WORLD TRADE
ORGANIZATIONG/VAL/N/1/LVA/1
17 March 1999
(99-1075)
Committee on Customs Valuation Original:  English
NOTIFICATION UNDER ARTICLE 22.2 OF THE
AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF
THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
REPUBLIC OF LATVIA
The following communication, dated 4 March 1999, has been received from the Permanent
Mission of Latvia.1
_________________
Referring to the commitments contained in paragraph 124 of the Report of the Working Party
on the Accession of Latvia to the WTO (WT/ACC/LVA/32 of 30 September 1998), the Permanent
Mission of Latvia has the pleasure to attach the following notifications under the Agreement on
Implementation of Article VII of the GATT 1994:
(1) the regulations of the Cabinet of Ministers Procedure for calculation of the customs value of
goods;  and
(2)  the Customs Law
                                                     
     1English only.G/VAL/N/1/LVA/1
Page 2
CABINET OF MINISTERS OF THE REPUBLIC OF LATVIA
17. December, 1997                                                                         Regulations no. 428
Riga                                                                                                 (prot. no.       )
Issued in accordance with the
Customs Law Articles 126. and 161.
PROCEDURE FOR CALCULATING THE CUSTOMS VALUE OF GOODS
I. TERMINOLOGY USED IN THE REGULATIONS
1. Data processing equipment  - any machinery or equipment in which data is processed, as well
as such equipment which is included or works in conjunction with machinery that fulfils other
functions.
2. Accounting principles  - recognised consensual or substantial authoritative support within a
country at a particular time as to which economic resources and obligations should be recorded asassets and liabilities, which changes in assets and liabilities should be recorded, how the assets and
liabilities should be measured, what information should be disclosed and how it should be disclosed,
and which financial statements should be prepared.
3. Customs valuation declaration  - a document which the declarant submits to the customs
authorities together with the customs declaration in order to determine the customs value of the goods.
4. Buying commission  - means fees paid by an importer to his agent for the service of
representing him in a purchase of  the goods being valued.
5. Place of introduction of goods :
5.1. the port of unloading or transhipment (if th e act of transhipment is noted in the customs
control post for the port) - for goods imported by sea transport;
5.2. any airport registered in the Republic of Latvia - for goods imported by air transport;5.3. the delivery address - for goods sent by post;
5.4. the place where the customs border of the Republic of Latvia is crossed - for goods which are
imported by rail, road, internal waterways or in any other way;
6. Sale of goods in the greatest aggregate quantity  - the greatest number of units of the goods
which are sold for one price.
7. Marketing activities  - all activities relating to advertising and promoting the sale of the goods
in question and all activities relating to warranties or guarantees in respect of  them.
8. Goods of the same class or kind  - goods which fall within  a group or range of goods
produced by a particular industry or industry sector. This notion includes both identical and similargoods within the meaning of Articles 162 and 163 of the Customs Law.G/VAL/N/1/LVA/1
Page 3
II. GENERAL QUESTIONS
9. These Regulations prescribe the procedure how the customs value of goods (henceforth -
customs value) imported into the customs territory of the Republic of Latvia or exported from the
customs territory of the Republic of Latvia is calculated.
 
10. The customs authority which carries out the processing of cargo documentation has the rightto examine the correctness of the customs valuation method selected by the declarant.
 
11. The customs value indicated by the declarant and information relating to its determination
must be true and the facts documentarily corroborated. If the declarant cannot submit true information
and documentarily corroborated facts to the Customs authorities, the customs authorities have the
right to use the information at their disposal and make appropriate corrections to the said customsvalue, if necessary.
 
12. To determine the customs value, customs authorities may use information prepared abroad,
based on the principles of accounting in the respective country.
 
13. If after the customs value has been determ ined it becomes clear that the information
submitted for determining the customs value was untrue or incorrect, then the initially determined
customs value is not recognised and the customs value is determined anew.
 
14. All extra expenses incurred by the declarant in  determining the custom s value with regard to
specifying the customs value or submitting supplemen tary information to the customs authorities must
be paid by the declarant.
 
15. If the declarant requires additional time to determine the customs value, he may request the
customs authority  to release the goods for free circulation against the appropriate security.
 
16. The customs authorities have the right to demand any information and documents necessaryto determine the customs value.
 
17. A copy of the invoice, on the basis of which, the value of the imported goods is being
declared, must be submitted to the customs authority. If the customs value is declared in writing, this
copy shall be retained by the customs authority.
 
18. If the Customs authorities have doubts about the declared customs value, they can demandsupplementary information. If the doubts remain after receipt of the supplementary information, the
Customs authority shall inform the declarant and give an opportunity to submit any relevant
explanations before arriving at a final decision.
 
 19. The applicant is informed in writing of the final decision and the reasons why the decision
was taken. The applicant is informed about his rights to appeal against the decision.
 
20. Charges for interest under a financing arrangement entered into by the buyer and relating tothe purchase of imported goods, irrespective of whether the finance is provided by the seller or
another person, provided that the financing arrangement has  been made in writing and where
required, the buyer can demonstrate that:
20.1. such goods are actually sold at the price declared as the price actually paid, and
20.2 the claimed rate of interest does not exceed the level for such transactions prevailing in the
country where, and at the time when, the finance was provided,G/VAL/N/1/LVA/1
Page 4
shall apply mutatis mutandis  where the customs value is determined by applying a method
other than the transaction value.
21. Where containers referred to in Article 168 (1) 1) b) of the Customs Law are to be the subject
of repeated importations, their cost shall, at the request of the declarant, be apportioned, asappropriate, in accordance with generally accepted accounting  principles.
 
22. The customs value of goods to be exported corresponds to the value of the goods transaction -
the price actually paid, payable or that may be paid for the said goods.
 
23. The declarants determined value of goods, which in accordance with the Latvian Goods
Combined Nomenclature are classified under tariff headings 4901; 9701; 9702; 9703; 9706, and areolder than 50 years, is checked by experts from the State Culture Statue Protection Inspectorate, their
customs value being shown on the export permit.
III. VALUATION OF GOODS BY THE TRANSACTION VALUE, IN ACCORDANCE
WITH ARTICLE 165. OF THE CUSTOMS LAW
24. The price actually paid or payable referred to in Article 165. of the Customs Law is the total
payment made by the buyer, or which the buyer must make to the seller for the imported goods and
includes all payments made or to be made to the seller in accordance with the conditions of the sale,
or to a third party in order to meet all commitments to the seller. Payment may be made directly or
indirectly, by bank transfer, in cash or in any other way acceptable to the buyer.
25. Activities, including marketing activities, undertaken by the buyer on his own account, other
than those for which an adjustment is provided in of Article 168 of the Customs Law, are not
considered to be an indirect payment to the seller, even though they might be regarded as of benefit to
the seller or have been undertaken by agreement w ith the seller, and their cost shall not be added to
the price actually paid or payable in determining the customs value of imported goods.
26. For the purposes of determining customs value of goods in regard to which the price has not
actually been paid at the material time for valuation for customs purposes, the price payable for
settlement at the said time  shall as a general rule be taken as the basis for customs value.
27. Where goods declared for free circulation are part of a larger quantity of the same goods
purchased in one transaction, the price actually paid or payable shall be that price represented by the
proportion  of the total price which the quantity so declared bears to the total quantity purchased.
28. Apportioning the price actually paid or payable sh all also apply in the case of the loss of part
of a consignment or when the goods  being valued have been damaged before entry into freecirculation.
29. Where the price actually paid or payable includes an amount in respect of any internal tax
applicable within the country of origin or export in respect of the goods in question, the said amount
shall not be  incorporated in the customs value prov ided that it can be demonstrated to the satisfaction
of the customs authorities concerned that the goods in question have been or will be relieved
therefrom for the benefit of the buyer.
30. For the purposes of Article 168 (1) 2) d) of the Customs Law, the cost of research and
preliminary design sketches is not to be included in  the customs value.
31. Where, in applying Article 165 (2) 2) of the Customs Law, it is established that the sale or
price of imported goods is subject to a condition or consideration the value of which can beG/VAL/N/1/LVA/1
Page 5
determined with respect to the goods being value d, such value shall be regarded as an  indirect
payment by the buyer to the seller and part of the price actually paid or payable provided that the
condition or consideration does not relate to either:
31.1. marketing activities, if they are carried out by the buyer. The said activities are carried out at
the buyers own expense even if such activities are foreseen in the contract signed between the
buyer and seller;
31.2. activities, in respect of which an addition is to be made to the price actually paid or payable
under the provisions of Article 168  of the Customs Law.
32. The expenses referred to in Article 168. (1). 3). of the Customs Law include payment for the
right to use intellectual property and licence fees. By these payments are understood payments for therights for:
32.1. manufacture of the imported goods (in particular, patents, design, models and special
professional information);
32.2. sale of the imported goods for export (in particular, trade mark, registered designs);32.3. use or resale of the imported goods (in particular, copyright, manufacturing processes
inseparably embodied in the imported goods).
33. Payment for the right to use intellectual property and licence fees shall be added to the price
actually paid or payable only if this payment is in relation to the goods being valued, and  constitutesa condition of sale of those goods.
34. When the imported goods are only an ingredient or component of goods manufactured in the
Republic of Latvia, an adjustment to the price actually paid or payable for the imported goods shall
only be made when the payment for the right to use in tellectual property or licence fee relates to those
goods.
35. If the goods are imported in an unassembled state or are subject only to dilution or packaging
before resale, then the payment for the right to use intellectual property or licence fee must be
included in the price of the imported goods.
36. If the payment for the right to use intellectual property or licence fee relate partly to the
imported goods and partly to other ingredients or component parts added to the  goods after their
importation, or to post-importation activities or services, an appropriate apportionment shall be made
only on the basis of objective and quantifiable (received in the necessary quantity) data.
37. Payment for the right to use intellectual propert y or licence fees is only to be added to the
price actually paid or payable for the imported goods where:
37.1. the payment for the right to use intellectual property or licence fee relates to goods which are
resold in the same country, or are subject after importation, to the processing referred to in
para 35. of these Regulations;
37.2. the goods are marketed under the trade mark, affixed before or after importation, for which
the payment for the right to use intellectual property or licence fee is paid;
37.3. the buyer is not free to obtain such goods from other suppliers unrelated to the seller.
38. If the buyer pays for the right to use intellectual property or licence fee to a third party, the
conditions of para 33. of these Regulations shall not be considered  as met unless the seller or a person
related to him requires the  buyer to make that payment.G/VAL/N/1/LVA/1
Page 6
39. If the calculation of the payment for the right to use intellectual property or licence fee is
derived from the price of the imported goods, it may be assumed in the absence of evidence to the
contrary that the payment of that royalty or licence fee is related to the goods to be  valued.
40. If the payment for the right to use intellectual property or licence fee is calculated regardless
of the price of the imported goods, the said payment may nevertheless be related to the goods to be
valued.
41. In applying Article 168. (1). 3). of the Customs Law, the country of residence of the recipient
of the payment for the right to use intellectual property or licence fee shall not be a material
consideration.
42. If the sale or price is subject to some condition or consideration for which a value cannot be
determined with respect to  the goods being valued , the transaction  value shall not be acceptable for
Customs purposes.
43. The customs authorities need not determine the customs value of imported goods on the basis
of the transaction value if they are not satisfied, on the basis of reasonable doubts, that the declared
value represents the total amount paid or payable as referred to in Article 165. of the Customs Law.
IV. VALUATION OF GOODS BY THE VALUATION METHOD FOR IDENTICAL
GOODS, IN ACCORDANCE WITH ARTICLE 166. (2). 1). OF THE CUSTOMS LAW
44. In applying Article 166 (2) 1) of the Customs Law, the customs administration shall,
wherever possible, use a sale of identical goods at the same commercial level and in substantially the
same  quantities as the goods being valued. Where no such sale is found, a sale of identical goods that
takes place under any one of the following three conditions may be used:
44.1. under the same commercial conditions but in different quantities of goods;
44.2. under different commercial conditions but in the same quantity of goods;
44.3. under different commercial conditions and in different quantities of goods;
45. A condition for adjustment because of different commercial levels or different quanties is that
such adjustment be made only on the basis of demonstrated evidence that clearly establishes the
reasonableness and accuracy of the adjustments.
46. In determining the customs value under the valuation method for identical goods, differences
in the costs of the identical goods and the goods being valued referred to in Article 168. (1). 5)., must
be taken into account. These costs must be in cluded in the customs value with the appropriate
correction.
47. If, in applying the valuation method for identical goods, more than one transaction value of
identical goods is found, the lowest such value shall be used to determine the customs value of the
imported goods.
V. VALUATION OF GOODS BY THE VALUATION METHOD FOR SIMILAR
GOODS, IN ACCORDANCE WITH ARTICLE 166. (2). 2). OF THE CUSTOMS LAW
48. In applying Article 166 (2) 2) of the Customs Law, the customs administration shall,
wherever possible, use a sale of similar goods at the same commercial level and in substantially the
same  quantities as the goods being valued. Where no such sale is found, a sale of identical goods thattakes place under any one of the following three conditions may be used:G/VAL/N/1/LVA/1
Page 7
48.1. under the same commercial conditions but in different quantities of goods;
48.2. under different commercial conditions but in the same quantity of goods;
48.3. under different commercial conditions and in different quantities of goods;
49. A condition for adjustment because of different commercial levels or different quanties is that
such adjustment be made only on the basis of demonstrated evidence that clearly establishes the
reasonableness and accuracy of the adjustments.
50. In determining the customs value under the valuation method for similar goods, differences in
the costs of the similar goods and the goods being valued referred to in Article 168. (1). 5)., must be
taken into account. These costs must be included in the customs value with the appropriate correction.
51. If, in applying the valuation method for similar goods, more than one transaction value of
similar goods is found, the lowest such value sha ll be used to determine the customs value for the
imported goods
VI. VALUATION OF GOODS BY THE VALUE OF ONE UNIT, IN ACCORDANCE
WITH ARTICLE 166. (2). 3). OF THE CUSTOMS LAW
52. If the imported goods or identical or similar imported goods are sold in the customs territory
of the Republic of Latvia in the condition as imported, the customs value of imported goods shall be
based on the unit price at which the imported goods or identical or similar imported goods are so sold
in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, topersons who are not related to the persons from whom they buy  such goods
53. The following costs are not included in the customs value:53.1. the commissions usually paid or agreed to be paid or the additions usually made for profit and
general expenses (including the direct and indirect costs of marketing the goods in question)
in connection with sales of imported goods of the same class or kind;
53.2. transport, insurance and other costs related to the transportation of the goods in the customs
territory of the Republic of Latvia;
53.3. customs and other charges payable in relation to the importation or sale of the goods in the
customs territory of the Republic of Latvia.
54. The conditions of paragraphs 52. and 53. of these Regulations are applicable even if the said
goods are sold in an unaltered state within the customs territory of the Republic of Latvia no later than
90 days after their importation.
55. If neither the imported goods nor identical or similar imported goods are sold in the customs
territory of the Republic of Latvia in the condition as imported, then, if the importer so requests, the
customs value shall be based on the unit price at which the imported goods, after  further processing,
are sold in the greatest aggregate quantity to persons in the Republic of Latvia who are not related to
the persons from whom they buy such goods, due al lowance being made for the value added by such
processing and the deductions provided for in paragraph  53. of these Regulations.
56. Any sale in the Republic of Latvia to a person who supplies directly or indirectly free of
charge or at reduced cost for use in connection with the production and sale for export of the imported
goods any of the elements specified in Article 169 (1) 2) of the  Customs Law should not be taken
into account in establishing the unit price for the  purposes of this paragraph.G/VAL/N/1/LVA/1
Page 8
57. The customs value may not be determined by the method of the value of one unit if the goods:
57.1. have lost their identity (are not identifiable);
57.2. have not lost their identity (are identifiable) but form only a small part of the goods sold.
VII. VALUATION OF GOODS BY THE COMPUTED VALUE, IN ACCORDANCE WITH
ARTICLE 166. (2). 4). OF THE CUSTOMS LAW
58. The customs authorities may not require or compel any person not  resident in the Republic of
Latvia to produce for examination, or to allow  access to, any account or other record for the purposes
of  determining this value. However, information supplied by the  producer of the goods for the
purposes of determining the customs  value under this method may be verified in another country by
the customs authorities of the country of importation with the  agreement of  the producer.
59. The cost or value of materials and fabrication shall include the  cost of elements specified in
Article 168 (1) 1) b) and c) of  the Customs law.
60. The computed value shall also include the value, duly apportioned, of any product or service
specified in Article 168 (1) 2) of the Customs law which has been supplied directly or indirectly by
the buyer for use in connection with the production of the imported goods.
61. The value of the elements specified in Article 168. (1). 2). d) of the Customs Law shall be
included only to the extent that such elements are charged to the producer.
62. Where information other than that supplied by or on behalf of the producer is used for the
purposes of determining a computed value, the custom s authorities shall inform the declarant, if the
latter so requests, of the source of such information, the  data used and the
calculations based on such data.
63. The general expenses referred to in the second indent of Article 166. (2). 4). b). of the
Customs Law cover the direct and indirect costs of producing and selling the goods for export which
are not included under te first indent of Article 166. (2). 4). a). of the Customs Law.
VIII.  VALUATION OF GOODS BY THE METHOD OF VALUATION IN SPECIAL
CIRCUMSTANCES, IN ACCORDANCE WITH  ARTICLE 167. OF THE CUSTOMS
LAW
64. The methods referred to in Articles 165. and 166, of the Customs Law are used taking into
account the prescribed aims and conditions of Article 167. of the Customs Law.
IX. TRANSPORT COSTS:
65. In applying Article 168. (1). 5). b). and Article 169.1. of the Customs Law:
65.1. where goods are carried by the same mode of transport to a point beyond the place of
introduction into the customs territory of the Republic of Latvia, transport costs shall be
assessed in proportion to the distance covered outside and inside the customs  territory of theRepublic of Latvia, unless evidence is produced to the customs authorities to show the costs
that would have been incurred under a general compulsory schedule of freight rates for the
carriage of the goods  to the place of introduction into the  customs territory of the Republic
of Latvia.G/VAL/N/1/LVA/1
Page 9
65.2. where goods are invoiced at a uniform free domicile price which corresponds to the price at
the place of introduction, transport costs within the Republic of Latvia shall not be deducted
from that price.
However, such deduction shall be allowed if evidence  is produced to the customs authorities
that the free-frontier price would be lower than the uniform free domicile price.
65.3. where transport is free or provided by the buyer, transport  costs to the place of introduction,
calculated in accordance with  the schedule of freight rates normally applied for the same
modes of transport, shall be included in the customs value.
66. All postal charges levied up to the place of destination in respect of goods sent by post shall
be included in the customs value of these goods, with the exception of any supplementary postal
charge levied in the country of importation. No ad justment to the declared value shall, however, be
made in respect of such charges in determining the value of consignments of a non-commercial
nature.
67. Paragraph 66. of these Regulations does not apply to goods which are carried as postal
express consignments.
X. DETERMINATION OF THE CUSTOMS VALUE OF ELECTRONIC CARRIER
MEDIA, WHICH CONTAIN DATA FOR USE IN DATA PROCESSING
EQUIPMENT OR INSTRUCTIONS
68. The customs value of imported electronic carrier media, which contain data for use in data
processing equipment or instructions shall be the value of the electronic carrier media itself, provided
that such value is distinguishable from the value of the data or instructions in question.
69. The "electronic carrier media" referred to in paragraph 68. of these Regulations shall not be
taken to include integrated circuits, semi-conductors and similar equipment or items incorporatingsuch integrated circuits or equipment.
70. The data or instructions referred to in paragraph 68. of these Regulations shall not be taken to
include sound, cinematographic or video recordings.
XI. USE OF THE CUSTOMS VALUATION DECLARATION
71. When releasing goods for free circulation, a customs valuation declaration (Appendix) must
be attached to the customs declaration.
72. The customs valuation declaration must be submitted in writing, it may be completed and
signed by the declarant. The declarant is responsible for:
72.1. the accuracy and completeness of the information given in the declaration;
72.2. the authenticity of the documents;
72.3. the submission of any additional information or document necessary to establish the customs
value of the goods.
73. The customs authorities may allow goods to be released for free circulation without
completion of a customs valuation declaration:
73.1. if the value of the goods, which are declared in accordance with the customs declaration does
not exceed Ls 2000;
73.2. the quantity and type of goods imported by natural persons do not indicate a commercial
purpose;G/VAL/N/1/LVA/1
Page 10
73.3. the buyer imports goods regularly and they are purchased from one and the same seller under
one and the same commercial conditions;
73.4. a specific customs tariff is applied to the goods, i.e. the customs tariff is shown in Lats for one
unit of the goods to be imported.
74. In the case of continuing traffic in goods supplied by the same seller to the same buyer under
the same commercial conditions, the customs authorities may waive the requirement that all
particulars under paragraph 73.3 be furnished in support of each customs declaration, but shall require
them whenever the circumstances  change and at least once every three years.
75. If any goods are subject to customs clearance in accordance with customs legislation, then at
the demand of the customs authority, the buyer or consignee must submit a customs valuationdeclaration.
XII. CONCLUDING MATTERS
76. To recognise as no longer being in force the following Cabinet of Ministers Regulations:
76.1. The Cabinet of Ministers 31. January, 1995 Regulations No. 27. "Regulations regarding the
determination of the customs value of goods and other items to be imported and exported";
76.2. The Cabinet of Ministers 9. September, 1997 Regulations No. 318. "Regulations regarding
the calculation of the customs value of goods".
77. The Regulations come into effect on 1. January, 1998.G/VAL/N/1/LVA/1
Page 11
Appendix
 Cabinet of Ministers Regulations No. ------
17. December, 1997.
Customs Valuation Declaration
1. Name and address of seller: (printed letters) For official use
2 (a) Name and address of buyer: (printed letters)
2 (b) Name and address of declarant: (printed letters)
Important note:
In signing and submitting the declaration, the declarant accepts
responsibility for the accuracy and completeness of the information
on this form, as well as for the authenticity of supplementary3. Terms of supply
documents submitted. The declarant also accepts responsibility to
supply any form of supplementary  information or documents, which4. Invoice No. and date
are necessary in order to determine the customs value of the goods. 5. Contract No. and date
6. No. and date of previous Customs decision (in respect of boxes 7., 8. and  9.) Enter X where
appropriate:
7 (a) Are the buyer and seller related persons  in accordance with Article 164 of the Customs Law? Yes No
         If "No", go to box 8.
   (b) Did this relationship influence  the price of the imported goods? Yes No
   (c) (Answer by choice) Is the transaction value of the imported goods the value very close to the Yes No
        value referred to in Article 165. (3) of the Customs Law? If "Yes", give more detailed
        information
8 (a) Are there any restrictions  on the rights of the buyer in respect of  use of the goods, other than:
• restrictions determined by normative acts of the Republic of Latvia,
• territorial restriction on the further sale of the goods,
• restrictions that do not vitally influe nce the value of the goods being valued Yes No
   (b) Is the sale or price subject to some condition  or circumstance  due to which the value of the
        goods being valued cannot be determined: Yes No
        Detail the respective nature (type) of restriction, condition or circumstance:
        If it is possible to determine the value of the condition or circumstance, indicate the
        amount in box 11 (b).
9 (a) Are there any licensed and other type of payments for use of intellectual property ,
        in connection with the imported goods, which directly or indirectly the buyer pays as a
        condition of the sale? Yes No
  (b) Is the sale subject to a procedure in accordance with which the income part of any following Yes No
       onward sale,  action or use  directly or indirectly accrues to the seller?
       If to any of the questions the answer is "Yes", detail the conditions and if possible, indicate the
       amounts in boxes 15. and 16.
(*) Notes (box 7)
1. Persons are to be regarded as related only in such cases if:
    (a) one of the persons participates in the management of an enterprise which
         belongs to the other person;
    (b) both persons are co-owners of one and the same enterprise;    (c) an employer/employee relationship exists with one another;    (d) one of the persons with voting rights directly or indirectly owns or controls
         at least 5% or more of the other persons enterprise capital or shares;
    (e) one of the persons directly or indirectly controls the other;    (f) both persons are directly or indirectly controlled by a third person;10 (a) No. of pages further attached:
               -------------------
10 (b)
Place:
Date:
Signature:G/VAL/N/1/LVA/1
Page 12
    (g) both persons together control a third person;
    (h) both persons have a family relationship one with the other.
2. The fact that the buyer and seller are related does not influence the transaction     value in accordance with Article 165. (3). of the Customs Law.
For official use
Item Item Item
A
Basis of
calculation11 (a) Net price in the invoi ced currency  (price
actually paid or payable for settlement within the
respective time for the purposes of customs
valuation) ---------------------
    (b) Indirect payments (see box 8 (b).)
          Rate of exchange: ----------------------
12. Total of Part A in national currency
B 13. Buyer's expenses:
Supplementary -      (a) commission expenses, excluding buying
          commission
payments in the      (b) brokerage fees --------- ----------------------
national currency      (c) value of packing and containers ----------
not included in 14. Goods and services supplied by the buyer free
Part A (*)       of charge or for a reduced payment for use in
      manufacture or sale for export:
Indicate below the    Indicate the elements included in the customs
most important    value:
customs decisions, (a) raw materials, components, semi-finished
if any:      products, parts and similar items included
     in the value of the imported goods -----------
(b) tools, dies, moulds and other similar items
     used to manufacture the imported goods -----
(c) supplementary materi als (lubricants, fuel),
     consumed in the manufacture of the
     imported goods  ----------- --------------------
(d) engineering, development, artwork, design
     work and plans which are produced outside
     of the customs territory of the Republic of
     Latvia and are necessary for manufacture
     of the imported goods  --- --------------------
15. Licenced and other types of payment for the
use of objects of intellectual property
(9(a))  -------------------------- --------------
16. Part of the seller's profit from any further sale
or use of the goods being valued (9(b)) ---
17. Costs of supply to -------- ----- (indi cate place)
      (a) transport  -------------- ------------------------
      (b) costs for goods cargo operations  ----------
      (c) insurance  -------------- -----------------------
18. Total of Part BG/VAL/N/1/LVA/1
Page 13
C 19. Transport costs for transportation within the
Deductions: customs territory of the Republic of Latvia -------
Cost in the national 20. Costs of erecting, installing, maintenance or
currency, included guarantee of imported manufacturing equipment
in Part A (*) 21. Other expenses (give details)  -----------------
22. Customs duties and taxes paid in the country
of manufacture or importation in respect of the
importation or sale of the goods
23. Total of Part C ----------------------------------
24. Declared value (A+B+C) ----------------------------------------------
(*) Where amounts must be shown in foreign currency , show the amount in foreign currency and the rate of
exchange based on the rate determined by the Bank of Latvia.
Ref:                                                      Quantity:                                      Rate of exchange:G/VAL/N/1/LVA/1
Page 14
The Saeima has adopted
and the President of the state
announces the following Law.
CUSTOMS LAW
Title A
General provisions
Chapter l
Basic definitions
Article 1
For the purposes of this Law, the following definitions shall apply:
(1) “Non-resident”  - any person who is not a permanent resident in the Republic of Latvia.
(2) “Non-Latvia goods”  - goods other than those that are referred to as Latvian goods.
(3) “Free zone”  - a part of the state territory of the Republic of Latvia where any goods
introduced are generally regarded, insofar as customs duties and charges, and commercial
policy measures are concerned, as being outsi de the customs territory of the Republic of
Latvia.
(4) “Declarant”  - the person making the customs declaration on a legal basis in his own name or
the person in whose name a customs declaration is made.
(5) “Release”  - the act whereby the customs authorities make goods available for the purposes
stipulated by the customs procedure under which they are placed.
(6) “Commercial means of transport”  - any means of transport used for the international
transport of passengers or goods, including containers and other transport equipment.
(7) “Latvian goods”  means goods:
1) goods which originate in the Republic of Latvia as defined in the second part of
Article 172;
2) goods released for free circulation in the customs territory of the Republic of Latvia;3) goods obtained or produced either from goods  as defined in the first or second part, or
from goods mentioned in the first and second parts.
(8) ”Persons established in the Republic of Latvia”  - any natural or legal persons registered in
the Republic of Latvia.
(9) “Customs control”  - measures applied with a view of ensuring that international agreements,
this Law and other customs-related normative acts falling under customs supervision are
observed.
(10) “Customs surveillance zone”  - part of the customs territory of the Republic of Latvia in
which the movement of goods shall be allowe d only with the approval and under control of
customs authorities.
(11) “Customs declaration”  - a statement whereby a person indicates, in the form and manner
prescribed by the Cabinet of Ministers, a wish to place goods under a given customs
procedure .
(12) “Customs duties”  - in the sense implied by this Law, means customs duties and taxes
collected by customs as provided for by the Law.
(13) “Customs debt”  - the obligation of a person to pay customs duties and charges.
(14) “Customs procedure” -  treatment and obligations applied to goods which determine the
status of the goods to be moved across the customs border of the Republic of Latvia (Latvian
or non-Latvian goods).G/VAL/N/1/LVA/1
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(15) “Customs clearance”  - the measures, as provided for by this Law, for applying a definite
customs procedure.
(16) “Carrier”  - the person actually transporting goods or in charge of or responsible for the
operation of the means of transport.
(17) “Movement of goods across the customs territory”  - activities in respect to the importation
of goods into the customs territory of Latvia or exportation from the customs territory in any
way or manner.
(18) “Pre-clearance”  - activities which shall be performed in respect to the goods before they are
subject to customs clearance.
(19) “Goods”  - any movable items, including currency, valuables, any types of energy and
vehicles, except commercial means of transport.
(20) “Holder of the goods”  - the person who is legally authorized  to act in respect to the goods in
his own name, irrespective whether he is the owner of the said goods.
(21) “Commercial policy measures”  - restrictions and reliefs applied to the movement of goods
across the customs border which have been prescribed considering international agreements
and the national economic policy.
Chapter II
Customs matters
 Article 2. Scope of customs matters
Legal procedures, by which goods shall be moved across the customs territory, assessment of
the said goods with customs taxes, clearance of the goods, customs control, as well as other measures
taken to implement the policy of customs lie solely within the customs competence.
Article 3.  Customs territory and customs border
(1) The customs territory of the Republic of Latvia (hereafter-customs territory) shall include all
the territory of the Republic of Latvia comprising the land territory, the territorial and inland
waters, and the air space, as well as territories containing artificial islands and structures.
(2) The border of the customs territory (hereafter-customs border) shall be the customs border.
Article 4.  Customs  normative provisions
(1) Customs normative provisions of the Republic of Latvia shall comprise the Republic of
Latvia Customs Law and other normative acts regulating customs matters.
(2) Customs matters shall be dealt with in compliance with the customs normative provisions
being in force at the date of acceptance of the customs declaration by customs authorities.
Article 5. International agreements
Unless an international agreement approved by the Saeima specifies it otherwise than it is
provided for in the present Law, provisions of international agreements shall apply.
Article 6. Administration of customs matters
Direct customs management is effected by customs authorities - offices of the Republic of
Latvia State Revenue Service entitled to perform the mission of the State Revenue Service toimplement the customs policy.G/VAL/N/1/LVA/1
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Article 7. Normative provisions of the State Revenue Service
(1) On the basis of this Law and other normative acts regulating customs matters, and within the
scope of its competence the State Revenue Service issues normative provisions on customs
matters mandatory to all customs authorities and customs officials.
(2) Normative acts of the State Revenue Service relating to the movement of goods across the
customs border or the customs procedures to be used shall take effect on the date indicated
therein, but not earlier than the next day after their publication in the newspaper “Latvijas
Vçstnesis”.
Article 8. Confidentiality
(1) All information which is provided by a person to the customs authorities according to this
Law and other normative provisions regulating customs matters shall be used for customs
purposes only.
(2) Information containing state secrets or which by nature is confidential (information which is
not generally available and may be detrimental to the legal rights and interests) shall not be
disclosed, used by the customs officials in their personal interests, transferred to a third party
or state institutions save the cases defined in the normative provisions.
Article 9.  Customs emblem, identification and flag
(1) The customs emblem shall bear two yellow diagonally crossed Mercury’s scepters with the
small coat of arms of the Republic of Latvia above them. The simplified customs emblem
shall bear two yellow diagonally crossed Mercury’s scepters. The simplified emblem shall be
used together with the flag of the Latvian Republic and the inscription “LATVIJAS MUITA”.
(2) The identification emblem of land vehicles and aircraft at the disposal of the customs Service
shall be a round Latvian Customs emblem on a black background with the inscription
“LATVIJAS MUITA” under it.
(3) The Customs Service and seagoing vessels and river boats at its disposal shall have a flag, but
land vehicles and aircraft - an identification emblem. The national flag of the Republic of
Latvia shall form the basis of the flag of the Customs Service and its seagoing vessels and
river boats with the upper maroon strip of the said flag being interrupted 1/3 of the length ofthe strip at the Flagstaff. On a white background the width of the maroon strip the Customs
simplified emblem shall be depicted.
Chapter III
Officials of the Customs Service, decisions and obligations
Article 10.  Obligations of customs officials
(1) In their activities, customs officials shall abide by the regulations and practices stipulated by
this Law and other normative provisions.
(2) When joining the Customs Service, the said of ficials shall take an oats of loyally to the
Republic of Latvia.
(3) The text of the oath shall be as follows: “On joining the Customs Service of the Republic of
Latvia, I recognize my responsibility in front of the laws of the Republic of Latvia, I promise
to be on unwavering guard of the national sovereignty of the Republic of Latvia and its lawfulinterests, perform my official duties to the best of my conscience and abide by discipline of
the Customs Service”.
(4) The procedure of the ceremony of taking the oats shall be stipulated by the State Revenue
Service.G/VAL/N/1/LVA/1
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Article 11. Official orders and requirements of customs officials
(1) The decisions taken, orders issued or requirements advanced in compliance with the scope of
competence stipulated by this Law shall be binding to all persons subject to customs control.
(2) Insults to dishonour a customs official when fulfilling his/her professional responsibilities,
threats or violent acts, endangerment of customs officials life or health, as well as activities to
hamper the fulfilment of service responsibilities shall be punishable under the existing
legislation.
(3) Officials of the Police, the Border Guard Forces, the Land Guards and other public authorities
shall grant the necessary assistance to customs officials.
 Article  12. Decisions taken by customs officials
(1) In order to apply the procedures defined by this Law and other normative provisions
regulating customs matters, customs authorities shall take a decision.
(2) A decision is taken on the basis of the information submitted by the person concerned.
(3) The decision shall be taken without delay, and the person concerned shall be notified. Where
a decision may not be taken without delay, the person to whom the decision was addressed
shall be notified, and the final date of taking the decision shall be stated.
(4) The persons concerned may appeal against the decision taken by the customs authorities
within 30 days since the receipt of the notification.
(5) Customs authorities may revoke or amend their decision, provided an erroneous decision is
taken, or in cases, when the decision was taken on the basis of incomplete or incorrect
information submitted by the person concerned.
(6) The revocation of the decision shall take effect from the date on which the annulled decision
was taken, but the amendment of the decision - from the date on which the amendment was
made, unless the decision or the amendments of the decision made by customs authoritiesprescribe it otherwise.
Article 13. Information on customs matters
(1) Customs authorities shall provide state institutions and the persons concerned with the
information about the procedures of application of this Law and other normative acts
regulating customs matters, as well as normative acts issued by the State Revenue Service.
(2) The information shall be supplied to the applicant free of charge. However, where special
costs are incurred by the customs authorities as a result of providing information to the
applicant, he may be charged the relevant amount.
Article 13
1. Binding tariff information on correspo ndence of goods with the code in the
Combined Nomenclature of the Republic of Latvia
(1) The Customs Board of the State Revenue Service shall issue written binding tariff
information on written request of applicant, acting in accordance with the procedure of the
Cabinet of Ministers.
(2) Binding tariff information of the Customs Board shall be binding only in respect of
classification of the goods in accordance with the Combined Nomenclature of the Republic of
Latvia.
(3) The holder of the binding tariff information in case of necessity or at the request of the
customs authority must be able to prove that the goods declared correspond to those describedin the application.
(4) Binding tariff information shall be valid for a period of six years from the date of issue. The
Customs Board of the State Revenue Service annuls it where it is based on inaccurate orG/VAL/N/1/LVA/1
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incomplete information from the applicant. The notification concerning annulment of binding
tariff information is made to customs offices and the applicant.
(5) Binding tariff information shall cease to be valid where the respective regulations on
classification of goods are amended or  annulled or where binding tariff information is
revoked by the competent authority which issued it. The fact of invalidation of binding tariffinformation shall be notified in writing (indicating reasons) to customs offices and the
applicant.
Article 14. Competence of customs authorities
The scope of competence in relation to taking decisions on customs matters shall be defined
by the relevant normative acts and normative acts issued by the State Revenue Service.
Article 15.  Appeal against decisions taken
(1) The person concerned has the right of appeal against any decision taken by the customs
authority.
(2) Decisions taken by customs authorities may be challenged as prescribed in the law “On the
State Revenue Service”.
Article 16.  Revocation of the decision
(1) If the appeal has been lodged against the decision taken by the customs authorities, the
execution of the said decision shall be suspended in accordance with the normative
provisions.
(2) The customs authorities whose official has taken the decision shall suspend implementation
of such decision where they have good reason to believe that the disputed decision isinconsistent with normative provisions.
Article 17. Responsibility of customs officials
Customs officials shall bear responsibility for taking unlawful decisions, illegal actions or
negligence of this Law and other normative provisions.
Chapter IV
Rights and obligations of persons
Article 18.  Right of representation
(1) Any person may appoint a representative to perform the acts and formalities with the customs
authorities as prescribed in the customs legislation.
(2)  Such representation may be:
1) direct, in which case the representative shall act in the name of and on behalf of another
person;
2) indirect, in which case the representative shall act in his own name but on behalf of
another person;
3) negotiorum gestio referred to in Articles 2325 - 2342 of the Civil Law.
(3) Save in the cases referred to in Article 136 (3) of this Law a representative must be
established within the Republic of Latvia.
(4) A representative must notify the customs authority that he is acting on behalf of the person
represented, specify whether the representation is direct or indirect and be empowered to actG/VAL/N/1/LVA/1
Page 19
as a representative. A person who fails to state that he is acting in the name of or on behalf of
another person without being empowered to do so  shall be deemed to be acting in his own
name and on his own behalf.
(5) The customs authorities may require any person stating that he is acting in the name of or on
behalf of another person to produce evidence of his powers to act as a representative.
Article 19. Responsibility for violation of customs rules
(1) Responsibility of natural and legal persons for non-observance of provisions laid down in this
Law and other acts regulating customs matters sh all have the effect in accordance with the
Administrative Violations Law of the Republic of Latvia, unless the nature of the said
violations according to the existing legislation shall envisage criminal responsibility and thesaid person has had a previous criminal record.
(2) The responsibility for violations in the matters concerning legal persons shall be taken by the
natural person having committed the said violation acting in the name or on behalf of the
legal person represented, or being employed by the said legal person.
(3) Proceedings relating to customs violations shall be performed in accordance with the
Republic of Latvia Administrative Violations Law.
Title B
Customs procedures
Chapter V
General provisions of customs procedures
Article 20.  Provisions applicable to goods brought into the customs territory
(1) Any goods may be brought into the customs territory of the Republic of Latvia, save the
goods the conveyance of which across the customs borders of the Republic of Latvia is
prohibited.
(2) Conveyance of goods across the customs border refers to:
1) the actual crossing of the border, bringing the goods into the customs territory and
removing the goods from the free zone into the customs territory;
2) lodging the customs declaration or any other act unambiguously indicating that the goods
are taken out of the customs territory, or into the free zone territory.
(3) Goods shall be conveyed across the customs border at the places specified by international
agreements and the laws of the Republic of Latvia and during the working hours of thecustoms offices.
(4) Conveyance of goods across the customs border in other places and outside the working hours
of customs offices shall be performed only with  the authorization of customs authorities and
if necessary, in the presence of the representative of the sanitary border inspection.
(5) Conveyance of goods across the customs border shall be performed as prescribed by this Law
in accordance with the customs procedures applied.
Article 21. Traffic of commercial means of transport across the customs border
(1) Traffic of commercial means of transport across the customs border shall not be declared with
the customs authorities.
(2) The waiting place and time for the commercial means of transport on the customs border shall
be stated by the customs office, taking into account the time needed for customs examination
and clearance.G/VAL/N/1/LVA/1
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Article 22. Goods brought across the customs border by natural persons
The procedure by which a natural person may bring goods and items for personal use across
the customs territory, as well as restrictions and reliefs in respect to the goods are prescribed by the
Cabinet of Ministers.
Article 23.  Restrictions regarding the movement of goods across the customs border
Movement of particular goods across the customs border may be prohibited or restricted by
international agreements or other normative acts.
Article 24. Customs procedures
(1) Customs matters are implemented through the following customs procedures:
1) release for free circulation;
2) temporary importation;
3) temporary exportation;
4) re-importation;
5) warehousing;
6) importation to a duty-free shop;
7) inward processing;
8)  processing under customs control;
9) export;
10)  outward processing;
11)  re-exportation;
12)  transit;
13)  destruction;
14)  abandonment to the Exchequer;
15)  stores for commercial means of transport.
(2) Cabinet of Ministers shall have the authority to establish the procedure of customs treatment.
(3) Customs procedure shall be completed within the time fully ensuring the execution of the
terms of the said procedure.
Article 25. Selection and change of the customs procedure
(1) A person may choose a particular customs procedure or change the procedure irrespective of
the nature and amount of goods, or the country of origin.
(2) A person may apply for a particular customs procedure submitting a prescribed customs
declaration to the customs authority.
Article 26. Treatment concerning the movement of goods across the customs border
Treatment concerning the movement of goods across the customs border shall comply with
the customs procedures applied.
Article 27. Treatment of goods eligible to the remission of customs duties
Goods eligible to the remission of customs duties may be used only for the purposes for
which such reliefs may be applicable.G/VAL/N/1/LVA/1
Page 21
Article 28. Treatment of abandoned, damaged or left goods
(1) The procedure of treatment of abandoned goods, damaged goods and goods placed under
customs control, and not demanded until the storage completion term by the holder of the
goods, is prescribed by the Cabinet of Ministers.
(2) The fact of abandonment, damage and destruction of goods is approved by the document of
competent authorities, submitted in the order determined by the Cabinet of Ministers.
Article 29. Types of guarantee and provision of security
(1) Customs authorities may require a guarantee to cover customs debt.
(2) Types of guarantee:
1) individual guarantee - envisaged for the execut ion of a single temporary storage of goods,
single customs procedure, or a temporar y storage of goods and customs procedure.
2) comprehensive  guarantee  - envisaged for a limited period of time and fixed scope of
customs debt that may be incurred.
(3) The guarantee may be provided:
1) by payment of security;
2) by submitting the responsibility insurance policy;
3) by submitting a bank guarantee;
4) by submitting the documents certifying the guarantees provided by international
agreements subscribed to by the Republic of Latvia;
(4) A person shall have the right to select the type and provision of the security.
(5) The security shall be provided by the person who is or may be responsible for the temporary
storage of goods, the performance of the customs procedures. The customs authorities may
not require security that exceeds the amount of the customs debt that may be incurred.
(6) The customs debt that may be incurred is a customs debt arising where the goods are released
for free circulation or upon exportation.
(7) The procedure of lodging and acceptance of the security is prescribed by the Cabinet of
Ministers.
Chapter VI
Release for free circulation
 Article 30. Scope of the procedure of release for free circulation
(1) Release for free circulation shall be such a customs procedure that allows the goods imported
into the customs territory to permanently rema in in this territory without being liable to
exportation from the said territory.
(2) Release for free circulation shall confer on non-Latvian goods the customs status of Latvian
goods.
Article 31. Regulations applicable to the procedure of release for free circulation
(1) Release for free circulation shall entail the payment of customs duties and application of other
commercial policy measures.
(2) The procedure shall be deemed to be completed upon the moment of release of the goods.G/VAL/N/1/LVA/1
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Article 32. Special cases for applying customs duties
(1) If the rate of duty is reduced after the date of acceptance of the declaration for release for free
circulation, but before the goods are released, the declarant may request application of a more
favorable rate.
(2) Where a consignment is made up of goods subject to different rates of customs duties and the
classification of goods would entail a burden of work and expense, the customs authorities
may, at the request of declarant, agree that customs duties be charged on the whole
consignment on the basis of the  classification of the goods which are subject to the highest
rate of customs duty.
Article 33. Customs control after the release of the goods
(1) Where goods are released for free circulation at a zero rate of duty on account of their end-
use, they shall remain under customs supervision.
(2) Customs supervision shall end, when:
1)  the conditions laid down for granting a zero rate of duty  cease to apply;
2)  the goods are exported or destroyed;
3)  the goods are used for other purposes subject to payment of the duties due.
Article 34. Change of the status of goods
Goods released for free circulation shall acquire the status of non-Latvian goods, where:
1) the declaration for release for free circulation is invalidated after the release of goods;
2) the customs duties payable on those goods are repaid or remitted.
Chapter VII
Temporary importation or temporary exportation.
Article 35. Scope of the procedure of temporary importation or temporary exportation
The temporary importation or temporary exportation procedure shall allow the use of goods in
the customs territory or outside its borders without their being subject to customs duties and
commercial policy measures.
Article 36. Regulations applicable to the procedure of temporary importation or temporary
exportation
(1) Temporary imported or exported goods shall be returned in an unaltered state, save their
natural depreciation or losses due to transportation or storage.
(2) Cases when temporary importation or tem porary exportation shall be admissible only upon
providing a guarantee on the completion of the procedure are prescribed by the Cabinet ofMinisters.
(3) This procedure shall not be applied if the identification of goods which may affect the
customs duties has not been provided.
(4) The procedure shall be deemed to be completed upon the date of re-exportation or
reimportation.G/VAL/N/1/LVA/1
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Article 37. Period for temporary importation or temporary exportation
The customs authorities shall determine the period for temporary exportation, account being
taken of the purpose and circumstances of the said importation or exportation, however this term shall
not exceed two years.
Article 38. Treatment of goods, in case the pe riod of temporary importation or temporary
exportation of goods has expired
Upon expiration of the specified period for temporary  importation or temporary exportation
of goods the goods must be returned or assi gned a new customs-approved treatment or use.
Article 39. Destruction or loss of temporary imported or temporary exported goods
In accordance with this Law the liability shall not set in,
(1) if the goods temporary imported or temporary exported are not returned within the time
specified and,  provided these goods are destroyed or irretrievably lost due to accidents or
force majeure circumstances, natural depreciation, transportation and storage.
(2) The event of the destruction or loss of the temporary exported  goods shall be confirmed by
documentary evidence issued by competent author ities in foreign countries ascertained by the
foreign consular offices of the Republic of Latvia .
(3) The event of the destruction or loss of temporary imported goods shall be confirmed by the
customs authority.
Chapter VIII
Reimportation
Article 40.  Scope of the reimportation procedure
Reimportation shall be such a customs procedure that allows Latvian goods, after they have
been exported from the customs territory of the Republic of Latvia in accordance with the customs
procedure - export - to be returned to that territory without paying customs duties and not applying the
commercial policy measures.
Article 41. Regulations of applying the reimportation procedure
(1) In order to apply the reimportation procedure:
1) the goods must be reimported into the cu stoms territory within the period of two
years, starting from the date of the exportation of the said goods;
2) upon the date of reimportation the goods must remain in the same state as at the date
of exportation, account being taken of their natural depreciation and losses due to
their transportation and storage;
(2) The procedure shall be deemed to be completed upon the date of the importation of the goods.
Article 42. Drawback of customs duties
(1) Upon reimportation of goods the customs authority shall repay the customs duties levied on
the exportation of goods from the state budget.
(2) Upon reimportation of goods the (holder) of the goods shall repay into the state budget all
charges he had received for the exportation of the said goods.G/VAL/N/1/LVA/1
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Chapter IX
Customs warehousing
Article 43. Scope of the customs warehousing procedure
(1) The customs warehousing procedure shall allow the storage of goods in a customs warehouse,
and this procedure is applied for:
1) non-Latvian goods, without such goods being subject to customs duties applicable to goods
being imported and without such goods being subject to commercial policy measures;
2) Latvian goods where the legislation of the Republic of Latvia provides that this procedure
shall entail the application of the same measures attached to the export of such goods.
(2) Customs warehouse means any place approved by the State Revenue Service, where the
goods may be stored in compliance with the customs legislation.
(3) Cases in which the goods referred to in paragraph (1) of this Article may be placed under the
customs warehousing procedure without being stored in a customs warehouse shall bedetermined by the Cabinet of Ministers.
Article 44. Customs warehouses and their types
(1) A customs warehouse may either be a public warehouse or a private warehouse.
(2) ‘Public warehouse’ means a customs warehouse available for use by any person for the
warehousing of goods.
(3) ‘Private warehouse’ means a customs warehouse reserved for the warehousing of goods by
the warehousekeeper.
(4) The warehousekeeper is a person authorized to operate the customs warehouse.(5) The depositor shall be the person bound by the declaration placing the goods under the
customs warehousing procedures or to whom the rights and obligations of such a person have
been transferred.
Article 45. Operation of a customs warehouse
(1) Operation of a customs warehouse shall be subject to the issue of the authorization by the
State Revenue Service, unless the said authority operates the customs warehouse itself.
(2) Any person wishing to operate the customs warehouse must make a request in writing
containing the information required for granting the authorization, in particular demonstrating
that an economic need for warehousing exists. The authorization shall lay down the
conditions for operating the customs warehouse.
(3) The authorization shall be issued only to persons established in the Republic of Latvia.
Article 46. Responsibility of the warehousekeeper and the depositor
(1) The warehousekeeper shall be responsible for:
1) ensuring that while the goods are in the customs warehouse they are not  removed from
customs supervision;
2) fulfilling the obligations that arise from the storage of goods covered by the customs
warehousing procedure;
3) complying with the conditions specified in the authorization as prescribed in Article 45 of
this Law.G/VAL/N/1/LVA/1
Page 25
(2) Where the authorization concerns a public warehouse, it may provide that the responsibilities
referred to in this Article part (1)1) or 2)indent or 1) and 2)indents devolve exclusively upon
the warehousekeeper and the depositor.
(3) The depositor shall bear full responsibility for fulfilling the obligations arising from the
placing of goods under the customs warehousing procedure.
Article 47. Transfer of rights and obligations of a warehousekeeper
The rights and obligations of a warehousekeeper may, with the agreement of the State
Revenue Service, be transferred to another person.
Article 48. Stock records
(1) The person designated by the State Revenue Service shall keep stock records of all the goods
placed under the customs warehousing procedure in  a form approved by this authority. Stock
records are not necessary where a public warehouse is operated by the State Revenue Service.
(2) The customs authority may dispense with stock records where the responsibilities lie with the
depositor and the goods are placed under that procedure on a basis of a written declaration
forming part of the normal procedure.
Article 49. Special cases of warehousing
(1) Where an economic need exists and customs supervision is not adversely affected thereby, the
customs authorities may allow:
1) Latvian goods other than those referred to in Article 43 (1)2) to be stored on the premises
of a customs warehouse;
2) non-Latvian goods to be processed on the premises of a customs warehouse under the
inward processing procedure, subject to the conditions provided for by that procedure;
3) non-Latvian goods to be processed on the premises of a customs warehouse under the
procedure for processing under customs control.
(2) In the cases referred to in paragraph (1)2)3 ) the goods shall not be subject to the customs
warehousing procedure.
(3) The customs authorities may require the goods referred to in paragraph (1) of this Article to
be entered in the stock records.
Article 50. Time limits for stock accounts and records in a customs warehouses
Goods placed under the customs warehousing procedure shall be entered in the stock records
as soon as they are brought into the customs warehouse.
Article 51. Time limits for storing the goods under the customs warehousing procedure
(1) There shall be no limit to the length of time goods may remain under the  customs
warehousing procedure. In cases prescribed by the customs legislation the customs authorities
may set a time limit by which the depositor must assign the goods a new customs approved
treatment or use.
(2) Specific time limits for certain goods covered by the annual program of the agricultural policy
of the Republic of Latvia may be laid down by the State Revenue Service.G/VAL/N/1/LVA/1
Page 26
Article 52. Storage and handling of import goods in a customs warehouse
(1) Import goods may undergo the usual forms of handling intended to preserve them, improve
their appearance or marketable quality or prepare them for distribution or resale. The methods
of processing which shall be prohibited for goods covered by the annual program of theagricultural policy of the Republic of Latvia may be drawn up by the Cabinet of Ministers.
(2) Latvian goods referred to in Article 43(1)2) which are placed under the customs warehousing
procedure and are covered by the annual program of the agricultural policy of the Republic of
Latvia may undergo only those methods of handli ng which are stipulated by this program.
(3) The list of the methods of handling shall be established by the Cabinet of Ministers.
(4) The methods of handling provided for in the first sentence of paragraph (1) of this Article
must be approved in advance by the customs authorities which shall grant the authorizationfor handling and, if necessary, by the sanitary border inspection.
Article 53. Removal of goods from a customs warehouse
Where circumstances so warrant, goods placed under the customs warehousing procedure
may be temporarily removed from the customs warehouse.  Such removal must be authorized in
advance by the customs authorities who shall stipulate the conditions on which it may take place.
While they are outside the customs warehouse, the goods may undergo the methods of handling
referred  to in Article 52 of this Law on the conditions set out therein.
Article 54. Transfer of goods to another customs warehouse
The customs authorities may allow goods placed under the customs warehousing procedure to
be transferred from one warehouse to another.
Article 55. Establishing of customs duties and charges when applying the warehousing
procedure
(1) Where a customs debt is incurred in respect of import goods and the customs value of such
goods is based on a price actually paid or payable which includes the cost of warehousing and
of preserving goods while they remain in the warehouse, such costs need not be included in
the customs value if they are shown separately from the price actually paid or payable for thegoods.
(2) Where the said goods have undergone the usual methods of handling within the meaning of
Article 52, the nature of the goods, the customs value and the quantity to be taken into
account in determining the amount of customs duties shall, at the request of the declarant, be
those which would be taken into account for the goods, at the time when the customs debt
was incurred, if the goods had not undergone such handling.
Chapter X
Introduction of goods into a duty-free shop
Article 56. Scope of the procedure of the introduction of goods into a du ty-free shop
The introduction of goods into a duty-free shop is a customs procedure that allows goods to
be introduced into the customs control zones, airports or ports open to international traffic, without
such goods being subject to customs duties and commercial policy measures, and allows to sell thesegoods to the natural persons leaving the customs territory for abroad.
Article 57. Regulations for the application of th e procedure of the introduction of goods into
a duty-free shopG/VAL/N/1/LVA/1
Page 27
(1) Any goods, save those the movement of which across the customs border or whose sale in the
customs territory is prohibited may be sold in a duty-free shop as prescribed by the existing
legislation.
(2) The procedure is deemed to be completed on the date of selling the goods.
Article 58. Authorization for keeping a duty-free shop
(1) The duty-free shopkeepers may be persons established in the Republic of Latvia.
(2) Operation of a duty-free shop, the procedure of  issuing the authorization for keeping a duty-
free shop and the validity term for the said au thorization shall be determined by the Cabinet
of Ministers.
(3) The authorization for keeping a duty-free shop shall be issued, suspended or revoked by the
State Revenue Service.
(4) The authorization shall be revoked:
1) where it is issued on the basis of incomplete or false information which has been relevant
in taking the decision on granting the authorization;
2) where the duty-free shopkeeper neglects the provisions prescribed by this Law and in
cases where the duty-free shopkeeper has announced himself insolvent or has been
recognized as such.
(5) The decision on the revocation of the authorization shall become valid upon the date of its
acceptance.
(6) Further sale of gods and introduction of new goods into a duty-free shop shall not be
admissible upon suspension or revocation of the authorization. The release of import goods
shall be effected in compliance with this Law.
Chapter XI
Inward processing
Article 59.  Scope of the procedure of inward processing
(1) The inward processing procedure shall allow the following goods to be used in the customs
territory of the Republic of Latvia in one or more processing operations:
1) non-Latvian goods intended for re-export from the customs territory in the form of
compensating products, without such goods being subject to customs duties or commercial
policy measures;
2) goods released for free circulation with repayment or remission of the customs duties
chargeable on such goods if they are exported from the customs territory in the form of
compensating products.
(2) The following definitions shall have the following meanings:
1) suspension system - the inward processing relief arrangements as provided for in paragraph
(1)1) of this Article;
2) drawback system - the inward processing relief arrangements as provided for in paragraph
(1)2) of this Article;
3) processing operations:
a) the working of goods, including erecting or assembling them,
b) the processing of goods,
c) the repair of goods, including restoring them and putting them in order,G/VAL/N/1/LVA/1
Page 28
d) the use of certain goods defined by the Cabinet of Ministers which are not to
be found in the compensating products, but which allow or facilitate their
production, even if they are entirely or partially used up in the process;
4) compensating products - all products resulting from processing the import goods;
5) equivalent goods - Latvian goods which are used instead of the import goods for the
manufacture of the compensating products;
6) rate of yield - the quantity or percentage of compensating products obtained from the
processing of a given quantity of import goods.
Article 60. Regulations for the application of the procedure of inward processing
(1) Where the conditions laid down in paragraph (2) of this Article are fulfilled and subject to
paragraph (4) of this Article, the customs authorities shall allow:
1) compensating products to be obtained from equivalent goods;
2) compensating products to be obtained from equivalent goods to be exported from the
Republic of Latvia before importation of the goods for processing.
(2) Equivalent goods must be of the same quality and have the same characteristics as the import
goods.  However, in specific cases determined by the State Revenue Service, equivalent
goods may be allowed to be at a more advanced stage of manufacture than the import goods.
(3) Where paragraph(1)applies, the import goods shall be regarded as equivalent goods.(4) Measures designed to prohibit or limit recourse to paragraph (1) of this Article may be
adopted by the Cabinet of Ministers.
(5) Where paragraph (1) of this Article is applied and the compensating products would be liable
to payment of export duties if they were not being exported or re-exported under an inward
processing operation, the holder of the authorization shall provide a security to ensure thepayment of the duties should the import goods not be imported within the period prescribed.
Article 61. Authorization for processing operations
(1) The authorization shall be issued at the request of the person who carries out processing
operations or who arranges for them to be carried out.
(2) The authorization shall be granted only:
1) to persons established in the Republic of Latvia. The authorization is not required in
respect of imports of non-commercial value;
2) where without prejudice to the use of the goods referred to in the indent ‘d’ of part 2(3) of
Article 59, the import goods can be identified in the compensating products, or in the cases
referred to in Article 60 of this Law the authorization shall be granted where thecompliance with the conditions laid down in respect of equivalent goods can be verified;
3) where the inward processing procedure can help create the most favorable conditions for
the export or re-export of compensating products, provided that the essential economic
interests of the producers of the Republic of Latvia are not adversely affected.
Article 62. Time limit of the application of the procedure of inward processing
(1) The customs authorities shall specify the period within which the compensating products
must have been exported or re-exported or as signed another customs-approved treatment or
use; that period shall take account of the time required to carry out the processing operationsand dispose of the compensating products.
(2) The period shall run from the date on which the non-Latvian goods are placed under the
inward processing procedure. The customs authorities may grant an extension on submission
of a duly substantiated request by the holder of the authorization. For reasons ofG/VAL/N/1/LVA/1
Page 29
simplification of this procedure, it may be decided that a period which commences in the
course of a calendar month or quarter shall end on the last day of a subsequent calendar
month or quarter respectively.
(3) Where Article 60 (1)2) of this Law applies, the customs authorities shall specify the period
within which the non-Latvian goods must be declared for the procedure. That period shall runfrom the date of acceptance of the export declaration relating to the compensating products
obtained from the corresponding equivalent goods.
(4) Specific time limits may be laid down by the Cabinet of Ministers for certain processing
operations or for certain goods.
Article 63. Rate of yield when carr ying out the processing operations
(1) The State Revenue Service shall set either the rate of yield of the processing operations or
where appropriate, the method of determining such rate. The rate of yield shall be determined
on the basis of the actual circumstances in which the processing operation is, or is to be,
carried out.
(2) Where the processing operation is carried out under clearly defined technical conditions and
results in the production of compensating products of uniform quality, the State Revenue
Service may set standard rates of yield on the basis of the previously presented information.
(3) The Cabinet of Ministers shall set the cases in which goods in the unaltered state or
compensating products shall be considered to have been released for free circulation.
Article 64. Establishing of customs duties when applying the procedure of inward
processing
(1) Where a customs debt is incurred, the amount of such debt shall be determined on the basis of
customs duties applicable to the import goods at the time of  acceptance  of the declaration ofplacing of these goods under the inward processing procedure.
(2) Where the import goods fulfilled the conditions to quality for preferential tariff treatment
within tariff quotas, they shall be eligible for any preferential tariff treatment existing in
respect of identical goods at the time of acceptance of the declaration of release for free
circulation.
Article 65. Establishing of customs duties in respect to compensating products
Compensating products:
(1)  shall be subject to the import duties appropriate to them where:
(a) they are released for free circulation and appear on the list   adopted by the State
Revenue Service, to the extent that they are in proportion to the exported part of the
compensating products not included in that list. However, the holder of the
authorization may ask for the duty on those products to be assessed as prescribed in
Article 64 of this Law,
(b) they are subject to charges established under the annual  program of the agricultural
policy of the Republic of Latvia and if provisions adopted by the Cabinet of Ministers
so provide.
(2) shall be subject to import duties calculated in accordance with the rules applicable to the
customs procedure in question, where the goods have been placed under a suspensive
arrangement, however:G/VAL/N/1/LVA/1
Page 30
(a) the declarant concerned may request that customs duty be    assessed in accordance
with Article 64,
(b) in cases where the compensating products have been assigned a customs-approved
treatment or use other than processing under customs control, the amount of the
import duty levied shall be equal to the amount calculated in accordance withArticle 63;
(3) may be made subject to the rules governing assessment of duty laid down under the procedure
for processing under customs control where the import goods could have been placed under
that procedure;
(4) shall enjoy favorable tariff treatment where provision is made for such treatment in the case
of identical imported goods;
(5) shall be admitted free of import duty in accordance with the favorable tariff treatment as
provided for by the legislation.
Article 66. Temporary exportation of compensating products
(1) Some or all of the compensating products or goods in the unaltered state may be temporarily
exported for the purpose of further processing outside the customs territory if the customs
authority so authorizes, in accordance with the conditions laid down in the outward
processing provisions.
(2) Where a customs debt is incurred in respec t of reimported products, the following shall be
charged:
1) import duties on the compensating products or goods in the unaltered state referred to in
paragraph (1) of this Law, calculated in accordance with Articles 64 and 65,
2) import duties or products re-imported after processing outside the customs territory, the
amount of which shall be calculated in accordance with the provisions relating to the
outward processing procedure, on the same conditions as would have applied had the
products exported under the latter procedure been released for free circulation before such
export took place.
(3) Temporary exportation of compensating products carried out as provided for in paragraph (1)
of this Article shall not be considered to be exportation within the meaning of Article 70 ofthis Law, except where such products are not re-imported into  the Republic of Latvia within
the period prescribed.
Article 67. Application of the drawback system
(1) The drawback system may be used for all goods, with the exception of those which, at the
time the declaration of release for free circulation is accepted:
1) are subject to quantitative import restrictions;
2) might, within customs quotas, qualify for a preferential tariff measure;3) are subject to customs duties.
(2) The drawback system may be used only if no refund of customs duties has been set for the
compensating products at the time the declaration of release for free circulation of the import
goods is accepted.
(3) Permission to use the drawback system shall be granted only if, at the time the declaration of
exportation of the compensating products is accepted:
1) the import goods are not subject to one of the charges referred to in the third indent of the
first paragraph of this Article;G/VAL/N/1/LVA/1
Page 31
2) no refund of customs duties has been set for the compensating products.
Article 68. Lodgement of the declaration of release for free circulation.
(1) The declaration of release for free circulation shall indicate that the drawback system is being
used and shall provide particulars of the authorization.
(2) At the request of the customs authorities, th e said authorization shall be attached to the
declaration of release for free circulation.
Article 69. Exceptions in the application of the drawback system
Under the drawback system Article 60(1)2), (3 ), (5), Article 62 (3), Article 63 and 64, and
Article 65 1)b) and 3) shall not apply.
Article 70. Drawback of customs duties when applying the procedure of inward processing
(1) The holder of the authorization may ask for th e customs duties to be repaid or remitted where
he can establish to the satisfaction of the customs authorities that compensating products
obtained from import goods released for free circulation under the drawback system have
been either:
1) exported, or
2) placed with a view to being subsequently re-exported under the customs warehousing
procedure, the temporary importation procedure or the inward processing procedure
(suspensive arrangement), or in a free zone, provided all conditions for use of the
procedure have been fulfilled.
(2) For the purposes of being assigned a customs-approved treatment or use referred to in the
second indent of paragraph (1) of this Article, compensating products shall be considered to
be non-Latvian goods.
(3) The period within which the application for re payment must be made shall be determined by
the State Revenue Service.
(4) Compensating products placed under a customs procedure or in a free zone in accordance
with the provisions of paragraph (1) of this Article shall be released for free circulation onlywhere authorized by the customs authorities, which shall grant such authorization where
circumstances so warrant. In this case, and without prejudice to Article 65(2) of this Law the
amount of customs duties repaid or remitted shall be considered to constitute the amount of
the customs debt.
(5) For the purpose of determining the amount of customs duties to be repaid or remitted, or
duties which are not chargeable after the submission of substantiating justification,  indent ‘a’
of Article 65(1) shall apply.
Article 71. Customs procedure of inward proces sing when applying the suspension system
The inward processing procedure, applying the suspension system shall also apply in order
that the compensating products may qualify for prefer ential tariff treatment for import goods to which
identical products obtained from Latvian goods instead of import goods would be liable.
Chapter XII
Processing under customs control
Article 72. Scope of the procedure of  processing under customs controlG/VAL/N/1/LVA/1
Page 32
The procedure for  processing under customs control shall allow non-Latvian goods to be
used in the customs territory in operations which alter their nature and state of being non-Latvian
goods, without their being subject to customs duties applicable to import goods and without being
subject to commercial policy measures, and shall allow the products from such operations to be
released for free circulation, levying the customs duties applicable to goods released for freecirculation. Such products shall be termed processed products.
Article 73. Authorization for the procedure of processing under customs control
(1) Authorization for processing under customs control shall be granted by the customs
authorities.
(2) Authorization for processing under customs control shall be granted at the request of the
person who carries out the processing or arranges for it to be carried out.
(3) Authorization shall be granted only:
1)  to persons established in the Republic of Latvia;
2)  where the import goods can be identified in the processed products;3) where the import goods cannot be economically restored after processing to their
description or state as it was when they where placed under the procedure;
4) where use of the procedure ensures the compliance with the Law concerning origin and
quantitative restrictions applicable to the imported goods;
5) where the necessary conditions for the procedure to help create or maintain a processing
activity in the Republic of Latvia without adversely affecting the essential interests of
Latvian producers of similar goods are fulfilled.
Article 74. Application of the procedure of processing under customs control
In respect to the procedure of processing under customs control the provisions laid down in
Article 62(1),(2),(4) and Article  63 of this Law shall apply.
Article 75. Establishment of the customs debt when applying the procedure of processing
under customs control
Where a customs debt is incurred in respect of goods in the unaltered state or if products that
are at an intermediate stage of processing as compar ed with that provided for in the authorization, the
amount of that debt shall be determined on the basis of the items of charge elements appropriate to the
import goods at the time of acceptance of the declaration relating to the placing of the goods under the
procedure for processing under customs control.
Chapter XIII
Export
Article 76. Scope of the export procedure
(1) The export procedure shall allow Latvian goods to leave the customs territory. The export
procedure shall entail the application of exit formalities, as well as commercial policy
measures and, where appropriate, export duties applicable when exporting goods.
(2) With the exception of goods placed under the outward processing procedure all Latvian goods
intended for export shall be placed under the export procedure.
(3) The cases in which and the conditions under which goods leaving the customs territory of the
Republic of Latvia are not subject to an export declaration shall be determined by the Cabinet
of Ministers.G/VAL/N/1/LVA/1
Page 33
(4) The export declaration must be lodged at the customs office responsible for supervising the
place where the exporter is established or where the goods are packed or loaded for export
shipment.
Article 77. Application for the export procedure
(1) Release for export shall be granted on condition that the goods in question leave the customs
territory in an unaltered state - in the same condition as when the export declaration was
accepted.
(2) The export procedure shall be deemed to be completed at the date when the goods leave the
customs territory or enter free zone or customs warehouse.
Chapter XIV
Outward processing
Article 78. Scope of the outward processing procedure
(1) The outward processing procedure shall, without prejudice to the provisions laid down in
Articles 85 and 89 governing specific fields relating to the standard exchange system allow
Latvian goods to be exported temporarily from the customs territory in order to undergo
processing operations and the products resulting from those operations to be released for free
circulation with total or partial relief from import duties.
(2) The exportation of Latvian goods for outward processing shall entail the application of export
duties, commercial policy measures and other formalities before exportation of the said goods
from the customs territory.
(3) The following definitions shall apply:
1) temporary export goods -means goods placed  under the outward processing procedure;
2)  processing operations - means operations referred to in Article 59(2)3) indents a,b,c;
3) rate of yield - means the quantity or percentage of compensating products obtained from
the processing temporary export goods.
Article 79. Cases where the procedure of outward processing shall not be applied
The outward processing procedure shall not be open to Latvian goods whose export gives rise
to:
1) repayment or remission of export duties;
2) the granting of export refunds or in respect of which a financial advantage other than such
refunds is granted under the annul program of the agricultural policy of the Republic of
Latvia by virtue of the export of the said goods.
Article 80. Authorization to use the outward processing procedure
(1) Authorization to use the outward processing procedure shall be issued at the request of the
person who arranges for the processing operations to be carried out.
(2) By the way of derogation from paragraph (1) of this Article, authorization to use the outward
processing procedure may be granted to another person in respect of goods of Latvian origin,
where the processing operation consists in incorporating these goods into goods obtainedoutside the Republic of Latvia imported as compensating products, provided that the use of
the procedure helps to promote the sale of export goods without adversely affecting the
essential interests of Latvian producers of products identical or similar to the imported
compensating products.G/VAL/N/1/LVA/1
Page 34
(3) Authorization shall be granted only:
1) to persons established in the Republic of Latvia;
2) where it is considered that it will be possible to establish that the compensating products
have resulted from processing of the  temporary export goods;
3) where the use of the outward processing procedure is not liable seriously to harm the
economic interests of Latvian processors.
Article 81. Time limit of the application of the outward processing procedure
(1) The customs authorities shall specify the period within which the compensating products
must be re-imported into the customs territory of the Republic of Latvia. They may extend the
period of submission of a duly substantiated request of the holder of the authorization.
(2) The State Revenue Service shall set the rate of yield of the operation, or where necessary,  the
method of determining the rate.
Article 82. Application of customs duty reliefs for the outward processing procedure
(1) The relief from import duties provided for in Article 83(1) of this Law shall be granted only
where the compensating products are declared for release for free circulation:
1) in the name or in behalf of the holder of the authorization;
2) by the other person established in the Republic of Latvia provided that the person has
obtained the consent of the holder of the authorization and the conditions of the
authorization are fulfilled.
(2) The relief from import duties provided for in  Article 83 of this Law shall not be granted
where one of the conditions or obligations relating to the outward processing procedure is notfulfilled, unless it is established that the failures have no significant effect on the correct
operation of the said procedure.
Article 83. Establishment of reliefs from customs duties for the outward processing
procedure
(1) The relief from import duties provided for in Article 78 shall be effected by deducting from
the amount of the import duties applicable to the compensating products released for free
circulation the amount of the import duties that would be applicable on the same date to the
temporary export goods if they where imported into the customs territory of the Republic of
Latvia from the country in which they underwent the processing operation or last processing
operation.
(2) The amount to be deducted pursuant to paragraph (1) of this Article shall be calculated on the
basis of the quantity and nature of the goods in question on the date of acceptance of the
declaration placing them under the outward processing procedure and on the basis of the other
items of charge applicable to them on the date of acceptance of the declaration relating to the
release for free circulation of the compensating products. The value of the temporary exportgoods shall be that taken into account for those goods in determining the customs value of the
compensating products in accordance with Article 168(1)2) indent a) or, if the value cannot
be determined in that way, the difference between the customs value of the compensating
products and the processing costs is to be determined accordingly. However:
1) certain charges determined by the Cabinet of Ministers shall not be taken into account in
calculating the amount to be deducted;
2) where, prior to being placed under the outward processing procedure, the temporary
export goods were released for free circulation at a reduced rate by virtue of their end-G/VAL/N/1/LVA/1
Page 35
use, and for as long as the conditions for granting the reduced rate continue to apply, the
amount to be deducted shall be the amount of import duties actually levied when the
goods were released for free circulation.
(3) Where temporary export goods qualify of their release for free circulation for  a reduced or
zero rate of duty by virtue of their end-use, that rate shall be taken into account provided that
the goods underwent operations with such an end-use in the country where the processing
operation took place.
(4) Where compensating products qualify for a preferential tariff measure, the amount of import
duties to be taken into account in establishing the amount to be deducted pursuant to
paragraph (1) of this Article shall be that amount which would apply if the temporary export
goods fulfilled the conditions under which that preferential measure may be applied.
Article 84. Temporary export of goods for repair
(1) Where the purpose of the processing operation is the repair of the temporary export goods,
they shall be released for free circulation with total relief from import duties where it isestablished to the satisfaction of the customs authorities that the goods were repaired free of
charge either because of a contractual or statutory obligation or because of a manufacturing
defect.
(2) Paragraph (1) of this Article shall not apply where account was taken of that defect at the time
when the goods in question were released for free circulation.
(3) Where the purpose of the processing operation is the repair of temporary export goods and
such repair is carried out in return for paymen t, the relief from import duties provided for in
Article 86 of this Law shall be granted by establishing the amount of the duties pertaining to
the compensating products on the date of acceptance of the declaration of release for free
circulation of those products and taking into account as the customs value an amount equal tothe repair costs, provided that these costs represent the only consideration provided by the
holder of the authorization and are not influenced by any links between these persons.
Article 85. Substitution of compensating products with replacement products in the
outward processing procedure
(1) Under the conditions laid down in Articles 85 to 89 of this Law which are applicable in
addition to the preceding provisions the standard exchange system shall permit an imported
product, hereinafter referred to as a  “replacement product”, to replace a compensating
product.
(2) The customs authorities shall allow the sta ndard exchange system to be used where the
processing operation involves the repair of Latvian goods and other than those subject to theannual program of the agricultural policy of the Republic of Latvia or to the specific
arrangements applicable to the certain goods resulting from the processing of agricultural
products.
(3) Without prejudice to Article 89, the provisions of this Law applicable to compensating
products shall apply to replacement products.
(4) The customs authorities shall, under the co nditions laid down, permit replacement products to
be imported before the temporary export goods are exported (prior importation). In the event
of importation of replacement products, security shall be provided to cover the amount of the
import duties.G/VAL/N/1/LVA/1
Page 36
Article 86. Requirements to be observed in respect to the replacement products
(1) Replacement products shall have the same tariff classification, be of the same quality and
possess the same technical characteristics as the temporary export goods had the latter
undergone the repair.
(2) Where the temporary export goods have been used before export, the replacement products
must also have been used and may not be new products. The customs authorities may,
however, grant derogation from this rule if the replacement product has been supplied free of
charge either because of contractual or statutory obligation arising from a guarantee or
because of the manufacturing defect.
(3) The customs authorities may not authorize the standard exchange where it is not possible to
ensure the observance of the requirements in relation to the replacement products referred toin paragraph (1) and (2) of this Article.
Article 87. Time limits for the export of goods for the outward processing procedure.
(1) In the case of prior importation, the export goods shall be temporarily exported within a
period of two months from the date of acceptance by the customs authorities of the
declaration relating to the release of the replacement products for free circulation.
(2) Where exceptional circumstances so warrant, the customs authorities may at the request of the
person concerned, extend within reasonable limits the period referred to in paragraph  (1) of
this Article.
Article 88. Establishment of the amount to be deducted for the outward processing
procedure
In the case of prior importation and where Article 83 of this Law is applied, the amount to be
deducted shall be determined on the basis of the items of charge applicable to the temporary exported
goods on the date of acceptance of the declaration placing them under the said customs procedure.
Article 89. Restrictions in respect to the application of the outward processing procedure
Article 80(3)2) and Article 82 (2) shall not apply in the context of standard exchange.
Chapter XV
Transit
Article 90. Scope of the transit procedure
(1) The transit procedure shall allow the movement of the following goods from one customs
office to another within the customs territory of the Republic of Latvia:
1) non-Latvian goods without such goods being subject to import duties and other charges or
to commercial policy measures;
2) Latvian goods which are subject to the completion of the export procedure.
(2) Movement as referred to in paragraph (1) of this Article shall take place:
1) under the transit procedure;
2) under cover of a TIR carnet (TIR Convention) provided that such movement:
a) began or is to end outside the Republic of Latvia, or
b) relates to consignments of goods which must be unloaded in the customs territory
or outside it;G/VAL/N/1/LVA/1
Page 37
3) under cover of an ATA carnet (ATA Convention) used as a transit document;
4) by post (including parcel post).
Article 91. Regulations governing the application of transit procedure.
(1) When applying the transit procedure in respect to the goods:
1) commercial means of transport shall meet th e requirements of the international traffic of
goods;
2)    goods shall remain in an unaltered state save the natural waste of goods and losses due to
their transportation and storage; it is forbidden to use the said goods for purposes other
than transit;
3)  goods shall be diverted to the customs office of destination within the time limit
determined by the customs office of departure, account being taken of the capacities of
the means of transport, the route intended and other provisions governing the
transportation of goods.
(2) The customs authorities may allow the transit procedure to be effected only in the cases
provided the carrier:
1) submits a security for the completion of the said customs procedure;
2) makes use of the services by the customs agent;
3) makes use of a customs convoy.
(3) The procedure is deemed to be completed when the goods are produced at the customs office
of destination (customs checkpoint).
Article 92. Measures to be taken in case of accidents and unforeseeable or force majeure
circumstances.
(1) By reason of an accident or force majeure circumstances, it is allowed to unload the goods. In
this case the carrier shall be responsible for:
1) the performance of all the necessary measures to be taken to ensure the security of goods
and to exclude any unauthorized actions with the said goods;
2) prompt notification of the customs authorities, and if necessary, the sanitary border
inspection of the situation and the precise location of the goods;
3) the conveyance of goods without delay to place designated by the customs authorities or
the transportation of customs officials to the location of the goods.
(2) The State Revenue Service shall not recompense  the losses incurred to the carrier resulting
from the measures to be taken as prescribed by this Article.
Article 93. Guarantees to be furnished for the completion of the transit procedure
(1) The principal shall provide a guarantee in order to ensure payment of any customs debt or
other charges which may be incurred in respect of the goods as prescribed by this Article.
(2) Except in specific cases to be determined, where necessary, no guarantee need to be furnished
for:
1) journeys by sea and air;
2) carriage by pipeline;
3) national railway conveyances;G/VAL/N/1/LVA/1
Page 38
(3) The guarantee waiver may be granted to persons by the customs authorities provided the said
persons meet the following requirements:
1) they are established in the Republic of Latvia;
2) they are regular users of transit procedure;
3) their financial situation is such that they can meet their commitments;
4) they have not committed any infringement of customs or fiscal laws; and
5) they, in accordance with a specimen form to be determined, undertake to pay, upon the
first application, in writing by the customs authorities, any sums claimed in respect of
their transit operations.
(4) The customs authorities which grant the waiver shall issue to each person obtaining it one or
more copies of a guarantee waiver certificate.
Article 94. Obligations for the observance of the requirements of the transit procedure
(1) The person moving the goods under the transit procedure (principal) shall be responsible for:
1)  production of goods intact at the customs office of destination by the prescribed time limit
and with due observance of the measures adopted by the customs authorities to ensure the
identification of goods,
2) observance of the provisions relating to the transit procedure.
(2) A carrier or a recipient of goods who accepts goods, knowing that they are moving under
transit, shall bear joint responsibility with th e person moving the goods for production of the
goods at the customs office of destination with due observance to ensure the identification of
the goods.
Chapter XVI
Provisions as to commercial means of transport
Article 95. Scope of the procedure for provisions as to commercial means of transport
(1) Provision of commercial means of transport is a customs procedure that allows the movement
of stores intended for commercial means of transport across the customs border andcomplementing the said stores within the cu stoms territory without subjecting them to
customs duties and commercial policy measures.
(2) The stores of commercial means of transport shall be:
1)   goods intended for the passenger and crew consumption of the commercial means of
transport (ships, aircraft or trains) and sale during the journey;
2)  goods necessary for the operation and maintenance of the commercial means of
transport (ships, aircraft or trains) including fuel and lubricants, except the spare parts
and equipment placed on the commercial means of transport entering the customs
territory or in case if the said means of transport is complemented within the customsterritory and the said goods are intended for international conveyance of passengers or
goods.
Article 96. Regulations governing the procedu re of provision of commercial means of
transport
(1) The stores of commercial means of transport may be used only for the following purposes:G/VAL/N/1/LVA/1
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1)   for the consumption by passengers and crew of the commercial means of transport, and
sale of the said stores during the journey;
2)   for the operation and maintenance of the commercial means of transport.
(2) The procedure shall be deemed to be completed at the acceptance date of the customs
declaration.
Chapter XVII
Other types of customs approved treatment or use
Article 97. Free zone
(1) A free zone shall be part of the customs territory of the Republic of Latvia which is separated
from the rest of the said territory and where:
1)   non-Latvian goods are considered, for the purposes of customs duties and commercial
policy measures, to have the same status as the goods outside the customs territory of theRepublic of Latvia;
 2)  Latvian goods may qualify for being placed under the export procedure.
(2) The introduction of goods into and the removal from the  free zone shall be under the control
of the customs authorities. Special customs control measures are determined by the Cabinet ofMinisters.
Article 98. Territory of the free zone and entry and exit points.
(1) A free zone shall be established as prescribed by special laws.
(2) The territory of a free zone shall be enclosed, and the competent authorities shall define the
entry and exit points of each free zone.
(3) The construction of any building in a free zone shall require the prior approval of the customs
authorities within the scope of their competence.
Article 99. Check of goods in a free zone
(1) The location of the entry and exit points of a free zone shall be determined by the free zone
administration having coordinated it with the State Revenue Service. The perimeter and the
entry and exit points of a free zone shall be subject to supervision by the customs authorities.
(2) Persons and means of transport entering or leaving a free zone may be subjected to a customs
check.
(3) The customs authorities may check goods entering, leaving or remaining in a free zone. To
enable such checks to be carried out, a copy of a transport document, which shall accompany
goods entering or leaving shall be handed to, or kept at the disposal of the customs authority
or the person authorized by this authority. Where such checks are required the goods shall be
made freely available to customs officials.
Article 100. Requirements for presenting goods in a free zone
(1) Without prejudice to Article 99(3) of this Law, goods entering a free zone need not be
presented to the customs authorities, nor need a customs declaration be lodged.
(2) Goods shall be presented to the customs authorities and undergo the prescribed customs
formalities only where:G/VAL/N/1/LVA/1
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1) they have been placed under a customs procedure which is discharged when the said goods
enter a free zone; however where the customs procedure in question permits exemption
from the obligation to present goods, such presentation shall not be required;
2) they have been placed in a free zone on a customs authority decision to grant repayment or
remission of import duties.
(3) Customs authorities may require goods subject to export duties or to other export provisions
to be notified to the customs authority;
(4) At the request of person concerned the customs shall certify the Latvian or non-Latvian status
of goods placed in a free zone.
Article 101. Time limit for goods to remain in a free zone
There shall be no limit to the length of time goods may remain in a free zone.
Article 102. Placing of different goods in a free zone
(1) Both Latvian and non-Latvia goods may be placed in a free zone.
(2) The customs authorities may require that goods which present a danger or are likely to spoil
other goods be placed in premises specially equipped to receive them.
Article 103. Activities with goods in a free zone.
(1) Any industrial, commercial or service activit y shall, under the conditions laid down in this
Law, be authorized in a free zone. The carrying on of such activities shall be notified in
advance to the customs authorities.
(2) The customs authorities may impose certain prohibitions or restrictions on the activities
referred to in paragraph(1) of this Article, having regard to the nature of the goods concerned
or the requirements of customs supervision.
(3) The customs authorities may prohibit persons  who do not comply with the provisions laid
down in this Law from carrying on an activity in a free zone.
Article 104. Application of customs procedure in a free zone.
(1) Non-Latvian goods placed in a free zone may:
1)    be released for free circulation in accordance with the appropriate customs procedure;
2)   be subject to the inward processing procedure under the conditions laid down by this
procedure;
3)   be subject to the procedure of processing under customs control in accordance with the
conditions laid down by this procedure;
4)   be subject to the temporary importation procedure under the conditions laid down by this
procedure;
5)   be abandoned to the state;6)   be destroyed, provided that the person concerned supplies the customs authorities with all
the necessary information.
(2) Where goods are placed under one of the procedures  referred to in paragraph (1)2),3) or 4)
the State Revenue Service,  in so far as is necessary to, may take account of the operating andcustoms supervision conditions of the free zones, adapt the control arrangements laid down.G/VAL/N/1/LVA/1
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Article 105. Stock account and records in a free zone.
(1) All persons carrying on an activity involving the storage, processing, or sale or purchase in a
free zone shall keep stock records in a form  a pproved by the customs authorities. Goods shall
be entered in the stock records as soon as they are brought into a free zone. The stock recordsmust enable the customs authorities to identify the goods and record their movements.
(2) Where goods are transshipped within a free zone, the documents relating to the operation
shall be kept at the disposal of the customs authorities. The short-term storage of goods in
connection with such transshipment shall be considered an integral part of the operation.
Article 106. Costs not to be included in the customs value.
Where a customs debt is incurred in respect of non-Latvian goods and the customs value of
such goods is based on the price actually paid or payable which includes the cost of warehousing or of
preserving goods while they remain in the free zone, such costs shall not be included in  the customs
value, if they are shown separately from the price actually paid or payable for the goods.
Article 107. Re-exportation, destruction and abandonment in favor of the state.
(1) Re-exportation shall be a customs procedure allowing to export non-Latvian goods from the
customs territory of the Republic of Latvia, where appropriate, involve the application of the
formalities laid down for goods leaving, including commercial policy measures.
(2) Destruction shall be a customs procedure allowing to destroy non-Latvian goods under
customs control exempting them from customs duties and without subjecting them to the
commercial policy measures.
(3) Abandonment shall be a customs procedure, allowing a person to refuse from non-Latvian
goods in favor of the State, without subjecting them to customs duties and commercial policymeasures.
Article 108. Regulations for the application of the procedures of destruction and
abandonment in favor of the State.
(1) The respective customs authority shall be notified about the destruction of goods.
(2) Destruction shall be prohibited in cases, where the destruction of the goods involves
additional expenditures from the state budget or incurs damage to the environment.
(3) Any waste or scrap resulting from the destruction of goods shall be subject to  the prescribed
appropriate customs procedure for non-Latvian goods. The waste and scrap shall remain
under customs supervision as long as necessary for the performance of the said customs
procedure.
(4) The arrangement prescribing the performance of the destruction or abandonment of goods in
favor of the state is defined by the provisions of the Cabinet of Ministers.
Title C
Customs control
Chapter XVIII
General provisions for customs control
Article 109. Customs control and kinds of control
(1) Customs control shall be performed by customs officials checking documentation and
information necessary for customs clearance, performing examination of goods, taking
samples, keeping records of goods that are moved across the customs border, verifying the
correctness of the  accounts and records in customs warehouses, customs control zones, duty-G/VAL/N/1/LVA/1
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free shops, free zones and other places containing the goods under customs control, as well as
practising other kinds of customs control prescribed by this Law and other provisions
governing customs matters.
(2) Where performing customs control, it shall be allowed to make use of technical means,
without bringing harm to human lives and health, not being detrimental to animals or plantsand without damaging goods and incurring losses to persons.
(3) The methodology of customs control shall be defined by the State Revenue Service.
Article 110. Customs control zones
(1) In order to perform customs control, the Customs Board shall define the customs control
zones as prescribed by the Cabinet of Ministers.
(2) The movement of goods, persons and commercial means of transport across the borders of the
customs zones shall be effected only under authorization and control of customs authorities.
(3) The presence and activities of foreign customs control services in the customs control  zone
shall be coordinated with the State Revenue Service.
(4) In order to perform business activities in the cu stoms control zone it is necessary to obtain an
authorization issued by the State Revenue Service, unless stated otherwise in the existing
customs legislation
Article 111. Customs seals and fastenings
(1) Goods, commercial means of transport, premises and other places where goods under customs
control may be located may be secured by affixing seals, stamps and other customs
fastenings.
(2) Customs seals and fastenings may be removed, changed or destroyed only by customs
authorities or upon their authorization.
(3) The application of customs seals and fastenings shall be defined by the State Revenue
Service.
Article 111.
1 Customs control measures
(1) Customs offices may perform all or separate customs control measures in cases provided by
this Law and other customs - related normative acts.
(2) Non-performance of customs control measures doesn’t mean that persons are released from
obligation to follow procedure determined by international agreements, this Law and other
normative acts.
Article 112. Exemption from customs control.
(1) Personal effects of diplomats and members of their families, the Parliament (Saeima)
members of the Republic of Latvia, the members of the Cabinet of Ministers, diplomatic
couriers shall be exempt from customs control unless the customs authorities have justified
suspicions about the presence among the said personal effects of the following goods:
1) goods not intended for personal use or official use of the diplomatic representation office
(in respect to the diplomats of the Republic of Latvia);
2) goods whose import or export is prohibited in accordance with the existing legislation;
3) goods whose import or export is regulated by quarantine or any other special regulations.
(2) The examination of goods shall be performed only in the presence of the said persons or their
representatives.G/VAL/N/1/LVA/1
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(3) Consignments of the diplomatic mail of the Republic of Latvia shall be exempt from customs
control.
Article 113. Physical examination of a person
(1) Physical examination of a person as an exceptional form of customs control may be
performed upon a written decision by the head of  the customs office or his deputy, where
there is sufficient ground to deem that the person crossing the customs border, while being in
the customs control zone, is hiding such goods on him the movement of which across the
customs border is prohibited or which are introduced for commercial purposes.
(2) Prior to physical examination of a person the customs official shall notify the respective
person of its rights and obligations linked with the performance of such an examination andshall  propose to produce on his free will the goods hidden.
(3) The physical examination of a person may be performed by an especially authorized customs
official of the same sex as the person to be examined in the presence of two persons of the
same sex invited. The examination shall be performed in an isolated room meeting sanitary
and hygienic requirements. Persons that do not participate in the physical examination of aperson may not enter the said room, as well as observe the performance of the examination.
Skin search of a person may be performed only by a medical officer.
(4) The procedure of performing the physical examination of a person shall be defined by the
Cabinet of Ministers.
Chapter XIX
Regulations applicable to customs control in respect to goods
Article 114. Goods subject to customs control
(1) Customs control shall be applicable to all goods and commercial means of transport crossing
the customs border, except the cases referred to in this Law.
(2) In accordance with the regulations of the Cabinet of Ministers the respective goods shall be
subject to the control of sanitary border inspection.
Article 115. Customs control after release of goods
After goods have been released for free circulation the customs control may be effected where
there  is justified ground to believe that international agreements and other normative acts have been
violated.
Article 116. Examination of customs declarations, other related documents and goods
Customs authorities shall perform examination of customs declaration related freight
documents and goods after the submission of the customs declaration and all the supporting
documents and information, while in respect of the goods referred to in Article 132 of this Law, - in
the priority order.
Article 117. Taking of samples
(1) Customs authorities may take samples  of the goods under customs control in the quantities
necessary for performing analysis.
(2) The procedure of taking samples is prescribed by the State Revenue Service.G/VAL/N/1/LVA/1
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Article 118. Presence of the declarant during the examination of goods
(1) The declarant shall have the right to be present during the examination of goods.
(2) The customs authorities shall be entitled to carry out examination of goods in the absence of
the declarant in the following cases:1) if the person concerned does not arrive to the place of examination and at the time
designated by the customs authorities;
2) where the examination is to be performed for the purposes of ensuring  national security,
public order and ensuring human life and health;
3) where examination of international postal items has to be effected.
(3) The examination of goods referred to in paragr aph (2) of this Article shall be performed in the
presence of the witness invited.
Article  119. Conveyances subject to control
(1) In accordance with international agreements or  agreements with foreign customs authorities
and other relevant institutions, in particular cases, customs control,  may be performed,practising the method of the controllable conveyances, i.e., under customs control it is
permitted to import, export or move in transit across the customs territory narcotic and
psychotropic substances, and precursors included in the international illegal traffic as well as
other conventionally  prohibited goods.
(2) The decision about the application of the controllable conveyance method shall be taken by
the State Revenue Service in coordination with the Ministry of Interior Affairs.
Title D
Pre-clearance
Chapter XX
General provisions of pre-clearance
Article 120. Scope of the pre-clearance
Pre- clearance activities in respect of goods brought into the customs territory are performed
prior to the application of the customs procedure. In the course of pre-clearance operations the
customs authorities shall take the control measures intended to prevent the movement of prohibitedgoods across the customs border and to identify the goods.
Article 121. Presentation of goods and documents to customs (at the customs checkpoint)
(1) When crossing the customs border the carrier shall be responsible for presentation of goods
and documents relating to goods to the customs office (the customs checkpoint)  in an
unaltered state and quantity.
(2) Where by reason of an accident or unforeseeable circumstances or force majeure, the carrier
fails to fulfill the obligations laid down in paragraph(1) of this Article, he shall be responsible
for taking all measures to ensure that the goods and the evidence remain intact, preventingany unauthorized actions with the said goods, and promptly informing the nearest customs
office of the situation, and, where appropriate, the sanitary border inspection about the nature
of the event and the location of the goods. The customs authorities shall specify the customs
control measures to be taken in this case.
(3) The customs authorities are not entitled to comp ensate the losses incurred to the carrier for the
execution of the requirement referred to in this Article.G/VAL/N/1/LVA/1
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Article 122. Pre-clearance document
(1) A person may submit a pre-clearance document entering goods and the related documents
after presenting them to the customs authorities (the customs checkpoint) until placing the
goods under the customs procedure.
(2) The pre-clearance document shall not be used where the goods presented to the customs
authorities (the customs checkpoint) are not promptly assigned the appropriate customs
procedure.
(3) The pre-clearance document shall contain the most relevant particulars ensuring the
identification of goods in further completion of customs formalities. The procedure of
application of the pre-clearance  document shall be defined by the Cabinet of Ministers.
(4) Transport, commercial and other documents, also documents completed in other languages
may be used instead of a pre-clearance document, provided that these documents contain the
particulars needed for a pre-clearance document.
(5) The pre-clearance document shall be completed without delay.
Chapter XXI
Temporary storage
Article 123. General provisions for the temporary storage procedure
(1) Goods form the acceptance date of the pre-clearance document until being assigned a customs
procedure remain in temporary storage under customs control.
(2) The period of temporary storage shall not exceed 45 days, if goods are transported by sea
transport, and 20 days, if they are transported by  other means of transport, starting with the
date of the submission of the pre-clearance document.
(3) The treatment of goods under the procedure of temporary storage shall be defined by the State
Revenue Service.
Article 124. Responsibility for the preservation of goods
While goods remain under the procedure of temporary storage the holder of the goods  or the
person having accepted the goods for temporary storage or both of the said persons shall share the
responsibility.
Article 125. Activities in respect  of goods under temporary storage
The following activities shall be approved by the customs authorities in respect of goods in
temporary storage ensuring their preservation in an unaltered state:
1)  unloading of goods;
2)  examination and measurement of goods
3)  sampling of goods.
Title E
Customs clearance
Chapter XXII
General provisions for customs clearance
Article 126. Documentation and particulars required for customs clearance
(1) When moving goods across the customs border and performing activities under customs
control, the holders of goods are obliged to submit to the customs authorities all theG/VAL/N/1/LVA/1
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documentation as well as the information required for customs clearance that may be
presented also in a foreign language.
(2) The list of the documents and information,  the procedure of submission, the period of
preservation of the said documentary evidence which may not be shorter than three years
irrespective of the medium of information, in accordance with this Law and other existinglegislation shall be defined by the Cabinet of Ministers.
Article 127. Place and time for customs clearance
(1) Customs clearance shall be performed at the customs offices (customs checkpoints) during
their office hours, but at the request and at the expense of the person concerned clearance may
be performed at any other place and time.
(2) The Cabinet of Ministers may define that cust oms clearance of particular kinds of goods shall
be performed only in especially designated customs offices.
Article 128. Presence of the declarant during the customs clearance
The declarant shall be entitled to be present during the customs clearance of goods.
Article 129. Language of completing the customs documents
The customs authorities shall complete custom s declarations of all kinds in the Latvian
language.
Article 130. Customs clearance after the control by the other state institutions
In accordance with the legislation referring to particular cases the clearance of goods moved
across the customs border may be completed only after the goods have undergone the mandatory
veterinary, phytosanitary and other kinds of control.
Article 131. Handling of uncleared goods
No person has the rights to handle uncleared goods save the cases prescribed by this Law and
other normative acts.
Article 132. Simplified clearance procedure
When moving goods forwarded as aid to those affected by natural disasters, accidents and
similar calamities across the customs border, the clearance of the said goods shall be effected in asimplified and priority-based order specified by the State Revenue Service.
Chapter XXIII
Declaration of goods
Article 133. General provisions of declaration
(1) All goods intended to be placed under a customs procedure shall be covered by a declaration.
(2) Latvian goods declared for an export, outward processing, transit or customs warehousing
procedure shall be subject to customs supervision from the time of acceptance of the customsdeclaration until such time as they leave the customs territory or are destroyed or the customs
declaration is invalidated.
(3) Non-Latvian goods are under customs control from the moment they are entered into the
customs territory, until they obtain the status of Latvian goods, are entered into free zone, re-G/VAL/N/1/LVA/1
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exported from the customs territory, destructed or the person abandons them to the
Exchequer.
Article 134. Requirements for completing a customs declaration
(1) The customs declaration shall be made:
1) in writing;
2) using a data-processing and transmission media where provided for by the provisions laid
down by the State Revenue Service;
3) by means of an oral declaration; whereby the holder of the goods expresses his wish to
place them under the customs procedure, where such a possibility is provided for by therules adopted by the State Revenue Service.
(2) Declarations in writing shall be made on a form corresponding to the official specimen
prescribed for that purpose. The customs declaration shall contain all the particulars necessary
for implementation of the provisions govern ing the customs procedure for which the goods
are declared. The customs declaration shall be signed.
(3) The customs declaration shall be accompanied by all the documents required for
implementation of the provisions governing the customs procedure for which the goods are
declared.
Article 135. Acceptance of a customs declaration
Declarations which comply with the conditions laid down in Article 134 of this Law shall be
accepted by the customs authorities immediately, provided that the goods to which they refer are
presented to customs.
Article 136. Declarant
(1) Subject to Article 18 of this Law, a customs declaration may be made by any person who is
able to present the goods in question to the customs authorities together with all the
documents which are required to be produced for the application of the rules governing the
customs procedure in respect of which the goods were declared.
(2) However, where acceptance of the customs declaration is part of the obligations of the
particular person, the declaration must be made by this person or any other person on its
behalf. The declarant must be a person established in the Republic of Latvia.
(3) However the conditions regarding the establishment in the Republic of Latvia shall not apply
to persons who:
1) make a declaration for transit or temporary importation; or
2) declare goods on an occasional basis provided that the State Revenue Service consider this
to be justified.
Article 137. Amendments in a customs declaration
The declaration shall at the request of the declarant, be authorized to amend one or more of
the particulars of the declaration after it has been accepted by the customs authorities. The
amendments shall not have the effect of rendering the declaration applicable to goods other than thoseit originally covered. However, no amendment shall be permitted to be made in the customs
declaration after the customs authorities have performed at least one of the following activities:
1) have informed the declarant that they intend to examine the goods;G/VAL/N/1/LVA/1
Page 48
2) have established that the particulars in question are incorrect;
3) have released the goods.
Article 138. Invalidation of the customs declaration
(1) The customs authorities shall, at the request of  the declarant, invalidate a declaration already
accepted where the declarant furnishes proof that goods were declared in error for the
customs procedure covered by that declaration or that as a result of special circumstances, the
placing of the goods under the customs procedure for which they were declared is no longer
justified. Nevertheless, where the customs author ities have informed the declarant of their
intention to examine the goods, a request for invalidation of the declaration shall not be
accepted until after the examination has taken place.
(2) The declaration shall not be invalidated after the goods have been released, except in cases
defined by the State Revenue Service.
(3) Invalidation of the declaration shall be without prejudice to the application of the penal
provisions in force.
Article 139. Date of acceptance of the customs declaration
The date of acceptance of the customs declaration by the customs authorities shall be the date
to be used for the respective customs procedure for which the goods are declared.
Article 140. Verification of the customs declaration
For the verification of declarations which they have accepted,  the customs authorities may:
1) examine the documents covering the declaration and the documents accompanying it, as well as
they may require the declarant to present other documents;
2) examine the goods and take samples for analysis or for detailed examination.
Article 141. Obligations and rights of the declarant
(1) Transport of the goods to the place where they are to be examined and samples are to be
taken, and all handling necessitated by such examination or taking of samples, shall be carriedout by or under responsibility of the declarant. All costs incurred shall be borne by the
declarant.
(2) The declarant shall be entitled to be present when the goods are examined and when samples
are taken. Where they deem it appropriate,  the customs authorities shall require the declarant
to be present or represented when the goods are examined or samples are taken in order toprovide them with the assistance necessary to facilitate such examination or taking of
samples.
(3) Provided that samples are taken in accordance with the provisions in force, the customs
authorities shall not be liable for payment of any compensation in respect of the samples but
shall bear the costs of their analysis or examination.
Article 142. Examination of goods covered by the customs declaration
(1) Where only part of the goods covered by the declaration are examined, the results of a partial
examination shall be taken to apply to all the goods covered by that declaration. However, thedeclarant may request a further examination of the goods if he considers that the results of the
partial examination may not be applied to the remainder of the goods declared.
(2) Where a declaration form covers two or more items, the particulars relating to each item shall
be deemed to constitute a separate declaration.G/VAL/N/1/LVA/1
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Article 143. Application of the results of the v erification of the information included in the
declaration
(1) The results of verifying the information includ ed in  the declaration shall be used for the
purposes of applying the provisions governing the customs procedure under which the goodsare placed.
(2) Where the customs declaration is not verified, the provisions referred to in paragraph (1) of
this Article shall be applied on the basis of the particulars contained in the declaration.
Article 144. Identification of the goods declared
(1) The customs authorities shall take the measures necessary to identify the goods where
identification is required in order to ensure the compliance with the conditions governing the
customs procedure for which the said goods have been declared.
(2) Means of identification affixed to the goods and means of transport shall be removed only by
the customs authorities or with their permission unless, as a result of unforeseeable
circumstances or force majeure, their removal or destruction is essential to ensure theprotection of the goods or means of transport.
Article 145. Release of goods without examination when accepting the customs declaration
(1) Without prejudice to Article 146 of this Law, where the conditions for placing the goods
under the procedure in question are fulfilled and provided the goods are not subject to any
prohibitive or restrictive measures ,the customs authorities shall release the goods as soon as
the particulars in the declaration have been verified or accepted without verification. The
same shall apply where such verification cannot be completed within a reasonable period of
time and the goods are no longer required to be present for verification purposes.
(2) All the goods covered by the same declaration shall be released at the same time.
Article 146. Cases when goods are not released when accepting the customs declaration.
(1) Where acceptance of a customs declaration gives rise to a customs debt, the goods covered by
the declaration shall not be released unless the customs debt has been paid or secured.
However, without prejudice to paragraph (2) of this Article, this provision shall not apply tothe temporary importation procedure with partial relief from import duties.
(2) Where, pursuant to the provisions governing the customs procedure for which the goods are
declared, the customs authorities require the provision of a security, the said goods shall not
be released for the customs procedure in question until such security is provided.
Article 147. Special cases when handling declared goods
Any necessary measures, including confiscation and sale shall be taken to deal with goods
which:
(1) cannot be released because:
a) it has not been possible to undertake or continue examination of the goods within the
period prescribed by the customs authorities for reasons attributable to the declarant, or
b) the document which must be produced before the goods can be placed under the customs
procedure requested have not been produced,
c) payments or security which should have been made or provided in  respect of customs
duties have not been made,
d)   they are subject to bans or restrictions;G/VAL/N/1/LVA/1
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(2) are not delivered to the customs warehouse within a reasonable time after the completion of
the respective customs formalities.
Chapter XXIII1
Simplified declaration procedure
Article 1471. The form and content of simplified customs declaration
(1) In order to simplify the clearance procedure of goods, customs authorities shall allow:
1)  not to produce a particular information in the customs declaration or not to accompany the
customs declaration by particular documents  necessary for completion of the customsprocedure;
2)  to lodge a commercial document accompanied by an application concerning the  discharge
of particular customs procedure instead of customs declaration;
3) to discharge the customs procedure by registering necessary information a data-processing
technique. In such case presenting of goods to customs is not compulsory.
(2) Applying simplified customs declaration, it shall contain particulars necessary for
identification of goods.
Article 147
2. Supplementary declaration
(1) Applying the simplified declaration procedure, declarant is responsible for presenting  a
supplementary declaration of a general, periodic or recapitulative nature to customs
authorities.
(2) Supplementary customs declaration together with simplified customs declaration forms a
single and indivisible instrument, taking effect on the date of acceptance of the simplified
customs declaration.
(3) Data-processing technique has the same legal effect as a customs declaration in writing.
(4) Types of simplified customs declaration and procedure of their application is determined by
the Cabinet of Ministers.
Chapter XXIV
Customs clearing agent
Article 148. Status of customs clearing agent.
The customs clearing agent is a person established in the Republic of Latvia, who carries out
in his name and on behalf of the holder of the goods the intermediary functions between the holder of
the goods and the customs authorities, ensuring the customs clearance prescribed by this Law and
paying all the customs duties and other charges specified by the existing legislation.
Article 149. Authorization of customs clearing agents
(1) The activities performed by the customs clearing agent, the procedure of granting the
authorization and the term of validity shall be defined by the Cabinet of Ministers.
(2) The authorization for performing activities of customs clearing agent shall be issued,
invalidated or revoked by the State Revenue Service.
(3) The authorization shall be invalidated, where it has been issued on the basis of incomplete or
incorrect information having an essential effect on taking the decision to issue the said
authorization. The decision on the invalidation  of the authorization shall take effect on the
date of acceptance of the said decision.G/VAL/N/1/LVA/1
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(4) The authorization shall be revoked in case the customs clearing agent has not complied with
the requirements prescribed by this Law, as well as in cases when the customs clearing agent
is recognized or announces himself to be insolvent. The decision on the invalidation of the
authorization shall take effect on the date of acceptance of the said decision.
(5) The authorization shall be suspended for the period not exceeding three months by the
customs authorities supervising the performance of the customs clearing agent, having
sufficient ground for suspecting the said agen t for not complying with the requirements
specified by the existing legislation.
Article 150. Registration of customs clearing agents
The Sate Revenue Service shall perform the registration of customs clearing agents and shall
provide  regular inclusion of the list of the said agents in official publications.
Title F
Reliefs from customs duties in respect to certain categories of non-Latvian persons.
(deleted 22.10.1998)
Section G
Provisions of  the Application of Customs duties
Chapter XXVII    Value of goods for Customs purposes
Article 151.  Determination of customs value
The customs value of goods is the base for calculation of customs duties.  The order of
calculation of customs value of goods is determined by the Cabinet of Ministers.
Article 152. Similar goods
(1) Similar goods means goods which, although not alike in all respects, have like characteristics
and like component materials which enable them to perform the same functions and to be
commercially interchangeable and are produced in the same country.
(2) The quality of the goods, their reputation and the existence of a trademark are among the
factors to be considered in determining whether goods are similar.
(3) Goods produced by a different person shall be taken into account only when there are no
identical goods or similar goods, as the case may be, produced by the same person as the
goods being valued.
Article 153. Identical goods
(1) Identical goods means goods which are the same in all respects, including physical
characteristics, quality and reputation and are produced in the same country.
(2) Minor differences in appearance would not preclude goods otherwise conforming to the
definition from being regarded as identical.
Article 154. Related persons
Persons shall be deemed to be related only if:
1)  they are officers or directors of one another’s businesses;
2)  they are legally recognized partners in business;
3)  they are employer and employee;G/VAL/N/1/LVA/1
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3) any person directly or indirectly owns, controls or holds 5 percent or more of the
outstanding voting stock or shares of both of them;
4)  one of them directly or indirectly controls the other;
5)  both of them are directly or indirectly controlled by a third person;
6)  together they directly or indirectly control a third person;7)  they are members of the same family.
Article 155.  Valuation of goods based on the transaction value
(1) The Customs value of imported goods shall be the transaction value, that is, the price actually
paid or payable for the goods when sold for export to the Customs territory of the Republic of
Latvia, adjusted, where necessary, in accordance with Articles 168 and 169, provided that theprovisions of  paragraph (2) of this Article are taken into account.
(2) The customs value of the goods being valued is deemed to be the transaction value if:
1) there are no restrictions as to the disposal or use of the goods by the buyer, other than
restrictions which:
a) are imposed or requested by a Law or by the public authorities in the Republic of
Latvia,
b) limit the geographical area in which the goods may be resold,
c) do not substantially affect the value of the goods;
2) the sale or price is not subject to some condition or consideration for which a value
cannot be determined with respect to the goods being valued;
3) no part of the proceeds of any subsequent resale, disposal or use of the goods by the
buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment
can be made in accordance with Article 168; and
4) the buyer and seller are not related, or, where the buyer and seller are related, that the
transaction value is acceptable for Customs purposes under paragraph (2).
(3) In a sale between related persons, the transaction value shall be accepted and the goods
valued in accordance with paragraph 1 wherever the declarant demonstrates that such value
closely approximates to one of the following occurring at or about the same time:
1) the transaction value in sales, between buyers and sellers why are not related in any
particular case, of identical or similar goods for export to the Republic of Latvia;
2) the Customs value of identical or similar goods, as determined under Article 166 (2) 3);
3) the Customs value of identical or similar goods, as determined under Article 166 (2) 4).
(4) In applying the foregoing tests, due account shall be taken of demonstrated differences in
commercial levels, quantity levels, the elements enumerated in Article 168 and costs incurred
by the seller in sales in which he and the buyer are not related and where such costs are not
incurred by the seller in sales in which he and the buyer are related.
(5) The tests set forth in paragraph 3 are to be used at the initiative of the declarant and only for
comparison purposes. Substitute values may not be established under the said paragraph.
Article 156. Determination methods of identical or similar goods
(1) Where the Customs value cannot be determined under Article 165, it is to be determined by
proceeding sequentially through subparagraphs 1), 2), 3) and 4) of paragraph (2) to the firstsubparagraph under which it can be determined, subject to the provision that the order of
application of subparagraphs 3) and 4) shall be reversed if the declarant so requests; it is only
when such value cannot be determined under a particular subparagraph that the provisions of
the next subparagraph in a sequence established by virtue of this paragraph can be applied.G/VAL/N/1/LVA/1
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(2) The Customs value as determined under this Article shall be:
1) the transaction value of identical goods sold for export to the Republic of Latvia and
exported at or about the same time as the goods being valued;
2) the transaction value of similar goods sold for export to the Republic of Latvia and
exported at or about the same time as the goods being valued;
3) the value based on the unit price at which the imported goods for identical or similar
imported goods are sold within the Republic of  Latvia in the greatest aggregate quantity
to persons not related to the sellers:
4) the computed value, consisting of the sum of:
a) the cost or value of materials and fabrication or other processing employed in
producing the imported goods,
b) an amount for profit and general expenses equal to that usually reflected in sales
of goods of the same class or kind as the goods being valued which are made by
producers in the country of exportation for export to the Republic of Latvia,
c) the cost or value of the items referred to in Article 168 (1) 5).
Article 157. Valuation method of special cases
(1) Where the Customs value of imported goods cannot be determined under Articles 165 or 166,
it shall be determined, on the basis of data available in the Republic of Latvia, using
reasonable means consistent with the principles and general provisions of:
1) the agreement on implementation of Article VII of the General Agreement on Tariffs and
Trade,
2) Article VII of the General Agreement on Tariffs and Trade,
3) the provisions of this chapter.
(2) No Customs value shall be determined under paragraph 1 on the basis of:
1) the selling price in the Republic of Latvia of goods produced in the Republic of Latvia;
2) a system which provides for the acceptance for Customs purposes of the higher of two
alternative values;
3) the price of goods on the domestic market of the country of exportation;
4) the cost of production, other than computed values which have been determined for
identical or similar goods in accordance with Article 166 (2) 4);
5) prices for export to a third country;
6) minimum Customs values; or
7) arbitrary or fictitious values.
Article 158. Expenses included in the customs value
(1) In determining the Customs value under Article 165, there shall be added to the price actually
paid or payable for the imported goods:
1) the following, to the extent that they are incurred by the buyer but are not included in the
price actually paid or payable for the goods:
a) commissions and brokerage, except buying commissions,
b) the cost of containers which are treated as being one, for Customs purposes, with
the goods in question,
c) the cost of packing, whether for labour or for materials;
2) the value, apportioned as appropriate, of the following goods and services where supplied
directly or indirectly by the buyer free of charge or at reduced cost for use in connectionG/VAL/N/1/LVA/1
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with the production and sale for export of the imported goods, to the extent that such
value has not been included in the price actually paid or payable:
a) materials, components, parts and similar items incorporated in the imported
goods,
b) tools, dies, molds and similar items used in the production of the imported goods,
c) materials consumed in the production of the imported goods,
d) engineering, development, artwork, design work, and plans and sketches
undertaken elsewhere than in the Republic of Latvia and necessary for the
production of the imported goods;
3) royalties and license fees related to the goods being valued that the buyer must pay, either
directly or indirectly, as a condition of sale of the goods being valued, to the extent that
such royalties and fees are not included in the price actually paid or payable;
4) the value of any part of the proceeds of any subsequent resale, disposal or use of the
imported goods that accrues directly or indirectly to the seller;
5) to the place of introduction into the Customs territory of the Republic of Latvia:
a) the cost of transport and insurance of the imported goods, and
b) loading and handling charges associated with the transport of the imported goods
(2) Notwithstanding paragraph (1) 3):
1) charges for the right to reproduce the imported goods in the Republic of Latvia shall not
be added to the price actually paid or payable for the imported goods in determining theCustoms value; and
2) payments made by the buyer for the right to distribute or resell the imported goods shall
not be added to the price actually paid or payable for the imported goods if such payments
are not a condition of sale for the export of the goods to the Republic of Latvia.
Article 159. Expenses that are not included in the customs value
Provided that they are shown separately from the price actually paid or payable, the following
shall not be included in the Customs value:
1) charges for the transport of goods after their arrival at the place of introduction into the
Customs territory of the Republic of Latvia;
2) charges for construction, erection, assembly, maintenance or technical assistance,
undertaken after importation of the imported goods such as industrial plant, machinery or
equipment;
3) charges for interest under a financing arrangem ent entered into by the buyer and relating
to the purchase of imported goods, irrespective of whether the finance is provided by theseller or another person, provided that the financing arrangement has been made in
writing and where required, the buyer can demonstrate that:
a) such goods are actually sold at the price declared as the price actually paid or
payable, and
b) the claimed rate of interest does not exceed the level for such transactions
prevailing in the country where, and at the time when, the finance was provided;
4) charges for the right to reproduce imported goods in the Republic of Latvia;
5) buying commissions;
6) import duties or other charges payable in the Republic of Latvia by reason of the
importation or sale of the goods.G/VAL/N/1/LVA/1
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Article 160. Re-calculation of currency
Where  factors used to determine the Customs value of goods are expressed in a currency
other than that of the Republic of Latvia, the rate of exchange to be used shall be that duly published
by the competent authorities of the Republic of Latvia.
Chapter XXVIII
Customs tariff
Article 161. Customs tariff
(1) Goods to be moved across the customs border shall be subject to customs tariffs the rates of
which are defined in accordance with the law “On customs tariff”.
(2) Customs tariff is a definite system of the rates of customs duties.
The customs tariff shall comprise:
1) the Combined Nomenclature of the Republic of Latvia based on the Nomenclature of the
Harmonized Commodity Description and Coding System;
2) the rates of customs duties.
(3) The Combined Nomenclature of the Republic of Latvia is the nomenclature based on the
Nomenclature of the Harmonized Commodity Description and Coding System and the EUCombined Nomenclature.
Code numbers 1-6 of the Combined Nomenclature of the Republic of Latvia to the code of
the Nomenclature of the Harmonized Commodity description and Coding System, code
numbers 1-8 - to the code of the EU Combined Nomenclature, but code 9 is reserved for
designating specific goods of the Republic of Latvia.
(4) The Nomenclature of the Harmonized Commodity   Description and Coding System is used as
the nomenclature of goods for statistical, customs and commercial purposes. Classification of
the Harmonized System includes all the goods used in international trade. The harmonized
System comprises six classification levels - chapters, groups, subgroups, headings and
subheadings.
(5) The rates of customs tariff shall comprise:
1) the basic rate- the rate which is established in accordance with the law “On customs
tariffs”;
2) rates applicable in trade with countries with the preferential tariff treatment;
3) rates applicable in trade with countries having free trade agreements with the Republic of
Latvia;
4) rates applicable in trade with countries granted the preferential tariff treatment by the
Republic of Latvia.
(6) Where the customs legislation or  international agreements define quotas in respect to the
application of customs rates specified in paragraph(5) indents 2) to 4) of this Article, the ratesshall not be applicable unless the volumes of goods specified by the quota are reached.
Chapter XXIX
Origin of goods
Article 162. Non-preferential origin of goods
(1) Non-preferential origin of goods obtained or produced in the Republic of Latvia shall be
established in compliance with paragraph (2) and (3) of this Article, but goods imported intoG/VAL/N/1/LVA/1
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the Republic of Latvia - based on documents certifying the origin of goods, provided in
respective international agreements and normative acts, in order:
1) to apply the rates of the customs tariff referred to in paragraph (5) indents 1) and 2) of
Article 171 of this Law;
2) to apply other commercial policy measures as prescribed by customs legislation;
3) prepare and issue non-preferential certificates of origin.
(2) The country of origin is the country where goods are wholly obtained and produced. Goods
shall be considered to be wholly obtained or produced in that country if they are:
1) mineral products extracted within the country;
2) vegetable products harvested therein;
3) live animals born and raised therein;
4) products derived from animals raised therein;
5) products of hunting or fishing carried on therein;
6) products of sea-fishing and other products taken from the sea outside   the country’s
territorial sea by vessels registered in the country concerned and flying the flag of that
country;
7) goods produced on board of factory ships registered in that country and flying the flag of
that country,  from the products referred to in paragraph (2) indent 6) of this Article.
8) products taken from the seabed  outside a country’s territorial sea provided that that
country has rights to exploit it;
9) waste or scrap products derived from manufact uring operations, as well as used articles if
collected in that country and are fit only for the recovery of raw materials;
10)goods which are produced therein from goods referred to in paragraph(2) indents 1) to 9)
of this Law.
(3) Goods whose production involves more than one  country shall be deemed to originate in the
country where they underwent their last, substantial, economically justified processing or
working operation resulting in the manufacture of a new product. The Cabinet of Ministers or
a relevant institution authorized to do so can define which operations shall be considered the
last, substantial, economically justified processing or working operations.
(4) Conventional origin of goods shall be proved  by providing documentary evidence, presenting
the certificate of origin of goods and other documentary evidence proving the origin to the
customs authorities as prescribed by the respective international agreements and legislation.
Article 163. Preferential origin of goods
(1) Preferential origin of goods shall be defined to apply the rates of customs duties pursuant to
paragraph (5) indents 3) and 4) of Article 171 of this Law or to make use of commercial
preferences rendered to the Republic of Latvia - GSP (General System of Preferences).
(2) Preferential origin of goods shall be dete rmined in accordance with the rules laid down in
international trade agreements.
(3) Preferential origin of goods shall be proved  by providing documentary evidence, presenting
the certificate of origin of goods and other supporting documents to the customs authorities as
prescribed by the respective international agreements and legislation.  Customs authorities
may require also  other kinds of evidence proving the origin of goods.G/VAL/N/1/LVA/1
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Chapter XXX
Drawback
Article 164. General provisions of drawback
(1) Customs duties shall be repaid provided th at the customs authorities have been submitted
documentary evidence that the amount of such duties was not legally owed.
(2) Application on the drawback shall be submitted within a period of three years from the date
on which the amount of the said customs duties was paid.
Article 165. Drawback on invalidation of the customs declaration
Customs duties shall be repaid where a customs declaration is invalidated.
Title H
Customs debt
Chapter XXXI
Kinds of customs debt
Article 166. Customs debt on the release for free circulation of goods
(1) A customs debt on the release of goods for free circulation shall be incurred at the time of
acceptance of the customs declaration.
(2) The debtor shall be the declarant.
Article 167. Customs debt on exportation
(1) A customs debt on exportation shall be incurred at the time of acceptance of the declaration.
(2) The debtor shall be the declarant.
Article 168. Customs debt in respect to the illegal movement of goods
(1) A customs debt in respect to the illegal movement of goods shall be incurred at the time when
the said goods are illegally moved across the customs border or the border of the free zone.
(2) The debtor shall be:
1) the persons who removed the goods illegally;
2) any persons who participated in such remova l and who were aware or  should reasonably
have been aware that such movement was illegal;
3) any persons who have purchased and owned such goods and who were aware or should
reasonably have been aware at the time of purchasing that the goods were moved
illegally.
 
Article 169. Customs debt in respect to avoidance from customs control
(1) A customs debt in respect to avoidance from  customs control shall be incurred at the time
when the person evades from subjecting the goods to the customs control.
(2) The debtor shall be:
1) the persons evading from subjecting the goods to the customs control;
2) any persons who participated in such proce ss and who were aware or should reasonably
have been aware that they are evading from subjecting goods to customs control;G/VAL/N/1/LVA/1
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3) any persons who have purchased and owned such goods and who were aware or should
reasonably have been aware at the time of purchasing that they are evading from
subjecting goods to customs control.
 
Article 170. Customs debt in respect to the non-fulfillment of the obligations and provisions
(1) A customs debt in respect to the non-fulfilment of the obligations and provisions shall be
incurred where:
1) one of the obligations in respect to the payment of customs duties for keeping the goods
in question in temporary storage or the use of the customs procedure under which the
goods have been placed is not fulfilled;
2) the provisions requiring the payment of customs duties in respect to exemption of goods
from customs duties are not fulfilled.
(2) A customs debt shall be incurred either at the time when one of the obligations is not fulfilled
or the provisions in respect to placing the goods under a customs procedure or conditions inrespect to the exemption of goods from customs duties are not fulfilled.
(3) The debtor shall be a person responsible for th e execution of the liabilities referred to in this
Article.
Article 171. Customs debt in respect to unauthorized activities with goods in the free zone
(1) A customs debt shall be incurred where activities in respect to goods in the free zone are
performed against the provisions laid down in this Law and other legislation governing
customs matters.
(2) A customs debt shall be incurred:
1)   where the goods in question disappear and where their disappearance cannot be explained
to the satisfaction of the customs authorities;
2)   where the goods are subject to such activities that are not prescribed by this Law and
other legislation governing customs matters.
(3) The debtor shall be the person who:
1)   have performed the said activities with goods;
2) have participated in such activities and w ho was aware or should reasonably have been
aware that the gods were used for the purposes other than those laid down in this Lawand other provisions governing customs matters.
(4) Where a customs debt incurs due to the loss of goods, the debtor shall be the last person
known to have been in possession of the goods.
Article 172. Customs debt in respect to exportation of goods without a customs declaration
(1) Where  goods liable to customs duties are removed from the customs territory without
presenting a customs declaration, the customs debt shall be incurred at the time when the said
goods actually leave the customs territory.
(2) The debtor shall be:
1)  the persons who removed the goods from the customs territory;
2) any persons who participated in such remova l and who were aware or should reasonably
have been aware that a customs declaration had not been but should have been lodged.G/VAL/N/1/LVA/1
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Article 173. Special provisions in respect to the customs debt
A customs debt shall not be incurred where the customs procedure under which the goods
have been placed could not have been fulfilled due to unforeseeable circumstances or force majeure,
or the goods have been destroyed or irretrievably lost with the permission of the customs authorities.
Chapter  XXXII
Calculation of the customs debt
Article 174. Basis for calculation
A customs debt shall be calculated on the basis of the rates set in the normative provisions
effective on the date of the insurance of the customs debt.
Article 175. Calculation of the customs debt and entry in the accounts
(1) The amount of customs duty resulting from a customs debt shall be calculated,  entered in the
accounts and communicated to the debtor by the customs authorities.
(2) Where the amount of duty payable has been calculated by the debtor himself in the customs
declaration, in accordance with paragraph (1) of this Article the notification shall be sent only
when the amount of duty payable does not correspond to the amount of duty calculated by the
customs authorities.
Article 176. Persons sharing the debt
Where the debt has been incurred by several persons, they shall cover the customs debt
jointly.
Article 177. Settlement of the customs debt
(1) Amounts of duty payable communicated to the debtor shall be paid within the period set by
the customs authorities that shall not exceed 10 days following communication to the debtor
of the amount of the duty owed.  An extension shall be granted where it is established that the
debtor received the communication too late to enable him to make payment within the periodprescribed.
(2) Any customs debt may be paid by a third person instead of the debtor.
Article 178. Security to cover customs debt
(1) Where, in accordance with this Law, the customs authorities require security to be provided in
order to ensure payment of a customs debt, such security shall be provided by the person who
is liable or who may become liable for that debt. Where the debtor is a public authority, no
security shall be required. The security may be provided by a third person. The customs
authorities shall require only one security to be provided in respect of one customs debt.
(2) The amount of the security shall correspond to the amount of the customs debt, but where the
customs debt has not come into effect to the approximate highest possible amount of the
customs debt.
(3) The security shall not be released until such time as the customs debt in respect of which it
was given is extinguished or can no longer ar ise (when the customs procedure is discharged).
(4) The Cabinet of Ministers shall define the scope and the procedure of applying the security.G/VAL/N/1/LVA/1
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Article 179. Remission of customs duty
(1) The obligation to pay the customs duty shall be remitted where substituted proof has been
provided to the satisfaction of the customs auth orities that the amount of such duties entered
in the accounts was not legally owed.
(2) The request on the remission from the obligation to pay the customs duties shall be submitted
not exceeding the period of three years after the said amount of customs duties has been
entered in the accounts.
Article 180. Extinction of customs debt
A customs debt shall be extinguished:
1) by payment of the amount of customs duty;
2) by remission of the amount of customs duty;
3) upon invalidation of the customs declaration;
4) when goods are seized and confiscated, destroyed or abandoned in favor of the state, or,
before their release, the said goods are damaged or irretrievably lost due to unforeseeablecircumstances or force majeure.
5) granting the term extension of tax payment or applying the term and procedure of tax
payment envisaged in respective law, customs debt remains for those duties and taxes
included in tax payment, to which term  extension of tax payment or the term and
procedure of tax payment envisaged in respective law does not refer.
Article 181. Restitution of customs debt
Where a customs debt has been remitted or the corresponding amount of duty repaid in error,
the original debt shall again become payable.
Title I
Customs statistics and the Latvian Combined Nomenclature of Goods
Chapter XXXIII
Customs statistics
Article 182. Customs statistics or international trade
With the view of ensuring public authoritie s and other institutions with the data on
international trade and customs duties,  the Customs Board shall collect and process data on the
movement of goods across the customs border and shall present and publish the statistical customsdata in accordance with the existing legislation.
Chapter XXXIV
Latvian Combined Nomenclature of Goods
Article 183. Updating of the Latvian Combined Nomenclature of Goods
The Ministry of Finance shall ensure the updating of the Latvian Combined Nomenclature of
Goods:
1) by keeping up with the amendments of the Combined Nomenclature of Goods;
2) by harmonizing the Latvian Combined Nomenclature of Goods with the EU Combined
Nomenclature;G/VAL/N/1/LVA/1
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3) by representing the Republic of Latvia in the international organizations dealing with the
elaboration, amendments and explanations in respect to the Combined Nomenclature and
the Harmonized Commodity Description and Coding System.
Article 184. Identification of goods
The customs authorities shall identify goods according to the Latvian Combined
Nomenclature.
Transitional provisions
1. With this Law entering into effect the following laws and regulations are hereby repealed:
a) the law “On approval of the Customs Code of the Republic  of Latvia” (The Bulletin of the
Supreme Council and the Government of the Republic of Latvia, 1991,No.41);
b) The Customs Code of the Republic of Latvia (The Bulletin of the Supreme Council and the
Government of the Republic of Latv ia, 1991,No.41; 1992,No42; 1993,No34; 1995,No.17;
1996, No.22);
c) Regulations No.113 “Amendments to the Customs Code of the Republic of Latvia” issued by
the Cabinet of Ministers in compliance with Article 81 of the Satversme (the LR Constitution)
(The Bulletin of the Saeima and the Cabinet of Ministers of the Republic of Latvia,
1995,No.10).
2. Chapter XXVII of Title G of this Law “Customs value”  shall  enter into force as of
September 1, 1997. Until the date of the provisions of the said chapter entering into force the customs
value shall be defined as prescribed by Chapter 4 of the Law “On customs tariffs”.
The Law shall take effect as of July 1, 1997. Adopted by the Saeima on June 11, 1997.
In the name of the
President of the state
Chairman of the Saeima                                                  A. Čepânis
Riga, June 27, 1997
_________