1 LA
W OF MONGOLIA ON CUSTOMS TARIFF S  AND CUSTOMS 
DUTIES  
CHAPTER 1  
GENERAL PROVISIONS 
Article 1. Purpose of the Law  
1.1. The purpose of the Law  is to regulate matters regarding 
determination of Customs tariff s and value, classification and origin of 
goods as well as levying, collection and payment of Customs duties and 
other taxes.  
Article 2. Legislation on Customs Tariff s and Customs Duties 
2.1. The legislation of Mongolia on Customs tariffs and Customs 
duties consists of the General Law on Taxation of Mongolia1, Customs 
Law of Mongolia2 and this Law  as well as other legal acts adopted in line 
with them.  
2.2. If the provisions of any international treaties of Mongolia differ 
from those specified in this Law, t he former shall prevail.  
Article 3. Definitions of Legal Terms  
3.1. The terms used in this Law shall mean as it follows:  
3.1.1. the term “Customs tariff” mean s a Customs duty rate; 
3.1.2. the term “Customs duty” mean s an amount of duties 
levied on, colle cted from or paid for goods , which enter or leav e the 
Customs territory, in accordance with  the Customs tariff s; 
3.1.3. the term “other tax” mean s an amount of tax imposed 
on, collected from or paid for goods , which  enter or leave the Customs 
territory, in  accordance with other Laws;  
1 Published in the Parliament News Release No.22 of 2008 
2 Published in the Parliament News Release No.23  of 2008  
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- 125 - 2 3.1.4. the term “Customs value” mean s a value determined in 
accordance with this Law for the purposes of levying Customs duties o r 
compiling Customs statistics;  
3.1.5. the term “Harmonized Commodity  Description and 
Coding Syste m” (thereafter referred to as “Harmonized System”) mean s a 
nomenclature comprising of Headings, Subheadings and their related 
numerical codes  as well as National codes (National Subheadings) and 
notes to Sections, Chapters and Subheadi ngs, and the General Rules for 
Interpretation of the Harmonized System;  
3.1.6. the term “taxpayer” mean s a person declaring goods  
crossing through th e Customs border  of Mongolia;  
3.1.7. the term “about the same time” mean s 90 days prior to  
declaration to Customs of the Customs  value of imported goods being 
valued;  
3.1.8. the term “levying Customs duties and other taxes” 
mean s an assessment of duties in accordance with this Law and other 
related legislation;  
3.1.9. the term “collection of Custom s duties and other taxes” 
mean s a remittance  by Customs into the State Budget  (Government 
Revenue)  of taxes levied on in accordance with this Law and other related 
legislation;  
3.1.10. the term “payment of Custom s duties and other taxes”  
mean s a transfer by a taxpayer to relevant tax accou nt of taxes levied on in 
accordance with this Law and other related legislation;  
3.1.11. the term “goods  of humanitarian and irrevocable 
assistance  (relief goods)” mean s goods referred to in 4.1.11 of the Law on 
Value Added Tax3. 
 
3.2. The other terms used in this Law in relation to Customs 
formalities shall have the same meaning  as defined in the Customs Law of 
Mongolia.  
 
CHAPTER 2  
CUSTOMS TARIFF SYSTEM, THE TYPES OF CUSTOMS DUTIES  
AND THE CUSTOMS TARIFF COUNCIL  
 
Article 4. Customs Tariff System, Adoption of and Amendment to 
Tariffs  
                                                
3 Published in the Parliament News Release No.40 of 2006  
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- 126 - 3  
4.1. In Mongolia Customs tariffs are applied on exported and 
imported goods. In adopting the Customs tariffs, the goods descriptions and 
respective classification codes shall be indicated in accordance with the 
Harmonized Syste m. 
 
4.2. The Customs tariffs on imported goods consist of basic  tariffs , 
the most -favoured nation (MFN) tariffs and preferential tariffs. The basic 
tariff s (basic rates ) twofold the MFN tariff s. The preferential tariff s are 
agreed by international treaties . (This provision is revised by the Law of 3 
December 2015 ) 
 
4.3. The Customs tariffs on exported goods and the MFN tariffs for 
imported goods are adopted by the State Great Khural of Mongolia.  
 4.4. The MFN tariffs are applied for goods originated from th e 
following foreign countries:  
4.4.1. a contracting party (or a member state) to a multilateral 
treaty on tariffs and trade to which Mongolia has acceded; 
4.4.2. a country as agreed   by an international treaty other than 
that referred to in 4.4.1 of this L aw; (This provision is amended by the Law 
of 3 December 2015)  
4.4.3. other country which is considered to be  appropriate to 
apply the MFN tariffs.  
 4.5. A list of countries eligible to the MFN tariffs and preferential 
tariffs is enacted by the Government  and the goods originated from a 
country included in the list should have the documentary evidence of 
origin . (This provision is added by the Law of 9 December 2016 ) 
 
4.6. For goods originated from a country not included  in the list 
referred to in the paragr aph 4.5 of this Law the basic tariffs are applied . 
(This provision is amended by the Law of 9 December 2016)  
 4.7. Where the retroactively or retrospectively issued documentary 
evidence of origin of goods  falling into  the paragraph 4.5 of this Law is 
lodge d with Customs within 45 days after the Customs had permitted the 
goods to enter the Customs territory , the preferential tariffs  are applied. In 
that case, the excess duty amount paid is refunded by Customs  in 
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- 127 - 4 accordance with the provisions of the relevant  legislation . (This provision is 
amended by the Law of 9 December 2016)  
 
4.8. The Customs tariffs may be adopted on a temporary base. The 
temporary tariffs are applied for a period not exceeding 6 months per year.  
 
4.9. The Customs tariffs may be adopted by reference to a specific 
border  point.  
 
4.10. The preferential tariffs are applied for imported goods in 
accordance with international treaties of Mongolia . (This provision is added 
by the Law of 3 December 2015)  
 
4.11. The goods covered  by a list of countries eligible for preferential 
tariffs but having no documentary evidence specified in sub-paragraphs 
31.7.2 and 31.7.3 of this Law are subject to the MFN tariffs in accordance 
with the sub -paragraph 31.7.1 of this Law . (This provision is added by the 
Law of 9 December 2016)  
 
Article 5. Types of Customs Duties  
 5.1. The Customs duties are determined according to  the following 
types:  
5.1.1.  ad valorem;  
5.1.2.  specific;  
5.1.3.  sole application  or combination of those referr ed to in 
5.1.1 and 5.1.2 of  this Law; or 
5.1.4. any of those referred to in 5.1.1 and 5.1.2 of this Law, 
which entails higher Customs duty.  
 
Article 6. Customs Tariff Council  
 6.1. A non -vacant Customs Tariff Council assigned to make 
conclusions and make proposals for creation of proper Customs duties and 
tariff system and adoption of adequate Customs duty rates shall be established and the Government of Mongolia shall approve its composition and charter.  
 
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- 128 - 5 6.2. The Chairman of the Customs Tariff Council specified in 6.1. of 
this Law shall be a Cabinet Member of Mongolia who is appointed and 
released  by the Cabinet and he  or she shall have a vacant secretary.  
 
6.3. T he Customs Tariff Council is composed of representatives from  
scientific , research and profit -making as well as  non-profit le gal persons  in 
addition representatives from  central government agencies commissioned 
with Customs, taxation, budget, finance, foreign trade and sectorial issues.  
  
CHAPTER 3  
DECLARATION AND VERIFICATION OF CUSTOMS VALUE  
 Article 7. Determination and Declaration of Customs Value  
  
7.1. A declarant shall  determine Customs value on the basis of 
documents required for a specific Customs clearance procedure and declare 
it to Customs. A declarant shall not use arbitrary or fictitious value.  
  
7.2. A declarant is  obliged to provide the Customs with a Customs 
valuation method chosen and documentary evidences for support of his /her 
determination of Customs value.  
  
7.3. The documentary evidence referred to in 7.2 of this Law shall 
demonstrate quantifiable and objec tive data. 
  
Article 8. Verification of Customs Value  
  
8.1. The Customs shall check the Customs valuation method and 
whether a Customs value determined by a declarant is true, accurate and 
objective or not and make its own decision.  
  
8.2. Where the docum ents supplied by declarant are not sufficient for 
verification of Customs value and decision -making, the Customs may 
require additional documents and information.  
  
8.3. The Customs may, on the basis of objective data, choose to 
determine Customs value by a method other than that applied by a 
declarant where:  
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- 129 - 6 8.3.1. the documents used for  determination of Customs value  
occur to be not valid, entries therein show discrepancy or are not complete 
or figures therein are insufficient; or  
8.3.2. a declarant fails  to prove the truth and accuracy of  
Customs value and the Customs considers the Customs value determine d 
by the declarant as groundless.  
 
8.4. In case of 8.3 of this Law , the Customs and other taxes shall be 
assessed on the basis of a value determined by C ustoms by the other 
method  and charged to the declarant.  
  
8.5. In case where the Customs determined the Customs value, a 
declarant may get an exlanation in writing upon a written request to 
Customs.  
  
8.6. A declarant may, in contrary, refuse a value dete rmined by 
Customs in case where he proved his declared value by presenting additional evidences within 45 days after the Customs declaration is 
validated.  
  
8.7. A declarant may, if he declines a value determined by Customs, 
appeal in accordance with the C ustoms law.  
  
8.8. A declarant is responsible for bearing any expenses incurred in 
the course of verification of Customs value.  
  
8.9. Where a Customs procedure is changed the value determined in 
the declaration by which the goods placed under the previo us Customs 
procedure upon their crossing the national border  shall not be changed.  
  
CHAPTER 4  
DETERMINATION OF CUSTOMS VALUE OF IMPORTED 
GOODS  
 
Article 9. Customs Valuation Methods of Imported Goods  
  
9.1. In determining the Customs value of imported goo ds the 
following methods are applied in their sequences:  
9.1.1. the transaction value method;  
9.1.2. the transaction value method of identical goods;  
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- 130 - 7 9.1.3. the transaction value method of similar goods;  
9.1.4. the deductive method;  
9.1.5. the computed method; or  
9.1.6. the fall -back or residual method.  
  
9.2. At the request of a declarant the sequence of methods set out in 
9.1.4 and 9.1.5 of this Law may be reversed.  
  
Article 10. Transaction Value Method  
  
10.1. The transaction value method is a pri ncipal method for 
Customs valuation of imported goods.  
  
10.2. The transaction value of imported goods is the actual price 
directly or indirectly paid or payable to a seller for goods purchased from 
abroad.  
 
10.3. In determining the Customs value by the m ethod specified in 
10.1.of this Law, the following costs or charges based on quantifiable and 
objective data on foreign trade, finance or accounting shall be included, 
provided that they are not included into the transaction value or that they 
are distingu ished from the transaction value:  
10.3.1. the following costs associated with transportation of 
the goods concerned up to the national border  of Mongolia:  
10.3.1.1. the cost of tr ansport, expenses incurred with  
completion of transportation and exportation documents and charges for 
use or lease of means of transport or container;  
10.3.1.2. loading, unloadi ng, storage, transshipment and  
handling charges incurred in the course of transportation; or  
10.3.1.3. the cost of insurance;  
 10.3.2. the commissions and brokerage, paid or payable by a  
buyer in connection with a purchase of  the goods concerned, and the cost of containers or packings which are treated as being one with the goods in 
question;  
10.3.3. the value, apportioned as appropriate, of goods, labour 
or services where supplied by the buyer  to the seller or the producer 
directly or indirectly free of charge or at a reduced cost for use in 
connection with the production and exportation for Mongolia of the goods 
concerned;  
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- 131 - 8 10.3.4. royalties and licence fe es paid or payable by the buyer 
as a condition of sale of the goods concerned;  and 
10.3.5. the value of any part of  the proceeds of any subsequent  
resale, disposal or use by the buyer of the goods that accrues directly or 
indirectly to the seller . 
 
10.4. I n determining the Customs value by the transaction value 
method specified in 10.1. of this Law, the following costs or charges based 
on quantifiable and objective data on foreign trade, finance or accounting shall be excluded, provided that they are includ ed into the transaction value 
or that they are distinguished from the transaction value:  
10.4.1. charges for co nstruction, erection, assembly,  
maintenance, technical assistance or training, undertaken after importation 
on imported goods such as industrial plant, machinary or equipment, etc.;  
10.4.2. the cost of transport after importation; or  
10.4.3. duties and taxes of the country of importation.  
 10.5. In case where there are involved diferrent kinds of imported 
goods in one shipment across the national b order  the costs to be added to or 
deducted from the transaction value shall be distributed among each kind of goods in correspondence with their weight proportion against net weight of 
total shipment. Where the cost distribution by weight is impossible the  
volume or the price factor may be used.  
 10.6. The cases where buyer’s rights with regard to use, disposition 
or resale of goods are restricted by the legislation of Mongolia or the geographical area in which the imported goods may be resold is limited or  
the restrictions do not substantially effect the value of the imported goods being valued shall not preclude to the use of the transaction value method.  
 
10.7. The transaction value method is not applied where the 
following conditions or considerations ex ist: 
10.7.1. buyer’s rights with regard to use, disposition or resale 
of goods are restricted on a ground other than that referred to in  10.6 of this Law;  
10.7.2. there exists a transaction resticting buyer’s rights 
related with use, disposition, resale or destruction of goods;  
10.7.3. the sale or price i s subject to some conditions or  
considerations for which a value cannot be determined with respect to the 
goods being valued;  
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- 132 - 9 10.7.4. the value of any part of  the proceeds of any subsequent  
resale, dispos al or use by the buyer of the goods that accrues to the seller 
cannot be determined;  
10.7.5. a declarant failed to  confirm and prove the truth and 
accuracy of data or calculations used in determination of Customs value by 
presenting appropriate foreign tra de, financial or accounting documents.  
10.7.6. the sale is made between related persons referred  to in  
10.8 of this Law and the transaction value does not closely approximate to 
the test value referred to in 10.9  of this Law.  
 
10.8. The seller and buyer shall be deemed to be related if: 
10.8.1. they work together w ith the same economic entity or  
organization;  
10.8.2. they are employer and employee;  
10.8.3. one of them directly or indirectly owns, controls or 
holds 5 per cent or more of the other’s outstandi ng voting stock or shares;  
10.8.4. one of them derictly or indirectly controls the other;  
10.8.5. both of them are directly or indirectly controlled by a 
third person;  
10.8.6. together they directly or indirectly control a third 
person; or  
10.8.7. they are  members of the same family or relatives . 
 10.9. Where a value of the sale between re lated persons specified in 
10.8 of this Law, depending on the nature of the imported goods, the nature 
of the industry itself, the season in which the goods are imported a nd the 
differences in value, closely approximates to one of the following test values occurring at or about the same time, the transaction value method 
shall be used:  
10.9.1. the transaction value in sales of identical or similar 
goods imported by the pers on specified in 10.8  of this Law  which closely 
approximates to the transaction value in sales between  unrelated persons ; 
10.9.2. the transaction  value in sales of identical or similar 
goods imported by the person specified in 10.8  of this Law, which is 
determined by the transaction value method in accordance with the 
Customs value  previously accepted by Customs.  
 
10.10. To make a compar ison with the  test values referred to in 10. 9 
of this Law, due account shall be taken with regard to commercial levels, 
quantity levels a nd the costs referred to in 10. 3 and 10. 4 of this Law.  
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- 133 - 10   
Article 11. Transaction Value Method of Identical Goods  
 
11.1. If the Customs value of the imported goods cannot be 
determined by the transaction value method, it shall be determined b y the 
transaction value method of identical goods imported at the same time as 
the goods being valued or within a period referred to in  3.1.7 of this Law.  
 
11.2. “The identical goods” shall be the goods which are the same as 
the goods being valued in the following features:  
11.2.1. physical characteristics such as size, form, production 
or manufacturing methods or technical and other specifications;  
11.2.2. quality, trademark and reputation;    
11.2.3. country of origin; and 11.2.4. producer.  
 11.3. In dete rmining the tansaction value by the transaction value 
method of identical goods , the transaction value of the identical goods 
imported at the same commercial level and in approximately the same quantity shall be used.  
 11.4. Where the identical goods were imported in different qauntity 
or at a different commercial level than those referred to in 11.3 of this Law, 
a declarant must, taking into account such differences, make appropriate 
adjustments and justify their grounds by documentary evidences.  
   
11.5. Minor differences between the identical goods and the goods 
being valued in their physical characteristics shall not preclude to using the transaction value method of identical goods.  
  
11.6. The transaction value of identical goods shall be the value 
accepted at Customs and may be adjusted depending on differences in distances of transportation and modes of transport. The adjustments shall be accompanied by supporting documents to justify their rationale and 
accuracy.  
  
11.7. Where it is necessary to make adjustments to the accepted 
value referred to in 11.6 of this Law but it is impossible to make such 
adjustments or there are no documentary evidences to justify the 
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- 134 - 11 adjustments, the transaction value method of identical goods shall not be 
used.  
  
11.8. In determining the Customs value by the transaction value 
method of identical good s, the costs referred to in 10. 3 of this Law shall be 
considered.  
  
11.9. If more than one transaction value of identical goods are found 
possible, the lowest such value shall b e chosen to determine the Customs 
value.  
 11.10. In determining the Customs value by the transaction value 
method of identical goods, the prices for the following goods shall not be 
used:  
11.10.1. goods placed under Customs procedure ot her than the  
clearan ce for home use;  
11.10.2. goods imported on governmental or non -governme n-
tal loans;  
11.10.3. goods imported for governmental or non -governmen -
tal debt liquidation;  
11.10.4. goods  of humanitarian and irrevocable assistance 
(relief goods);  
11.10.5. goods im ported by leasing;  
11.10.6. goods imported by foreign investment;  
11.10.7. large -scale maintanence equipment;  
11.10.8. goods intended for international travels, tourism,  
competition s or meetings;  
11.10.9. probes  (tests),  specimens or samples  of a goods ; 
11.10.10. exhibits; and  
11.10.11. advertising materials.  
 
Article 12. Transaction Value Method of Similar Goods  
 
12.1. If the Customs value of the imported goods cannot be 
determined by the transaction value method of identical goods, it shall be determined by the transaction value method of similar goods imported at 
the same time as the goods being valued or within a period referred to in 
3.1.7 of this Law.  
 
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- 135 - 12 12.2. “The similar goods” shall be the goods which, although not 
alike in all respects, have like cha racteristics and like component materials, 
perform the same functions and are commercially interchangeable with 
goods being valued.  
 
12.3. In determining whether goods are similar, a quality, trademark, 
reputation and the country of origin of goods shall b e considered.  
 12.4. In determining the transaction value by the transaction value 
method of similar goods, the transaction value of the similar goods 
imported at the same commercial level and in approximately the same 
quantity shall be used.  
 
12.5. Where the similar goods were imported in different qauntity or 
at a different commercial level than those referred to in 12.4 of this Law, a 
declarant must, taking into account such differences, make appropriate adjustments and justify their grounds by documenta ry evidences.  
 12.6. The transaction value of similar goods shall be the value 
accepted at Customs and may be adjusted depending on differences in 
distances of transportation and modes of transport. The adjustments shall be 
accompanied by supporting docume nts to justify their rationale and 
accuracy.  
 12.7. Where it is necessary to make adjustments to the accepted 
value referred to in  12.6 of this Law but it is impossible to make such adjustments or there are no documentary evidences to justify the 
adjustments, the transaction value method of similar goods shall not be 
used.  
  
12.8. In determining the Customs value by the transaction value 
method of similar goods, the costs referred to in 10.3 of this Law shall be considered.  
  
12.9. If more than one transac tion value of similar goods are found 
possible, the lowest such value shall be chosen to determine the Customs value.  
  
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- 136 - 13 12.10. In determining the Customs value by the transaction value 
methods of similar goods, prices for the goods referred to 11.10 of thi s Law 
shall not be used.  
 
Article 13. Deductive Method  
  
13.1. Where the Customs value can not be determined by the 
Customs valuation methods referred to in Articles 10, 11 and 12 of this 
Law, it shall be determined by the deductive method.  
  
13.2. The ded uctive method is used only in a case when the imported 
goods or the identical goods or the similar goods had been introduced into the Customs territory and resold in domestic market in the same condition 
as imported.  
 
13.3. In determining the Customs value  of imported goods by the 
deductive method, a unit price at which the  imported goods or the identical 
or similar imported goods are sold to unrelated persons in the greatest 
aggregate quantity, at the time of importation of the goods being valued or withi n a period referred to in  3.1.7 of this Law shall be taken as a base 
value, subject to deductions of the following expenses against financial or accounting documents:  
13.3.1. either the commisions usually paid or agreed to be paid 
or additions usually mad e for profit and expenses in connection with sales 
in Mongolia of the imported goods of the same class or kind.  
13.3.2. the costs of transport and insurance charges incurred in  
the territory of Mongolia;  
13.3.3. the Customs duties and other taxes paid in Mongolia.  
 13.4. The term “goods of the same class or kind” specified in 13.3.1. 
of this Law covers the group of goods produced within a particular industry or its sector;  
 13.5. If the re are sales at different pri ces for the same quantity, the 
lowest pric e shall be chosen as a base for Customs valuation.  
 13.6. In determining the value of imported goods, if there are no case 
of identical or similar goods resold in the domestic market in the same 
condition as imported, there may be used, at the request of d eclarant, the 
value of identical or similar goods sold after the processing.  
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13.7. In a case where identical or similar goods lost their identity in 
the course of processing, the procedure referred to  in 13.6 of this Law shall 
not be applied.  
 
Article 14. Computed Method  
  
14.1. Where the Customs value can not be determined by the 
Customs valuation methods referred to in Articles 10, 11, 12 and 13 of this 
Law, it shall be determined by the deductive method.  
 14.2. In determining the Customs value by the c omputed method the 
following costs or expenses shall be included:  
14.2.1. direct costs (costs of mat erials, labour costs, etc.) and  
extra costs of manufactering incurred in the course of production of the 
goods being valued;  
14.2.2. an amount of profits an d general expenses equal to that  
usually reflected in sales of goods of the same class or kind as the goods being valued, which are incurred to producers in the country of exportation for export to Mongolia; 
14.2.3. the costs or charges refer red to in 10.3 .1-10.3.5 of this  
Law.  
 
Article 15. The Fall -back or Residual Method  
 15.1. The fall -back or residual method of Customs valuation is 
applied where it is impossible to determine the Customs value of imported 
goods by methods referred to in Articles 10 -14 of  this Law.  
 
15.2. The fall -back method of Customs valuation shall be used in the 
following two ways: 
15.2.1. the Customs value i s determined by way of applying  
conditions or considerations prescribed for each method referred to in Articles 10 -14 of this L aw in a soft manner as given below:  
15.2.1.1. when applied transaction value method: where  
there is no documentary evidence to justify a value or its components presented by declarant, to use reliable similar data available to Customs and 
other importers a nd compare with other costs;  
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- 138 - 15 15.2.1.2. when applie d transaction value method of  
identical or similar goods: to extend the timeframe  up to 90 days or 6 
month s or one year or two years or soften goods requirements;  
15.2.1.3. when applied the deductive method : to extend  
domestic processing timeframe; to soften the base value selection 
requirements; or where there found no identical or similar goods sold in 
domestic market, to take into consideration the goods of the same class or 
kind;  
15.2.1.4. when applied the computed method: the prices  
or values of materials can be same with the prices or values of like goods; 
or to establish costs of transport up to the national border  with comparison 
of the costs for other goods.  
15.2.2. the Customs valu e is determined on  the basis of  
international trade practices and other commercial data valid at that time. In 
that case the following trade data or sources (documents) may be used:  
15.2.2.1. the seller’s price lists, reference books or 
catalogues;  
15.2.2.2. statistical dat a and price breakdown tariffs for 
public use;  
15.2.2.3. the expor ter’s price offers, the world’s  
outstanding commodity exchange news, specialized news releases, contracts concluded by famous (well -known) importers and the prices 
covered by them;  
15.2.2.4. export price lists disclosed on internet for 
public use;  
15.2.2.5. neighbering countries export price 
investigation results dealing with goods for export to Mongolia;  
15.2.2.6. average price indicators timely established 
with regard to goods declared to Cu stoms.  
 
15.3. In determining the Customs value by the fall -back method the 
following prices shall not be based on:  
15.3.1. the selling price in domestic market of goods produced 
in Mongolia; 
15.3.2. a system which provides for the acceptance for 
Customs pu rposes of the higher of two alternative values; 
15.3.3. the domestic market price of the country of exportation 
excluding the price of imported goods in case of cross -border trade; 
15.3.4. the cost of production incurred in cases other than the 
cases where  computed values for identical or similar goods  are determined ; 
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- 139 - 16 15.3.5. the price of goods for export to a country other than 
Mongolia;  
15.3.6. arbitrary or fictitious values; and  
15.3.7. the lowest Customs value.  
 
15.4. The value s determined in compliance  with 15.2.2.2, 15.2.2.5. 
and 15.2.2.6. of this Law shall be posted by Customs online along with 
respective Harmonized  System codes  and goods description s for public use 
and updated on a quarterly  basis . 
 
CHAPTER 5  
DETERMINATION OF CUSTOMS VALUE OF GOODS FOR 
EXPORT 
 
Article 16. Customs Valuat ion Methods of Goods for Export  
 16.1. The Customs value of goods for export is detmerned on the 
term delivered to the border  port of Mongolia.  
 16.2. In determining the Customs value of goods for export the 
following methods are used in their sequences:  
16.2.1. the transaction value method;  
16.2.2. the costs calculation method;  
16.2.3. the transaction value method of identical or similar 
goods; and 
16.2.4. the market value research method.  
 
Article 17. Transaction Va lue Method  
 17.1. In determining the Customs value of goods for export by the 
transaction value method the following costs or charges incurred up to the national border  of Mongolia shall be included into the transaction value 
provided that they are not inc luded:  
17.1.1. the costs of transport; and 
17.1.2. insurance costs, loading, unloading, storage and 
transshipment costs as well as transport and export documents clearance 
fees, associated with transportation of goods.  
 
17.2. The transaction value method s hall not be applied in the 
following cases for determination of the Customs value of exported goods:  
G/VAL/N/1/MNG/1 
- 140 - 17 17.2.1. the transaction is subject to conditions for which a 
goods value cannot be determined;  
17.2.2. the seller and buyer had relationship which 
substant ially influenced the transaction value.  
 
17.3. The fact that the relationship did influenced the price is 
understood according to 10.7.6 of this Law.  
  
Article 18. Costs Calculation Method  
 
18.1. If the Customs value of goods for export cannot be determin ed 
by the method referred to in the Article 17 of this Law the costs calculation 
method shall be applied.  
  
18.2. In determining the Customs value of goods for export by the 
costs calculation method, the unit price is determined by way of price calculation  based on objective financial and accounting data available to 
manufactures (producers) located  in the territory of Mongolia and 
economic entities and orgainzations  – exporters.  
  
18.3. In determining the Customs value of goods for export specified 
in 18.1  of this  Law by the costs calculation method, the following costs or 
charges directly or indirectly reflected in the unit good concerned shall be 
included:  
18.3.1. the following costs incurred in connection with 
production of the goods being valued:  
18.3.1.1. the price of raw materials, principal and 
supplementary materials incorporated by producer in the goods concerned;  
18.3.1.2. manufacturing costs directly or indirectly 
incurred in connection with production of goods;  
18.3.1.3. part of costs related t o management or 
managerial activities, as apportioned to the goods concerned;  
18.3.1.4. part of costs for electricity, heating, water 
supply, communications or leasing , as apportioned to the goods concerned;  
18.3.1.5. industry equipment amortization costs , as 
apportioned to the goods concerned; and  
18.3.1.6. taxes as apportioned to the goods concerned.  
18.3.2. costs of transport to national border  of Mongolia, 
loading, unloading, storage or transshipment costs as well as insurance 
costs associated therewit h; and 
G/VAL/N/1/MNG/1 
- 141 - 18 18.3.3. profits made from production and exportation of goods 
concerned.  
 
18.4. The costs, charges  (prices), taxes or profits enumerated in 18.3. 
of this Law shall not be duplicated.   
 
18.5. The costs, charges or profits enumerated in 18.3. of this Law 
shall have no big differences against average records of economic entities 
operating in that sector, filed with statistical or tax office. If there found big differences in this regard the Customs value is not determined by the costs 
calculation method . 
 
Article 19. Transaction Value Method of Identical or Similar Goods  
 19.1. If the Customs value of goods for export cannot be determined 
by the methods referred to in Article 17 or 18 of this Law the transaction value method of identical or similar goods  shall be applied.  
 19.2. In determining the Customs value of goods for export by th e 
transaction value method of the identical or similar goods  there shall be 
applied the transaction value of identical or similar goods cleared and exported from Mongolia a t or about the same time as the goods being 
valued.  
  
19.3. The terms “identical goods” and “similar goods” are 
understood as described in Articles 11 and 12 of this Law.  
  
19.4. In determining the Customs value of goods for export by the 
transaction value  method of identical or similar goods the due account shall 
be taken in regard to the following:  
19.4.1. the value to compare shall be the  transaction value 
recorded with own or other economic entity or organization;  
19.4.2. the goods to compare should  have been exported at the  
same time as the goods being valued or within 60 days before exportation 
of the goods being valued.  
 
19.5. Where , within the timeframe specified in 19.4.2. of this Law , 
there found several transaction values for comparison that which  occurred 
more times  shall be chosen . 
 
G/VAL/N/1/MNG/1 
- 142 - 19 Article 20. Market Value Research Method  
 
20.1.  The last Customs valuation method of goods for export is the 
market value research method.  
  
20.2. In determining the Customs value of goods for export by the 
market va lue research method, there  shall be taken into account the 
following data or sources on the international trade practices and the world 
market price at that time shall be based on:  
20.2.1. price lists, reference books or internet news releases 
disseminated  by exporters for public use;  
20.2.2. official reports disseminated among public such as 
foreign trade statistics or Customs statistics;  
20.2.3. the news releases of the spe cialized stock -exchanges or 
the specialized newspapers or periodicals as well as th e outstanding or 
major exporters ’ contracts or prices therein.  
 
CHAPTER 6  
CLASSIFICATION OF GOODS  
 
Article 21. Harmonized System  
 21.1. The Harmonized System is applied for the purposes of 
subjecting goods to  tariff and non -tariff measures and compiling fo reign 
trade statistics.  
 21.2. The foreign trade commodity classification (tariff classification 
nomenclature) and  the National codes (National S ubheadings ) are adopted 
by an head of Customs central administration . 
 
Article 22. Classification of Goods  
 
22.1. A declarant shall determine and declare the classification codes 
of goods crossing the Customs  frontier  according to the Harmonized 
System.  
 22.2. The Customs  shall, in the course of examining Customs 
(Goods ) declarations and respective goods,  check and  decide on the 
commodity classification codes determined by the declarant . 
 
G/VAL/N/1/MNG/1 
- 143 - 20 22.3. A declarant shall abide by  a decision made by Customs on 
commodity  classification. Where a declarant does not agree with the 
Customs decision he /she has a right to appeal it according to Article 1 7 of 
the Customs Law.  
 
Article 23. Pre -Entry Classification  (Advance Ruling on Classification)  
 
23.1. The Customs may, at a request of declarant, determine 
classification codes of certain goods in advance  (make an advance ruling on 
classification of certain goods) . 
 
23.2. The regulations on pre-entry classification shall be approved by 
the Customs central administration . 
 Article 24. Request for Pre -Entry Classification  (Advance Ruling on 
Classification)  
 
24.1. A declarant shall attach  to a request for pre -entry classification 
a sample or specimen  of goods, goods description, photos or schemes as 
well as trade and technical specification documents.  
 
24.2. If the documents attached by a declarant to a request for pre -
entry classification  specified in 24.1. of this Law are not sufficient the 
Customs shall , within 14 days after receiving the request , notify  a declarant 
to provide it with  additional documents and information. 
 24.3. The additional documents or information referred to in  24. 2 of 
this Law shall be delivered within 30 days and in case of failure the Customs will reject the pre -entry classification request  (decline  to issue  
advance ruling on classification on the goods) . 
 Article 25. Modification (Amendments, Changes) , Annulment  
(Cancellation, Invalidation ) or Suspension of a Pre- entry 
Classification  Decision (Advance Ruling on Classification)  
 
25.1. The Customs has a right to  suspend or annul (cancel, 
invalidate ) its decision on pre -entry classification  (its advance ruling on 
classification) . 
 
G/VAL/N/1/MNG/1 
- 144 - 21 25.2. The Customs shall annul (cancel, invalidate) its decision on 
pre-entry classification (its advance ruling on classification) in the 
following cases and shall notify a declarant of it in writing:  
25.2.1. the foreign trade commodity classification (tariff 
classification nomenclature) and  the National codes (National S ubheadings ) 
are amended;  
25.2.2. it becomes incompatible with a newly concluded  
international treaty of Mongolia  (it differ s from or otherwise is provided for 
in a newly con cluded  international treaty of Mongolia ). 
 
25.3. Where , after issuing a  decision on pre -entry classification , the 
documents or information supplied by a declarant are proved to be forged 
or there is a fact or a suspicion that they might be forged  the Custo ms shall 
suspend its decision on pre -entry classification  (its advance ruling on 
classification) and the decision on suspension shall be regarded as having 
(taking) retroactive effect since the date when the decision on pre -entry 
classification is taken.  
 
CHAPTER 7  
ORIGIN OF IMPORTED GOODS  
 
Article 26. Rules of Origin of Goods  
   
26.1. The Government of Mongolia shall adopt the Rules of Origin 
of Goods  for the purposes of applying the MFN tariff s for goods or 
implementing economic or trade policies . 
 Artic le 27. Determination of Country of Origin of Imported Goods 
 
27.1. A country of origin of imported goods is determined according 
to this  Law and the Rules of Origin of Goods. 
 27.2. A country of origin may be a union of states , international 
Customs or ec onomic union, or as specified for purposes of determining  
origin of goods , a particular part or region of one country.  
 27.3. At a request of declarant, an advance ruling on a country of 
origin may be issued by Customs  (a country of origin may be pre -
determined  by Customs) . 
 
G/VAL/N/1/MNG/1 
- 145 - 22 Article 28. A Country in which a Good s is Wholly Obtained or 
Produced  
 
28.1. A country in which a goods  is wholly obtained or produced 
shall be taken as the country of origin of that imported goods.  
 
28.2. Where the following condition s are met t he goods concerned 
shall be taken to be obtained or produced wholly in a given country:  
28.2.1. mineral products extracted from its soil, from its 
territorial water or from its sea -bed; 
28.2.2. vegetables or vegetable products harvested or gathe red 
in that country;  
28.2.3. live animals born and raised in that country;  
28.2.4. products obtained from live animals in that country;  
28.2.5. products obtained from hunting or fis hing conducted in 
that country;  
28.2.6. products obtained by maritime fishi ng and other 
products taken from the sea by a vessel of that country;  
28.2.7. products obtained aboard a factory ship of that country 
solely from the products of the kind covered by  28.2.6 of this Law;  
28.2.8. mineral products extracted from marine soil or subsoil 
outside that country’s territorial water;  
28.2.9. scrap and waste from manufacturing and processing 
operations, and used articles, collected in that country and fit only for the 
recovery of raw materials;  
28.2.10. goods produced in that country  solely from the 
products referred to in  28.2.1- 28.2.9 of this Law.  
 
Article 29. Substantial Transformation Criterion  
 
29.1. Where two or more countries have taken part in the production 
of the goods, a country of origin shall be a country where the subst antial 
transformation took place.  
 29.2. Substantial transformation shall be determined on the basis of 
the following criterion:  
29.2.1. after processing or manufacturing, the commodity  
classification codes are changed at the level of heading of the Harmon ized 
System;  
G/VAL/N/1/MNG/1 
- 146 - 23 29.2.2. production and technological processes of the goods 
are sufficient to consider  a given country as the country of origin of that 
goods;  
29.2.3 the value, or the value added, of matreials used in a 
particular goods constitutes 50% or mor e of value of the compensating 
product.  
 
29.3. The following operations shall not fall under the substantial 
transformation criterion:  
29.3.1 operations to ensure the safety of goods during their 
storage  or	transportation  (carriage) ; 
29.3.2. preparation of goods for sale or shipment; 
29.3.3. simple assembling operations;  
29.3.4. mixing of goods of different origin.  
 
29.4. In case of 29.3.4. of this Law, the characteristics of the 
compensating product are not essentially different from characteristics of the goods which have been mixed.  
 
Article 30. Special Cases of Country of Origin  Determination   
 
30.1. The goods forwarded in several shipments as they cannot be 
sent in one shipment because of production or transportation requirements 
or unassembled or dis assembled goods  and also the goods imported in 
several shipments because of carriage malfunction shall be deemed to have 
the same origin.  
 
30.2. The goods shall be deemed to have the same origin  when : 
30.2.1. the reasons for dispatching goods in several ship ments 
as unassembled or disassembled  are indicated and notified to Custom s in 
advance together with a list of  classification codes, values and countries of 
origin of respective goods in each shipment, or there are presented 
documents  to evidence  the carria ge of goods separately because of mistake;  
30.2.2. goods in each shipment are sent from the same country 
and by the same consignor;  
30.2.3. goods in each shipment are declared to the same 
Customs office;  
G/VAL/N/1/MNG/1 
- 147 - 24 30.2.4. goods  in each shipment have released  by Customs into 
the Customs territory within 3 months after acceptance/presentation of the 
goods declaration.  
 
30.3. The period specified in 30.2.4. of this Law may be extended at 
a request of declarant for up to one month.  
 
30.4. When the machinery, equipment,  apparatus or  conveyances are 
supplied together with s pare parts, parts  (accessories), tools or instruments 
necessary for their use the country of origin should be the same.  
  
30.5. Containers or packing  materials  when imported into the 
Customs territory se perately except the case when they are declared 
separately shall have the same origin.  
 
30.6. For the purpose s of determining the origin of goods, the 
country of origin of the electricity , machine  tools and/or  instruments  used 
in the manufacturing or proce ssing of the goods  shall not be taken into 
account.  
 
Article 31. Documentary Evidence of Goods Country of Origin  (The 
Mongolian version is amended to add “бичиг ” after the word “баримт ” 
by the Law of 9 December 2016)  
 
 31.3. A declarant, in order to  claim  for the MFN tariffs and /or the 
preferential tariffs , should  present to Customs a documentary evidence of  
origin  of goods . (This provision is revised by the Law of 28 December 
2012)  
 
31.4. The Customs may verify the accuracy of documentary evidence 
of goods  country of origin . 
 
31.5. Verification of documentary evidence of goods country of 
origin shall not exceed 30 days and the Customs central administration  may 
extend that period once by another 30 days.  
 
 
31.7. The documentary evidence of origin of goods shall have the 
following types:  
G/VAL/N/1/MNG/1 
- 148 - 25 31.7.1. a declaration of origin which is  an invoice or bill of 
lading having an information on goods origin stated by manufacturer, seller 
or exporter ; 
31.7.2. a certified declaration of origin  which is  a declaration 
of origi n certified by a competent authority of the relevant country ; 
31.7.3. a certificate of origin of goods which is a certificate 
officially issued in a special form by a competent authority of the relevant 
country  to certify the origin of goods . 
(This provisi on is added by the Law of 9 December 2016 ) 
 
31.8. A list of goods requiring a certificate of origin shall be adopted 
by the Government . (This provision is added by the Law of 9 December 
2016)  
 
 
CHAPTER 8  
LEVYING, COLLECTION AND PAYMENT  
OF CUSTOMS DUTIES AN D OTHER TAXES  
 
Article 35. Levying Customs Duties and Other Taxes  
 
35.1. Customs duties and other taxes are levied on goods entering or 
leaving the Customs territory. This provision is applied also for goods 
exempted from Customs duties and other taxes.  
 
35.2. The basis for assessment of Customs duties and other taxes 
shall be the Customs value and quantity of the goods.  
 35.3. The Customs duties and other taxes shall be assessed in togrogs 
on the basis of tariffs and exchange rates in force on the day when  the 
goods are declared to Customs. If the exchange rates of togrogs against 
foreign currencies and tariff rates have been changed between the dates of pre-entry clearance of documents and release of goods the exchange rates 
and tariffs effective on the da te of release of goods shall be applied.  
 35.4. The regulation s on continuous application of the same 
exchange rate of togrogs against foreign currencies for a certain period of 
time shall be adopted jointly by the President of the Mongolbank and the 
Cabin et Minister in charge of Customs matters.  
 
G/VAL/N/1/MNG/1 
- 149 - 26 35.5. In assessing Customs duties and other taxes for goods involved 
in violation  of Customs legislation there shall be applied the tariffs and 
exchange rates in force on the day when the goods crossed the nationa l 
border  or if it is not possible to determine that day, on the da y when the 
offence is detected.  
 
35.6. If a stabili zation certificate provided for in the Law on 
Investment is issued, the duties and other taxes shall be paid in accordance 
with the rates a nd amounts specified in the certificate . (This provision is 
added by the Law of 3 October 2013)  
 
Article 36. Collection and Remittance into State Budget of Cus toms 
Duties and Other Taxes  
 36.1. The Customs shall remit  the Customs duties and other  taxes 
collected from taxpayer to the S tate B udget  (Government Revenue).  
 
36.2. The Customs duties and other taxes collected from goods 
temporarily admitted into Customs territory shall be kept in a special 
account of Treasury (State (Government) Fund). 
 
36.3. The r egulations on collection and transfer into the State Budget 
of Customs duties and other taxes collected from petroleum (crude oil) and 
petroleum products shall be adopted by a Cabinet Member in charge of financial and fiscal matter s. (This provision is added  by the Law of 11 
September  2012)  
 
Article 37. Remission of Customs Duties and Other Taxes  
 
37.1 The remission of the Customs duties and other taxes is granted 
for the following goods: 
37.1.1. goods entering the Customs bonded areas, the duty free 
shops,  the Customs special zones or the free zones directly from abroad or 
the goods leaving them directly for abroad;  
37.1.2. goods returning after carriage by mistake;  
37.1.3. goods in transit  through the Customs territory ; 
37.1.4. goods placed in Customs clea rance procedure for 
transshipment; or  
37.1.5. goods placed in Customs clearance procedure for 
destruction.  
G/VAL/N/1/MNG/1 
- 150 - 27  
Article 38. Goods Exempted  from Customs Duties  
 
38.1. The following goods  admitted into the Customs territory are 
exempted from the Customs duties:  
38.1.1. special purpose equipment  for use by people  with 
disabilities , artificial bodyparts and parts  thereof ; 
38.1.2. goods  of humanitarian and irrevocable assistance 
(relief goods);  
38.1.3. currencies  and mongolian national bank- notes ordered 
and produce d abroad;  
38.1.4. travellers’ personal effects;  
38.1.5. blood, blood -products, tissues  and body organs  
(bodyparts ) for medical use;  
38.1.6. fuel  gas, gas containers, equipment, special  purpose 
machines, machinery , mechanical appliances and tools or accesso ries 
thereof ; 
38.1.7. imported logs, timber  and lengthwise sawn wood as 
well as seeds, seedlings and saplings of such tree s or bushes (shrubs) which 
are not  subject to prohibit ion; 
38.1.9. passenger aircraft ( civil air  passenger craft) or its spare 
parts;  
38.1.10. imported goods for official use by foreign diplomatic 
missions (agencies) or consular office s, the United Nation Organization or 
its specialized agencies  (organs);  
38.1.11. articles for personal use, necessary for establishment 
in the receiving St ate, of a head of foreign diplomatic mission, members of 
diplomatic, administrative and technical staff and their families;  
38.1.12. special purpose vehicle , equipped with a track, 
platform or lift for mounting only disabled people on ( confined to) 
wheelch air, or such a vehicle  for drive by people with disabilities , operated  
only manually and manufactured with all the same installations (devices) or 
modifications as above,  once per person ; 
38.1.13. other goods specified in a law or international treaty ; 
38.1.14. raw materials, materials or reagents, which are 
required for production of new items (goods) or products intended for  
domestic or foreign markets pursuant to  innovation projects and which are 
not domestically  (locally ) produced ; (This provision is ad ded by the Law of 
22 May 2012)  
G/VAL/N/1/MNG/1 
- 151 - 28 38.1.15. international postal parcel  (international parcel post ) 
with a value not exceeding 10 times the amount of minimum monthly 
wage, containing not more than two pieces of every  similar item (identical 
goods) and addresse d to an individual person;  (This provision is added by 
the Law of 1 July 2014 and came into force on 1 January 2015 ) 
38.1.16. special purpose machine s, mechanical appliances, 
equipment, accessories, raw materials,  materials, chemical substances , 
explosives and spare parts  imported by contractor s or subcontractors  during 
the entire period of exploration and within the first 5 years of extraction 
with an intention to use in activities associated with crude oil (petroleum)  
depots  and non -traditional crude oil resources ; (This provision is added by 
the Law of 1 July 2014 ) 
38.1.17. reports  on crude oil (petroleum) depots and non -
traditional crude oil resources , attached materials and  samples and crude oil 
(petroleum)  itself ; (This provision is added by the Law of  1 July 2014)  
38.1.18. renewable energy research and production equipment, 
its accessories and spare parts.  (This provision is added by the Law of 18 
December 2015 ) 
38.1.19. equipment and requisites for sports purposes . (This 
provision is added by the Law of 6 July 2017  being effective since 1 
January 2019 ) 
 
38.2. A list of goods falling into 38.1.6, 38.1.14 , 38.1.18 and 38.1.19 
of this Law shall be adopted by the Government of Mongolia . (This 
provision is amended by the Law of 22 May 2012 , the Law of 18 De cember 
2015 and the Law of 6 July 2017, the latter is being effective since 1 
January 2019 ) 
 
38.3. Exemptions  from Customs duties shall be governed solely by 
this Law. 
 
Article 39. Payment of Customs Duties and Other Taxes  
 
39.1. The Customs duties and other taxes shall be paid by a taxpayer.  
 39.2. Where a guarantee to pay Customs duties and other taxes is 
issued by a bank, such guaranteeing bank shall be responsible for payment 
of Customs duties and other taxes upon expiry of the guaranteeing period.  
 
G/VAL/N/1/MNG/1 
- 152 - 29 39.3. Where a goods temporarily admitted into the Customs territory 
is not re -exported within its timeframe the Customs duties and other taxes 
levied upon their entry into the Customs territory shall be paid.  
 
39.4. For the purpose s of paying Customs duties a nd other taxes , a 
taxpayer may make a deposit ( an advance payment ) into a Customs 
account. On the deposit  there shall not be paid any interest.  
 39.5. A goods declaration shall be come valid upon meeting of any of 
the following conditions:  
39.5.1. the Custo ms duties and other taxes are paid;  
39.5.2. a decision on suspention or payment by installment of 
the Customs duties and other taxes is taken  (issued); or  
39.5.3. a  guarantee to pay Customs duties and other  taxes is 
issued  in any form provided for in Artic le 41 of this Law.  
 39.6. The Customs duties and others taxes are deemed to be paid in 
any of the following cases where:  
39.6.1. a tax amount is tra nsferred by a bank into Customs  
account or the S tate B udget  (Government Revenue);  
39.6.2. a payment is made in cash at Customs; or  
39.6.3. a tax amount is withdrawn  from a deposit paid to  
Customs account . 
 39.7. In case where the relevant guarantee to pay Customs duties and 
taxes is granted according to the provision of Article 41 of this Law or the relevant dec ision of the Government is issued in accordance with  40.1. of 
this Law, the Customs shall regard the Customs duties and other taxes as paid and the respective goods declaration  becomes valid .  
 
39.8. As an evidence of payment of Customs duties and other t axes, 
the Customs shall leave a copy of the valid goods declaration with a 
taxpayer.   
Article 40. Suspension or Payment by Instalment of Customs Duties 
and Other Taxes  
 
40.1. A decision to extend the time -limit to pay the Customs duties 
and other taxes by  up to 2 months, or to pay these taxes by installment 
within 2 months may be taken by the Government.  
G/VAL/N/1/MNG/1 
- 153 - 30  
40.2.  The Government may decide to defer the payment by up to 2 
years, or allow the partial payment within 2 years of Customs duties and 
VAT levied on  machinery and equipment and /or their sets imported by the 
respective investors for use in development works under the relevant  
projects or arrangements to finance the major (larger) projects or 
arrangements of nationwide importance in the industries provided  for in 
sub-paragraphs 11.2.1 to 11.2.3 of the Law on Investment . (This provision 
is added by the Law of 6 June 2014 ) 
  
40.3.  The investment size s (total investment, the total amount of 
financial resources) to finance major (larger) projects or arrangement s of 
nationwide importance  provided for in 40.2 of this Law are determined by 
the Government . (This provision is added by the Law of 6 June 2014 ) 
 
Article 41. A Guarantee To Pay Customs Duties and Other Taxes  
 41.1. For goods or means of transport crossing  the Customs border , 
the Customs may allow a gaurantee to pay the Customs duties and other 
taxes. 
 41.2. A taxpayer may provide a guarantee to pay the Customs duties 
and other taxes in one of the following forms:  
 
41.2. 1. giving into a custody a good s crossing the Customs  
border  or  money asset;  
41.2.2. providing a bank guarantee; or  
41.2.3. presenting other forms of guarantee provided for in  
international treaties.  
 
41.3. Any guarantee to pay the Customs duties and other taxes shall 
not exceed the amount o f Customs duties and other taxes levied on in 
accordance with  the basic tariffs plus 10 per cent of such amount.  
 41.4. The regulations on issuance of a guarantee to pay the Customs 
duties and other taxes shall be adopted by the Government.  
 
Article 42. Ab atement of Customs Duties and Other Taxes  
 
G/VAL/N/1/MNG/1 
- 154 - 31 42.1. An abatement of Customs duties or other taxes may be allowed 
by Customs in case where there is a d ocumentary evidence that a good s, 
while being under Customs control, has suffered a loss in volume (quantity)  
or weight, a damage  or a deteriorarion or no longer fits for its intended use. 
 
Article 43. Drawback of Customs Duties Duties and Other Taxes  
 
43.1. A drawback of Customs duties and other taxes shall be allowed 
by Customs in the following cases:  
43.1.1. g oods temporarily admitted into the Customs territory 
are re -exported within the set timeframe;  
43.1.2. goods temporarily exported from the Customs territory 
are re-imported within the set timeframe;  
43.1.3. goods temporarily admitted into the Customs ter ritory 
are placed under the duty- free procedures.  
 
43.2. A refund of Customs duties and other taxes overpaid may be 
allowed by Customs in the following cases:  
43.2.1. a goods subject to the basic tariffs  became eligible for  
the MFN tariffs ; 
43.2.2. a value determined by Customs is rejected in 
accordance with  8.6 of this Law;  
43.2.3. C ustoms duties or taxes are overpaid or over-assessed . 
 43.3. Customs shall not pay any interest for the drawback or refund 
of Customs duty or other taxes.  
 
43.4. When a  taxpay er whishes so , the overpaid duties or taxes may 
be left (with Customs) for payment of duties or taxes on next consignment.  
 Article 44. Discharge of Obligation To Pay Customs Duties and Other  
Taxes  
 
44.1. The taxpayer’s obligation to pay Customs duties and  other 
taxes shall be discharged in the following cases:  
44.1.1. a tax is (duties and taxes are) paid;  
44.1.2. a declarant or a taxpayer becomes no longer oblig ated 
to pay the relevant  taxes  (duties and taxes);  
44.1.3. a tax is (duties and taxes are) paid by a guaranteeing 
bank;  
G/VAL/N/1/MNG/1 
- 155 - 32 44.1.4. a tax is (duties and taxes are) paid within the timeframe 
provided for in a collateral agreement;  
44.1.5. temporarily admitted goods or temporarily exported 
goods are returned within a prescribed timeframe;  
44.1.6. goods are seized by Customs;  
44.1.7. payment of duties and taxes is made by a force of law . 
 
Article 45. Bank Responsibilities  
 
45.1. When a bank, according to 41.2.2 of this Law, had provided , on 
behalf of a declarant , a guarantee to pay Customs duties and other taxes and 
the latter fails to pay that duties and taxes within a timeframe provided for in the guarantee, the bank is obliged to pay that duties and taxes to 
Customs.  
 
45.2. Where a bank fails to pay the duties and taxes according to  
45.1 of this Law, it shall  pay an interest e qual to 0.3 per cent of unpaid tax  
amount per day  (This provision is amended by the Law of 22 March  2019 ). 
 45.3. A bank or financial organization shall execute/transfer the 
payments of Customs duties and other taxes of its client ec onomic entities 
or organizations within 12 hours and the same day place them into the state budget account. In case of failure, it shall pay an interest e qual to 0.3 per 
cent of non -paid tax amount each day.  
 Article 46. Collection of Unpaid Duties and Oth er Taxes 
 
46.1. Where the due Customs duties and other taxes are not paid 
within the specified timeframe provided for in  Article 40 of this Law  or 
according to the guarantee specified in Article  41 of this Law, the unpaid 
duties and taxes shall be collecte d in accordance with  the General Law on 
Taxation.  
 
46.2. Unless otherwise is provided for in a law, the collection under  
paragraph 46.1 of this Law may be exercised by a person currently 
employed by Customs and having a title of state Customs inspector . 
 
CHAPTER 9  
Miscellaneous  Provisions   
 
G/VAL/N/1/MNG/1 
- 156 - 33 Article 47. Entry into Force of this Law  
47.1. This Law shall enter into force from the 1st Day of July 2008.  
D. LUNDEEJANTSAN,
THE SPEAKER OF THE STATE GREAT KHURAL
G/VAL/N/1/MNG/1 
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