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11/4/2016 Notice 3001: Customs Special Procedures for the Union Customs Code - GOV.UK

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GOV.UK

Notice

Notice 3001: Customs SpecialProcedures for the UnionCustoms Code

Updated 11 July 2016

ContentsForeword

1. Scope

2. Authorisation

3. Economic conditions/economic test

4. Customs declaration lodged at another customs

office

5. Records

6. Discharge

7. Movement of Goods

8. Usual Forms of Handling

9. Equivalence

10. Electronic system relating to Standardised

exchange of information

See more information about this Notice

Contents

Search

HM Revenue& Customs



11. Using customs declarations to enter and

discharge Customs Special Procedures

12. Customs Debt

Contents

Foreword

This guidance replaces Notices 200,221,232,235,237,306,308

and 770. It explains the legal basis and generic requirements

of the Customs Special Procedures under the Union Customs

Code (UCC).

Detailed information on each special procedure can be found

in the annexes to this guidance.

Scope

This guidance explains the Customs Special Procedures which

are:

storage comprising of Customs Warehousing (CW) and

Free Zones

specific use comprising of Temporary Admission (TA) and

End-Use (EnU)

1.



Contents

processing comprising Inward and Outward Processing

transit (not covered in this guidance)

Information on Free Zones are included at Annex B. The only

Free Zone in operation in the UK will be on the Isle of Man.

Before deciding whether to use a special procedure, you

should research the procedure to make sure that you can meet

all the obligations attached to it.

If the legal requirements of the procedure are not met, any

customs duties and import VAT suspended under the

procedure, will become due.

Any person who makes a false declaration or provides false

information about goods entered to a relief, may be liable to

penalties under the Customs and Excise Management Act

1979 and Finance Act 2003 Contravention of Civil Penalties

and Civil Evasion Penalties.

This guidance does not replace the law. It is our view of what

the law says and explains UK HM Revenue and Customs

(HMRC) policy on certain aspects of these procedures.

Nothing in this guidance takes the place of the law but it may

help you decide which regime will suit your business

requirements.

UCC Article Delegated Act (DA) Article Implementing Act (IA) Article



Contents

210

Following the publication of Regulation No 952/2013 of the

European Parliament and of the Council 9 October 2013,

laying down the UCC and the corresponding Delegated

Regulation (EU) 2015/2446 and Commission Implementing

Regulation (EU) 2015/2447. This guidance has been written to

explain the generic aspects of the Special Procedures.

Separate annexes will cover those aspects, which are specific

to each procedure.

The main changes from the previous Customs Code (Council

Regulation EEC No 2913/92) and its implementing regulation

(Commission Regulation EEC No 2454/93) are:

the mandatory requirement for a guarantee to cover

potential and/or actual debts

the requirement to be financially solvent, have a good

compliance record and have a good record keeping system

in order to hold an authorisation

changes to the process for examining the economic

conditions when an economic test is required for processing

procedures

1.2 What has changed?



Contents

a requirement for a Bill of Discharge (BoD) for EnU is

introduced

new prefixes for CW authorisations

a provision to undertake retail sales remotely under

the CWprocedure is introduced

the removal of the requirement to re-export the goods under

Inward Processing (IP) unless specifically laid down

the removal of IP drawback, type D CW and Processing

under Customs Control

equivalence may not be authorised where the goods are

subject to Anti-Dumping Duties (ADD)

The laws covering the Customs Special Procedures are:

Regulation (EU) No 952/2013 of the European Parliament

and of the Council of 9 October 2013 laying down the UCC,

and the UCC Delegated Act (DA) Commission Delegated

regulation (EU) 2015/2446 and Implementing Act

(IA) Commission Implementing regulation (EU)

2015/2447which lay down the provisions for its

implementation

EU law on import VAT relief is contained in Council Directive

2006/112/EC that is interpreted into UK law in the Value

Added Tax Act 1994 under which authority for the VAT

1.3 What law covers this notice?



Contents

Regulations 1995 were made - other national provisions

and VAT directives may also apply

the rules for excisable products under suspensive customs

procedures can be found in Article 3(4) of Council Directive

2008/118/EC

This guidance sets out the general principles of the

procedures; it cannot cover every aspect in detail. If, after

reading this guidance, you need further information you can

email, phone or write to the Imports and exports: general

enquiries.

Refer to the Integrated Tariff of the United Kingdom.

General enquiries concerning completing the application form

should be directed to the VAT and Customs helpline. Enquiries

about your authorisation/approval should be directed to your

Authorising Office.

If your application concerns the processing procedures:

Nottingham Authorisations and Returns team

CITEX Authorisations and Returns Team

1.4 Where can I obtain further informationabout the special procedures?



Contents

2nd floor East

HM Revenue and Customs

Fitz Roy House

Castle Meadow Road

Nottingham

NG2 1BD

If your application concerns storage or specific use

procedures:

Leeds Authorisations and Returns team

CITEX Authorisations and Returns Team

Peter Bennett House

Lawnswood Business Park

Redvers Close

Leeds

LS16 6RQ

If you are under the control of Large Business this will be your

Customer Relationship Manager.

Enquiries once you have been authorised, should be directed

to your supervising office (as notified in your authorisation

letter).

Authorisations by customs declaration (previously known as

simplified authorisation) for processing and EnU are assured

by:



Contents

NIRU

Abbey House

Head Street

Enniskillen

Northern Ireland

BT74 7JL

Telephone: 03000 572 100

Authorisations by customs declaration (previously known as

simplified authorisation) for TA are assured by:

National Temporary Admission Seat (NTAS)

HM Revenue and Customs

National Clearance Hub

Ralli Quays

3 Stanley Street

Salford

M60 9LA

Telephone: 03000 579055

Fax: 03000 588459

TA forms C108 and C110 (oral customs declaration):

Local Compliance

CITEX Written Enquiries Team



Contents

S0000

Newcastle

NE98 1ZZ

Telephone: 03000 583736

Email: [email protected]

Authorisations issued by the Isle of Man are issued and

supervised by:

Customs and Excise Division

Isle of Man Treasury

Custom House

North Quay

Douglas

Isle of Man

IM99 1AG

Telephone: 01624 648140

Fax: 01624 648117

1.5 What rights do I have in relation to acustoms decision?



Contents

If you receive an adverse customs decision from HMRC you

have rights under the Right to be Heard (RTBH) process.

When you receive an adverse customs decision from HMRC,

you will first be issued with a ‘pre-notification communication’

explaining the reasons why the adverse decision will be made.

Once the pre-notification is issued, you will have a period of 30

calendar days in which you may make further representations

or provide further information to HMRC concerning the

decision.

Once the RTBH period has expired and a decision has been

issued, the decision letter will contain 2 options, if you do not

agree with a decision within 30 days of the date of the decision

you can either:

request a review of the decision by someone not involved in

making the disputed decision

appeal direct to a tribunal who are independent of HMRC

Your request for a review should be made in writing (setting out

the reasons you do not agree with the decision) to:

Customs Directorate

Review and Appeals Team

7th Floor South West

Alexander House

21 Victoria Avenue

Southend-on-Sea



Contents

Essex

SS99 1AA

If you opt to have your case reviewed, you will still be able to

appeal to a tribunal if you disagree with the outcome.

Further information relating to reviews and appeals (including

the process for appeals to a tribunal) is contained in

leaflet HMRC1: HM Revenue and Customs decisions - what to

do if you disagree.

UCC Article DA Article IA Article

22.6

HMRC are obliged under European Union (EU) agreements to

promote compliance with EU provisions and to have

arrangements in place to counter non-compliance. You should

make sure you comply with all the requirements set out in your

authorisation. Where the requirements are not met, civil

penalties are seen as an appropriate sanction in most cases.

The maximum penalty provided for in law for a Customs Civil

Penalty is £2,500 per contravention.

1.6 Civil penalties



Contents

You may also incur a civil penalty for errors outside of your

authorisation such as incorrect declarations, losses.

Civil evasion penalties and prosecution remain an option in

certain circumstances.

Authorisation

You will require an authorisation from the customs authorities

to operate any of the following:

IP, OP, TA or EnU procedures

storage facilities for the CW of goods

The conditions for the use, storage or processing of goods and

how they may be moved under the authorisation will be set out

in your authorisation letter.

UCCArticle DA Article IA Article

211 161,163,164,165,166,167,169,170,171,172,173,174,175,176,177,178,

201,202,203,204,206,207,218,239,240,242,243

258,

259,260,261

2.



Contents

You must obtain prior authorisation from HMRC to use any

special procedure. The special procedure authorisation holder

is ultimately responsible for ensuring that all the conditions of

the procedure are met and you are also responsible for the

customs duty and associated charges on all goods entered to

your authorisation, whether or not you own them, until they are

put to an eligible method of disposal. This includes goods

entered under the authorisation by other named processors.

Other companies included as named processors may only

receive, process, dispose of or move goods as specified within

your authorisation.


242

It is the responsibility of the authorisation holder (including

those traders using ‘simplified authorisations’) to make sure

that goods are properly declared to customs and entered to the

procedure as the goods must be under customs supervision

from the time they are entered to the procedure (usually when

2.1 Responsibilities of the authorisationholder

2.2 Authorising a third party to act on yourbehalf



Contents

the goods are imported) until such time as they are properly

discharged. The authorisation holder is responsible for the

suspended customs debt and import VAT or for putting the

goods to the authorised use.

If you use an agent or representative for any aspect of the

process (such as submitting import and/or export declarations),

you should ensure that you give your agents clear instructions

and an obligation to provide you with the necessary documents

such as your import/export entries. If you do not hold the

necessary evidence, you may be liable for any customs debt

that may occur. You should develop your own assurance

checks to confirm that your instructions have been complied

with and consider whether to arrange for a form of indemnity to

cover any ineligible entry, processing or disposal by other

operators named on your authorisation or by agents acting on

your behalf.

A third party may not enter goods on your behalf using

simplified procedures such as Simplified Declaration

Procedure (SDP) or Entry in Declarants records (EIDR) unless

the use of simplified procedures by the named third party has

been agreed and included in your special procedures

authorisation.

When you renew your authorisation, you should always make

sure you advise the third party of your new authorisation

number.



Contents

Further information about using a third party representative,

including the types of representation available and their

responsibilities, is provided below in paragraphs 2.11 to 2.14.

The holder of the procedure is the person who lodges the

customs declaration, or on whose behalf that declaration is

lodged. It is also the person to whom the rights and obligations

in respect of a customs procedure have been transferred. In a

public Customs Warehouse the holder of the

procedure/depositor must be established in the EU.

As the holder of the procedure, you must ensure that you

correctly declare the goods, including where an agent is used

by giving clear written instructions.

The holder of the procedure and the holder of the authorisation

can sometimes be the same, for example in a private Customs

Warehouse, the warehouse keeper will be the holder of the

procedure (depositor).


242

2.3 Responsibilities of holder of procedure



Contents

Under certain circumstances, it is possible to

use IP, TA, EnU or OP with an authorisation by customs

declaration previously known as a ‘simplified authorisation’.

The authorisation is granted when the customs import

declaration (using the correct Customs Procedure Code

(CPC)) is released by customs.

Under TA, the application can only be made in the Member

State where the goods are to be used. If this is not the first

point of entry into the EU, the goods should be moved under

transit to the member state where the goods will be first used

and declared to TA in that Member State.

An authorisation by declaration should only be used

occasionally (maximum of 3 times per regime, per calendar

year, per trader/legal entity), the value of the goods must not

exceed £500,000 and there are strict conditions attached to its

use which, if not complied with, will lead to the customs duties

and import VAT becoming due.

For TA authorisation by declaration these usage and value

limits do not apply.

This type of authorisation for processing and EnU is

supervised by National Import Reliefs Unit (NIRU) and

2.4 Can I use a special procedure if I do notobtain prior authorisation from HMRC?



Contents

for TA by NTAS.

A legal entity who holds multiple Economic Operator

Registration and Identification numbers (EORI) due to

operating branches will only be permitted to import to a

maximum of 3 times across these entities as there is only one

legal entity.

This does not include oral declarations or declarations by any

other act.


163.1

To apply for an authorisation you will need to complete form(s):

SP1 - EnU

SP2 - CW

SP3 - IP

SP4 - OP

SP5 - TA

If your application involves more than one Member State,

please go to Authorise a customs procedure and complete the

2.5 Applying for an authorisation



Contents

appropriate forms.

You should ensure you apply at the earliest opportunity

as HMRChave 30 days (60 days for CW) in which to consider

the information provided once a fully completed application

form has been accepted. This includes all the necessary

information required to process your application such as

financial records, overview of procedures etc including any

additional information requested.


171

If you intend to use more than one special procedure, it is

advised to submit separate applications for each procedure to

customs. This will allow the holder of the authorisation to more

clearly identify which rights and obligations apply for each

procedure. The UCC related Commission acts do not support

the possibility to apply for more than one procedure per

individual application (previously integrated authorisations).

Authorisations for the operation of storage facilities may be

granted where the intended usual forms of handling would

predominate over the storage of the goods.

The holder of the authorisation for OP does not need to

arrange for the processing operations that are to be



Contents

undertaken outside of the Union. In addition, this person does

not need to be the exporter of the goods which will be taken

out of the customs territory of the Union under OP.

Nevertheless, the export formalities must be respected (see

article 269 (2) and (3) UCC)

In order to hold a special procedures authorisation you will be

required to meet the following criteria:

be financially solvent

have a good history of compliance

maintain adequate records appropriate to the procedure you

wish to claim

have an EORI number if established in the EU or for TA use

the EORI 05000XX.XX being the country code

In addition to the above and unless otherwise provided for the

authorisation shall only be granted where all of the following

conditions are met:

the customs authorities are able to exercise customs

supervision without having to introduce administrative

arrangements disproportionate to the economic needs

involved

2.6 Conditions for granting an authorisation



Contents

the essential interests of Union producers would not be

adversely affected by an authorisation for a processing

procedure, the Union producers essential interests shall be

deemed not affected unless evidence exists to the contrary

or where the economic conditions are deemed fulfilled - if

evidence exists that the essential interests are affected an

economic test at Union level is required

UCCArticle DA Article IAArticle

211 161,163,164,165,166,167,169,170,171,172,173,174,175,176,177,178,

201,202,203,204,206,207,218,239,240,242,243

258, 259

Authorisation shall be granted only to persons who satisfy all of

the following (unless otherwise provided for):

they are established in the customs territory of the EU

For specific cases where goods are placed under

the TAprocedure, establishment in the EU is not a condition.

See Annex C.

Applicants for IP and EnU may be established outside of the

Union in occasional cases where the customs authorities

2.7 Other conditions for granting anauthorisation



Contents

consider this to be justified. Any application under these terms

should be submitted to the competent customs office where

the goods are to be first used or processed. Application

forms SP1 or SP3 should be submitted to the address shown

on the form.

As this is a derogation from the principle, the interpretation

regarding the scope of this provision should be restricted.

Because of this restrictive interpretation of Article 161 DA, the

following case should not be covered by the scope of this

provision.

Example 1

An airline which is established outside the customs territory of

the Union applies for an EnU authorisation so that it can import

goods for repairing of civil aircraft and part thereof.

This case should be considered as having an economic

relevance. For that reason the applicant should be established

inside the EUand consequently the application should be

rejected.

Example 2

A natural person, resident in a third country, operating his own

aircraft, may apply for an authorisation for EnU so that a



Contents

replacement engine can be imported under

the EnU procedure.

The authorisation should be granted in this case.

Persons not established in the EU other than for TA relief may

not use an authorisation by declaration under any

circumstances.

In the case of TA, you use the goods or arrange for their use.

In the case of IP, you carry out processing operations on the

goods or arrange for them to be carried out.

The proper conduct of operations is assured.

If you are an Authorised Economic Operators (AEO) for

customs simplifications this condition is deemed to be fulfilled

in relation to the activity for special procedures if this was

taken into account when your AEO authorisation was granted.

A guarantee is provided in accordance with UCC Article 89.


211 161,163,164,165,166,167,169,170,171,172,173,174,175,176,177,178,

201,202,203,204,206,207,218,239,240,242,243

258, 259



Contents

In order to operate a special procedure it is a requirement that

a guarantee be taken to cover the actual and potential debt

liability. This will include customs duty and in certain cases

Import VAT. A guarantee for Import VAT will be required when:

the economic operator is not established in the EU

the guarantee is part of an authorisation involving more than

one Member State

an authorisation by declaration is being used

non compliance is identified

For EnU, although the goods are technically released under

the customs debt rules of Article 77.1.a UCC which establishes

an actual debt at the time of release, there is still a ‘potential

debt, under the EnU arrangements until such time as the

‘specific use’ is completed. If, following release the goods were

‘diverted’ to an ‘ineligible’ use then the ‘relief’ granted at the

point of clearance would be invalid and the full duty would

become due. The guarantees and reference amounts need to

take account of the time delay between the customs

declaration stating they are EnUgoods and the ‘completion’ of

the EnU requirements.

If you can meet the conditions in paragraph 2.6 above and

certain other criteria you may be eligible for a guarantee waiver

or reduction, otherwise a guarantee to cover your liabilities will

be required.

2.8 Guarantees, guarantee waivers



Contents

Further information on guarantees and guarantee

reductions/waivers in relation to processing and storage

procedures can be found in the customs authorisations and

approvals manual CAA07100, 07110 and CAA07120.

In case of authorisations by declarations, an individual

guarantee must be provided. It is not possible to apply for

reduction or waiver because that flexibility is possible only for

comprehensive guarantee. This means that 100% guarantee

has to be provided even if the person concerned has an AEOC

status.


211 161,163,164,165,166,167,169,170,171,172,173,174,175,176,177,178,

201,202,203,204,206,207,218,239,240,242,243

258, 259

These examples are taken from the guidance on Special

Procedures published within the UCC Guidance documents

Not all calculations may be necessary

An example on IP of how the reference amount for the

guarantee is calculated is as follows:

Total value of goods which may be placed under IP during 5

years (see data field 7 of the authorisation) €600,000



Contents

Duty Rate 10%

VAT rate 20% 1

Period of Discharge 6 months

Maximum value of goods which may be under IP at a given

point in time according to business activities (production

capacity may be criterion) €50,000

Calculation of the reference amount regarding import duty

€50,000 x 10% = €5,000

The other charges are calculated as follows €55,000 x 20%

= €11,000

Guarantee reference amount is determined as €16,000

The above example illustrates that the guarantee must be

provided only for those goods that are actually under IP and

not for those which could have been placed theoretically under

the procedure. The 10% duty rate may reflect the average

import duty rate if more than one type of goods is concerned.

The calculation of the reference amount does not depend

either on the period of validity of the authorisation nor on the

period of discharge.

An example on CW of how the reference amount for the

guarantee is calculated is as follows:



Contents

Total value of goods which may be placed under CW is

estimated to be per year €5,000,000

Value of goods which may have been placed under CW at a

given point in time according to the storage capacity of the

holder of the authorisation = €1,000,000

Duty Rate = 10% 2

Average length of time goods remain under CW = 6 months

VAT rate = 20% 3

Calculation of the reference amount regarding import duty

€1,000,000 x 10% = €100,000 - the other charges are

calculated as follows €1,100,000 x 20% = €220,000

Guarantee reference amount is determined as €320,000

No guarantee is required for goods under OP (unless

import/export (IM/EX) – prior import equivalence or Standard

Exchange System (SES) is used), IP export/import (EX/IM)

and in the following TA scenarios:

2.9 Circumstances when a guarantee is notrequired



Contents

where the customs declaration may be made orally or by

any other act

in the case of materials belonging to or used under

contractual arrangement by airlines, shipping or railway

companies or postal services in international traffic subject

to those materials being distinctively marked

in the case of packing’s imported empty, carrying indelible

non-removable markings

where the previous holder of the authorisation

for TA declared the goods for the procedure by making an

oral or by any other act declaration and the goods are

subsequently placed under TA for the same purpose

Personal imports and goods for sports purposes do not require

a guarantee if the values of the goods is under €10,000.

See Annex C for more information.


81

If you are approved under the TA works of art scheme to waive

the requirement of a guarantee for VAT this will continue under

the UCC.



Contents

If you wish to use self-assessment or centralised clearance

with special procedures, you should consult the relevant

guidance which will be issued in due course


179, 185 149, 151, 152

If you wish to use simplified declarations to declare your goods

- either SDP and/or EIDR you should consult Notice 760:

Customs Freight Simplified Procedures.

EIDR may not be used to enter goods to any special procedure

where an Information (INF) form is required. In order to

use EIDRto move from one special procedure to another

(excluding transit) the following conditions must be fulfilled:

the authorisation holders between the first and second

procedure must be the same

the declaration for the first special procedure must have

been made by using an Import and export: Single

2.10 Self Assessment and CentralisedClearance

2.11 Simplified Procedures



Contents

Administrative Document (C88A) or a supplementary

declaration has been lodged

the first special procedure is discharged by placing the

goods under the second special procedure (other

than EnU or IP) by making an entry in the records

UCCArticle DA Article IA Article

179, 182,

185

149,150,151,152,183 55,157,186,187,215,220,222,224,225,226,227,228,229,

230,324

To use a procedure, you do not need to be the owner of the

goods (apart for some TA reliefs) but you must be:

a ‘natural’, or ‘legal’ person, and any association of persons

which is not a legal person but which is recognised under

Union or national law as having the capacity to perform

legal acts established in the EU. The establishment criteria,

will not apply to some reliefs under TA

‘Person established in the customs territory of the Union’

means:

(a) In the case of a natural person, any person who has his or

her habitual residence in the customs territory of the union.

2.12 Who can use the Special Procedures?



Contents

(b) In the case of a legal person or an association of persons,

any person having its registered office, central headquarters or

a permanent business establishment in the customs territory of

the union.

‘Permanent business establishment’ means a fixed place of

business, where both the necessary human and technical

resources are permanently present and through which a

person’s customs-related operations are wholly or partly

carried out.

the person carrying out the processing (or arranging for it to

be carried out), storage or use (or arranging for its use)

authorised by HMRC to use the procedure

have an EORI number - all persons involved in international

trade are required to have an EORI number, further

information on EORI scheme and how to apply for

an EORI can be found in the Union Customs Code

Annexes.

Freight agents are not eligible for authorisation for special

procedures if they do no more than complete import and re-

export declarations (whether for a person established in

the EUor a non-established EU trader). The services agents

offer can vary so agents should undertake the safe carriage,

display and security around the goods during their time in the

UK including either arranging for the goods to be displayed,

assembled or used themselves.



Contents

If an agent advises you that you should use a special

procedure then you will need to be sure that you understand

the requirements of the procedure, as it is the authorisation

holder who will be ultimately responsible for the duties and

taxes suspended if any requirements described in this

guidance and in your authorisation are not met.


5(4),5(31),5(32)

There are 2 types of legal representation when using an agent:

direct representation: the third party authorised agent

submits a customs declaration in your name and on your

behalf - you are responsible for any customs debt that may

arise if information on the declaration is incorrect or the

import or export process is not properly completed

indirect representation: the third party submits a customs

declaration in their own name and they are jointly and

severally liable with you for any customs debt that may arise

if a declaration is incorrectly made

A third party must quote your authorisation number on all

customs import/export declarations.

2.13 Types of representation



Contents


18

As it is, the acceptance of the customs import declaration

by HMRC, which grants the authorisation, the person

requesting the use of a simplified authorisation, must be

named in the ‘Consignee’ field (box 8) of the declaration and

will be the person to which any debt demand (C18) will be

issued.

Anyone submitting a declaration on behalf of this person is

always acting in a direct capacity because he is requesting the

authorisation on their behalf. For this reason, indirect

representation is not an option with a simplified authorisation.

Where the TA authorisation holder is established outside of

the EU the representation must always be indirect.

2.14 Type of representation allowed with anauthorisation by customs declaration-‘simplified authorisation’



Contents

Third party representatives (such as freight agents) should

only declare goods to a special procedure CPC where they

have been given clear instructions from the authorisation

holder. Agents should also not enter goods to an authorisation

by declaration on behalf of another trader unless specifically

instructed to do so.

Any representative who cannot evidence that these

instructions were given may become liable for the customs

debt under Article 77(3) of the UCC should any irregularity

arise.

As the holder of the procedure concerning storage you must:

ensure that your goods are sent directly to the warehouse

shown on the declaration

provide the warehouse-keeper with details of the

declarations and an explanation of any discrepancies that

are identified

ensure the goods are correctly declared on removal from

the Customs Warehouse

You are also responsible for customs debt. If you are using a

public warehouse, you must give the warehouse-keeper all the

details of your customs declaration for their records and make

2.15 Responsibilities of third partyrepresentatives



Contents

sure that the warehouse-keeper holds a valid Customs

Warehouse authorisation for the type of goods you wish to

deposit.


18, 19

You should make sure that you provide and keep copies of

written instructions to your agent, that they provide you with

copies of customs declarations (and/or their Customs Handling

of Import and Export Freight (CHIEF) reference numbers), and

customs clearance reports for your records. You should also

check that the correct CPC has been used on import and/ or

free circulation/re-export and that duty calculations are correct.

A decision on an application for an authorisation for the use

of IPor OP procedure, the TA procedure or the EnU procedure

shall be taken without delay and at the latest within 30 days

from the date of acceptance of the application. Acceptance is

2.16 What are my responsibilities when usinga third party representative?

2.17 Time limit to take the decision



Contents

taken as the date a full and complete application, including all

necessary paperwork is received by HMRC.

A decision on an application for a Customs Warehouse

authorisation shall be taken without delay and at the latest

within 60 days from the date of acceptance of the application.

If your application requires an examination of the economic

conditions ‘the economic test’ then the time limits as referred to

above shall be extended for a maximum of one year from the

date on which the file was transmitted to the commission.

The customs authorities will inform the applicant or the holder

of the authorisation that the examination of the economic

conditions has been initiated and, if the authorisation has not

yet been issued, the period that the time limits to take the

decision has been extended to.


22.3 171

Application for authorisation by customs declaration (simplified

authorisation) may be made in the following cases:

2.18 Authorisation by customs declaration



Contents

a. TA unless the customs authorities consider a formal

application is required for goods imported having no economic

effect.

b. EnU where the applicant totally assigns the goods to the

prescribed use.

c. IP of goods not listed in Annex 71-02.

d. OP of goods not listed in Annex 71-02.

e. release free circulation under OPR Standard Exchange

System (SES) with or without prior importation of replacement

products, where the existing authorisation does not

cover SES and the customs authorities accept a request for

amendment to the formal authorisation.

f. release to free circulation under OPR for goods of a non-

commercial nature.

Where there is a risk of non-compliance the application for

authorisation for means of transport, spare parts, accessories

and equipment under TA will require a standard customs

declaration. We will notify the declarant without delay after

presentation of the goods that a standard declaration is

required.

The data elements required are those laid down in

the UCCAnnexes other than for TA of goods by oral

declarations for release to free circulation, TA or re-export or

any other act declarations for TA and re-export.

Use of the simplified authorisation procedures does not negate

the requirement for a guarantee.



Contents


6.1,6.2,6.3a,211 163.1

You must not use the authorisation by customs declaration

procedure in conjunction with:

SDP

centralised clearance

EIDR

application for authorisation involving more than one

Member State, other than for TA

where the use of equivalence is applied for

where an examination of economic conditions must take

place

where the amount of import duty is calculated under Article

86(3) of the UCC (tariff classification, customs value,

quantity, nature and origin of the goods at the time the

goods were placed under the IP procedure).

where the application is for a retroactive authorisation -

other than e and f in paragraph 2.18 (OPR)


2.19 Exclusions from using the authorisationby customs declaration



Contents

6.1,6.2,6.3a,211 163.2

Where an application has been made for:

TA unless the customs authorities require a formal

application when goods are imported having no economic

effect

EnU, where the applicant intends to wholly assign the

goods to the prescribed EnU

IP of goods which are not listed in Annex 71-02

OP of goods which are not listed in Annex 71-02

release for free circulation after OP using the standard

exchange system with or without prior import of

replacement products, where the existing authorisation

does not cover such a system and the customs authorities

permit its modification

release for free circulation after OP if the processing

operation concerns goods of a non-commercial nature

where the customs authorities have considered that the

placement of means of transport or spare parts, accessories

and equipment for means of transport under

the TA procedure would entail a serious risk of non-

compliance with one of the obligations laid down in the

customs legislation, the application for an authorisation shall

2.20 Other form of an authorisation



Contents

be based on a standard customs declaration - in this case,

the customs authorities shall inform the declarant without

delay after the presentation of goods to customs about the

requirement to submit a standard customs declaration

by ATA (Admission Temporaire/Temporary Admission)

Carnet

the authorisation shall be granted by release of goods for the

relevant customs procedure.


262

When an application for TA is made orally, the declarant shall

present a document as referred to in Annex 71-01 containing

the following information:

name and address of the declarant

description of the goods, their value and quantity

place of use and kind of use of the goods and means of

identifying them

the period for discharge

the customs office(s) of discharge

2.21 Oral declaration for TA



Contents

If the goods are for use in the UK then use Import and

export: TA - inventory/document to support an oral customs

declaration (C108). If the goods are to be used in multiple

member states, the model inventory document on

the EU website should be used.


6.1, 6.2, 6.3a, 211 165 258

2.21.1 Supporting document for an oral customs

declaration for TA

The supporting document shall be presented in duplicate and

one copy shall be endorsed by the customs authorities and

given to the holder of the authorisation.


22.2 258

2.21.2 Refusal of a customs declaration made orally or by

any other act

If the customs authorities are not satisfied that, the particulars

declared orally are accurate or that they are not complete. We

shall refuse an oral declaration.



Contents

Where a check reveals that the goods have been declared by

any other act, but the goods imported or taken out do not fulfil

the conditions, the goods concerned shall be considered not to

have been declared.


213

1. In order to be granted a retroactive authorisation all of the

following conditions must be met:

there is a proven economic need

the application is not related to attempted deception

you can prove on the basis of accounts or records that:

all of the requirements of the procedure are met

where appropriate, the goods can be identified for the

period involved

accounts and records are adequate to control the

procedure

all of the formalities necessary to regularise the situation of

the goods can be carried out, including where necessary

the invalidation of the customs declarations concerned. You

or your agent will be required to arrange for any

new/amended entries to be entered electronically to CHIEF

2.22 Retroactive authorisation



Contents

you have not had a retroactive authorisation for the same

special procedure within 3 years of the date on which the

application was accepted

your authorisation does not require an examination of the

economic conditions, except where the application concerns

renewal for the same kind of operations and goods. where

an examination will be required the retroactive effect of such

an authorisation will only be backdated to the date of the

examination

the application does not concern the operation of storage

facilities under CW

any application for renewal for the same kind of

goods/operation the application is submitted within 3 years

of the expiry of the original

We may grant a retroactive authorisation if the goods are no

longer available subject to the conditions above.

An authorisation with retroactive effect shall take effect at the

earliest on the date on which the application was accepted.

2. In exceptional circumstances, we may allow retroactive

effect of an authorisation to be backdated no longer than one

year before the date on which the application was accepted.

3. If an application concerns renewal of an authorisation for the

same kind of operation and goods, an authorisation may be

granted with retroactive effect from the date the original

authorisation expired subject to above.



Contents

Applications must meet all the criteria set out above. The

Authorising Office will consider requests on a case-by-case

basis so it is very important that you explain the exceptional

circumstances when applying for a retroactive authorisation.

A retroactive authorisation is unlikely to be granted more than

once, as any further requests for retrospection are likely to be

considered as obvious negligence unless the circumstances

are very exceptional and different from those, which led to the

first retroactive authorisation being granted.

No retroactive authorisations can be granted:

for the storage procedure

for TA under the oral declaration or any other act

procedures

by using an authorisation by customs declaration -

‘simplified authorisation’


22.4, 211 172

Example

An economic operator has been granted a

retroactive EnUauthorisation. He asks for a retroactive renewal

of that authorisation. This will not be possible under Article



Contents

211.2(e) but if he had asked for a retroactive authorisation

for IP, that authorisation could have been granted.

Art. 163 (1)(e) and (f) of the DA (OPR SES and non

commercial goods under OPR) may be applied more than

once within the 3 years period 4. This rule may cover

authorisation based on a customs declaration and also full

authorisations.

Applications should be made on form(s):

SP1 - EnU

SP3 - IP

SP4 - OP

SP5 - TA

In addition, you must provide a covering letter stating the

reasons why retrospection is required and provide a list of the

imports you wish to be included in the retrospective period of

authorisation. You will also need to be able to produce records

to support your application and show that the goods in

question were or are eligible for the procedure. If we grant

retrospection, you will be required to arrange for the

2.23 How do l apply for retrospection?



Contents

amendment of the import entries and arrange for an agent to

key them to CHIEF.

You may use an ATA or CPD carnet as an application

for TA where all of the following conditions are met. The carnet

is:

issued by a contracting party to the ATA convention or

Istanbul convention and endorsed and guaranteed by an

association forming part of the international supply chain

related to the goods and uses covered by the convention

certified by the customs authorities in the appropriate

section on the cover page

valid throughout the customs territory of the Union

valid at the time of import


163.5

2.24 Application for TA by use of an ATA orCarnet de Passages en Douane (CPD)carnet



Contents

In most cases the authorisation

for IP EX/IM and OP IM/EXinvolving one or more Member

States and IP IM/EX, OP EX/IMinvolving more than one

Member State will require the use of the standardised

exchange of information (INF) which puts certain obligations

on the holder of an authorisation for the use of the processing

procedure. Where the exporter and importer are different, this

will also involve a transfer of rights and obligations (TORO)

from the authorisation holder to the counterpart that discharges

the procedure. For further information on INF and TORO,

see paragraph 6.5.

Where an authorisation has been granted by declaration the

use of the INF is required only for OP EX/IM if one member

state is involved, and involves goods other than those listed in

Annex 71-02 or where the processing operation concerns

goods of a non commercial nature.


176

2.25 Authorisation for IP Export/Import(EX/IM) (prior export equivalence),Outward Processing (OP) EX/IM (priorimport equivalence) involving one ormore than one Member Stateand IP EX/IM or OPImport/Export (IM/EX)involving more than one member state



Contents

a. Authorisations for the use of IP EX/IM or OP EX/IM which

involve one or more than one Member State and

authorisations for the use of IP IM/EX or OP IM/EX which

involve more than one Member State:

must use the INF, unless the customs authorities agree

other means of electronic exchange of information

the holder of the authorisation shall provide the supervising

customs office with information as referred to in Section A of

Annex 71-05

the customs declarations for the IP procedure, export

declaration under IP EX/IM, OP procedure, release for free

circulation after OP, the customs declarations for the

discharge of the processing procedure and the re-export

declarations or re-export notifications shall refer to the

relevant INF number

b. Authorisations for the use of IP IM/EX, which involve one

member state, shall establish that, at the request of the

supervising customs office, the holder of the authorisation shall

2.26 Standardised exchange of information(INF) and the obligations of the holder ofan authorisation for the use of aprocessing procedure



Contents

provide information about the goods, which were placed under

the IP procedure. This information shall enable the supervising

customs office to calculate the amount of Import Duty in

accordance with Article 86(3) of the UCC.

If you wish to use an INF document, you cannot make a

declaration using EIDR.


211.1 176

Applications involving more than one Member State should be

made on the model form in Annex 67 of the UCC. The

application should be made in the Member State where your

main accounts are held and at least part of the processing will

be carried out. TAapplications involving more than one

Member State may be made by using the simplified

authorisation by customs declaration procedure however

applications for TA must be made in the first Member State

where the goods will be used.

2.27 Consultation procedure betweencustoms authorities for authorisationsinvolving more than one Member State



Contents

1. Articles 11 and 15 of the IA shall apply to authorisations

involving more than one Member State under the following

conditions set out in paragraphs 2 to 5, unless the decision-

taking customs authority is of the opinion that the conditions

for granting such an authorisation are not fulfilled.

2. The competent customs authority shall communicate to the

other customs authorities concerned the application and the

draft authorisation at the latest 30 days after the date of

acceptance of the application.

3. No authorisation involving more than one Member State

shall be issued without the prior agreement of the customs

authorities concerned on the draft authorisation.

4. The other customs authorities concerned shall

communicate objections, if any, or their agreement within 30

days after the date on which the draft authorisation was

communicated. Objections must be duly justified. Where

objections are communicated within that period and no

agreement is reached within 60 days after the date on

which the draft authorisation was communicated, the

authorisation shall not be granted to the extent to which

objections were raised.

5. If the other customs authorities concerned do not

communicate objections within 30 days after the date on

which the draft authorisation was communicated, their

agreement shall be deemed to be given.



Contents


22 260

1. Prior agreement of Member States shall be replaced by

simple notification in any of the following cases where:

(a) an authorisation involving more than one Member State is:

renewed

subject to minor amendments

annulled

suspended

revoked

(b) 2 or more Member States have agreed thereto.

(c) The only activity involving different Member States is an

operation where the customs office of placement and the

customs office of discharge are not the same.

(d) The application for an authorisation for TA, which involves

more than one Member State, is made based on a customs

2.28 Simplifications concerning theconsultation procedure



Contents

declaration in the standard form.

2. Neither prior agreement nor notification shall be needed

where any of the following applies:

(a) ATA or CPD carnets are used.

(b) The authorisation for TA is granted by release of goods for

the customs procedure using the authorisation by customs

declaration method.

(c) 2 or more Member States have agreed thereto.

(d) The only activity involving different Member States is the

movement of goods.

3. Where all member states involved have agreed to use the

simplifications in accordance with paragraphs (1) (b) or (2) (c),

the Commission shall be notified accordingly by the concerned

member states.


22 261



Contents

If you wish to amend your authorisation, you must submit a

written request with details of the required amendment to your

supervising office. If you are renewing your application you will

be required to submit a fresh application form.

The authorisation holder is responsible for applying for the

renewal of an authorisation on time. The supervising office will

not issue reminders. Retrospective authorisation cannot be

used as a regular or recurring form of authorisation.


6.3a 164

Except for justified reasons, the period of validity of an

authorisation shall not exceed 5 years from the date the

authorisation for the following categories of special procedures

takes effect:

specific use

processing

2.29 Application for renewal or amendmentof an authorisation

2.30 Period of validity of an authorisation



Contents

The period of validity referred to in paragraph 1 shall not

exceed 3 years where goods are covered by Annex 71-02.

A validity period of three/five years should not be considered

standard. You must justify the period of validity you request for

each authorisation. Exceptionally a TA authorisation may be

granted for a period up to 10 years subject to suitable evidence

being provided that the goods are to be used for 10 years.

Authorisations for Customs Warehouses are not time limited.

The period of validity is not the same as the period for

discharge.


22.5 173

Economicconditions/economic test3.

3.1 Examination of the economic conditions



Contents

The economic conditions for IP shall be examined only in the

following cases:

a. Where the calculation of the amount of import duty is made

in accordance with Article 86(3) of the UCC:

evidence exists that the essential interests of Union

producers are likely to be adversely effected

the case is not covered by paragraph 3.4 (1)

b. Where the calculation of the amount of import duty is made

in accordance with Article 85 of the UCC:

the goods intended to be placed under the IP procedure

would be subject to a commercial or an agricultural policy

measure or an ADD, Countervailing Duty, Safeguard Duty if

they were declared for release for free circulation


c. Where the calculation of the amount of import duty is made

in accordance with Article 85 of the UCC:

the goods intended to be placed under the IP procedure

would not be subject to a commercial or an agricultural

policy measure or an ADD, Countervailing Duty, Safeguard

Duty if they were declared for release for free circulation

evidence exits that the essential interests of Union

producers are likely to be adversely effected



Contents


d. The economic conditions for OP shall be examined only

where evidence exists that the essential interests of Union

producers of goods listed in Annex 71-02 are likely to be

adversely effected and the goods are not intended to be

repaired.


28.1.a, 211.3,211.4,211.6 166 259

In the context of economic conditions as referred to in Article

211(4)(b) of the UCC, the burden of proof whether evidence

exists that the essential interests of Union producers are likely

to be adversely affected before or after issuing an authorisation

shall lie with the producers in the Union.


292

3.2 Burden of proof



Contents

1. Where an examination of the economic conditions is

required, the competent customs authority for taking a

decision on the application for an authorisation as referred

to in Article 211(1) (a) of the UCC shall request such

examination. The competent Member State shall transmit

the file to the commission without delay. You should send

your application in the first instance to your authorising

office.

2. Where, after issuing an authorisation, evidence becomes

available that the essential interests of producers of the

Union are likely to be adversely affected because of the use

of a processing procedure; the Member State concerned

shall inform the commission so that the economic conditions

can be examined.

3. An examination of the economic conditions at Union level

may take place at the initiative of the commission.

Applicants must supply documentary evidence to support the

reasons you have given in the application for the need to use

the goods which are subject to economic test. You should be

advised that failure to supply the necessary documentary

evidence for the purposes of the economic test will result in

authorisation being delayed or your application being rejected.

3.3 Requesting an examination of theeconomic conditions



Contents

It is not sufficient for you to state that goods not available in the

Union or that they can be sourced more cheaply from outside

the Union. Nor is it sufficient to say that your customers

requires components to be sourced from particular third

country suppliers. You must provide written evidence of this.


28.1.a,211.6 259

Flowchart on Application for Inward Processing

Flowchart on Application on Outward Processing

1. The economic conditions for IP shall be deemed to be

fulfilled where the application concerns any of the following

operations:

Process Economic

Code

The processing of goods not listed in Annex 71-02 1

3.4 Cases in which the economic conditionsare deemed to be fulfilled for IP



Contents

Process Economic

Code

Repair 2

Processing of goods placed under IP of goods directly or indirectly

put at the disposal of the holder of the authorisation, carried out

according to specifications on behalf of a person established

outside of the customs territory of the Union, generally against

payment of processing costs alone

3

The processing of durum wheat into pasta 4

The placing of goods under IP within the limits of the quantity

determined on the basis of a supply balance in accordance with

Article 18 of Council Regulation (EU) No 510/2014

5



Contents

Process Economic

Code

The processing of goods, which are listed in Annex 71-02 in any of

the following situations:

* unavailability of goods produced in the Union sharing the same

8-digit Combined Nomenclature (CN) code, the same commercial

quality and technical characteristics as the goods intended to be

imported for the processing operations envisaged

* differences in price between goods produced in the Union and

those intended to be imported, where comparable goods cannot

be used because their price would not make the proposed

commercial operation economically viable

* contractual obligations where comparable goods do not conform

to the contractual requirements of the third country purchaser of

the processed products, or where in accordance with the contract,

the processed products must be obtained from the goods intended

to be placed under IP in order to comply with provisions

concerning the protection of industrial or commercial property

rights

* the aggregate value of goods to be placed under

the IP procedure per applicant and calendar year for each eight-

digit CN code does not exceed EUR 150 000

6

7

8

9

2. In addition to paragraph 1, the economic conditions

for IP shall be deemed to be fulfilled where the application

concerns any of the following operations:

Process Economic

code



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The processing of goods to ensure their compliance with technical

requirements for their release for free circulation

10

The processing of goods of a non-commercial nature 11

The processing of goods obtained under a previous authorisation,

the issuing of which was subject to an examination of the

economic conditions

12

The processing of solid and fluid fractions of palm oil, coconut oil,

fluid fractions of coconut oil, palm kernel oil, fluid fractions of palm

kernel oil, babassu oil or castor oil into products which are not

destined for the food sector

13

the processing into products to be incorporated in or used for civil

aircraft for which an airworthiness Certificate is issued

14

The processing into products, which may benefit from the

autonomous suspension of import duty on certain weapons and

military equipment

15

The processing of goods into samples 16

The processing of any electronic type of components, parts,

assemblies or any other materials into information technology

products

17

The processing of goods falling within CN codes 2707 or 2710 into

products falling within CN codes 2707, 2710 and 2902

18

The reduction to waste and scrap, destruction, recovery of parts or

components

19

Denaturing 20

Usual forms of handling referred to in Article 220 of the UCC 21



Contents

The aggregate value of goods to be placed under

the IP procedure per applicant and calendar year for each eight-

digit CN code does not exceed 150 000 EUR with regard to goods

which are covered by Annex 71-02 and 300 000 EUR for other

goods, except where the goods intended to be placed under

the IP procedure would be subject to a provisional or

definitive ADD, a countervailing duty, a safeguard measure or an

additional duty resulting from a suspension of concessions if they

were declared for release for free circulation

22

3. The unavailability referred to under code 6 shall cover any of

the following cases:

(a) the total absence of production of comparable goods within

the customs territory of the Union.

(b) the unavailability of a sufficient quantity of those goods in

order to carry out the processing operations envisaged.

(c) comparable Union goods cannot be made available to the

applicant in time for the proposed commercial operation to be

carried out, despite a request having been made in good time.


211.5 167



Contents

The conclusion drawn on the examination of the economic

conditions shall be taken into account by the customs

authorities concerned and by any other customs authorities

dealing with similar applications or authorisations.

Where the conclusion is that an application or an authorisation

concerns a unique case, this case cannot be considered as a

precedent to be used for similar applications or authorisations.

If your application requires an economic test it will only be valid

from the date the Customs Authority makes a decision

following discussion in the Commission. There can therefore

be no retrospective approval period.


259

3.5 Conclusion drawn on the examination ofthe economic conditions

3.6 Revocation of an authorisation in thecontext of an examination of theeconomic conditions



Contents

Where it has been concluded that the economic conditions are

no longer fulfilled, the competent customs authority shall

revoke the relevant authorisation. The revocation shall take

effect no later than one year after the day following the date on

which the holder of the authorisation is notified of the decision

on the revocation.


Where no examination of the economic conditions is required

and the goods intended to be placed under the IP procedure

would be subject to a commercial or an agricultural policy

measure or an anti-dumping, countervailing, safeguard duty if

they were declared for release for free circulation, the customs

authorities shall established in the authorisation for IP that the

amount of import duty shall be calculated in accordance with

Article 86(3) of the UCC. (Any customs debt for processed

products under IP shall be calculated on the basis of the tariff

classification, customs value, quantity, nature and origin of the

goods placed under IP at the time of the acceptance of the

customs declaration relating to those goods).

3.7 Amount of import duty to be calculatedin accordance with Article 86(3) ofthe UCC



Contents

The first sub-paragraph shall not apply if the economic

conditions are deemed to be fulfilled in the case of repair or

in paragraph 3.4 (2).

Where customs authorities have established in the

authorisation for IP that the amount of import duty shall be

calculated in accordance with Article 86(3) of the UCC in

accordance with paragraph 1, the authorisation for IP shall

provide that the relevant processed products may not be

imported directly or indirectly by the holder of the authorisation

and released for free circulation within a period of one year

after their re-export. However, the processed products may be

imported directly or indirectly by the holder of the authorisation

and released for free circulation within a period of one year

after their re-export if the amount of import duty is determined

in accordance with Article 86(3) of the UCC.


86.4 168

Customs declaration lodged atanother customs office

The competent customs authority may allow in exceptional

cases that the customs declaration may be lodged at a

4.



Contents

customs office other than those specified in the authorisation.

In that case, the competent customs authority shall inform the

supervising customs office without delay.


159.3 263

Records

The holder of the authorisation, the holder of the procedure

and all persons carrying on an activity involving the storage,

working or processing of goods, the sale or purchase of goods

in Free Zones shall keep appropriate records in a form

approved by the customs authorities. Records should contain

the information and the particulars, which enable customs

supervision in particular with regard to identification of the

goods placed under the procedure, their customs status and

their movements. If you are an AEO for customs

simplifications AEO c, this obligation is deemed to be met for

the purposes of special procedures if customs authorities have

verified this when issuing the AEOauthorisation.

5.5.1 Records



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1. The records referred to in Article 214 of the UCC shall

contain the following:

(a) Where appropriate, the reference to the authorisation

necessary for placing the goods under a special procedure.

(b) The Movement Reference Number (MRN) or where it does

not exist, any other number or code identifying the particulars

of the customs declarations by means of which the goods are

placed under the special procedure and where the procedure

has been discharged in accordance with A 215(1) of the UCC,

information about the manner in which the procedure was

discharged.

(c) Data that unequivocally allows identification of customs

documents other than customs declarations, of any other

documents relevant to the placing of goods under a special

procedure and of any other documents relevant to the

corresponding discharge of the procedure.

(d) Particulars of marks, identifying numbers, number and kind

of packages, the quantity and usual commercial or technical

description of the goods and, where relevant, the identification

marks of the container necessary to identify the goods.

(e) Location of goods and information about any movement

thereof.

(f) Customs status of goods.



Contents

(g) Particulars of usual forms of handling and, where

applicable, the new Tariff classification resulting from those

usual forms of handling.

(h) Particulars of TA or EnU.

(i) Particulars of IP or OP including information about the

nature of the processing.

(j) Where Article 86(1) of the UCC applies, the costs for

storage or usual forms of handling.

(k) The rate of yield or its method of calculation where

appropriate.

(l) Particulars enabling customs supervision and controls of the

use of equivalent goods in accordance with A 223 of the UCC.

(m) Where accounting segregation is carried out, information

about type of goods, customs status and, where appropriate,

origin of the goods.

(n) In cases of TA referred to in DA A 238, the particulars

required by that Article.

(o) In cases of IP referred to in DA Article 241, the particulars

required by that Article.



Contents

(p) Where appropriate, particulars of any TORO in accordance

with Article 218 of the UCC.

(q) Where the records are not part of the main accounts for

customs purposes a reference to those main accounts for

customs purposes.

(r) Additional information for special cases, at the request of

the customs authorities for justified reasons. Any additional

information as specified in any authorisation/approval letters.

2. In case of Free Zones the records shall in addition to the

information provided for in paragraph 1 contain the following:

(a) Reference particulars of transport documents concerning

goods entering or leaving Free Zones.

(b) Particulars concerning the use or consumption of goods of

which the acceptance of the customs declaration for release

for free circulation or TA would not entail application of import

duty or measures laid down under the common agricultural or

commercial policies in accordance with Article 247(2) of

the UCC.

3. The customs authorities may waive the requirement for

some of the information provided for in paragraphs 1 and 2,

where this does not adversely affect the customs supervision

and controls of the use of a special procedure.



Contents

4. In case of TA records must be kept only if required by the

customs authorities.


211,214.1 178

Records must be retained for 4 years after you dispose of the

goods to facilitate any post event assurance checks, which

may be conducted by customs. For VAT purposes this period is

6 years.

A duty management system is a software package usually

supplied by software suppliers to support commercial stock

records. A duty management system will contain various

modules to perform declaration procedures and/or stock

accounting for special procedures especially CW. If the

commercial stock records do not identify the duty status of the

goods being held they will not qualify as the stock record

without the duty management system.

5.2 How long must I keep my records?

5.3 Duty management systems



Contents

Such systems may be authorised provided they satisfy certain

criteria. In particular the stock account must show at all times

the current stock of goods that are under the customs

procedure. Therefore where a duty management system is an

integral part of the stock records, the records must be updated

no later than overnight, including bank holidays and weekends

if stock is being delivered to/removed from the customs

procedure at these times.

It should be remembered that a duty management system (in

conjunction with the commercial stock records) must contain

all the relevant information necessary for the operation of the

procedure. It must be able to identify goods for which a tariff

preference/quota or licensing restriction applies and ensure

that the appropriate certificate/licence is available prior to

removal of the goods to free circulation. It must also allow a full

audit of the procedure to be undertaken by us. There should

also be a procedure in place to ensure that the stock balances

in each set of records are regularly reconciled.

Discharge6.

6.1 Period for Discharge



Contents

Without prejudice to the EnU rules a special procedure shall be

considered discharged when the goods are placed under a

subsequent customs procedure, have been taken out of the

customs territory of the Union or been destroyed with no waste

remaining or abandoned to the State. The discharge of a

procedure shall take place within certain time limits unless

otherwise provided for. TA goods cannot be routinely

destroyed. Aggregated discharge entries are not permitted

other than in the confines of a simplified declaration

authorisation.


215, 257 174

At the request of the holder of the procedure, customs

authorities may extend the period for discharge specified in the

authorisation even when that originally set has expired.

Where the period for discharge expires on a specific date for

all the goods placed under the procedure in a given period, the

authorisation as referred to in Article 211(1) (a) of

the UCC may provide that the period for discharge shall be

automatically extended for all goods still under the procedure

6.2 Extensions to the period for discharge



Contents

on this date unless otherwise decided by the customs

authorities.


174

1. Authorisations for the use of IP IM/EX, IP EX/IM without the

use of INF and EnU shall provide for that the holder of the

authorisation must present the BoD to the supervising customs

office within 30 days after the expiry of the period for

discharge, unless such BoD is deemed unnecessary by the

supervising customs office.

2. At the request of the holder of the procedure, the customs

authorities may extend the period referred to in paragraph 1 to

60 days. In exceptional cases the customs authorities may

extend the period even if it has expired.

3. The BoD shall provide the information contained in Annex

71-06, unless otherwise determined by the supervising

customs office. This includes:

the authorisation reference

6.3 Bill of Discharge



Contents

quantity of each type of goods placed under IP/EnU for

which discharge is claimed

CN Code of goods placed under IP/EnU

rate of import duties of the goods placed under the

procedure and customs value

details of the declarations placing the goods under the

special procedure

type and quantity of processed products or subsequent

customs declarations or any other document discharging

the procedure

CN code and customs value of processed products if the

value scale method was used for the purposes of discharge

rate of yield

amount of duty to be paid

periods for discharge

4. Where processed products or goods placed under

the IPIM/EX procedure are deemed to have been released for

free circulation that information shall be included in the bill of

discharge.

In accordance with Article 6(3) (a) of the UCC, the customs

authorities may allow that the BoD is presented by means

other than electronic data-processing techniques.


6.2,6.3a,211.1,257.2 175 265



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For IP the customs authorities may specify that a period which

commences in the course of a month, quarter or semester

shall end on the last day of a subsequent month, quarter or

semester.

EnU is subject to a bill of discharge submitted by the

authorisation holder. For instance, all the placements under the

procedure for which the period of discharge ends during the

calendar month, may be covered by one single bill of

discharge which has to be submitted to the supervising

customs office on the last day of the given calendar month.

The forms available are:

BOD1: Inward processing using a full authorisation

BOD2: End Use relief using a full authorisation

BOD3: Inward processing using an authorisation by

declaration

BOD4: End Use relief using an authorisation by declaration

a) Where goods have been placed under a special procedure

using 2 or more declarations by virtue of one authorisation, the

placing or assignment of such goods or the products obtained

therefrom under a subsequent customs procedure, or to their

6.4 Discharge of a Special Procedure



Contents

prescribed EnU, shall be considered to discharge the

procedure for the goods in question placed under the earliest

of the declarations (hereinafter referred to as ’first in first out

principle’).

Where a special procedure is discharged by taking goods out

of the customs territory of the Union or by destruction with no

waste remaining in accordance with Article 215(1) of

the UCC the first in first out principle shall also apply.

However, the holder of the authorisation or the holder of the

procedure may request the discharge to be made in relation to

specific goods placed under the procedure.

Application of the first in first out principle shall not lead to

unjustified import duty advantages.

b) Where the goods under the special procedure are placed

together with other goods, and there is total destruction or

irretrievable loss, the customs authorities may accept evidence

produced by the holder of the procedure indicating the actual

quantity of goods under the procedure, which was destroyed or

lost.

Where the holder of the procedure cannot produce evidence

acceptable to the customs authorities, the amount of goods,

which has been destroyed or lost, shall be established by

reference to the proportion of goods of the same type under



Contents

the procedure at the time when the destruction or loss

occurred.

Compensatory interest is no longer applied to goods which

have been placed under TA or IP. For TA or IP procedures,

which have started before 1 May 2016 and are not discharged

on that date, compensatory interest is calculated for the period

which ends on 30 April 2016.


215 264

The rights and obligations may be partially or fully transferred

to another person who fulfils the conditions laid down for the

procedure.

The competent customs office shall decide whether

a TORO as referred to in Article 218 of the UCC may take

place or not. If transfer is permitted, the competent customs

office shall establish the conditions under which such transfer

is allowed. You should apply to your supervising office for

authorisation if you wish to transfer the rights and/or

obligations.

6.5 Transfer of rights and obligations



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Under EnU you may only transfer the obligations as you may

only have one declaration (C88) entering the goods to EnU.

You do not discharge your liability using TORO as the

procedure is not being discharged.

The TORO does not require any use of a subsequent customs

authorisation because the rights and obligations which may be

transferred to another person have been established in

accordance with the authorisation under which goods have

been placed under a special procedure. In

addition TORO does not require any subsequent customs

declaration for the same procedure.

Procedure Holder of the

authorisation

Holder of

the

procedure

Competent Customs

authority

for TOROapplication

Comments/examp

Inward processing Trader A Trader A Issuing customs

authority

Issuing customs

authority means the

Customs office that

issued the

authorisation

Inward

processing EX/IM (ex

INF5)

Trader A Trader A Issuing customs

authority

Trader B becomes

holder of the

procedure at the

moment when he

declares the goods

for IP and refers to

the INF5 in the

customs declaration



Contents


authorisation

Holder of

the

procedure

Competent Customs

authority

for TOROapplication

Comments/examp

Outward processing Trader A Trader A Issuing customs

authority

Where goods are

imported into a

different Member

State to that from

which they were

exported, the perso

re-importing the

goods (current INF2

procedures) would

become the holder

the procedure unde

Article 218 UCC)

Temporary

admission


authority

If a vehicle was

declared to TA by a

other act, the

authorisation holde

and the holder of th

procedure would be

the driver. If a third

person (established

outside the EU) me

the conditions to use

the vehicle, he wou

become the holder

the procedure unde

Article 218 UCC.

However

such TOROrequires

customs

authorisation.


Authorisation

Holder of

the

procedure

Competent customs

authority

for TOROapplication

Comments/example



Contents


authorisation

Holder of

the

procedure

Competent Customs

authority

for TOROapplication

Comments/examp

Customs

Warehousing Public

Type I first example

Trader A Trader B Customs office of

placement

Customs

Warehousing Public

Type I second

example


authority

Customs

Warehousing Public

Type II first example

Trader A Trader B Customs office of

placement


Authorisation

Holder of

the

procedure

Competent customs

authority

for TOROapplication

Comments/example

Customs

Warehousing Public

Type II second

example


authority

Customs

Warehousing Public

Type

Established

through

national

legislation

Trader A Customs office of

placement

Customs

Warehousing Private

Trader A Trader A Issuing office of

placement

EnU Trader A Trader A Issuing customs

authority



Contents

One actor could fulfill both functions, sometimes 2 or more

actors could be involved in any particular chain but there

cannot be more than one authorisation holder or more than

one holder of the procedure at any specific time.

Do both parties to the TORO need to hold an

authorisation?

No, a full or partial TORO does not require the transferee

(recipient) of the goods to hold an authorisation. The

transferee must abide by the transferred rights and obligations

(including the need to provide a guarantee in case of

full TORO). Due to the fact that the transferee does not have or

use an authorisation with regard to the goods for

which TORO is intended, the customs authorities will lay down

explicitly which rights and obligations are transferred from the

transferor to the transferee. The rights and obligations are

always related to goods which have been placed under the

special procedure. Some ‘personal’ rights and obligations

cannot be transferred, such as ‘AEOstatus’ or ‘providing the

necessary assurance of the proper conduct of the operations’

(see Article 211(3)(b) UCC).

If no authorisation is held by the second party, how can

customs approve the transfer?

Additional considerations on TORO



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Where an application for TORO is received, it is the

responsibility of the customs authority to confirm that the

transferee (recipient) is able to meet and maintain the rights

and obligations being transferred.

Do customs have the right to decide where a TORO can

apply and where a more formal movement/discharge must

take place?

Customs authorities will treat each application on merit but you

must be able to show an economic need for the TORO.

Can a TORO be allowed in reverse?

Yes. For example, if a processor asks for and is authorised to

make a TORO to a third party, once processing is finalised,

there can be a TORO back to the original authorisation holder

for them to dispose of the processed products.

Can a TORO be the subject of a further TORO?

Yes. If the authorisation holder cannot process goods and

passes them onto a third party under a TORO and that person

(for whatever reason) cannot process the goods, a

further TORO is possible.

How do guarantees operate within TORO?

Where there is a full TORO, the transferee will be required to

provide a guarantee, unless it can benefit from the waiver. A



Contents

partial TORO is possible where the guarantee given by the

transferor (holder of the authorisation/procedure) covers any

customs debt incurred by the transferee. If the transferor has a

reduction in or waiver of a guarantee, this cannot be passed as

part of the TORO.

Which customs authority is competent for an application

for TORO? (see column 4 in the table above)

Under IP, OP, EU and TA, the holder of the procedure and the

holder of the authorisation were normally the same person.

Therefore, an application for TORO should be submitted to the

customs authority which has issued the authorisation for the

use of IP, OP, E-U and TA. Under CW the actors were

normally more disconnected and therefore the holder of the

procedure will not necessarily know where the issuing customs

authority (or even the supervising office) is situated. In those

cases, the competent customs authority would be the customs

office of placement.

How would TORO work with IP EX/IM and the INF5

procedures?

The holder of the procedure is also the holder of the

authorisation (Trader A). As such, Trader A has the right to

declare (the import) goods to IP but there are no obligations to

pay duty due to the change of customs status. The right to

import goods ‘duty free’ can be transferred to Trader B. The

INF5 is completed and certified by the customs authorities.

Trader B can then declare goods to IP and put these goods on



Contents

the EUmarket without payment of duty. The holder of the

authorisation (Trader A) must apply for TORO before the

processed products are exported under IP EX/IM. It is fairly

common to find that the importer of the replaced goods in an

INF5 process changes. If this arises, a second TORO is

required. Trader B would request a TORO to Trader C from the

issuing customs office. The INF5 would be modified. Trader A’s

authorisation would also require amendment to reflect the

changes (including any change in the customs office of

placement).

Is it possible to have a TORO between (for

example) CW and IP?

Such a transfer is not possible.

You should ensure your records contain adequate evidence of

the discharge of the procedure by the person you have

transferred the rights and obligations to.


218 266

Movement of Goods7.



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Goods placed under a special procedure other than transit or

Free Zones may be moved between different places in the

customs territory of the Union. Under Article 219 UCC, there

must be a physical movement of goods, meaning a movement

of goods between different places in the customs territory of

the Union. This is not necessarily the case when a TORO is

permitted. The overall aim of Article 219 UCC is to reduce, as

far as possible, the use of the external transit procedure.

1. Movement of goods as referred to in Article 219 of

the UCCmay take place in any of the following cases and

under the following conditions:

(a) Between different places in the customs territory of the

Union under IP, TA or EnU without customs formalities other

than notation in your records. Movements between

authorisation holders or within the same authorisation may be

undertaken without formalities in the same Member State or if

different Member States apart from CW.

(b) Under OP from the customs office of placement to the

customs office of exit.

7.1 Movement of goods between places



Contents

(c) Under CW without customs formalities other than notation

in your records:

(i) between different storage facilities designated in the same

authorisation

(ii) from the customs office of placement to the storage facilities

(iii) from the storage facilities to the customs office of discharge

or the customs office of exit

Movements between different authorisation holders either in

the same Member State or between Member States must take

place by formal declaration. The dispatching warehouse

making a declaration to move the goods to the second

warehouse. Upon receipt, a declaration should be made by the

receiving warehouse entering the goods in their records.

2. Movements under CW shall end within 30 days after goods

have been removed from the Customs Warehouse.

At the request of the holder of the procedure, the customs

authorities may extend the 30 days period.

3. Where goods are moved under CW from the storage

facilities to the customs office of exit, the records shall provide

information about the exit of goods within 100 days after goods

have been removed from the Customs Warehouse.



Contents

At the request of the holder of the procedure, the customs

authorities may extend the 100 days period.


216 179

Example: The movement procedure between 2 special

regime authorisation’s holders can be implemented as

follows:

Company A, located in Member State 1, imports aluminium

ingots under its IP authorisation and processes it into

aluminium sheets. Those aluminium sheets are forwarded to

company B, holder of its own IP authorisation and located in

Member State 2, which transforms them into cans.

Company A is the holder of an IP authorisation involving more

than one Member State. The customs office of placement and

the customs office of discharge are not the same, and

therefore no prior consultation of Member State 2 is necessary

(see Art. 261(1)(c) IA). However the central contact point of

member state 1 should send a copy of Company’s

A IP authorisation to the central contact point of Member State

2, which would forward this copy to the customs office of

discharge. The customs office of discharge of the authorisation

of Company A has to be the customs office of placement of the

authorisation of Company B.



Contents

The goods are moved under the IP procedure without any

customs formalities (Art. 179 DA), but company A has to

provide information on the movement in its records.

The discharge of the first IP procedure will be made by the

placement of the goods under the second IP procedure (Art.

215 UCC). If the second holder:

uses his simplified procedure, he sends a confirmation of

receipt to the first holder stating the date when he placed

the goods under its own procedure - company A keeps the

confirmation of the receipt in its records and his liability is

discharged – MRN (Master Reference Number) or the

internal reference number which was used for the EIDR

uses a standard customs declaration, he sends information

about MRN and the date of placement under subsequent

customs procedure to company A which has to enter this

information in its records

The practice described above cannot be applied for

the EnUprocedure.

a) Movement of goods to the customs office of exit with a view

to discharging a special procedure other than EnU and OP by

7.2 Movements to the office of exit



Contents

taking goods out of the customs territory of the Union shall be

carried out under cover of the re-export declaration.

b) Where goods are moved under OP from the customs office

of placement to the customs office of exit, the provisions

pertaining to the export procedure shall apply.

c) Where goods are moved under EnU to the customs office of

exit, the provisions pertaining to the export procedure shall

apply mutatis mutandis.

d) Customs formalities other than keeping of records as

referred to in Article 214 of the UCC are not required for any

movement, which is not covered by paragraphs 1 to 3.

e) Where movement of goods takes place in accordance with

paragraphs 1 and 3, the goods remain under the special

procedure until they have been taken out of the customs

territory of the Union.


219 267

Goods must have been declared to OP in order for a

movement (within the scope of this article) to take place. For

processed products and goods re-imported in the state in

which they were exported under OP, movement should not be



Contents

possible under Article 219 UCC but external transit procedure

may be used.

Outward processing goods moving from the office of

placement to the office of exit

Article 267(5) IA specifically says that OP goods are not under

the export procedure. Therefore goods could move

under OP and with being in line with export formalities but not

under the export procedure.

Movements of goods other than EnU and OP goods from

the office of placement to the office of exit

Articles 158 to 195 UCC would apply (as per Article

179(2) DA). OP according to Article 259(1) UCC is not possible

for non-Union goods, but in case of temporary re-export

referred to Article 258 UCC it can be done. Temporary re-

export for further processing is possible under CPC 2151 and

authorization for OP is not needed.



Contents



Contents

Movement of goods under ‘Type E’ CW

Although ‘type E’ warehouses are not provided for under

the UCC, Article 240(1) UCC permits the storage of non-Union

goods in ‘any other location’.

Export of EnU goods

How should export of EnU goods be handled when:

(1) EnU had already been discharged by putting the goods to

their prescribed use and (2) where they had not been

discharged

It was agreed that for situation (1) and provided that the correct

discharge procedures had been followed, the goods were in

free circulation without conditions and that the normal export

rules would apply. The important tool would be the bill of

discharge; specifically the documents/information relating to

discharge and stating that goods have been assigned to their

prescribed EnU(Article 175(3) DA refers).

For situation (2), Article 179(1) DA allows the goods to travel to

the customs office of exit without formalities but with record

keeping requirements in place. A customs declaration for

export according to Article 269(3) UCC has to be submitted,

but goods are not placed under export procedure; they remain

under EnUprocedure until the exit from the customs territory of

the Union has been confirmed (see Article 267(5) IA). If no

evidence of the exit is provided by the bill of discharge, a

customs debt is incurred.



Contents

(a) Record of the movement

Movements to CW Type II from a CW Type I (to B from A

under CCIP) would be possible because Article

214(1) UCC allows records to be required from any person

involved in customs activities – that would include the holder of

the procedure if they were carrying out the movement. In

addition, Article 242 UCCclearly stated the responsibilities of

the holder of the authorisation and the holder of the procedure.

(b) Movement of goods within centralised clearance

Normally, goods are physically presented and all

documentation lodged at the same place. Under centralised

clearance, a declaration could be made in Brussels while the

goods are physically presented in Antwerp where they are

released (for example) to IP. In such circumstances, the goods

can move to the place of processing without customs

formalities but the movement must be reflected in the trader’s

records. Article 179(1) DA refers.

(c) Movement of goods following an authorisation being

obtained based on a customs declaration (Article

163 DA and Article 262 IA refer)

It was confirmed that where such an authorisation is obtained,

the goods can move to the place of processing or use under

Additional considerations on movementof goods



Contents

Article 179(1) DA – without customs formalities but reflected in

the records. Regarding TA, records must be kept only, if

required by the customs authorities. This would not impact on

authorisations involving more than one Member State as this

method cannot be used to obtain such authorisations. An

Annex 12 TDA or Annex A DA based application/authorisation

is always required with the exception of TA (Article 163(2)

(d) DA refers).

(d) Incomplete movements

The following scenario was discussed.

Goods move from a Customs Warehouse in The Netherlands

to an office of exit in Germany. The goods travel Article 179(3)

– the re-export declaration having been lodged in The

Netherlands. The goods do not leave the Union within 30 days.

A customs debt is incurred (Article 79 UCC) under Article

87(1) UCC at the place where the re-export declaration was

lodged.

(e) Free Zones

Article 219 UCC does not allow the movement of goods

between different Free Zones, only within the specific Free

Zone which the goods were placed in. Therefore, transit was

the only option.



Contents

Practical cases which may occur regarding transfer of

rights and obligations and movement of goods

Case 1 - Authorisation which involves more than one Member

State with no prior consultation

The following example was discussed and agreed.

Authorisation which involves more than one Member State

- need for consultation

The consultation was dependent upon the circumstances. For

example, if there was an authorisation involving storage in both

Member States, then consultation would be necessary.

However, if only the movement of goods were involved, no



Contents

prior consultation was necessary although it was always

advisable to ensure that the customs authorities in other

Member States were aware of what was happening to prevent

difficulties arising.

Case 2 - Fish under EnU

The basic scenario was that the holder of the authorisation

was a fish broker who declared stock to EnU. The holder of the

authorisation does not intend to carry out the processing

himself but passes the goods to a processor who cans the fish

and disposes of the processed product to the home market.

Two possibilities exist here;

(a) The fish remains under the control of the authorisation

holder. The canner would be named as a processor on the

authorisation and the movement of the goods from the

authorisation holder to the processor would be covered by

Article 179(1).

(b) There is a TORO between the authorisation holder and the

processor under Article 218 – either with or without a

movement of goods. Where a movement did take place, it

would be covered by Article 179(1).

Usual Forms of Handling

8.



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Goods placed in a Customs Warehouse, processing procedure

or Free Zone may undergo Usual Forms of Handling (UFH)

intended to preserve them, improve their appearance or

marketable quality or prepare them for distribution or resale.


220 180

Equivalence

Equivalence can allow you to use identical free circulation

goods in place of the goods you are authorised to enter

to IP for processing and export, CW, EnU or TA. It must not be

used to offset exports of free circulation goods in order to

reduce import bills on non-EU imports for use on

the EU market.

Equivalent goods consist of Union goods, which are used,

stored or processed instead of the goods placed under a

8.

9.

9.1 Circumstances when use of equivalencemay be authorised



Contents

special procedure.

Under OPR, equivalent goods consist of non-union goods,

which are processed instead of Union goods placed under

the OPRprocedure.

Except where otherwise provided equivalent goods shall have

the same eight digit CN code, the same commercial quality

and the same technical characteristics as the goods they are

replacing.

Upon application to your supervising office the following may

be authorised providing the proper conduct of operations in

particular customs supervision is ensured:

the use of equivalent goods under CW, unless the goods

which are replaced by equivalent goods are covered by

Annex 71-02 DA, Free Zones, EnU and a processing

procedure

the use of equivalent goods under TA in specific cases

in the case of IP the export of processed products obtained

from equivalent goods before the import of the goods they

are replacing (IP EX/IM -prior export equivalence) - if the

processed products would be liable to export duty if they

were not exported in the context of IP the holder of the

authorisation shall provide a guarantee to ensure payment

of the export duty should the non-union goods not be

imported within the period specified in the authorisation



Contents

in the case of OP the import of processed products obtained

from equivalent goods before the export of the goods they

are replacing (OP IM/EX)

If you hold an AEO customs simplifications authorisation, you

are deemed to fulfil the condition for the proper conduct of

operations as long as the activity relating to equivalent goods

was taken into account when the AEO authorisation was

granted.


223 268

Equivalence may not be authorised for any of the following:

where only UFH is carried out under IP

where a prohibition of drawback or of exemption from import

duty applies to non-originating goods used in the

manufacture of processed products under IP for which a

proof of origin is issued or made out in the framework of a

preferential agreement between the Union and certain

countries or territories outside the customs territory of the

Union - however where it is needed to use equivalent goods

9.2 Situations when equivalence may not beauthorised



Contents

an option is to discharge IP by release for free circulation -

in this case import duties have to be calculated in

accordance with Art 86(3) UCC - the processed products

may be subsequently exported with a preferential proof of

origin - Art 223(3)(b) and Art 78 UCC permits, economic

operators to re-export under a proof of origin the main

processed products manufactured with non-originating

goods if the customs duties on those non-originating goods

have been paid; when an FTA does not contain a no-

drawback rule, the use of equivalent goods is permitted and

a proof of origin can be issued, or made out, for processed

products without payment of import duty

where it would lead to an unjustified import duty advantage

or where provided for in Union legislation

the use of equivalent goods shall not be authorised where

the non-Union goods would be subject to anti-dumping,

countervailing, safeguard duty or an additional duty

resulting from a suspension of concessions if they were

declared for release for free circulation

the storage of equivalent goods under CW shall not be

authorised where the non-Union goods are covered by

Annex 71-02

the use of equivalent goods shall not be authorised for

goods or products that have been genetically modified or

contain elements that have undergone genetic modification

under CW, IP and OP it is not permitted to replace organic

goods by conventionally produced goods, and

conventionally produced goods by organic goods



Contents


223.1,223.2,223.3.c 169

The use of equivalent goods shall be authorised irrespective of

whether the use is systematic or not.

The use of equivalent goods for IP shall be authorised where

the equivalent goods are any of the following:

(a) Goods at a more advanced stage of manufacture than the

non-Union goods where the essential part of the processing

with regard to these equivalent goods is carried out in the

undertaking of the holder of the authorisation or in the

undertaking where the operation is being carried out on his

behalf.

(b) In case of repair, new goods instead of used goods or

goods in a better condition than the non-Union goods.

(c) Goods with technical characteristics similar to the goods,

which they are replacing, provided that:

9.3 Authorisation for the use of equivalentgoods



Contents

(i) they have the same eight-digit CN code

(ii) they have the same commercial quality

(iii) such use would not have an impact on customs

supervision and would not be likely to increase the risk of

fraud.

For goods listed in Annex 71-04, the provisions on the use of

equivalent goods set out in that Annex shall apply.

In case of TA, equivalent goods may be used if the

authorisation for TA with total relief from import duty is granted

for containers, pallets, spare parts, accessories and equipment

for containers and non-union pallets.


223.1,223.2,223.3.c 169

1. Use of equivalent goods shall not be subject to the

formalities for placing goods under a special procedure.

2. Equivalent goods may be stored together with other Union

goods or non-Union goods. In such cases the customs

authorities may establish specific methods of identifying the

9.4 Formalities for equivalent goods



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equivalent goods with a view to distinguishing them from other

Union goods or non-Union goods.

Where it is impossible or would only be possible at

disproportionate cost to identify at all times each type of goods,

accounting segregation shall be carried out with regard to each

type of goods, customs status and, where appropriate, origin of

the goods.

3. In the case of EnU, the goods, which are replaced, by

equivalent goods shall no longer be under customs supervision

in any of the following cases:

a) the equivalent goods have been used for the purposes laid

down for the application of the duty exemption or reduced rate

of duty

b) the equivalent goods are exported, destroyed or abandoned

to the state

c) the equivalent goods have been used for purposes other

than those laid down for the application of the duty exemption

or reduced duty rate if the applicable import duty has been

paid


223 268



Contents

The concept of the accounting segregation has been extended

and it can be used also in the context of the use of equivalent

goods (see Art. 268(.2) IA). However, some restrictions exist

regarding the use of equivalent goods (see Art.

223(3) UCC and Art.169 DA).

Equivalent goods may be stored together with other Union

goods or non-Union goods. Accounting segregation is allowed

to identify each type of goods (see Art. 268(2) IA).

The use of equivalent goods is allowed under CW and may be

combined with IP or EnU. If so, accounting segregation is

required with regard to these procedures, unless the different

types of goods can be physically separated.

Use of equivalent goods under the UCC.

Article 169, Authorisation for the use of equivalent goods,

(Articles 223(1) and (2) and 223(3)(c) of the Code)

The use of equivalent goods as referred to in the first

subparagraph of Article 223(1) of the Code shall not be

authorised where the goods placed under the special

procedure would be subject to a provisional or definitive anti-

dumping, countervailing, safeguard duty or an additional duty

Inward Processing (IP)



Contents


declared for release for free circulation.

Article 223 UCC, Equivalent goods

Equivalent goods shall consist in Union goods which are

stored, used or processed instead of the goods placed under a

special procedure.

Under the OP procedure, equivalent goods shall consist in

non-Union goods which are processed instead of Union goods

placed under the OP procedure.

Except where otherwise provided, equivalent goods shall have

the same eight-digit Combined Nomenclature code, the same

commercial quality and the same technical characteristics as

the goods which they are replacing.

It was argued that Article 169(2) DA would have a negative

impact on business activities in the EU because it was not

allowed anymore to export EU raw materials used as

equivalent goods in the form of processed products and to

import the corresponding quantity of non-Union raw materials

duty-free into the EU.

Legal aspects and reasoning behind thenew restriction



Contents

Article 269 IA, Status of equivalent goods, (Article 223 of

the Code)

In case of IP, the equivalent goods and the processed

products obtained therefrom shall become non-Union goods

and the goods which they are replacing shall become Union

goods at the time of their release for the subsequent customs

procedure discharging the procedure or at the time when the

processed products have left the customs territory of the

Union.

However, where the goods placed under the IP procedure are

put on the market before the procedure is discharged, their

status shall change at the time when they are put on the

market. In exceptional cases, where the equivalent goods are

expected not to be available at the time when the goods are

put on the market, the customs authorities may allow, at the

request of the holder of the procedure, the equivalent goods to

be available at a later time within a reasonable period to be

determined by them.

In case of prior export of processed products under IP, the

equivalent goods and the processed products obtained

therefrom shall become non-Union goods with retroactive

effect at the time of their release for the export procedure if the

goods to be imported are placed under that procedure.

Where the goods to be imported are placed under IP, they

shall at the same time become Union goods.



Contents

The reasoning behind the restriction as laid down in Article

169(2) DA is to ensure the effectiveness of the EU trade

defence instruments (EU anti-dumping, anti-subsidy, or

safeguard measures).

Example:

One ton of Union goods A (equivalent goods) are processed

into 2 tons of processed product B which are exported

under IPEX/IM.

Subsequently one ton of non-Union goods A are imported and

placed under IP. At the moment of placement of such goods

under IP they become Union goods (second subparagraph of

Article 269(3) IA). Consequently, goods A are in free circulation

and not subject to customs supervision anymore. Non-Union

goods A were put on the EU market without payment of any

amount of import duty. Regarding erga omnes import duty the

‘non-payment’ is not problematic because the use of

the IPprocedure should stimulate export activities in the EU so

that processed products may be sold at a more competitive

price on the world market.

However, where non-Union goods A intended to be placed

under IP would be subject to a provisional or definitive anti-

dumping, countervailing, safeguard duty or an additional duty


declared for release for free circulation, the non-payment of

such duties is problematic. The effectiveness of the EU trade



Contents

defence instruments is not ensured. That is the reason why

Article 169(2) DA does not allow the use of equivalent goods in

such situations.

Practical solutions

Current business activities may be carried out under

the UCCwithout any change. However, where a customs debt

is incurred, the payment of ADD, countervailing duties etc.

must be ensured so that the EU trade defence instruments

cannot be undermined.

Article 86(3) UCC refers to origin of goods:

Article 86 UCC 3. Where a customs debt is incurred for

processed products resulting from the IP procedure, the

amount of import duty corresponding to such debt shall, at the

request of the declarant, be determined on the basis of the

tariff classification, customs value, quantity, nature and origin

of the goods placed under the IP procedure at the time of

acceptance of the customs declaration relating to those goods.

The following 2 examples illustrate how business

activities could be carried out under IP without the use of

equivalent goods:

1. 20 tons of raw materials A which would be subject to erga

omnes import duty and ADD (if they were declared for

release for free circulation), 30 tons of raw materials A

which would be only subject to erga omnes import duty (if



Contents

they were declared for release for free circulation) and 50

tons of EUraw materials A are stored in bulk. The 3 types of

raw materials are stored in a silo which is used as a storage

facility for the CW of goods.

Accounting segregation is carried out in accordance with

Article 177 DA with regard to the three types of raw materials

A.

Article 177 DA

Storage of Union goods together with non-Union goods in

a storage facility, (Article 211(1) of the Code)

Where Union goods are stored together with non-Union goods

in a storage facility for CW and it is impossible or would only

be possible at disproportionate cost to identify at all times each

type of goods, the authorisation as referred to in Article 211(1)

(b) of the Code shall establish that accounting segregation

shall be carried out with regard to each type of goods, customs

status and, where appropriate, origin of the goods.

The total quantity of 100 tons of raw materials A are placed

under IP and processed into 200 tons of processed products

B. Rate of yield is 100%. 100 tons of processed products B are

re-exported and the other 100 tons of processed products are

declared for release for free circulation. The declarant requests

the calculation of the amount of import duty to be made in

accordance with Article 86(3) UCC.



Contents

This means that erga omnes import duty and ADD must be

paid for 10 tons of raw materials A. In addition, erga omnes

import duty is due for 15 tons of raw materials A.





they were declared for release for free circulation) and 50

tons of EUraw materials A are stored in bulk. The 3 types of

raw materials are stored in a silo which is used as a storage

facility for the CW of goods.

Accounting segregation is carried out in accordance with

Article 177 DA with regard to the 3 types of raw materials A.

20 tons of raw materials A which would be subject to erga

omnes import duty and ADD (if they were declared for release

for free circulation) are placed under IP and processed into 40

tons of processed products B which are re-exported. Import

duty is not due.

30 tons of raw materials A which would be only subject to erga

omnes import duty (if they were declared for release for free

circulation) are placed under IP and processed into 60 tons of

processed products. The processed products are declared for

free circulation. The declarant requests the calculation of the

amount of import duty to be made in accordance with Article

86(3) UCC.



Contents

This means that erga omnes import duty must be paid for 30

tons of raw materials A.

50 tons of EU raw materials A are processed into 100 tons of

processed products which are put on the EU market without a

customs declaration because the products have Union status

and therefore they are in free circulation.

The following example illustrates how business activities

could be carried out under IP with the use of equivalent

goods:





they were declared for release for free circulation), 30 tons

of equivalent goods and 20 tons of Union raw materials A

are stored in bulk. The 4 types of raw materials are stored in

a silo which is not used as a storage facility for CW of

goods.

Accounting segregation in accordance with Article 268(2) IA is

carried out with regard to the 4 types of raw materials A.

Article 268 IA, Formalities for the use of equivalent goods,

(Article 223 of the Code)



Contents

1. The use of equivalent goods shall not be subject to the

formalities for placing goods under a special procedure.

2. Equivalent goods may be stored together with other Union

goods or non-Union goods. In such cases, the customs

authorities may establish specific methods of identifying the

equivalent goods with a view to distinguishing them from the

other Union goods or non-Union goods.

Where it is impossible or would only be possible at

disproportionate cost to identify at all times each type of goods,

accounting segregation shall be carried out with regard to each

type of goods, customs status and, where appropriate, origin of

the goods.

The 20 tons of raw materials A which would be subject to erga

omnes import duty and ADD (if they were declared for release

for free circulation) are processed, 30 tons of equivalent goods

are processed instead of 30 tons of raw materials A which

would be only subject to erga omnes import duty (if they were

declared for release for free circulation) and 20 tons of Union

raw materials A are processed into total 140 tons of processed

products B. Rate of yield is 100%. 70 tons of processed

products B are re-exported and the other 70 tons of processed

products are declared for release for free circulation. The

declarant requests the calculation of the amount of import duty

to be made in accordance with Article 86(3) UCC.

This means that erga omnes import duty and ADD must be

paid for 10 tons of raw materials A. Erga omnes import duty is



Contents

due for 15 tons of raw materials A which were used as

equivalent goods and which have changed their customs

status. The 30 tons of raw materials A which would be only

subject to erga omnes import duty (if they were declared for

release for free circulation) have changed their customs status

and are in free circulation (see Article 269 IA).

1. In case of CW and TA the equivalent goods shall become

non-Union goods and the goods, which they are replacing,

shall become Union goods at the time of their release for the

subsequent customs procedure discharging the procedure or

at the time when the equivalent goods have left the customs

territory of the Union.

2. In case of IP the equivalent goods and the processed

products made there from shall become non-Union goods and

the goods, which they are replacing, shall become Union

goods at the time of their release for the subsequent customs

procedure discharging the procedure or at the time when the

processed products have left the customs territory of the

Union.

However, where the goods placed under the IP procedure are

put on the market before the procedure is discharged, they

shall change their status at the time they are put on the

9.5 Status of equivalent goods



Contents

market. In exceptional cases, where the equivalent goods are

expected not to be available at the time of putting of the goods

on the market, the customs authorities may allow, at the

request of the holder of the procedure, the equivalent goods to

be available later within a reasonable period to be determined

by them.

3. In case of prior export of processed products under IP, the

equivalent goods and the processed products made there from

shall become non-Union goods with retroactive effect on their

release for the export procedure if the goods to be imported

are placed under that procedure.

In that situation, the goods to be imported shall become Union

goods at the time of their placing under IP.


223 269

Electronic system relating toStandardised exchange ofinformation

With reference to Article 16(1) of the UCC, an electronic

information and communication system as defined by the

10.



Contents

Commission and Member States in agreement with each other

shall be used for the standardised exchange of information

(hereinafter referred to as ‘INF’) pertaining to:

(a) IP EX/IM or the OP EX/IM (b) IP IM/EX or OP IM/EX if

more than one Member State is involved (c) IP IM/EX if one

Member State is involved and the responsible customs

authority as referred to in Article 101(1) of the UCC has

requested an INF

Such system shall also be used for the processing and storage

of the relevant information. If an INF is required, the

information shall be made available through this system by the

supervising customs office without delay. If a customs

declaration, re-export declaration or re-export notification

refers to an INF, the competent customs authorities shall

update the INF without delay.

In addition, the electronic information and communication

system shall be used for the standardised exchange of

information related to commercial policy measures.

The electronic INF is not due to be implemented until at least

2020.


16.1 181 271



Contents

Using customs declarations toenter and discharge CustomsSpecial Procedures

Customs declarations should be used to enter goods to a

special procedure. For example, an import declaration with the

correct IP, CPC will ‘enter’ the goods to the procedure and,

conversely, an export declaration with the correct CPC will

enter goods to the OPR.

When you complete any customs ‘declaration’ (including

import, export or transit declarations), you are making a legal

declaration that the accuracy and the content of that

declaration is correct. The ‘declarant’ is the person responsible

for any conditions applying to the special procedure and for

any debt arising from mistakes made. The declarant is most

usually the authorisation holder who will be held solely

responsible for any mistakes made or customs debt owed.

If you are completing a customs declaration (or someone is

completing it on your behalf) using a special

procedure CPC this means that you are declaring the goods to

the customs procedure and that you are also declaring you are

11.

11.1 What is a customs declaration?



Contents

aware of and agree to meet all the conditions and legal

obligations relating to that procedure as set out in the UCC and

related Delegated and Implementing Acts.

The integrated Tariff of the UK (usually referred to as the Tariff)

contains all the information you need to help you complete

customs import and export declarations.

Although the UK version is called the integrated Tariff of the

UK, the same format is used throughout the EU, so regardless

of the country in which you operate, the Tariff equivalent acts

as a comprehensive point of reference. All EU countries have

the same commodity codes and duty rates as the UK.

The UK Tariff consists of 3 volumes.

Volume 1 contains essential background information for

importers and exporters on customs procedures, contact

addresses for organisations and other government

departments such as Department for Business, Innovation and

Skills, Department of Environment, Food and Rural Affairs and

Forestry Commission. It also contains an explanation of Excise

Duty, Tariff quotas and many similar topics.

11.2 Where can I find information oncompleting customs declarations?



Contents

Volume 2 contains the 16,000 or so commodity codes set out

on a chapter-by-chapter basis. It lists duty rates and other

directions such as import licensing and preferential duty rates.

Volume 3 contains a box-by-box completion guide for import

and export declarations, the complete list of CPCs for

importing and exporting, the Country Codes for the world, lists

of UK docks and airports both alphabetically and by their Entry

Processing Unit (EPU) numbers and further general

information about importing or exporting.

Volume 2 (commodity codes) is available free on line

at Finding commodity codes for import and export duty

Where a third party/agent submits a customs declaration in the

name of the authorisation holder or on their behalf, the

authorisation holder is still liable for any customs debt that may

arise if any information on the entry is incorrect. The

authorisation holder will need to develop their own assurance

checks but we would recommend that the authorisation holder

makes sure that all instructions to third parties are made in

writing and retained in their records. Details of the customs

11.3 Using a third party to submit customsdeclarations on your behalf



Contents

declarations submitted by third parties (including

the CPC used) should be checked.

If an agent or freight forwarder is used to import or (re)export

goods it is the responsibility of the authorisation holder to make

sure they are provided with the relevant information for the

declarations.

This includes supplying them with:

the correct CPC number (bulking CPCs should not be used

for goods under a special procedure)

the correct commodity code and goods description

the correct authorisation number

if required, the details of the reference number of the

original declaration/document which brought the goods into

the procedure

The authorisation holder should also make sure the agent is

aware that they will need to supply relevant documents for

their records (for example evidence of export reports).

11.4 How do I submit customs declarationsto HMRC?



Contents

Customs import and export declarations must be submitted

electronically to the UK import and export computer system

called CHIEF.

Import declarations can currently be submitted to CHIEF by the

following methods:

Direct Trader Input (DTI) - where the information is

submitted to CHIEF electronically by any trader or his

representative/agent who holds a CHIEF authorisation

(or CHIEF ‘badge’ as it is known)

Customs Freight Simplified Procedures (CFSP) - regarding

the approval and use of CFSP for entering goods to a

special procedure

For more information on the import procedure (and its process

in the UK) see the import manual.

Export declarations can currently be submitted to CHIEF by

the following methods:

Direct communication links to CHIEF through the Government

Gateway.

(a) the internet, using the NESWEB facility

An Export Declaration WEB form has been set up by HMRC,

which can be used to submit information to CHIEF direct.



Contents

(b) Email (EDIFACT)

Traders may choose to send their declarations to CHIEF over

the internet in the form of a normal email attachment. You will

need to purchase commercial messaging software that

translates the declarations sent to and the messages received

from CHIEF.

(c) Extensible Mark-up Language (XML) messaging

XML integrates traders’ systems with CHIEF, messages are

received by CHIEF and replies sent via email to the declarant.

Traders will need to purchase commercial messaging software

to translate the messages sent to and from CHIEF.

In addition to the CHIEF badge and Government Gateway ID

access, a Government Gateway Digital Certificate is required

for the CHIEF XML route.

Indirect link to CHIEF through a Community Systems Provider

(CSP) using your own software or that provided by an

independent software company. To access CHIEF via a CSP,

traders should apply to the CSP for a badge of authorisation.

This badge has 2 parts, one to access

the CSP communications system, which gives access to the

port inventory system, and the second part to access CHIEF.



Contents

For more information on the export, procedure (and its process

in the UK) see the export manual (VAT Notice 725: the single

market).

If an error is made on a customs declaration, it may be

possible to rectify the situation by either amending the

declaration by obtaining permission from the supervising office

for it to be or invalidated and replaced with another declaration.

The type of error determines the action that must be taken. In

addition, there are specific rules and processes for import and

export declarations as they differ.

Where the amendment or invalidation will generate a

repayment of duty, a completed Form Import and Export:

Application for repayment/remission (C285) should be included

with the application.

If the application for amendment or invalidation results in a

customs debt being incurred, the supervising office should

inform the trader.

11.5 Can a customs declaration be amendedor invalidated?



Contents

If the goods have been declared in error to the

wrong CPC then the original declaration will need to be

invalidated and replaced by a new declaration. Applications for

invalidation should be made to the supervising office as soon

as the error is discovered and, at the very latest, within 3

months of the date of the original import declaration.

Applications made outside of this period, will need to be

supported by a full explanation and evidence of the exceptional

circumstances that caused the delay.

Requests for invalidation should be accompanied by copies of

the original import documentation and relevant authorisation,

revised import declarations (paper SAD C88) and other

relevant evidence to support the request. If approved you will

be responsible for ensuring the entries are keyed to CHIEF.

If the goods have been declared to the correct CPC but some

of the information contained within the declaration is incorrect

(for example, the weight, value or number of packages) it may

be possible to amend the declaration.

11.6 Invalidating and replacing importdeclarations

11.7 Amending import declarations



Contents

Requests to amend an import declaration, should be made in

writing (providing details of the proposed amendment) and

sent to the supervising office as soon as the error is

discovered. Where the amendment will generate a duty

repayment, you should include a completed form Import and

Export: application for repayment/remission (C285) with your

application. If, as a result of your application, a customs debt is

incurred, your supervising office will inform you accordingly.

Requests for amendment are not restricted to a maximum of 3

months after the submission of the original declaration (unlike

request for an invalidation of a declaration). However,

information on the reasons for the errors should be included in

the request.

If the error concerns the CPC, the original declaration may

have to be invalidated and replaced by a new declaration.

Applications for invalidation should be sent to the Supervising

Office (unless the reporting requirements set out in the

authorisation letter state otherwise). The request for

invalidation must be made before the goods have left the EU.

The Supervising Office may agree that notification is not

required each time a CPC error is made so long as these

11.8 Invalidating and replacing (re)exportdeclarations



Contents

occurrences are exceptional and the trader records are

adequately noted (and evidence retained). Special procedures

authorisation holders should have systems in place to assure

the quality of customs declarations and retain in the records

any instructions sent to agents regarding the use of CPCs.

Amendments to (re)export CPCs no longer need to be notified

to the supervising office on form Import and export:

amendment notice to export/re-export declaration for trade

statistics (C81)(any notifications are just submitted by letter

and the trader records should be noted and evidence retained

for audit purposes).

However, form C81 is still required to be completed and

submitted to the address on the form for all errors on export

declarations (including CPC errors) .These forms are required

for statistical purposes and there is no de minimis limit.

11.9 Notifying (re)export amendments fortrade statistics purposes – Form C81

11.10 Amending (re)export declarations



Contents

If an error is in regard to the description of the goods (for

example, the weight or number of packages is incorrect) it may

be possible to amend the declaration. The supervising office

may agree that amendments to (re)export CPCs do not need

to be notified each time an amendment is required. Traders

will, however, be required to notate their records and retain the

relevant documentation to be produced on audit (such as the

original customs declaration with the amendment clearly

marked).

There is no time limit restricting the application for an

amendment but the authorisation holder should make sure

there are processes in place to assure the quality of all

customs declarations submitted on their behalf. Persistent

repetition of errors of the same type may lead to the imposition

of a Customs Civil Penalty or the withdrawal of the special

procedure authorisation if the conditions of that authorisation,

including the use of the correct CPCs, are not being adhered

to.

Postal Imports and exports made by Royal Mail Group (and

other postal operators carrying mail under the Universal Postal

Union agreement) may not need a customs declaration

submitted to CHIEF. The CN22 and CN23 forms can be

11.11 Importing and exporting goods by post



Contents

regarded as an oral customs declaration so the goods may be

entered to a special procedure (or discharged from it) using

this declaration depending on the circumstances. The sections

below explain an example of the process for postal imports

and exports for a special procedure. All goods imported by

post that exceed €1000 will require a C88 declaration.


144

The sender should be asked to clearly mark the package(s)

and accompanying customs declaration (Form CN22 or CN23)

with the following:

type of special procedure eg IP, TA

special procedure authorisation no:_______

the receiving trader’s EORI number and VAT number (if

registered for VAT)

If the sender does not mark the package(s) as above, the

goods will not have been properly declared to the special

procedure and will not be eligible for relief.

11.12 Postal imports



Contents

For goods where duty is due, if the package has been correctly

marked, the trader will be sent (by the Border Force) a ‘Notice

of Arrival’ informing them of what action needs to be taken (this

may include instructions to submit a customs declaration

to CHIEF).

If the trader (or his agent) submits the declaration electronically

to CHIEF and receives Customs clearance,

the CHIEFacceptance advice should be sent to the address on

the top right hand corner of the Notice of Arrival. The goods

will then be released for delivery.

Whilst Universal Postal Union (UPU) organisations from other

countries may be allowed to set up an office of exchange in the

UK (and are entitled to carry goods under the UPU agreement

(i.e. can they use the CN22/23 forms – it should be noted that,

only Royal Mail Group (that is Royal Mail and Parcel Force)

have the authority under UK law to customs clear goods

imported and entered to special procedures without a customs

declaration to CHIEF (CN22 and CN23)). All goods carried by

other UPUhandlers such as fast parcel operators may be

entitled to some of the benefits of the UPU agreement, (eg use

of cheaper rates) but, on entry to the UK, a customs

11.13 Scope of operation of Extra TerritorialOffices of Exchange operating in the UK



Contents

declaration to CHIEF will need to be made for all goods carried

by these companies.

Where goods are (re)exported using Royal Mail Group (Royal

Mail and/or Parcel Force) and / or a postal operator authorised

and operating under the UPU agreement there is no

requirement to submit a customs export declaration to the

National Export System. The CN22 and CN23 forms are

equivalent to a customs declaration.

Please note the packages will need to be handed over the

Post Office counter (not just placed into a post box) otherwise

the full tracking information will not be available as evidence of

(re)export.

For Royal Mail Post Office deliveries, the process is as follows:

complete and affix a customs declaration (Form CN22) to

the goods outer packaging

obtain a ‘Certificate of Posting’ from the Post Office for the

goods - this is the evidence of export and should be

retained in the authorisation holders records and

(for IP/EnU) the reference information should be included

on the BoD

11.14 Postal (re) exports



Contents

For Parcel Force deliveries, the process is as follows:

complete and affix a customs declaration (Form CN23) to

the goods outer packaging

record the Parcel Force delivery reference in the records

print a copy of the Parcel Force booking and the online

delivery tracking and delivery confirmation screens (or other

evidence or reference numbers provided by Parcel Force) -

this is the evidence of export and should be retained in the

authorisation holders records and (for IP suspension/EnU)

reference information submitted with your BoD

If a company other than Royal Mail or Parcel Force is used (for

example an Express Parcel Operator) a (re)export declaration

should be submitted to CHIEF using the correct special

procedure CPC. The CN22 and CN23 cannot be used by

these companies to replace customs declarations. Failure to

use the correct CPCs will mean that the duties will become

due. Under no circumstances should Express Parcel Operator

MOU Bulking CPCs be used to (re)export the goods under a

special procedure.

11.15 (Re)exporting using postal companiesother than Royal Mail or Parcel Force



Contents

In the UK, this is a four-stage process. All stages of the re-

export process should be completed on CHIEF as validation

and processing takes place at each stage. The 4 stages of the

export process are:

electronic submission of an export declaration (with

correct CPC) prior to the shipment of the goods (to the time

limits laid down in the UCC)

electronic ‘presentation’ of the goods to customs (in the UK

this is the ‘Arrival message’ submitted to CHIEF by a person

with a ‘CHIEF Loader role’)

electronic ‘customs clearance’ or the granting of ‘Permission

to Progress’ (P2P). The P2P message is the positive

clearance by customs and is sent by CHIEF to the person

submitting the export declaration/arrival message - ‘I

confirm that the export has been cleared and the goods

may now be loaded onto the means of transport for export’

electronic ‘departure’ message which puts the export into a

final state on CHIEF - please note the ‘departure message’

is only required for direct exports

11.16 Customs export procedure process

11.17 Evidence of export (or other discharge)to support the operation of specialprocedures



Contents

When audit/assurance checks are undertaken on special

procedures, the documentation from the trader’s records will

need to be examined. It should contain proper evidence of

export in the form of the relevant CHIEF reports (or their

commercial equivalent). If an agent is used to submit

declarations, the authorisation holder should ensure that they

can provide the relevant evidence.

This will depend on the method used. Examples of documents

the authorisation holder will need to retain are as follows:

the reference numbers and/or copies of CHIEF export

declarations and NCTS Transit declarations:

for export declarations the reference number is either

the Export MRN or the CHIEF reference

number EPU/Entry No/Date

for transit declarations the Transit MRN should be used

copies of customs clearance reports (or other status

reports) issued by CHIEF for example the S8 report - Export

Movement Departure Advice and the X6 report - Export

Entry Progress Advice (which shows ‘Customs clearance’

(P2P) has been granted)

copies of the equivalent reports from the company’s (or the

company’s agent’s) commercial system connected

to CHIEF

evidence that the Transit procedure was properly

discharged



Contents

For further information on evidence of export please see

section 42 of The Export best practice guide.

It is important to retain the CHIEF reports, which include

confirmation of the CHIEF status codes:

evidence that ‘Customs clearance’ (P2P) was granted

shows on CHIEF as the ICS status 50 or 51

evidence that a ‘goods departed’ message was received

(for direct exports) shows on CHIEF as ICS status 60

evidence that indirect exports have left the EU via another

member state shows on CHIEF as ICS status 62

Reports are available to be run from CHIEF or Management

Support System (the CHIEF archive system) which shows the

customs status of declarations. Many agents/freight forwarders

use commercial software to access CHIEF, if using an agent,

the special procedures authorisation holder should check that

they are able to provide them with a commercial equivalent of

the CHIEF reports.

If you import goods to TA using the authorisation by declaration

method you will need to send evidence of export to NTAS in

11.18 Evidence for TA authorisations bydeclaration



Contents

order to discharge your liability and thus discharge the

guarantee.

Customs Debt

Rules for calculation of the amount of Import or Export Duty.

1. In order to determine the amount of import duty to be

charged on processed products in the case referred to in

Article 86(3) of the UCC, the proportion of goods placed under

the IP procedure incorporated in the processed products shall

be calculated in accordance with the quantitative scale

method, or the value scale method as appropriate, or any other

method giving similar results.

2. The quantitative scale method shall apply in the following

cases:

(a) Where only one kind of processed products is derived from

the processing operations.

12.

12.1 Calculation of the amount of import dutyon processed products obtainedunder IP



Contents

(b) Where several kinds of processed products are derived

from the processing operations and all elements of the goods

placed under the procedure are found in each of those

processed products.

3. In the case referred to in paragraph 2(a), the quantity of

goods placed under the procedure deemed to be present in

the quantity of processed products for which a customs debt is

incurred shall be proportional to the latter category of products

as a percentage of the total quantity of processed products.

4. In the case referred to in paragraph 2(b), the quantity of

goods placed under the procedure deemed to be present in

the quantity of a given processed products for which a customs

debt is incurred shall be proportional to the following:

(a) The ratio between this specific kind of processed products,

irrespective of whether a customs debt is incurred, and the

total quantity of all processed products.

(b) The ratio between the quantity of processed products for

which a customs debt is incurred and the total quantity of

processed products of the same kind.

5. In deciding whether the conditions for applying the method

referred to in paragraph two are fulfilled, losses shall not be

taken into account.



Contents

Losses means the proportion of the goods placed under the

procedure destroyed and lost during the processing operation,

in particular by evaporation, desiccation, venting as gas or

leaching.

6. The value scale method shall apply where the quantitative

scale method does not apply.

The quantity of the goods placed under the procedure deemed

to be present in the quantity of a given processed product

incurring a customs debt shall be proportional to the following:

(a) the value of this specific kind of processed product,

irrespective of whether a customs debt is incurred, as a

percentage of the total value of all the processed products.

(b) the value of the processed products for which a customs

debt is incurred, as a percentage of the total value of

processed products of that kind.

The value of each of the different processed products to be

used for applying the value scale method shall be the recent

ex-works price in the customs territory of the Union, or the

recent selling price in the customs territory of the Union of

identical or similar products, provided that these have not been

influenced by the relationship between buyer and seller.



Contents

7. Where the value cannot be determined pursuant to

paragraph 6, it shall be determined by any reasonable method.


86.3 72

1. In the case referred to in Article 86(3) of the UCC, the

amount of import duty corresponding to the customs debt on

processed products resulting from the IP procedure, shall be

determined by applying to the goods placed under that

procedure a duty exemption or a reduced rate of duty on

account of their specific use, which would have been applied to

those goods if they had been placed under the EnU procedure.

2. Paragraph 1 shall apply if an authorisation to place those

goods under the EnU procedure could have been issued and if

the conditions for the duty exemption or the reduced rate of

duty on account of their specific use would have been fulfilled

at the time of acceptance of the customs declaration of their

entry for the IP procedure.


12.2 Application of the EnU provisions toprocessed products obtained under IP



Contents

86.3 73

For the purposes of the application of Article 86(3) of the UCC,

if at the time of the acceptance of the declaration of placing of

goods under the IP procedure the import goods fulfilled the

conditions to qualify for preferential tariff treatment within tariff

quotas or ceilings, 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.


86.3 74

Where a customs debt is incurred for processed products

resulting from the OP procedure or replacement products and

where specific import duty is involved, the amount of the import

12.3 Application of the preferential tarifftreatment to goods placed under IP

12.4 Specific import duty on processedproducts resulting from OP orreplacement products



Contents

duty shall be calculated on the basis of the cost of the

processing operation undertaken outside the customs territory

of the Union, multiplied by the amount of import duty applicable

to the processed products or replacement products divided by

the customs value of the processed products or replacement

products.


86.5 75

Article 86(3) of the UCC shall apply without a request from the

declarant as referred to in Article 86(4) for the determination of

the amount of import duty corresponding to a customs debt

incurred for processed products resulting from

the IP procedure where the following conditions are fulfilled:

(a) these processed products are imported directly by or on

behalf of the relevant holder of the authorisation within a period

of one year after their re-export.

(b) where the goods placed under the IP procedure were

subject to a commercial or an agricultural policy measure or

12.5 Derogation for the calculation of theamount of import duty on processedproducts resulting from IP



Contents

an ADD, Countervailing Duty, Safeguard Duty, Retaliation Duty

or similar duty.

(c) Where no examination of the economic conditions in the

cases referred to in paragraph 3.1, took place.


86.3, 86.4 76

The customs authorities shall specify the type and quantity of

any waste or scrap resulting from the destruction in order to

determine any customs duty and other charges applicable to

them and to be used when they are placed under a customs

procedure or re-exported. Destruction of TA goods must be

exceptional and approved in advance by the supervising office.

On receipt of the consignment examine it carefully to ensure

that the number of packages or weight and types of goods

received agree with the goods described in the customs

12.6 Destruction of goods

12.7 Discrepancies in goods received



Contents

declaration. You must enter in the stock record details of the

goods actually received and check whether the quantity is

more or less than the quantity declared on the entry for the

procedure.

You must have a system in place to investigate and resolve all

discrepancies (over and under shipments) between the

declaration entering the goods to the procedure and the actual

quantity of goods received.

It is not necessary for you to report discrepancies to your

supervising office until you have investigated the matter but

you must report to your supervising office all unresolved

discrepancies (over and under shipments) that you cannot

resolve within 14 days.

In the case of a discrepancy where you do not own the goods

you must inform the depositor or the owner of the goods

immediately so that they can investigate what has happened

and provide you with a satisfactory explanation and/or

supporting evidence.

12.8 What must I do if discrepancies arefound?



Contents

Goods received in excess of the declared quantity must be

regarded as dutiable and entered to the procedure

provisionally until the matter has been resolved. Where the

over-shipment is to be declared to the procedure the original

declaration is to be amended accordingly otherwise a

declaration to free circulation, paying the appropriate duties

and charges should be made.

The authorisation holder is required to provide documentary

evidence that the goods were not received into the procedure.

The evidence is to be retained by the authorisation holder and

made available for inspection when required. If the

discrepancy cannot be resolved within 14 days you must notify

your supervising office. If it is established that the goods did

not enter the procedure the declaration must be amended

accordingly.

1. Highest VAT rate of member states involved ↩

2. The 10% duty rate as determined in accordance with Article

155(3) IA ↩

12.9 Action required for over-shipments

12.10 Action required for under-shipments



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3. Highest VAT rate of Member States involved ↩

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notice 3001: customs special procedures for the union … 3… · · 2016-11-0411/4/2016 notice...

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