHAPTER 1GENERAL PROVISIONSArticle 831. Save in the cases when the Council ofMinisters makes a decision otherwiseprovided, goods may at any time and under theconditions laid down, be assigned anycustoms-approved treatment or use irrespective\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaof their nature or quantity, or their country oforigin, or destination.2. Paragraph 1 does not preclude theimposition of prohibitions, upon decision ofthe Council of Ministers, or restrictionsjustified on grounds of public morality, publicpolicy or public security, the protection ofhealth and life of humans, animals or plants,the protection of national treasures possessingartistic, historic or archaeological value o r theprotection of industrial and commercialproperty.CHAPTER 2CUSTOMS PROCEDURESSection 1Placing of goods under a customs procedureArticle 841. All goods intended to be placed under acustoms procedure shall be covered by adeclaration for that customs procedure, withinthe time limit determined in Article 74.2. Albanian goods declared for an export,outward processing, transit or customswarehousing procedure shall be subject tocustoms supervision from the time ofacceptance of the customs declaration untilsuch time as they leave the customs territory ofthe Republic of Albania or are destroyed or thecustoms declaration is invalidated.Article 85Specific rules are included in the ImplementingProvisions of this Code or provisions enactedby the Minister of Finance upon the proposalof the Director General of Customs, whichdetermine the competence of customsauthorities and of various customs offices,taking account of the nature of the goods andthe customs procedure under which they are tobe placed.Article 86The customs declaration shall be made:a) in writing ; orb) using data-processing techniques whereprovided for by other provisions laiddown; orc) by an oral declaration, or any other actby which the person responsible for thegoods expresses his will to place goodsunder a Customs regime in case thispossibility is provided for in theImplementing Provisions of this Code.A. Declaration in writingArticle 871. Declarations in writing shall be made on aform corresponding to the official specimenprescribed for that purpose. They shall besigned and contain all the particulars necessaryfor implementation of the provisions governingthe customs procedure for which the goods aredeclared.2. The declaration shall be accompanied by allthe documents required for implementation ofthe provisions governing the customsprocedure for which the goods are declared.Article 88Declarations, which comply with theconditions, laid down in Article 87 shall beaccepted by the customs authoritiesimmediately, provided that the goods to whichthey refer are presented to customs.Article 891. Without prejudice to Article 17, a customsdeclaration may be made by any person who isable to present the goods in question or to havethem presented to the competent customsauthority, together with all the documentswhich are required to be produced for theapplication of the rules governing the customsprocedure in respect of which the goods weredeclared.2. However,a) where acceptance of a customsdeclaration imposes particularobligations on a specific person, thedeclaration must be made by that personhimself or the person who acts on hisbehalf;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniab) the declarant must be established in theRepublic of Albania. However, theconditions regarding establishment in theRepublic of Albania shall not apply topersons who make a declaration fortransit through the customs territory ofthe Republic of Albania, having asdestination a third country, or maketemporary importation declarations.3. Paragraph 2 (b) shall not preclude theapplication by the Republic of Albania ofbilateral agreements concluded with anothercountry or with group of countries, underwhich citizens of such countries may makecustoms declarations in the customs territory ofthe Republic of Albania.Article 901. The declarant shall, at his request, beauthorized to amend one or more of theparticulars of the declaration after it has beenaccepted by customs. The amendment shall nothave the effect of rendering the declarationapplicable to goods other than those originallycovered.2. However, no amendment shall be permittedwhere authorization is requested after thecustoms authorities:a) have informed the declarant that theyintend to examine the goods; or,b) have established that the particulars inquestion are incorrect; or,c) have released the goods.Article 911. The customs authorities shall, at the requestof the declarant, invalidate a declarationalready accepted where the declarant providesproof that goods were declared in error for thecustoms procedure covered by that declarationor that, as a result of special circumstances, theplacing of the goods under the customsprocedure for which they were declared is nolonger justified. Nevertheless, where thecustoms authorities have informed thedeclarant of their intention to examine thegoods, a request for invalidation of thedeclaration shall not be accepted until after theexamination has taken place.2. The declaration shall not be invalidatedafter the goods have been released, except asotherwise provided in the ImplementingProvisions of this Code.3. Invalidation of the declaration shall bewithout prejudice to the application of theprovisions provided for in Part VIII of thisCode.Article 92Save as otherwise expressly provided, the dateto be used for the purposes of all the provisionsgoverning the customs procedure for which thegoods are declared shall be the date ofacceptance of the declaration by the customsauthorities.Article 93For the verification of the declarations, whichthey have accepted, the customs authoritiesmay:a) examine the documents covering thedeclaration and the documentsaccompanying it. The customsauthorities may require the declarant topresent other documents for the purposeof verifying the accuracy of theparticulars contained in the declaration;b) examine the goods and take samples foranalysis or for detailed examination.Article 941. Transport of the goods to the places wherethey are to be examined and samples are to betaken, and all the handling necessitated bysuch examination or taking of samples, shall becarried out by or under the responsibility of thedeclarant. The costs incurred shall be borne bythe declarant.2. The declarant shall be entitled to be presentwhen the goods are examined and whensamples are taken. Where they deem itappropriate, the customs authorities shallrequire the declarant to be present orrepresented when the goods are examined orsamples are taken in order to provide themwith the assistance necessary to facilitate suchexamination or taking of samples.Article 95\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania1. Where only part of the goods covered by adeclaration are examined, the results of thepartial examination shall be taken to apply toall the goods covered by that declaration.However, the declarant may request a furtherexamination of the goods if he considers thatthe results of the partial examination are notvalid as regards the remainder of the goodsdeclared.2. For the purposes of paragraph 1, where adeclaration form covers two or more items, theparticulars relating to each item shall bedeemed to constitute a separate declaration.Article 96The results of verifying the declaration shall beused for the purposes of applying theprovisions governing the customs procedureunder which the goods are placed.Article 971. The customs authorities shall take themeasures necessary to identify the goodswhere identification is required in order toensure compliance with the conditionsgoverning the customs procedure for which thesaid goods have been declared.2. Means of identification affixed to the goodsor means of transport shall be removed ordestroyed only by the customs authorities orwith their permission unless, as a result ofunforeseeable circumstances or force majeure,their removal or destruction is essential toensure the protection of the goods or means oftransport.Article 981. Without prejudice to Article 99, where theconditions for placing the goods under theprocedure in question are fulfilled andprovided that the goods are not subject to anyprohibitive or restrictive measures, the customsauthorities shall release the goods as soon asthe particulars in the declaration have beenverified.2. All the goods covered by the samedeclaration shall be released at the same time.For the purposes of this paragraph, where adeclaration form covers two or more items, theparticulars relating to each item shall bedeemed to constitute a separate declaration.Article 991. Where acceptance of a customs declarationgives rise to a customs debt, the goods coveredby the declaration shall not be released unlessthe customs debt has been paid or secured.However, without prejudice to paragraph 2,this provision shall not apply to the temporaryimportation procedure with partial relief fromimport duties.2. Where, pursuant to the provisionsgoverning the customs procedure for which thegoods are declared, the customs authoritiesrequire the provision of a security, the saidgoods shall not be released for the customsprocedure in question until such security isprovided.Article 100Customs authorities take any necessarymeasures, including confiscation and sale,shall be taken to deal with goods which:a) may not be released because:i) it has not been possible to undertake orcontinue examination of the goodswithin the period prescribed by thecustoms authorities for reasonsattributable to the declarant; or,ii) the documents which must be producedbefore the goods may be placed underthe customs procedure requested havenot been produced; or,iii) payments or security which shouldhave been made or provided in respectof import duties or export duties, as thecase may be, have not been made orprovided within the period prescribed;or,iv) they are subject to bans or restrictions;b) are not removed within 10 days from theirrelease.B. Other declarationsArticle 101\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of AlbaniaWhere the customs declaration is made bymeans of a data-processing technique withinthe meaning of Article 86 (b), or by any otheract within the meaning of Article 86 (c),Articles 87 to 100 shall apply mutatis mutandiswithout prejudice to the principles set outtherein.C. Post-Clearance Examination ofDeclarationsArticle 1021. The customs authorities may, on their owninitiative or at the request of the declarant,amend the declaration after release of thegoods.2. The customs authorities may, after releasingthe goods and in order to satisfy themselves asto the accuracy of the particulars contained inthe declaration, inspect the commercialdocuments and data relating to the import orexport operations in respect of the goodsconcerned or to subsequent commercialoperations involving those goods. Suchinspections may be carried out at the premisesof the declarant, of any other person directly orindirectly involved in the said operations in abusiness capacity or of any other person inpossession of the said document and data forbusiness purposes. Those authorities may alsoexamine the goods where it is still possible forthem to be produced.3. Where revision of the declaration or postclearanceexamination indicates that theprovisions governing the customs procedureconcerned have been applied on the basis ofincorrect or incomplete information, thecustoms authorities, besides theimplementation of the sanctions provided forin Part VIII of this Code, in accordance withany provisions laid down, take the measuresnecessary to regularize the situation, takingaccount of the new information available tothem.Section 2Release for free circulationArticle 1031. Release for free circulation shall confer onnon-Albanian goods the customs status ofAlbanian goods.2. It shall entail application of commercialpolicy measures; completion of the otherformalities laid down in respect of theimportation of goods and the charging of anyimport duties.Article 104Where a consignment is made up of goodsfalling within different tariff classifications,and dealing with each of those goods inaccordance with its tariff classification for thepurpose of drawing up the declaration wouldentail a burden of work and expensedisproportionate to the import dutieschargeable, the customs authorities may, at therequest of the declarant, agree that importduties be charged on the whole consignmenton the basis of the tariff classification of thegoods which are subject to the highest rate ofimport duty.Article 1051. Where goods are released for freecirculation at a reduced or zero rate of dutybecause of their end-use, they shall remainunder customs supervision. This Customssupervision shall end when the conditions laiddown for granting such a reduced or zero rateof duty cease to apply, where the goods areexported or destroyed, or where the use of thegoods for the purposes other than those laiddown for the application of the reduced or zerorate of duty is permitted subject to payment ofthe duties due.2. Articles 111 and 113 shall apply mutatismutandis to the goods referred to in paragraph1.Article 106Goods released for free circulation shall losetheir customs status as Albanian goods where:a) the declaration for release for freecirculation is invalidated after release ofgoods in accordance with Article 91, orb) the import duties payable on those goodsare repaid or remitted:\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniai) under the inward processingprocedure in the form of the drawback system; orii) in respect of defective goods or goodswhich fail to comply with the terms ofthe contract, pursuant to Article 251;oriii) in situations of the type referred to inArticle 252 where reimbursement orremission is conditional upon thegoods being exported or re-exportedor being assigned an equivalentcustoms-approved treatment or use.Section 3Suspense arrangements and customsprocedures with economic impactA. Provisions Common to Several ProceduresArticle 1071. In Articles 108 to 113:a) where the term ‘suspensive procedure’ isused, it is understood as applying, in thecase of non-Albanian goods, to thefollowing arrangements:i. transit;ii. customs warehousing;iii. inward processing in the form of asystem of suspension;iv. processing under customs control;v. temporary importation;b) where the term ‘customs procedure witheconomic impact’ is used, it isunderstood as applying to the followingarrangements:i. customs warehousing;ii. inward processing;iii. processing under customs control;iv. temporary importation;v. outward processing.2. ‘Import goods’ means goods placed under asuspensive procedure and goods, which, underthe inward processing procedure in the form ofdrawback system, have undergone theformalities for release for free circulation andthe formalities provided for in Article 146.3. ‘Goods in unaltered state’ means importgoods, which, under the inward processingprocedure or the procedures for processingunder customs control, have undergone noform of processing.Article 108The use of any customs procedures witheconomic impact shall be conditional uponauthorization being issued by the customsauthorities.Article 109Without prejudice to the additional specialconditions governing the procedure inquestion, the authorization referred to inArticle 108 and that referred to in Article 123shall be granted only:a) to persons who offer every guaranteenecessary for the proper conduct of theoperations;b) where the customs authorities maysupervise and monitor the procedure.Article 1101. The conditions under which the procedurein question is used shall be set out in theauthorization.2. The holder of the authorization shall notifythe customs authorities of all factors arisingafter the authorization was granted which mayinfluence its continuation or content.Article 1111. The customs authorities may make theplacing of goods under a suspensivearrangement conditional upon the provision ofsecurity in order to ensure that any customsdebt, which may be incurred in respect of thosegoods, will be paid.2. Special provisions, concerning the provisionof security for a specific suspensivearrangement are laid down in theImplementing Provisions of this Code.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of AlbaniaArticle 1121. A suspensive arrangement with economicimpact shall be discharged when a newcustoms-approved treatment or use is assignedeither to the goods placed under thatarrangement or to compensating or processedproducts placed under it.2. The customs authorities shall take all themeasures necessary to regularize the situationof goods in respect of which a procedure hasnot been discharged under the conditionsprescribed.Article 113The rights and obligations of the holder of acustoms procedure with economic impact may,on the conditions laid down by the customsauthorities, be transferred successively to otherpersons who fulfills all necessary conditions inorder to benefit from the procedure in question.B. TransitI. General provisionsArticle 1141. The transit procedure shall allow themovement from one point to another within thecustoms territory of the Republic of Albaniaof:a) non-Albanian goods, without such goodsbeing subject to import duties and othercharges or to commercial policymeasures;b) Albanian goods, which are subject tomeasures involving their export to othercountries and in respect of which thecorresponding customs formalities forexport, have been carried out.2. Movement as referred to in paragraph 1shall take place:a) under the transit procedure; orb) under cover of a TIR carnet (TIRConvention) provided that suchmovement:i) began or is to end outside thecustoms territory of the Republic ofAlbania;ii) relates to consignments of goodswhich must be unloaded in thecustoms territory of the Republic ofAlbania and which are conveyedwith goods to be unloaded in anothercountry; orc) under cover of an ATA carnet (ATAConvention) used as a transit document;ord) by post (including parcel post).3. The transit procedure shall apply withoutprejudice to the specific provisions applicableto the movement of goods placed under acustoms procedure with economic impact.Article 115The transit procedure shall end when the goodsand the corresponding documents are producedat the customs office of destination inaccordance with the provisions of theprocedure in question.II. Specific provisions related to transitArticle 116The transit procedure shall apply to goodspassing through the territory of anothercountry only if:a) provision is made to that effect underan international agreement; orb) carriage of goods through that countryis effected under cover of a singletransport document drawn up in thecustoms territory of the Republic ofAlbania; in such case the operation ofthat procedure shall be suspended in theterritory of the other country.Article 1171. Subject to Article 118, the principal shallprovide a guarantee in order to ensure paymentof any customs debt or other charges, whichmay be incurred in respect of the goods.2. Except in cases to be determined wherenecessary in provisions enacted by theMinister of Finance, no guarantee need befurnished for:a) journeys by sea and air;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniab) the carriage by pipeline;c) operations carried out by public railwaycompanies.Article 1181. Any person satisfying the conditions laiddown in paragraph 2 may, subject to the limitslaid down in paragraph 3, obtain from thecustoms authorities a guarantee waiver fortransit operations carried out by him.2. The guarantee waiver referred to inparagraph 1 shall be granted only to persons:a) who are established in the Republic ofAlbania;b) who are regular users of the transitprocedure;c) whose financial situation is such thatthey can meet their commitments;d) who have not committed anyinfringement of customs or fiscal laws;ande) who, in accordance with the determinedspecimen form, undertake to pay, uponthe first application in writing by thecustoms authorities, any sums claimedin respect of their transit operations.3. The guarantee waiver granted in accordancewith paragraphs 1 and 2 shall not apply totransit operations involving goods:a) of total value exceeding an amountdetermined in accordance with theImplementing Provisions of this Code; orb) which present increased risks because ofthe level of import duties, to which theyare subject in the Republic of Albania.4. The General Directorate of Customs, whichgrants the waiver, shall issue to each personobtaining it one or more copies of a guaranteewaiver certificate.Article 1191. The principal shall be the subject of thetransit procedure. He shall be responsible for:a) presentation of the goods intact at thecustoms office of destination by theprescribed time limit and with dueobservance of the measures adopted bythe customs authorities to ensureidentification;b) observance of the provisions related tothe transit procedure.2. Notwithstanding the principal’s obligationsreferred to in paragraph 1, the carrier orrecipient of goods knowing they are movingunder transit shall also be responsible forpresentation of the goods intact at the customsoffice of destination by the prescribed timelimit and with due observance of the measuresadopted by the customs authorities to ensureidentification.Article 1201. The detailed rules for the operation of thesaid procedure and the respective exemptionsshall be determined in provisions laid down inthe Implementing Provisions of this Code.2. Provided that the implementation ofmeasures applying to goods is guaranteed, theMinister of Finance is entitled to establishsimplified procedures in certain circumstancesfor goods not required to move on the territoryof another country.C. Customs warehousesArticle 1211. The customs warehousing procedure shallallow the storage in a customs warehouses ofthe:a) non-Albanian goods, without such goodsbeing subject to import duties orcommercial policy measures;b) Albanian goods, where legislationgoverning specific fields provides thattheir being placed in a customswarehouse shall attract the application ofmeasures normally attaching to theexport of such goods.2. ‘Customs warehouse’ means any placeapproved by and under the supervision of the\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniacustoms authorities where goods may be storedunder the conditions laid down.3. Cases in which the goods referred to inparagraph 1 may be placed under the customswarehousing procedure without being stored ina customs warehouse shall be determined byspecial provisions enacted by the Minister ofFinance.Article 1221. A customs warehouse may be either apublic warehouse or a private warehouse:a) ‘public warehouse’ means a customswarehouse available for use by anyperson for the warehousing of goods;b) ‘private warehouse’ means a customswarehouse reserved only for thewarehousing of goods by thewarehousekeeper.2. ‘The warehousekeeper’ is the personauthorized by the customs administration tooperate the customs warehouse.3. ‘The depositor’ shall be the person boundby the declaration placing the goods under thecustoms warehousing procedure or to whomthe rights and obligations of such a personhave been transferred.Article 1231. Operation and use of a customs warehouseshall be subject to the issue of an authorizationby the customs authorities, unless the saidauthorities operate the customs warehousethemselves.2. Any person wishing to operate a customswarehouse must make a request in writingcontaining the information required forgranting the authorization, in particulardemonstrating that an economic need forwarehousing exists. The authorization shall laydown the conditions for operating the customswarehouse.3. The authorization shall be issued only topersons established in the Republic of Albania.Article 124The warehouse keeper shall be responsible for:a) ensuring that while the goods are in thecustoms warehouse they are not removedfrom customs supervision;b) fulfilling the obligations that arise fromthe storage of goods covered by thecustoms warehousing procedure; andc) complying with the particular conditionsspecified in the authorization.Article 1251. By way of derogation from Article 124,where the authorization concerns a publicwarehouse, it may provide that theresponsibilities referred to in Article 124 (a)and/or (b) devolve exclusively upon thedepositor.2. The depositor shall at all times beresponsible for fulfilling the obligations arisingfrom the placing of goods under the customswarehousing procedure.Article 126The rights and obligations of awarehousekeeper may, with the agreement ofthe customs authorities, be transferred toanother person.Article 127Without prejudice to Article 111, the customsauthorities may require that thewarehousekeeper provide a guaranteeconcerning the responsibilities specified inArticle 124.Article 1281. The person designated by the customsauthorities shall keep stock records of all thegoods placed under the customs warehousingprocedure in a form approved by thoseauthorities.2. Subject to the application of Article 109, thecustoms authorities may dispense with stockrecords where the responsibilities referred to inArticle 124 (a) and/or (b) lie exclusively withthe depositor and the goods are placed underthat procedure on the basis of a written\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniadeclaration forming part of the normalprocedure.Article 1291. Where an economic need exists andcustoms supervision is not adversely affectedthereby, the customs authorities may allow:a) Albanian goods other than thosereferred to in Article 121 (1) (b) to bestored on the premises of a customswarehouse;b) non-Albanian goods to be processed onthe premises of a customs warehouseunder the inward processing procedure,subject to the conditions provided forby that procedure. The formalitieswhich may be dispensed with in acustoms warehouse shall be determinedin the Implementing Provisions of thisCode;c) non-Albanian goods to be processed onthe premises of a customs warehouseunder the procedure for processingunder customs control, subject to theconditions provided for by thatprocedure. The formalities, which maybe dispensed within a customswarehouse, shall be determined in theImplementing Provisions of this Code.2. In the cases referred to in paragraph 1, thegoods shall not be subject to the customswarehousing procedure.3. The customs authorities may require thegoods referred to in paragraph 1 to be enteredin the stock records provided for in Article128.Article 130Goods placed under the customs warehousingprocedure shall be entered in the stock recordsprovided for in Article 128 as soon as they arebrought into the customs warehouse.Article 1311. The goods may remain under the customswarehousing procedure for a period up totwelve months. The customs authorities, on thedepositor’s request, may accept an extensionup to 12 other months.2. However, where exceptional circumstancesso warrant, the customs authorities may set,within reasonable limits, a shorter time limit bywhich the depositor must assign the goods anew customs-approved treatment or use.Article 1321. Import goods may undergo the usual formsof handling intended to preserve them,improve their appearance or marketablequality, or prepare them for distribution orresale.2. The list of the forms of handling referred toin the above paragraph shall be included in theImplementing Provisions of this Code. TheMinister of Finance is entitled to make anynecessary changes to the list.3. The forms of handling provided for inparagraph 1 must be authorized in advance bythe customs authorities, which shall lay downthe conditions under which they may takeplace.Article 1331. Where circumstances so warrant, goodsplaced under the customs warehousingprocedure may be temporarily removed fromthe customs warehouse. Such removal must beauthorized in advance by the customsauthorities, which shall stipulate the conditionson which it may take place.2. While they are outside the customswarehouse, the goods may undergo the formsof handling referred to in Article 132 on theconditions set out therein.Article 134The customs authorities may allow goodsplaced under the customs warehousingprocedure to be transferred from one customswarehouse to another.Article 1351. Where a customs debt is incurred in respectof import goods and the customs value of suchgoods is based on a price actually paid orpayable which includes the cost of\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniawarehousing and of preserving goods whilethey remain in the warehouse, such costs neednot be included in the customs value if they areshown separately from the price actually paidor payable for the goods.2. Where the said goods have undergone theusual forms of handling within the meaning ofarticle 132, the nature of the goods, thecustoms value and the quantity to be taken intoaccount in determining the amount of importduties shall, at the request of the declarant, bethose which would be taken into account forthe goods, at the time referred to in Article229, if they had not undergone such handling.3. However, derogation from paragraph 2 shallbe determined in the Implementing Provisionsof this Code, if necessary.D. Inward ProcessingI. General ProvisionsArticle 1361. Without prejudice to Article 137, the inwardprocessing procedure shall allow the followinggoods to be used in the customs territory of theRepublic of Albania in one or more processingoperations:a) non-Albanian goods intended for reexportfrom the customs territory of theRepublic of Albania in the form ofcompensating products, without suchgoods being subject to import duties orcommercial policy measures;b) goods released for free circulation withrepayment or remission of the importduties chargeable on such goods if theyare exported from the customs territoryof the Republic of Albania in the formof compensating products.2. The following expressions shall have thefollowing meanings:a) suspension system: the inwardprocessing relief arrangements asprovided for in paragraph 1 (a);b) drawback system: the inwardprocessing relief arrangements asprovided for in paragraph 1 (b);c) processing operations:i) the working of goods, includingerecting or assembling them orfitting them to other goods;ii) the processing of goods;iii) the repair of goods, includingrestoring them and putting them inorder; andiv) the use of certain goods defined inprovisions laid down in theImplementing Provisions, which arenot to be found in the compensatingproducts, but which allow orfacilitate the production of thoseproducts, even if they are entirelyor partially used in the process;d) “compensating products”: all productsresulting from processing operations;e) “rate of yield”: the quantity or percentageof compensating products obtained fromthe processing of a given quantity ofimport goods.II. Grant of the authorizationArticle 137The authorization shall be issued at the requestof the person who carries out-processingoperations or who arranges for them to becarried out.Article 138The authorization shall be granted only:a) to persons established in the Republic ofAlbania. However, the authorization maybe granted to persons established outsidethe country in respect of imports of anon-commercial nature;b) where, without prejudice to the use ofgoods referred to in Article 136(2)(c)(iv),\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniathe import goods can be identified in thecompensating products.c) where the inward processing proceduremay help create the most favorableconditions for the export or re-export ofcompensating products, provided that theessential interests of Albanian producersare not adversely affected (economicconditions).III. Operation of the procedureArticle 1391. The customs authorities shall specify theperiod within which the compensatingproducts must have been exported, reexported,or assigned another customsapprovedtreatment or use. That period shalltake account of the time required to carry outthe processing operations and dispose of thecompensating products.2. The period shall run from the date on whichthe non-Albanian goods are placed under theinward processing procedure. The customsauthorities may grant an extension onsubmission of a duly substantiated request bythe holder of the authorization.Article 1401. The customs authorities shall set either therate of yield of the operation or whereappropriate the method of determining suchrate. The rate of yield shall be determinedbased on the actual circumstances in which theprocessing operation is, or is to be, carried out.2. Where circumstances so warrant and, inparticular, in the case of processing operationscustomarily carried out under clearly definedtechnical conditions involving goods ofsubstantially uniform characteristics andresulting in the production of compensatingproducts of uniform quality, standard rate ofyield is set in the Implementing Provisions ofthis Code, on the basis of actual datapreviously ascertained.Article 141The cases in which and the conditions underwhich goods in the unaltered state orcompensating products shall be considered tohave been released for free circulation may bedetermined in provisions enacted by theMinister of Finance.Article 1421. Subject to Article 143, where a customsdebt is incurred, the amount of such debt shallbe determined on the basis of the taxationelements appropriate to the import goods onthe date of acceptance of the declaration forplacing these goods under the inwardprocessing procedure.2. If at the time referred to in paragraph 1, theimport goods fulfilled the conditions to qualifyfor preferential tariff treatment within tariffquotas or ceilings, they shall be eligible for anypreferential tariff treatment existing in respectof identical goods at the same date ofacceptance of the declaration of release for freecirculation.Article 143By way of derogation from Article 142,compensating products:a) shall be subject to import dutiescalculated in accordance with the rulesapplicable to the customs procedure inquestion or to free zones or freewarehouses where they have been placedunder a suspensive arrangement or in afree zone or free warehouse;However,i. the person concerned may requestthat duty be assessed in accordancewith Article 142;ii. in cases where the compensatingproducts have been assigned acustoms-approved treatment or usereferred to above other thanprocessing under customs control,the amount of the import duty andother charges levied shall be at leastequal to the amount calculated inaccordance with Article 142.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniab) may be made subject to the rulesgoverning assessment of duty laid downunder the procedure for processing undercustoms control where the import goodscould have been under that procedure;c) shall enjoy favorable tariff treatmentowing to the special use for which theyare intended, where provision is made forsuch treatment in the case of identicalgoods;d) shall be admitted free of import dutywhere such duty - free provision is madein the case of identical goods imported inaccordance with Article 199.IV. Processing operations in a foreigncountryArticle 1441. Some or all of the compensating products orgoods in the unaltered state may betemporarily exported for further processing ina foreign country if the customs authority soauthorizes, in accordance with the conditionslaid down in the outward processingprovisions.2. Where a customs debt is incurred in respectof re-imported products, the following shall becharged:a) import duties on the compensatingproducts or goods in the unaltered statereferred to in paragraph 1, calculated inaccordance with Articles 142 and 143;andb) import duties on products re-importedafter their processing in a foreigncountry, the amount of which shall becalculated in accordance with theprovisions related to the outwardprocessing procedure, on the sameconditions as would have applied hadthe products exported under the latterprocedure been released for freecirculation before such export tookplace.V. Special provisions relating to thedrawback systemArticle 1451. The drawback system may be used for allgoods, with the exception of those which, atthe date the declaration of release for freecirculation is accepted:a) are subject to quantitative importrestrictions;b) might within quotas, qualify for apreferential tariff measure or anautonomous suspensive measure withinthe meaning of Article 28 (3) (d) and (e).2. Moreover, the drawback system may beused only if no export refund has been set forthe compensating products at the date thedeclaration of release for free circulation of theimport goods is accepted.3. Permission to use the drawback systemshall be granted only if no export refund hasbeen set for the compensating products at thedate the declaration of exportation of thecompensating products is accepted.Article 1461. The declaration of release for freecirculation shall indicate that the drawbacksystem is being used and shall provideparticulars of the authorization.2. The said authorization shall be attached tothe declaration of release for free circulation.Article 147Under the drawback system, Articles 141, 142and 143 (c) shall not apply.Article 148Temporary exportation of compensatingproducts carried out as provided for in Article144 (1) shall not be considered to beexportation within the meaning of Article 149except where such products are not reimportedinto the Republic of Albania withinthe period prescribed.Article 1491. The holder of the authorization may ask forthe import duty to be repaid or remitted wherehe can establish to the satisfaction of thecustoms authorities that compensating productsobtained from import goods released for free\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniacirculation under the drawback system havebeen either:a) exported; orb) placed, with a view to beingsubsequently re-exported under thetransit procedure, the customswarehousing procedure, the temporaryimportation procedure or the inwardprocessing procedure (suspensivearrangement), or in a free zone or freewarehouse,provided that all conditions for use of theprocedure have also been fulfilled.2. For the purposes of being assigned acustoms-approved treatment or use referred toin paragraph 1(b), compensating products shallbe considered to be non-Albanian goods.3. The period within which the application forrepayment must be made shall be determinedin the Implementing Provisions of this Code.4. Compensating products placed under acustoms procedure or in a free zone or freewarehouse in accordance with the provisionsof paragraph 1 shall be released for freecirculation only where authorized by thecustoms authorities, which shall grant suchauthorization where circumstances so warrant.In this case, and without prejudice to Article143 (a), the amount of import duties repaid orremitted shall be considered to constitute theamount of the customs debt.E. Processing under customs controlArticle 150The procedure for processing under customscontrol shall allow non-Albanian goods to beused in the customs territory of the Republic ofAlbania in operations which alter the nature orstate of goods, without their being subject toimport duties or commercial policy measures,and shall allow the products resulting fromsuch operations to be released for freecirculation at the rate of import dutyappropriate to them. Such products shall betermed processed products.Article 151The list of cases in which the procedure forprocessing under customs control may be usedshall be determined in the ImplementingProvisions of this Code.Article 152Authorization for processing under customscontrol shall be granted at the request of theperson who carries out the processing orarranges for it to be carried out.Article 153Authorization shall be granted only:a) to persons established in the Republic ofAlbania;b) where the import goods can be identifiedin the processed products;c) cases where the goods cannot beeconomically restored after processing totheir description or state as it was whenthey were placed under the procedure;d) where use of the procedure cannot resultin circumvention of the effect of the rulesconcerning origin and quantitativerestrictions applicable to the importedgoods;e) where the necessary conditions for theprocedure to help create or maintain aprocessing activity in the Republic ofAlbania without adversely affecting theessential interests of Albanian producersof similar goods (economic conditions)are fulfilled.Article 154Articles 139 and 140 shall apply mutatismutandis.Article 155Where a customs debt is incurred in respect ofgoods in the unaltered state or of products thatare at an intermediate stage of processing ascompared with that provided for in theauthorization, the amount of that debt shall bedetermined on the basis of the items of chargeelements appropriate to the import goods at thetime of acceptance of the declaration relating\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniato the placing of the goods under the procedurefor processing under customs control.Article 1561. Where the import goods qualified forpreferential tariff treatment when they wereplaced under the procedure for processingunder customs control, and such preferentialtariff treatment is applicable to productsidentical to the processed goods released forfree circulation, the import duties to which theprocessed products are subject shall becalculated by applying the rate of dutyapplicable under that treatment.2. If the preferential tariff treatment referred toin paragraph 1 in respect of the import goods issubject to tariff quotas or tariff ceilings, theapplication of the rate of duty referred to inparagraph 1 in respect of the processedproducts shall also be subject to the conditionthat the said preferential tariff treatment isapplicable to the import goods at the time ofacceptance of the declaration of release for freecirculation. In this case, the quantity of importgoods actually used in the manufacture of theprocessed products released for free circulationshall be charged against the tariff quotas orceilings in force at the time of acceptance ofthe declaration of release for free circulationand no quantities shall be counted against tariffquotas or ceilings opened in respect ofproducts identical to the processed products.F. Temporary importationArticle 157The temporary importation procedure shallallow the use in the customs territory of theRepublic of Albania, with total or partial relieffrom import duties and without their beingsubject to commercial policy measures, of non-Albanian goods intended for re-export withouthaving undergone any change except normaldepreciation due to the use made of them.Article 158Authorization for temporary importation shallbe granted at the request of the person whouses the goods or arranges for them to be used.Article 1591. The customs authorities shall refuse toauthorize use of the temporary importationprocedure where it is impossible to ensure thatthe import goods may be identified.2. However, the customs authorities mayauthorize use of the temporary importationprocedure without ensuring that the goods maybe identified where, in view of the nature ofthe goods or of the operations to be carried out,the absence of identification measures is notliable to give rise to any abuse of theprocedure.Article 1601. The customs authorities shall determine theperiod within which import goods must havebeen re-exported or assigned a new customsapprovedtreatment or use. Such period mustbe long enough for the objective of authorizeduse to be achieved.2. Without prejudice to the special periods laiddown in accordance with Article 161, theperiod during which goods may remain underthe temporary importation procedure shall be12 months. The customs authorities may, at aduly substantiated request of the personconcerned, extend the periods referred to inparagraph 1 for a maximum period of another12 months in order to permit the authorizeduse.3. However, where exceptional circumstancesso warrant, the customs authorities may, withinreasonable limits, determine shorter periodswith the agreement of the person concerned.Article 161The cases and the special conditions underwhich the temporary importation proceduremay be used with total relief from importduties shall be determined in the ImplementingProvisions of this Code.Article 1621. Use of the temporary importation procedurewith partial relief from import duties shall begranted in respect of goods which, whileremaining the property of a person establishedin a foreign country, are not covered by theprovisions adopted in accordance with Article\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania161 or which are covered by such provisionsbut do not fulfill all the conditions provided fortherein for the grant of temporary importationwith total relief.2. The list of goods in respect of which thetemporary importation procedure with partialrelief from import duties may not be used shallbe drawn up in the implementing provisions ofthis Code.Article 1631. The amount of import duties payable inrespect of goods placed under the temporaryimportation procedure with partial relief fromimport duties shall be set at 3%, for everymonth or fraction of a month during which thegoods have been placed under the temporaryimportation procedure with partial relief, of theamount of duties which would have beenpayable on the said goods had they beenreleased for free circulation on the date onwhich they were placed under the temporaryimportation procedure.2. The amount of import duties to be chargedshall not exceed that amount which wouldhave been charged if the goods concerned hadbeen released for free circulation on the dateon which they were placed under thetemporary importation procedure, leaving outof account any interest which may beapplicable.3. Transfer of the rights and obligationsderiving from the temporary importationprocedure pursuant to Article 113 shall notmean that the same relief arrangements mustbe applied to each of the periods of use to betaken into consideration.4. Where the transfer referred to in paragraph3 is made with partial relief for both personsauthorized to use the procedure during thesame month, the holder of the initialauthorization shall be liable to pay the amountof import duties due for the whole of thatmonth.Article 1641. Where a customs debt is incurred in respectof import goods, the amount of such debt shallbe determined on the basis of the taxationelements appropriate to those goods at the timeof acceptance of the declaration of theirplacing under the temporary importationprocedure. However, where the provisions ofArticle 161 so provide, the amount of the debtshall be determined based on the taxationelements appropriate to the goods in questionat the time referred to in Article 229.2. Where, for a reason other than the placingof goods under the temporary importationprocedure with partial relief from importduties, a customs debt is incurred in respect ofgoods placed under the said procedure, theamount of that debt shall be equal to thedifference between the amount of dutiescalculated pursuant to paragraph 1 and thatpayable pursuant to Article 163.G. Outward processingI. General ProvisionsArticle 1651. The outward processing procedure shall,without prejudice to the provisions governingspecific fields relating to the standardexchange system laid down in Articles 174 to179 or to Article 144, allow Albanian goods tobe exported temporarily from the customsterritory of the Republic of Albania in order toundergo processing operations and theproducts resulting from those operations to bereleased for free circulation with total or partialrelief from import duties.2. Temporary exportation of Albanian goodsshall entail the application of export duties,commercial policy measures and otherformalities for the exit of Albanian goods fromthe customs territory of the Republic ofAlbania.3. The following definitions shall apply:a) ‘temporary export goods’ means goodsplaced under the outward processingprocedure;b) ‘processing operations’ means theoperations referred to in Article 136 (2)(c) first, second and third indents;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniac) ‘compensating products’ means allproducts resulting from processingoperations;d) ‘rate of yield’ means the quantity orpercentage of compensating productsobtained from the processing of a givenquantity of temporary export goods.Article 1661. The outward processing procedure shall notbe open to Albanian goods:a) whose export gives rise to repayment orremission of import duties;b) which, prior to export, were releasedfor free circulation with total relieffrom import duties by virtue of end use,for as long as the conditions forgranting such relief continue to apply;c) whose export gives rise to the grantingof export refunds or financialadvantages given in this case.2. However, derogation from paragraph 1 (b)may be determined in provisions enacted bythe Minister of Finance.II. Grant of the authorizationArticle 1671. Authorization to use the outward processingprocedure shall be issued at the request of theperson who arranges for the processingoperations to be carried out.2. By way of derogation from paragraph 1,authorization to use the outward processingprocedure may be granted to another person inrespect of goods of Albanian origin within themeaning of Title II, Chapter 2, Section 1,where the processing operation consists inincorporating those goods into goods obtainedoutside the customs territory of the Republic ofAlbania and imported as compensatingproducts, provided that the use of theprocedure helps to promote the sale of exportgoods without adversely affecting the essentialinterests of Albanian producers of productsidentical or similar to the importedcompensating products.3. The cases in which and the arrangementsunder which the preceding paragraphs shallapply are determined in the ImplementingProvisions of this Code.Article 168Authorization shall be granted only:a) to persons established in the Republicof Albania;b) where it is considered that it will bepossible to establish that thecompensating products have resultedfrom processing of the temporaryexport goods. The cases in whichderogation from this subparagraph mayapply and the conditions under whichsuch derogation shall apply shall bedetermined in the ImplementingProvisions of this Code;c) where authorization to use the outwardprocessing procedure is not liableseriously to harm the essential interestsof Albanian producers and processors(economic conditions).III. Operation of the procedureArticle 1691. The customs authorities shall specify theperiod within which the compensatingproducts must be re-imported into the customsterritory of the Republic of Albania. They mayextend that period on submission of a dulysubstantiated request by the holder of theauthorization.2. The customs authorities shall set either therate of yield of the operation or, wherenecessary, the method of determining that rate.Article 1701. The total or partial relief from import dutiesprovided for in Article 171 (1) shall be grantedonly where the compensating products aredeclared for release for free circulation in thename of or on behalf of:a) the holder of the authorization, orb) any other person established in theRepublic of Albania provided that that\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaperson has obtained the consent of theholder of the authorization and theconditions of the authorization arefulfilled.2. The total or partial relief from import dutiesprovided for in Article 171 shall not be grantedwhere one of the conditions or obligationsrelating to the outward processing procedure isnot fulfilled, unless it is established that thefailures have no significant effect on thecorrect operation of the said procedure.Article 1711. The total or partial relief from import dutiesprovided for in Article 165 shall be effected bydeducting from the amount of the import dutiesapplicable to the compensating productsreleased for free circulation the amount of theimport duties that would be applicable on thesame date to the temporary export goods ifthey were imported into the customs territoryof the Republic of Albania from the country inwhich they underwent the processing operationor last processing operation.2. The amount to be deducted pursuant toparagraph 1 shall be calculated on the basis ofthe quantity and nature of the goods inquestion on the date of acceptance of thedeclaration placing them under the outwardprocessing procedure and on the basis of theother items of charge applicable to them on thedate of acceptance of the declaration relating tothe release for free circulation of thecompensating products. The value of thetemporary export goods shall be that taken intoaccount for those goods in determining thecustoms value of the compensating products inaccordance with Article 37 (1) (b) (i) or, if thevalue may not be determined in that way, thedifference between the customs value of thecompensating products and the processingcosts determined by reasonable means.However,a) certain charges specified in theImplementing Provisions of this Codeshall not be taken into account incalculating the amount to be deducted;b) where, prior to being placed under theoutward processing procedure, thetemporary export goods were releasedfor free circulation at a reduced rate byvirtue of their end use, and for as long asconditions for granting the reduced ratecontinue to apply, the amount to bededucted shall be the amount of importduties actually levied when the goodswere released for free circulation.3. Where temporary export goods couldqualify on their release for free circulation fora reduced or zero rate of duty by virtue of theirend use, that rate shall be taken into accountprovided that the goods underwent operationsconsistent with such an end-use in the countrywhere the processing operation or lastoperation took place.4. Where compensating products qualify for apreferential tariff measure within the meaningof Article 28 (3) (d) and (e) and the measureexists for goods falling in the same tariffclassification as the temporary export goods,the rate of import duty to be taken into accountin establishing the amount to be deductedpursuant to paragraph 1 shall be that whichwould apply if the temporary export goodsfulfilled the conditions under which thatpreferential measure may be applied.5. This Article shall be without prejudice tothe application of provisions adopted or liableto be adopted in the context of trade betweenthe Republic of Albania and other countries,which provide for relief from import duties inrespect of certain compensating products.Article 1721. Where the purpose of the processingoperation is the repair of the temporary exportgoods, they shall be released for freecirculation with total relief from import dutieswhere it is established to the satisfaction of thecustoms authorities that the goods wererepaired free of charge, either because of acontractual or statutory obligation arising froma guarantee or because of a manufacturingdefect.2. Paragraph 1 shall not apply where accountwas taken of the defect at the time when thegoods in question were first released for freecirculation.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of AlbaniaArticle 173Where the purpose of the processing operationis the repair of temporary export goods andsuch repair is carried out in return for payment,the partial relief from import duties providedfor in Article 165 shall be granted byestablishing the amount of the dutiesapplicable on the basis of the taxation elementspertaining to the compensating products on thedate of acceptance of the declaration of releasefor free circulation of those products andtaking into account as the customs value anamount equal to the repair costs, provided thatthose costs represent the only considerationprovided by the holder of the authorization andare not influenced by any links between thatholder and the operator.IV. Outward processing with use of thestandard exchange systemArticle 1741. Under the conditions laid down in Articles174 to 179, which are applicable in addition tothe preceding provisions, the standardexchange system shall permit an importedproduct, hereinafter referred to as a‘replacement product’, to replace acompensating product.2. The customs authorities shall allow thestandard exchange system to be used where theprocessing operation involves the repair ofAlbanian goods.3. Without prejudice to Article 179, theprovisions applicable to compensatingproducts shall also apply to replacementproducts.4. The customs authorities shall, under theconditions they lay down, permit replacementproducts to be imported before the temporaryexport goods are exported (prior importation).In case of prior importation of a replacement,security shall be provided to cover the amountof the import duties.Article 1751. Replacement products shall have the sametariff classification, be of the same commercialquality and possess the same technicalcharacteristics as the temporary export goodshad the latter undergone the repair in question.2. Where the temporary export goods havebeen used before export, the replacementproducts must also have been used and maynot be new products. The customs authoritiesmay, however, grant derogation from this ruleif the replacement product has been suppliedfree of charge either because of a contractualor statutory obligation arising from a guaranteeor because of a manufacturing defect.Article 176Standard exchange shall be authorized onlywhere it is possible to verify that theconditions laid down in Article 175 arefulfilled.Article 1771. In the case of prior importation, the exportgoods shall be temporarily exported within aperiod of two months from the date ofacceptance by the customs authorities of thedeclaration relating to the release of thereplacement products for free circulation.2. However, where exceptional circumstancesso warrant, the customs authorities may, at therequest of the person concerned, extend withinreasonable limits the period referred to inparagraph 1.Article 178In the case of prior importation and whereArticle 171 is applied, the amount to bededucted shall be determined on the basis ofthe items of charge applicable to the temporaryexport goods on the date of acceptance of thedeclaration placing them under the procedure.Article 179Article 167(2) and Article 168(b) shall notapply in the context of standard exchange.V. Other provisionsArticle 180The procedure provided for within theframework of outward processing shall also beapplicable for the purposes of implementingnon-tariff commercial policy measures.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of AlbaniaSection 4ExportArticle 1811. The export procedure shall allow Albaniangoods to leave the customs territory of theRepublic of Albania. Exportation shall entailthe application of exit formalities includingcommercial policy measures and, whereappropriate, export duties.2. With the exception of goods placed underthe outward processing procedure, all Albaniangoods intended for export shall be placedunder the export procedure.3. The case in which and the conditions underwhich goods leaving the customs territory ofthe Republic of Albania are not subject to anexport declaration shall be determined in theImplementing Provisions of this Code andprovisions enacted by the Minister of Finance,if necessary.4. The export declaration must be lodged atthe customs office responsible for supervisingthe place where the exporter is established orwhere the goods are packed or loaded forexport shipment. Derogation shall bedetermined in the Implementing Provisions ofthis Code, if necessary.Article 182Release for export shall be granted oncondition that the goods in question leave thecustoms territory of the Republic of Albania inthe same condition as when the exportdeclaration was accepted.CHAPTER 3OTHER TYPES OF CUSTOMS-APPROVEDTREATMENT OR USESection 1Free zones and free warehousesA. General ProvisionsArticle 183Free zones and free warehouses shall be partsof the customs territory of the Republic ofAlbania or premises situated in that territoryand separated from the rest of it in which:a) non-Albanian goods are considered, forthe purpose of import duties andcommercial policy import measures, asnot being on Albanian customs territory,provided they are not released for freecirculation or placed under anothercustoms procedure or used or consumedunder conditions other than thoseprovided for in customs legislation;b) Albanian goods for which such provisionis made under legislation governingspecific fields qualify, by virtue of beingplaced in a free zone or free warehouse,for measures normally attaching to theexport of goods.Article 1841. The Council of Ministers may designateparts of the customs territory of the Republicof Albania as free zones. The construction ofany building in a free zone shall require theprior approval of the Minister of Finance. TheMinister of Finance approves the establishmentof free warehouses.2. The Council of Ministers shall determinethe area covered by each free zone.3. Free zones shall be carefully defined andenclosed. The Council of Ministers shall definethe entry and exit points of each free zone. TheMinister of Finance shall define the entry andexit points of each free warehouse.Article 1851. The perimeter and the entry and exit pointsof free zones and free warehouses shall besubject to supervision by the customsauthorities.2. Persons and means of transport entering orleaving a free zone or free warehouse may besubjected to a customs check.3. Access to a free zone or free warehousemay be denied to persons who do not provideevery guarantee necessary for compliance withthe rules provided for in this Code.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania4. When goods enter or leave a freewarehouse, a copy of the transport document,which shall accompany those goods, shall behanded to the customs authority. When goodsenter or leave a free zone, a copy of thetransport document, which shall accompanythose goods, shall be kept to the disposal of thecustoms authority. The customs authoritiesmay check goods entering, remaining, orleaving in a free zone or free warehouse.Where such checks are required, the goodsshall be made available to those authorities.B. Placing of goods in free zones or freewarehousesArticle 1861. Both Albanian and non-Albanian goodsmay be placed in a free zone or freewarehouse.2. However, the customs authorities mayrequire that goods which present a danger orare likely to spoil other goods or which, forother reasons, require special facilities beplaced in premises specially equipped toreceive them.Article 1871. Without prejudice to Article 185 (4), goodsentering a free zone or free warehouse need notbe presented to the customs authorities, norneed a customs declaration be lodged.2. Goods shall be presented to the customsauthorities and undergo the prescribed customsformalities only where:a) they have been placed under a customsprocedure which is discharged whenthey enter a free zone or freewarehouse; however, where thecustoms procedure in question permitsexemption from the obligation topresent goods, such presentation shallnot be required;b) they have been placed in a free zone orfree warehouse on the authority of adecision to grant repayment orremission of import duties;c) they qualify for the measures referredto in Article 183 (b).3. Customs authorities shall require goodssubject to export duties or to other exportprovisions to be notified to them.4. At the request of the party concerned, thecustoms authorities shall certify the Albanianor non-Albanian status of goods placed in afree zone or free warehouse.C. Operation of free zones and freewarehousesArticle 188There shall be no limit to the length of timegoods may remain in free zones or freewarehouses.Article 1891. Any industrial, commercial or serviceactivity shall, under the conditions laid downin this Code, be authorized in a free zone orfree warehouse. The carrying on of suchactivities shall be notified in advance to thecustoms authorities.2. The customs authorities may impose certainprohibitions or restrictions on the activitiesreferred to in paragraph 1, having regard to thenature of the goods concerned or to therequirements of customs supervision.3. The customs authorities may preventpersons who do not provide the necessaryguarantees of compliance with the provisionslaid down in this Code from carrying on anactivity in a free zone or free warehouse.Article 1901. Non-Albanian goods placed in a free zoneor free warehouse may, while they remain in afree zone or free warehouse:a) be released for free circulation underthe conditions laid down by thatprocedure and by Article 194;b) undergo the usual forms of handlingreferred to in Article 132 (1) withoutauthorization;c) be placed under the inward processingprocedure under the conditions laiddown by that procedure;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniad) be placed under the procedure forprocessing under customs control underthe conditions laid down by thatprocedure;e) be placed under the temporaryimportation procedure under theconditions laid down under thatprocedure;f) be abandoned in accordance withArticle 197;g) be destroyed, provided that the personconcerned supplies the customsauthorities with all information theyjudge necessary.2. Where goods are placed under one of theprocedures referred to in paragraph 1 (c), (d) or(e) the customs authorities shall, in so far as isnecessary to take account of the operating andcustoms supervision conditions of the freezones or free warehouses, adapt the controlarrangements laid down.Article 1911. Where Article 190 is not applied, non-Albanian goods and the Albanian goodsreferred to in Article 183 (b) shall not beconsumed or used in free zones or in freewarehouses.2. Without prejudice to the provisionsapplicable to supplies or stores, where theprocedure concerned so provides, paragraph 1shall not preclude the use or consumption ofgoods, the release for free circulation ortemporary importation of which would notentail application of import duties or measuresunder commercial policy. In that event, nodeclaration of release for free circulation ortemporary importation shall be required. Suchdeclaration shall, however, be required if suchgoods are to be charged against a quota orceiling.Article 1921. All persons carrying on an activityinvolving the storage, working or processing,or sale or purchase, of goods in a free zone orfree warehouse shall keep stock records in aform approved by the customs authorities.Goods shall be entered in the stock records assoon as they are brought into the premises ofsuch person. The stock records must enable thecustoms authorities to identify the goods, andmust record their movements.2. Where goods are transshipped within a freezone, the documents relating to the operationshall be kept at the disposal of the customsauthorities. The short-term storage of goodsabout such transshipment shall be consideredan integral part of the operation.D. Exit of goods from free zones or freewarehousesArticle 1931. Without prejudice to special provisionsadopted under customs legislation governingspecific fields, goods leaving a free zone orfree warehouse may be:a) exported or re-exported from thecustoms territory of the Republic ofAlbania, orb) brought into another part of thecustoms territory of the Republic ofAlbania.2. The provisions of Title III, with theexception of Articles 73 to 78 where Albaniangoods are concerned, shall apply to goodsbrought into other parts of that territory exceptin the case of goods which leave that zone bysea or air without being placed under a transitor other customs procedure.Article 1941. Where a customs debt is incurred in respectof non-Albanian goods and the customs valueof such goods is based on a price actually paidor payable which includes the cost ofwarehousing or of preserving goods while theyremain in the free zone or free warehouse, suchcosts shall not be included in the customsvalue if they are shown separately from theprice actually paid or payable for the goods.2. Where the said goods have undergone, in afree zone or free warehouse, one of the usualforms of handling within the meaning ofArticle 132 (1), the nature of the goods, thecustoms value and the quantity to be taken into\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

consideration in determining the amount ofimport duties shall, at the request of thedeclarant and provided that such handling wascovered by an authorization granted inaccordance with paragraph 2 of that Article, bethose which would be taken into account inrespect of those goods, at the time referred toin Article 229, had they not undergone suchhandling. Derogation from this provision may,however, be determined in the ImplementingProvisions of this Code.Article 1951. Where goods are brought into or returned toanother part of the customs territory of theRepublic of Albania or placed under a customsprocedure, the certificate referred to in Article187 (4) may be used as proof of the Albanianor non-Albanian status of such goods.2. Where it is not proved by the certificate orother means that the goods have Albanian ornon-Albanian status, the goods shall beconsidered to be:a) Albanian goods, for the purposes ofapplying export duties and exportlicenses or export measures laid downunder the commercial policy;b) Non-Albanian goods in all other cases.Article 196The customs authorities shall ensure that therules governing exportation or re-exportationare respected where goods are exported or reexportedfrom a free zone or free warehouse.Section 2Re-exportation, destruction andabandonmentCustoms Code of Republic of AlbaniaTITLE VArticle 1971. Non-Albanian goods may be:a) re-exported from the customs territoryof the Republic of Albania;b) destroyed;c) abandoned to the exchequer inaccordance with the provisions in force.2. Re-exportation shall involve application ofthe formalities laid down for goods leaving,including commercial policy measures. Casesin which non-Albanian goods may be placedunder a suspensive arrangement with view tonon-application of commercial policymeasures on exportation may be determined inthe Implementing Provisions of this Code.3. Re-exportation or destruction shall be thesubject of prior notification of the customsauthorities. The customs authorities shallprohibit re-exportation should the formalitiesor measures referred to in the first sentence ofparagraph 2 so provide. Where goods placedunder an economic customs procedure whenon Albanian customs territory are intended forre-exportation, a customs declaration withinthe meaning of Articles 84 to 102 shall belodged. In such cases, Article 181 (3) and (4)shall apply. Abandonment shall be made asdescribed in the Implementing Provisions ofthis Code.4. Destruction or abandonment shall not entailany expense for the exchequer.5. Any waste or scrap resulting fromdestruction shall be assigned a customsapprovedtreatment or use prescribed for non-Albanian goods. It shall remain under customssupervision until the time laid down in Article41 (3).GOODS LEAVING THE CUSTOMS TERRITORY OF THE REPUBLIC OF ALBANIA\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Article 1981. Goods leaving the customs territory of theRepublic of Albania shall be subject tocustoms supervision. They may be the subjectof checks by the customs authorities inaccordance with the provisions in force. Theyshall leave the said territory using, whereappropriate, the route determined by thecustoms authorities and in accordance with theprocedures laid down by those authorities.2. Goods leaving the customs territory of theRepublic of Albania should be presented at thecompetent border customs office, according tothe means of transport, where they are subjectto all the controls and formalities considerednecessary to verify whether the export dutieshave been paid as well as to record on theaccompanying customs documents, whencircumstances so warrant, the exit of the goodsby the said territory.TITLE VIPRIVILEGED OPERATIONSCHAPTER 1RELIEF FROM CUSTOMS DUTYArticle 1991. Relief from import duties is granted in thecases referred to in paragraph 2, or whennecessary, by specific law. The manner, thequantitative and value-based limits, theformalities, and the conditions on which relieffrom import duties is granted are laid down inthe Implementing Provisions of the Code.2. Relief from import duties is granted in thefollowing cases:a) personal property belonging to naturalpersons transferring their normal placeof residence from another country tothe Republic of Albania;b) goods imported on occasion ofmarriage;c) personal property acquired byinheritage;d) school outfits, scholastic materials andother scholastic household effects foruse by pupils or students, having nocommercial character;e) consignment of negligible value;f) goods contained in traveler’s personalluggage;g) laboratory animals and biological orchemical substances needed forresearch;h) therapeutic substances of human originand blood grouping and tissue typingreagents, human organs for transplants;i) reference substances for the qualitycontrol of medicinal products;j) pharmaceutics products used atinternational sport event to be held inthe customs territory of the Republic ofAlbania;k) goods for charitable, philanthropic, orassistance purposes for charitableorganizations, religious institutions,public entities, as well as budget fundedstate entities;l) honorary decorations or awards;m) presents received in the context ofinternational relations;n) goods to be used by the head of state;o) goods imported for trade promotionpurposes;p) consignments sent to organizationsprotecting copyrights or industrial orcommercial patent rights;q) tourist information literature;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniar) miscellaneous documents and articles,as detailed in the ImplementingProvisions of this Code;s) ancillary materials for the stowage andprotection of goods during theirtransport;t) litter, fodder and feeding stuff foranimals during their transport;u) fuel and lubricants present in motorvehicles;v) coffins, funerary urns, and theirornaments or funerary articles of them,as well as materials for construction,maintenance, and ornamentation ofmemorials to or cemeteries for, warvictims.w) stores and necessary equipment for thenormal function of means of transport.3. Relief from import duties is given also inevery other case provided for in bilateral ofmultilateral agreements signed by thegovernment of the Republic of Albania andratified by the People’s Assembly, for as muchas these agreements explicitly provide forrelief from import duties.4. The Minister of Finance may authorizeopening of duty free shops in the ports andairports of the customs area or the customsterritory of the Republic of Albania for the saleof products with relief from import duties. Theformalities and procedures followed in thesecases are laid down in the ImplementingProvisions of this Code.CHAPTER 2RETURNED GOODSArticle 2001. Albanian goods which, having beenexported from the customs territory of theRepublic of Albania, are returned to thatterritory and released for free circulationwithin a period of three years shall, at therequest of the person concerned, be grantedrelief from import duties.However:a) the three year period may be exceededin order to take account of specialcircumstances;b) where, prior to their exportation fromthe customs territory of the Republic ofAlbania, the returned goods had beenreleased for free circulation at reducedor zero import duty because of their usefor a particular purpose exemption fromduty under paragraph 1 shall be grantedonly if they are to be re-imported forthe same purpose. Where the purposefor which the goods in question are tobe imported is no longer the same, theamount of import duties chargeableupon them shall be reduced by anyamount levied on the goods when theywere first released for free circulation.Should the latter amount exceed thatlevied on the entry for free circulationof returned goods, no refund shall begranted.2. The relief from import duties provided forin paragraph 1 shall not be granted in the caseof:a) goods exported from the customsterritory of the Republic of Albaniaunder the outward processingprocedure unless those goods remainin the state in which they wereexported;b) goods which have been the subject ofa measure involving their exportationto another country. The circumstancesin which and the conditions underwhich this requirement may bewaived shall be determined in theImplementing Provisions of this Code.Article 201The relief from import duties provided for inArticle 200 shall be granted only if goods arere-imported in the state in which they wereexported. The circumstances in which and theconditions under which this requirement maybe waived shall be determined in theImplementing Provisions of this Code.Article 202\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania1. Articles 200 and 201 shall apply mutatismutandis to compensating products originallyexported or re-exported subsequent to aninward processing procedure.2. The amount of import duty legally owedshall be determined based on the rulesapplicable under the inward processingprocedure, the date of re-export being regardedas the date of release for free circulation.CHAPTER 3PRODUCTS OF SEA-FISHING ANDOTHER PRODUCTS TAKEN FROM THESEAArticle 203Without prejudice to Article 29 (2) (f), thefollowing shall be exempt from import dutieswhen they are released for free circulation:a) products of sea-fishing and otherproducts taken from the territorial sea ofanother country by vessels registered orrecorded in the Republic of Albania andflying the Albanian flag;b) products obtained from products referredto in (a) on board factory-ships fulfillingthe conditions laid down thatsubparagraphTITLE VIICUSTOMS DEBTCHAPTER 1SECURITY TO COVER CUSTOMS DEBTArticle 2041. Where, in accordance with the customsrules, the customs authorities require securityto be provided in order to ensure payment of acustoms debt, such security shall be providedby the person who is liable or who maybecome liable for that debt.2. The customs authorities shall require onlyone security to be provided in respect of onecustoms debt.3. The customs authorities may authorize thesecurity be provided by a person other than theperson from whom it is required.Article 2051. Where customs rules provide that theprovision of security is optional, such securityshall be required at the discretion of thecustoms authorities in so far as they considerthat a customs debt which has been or may beincurred is not certain to be paid within theprescribed period. Where the security referredto in the preceding sentence is not required, thecustoms authorities may nevertheless requirefrom the person referred to in Article 204(1) anundertaking to comply with the obligationswhich that person is legally obliged to fulfill.2. The security referred to in the aboveparagraph shall be required:a) at the time of application of theprovisions requiring such security to beprovided, orb) at any subsequent time when the customsauthorities find that the customs debt,which has been or may be incurred is notcertain to be paid within the prescribedperiod.Article 206At the request of the person referred to inArticle 204 (1) or (3), the customs authoritiesshall allow comprehensive security to beprovided to cover two or more operations inrespect of which a customs debt has been ormay be incurred.Article 2071. Where the customs rules make itcompulsory for security to be provided, thecustoms authorities shall fix the amount ofsuch security at a level equal to:\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaa) the precise amount of the customs debtor debts in question where that amountmay be established with certainty at thetime when the security is required,b) in other cases the maximum amount, asestimated by the customs authorities, ofthe customs debt or debts, which havebeen or may be incurred.Where comprehensive security is provided forcustoms debts which vary in amount over time,the amount of such security shall be set at alevel enabling the customs debts in question tobe covered at all times.2. Where the customs rules provide that theprovision of security is optional and thecustoms authorities require security to beprovided, the amount of the security shall befixed by those authorities so as not to exceedthe level provided for in paragraph 1.Article 208Security may be provided by either:a) a cash deposit, orb) a guarantor.Article 2091. A cash deposit shall be made in thecurrency of the Republic of Albania.2. The following shall be deemed equivalentto a cash deposit:a) submission of a check, the payment ofwhich is guaranteed by the institution onwhich it is drawn in any manneracceptable to the customs authorities,b) submission of any other instrumentrecognized by the customs authorities asa means of payment.3. Security in the form of a cash deposit orpayment deemed equivalent to cash depositshall be given in accordance with theprovisions in force.Article 2101. The guarantor shall undertake in writing topay jointly and severally with the debtor thesecured amount of a customs debt, which fallsto be paid.2. The guarantor must be a third personestablished in the Republic of Albania andapproved by the customs authorities.3. The customs authorities may refuse toapprove the guarantor or type of securityproposed where the latter do not appear certainto ensure payment of the customs debt withinthe prescribed period.Article 2111. When the dispositions provide so, inaccordance with the Implementing Provisionsof this Code, The person required to providesecurity shall be free to choose between thetypes of security laid down in Article 208.2. Without prejudice to the ImplementingProvisions of this Code, the customsauthorities may refuse to accept the type ofsecurity proposed when it does not complywith the normal function of the said procedure.The same procedure shall be applied relating tothe proposed security. The customs authoritiesmay require that the type of security chosen bemaintained for a specific period.Article 2121. The customs authorities may accept types ofsecurity other than those referred to in Article208 and the Implementing Provisions of thisCode, only where they provide equivalentassurance that the customs debt will be paid.2. The customs authorities shall refuse thesecurity proposed by the debtor where they donot consider that such security is certain toensure payment of the customs debt.3. Subject to the reservation referred to in thesecond paragraph, the customs authorities mayaccept a cash deposit without the conditionslaid down in Article 209 (1) being fulfilled.Article 213Where the customs authorities establish thatthe security provided does not ensure, or is nolonger certain or sufficient to ensure, paymentof the customs debt within the prescribedperiod, they shall require the person referred toin Article 204 (1), at his opinion, to provideadditional security or to replace the originalsecurity with a new security.Article 214\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania1. The security shall not be released until thecustoms debt in respect of which it was givenis extinguished or can no longer arise. Oncethe customs debt is extinguished or can nolonger arise, the security shall be releasedforthwith.2. Once the customs debt has beenextinguished in part or can arise only in respectof part of the amount which has been secured,part of the security shall be releasedaccordingly at the request of the personconcerned, unless the amount involved doesnot justify such action.Article 215Derogation from the provisions contained inthis Chapter shall, where necessary, be madeonly when International Conventions, in whichthe Republic of Albania has adhered, provideotherwise.CHAPTER 2INCURRENCE OF A CUSTOMS DEBTArticle 2161. A customs debt on importation shall beincurred through:a) the release for free circulation of goodsliable to import duties; orb) the placing of such goods under thetemporary importation procedure withpartial relief from import duties.2. A customs debt shall be incurred at the dateof acceptance of the customs declaration inquestion.3. The debtor shall be the declarant. In case ofindirect representation, the person on whosebehalf the customs declaration is made shallalso be a debtor. Where a customs declarationin respect of one of the procedures referred toin paragraph 1 is drawn up on the basis ofinformation which leads to all or part of theduties legally owed not being collected, thepersons who provided the information requiredto draw up the declaration and who knew, orwho ought reasonably to have known that suchinformation was false, may also be considereddebtors in accordance with the provisions inforce.Article 2171. A customs debt on importation shall beincurred through:a) the unlawful introduction into thecustoms territory of the Republic ofAlbania of goods liable to importduties, orb) the unlawful introduction into anotherpart of that territory of such goodslocated in a free zone or freewarehouse.For the purpose of this Article, unlawfulintroduction means any introduction inviolation of the provisions of Articles 42, 43,65 and 66, and the second indent of Article193.2. The customs debt shall be incurred at themoment when the goods are unlawfullyintroduced.3. The debtors shall be:a) the person who introduced such goodsunlawfully,b) any persons who participated in theunlawful introduction of the goods andwho were aware or should reasonablyhave been aware that such introductionwas unlawful, andc) any persons who acquired or held thegoods in question and who were awareat the time of acquiring or receiving thegoods that they had been introducedunlawfully.Article 2181. A customs debt on importation shall beincurred through the unlawful removal fromcustoms supervision of goods liable to importduties.2. The customs debt shall be incurred at themoment when the goods are removed fromcustoms supervision.3. The debtors shall be:\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaa) the person who removed the goodsfrom customs supervision,b) any persons who participated in suchremoval and who were aware or shouldreasonably have been aware that thegoods were being removed fromcustoms supervision,c) any persons who acquired or held thegoods in question and who were awareor should reasonably have been awareat the time of acquiring or receiving thegoods that they had been removed fromcustoms supervision, andd) where appropriate, the person requiredto fulfill the obligations arising fromtemporary storage of the goods or fromthe use of the customs procedure underwhich those goods are placed.Article 2191. A customs debt on importation shall beincurred through:a) non-fulfillment of one of theobligations arising, in respect of goodsliable to import duties, from theirtemporary storage or from the use ofthe customs procedure under whichthey are placed, orb) non-compliance with a conditiongoverning the placing of the goodsunder that procedure or the granting ofa reduced or zero rate of import duty byvirtue of the end-use of the goods,in cases other than those referred to inArticle 218 unless, it is established thatthose failures have no effect on the correctoperation of the temporary storage orcustoms procedure in question.2. The customs debt shall be incurred either atthe moment when the obligation whose nonfulfillmentgives rise to the customs debtceases to be met or at the moment when thegoods are placed under the customs procedureconcerned where it is established subsequentlythat a condition governing the placing of thegoods under the said procedure or the grantingof a reduced or zero rate of import duty byvirtue of the end-use of the goods was not infact fulfilled.3. The debtor shall be the person who isrequired, according to the circumstances, eitherto fulfill the obligations arising, in respect ofgoods liable to import duties, from theirtemporary storage or from the use of thecustoms procedure under which they have beenplaced, or to comply with the conditionsgoverning the placing of the goods under thatprocedure.Article 2201. A customs debt on importation shall beincurred through the consumption or use, in afree zone or a free warehouse, of goods liableto import duties, under conditions other thanthose laid down by the legislation in force.Where goods disappear and where theirdisappearance cannot be explained to thesatisfaction of the customs authorities, thoseauthorities may regard the goods as havingbeen consumed or used in the free zone or thefree warehouse.2. The debt shall be incurred at the momentwhen the goods are consumed or are first usedunder conditions other than those laid down bythe legislation in force.3. The debtor shall be the person whoconsumed or used the goods and any personswho participated in such consumption or useand who were aware or should reasonably havebeen aware that the goods were beingconsumed or used under conditions other thanthose laid down by the legislation in force.Where customs authorities regard goods whichhave disappeared as having been consumed orused in the free zone or the free warehouse andit is not possible to apply the precedingsentence, the person liable for payment of thecustoms debt shall be the last person known tothese authorities to have been in possession ofthe goods.Article 2211. By way of derogation from Articles 217 and219 (1), no customs debt on importation shallbe deemed to be incurred in respect of specificgoods where the person concerned proves that\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniathe non-fulfillment of the obligations whicharise from:a) the provisions of Articles 42, 43, 65, 66and Article 193 (1) (b), orb) keeping the goods in question intemporary storage, orc) the use of the customs procedure underwhich the goods have been placed,results from the total destruction orirretrievable loss of the said goods because ofthe actual nature of the goods or unforeseeablecircumstances or force majeure, or as aconsequence of authorization by the customsauthorities. For the purposes of this paragraph,goods shall be irretrievably lost when anyperson renders them unusable.2. Nor shall a customs debt on importation bedeemed to be incurred in respect of goodsreleased for free circulation at a reduced orzero rate of import duty by virtue of their enduse,where such goods are exported or reexportedwith the permission of the customsauthorities.Article 222Where, in accordance with Article 221 (1), nocustoms debt is deemed to be incurred inrespect of goods released for free circulation ata reduced or zero rate of import duty onaccount of their end-use, any scrap or wasteresulting from such destruction shall bedeemed to be non-Albanian goods.Article 223Where in accordance with Article 218 or 219 acustoms debt is incurred in respect of goodsreleased for free circulation at a reduced rate ofimport duty on account of their end-use, theamount paid when the goods were released forfree circulation shall be deducted from theamount of the customs debt. This provisionshall apply mutatis mutandis where a customsdebt is incurred in respect of scrap and wasteresulting from the destruction of such goods.Article 2241. A customs debt on exportation shall beincurred through the exportation from thecustoms territory of the Republic of Albania,under cover of a customs declaration, of goodsliable to export duties.2. The customs debt shall be incurred at thetime when such customs declaration isaccepted.3. The debtor shall be the declarant. In case ofindirect representation, the person on whosebehalf the declaration is made shall also be adebtor.Article 2251. A customs debt on exportation shall beincurred through the removal from the customsterritory of the Republic of Albania of goodsliable to export duties without a customsdeclaration.2. The customs debt shall be incurred at thetime when the said goods actually leave thecustoms territory of the Republic of Albania.3. The debtor shall be:a) the person who removed the goods, andb) any persons who participated in suchremoval and who were aware or shouldreasonably have been aware that acustoms declaration had not been butshould have been lodged.Article 2261. A customs debt on exportation shall beincurred through failure to comply with theconditions under which the goods wereallowed to leave the customs territory of theRepublic of Albania with total or partial relieffrom export duties.2. The debt shall be incurred at the time whenthe goods reach a destination other than thatfor which they were allowed to leave thecustoms territory of the Republic of Albaniawith total or partial relief from export duties,or, should the customs authorities be unable todetermine that time, the expire of the time limitset for the production of evidence that theconditions entitling the goods to such reliefhave been fulfilled.3. The debtor shall be the declarant. In case ofindirect representation, the person on whose\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniabehalf the declaration is made shall also be adebtor.Article 227The customs debt referred to in Articles 216 to220 and 224 to 226 shall be incurred even if itrelates to goods subject to measures ofprohibition or restriction on importation orexportation of any kind whatsoever. However,no customs debt shall be incurred on theunlawful introduction into the customsterritory of the Republic of Albania ofcounterfeit currency or of narcotic drugs andpsychotropic substances which do not enterinto the economic circuit strictly supervised bythe competent authorities with a view to theiruse for medical and scientific purposes. For thepurposes of criminal law as applicable tocustoms offenses, the customs debt shallnevertheless be deemed to have been incurred,where, under a criminal law, customs dutiesprovide the basis for determining penalties, orthe existence of a customs debt is grounds fortaking criminal proceedings.Article 228Where several persons are liable for paymentof one customs debt, they shall be jointly andseverally liable for such debt.Article 2291. Save as otherwise expressly provided bythis Code and without prejudice to paragraph2, the amount of the import duty or export dutyapplicable to goods shall be determined on thebasis of the rules of assessment appropriate tothose goods at the time when the customs debtin respect of them is incurred.2. Where it is not possible to determineprecisely when the customs debt is incurred,the time to be taken into account indetermining the rules of assessmentappropriate to the goods concerned shall be thetime when the customs authorities concludethat the goods are in a situation in which acustoms debt is incurred. However, where theinformation available to the customsauthorities enables them to establish that thecustoms debt was incurred prior to the timewhen they reached that conclusion, the amountof the import duty or export duty payable onthe goods in question shall be determined onthe basis of the rules of assessment appropriateto the goods at the earliest time when existenceof the customs debt arising from the situationmay be established from the informationavailable.3. Interest should be applied, in thecircumstances and under the conditions to bedefined in the Implementing Provisions of thisCode, in order to prevent the wrongfulacquisition of financial advantage throughdeferment of the date on which the customsdebt was incurred or entered in the accounts.Article 2301. A customs debt shall be incurred at theplace where the events from which it arisesoccur.2. Where it is not possible to determine theplace referred to in paragraph 1, the customsdebt shall be deemed to have been incurred atthe place where the customs authoritiesconclude that the goods are in a situation inwhich a customs debt is incurred.3. Where a customs procedure is notdischarged for goods, the customs debt shall bedeemed to have been incurred at the placewhere the goods:a) were placed under that procedure, orb) enter the Republic of Albania underthat procedure.4. Where the information available to thecustoms authorities enables them to establishthat the customs debt was already incurredwhen the goods were in another place at anearlier date, the customs debt shall be deemedto have been incurred at the place which maybe established as the location of the goods atthe earliest time when existence of the customsdebt may be established.Article 2311. In so far as existing agreements concludedbetween the Republic of Albania and certainforeign countries provide for the granting onimportation into those countries of preferentialtariff treatment for goods originating in theRepublic of Albania within the meaning of\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniasuch agreements, on condition that, where theyhave been obtained under the inwardprocessing procedure, non-Albanian goodsincorporated in the said originating goods aresubject to payment of the import dutiespayable thereon, the validation of thedocuments necessary to enable suchpreferential tariff treatment to be obtained inforeign countries shall cause a customs debt onimportation to be incurred.2. The moment when such customs debt isincurred shall be deemed to be the momentwhen the customs authorities accept the exportdeclaration relating to the goods in question.3. The debtor shall be the declarant. In case ofindirect representation, the person on whosebehalf the declaration is made shall also be adebtor.4. The amount of the import dutiescorresponding to this customs debt shall bedetermined under the same conditions as in thecase of a customs debt resulting from theacceptance, on the same date, of thedeclaration for release for free circulation ofthe goods concerned for the purpose ofterminating the inward processing procedure.CHAPTER 3RECOVERY OF THE AMOUNT OF THECUSTOMS DEBTSection 1Entry in the accounts and communication ofthe amount of duty to the debtorArticle 2321. Each and every amount of import duty orexport duty resulting from a customs debt,hereinafter called ‘amount of duty’, shall becalculated by the customs authorities as soonas they have the necessary particulars, andentered by those authorities in the accountingrecords or on any other equivalent medium(entry in the accounts).2. The first paragraph shall not apply:a) where a provisional anti-dumping orcountervailing duty has been introduced;b) where the amount of duty legally dueexceeds that determined on the basis of abinding tariff information;c) where the provisions adopted in theImplementing Provisions of this Codewaive the requirement for the customsauthorities to enter in the accountsamounts of duty below a given level.3. The practical procedures for the entry in theaccounts of the amounts of duty shall bedetermined in accordance with theImplementing Provisions of this Code.Article 2331. Where a customs debt is incurred as a resultof the acceptance of the declaration of goodsfor a customs procedure other than temporaryimportation with partial relief from importduties or any other act having the same legaleffect as such acceptance the amountcorresponding to such customs debt shall beentered in the accounts as soon as it has beencalculated and, at the latest, on the second dayfollowing that on which the goods werereleased. However, provided that payment hasbeen secured, the total amount of duty relatingto all the goods released to one and the sameperson during a period fixed by the customsauthorities, which may not exceed 31 days,may be covered by a single entry in theaccounts at the end of the period. Such entry inthe accounts shall take place within 5 days ofthe expire of the period in question.2. Where it is provided that goods may bereleased subject to meeting certain conditionslaid down by the legislation which governeither determination of the amount of the debtor its collection, entry in the accounts shalltake place no later than two days following theday on which the amount of the debt or theobligation to pay the duties resulting from thatdebt is determined or fixed. However, wherethe customs debt relates to a provisional antidumpingor countervailing duty, that duty shallbe entered in the accounts no later than twomonths following the date of issue of thedefinitive anti-dumping or countervailing duty.3. Where a customs debt is incurred underconditions other than those referred to in\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaparagraph 1, the relevant amount of duty shallbe entered in the accounts within two days ofthe date on which the customs authorities arein a position to:a) calculate the amount of duty inquestion, andb) determine the debtor.Article 2341. The time limits for entry in the accountslaid down in Article 233 may be extendedwhere special circumstances prevent thecustoms authorities from complying with thesaid time limits. Such extended time limit shallnot exceed 14 days.2. The time limits laid down in paragraph 1shall not apply in unforeseeable circumstancesor in cases of force majeure.Article 2351. Where the amount of duty resulting from acustoms debt has not been entered in theaccounts in accordance with Articles 233 and234 or has been entered in the accounts at alevel lower than the amount legally owed, theamount of duty to be recovered or whichremains to be recovered shall be entered in theaccounts within two days of the date on whichthe customs authorities become aware of thesituation and are in a position to calculate theamount legally owed and to determine thedebtor (subsequent entry in the accounts). Thattime limit may be extended in accordance withArticle 234.2. Except in the cases referred to in Article232 (2), subsequent entry in the accounts shallnot occur where:a) the original decision not to enter duty inthe accounts or to enter in the accountsat a figure less than the amount of dutylegally owed was taken on the basis ofgeneral provisions invalidated at a laterdate by a court decision;b) the amount of duty legally owed failedto be entered in the accounts as a resultof an error on the part of the customsauthorities which could not reasonablyhave been detected by the person liablefor payment, the latter for his parthaving acted in good faith andcomplied with all the provisions laiddown by the legislation in force asregards the customs declaration;c) the Implementing Provisions of thisCode may exempt the customsauthority from the subsequent entry inthe accounts of amounts of duty lessthan a certain figure.Article 2361. As soon as it has been entered in theaccounts, the amount of duty shall becommunicated to the debtor in accordance withappropriate procedures described in theImplementing Provisions of this Code.2. Where the amount of duty payable has beenentered, for guidance, in the customsdeclaration, the customs authorities mayspecify that it shall not be communicated inaccordance with paragraph 1 unless the amountof duty indicated does not correspond to theamount determined by the authorities.3. Communication to the debtor shall not takeplace after the expire of a period of three yearsfrom the date on which the customs debt wasincurred. But, when for reasons of a penalproceeding, the customs authorities are notable to determine the exact amount of theduties legally due, the debtor may be notifiedeven after the expire of the three year periodSection 2Time limit and procedures for payment ofthe amount of dutyArticle 2371. Amounts of duty communicated inaccordance with Article 236 shall be paid bydebtors within the following periods:a) if the person is not entitled to any of thepayment facilities laid down in theImplementing Provisions of this Code,payment shall be made within theperiod prescribed. An extension shallbe granted automatically where it isestablished that the person concernedreceived the communication too late to\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaenable him to make payment within theperiod prescribed. The customsauthorities at the request of the debtormay also grant extension of the periodwhere the amount of duty to be paidresults from action for post-clearancerecovery. Such extended time limitshall not exceed 10 days;b) if the person is entitled to any of thepayment facilities laid down in theImplementing Provisions of this Code,payment shall be made no later than theexpire of the period or periods specifiedin relation to those facilities.2. Where an application for the remission ofduty is made in accordance with Article 250,251 or 252 or where goods are seized with aview to subsequent confiscation in accordancewith Article 246 (b), (c) (ii), or (d), the debtorsobligation to pay duty shall be subsequent inaccordance with conditions laid down in theImplementing Provisions of this Code.Article 238Payment shall be made in cash or by any othermeans with similar discharging effect inaccordance with provisions in force.Article 239Provided the amount of duty payable by theperson concerned relates to goods declared fora customs procedure which entails theobligation to pay such duty, the customsauthorities shall, at the person’s request, grantdeferment of payment of that amount under theconditions laid down in Articles 240, 241 and242.Article 2401. The granting of deferment of payment shallbe conditional on the provision of security bythe applicant.2. In addition, the granting of deferment ofpayment may give rise to the charging ofincidental expenses for the opening of files forservices rendered.Article 241The customs authorities shall decide which ofthe following procedures must be used whengranting deferment of payment:a) separately in respect of each amount ofduty entered in the accounts under theconditions laid down in the firstsentence of Article 233(1) or in Article235(1); orb) globally in respect of all amounts ofduty entered in the accounts under theconditions laid down in the firstsentence of Article 233(1) during aperiod fixed by the customs authoritiesnot exceeding 31 days; orc) globally in respect of all amounts ofduty forming a single entry inaccordance with the second sentence ofArticle 233(1).Article 2421. The period for which payment is deferredshall be 30 days. It shall be calculated asfollows:a) where payment is deferred inaccordance with Article 241 (a), theperiod shall be calculated from the dayfollowing the date on which the amountof duty is entered in the accounts by thecustoms authorities. Where Article 234is applied, the period of 30 dayscalculated in accordance with thepreceding sentence shall be reduced bythe number of days corresponding tothe period in excess of two days used toenter the amount in the accounts;b) where payment is deferred inaccordance with Article 241 (b), theperiod shall be calculated from the dayfollowing the date on which theaggregation period expires. It shall bereduced by the number of dayscorresponding to half the number ofdays in the aggregation period;c) where payment is deferred inaccordance with Article 241 (c), theperiod shall be calculated from the datefollowing the expire date of the periodduring which the goods in question\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniawere released. It shall be reduced bythe number of days corresponding tohalf the number of days in the periodconcerned.2. Where the number of days in the periodreferred to in paragraph 1(b) and (c) is an oddnumber, the number of days to be calculatedfrom the 30-day period pursuant to paragraph1(b) and (c) shall be equal to half the nextlowest even number.3. To simplify matters, when the periodsreferred to in paragraph 1(b) and (c) are acalendar week or a calendar month, thecustoms authorities may provide that theamount of duty in respect of which paymenthas been deferred shall be paid:a) if the period is a calendar week, on theFriday of the fourth week followingthat calendar week;b) if the period is a calendar month, by the16 day of the month following thatcalendar month.Article 2431. The customs authorities may grant thedebtor payment facilities other than thedeferred payment. The granting of suchpayment facilities shall:a) be conditional on the provision ofsecurity. However, such security neednot be required where to require itwould, because of the situation of thedebtor, create serious economic orsocial difficulties;b) result in credit interest being chargedover and above the amount of duty. Theamount of such interest shall becalculated in such a way that it isequivalent to the amount which wouldbe charged for this purpose in Lek.2. Whatever the payment facilities granted tothe debtor as laid down in the ImplementingProvisions of this Code, the latter may in anycase pay all or part of the amount of dutywithout awaiting expire of the period he hasbeen granted for payment.Article 244A third person instead of the debtor may payan amount of duty owed.Article 2451. Where the amount of duty due has not beenpaid within the prescribed period:a) the customs authorities shall availthemselves of all options open to themunder the legislation in force, to securethe payment of the customs debt.Special provisions shall be provided forin the Implementing Provisions of thisCode, in respect of guarantors withinthe framework of the transit procedure;b) interest on arrears shall be charged overand above the amount of duty. The rateof interest on arrears may be higherthan the rate of credit interest. It maynot be lower than that rate.2. The customs authorities may waivecollection of interest on arrears if the duty ispaid within 5 days of the expire of the periodprescribed for payment.3. The customs authorities may fix:a) minimum periods for calculation ofinterest;b) minimum amounts payable as intereston arrears.CHAPTER 4EXTINCTION OF CUSTOMS DEBTArticle 2461. Without prejudice to the provisions in forcerelating to the time barring of a customs debtand non-recovery of such a debt in case of theinsolvency of the debtor, proved by a Courtdecision, a customs debt shall be extinguished:a) by payment of the amount of duty;b) by remission of the amount of duty;c) where, in respect of goods declared fora customs procedure entailing theobligation to pay duties:i) the customs declaration is invalidatedin accordance with Article 91,\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniav) the goods, before their release, areeither seized and simultaneously orsubsequently confiscated, destroyedon the instructions of the customsauthorities, destroyed or abandonedin accordance with Article 197, ordestroyed or irretrievably lost as aresult of their actual nature ofunforeseeable circumstances or forcemajeure;d) where goods in respect of which a customsdebt is incurred in accordance with, Article217 are seized upon their unlawfulintroduction and are simultaneously orsubsequently confiscated.2. In the event of seizure and confiscation, thecustoms debt shall, nonetheless for thepurposes of the criminal law applicable tocustoms offenses, be deemed not to have beenextinguished where, under Part VIII of thisCode, customs duties provide the basis fordetermining penalties or the existence of acustoms debt is grounds for taking criminalproceedings.Article 247A customs debt, as referred to in Article 231,shall also be extinguished where theformalities carried out in order to enable thepreferential tariff treatment referred to inArticle 231 to be granted are canceled.CHAPTER 5REPAYMENT AND REMISSION OF DUTYArticle 248The following definitions shall apply:a) ‘repayment’ means the total or partialrefund of import duties or export dutieswhich have been paid;b) ‘remission’ means either a decision towaive all or part of the amount of acustoms debt or a decision to render voidan entry in the accounts of all or part ofan amount of import or export dutywhich has not been paid.Article 2491. Import duties or export duties shall berepaid in so far as it is established that whenthey were paid the amount of such duties wasnot legally owed or that the amount has beenentered in the accounts contrary to Article 235(2). Import duties or export duties shall beremitted in so far as it is established that whenthey were entered in the accounts the amountof such duties was not legally owed or that theamount has been entered in the accountscontrary to Article 235 (2). No repayment orremission shall be granted when the factswhich led to the payment or entry in theaccounts of an amount which was not legallyowed are the result of deliberate action by theperson concerned.2. Import duties or export duties shall berepaid or remitted upon submission of anapplication to the appropriate customs officewithin a period of three years from the date onwhich the amount of those duties wascommunicated to the debtor. That period shallbe extended if the person concerned providesevidence that he was prevented fromsubmitting his application within the saidperiod as a result of unforeseeablecircumstances or force majeure. Where thecustoms authorities themselves discover withinthis period that one or other of the situationsdescribed in the first and second sentences ofparagraph 1 exists, they shall repay or remit ontheir own initiative.Article 250Import duties or export duties shall be repaidwhere a customs declaration is invalidated andthe duties have been paid. Repayment shall begranted upon submission of an application bythe person concerned within the periods laiddown for submission of the application forinvalidation of the customs declaration.Article 2511. Import duties shall be repaid or remitted inso far as it is established that the amount ofsuch duties entered in the accounts relates togoods placed under the customs procedure inquestion and rejected by the importer becauseat the point in time referred to in Article 92they are defective or do not comply with the\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaterms of the contract on the basis of which theywere imported. Defective goods, within themeaning of the preceding sentence, shall bedeemed to include goods damaged before theirrelease.2. Repayment or remission of import dutiesshall be granted on condition that:a) the goods have not been used, exceptfor such initial use as may have beennecessary to establish that they weredefective or did not comply with theterms of the contract;b) the goods are exported from thecustoms territory of the Republic ofAlbania.At the request of the person concerned, thecustoms authorities shall permit the goods tobe destroyed or to be placed, for the purposesof their re-exportation, under the transitprocedure or the customs warehousingprocedure or in a free zone or free warehouse,instead of being exported. For the purposes ofbeing assigned one of the customs-approvedtreatments or uses provided for in thepreceding subparagraph, the goods shall bedeemed to be non-Albanian goods.3. Import duties shall not be repaid or remittedin respect of goods which, before beingdeclared to customs declaration, were importedtemporarily for testing, unless it is establishedthat the fact that the goods were defective ordid not comply with the terms of the contractcould not normally have been detected in thecourse of such tests.4. Import duties shall be repaid or remitted forthe reasons set out in paragraph 1 uponsubmission of an application to the appropriatecustoms office within 12 months from the dateon which the amount of those duties wascommunicated to the debtor. However, theDirector General of Customs may permit thisperiod to be exceeded in duly justifiedexceptional cases.Article 2521. Import duties or export duties may be repaidor remitted in situations other than thosereferred to in Articles 249, 250 and 251:a) to be determined in the ImplementingProvisions of this Code;b) resulting from circumstances in whichno deception or obvious negligencemay be attributed to the personconcerned. The situation in which thisprovision may be applied and theprocedures to be followed to that endshall be defined in the ImplementingProvisions of this Code. Repayment orremission may be made subject tospecial conditions.2. Duties shall be repaid or remitted for thereasons set out in paragraph 1 upon submissionof an application to the appropriate customsoffice within 12 months from the date onwhich the amount of the duties wascommunicated to the debtor. However , theDirector General may permit this period to beexceeded in duly justified exceptional cases.Article 253Import or export duties shall be repaid orremitted under the conditions laid down in thischapter only if the amount to be repaid orremitted exceeds an amount fixed inaccordance with the Implementing Provisionsof this Code.However, the customs authorities may alsogrant an application for repayment orremission in respect of a lower amount.Article 254Repayment by the competent authorities ofamounts of import duties or export duties or ofcredit interest or interest on arrears collectedon payment of such duties shall not give rise tothe payment of interest by those authorities.However, interest shall be paid:a) where a decision to grant a request forpayment is not implemented withinthree months of the date of adoption ofthat decision,b) where national provisions so stipulate.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

The amount of such interest shall be calculatedin such a way that it is equivalent to theamount which would be charged for thispurpose on the national money or financialmarket.Article 255Customs Code of Republic of AlbaniaTITLE VIIICUSTOMS VIOLATIONS AND SANCTIONSWhere a customs debt has been remitted or thecorresponding amount of duty repaid by error,the original debt shall again become payable.Any interest paid under Article 254 must bereimbursed.CHAPTER 1GENERAL PROVISIONS ANDDEFINITIONSArticle 2561. Customs violations consist of:a) administrative customs violations;b) smuggling.2. Any act or omission which does not complywith the provisions of this Code and itsImplementing Provisions, and otherdispositions in force, is considered anadministrative customs violation and ispunished as such, save in cases of forcemajeure.3. Subtracting by any means of goods from thecustoms control and/or supervision of goods,with the intention of evading or attempting toevade the payment of import and export dutieslegally due as referred to in Article 276 until280, and any of the behaviors referred to in thesame Articles, are considered smuggling andpunished as such.4. The payment of penalties applied forcustoms violations, will in no case exempt theviolator from the payment of customs dutieslegally due for the goods subject of theviolation.CHAPTER 2ADMINISTRATIVE CUSTOMSVIOLATIONSArticle 2571. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation, the indication in the cargomanifest of a vessel or an aircraft, of a quantityof goods different from that verified by thecustoms authorities.2. A fine of 10.000 Lek for each package, or afine of 30.000 Lek for each ton, when thecargo is in bulk, will be applied to the captainof the vessel or aircraft who commits such aviolation.3. For the purposes of this Article, when theexceeding packages have the same marks andnumerical figures as the packages indicated inthe manifest, the packages classified in a tariffclassification corresponding to higher duties,shall be considered as the ones not indicated.4. When the verified differences are smallerthan 5% of the quantity indicated in themanifest, no sanction will be applied.Article 2581. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation if any conduct by the captainof the vessel consists of:a) delaying the presentation of the manifest.A fine of 40.000 Lek for each 5 hours ofdelay will be applied. The hours that thecompetent customs authority is not openwill not be calculated;b) refusing to receive customs authoritieson board. A fine of 300.000 Lek to500.000 Lek will be applied;c) departing without the permission ofcustoms authorities. A fine of 300.000Lek to 500.000 Lek will be applied;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania2. The fines referred to in this Article areapplied regardless of any other sanctionsapplicable for the same or similar reasons asprovided for by the legislation on maritimenavigation.Article 2591. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation if any conduct by the captainof an aircraft consists of :a) delaying the presentation of the manifest.A fine of 40.000 Lek for each 5 hours ofdelay will be applied. The hours that thecompetent customs authority is not openwill not be calculated;b) refusing to receive customs authoritieson board. A fine of 300.000 Lek to500.000 Lek will be applied;c) departing without the permission ofcustoms authorities. A fine of 300.000Lek to 500.000 Lek will be applied.2. The fines referred to in this Article areapplied regardless of any other sanctionsapplicable by other authorities for the same orsimilar reasons as provided for by thelegislation on air navigation.Article 2601. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation if any conduct by the personwho transports goods by land, consists of:a) deviating from the itinerary determinedby the customs authorities. A fine thatvaries from 50.000 Lek to 150.000 Lekwill be applied;b) delaying the presentation of the goods atthe competent customs authorities. Afine 30.000 Lek will be applied for each5 hour delay. The hours during which thecompetent customs office was closedshall not be calculated for this purpose;c) departing without the permission ofcustoms authorities. A fine of 100.000Lek to 300.000 Lek will be applied;d) transports packages, pots or goods ingeneral, more or less than those indicatedin the documents that accompanies thegoods. A fine that varies from 50.000Lek to 100.000 Lek will be applied;e) violating the provisions in force of theTIR Convention and its Annexes, whereare listed the responsibilities of theperson who transports goods, inside orthrough the customs territory. A fine thatvaries from 50.000 Lek to 100.000 Lekwill be applied.Article 2611. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation the indication of a quality,quantity, value or origin different from thatverified by the customs authorities, while thedeclarant lodges the declaration for goods to bereleased for free circulation. A fine that variesfrom 30.000 Lek to 100.000 Lek will beapplied. In cases of differences in quantity,besides the fine the undeclared goods andfound in execs are confiscated as well.2. After the declaration is revised, in the eventduties legally due are higher than thosecalculated according to the customsdeclaration, with the difference exceeding 5%,instead of the said fine, a fine of three timesthe amount of the difference of the unpaidduties shall be applied.3. However, if such a difference is caused byerrors made in good faith during thepreparation of the customs declaration, and ifthe declarant has supplied all the necessaryinformation for the customs verification, a finethat varies from one tenth to the whole amountof the same difference shall be applied.4. The fines mentioned above shall applymutatis mutandis whenever the customsauthorities verify a value or origin differentfrom that indicated in the declaration for goodsto be placed under any customs procedure,other than transit procedure.Article 262\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania1. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation, the presentation of thegoods placed under transit procedure at acustoms office different from that of thecustoms of destination.2. A fine that varies from 100.000 Lek to200.000 Lek will be applied to the declarant orthe guarantor.Article 2631. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation the indication in the transitdocuments, as registered at the customs officeof departure, of a quantity different from thatverified at the customs office of destination.2. A fine that varies from one to three timesthe amount of duties legally due on the verifieddifference will be applied to the declarant orthe guarantor.Article 2641. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation the indication in the transitdocuments, as registered at the customs officeof departure of a quality different from thatverified at the customs office of destination,upon the arrival of goods.2. A fine which varies from one to three timesthe amount of duties legally due on the verifiedgoods at the customs office of destination notcorresponding with the quality verified by thecustoms office of destination, will be appliedto the declarant or the guarantor.Article 2651. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation declaring and/or recording aquality or quantity of goods stored in acustoms warehouse, different from thatverified by the customs authorities.2. A fine of three times the duties payable ongoods verified to be different in quality orquantity will be applied to the warehousekeeper or the depositor, when the deposit ofgoods is under his responsibility.3. Without prejudice to the provisions aboutsmuggling, if the difference in quantity is morethan 20%, for more or less, the warehousekeeper is compelled to release immediately forfree circulation all the goods registered in hisname. In the case there have been previouslyidentified differences in quantity of goodsderiving from the warehouses managed by thesame person, exceeding 20%, even if it relatesto goods of a different quality, the customsauthorities revoke the authorization for theadministration of the customs warehouse for atleast one year.Article 2661. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation the indication in thesummary declaration, used for placing goodsin temporary storage for the purpose ofArticles 75 to 78 of this Code and itsImplementing Provisions, of a quantity orquality of goods in temporary storage differentfrom that verified by the customs authorities.2. The sanctions below will be applied to theauthorized person or persons referred to inArticle 69 paragraph 2 who lodged thesummary declaration, and committed such aviolation:a) the payment of duties legally due on themissing goods. Duties will be calculatedon the basis of the elements of thesummary declaration or will be deductedfrom other estimations in the highestapplicable measure of the day ofintroduction, or of the confirmation ofthe storage; andb) the payment of a fine of one to threetimes the duties legally due according toparagraph (a)Article 2671. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation the indication in thedeclaration of temporary importation of goodsplaced under inward processing procedure, of aquality or quantity different from that verifiedby the customs authorities.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania2. The fines below, will be applied to thedeclarant who commits such a violation:a) in the case a difference in quality isverified, the payment of a fine up to threetimes the amount of duties on the goodsverified.b) in the case a difference in quantity isverified, the payment of a fine thatvaries:i) from two to five times the dutieslegally due on the goods missing or inexcess,ii) from half, to the whole amount of theduties legally due on the goodsmissing or in excess, when thedifference verified is caused by amistake of calculation or error ofwriting in good faith by the declarant.Article 2681. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation the indication in thedeclaration of re-exportation of goods placedunder temporary importation or inwardprocessing procedure of a quality or quantitydifferent from that verified by the customsauthorities.2. The fines below will be applied to thedeclarant who commits such a violation:a) in the case a difference in quality isverified, the payment of a fine that variesfrom one to three times the duties legallydue on the goods temporary imported,rather than those actually presented for reexportation.b) in the case a difference in quantity isverified, the payment of a fine thatvaries:i. from two to five times the importduties legally due on the missinggoods;ii. from two to five times for the goodsin excess.Article 2691. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation the indication in thedeclaration of temporary exportation, of goodsplaced under outward processing procedure, ofa quality or quantity different from thatverified by the customs authorities.2. The fines below will be applied to thedeclarant who commits such a violation:a) in the case a difference in quality isverified, a fine that varies from one tothree times the amount of the differenceof the duties legally due on the goodsindicated from those verified;b) in the case a difference in quantity isverified, the payment of a fine thatvaries from two to five times the dutieslegally due on the verified difference,Article 2701. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation the indication in thedeclaration of re-importation of goods, placedunder outward processing procedure, of aquality or quantity different from that verifiedby the customs authorities.2. The fines below will be applied to thedeclarant who commits such a violation, aswell as he may be revoked the authorization:a) In the case a difference in quality isverified, the payment of a fine that variesfrom one to ten times the duties legallydue on the goods verified to be differentb) In the case a difference in quantity isverified, the payment of a fine thatvaries:i) from two to five times the import dutieson the goods in excess;.ii) from two to five times for the goodsthat are missing;Article 2711. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation the re-exportation of lessquantity of goods, placed under inward\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaprocessing procedure suspensive system, afterthe bill of discharge is lodged.2. The fines below will be applied to theholder of the authorization:a) In the case the missing goods areverified at the location of the holder ofthe authorization, the payment of a finethat varies from one to three times theamount of duties legally due on thosegoods (compensating products ortemporary imported goods in theirunaltered state);b) In the case the missing goods are notverified at the location of the holder ofthe authorization, the payment of anadditional fine equal to the wholeamount of the duties legally due ofthose goods (compensating products ortemporary imported goods in theirunaltered state), presuming that theywere released for free circulationwithout the relevant customsauthorization, shall be applied.In both cases the holder of an inwardprocessing authorization has to lodge adeclaration for the clearance of the missinggoods.Article 2721. It is considered an administrative customsviolation the failure to lodge on time the bill ofdischarge for goods placed under inwardprocessing procedure suspensive system.2. A fine that varies from 50.000 Lek to200.000 Lek will be applied to the holder ofthe authorization who commits such aviolation.Article 2731. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation, the failure to comply withthe time limits within which goods placedunder the temporary importation procedure asreferred to in Articles 157 to 164, had to be reexportedor assigned a new customs-approvedtreatment or use.2. A fine according to the ImplementingProvisions of this Code, will be applied to theperson authorized to use goods placed undertemporary importation procedure a fine fromthe half to the whole amount of duties legallydue on those goods shall be applied.Article 2741. Without prejudice to the provisions aboutsmuggling, it is considered an administrativecustoms violation the failure to present thecustoms declaration within the termsestablished in this Code.2. A fine of 20.000 Lek for each day of delaywill be applied to the declarant who commitssuch a violation.Article 2751. A fine that varies from 50.000 Lek to200.000 Lek will be applied for violations asreferred to in Article 256 paragraph 2 whichare not specifically set forth in this Chapter.2. When the same violator has committedmore than one administrative customsviolations at the same time, as referred to in theprovisions of this Code, a separate fine will beapplied for each violation.CHAPTER 3SMUGGLINGArticle 2761. Commits smuggling by moving goodsthrough the land borders and customs areas theperson that:a) introduces goods through the land bordersin violation with the provisions of thisCode and its Implementing Provisions;b) unloads or deposits goods in theintermediary space between the border andthe closest customs office;c) is found with goods hidden on his body orhis luggage, packages, in articles carrying,or goods of other kind or any means oftransport intending to evade the customssupervision;d) removes goods from customs areaswithout paying the customs duties legally\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniadue, or without having guaranteed thepayment, except the cases of exemptionfrom the obligation of providing aguarantee, as provided in this Code;e) takes away from the customs territory ofthe Republic of Albania, in any of theconditions above, goods that are subject toexport duties;f) keeps goods in proximity of the customsline, for which he can produce no evidenceof the legitimate derivation;g) refuses to present the manifest and theappropriate documents;h) loads, unloads, or transships goods,passengers or their luggage, without apermission from the customs authorities.Article 277Commits smuggling in the movement of thegoods through the bordering lakes the captainof the ship that introduces through the lakes ofOhrid, Shkodra, and Prespa, goods withoutbeing subject to any of the closest customsoffices.Article 278Commits smuggling in the maritime movementof the goods the captain of the ship who:a) transports goods through the sea border, incontradiction with this Code and itsImplementing Provisions;b) approaches, without the permission of thecustoms authorities, while transportinggoods in the ship, the port or throws theanchor, or stays in proximity of the harbor.c) transports goods, lands in places wherethere are no customs offices, unloads ortransships those goods in contradictionwith this Code or its ImplementingProvisions;d) transports the goods without the relevantmanifest;e) at the time of departure does not have onboard the goods, although they weresupposed to be loaded according to themanifest or other customs documents;f) transports goods from a customs office toanother one without the relevant transitdocuments.Article 279Commits smuggling in the movement by air ofthe goods the captain of the aircraft who:a) introduces goods in the customs territoryof the Republic of Albania by air incontradiction with this Code and itsImplementing Provisions;b) transports goods without the relevantmanifest;c) at the time of departure does not have onboard the goods, although they weresupposed to be loaded according to themanifest or other customs documents;d) transports goods from the place of landingof the aircraft without performing therespective customs formalities;e) lands out of a customs airport, and doesnot notify its landing to the customsauthorities or other police authoritieswithin the shortest time. In such cases it isconsidered introduced by smuggling,besides the cargo, even the aircraft itself.f) loads, unloads, or transships goods, peopleor their luggage without permission fromthe customs authorities.Article 280It is also considered smuggling:a) use of goods, released for free circulation,after being imported with partial or totalrelief from customs duties by reason oftheir end -use or specific use, completelyor partially inconsistent to the conditions,on which basis the partial or total reliefwas granted;b) exportation or importation of prohibitedgoods or restricted goods save in the caseswhen it exists a permission in writingissued by the competent authorities;c) possession of goods against therestrictions and bans referred to in article83, paragraph 2 of this Code;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniad) removal or falsification in any way of theidentification number of the means oftransport. Collaborators in this violationare considered and punished as suchanyone who carries out respective acts,also including the technical persons, aswell as the owner or any other person whobenefits from this falsification ortransferring;e) purchase, selling, preservation, andpossession of goods imported fromindividuals, who are or should reasonablyhave information that these goods areintroduced in smuggling;f) throwing goods, for which the customsduties legally due are not paid, during thetrip through the customs territory of theRepublic of Albania;g) importation, exportation, sale of goodswith national cultural value, against thelegal norms in force in this field;h) breaking the seal, substitution or changesof other security signs placed on themeans of transport or on the goods.CHAPTER 4SANCTIONS OF SMUGGLINGArticle 2811. The violation referred to in Article 256paragraph 3 and specified in Articles 276to 280, is punished with:a) confiscation of goods subject ofsmuggling even if they are not subjectof customs duties;b) b) a fine which varies from two to fivetimes the duties legally due on thegoods that are subject of smuggling,besides the punishment provided for inthe Penal Code.2. Each violator, is liable jointly and severally,to the fine above mentioned, according to thedegree of his participation.3. The fact that they are liable jointly andseverally means that each of them has the dutyto fully perform the obligation and the customsauthorities may demand payment or sue one ormore of parties to such liability, separately orall together, depending on the option. If one ofthe parties pays the full amount, the others arefree of any obligation to the customsauthorities for the fine in question.4. When the same violator commits at thesame time several violations, referred to in thisChapter, each violation shall be punishedseparately.Article 281/11. In the cases of recidivism in smuggling, thesanction applicable shall be twice as theprevious one.2. The attempt of smuggling will be punishedas if the act was consummated.Article 281/2The violator besides theadministrative punishment provided for in thisCode, shall be subject of the penal proceedingsin accordance with the provisions of theCriminal Code.Article 2821. For the purpose of this Chapter “object ofsmuggling” means goods subject of smugglingas well as the means of transport and otherobjects used to transfer or to hide them.Without prejudice to other laws governing thisfield the said goods are seized by the customsauthorities and afterwards, upon decision ofthe competent judicial authorities may beconfiscated, and thereafter shall be treated inaccordance with the legislation in force.2. The seizure of these objects of smugglingtakes place regardless of the degree ofparticipation in smuggling of anybody who hasthe right on those objects.3. Where the person responsible for smugglingpossesses the seized objects referred to in thisArticle, as a consequence of a criminal act, thegoods are given back to the owner.4. Means of transport are exempted from theseizure, whenever:a) on the basis of the evidences inpossession, their owner is not involved inthe act of smuggling;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniab) the owner possesses the means of transportin good faith as a result of legalprocedures of trade, without beingreasonably able to know that this was ameans or object of smuggling, or of othersimilar act or crime.5. In case perishable goods are seized thejudicial authorities when there are enoughevidences may take a decision regarding theconfiscation of those goods within 48 hoursfrom the time the case is transferred with him,so that those goods are not depreciated.6. In cases that means of transport are seized,the judicial authorities, when there are enoughevidences may take a decision regarding theconfiscation of those means of transportregarding their confiscation within 5 days. Inany case when this time limit terminates, thecustoms authorities may request from thejudicial authorities that these means oftransport to be given to the customs authoritiesfor use whilst carrying out their duty. Thecustoms authorities are liable for any expenseregarding the use and maintenance of thesemeansArticle 283Objects of smuggling as referred to in Article282, are seized:a) where the act of smuggling is beingperformed. The act of smuggling is beingperformed, when the goods are notplaced yet in the definitive storage place,which may be the house, the shop, thewarehouse or any other location assignedto the goods by the person responsiblefor smuggling or any other accomplice.The act of smuggling is also consideredas being performed when the responsibleperson is caught nearby the locationsmuggling is performed, having in hispossession evidences or is caughtpursuant to notification by other persons;b) where the act of smuggling is completed.In this case the object of smuggling hasbeen definitively placed in the placeassigned by the person responsible or theaccompliceArticle 284No right of compensation may be arisenagainst the customs authorities or theGovernment of the Republic of Albania forreasons of damage and decrease of valuation,deriving from the seizure or confiscation of thegoods subject or object of smuggling.CHAPTER 5VERIFICATION OF CUSTOMSVIOLATIONSArticle 2851. The administrative violations areascertained and penalized by the customsauthorities in accordance with the provisionsof Articles 256 through 275. In the cases ofsmuggling, the customs authorities determineand collect the amount of fine to be applied inthe specific case, while the judicial authoritiestake their normal procedural measures for theapplication of additional measures provided forby the Penal Code.2. For the purposes of this chapter, ‘competentcustoms authorities’ hereinafter are called thecustoms authorities that exercise supervision inthe area where the violation has beencommitted and verified.3. The violations of the provisions of thisCode and its Implementing Provisions arecertified with a written report.4. The written report must be lodged andregistered on the records of the competentcustoms authorities, and should be signed by atlest 2 customs employees.5. The same provision applies when other lawsare violated, in cases that such application isrequired totally or partially by the customsauthorities.6. Customs authorities with a view to prevent,verify and repress the customs violations, maycarry out all the necessary controls at theeconomic operators, their warehouses and allthe premises where they keep their accounts.Article 2861. The written report shall contain:a) the place, the date and the time where theviolation is verified;\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniab) the names of the persons who sign thereport and the authority that theyrepresent;c) identifying information related to theperson or persons who have committedthe customs violation;d) the kind of violation committed;e) the way that the violation wascommitted;f) the identification of the means oftransport;g) the indication of the quantity, quality,value, origin or tariff classification ofgoods object of the violation;h) indications of objects of smugglingwhich will probably be seized;i) the amount of duties legally due;j) the articles that are violated, the articleson the basis of which the fines are fixedas well as the sanctions provided for, foreach violation;k) the signatures of the customs employeesand when possible, that of the violator.2. The customs authorities must notifyimmediately the person or persons responsiblefor the violation about the registered reportmentioned in the above paragraph.3. The customs authorities have to examinethe violator and the witnesses by notifyingthem the invitation to present themselves orlodge a statement, fixing a date and time forthat purpose. The time limit may not exceed 10days from the date of notification. In flagrantcases the inquiry of the violators and thewitnesses is done immediately. As witnessesare considered all those who might beaccomplices on that violation, as well as thecustoms officers or employees who haveverified the customs violation and signed therelevant report.4. In case the violator or the witnessesparticipate in the inquiry session personally,two authorized officers lead the inquiry sessionduly recording it.5. The testimony has to be signed by theviolator, the witnesses when they are present,and by both the customs officers or employeeswho lead that inquiry session.6. When any of the violators or the witnessesis a foreign citizen, the inquiry session will becarried out in the presence of an interpreter asprovided for in the Criminal Procedure andCivil Procedure Codes.Article 2871. The customs authorities after administeringthe relevant file, issues the respective decision.The relevant file contains:a) the registered report of verification of theviolation, as laid down in Article 286;b) the relevant documents;c) the statements and testimonies ofviolators and/or witnesses;2. Where, in accordance with the provisions ofthis Code, the application of a fine provides fora minimum and maximum, the following willbe taken into consideration in determining itsamount :a) the statements and testimonies of theviolator and/or witnesses;b) the seriousness of the violation;c) the behavior of the violator with regardto eliminate the evidences andconsequences of the violation;d) the ways that the violator has followed inorder to commit such violation;e) the number of the violators;f) whether the same violator has committedthe same violation in continuos basis;g) the economic conditions of each violatorand the degree of each one’sparticipation.Article 2881. When the customs violation is smuggling,the report with the relevant file as referred to inArticle 287(1) shall be transferred to the\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniacompetent prosecution office within 24 hoursfrom the time of verification.2. In cases that Article 291(1) of this Codeapplies, the above mentioned file is attached tothe decision of the customs authoritiesregarding the fulfillment of the conditionsreferred to in the same Article.Article 2891. The decision of the competent customsauthority for the payment of the customs dutiesfor the purpose of Article 256 (4) and therespective fines determined according toArticle 287 (2), has to be taken and notified tothe person accused within 24 hours from themoment of the verification of the offense. Inorder to assure the customs debt the provisionsof article 245 of this Code are applicable.2. The person concerned may lodge a justifiedappeal against the decision of the customsauthorities referred to in paragraph 1, to theDirector General of Customs within 5 daysfrom the date of notification. If the personconcerned does not pay the amount mentionedin paragraph 1, and does not lodge an appeal tothe Director General, the customs authoritiestake all the measures to proceed withcollection of the amount of the customs debtand the fine, according to the provisionsprovided for in Article 245 of this Code.3. In order to lodge the appeal, the appellanthas to pay the total amount of the customsduties legally due, and to deposit, in advance,in a bank account with the General Directorateof Customs an amount equal to 40% of thetotal amount of the fine applied by the customsauthorities. The amount that corresponds to the40%, in no case shall exceed the total amountof the duties legally due on the goods subjectof the violation.4. The Director General shall take a decisionwithin 30 days from the date the appeal wasreceived. The Director General notifies thedecision to the interested person and thecompetent customs authority.5. When the appeal is rejected, the appellantshall pay the rest of the fine, 60%, and mayappeal against the definitive decision of theDirector General at the juridical authoritieswithin 30 days from the date of the notificationof the rejection of the appeal by the customsauthorities.6. Where the juridical authorities accept theappeal, the deposited amount is paid back tothe appellant. Such an amount is paid backonly when the said decision becomesdefinitive.Article 290Where the customs violation constitutessmuggling, the customs authorities after havingstarted the procedures referred to in Article289 for the collection of customs duties legallydue for the goods object of smuggling and therespective fines, transfer the whole file inaccordance with article 287 (1) to thecompetent judicial authorities, within 48 hoursfrom the moment of verification. The customsauthorities determine, in the report sent tothese authorities, the fine applicable in theconcrete case, as provided in Article 287 (2).Article 2911. The person concerned may request to thecustoms authorities the solution inadministrative way of the act of smugglingwhen the following conditions are fulfilled:a) the penal prosecution has not startedyet;b) the amount of the duties legally due onthe goods involved in smuggling is lessthan 5 million lek; andc) the responsible person pays the amountof the customs duties and the finesapplied to him; andd) accepts to give up his right of appeal,referred to in Article 289.Upon the proposal of the Minister of Finance,the Council of Ministers may change the fixedlimit referred to in subparagraph (b) of thisArticle.2. The seizure applied to the goods object ofsmuggling and the arrest of the violator,whenever it is made, is removed immediatelyafter the customs authorities verify that all the\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albaniaconditions referred to in paragraph 1 of thisarticle are fulfilled.3. This article shall not apply where:a) the act of smuggling is committed by astate officer or employee, a customsagent, or any other person whoseactivity is connected to that of customsauthorities; orb) the violator possesses the subject ofsmuggling as a consequence of acriminal act; orc) the goods subject of smuggling areprohibited or restricted goods, asreferred to in Article 83 (2) of thisCode, or they are goods of nationalcultural value;d) the violator is a recidivist.Article 292The competent judicial authorities, based onthe penal charges, pressed by the customsauthorities in accordance with Article 288 ofthis Code, shall start the necessary proceduresfor the penal proceeding.Article 2931. The judicial policy authorities referred to inArticle 9(4) of this Code have the right toarrest and detain, according to Article 251 and253 of the Criminal Procedures Code, personswho have committed smuggling.2. When the person is released in accordancewith Article 291(2) the respective file togetherwith the decision for the solution of the case inadministrative way shall be sent to thecompetent judicial Authorities within 24 hours.Article 2941. The customs officers may be authorized bythe Head of competent Customs authorities toaccess information, or search for evidences oncustoms violations referred to in this Code andits Implementing Provisions.2. This information may be searched andobtained at the proper places of productionactivity or commercial premises, and in anyother places where documents or recordsrelated to the goods subject of the customsviolations are kept. The information regardingsmuggling, when the penal proceeding hasstarted, is gathered in accordance with theprovisions of the Criminal Procedure Code.Article 295All civil public institutions and the border andorder police, as well as all their members ordependents are obliged to assist the customsauthorities in the enforcement of the customsmatters and rules, whenever those authoritiesso demand.Article 296The revenue deriving from the application ofsanctions and sale of confiscated subjects ofsmuggling, shall be divided as follows:a) 50 % to the State budget;b) the remaining 50% shall be dividedaccording to the percentage determinedby the Minister of Finance as follows:i) investments and expenses for theimprovement of the workingconditions for the personnel;ii) incentives for the customs personnelwhich has participated, directly orindirectly, in the discovery andverification of these violations;iii) incentives for the informers whohave enabled the discovery of theviolations.TITLE IXFINAL PROVISIONSArticle 297\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc

Customs Code of Republic of Albania1. The transition period lasts one month fromthe date of the entry into force of this Code andits Implementing Provisions. With theexception of the provisions of Title VIII of thisCode, during this transition period theprocedures provided for in Law No. 7599,dated 02/09/1992 “For the Customs Code ofthe Republic of Albania” and further changes,shall continue to be applied.2. At the end of the transition period thefollowing Laws shall be repealed:(1) Law No. 7599, date 02.09.1992, “Forthe Customs Code of the Republic ofAlbania”.(2) Law No. 8020, date 01.11.1995, “Forsome changes in Law No. 7599, date02.09.1992, “For the Customs Code ofthe Republic of Albania”.(3) Law No. 8148, date 11.09.1996, “Forthe approval with some changes of theDecree No. 1578, date 13.08.1996 “Forsome changes in Law No. 7599, date02.09.1992, ‘For the Customs Code ofthe Republic of Albania’.(4) Law No. 8263, date 15.12.1997, “Foran amendment in the Law No. 7599,date 02.09.1992, “For the CustomsCode of the Republic of Albania”.(5) Law No. 8187, date 23.01.1997, “Forthe Customs Value” shall be repealed(6) The articles 1, 3, 17, 18, 19, 20/1, 20/2,20/3, 20/4, 20/5, 21 of Law No.7609,date 22.09.1992 “For the customsTariffs”, amended by other laws, aswell as any other provision of this Lawthat does not comply with this Code;(7) In the Decree No. 1074, date02.04.1995, “For the dissolution of theFinance Police and creation of theCustoms Police and Taxation Police”,approved by Law No. 7938, date24.05.1995, the provisions regardingthe Customs Police shall be repealed.(8) In Decree No. 1701, date 09.01.1997.“For an addition to the Decree No.1074, date 02.04.1995, “For thedissolution of the Finance Police andcreation of the Customs Police andTaxation Police”, approved by Law No.7938, date 24.05.1995, the provisionsregarding the Customs Police shall berepealed.(9) as well as any other provision whichdoes not comply with this Code.(10) the new customs taxes shall come intoforce after 31 March 1999, with aspecific Law.Article 298In the transition period between the approvalof this Code by the Parliament until the daywhen it comes into force, the Council ofMinisters is entitled to approve theImplementing Provisions of this Code, in thefield of the organization of the customsadministration, the factors on the basis ofwhich the customs duties shall beimplemented, provisions applicable for thegoods entering or leaving the customs territory,of the customs approved treatment or use,privileged operations and the customs debt, aswell as in the field of the customs violations,which shall come into force on the same datewhen this Code comes into force.Article 299This Law shall enter into force 15 days afterthe publication on the Official Journal.\\Ds2\admin\Kareem - Online Library Rebuild (Do Not Delete)\Pending\Albania\Customs Code of Albania (eng).doc