UNITED NATIONS NATIONS UNIES

United Nations Transitional Administration Administration Transitoire des Nations Unies

in East Timor         au Timor Oriental

UNTAET

UNTAET/REG/2000/12

8 March 2000

REGULATION NO. 2000/12

ON A PROVISIONAL TAX AND CUSTOMS REGIME FOR EAST TIMOR

The Special Representative of the Secretary-General (hereinafter: Transitional Administrator),

Pursuant to the authority given to him under United Nations Security Council resolution 1272 (1999) of 25 October 1999,

Taking into account United Nations Transitional Administration in East Timor (UNTAET) Regulation 1999/1 of 27 November 1999 on the Authority of the Transitional Administration in East Timor,

After consultation in the National Consultative Council,

For the purpose of establishing a provisional tax and customs regime, to be followed by a more comprehensive tax and customs regime,

Promulgates the following:

Section 1

Scope of the Regulation

1.1         The present Regulation applies to imports into East Timor, exports from East Timor and the domestic production of goods in East Timor.

1.2         No taxes or duties other than those imposed under the present Regulation shall be imposed on these imports, exports and domestic production of goods.

1.3         The present Regulation shall not apply to goods that embarked for the destination of East Timor prior to the date of its entry into force.

Section 2 Import duty

2.1         Every importer of goods into East Timor shall pay an import duty equivalent to five

(5) per cent of the customs value of the goods.

2.2         The customs value shall be the transaction value of the goods, which includes cost, insurance and freight.

2.3       Goods that are destroyed, naturally damaged or decreased in quality, volume or weight between the time of transportation to the designated port of entry or border station and the time of release for domestic consumption shall be valued in accordance with an UNTAET directive.

2.4           The following imported goods shall be exempt from import duty:

(a)  humanitarian relief goods financed by international grants;

(b)  goods of a non-commercial nature imported in a personal capacity by travelers, up to US$ 300  per person, and the personal effects of travelers;

(c)  two hundred (200) cigarettes and two and one half (2.5) liters of excisable beverages per person;

(d)  imports of the type exempted under the Vienna Conventions on Diplomatic Relations of 1961 and Consular Relations of 1963 and imports exempted under the Convention on the Privileges and Immunities of the United Nations;

(e)  goods re-imported in the same condition in which they were exported;

(f)  goods imported by the United Nations, other international organizations, not-for- profit organizations, or foreign governments to be used or distributed  for  the public benefit as defined in an UNTAET directive, excluding goods imported for sale or private benefit, tobacco and alcohol products and the personal effects of employees;

(g)  goods for temporary admission;

(h)  baby formulas that provide the benefits of mothers’ milk; and

(i)  tampons and sanitary napkins.

2.5       Using the harmonized classification system, the owner, importer or licensed customs broker shall present all relevant documentation on all imported goods, whether exempt or not, to an officer of the Border Service for East Timor (hereinafter: Border Service), as provided in UNTAET Regulation No. 2000/9.

Section 3

 Excise and excise equivalent duty

3.1                Any person who produces for domestic usage in East Timor any of the goods listed in the table below shall pay excise duty at the rates listed in the table below. Exports of goods produced in East Timor shall be exempt from excise duty.

3.2                Any person who imports any of the goods listed in the table below into East Timor shall pay excise equivalent duty at the rates listed in the table below.

Table

Harmonized         General Description of Goods         Rate

3.3                        Excise duty and excise equivalent duty shall not apply to imported goods exempt from import duty under Section 2.4 of the present Regulation.

Section 4 Sales Tax

4.1                Every importer of goods shall pay sales tax equivalent to five (5) per cent of the sum  of the customs value of the goods, the import duty payable, and any excise equivalent duty payable.

4.2                Sales tax shall not apply to imported  goods  exempt  from  import  duty  under  Section 2.4 of the present Regulation.

Section 5

Presumptive Income Tax on Coffee Exports

5.1       Every exporter of coffee beans, whether processed or unprocessed, shall pay at the time of export a presumptive income tax equivalent to five (5) per cent of the value of those coffee beans.

5.2       The value of the coffee beans shall be assessed on a free on board basis and in accordance with an UNTAET directive.

5.3       Using the harmonized classification system, the owner, exporter or licensed customs broker shall present all relevant documentation on all exported coffee beans to an officer of the Border Service.