End Use Procedure

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Instruction Manual

on

Customs End-Use Procedure

Date of Issue 14/03/2013

Queries: Email:[email protected]

This Manual provides a guide to the interpretation of the law governing all aspects of the End-use

Customs Procedure. This is set out in Council Regulation (EC) No. 2913/92 (the Customs Code)

and Commission Regulation (EC) No. 2454/93 (the Implementing Provisions) and this Manual

should be read in conjunction with these regulations Customs Code, Implementing Provisions.

Published by Customs Procedures Branch (Economic Procedures Section), Nenagh.

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Table of Contents

1 Introduction .....................................................................................................................................4

1.1 What is End-use? ........................................................................................................................4

1.2 How End-use works ....................................................................................................................4

1.3 What goods qualify for End-use relief? ..................................................................................4

1.4 Persons Eligible for End-use relief .............................................................................................5

1.5 Exclusions from relief .................................................................................................................5

2. Application for Authorisation .......................................................................................................52.1 Application Procedure................................................................................................................5

2.2 Region/LCD Report on New Applications. ...............................................................................6

2.3 Security ......................................................................................................................................6

2.4 Rate of Yield ...............................................................................................................................6

3 Types of Authorisations ..................................................................................................................7

3.1 National Authorisation...............................................................................................................7

3.2 Single Authorisation. .................................................................................................................7

3.3 Integrated Authorisation ............................................................................................................8

3.4 Retrospective Authorisation.......................................................................................................9

3.5 Simplified Authorisation............................................................................................................9

4. Issue of an Authorisation .............................................................................................................10

4.1 Issue of a New Authorisation...................................................................................................10

4.2 Renewal of an Authorisation....................................................................................................10

4.3 Amendment to an Authorisation..............................................................................................11

5. Entry of goods to the procedure.................................................................................................11

5.1 Declaration on SAD.................................................................................................................11

6. Obligations of Authorisation holders .........................................................................................11

6.1 Time Limits...............................................................................................................................11

6.2 Records......................................................................................................................................11

6.3 Satisfying End-use Conditions..................................................................................................12

7. Transfer of end-use goods other than aircraft parts................................................................137.1 General ......................................................................................................................................13

7.2 Simplified Transfer Procedures ...............................................................................................13

7.3 Transfer of Goods Within Ireland............................................................................................13

7.4 Transfers to or from Other Member States ...............................................................................13

7.5 Transfer of Obligations ............................................................................................................14

8. Transfer of aircraft parts.............................................................................................................14

8.1 Goods for the Maintenance and Repair of an Aircraft.............................................................14

8.2 Contents of air waybill .............................................................................................................14

8.3 Responsibilities of Airline .......................................................................................................15

8.4 Passing of End-use Obligations ...............................................................................................15

9. Goods which cannot fulfil end-use conditions ..........................................................................159.1 Approval to Export from the Community.................................................................................15

9.2 Approval to Destroy under Customs Supervision.................................................................15

9.3 Approval to Divert to Home Use ..............................................................................................16

9.4 Petroleum Products ..................................................................................................................16

9.5 Waste or Scrap ..........................................................................................................................16

9.6 Customs Duty Debt ...................................................................................................................16

10 Monitoring/Checking of Authorisations ..................................................................................16

10.1 Control Measures ....................................................................................................................16

10.2 Storage of Goods.....................................................................................................................17

10.3 Where End-use Obligations are not fulfilled. ........................................................................17

10.4 Cases of doubt or difficulty.....................................................................................................18Appendix 1 .........................................................................................................................................19

Report on End-use application........................................................................................................19

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APPENDIX 2 .....................................................................................................................................23

General conditions to be observed by persons authorised ............................................................23

to engage in an End-use Arrangement. ...........................................................................................23

Appendix 3 .........................................................................................................................................26

Notes on Completion of Form T5 ...................................................................................................26

Appendix 4 .........................................................................................................................................27

Tariff headings for weapons and military equipment on which import duties are suspended........27

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1 Introduction

1.1 What is End-use?

End-use is a Customs procedure whereby goods entered for free circulation in the European Union

(EU) may be given favourable tariff treatment at a reduced or zero rate of duty on condition they are

put to a prescribed use. This procedure is designed to facilitate trade and ease of movement ofgoods within the EU.

1.2 How End-use works

In order to obtain End-use relief, the importer must be the holder of an End-use Authorisation. The

goods must be put to a prescribed use within a certain period of time. The importer must also keep

records on the goods and their treatment. If the goods are not put to the prescribed End-use, duty

will be due.

The relief applies to customs duty only and does not extend to any anti-dumping duty, value-added

tax or excise duty that may be payable.

1.3 What goods qualify for End-use relief?

(i) Goods eligible for End-use identified by their Tariff classification.

(Provision is made under Regulations (dealing with suspension of duties in the

Tariff) to have the suspension of duty made dependent on the end use of the goods.

For example, Council Regulation (EU) No 1344/2011 of 19 December 2011

(suspending the autonomous Common Customs Tariff) makes the granting of some

suspensive rates subject to end use control while Council Regulation (EU) No

3050/95 of 22 December 1995 (temporarily suspending the autonomous Common

Customs Tariff duties on a number of products intended for the construction,

maintenance and repair of aircraft) also makes the granting of the suspensive rate

subject to End Use control).

(ii) Products intended for aircraft, ships, boats and for drilling platforms as set out in Part

I, Section II of the Combined Nomenclature.

(A listing of Tariff headings/codes for these products is given in the annual

Regulation introducing the succeeding years Tariff ( The Regulation introducing the

Tariff for 2013 is set out in Commission Implementing Regulation (EU) No927/2012 of 9 October 2012)

(iii) Weapons and military equipment certified by a Competent Authority.

Council Regulation No. 150/2003 suspends import duties on a number of military

weapons and equipment on condition that the goods are being used by or on behalf of

the military forces of a Member State for the defence of the Member State or forinternational peacekeeping or support operations. Duty is suspended for importation

of goods under this regulation subject to the application of End-use controls and the

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issue of the appropriate certificate by the competent authority, which in Ireland is the

Department of Defence. Businesses importing such goods on behalf of the

Department of Defence must be authorised for End-use and must hold the

appropriate certificate issued by that Department (or by the equivalent competent

authority in another Member State) covering the goods they wish to import.

Appendix 4 contains a list of 4-digit Tariff headings covering weapons and military

equipment on which import duties are suspended.

1.4 Persons Eligible for End-use relief

To benefit from End-use relief, a trader must be established in the EU. Persons who may qualify

include:

(i) Importers who, themselves, put the goods to the prescribed End-use; or

(ii) Importers who partly process the End-use goods and transfer these partly processed

goods to another person (or other persons) authorised to carry on the End-use process;

or

(iii) Importers of End-use goods who, themselves, do not carry out any End-use processing

but merely distribute the goods to other authorised persons who put the goods to the

prescribed End-use

1.5 Exclusions from relief

(i) Goods Not in Free Circulation

The provisions of this Manual do not apply to goods on entry to another Customs

Procedure (such as Inward Processing, Warehousing or Free Zone). However, on

discharge from another customs procedure End-use relief may be claimed.

(ii) CAP Goods

The provisions of this Manual do not apply to CAP goods subject to control provisions

derived from CAP Regulations or to intervention goods or goods removed from

intervention.

2. Application for Authorisation

(Article 292, Code Implementing Provisions)

2.1 Application Procedure.

(Article 292(2), Code Implementing Provisions)

Application forms are available on the Revenue website at www.revenue.ieunder Customs,

Businesses and Customs, Economic Procedures or can be obtained from Economic Procedures

Section, Customs Division. All applications, including those for renewal or amendment to existing

Authorisations, must be submitted in writing to that Section.

On receipt of an application Economic Procedures Section will then carry out the following steps:

(i) Check that all the necessary information to process the application has been supplied

by the trader;

(ii) Forward a copy of the application to the relevant Region/LCD with a request for a

report on the suitability of the importer to use the End-use procedure. A standardtemplate for the report is provided See Appendix 1.

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2.2 Region/LCD Report on New Applications.

On receiving a copy of the application from Economic Procedures Section, the Region/LCD office

should establish who the Control Officer will be for this applicant. The Control Officer should

establish the bona fides of the trader, examine the traders accounting procedures and, if relevant to

the particular end-use procedure, examine the applicants premises. The Control Officer should

advise the trader of their obligations under the End-use system and should establish that the trader

has a copy of the Trader Guidelines on End-use or has access to them on the Revenue website.

Where the trader is a company, a senior executive in charge should be consulted to ensure that

management are aware of their obligations. In the case of an individual importing the goods (e.g.private aircraft), the applicant should be interviewed to ensure s/he is aware of his/her obligations.

A report should then be completed including a recommendation as to whether or not the

Authorisation should be granted. Additional notes may be attached to the report if required. In

complex cases the finalisation of the report may involve an additional visit to the trader. Completed

reports should be sent to Economic Procedures Section as soon as possible and, in this regard, it

should be borne in mind that an Authorisation must generally issue within 30 days of receipt of the

application.

2.3 SecurityThe granting of an Authorisation is usually subject to the lodging of security and the signed

acceptance by the applicant of certain conditions. [Note however that where the trader is an

Authorised Economic Operator (AEO), it will be possible to consider the possibility of not requiring

security. In such a case the Control Officer should discuss with Customs Division as to whether or

not security should be sought]. Note also thatsecurity is not normally required in the case of fully

built civil aircraft. When required the security will normally take the form of a bond. (See also

security provisions relating to simplified Authorisations in paragraph 3.5). The Control Officer

should emphasise the importance of putting security in place at the first meeting. The amount

secured by the bond is referred to as the bond penalty and is determined by the Control Officer

during the course of the meeting with the importer. It is calculated on the amount of duty due on

the average stock-holding. The following is an example of a bond calculation:

Annual imports: 500,000

Turnover period: Seven months

Imports during turnover

Period taken as seven

Twelfths of annual imports: 291,667

Duty @ 9% on 291,667: 26,250

Bond penalty:- 27,000

Bond penalties should be rounded up to the nearest thousand euro and a minimum penalty of 7,000

should be applied in all cases.

While the bond is being arranged the trader must provide a cover note, which is a document issued

by an insurance company or bank securing the duty at risk on an interim basis, until the bond is

ready. There is a strict legal wording for cover notes and this is available from Economic

Procedures Section.

2.4 Rate of Yield

The rate of yield is the quantity of manufactured/processed products made from a given quantity of

imported goods. If the application covers more than one process or more than one category of

goods, the rate of yield for each processing operation and the method by which the End-use goodswill be identified in the processed goods should be given. It is important that the rate of yield is

accurate. If it is too low, the goods could be improperly diverted to an ineligible use.

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In cases where the rate of yield is not known at the time of application or where the rate may vary,

the application should be noted to the effect that production records will be used as the basis for

establishing the rate. If the rate of yield entered on the application form and Authorisation

subsequently changes, the applicant should immediately notify Revenue.

3 Types of Authorisations

3.1 National Authorisation

A national Authorisation allows the holder to avail of End-use in this State only.

3.2 Single Authorisation.


A single Authorisation may be issued which will enable the trader benefit from the End-use

provisions in more than one Member State. An application for a single Authorisation on the

standard application form is generally submitted in the Member State where the importers

main accounts are held. A company whose main accounts are held in Ireland will apply to

Revenue to have another Member State or States included in their Irish Authorisation. In the

same way a company whose accounts are held in another Member State will apply to the

Customs Authorities in the other Member State to have Ireland included in their

Authorisation.

3.2.1 Main accounts held in Ireland

All applications for single Authorisations in Ireland should be made to EconomicProcedures Section.

Economic Procedures Section will liaise with the Customs Administration in the relevant

Member State(s).

The application will be referred to the relevant Region/LCD for recommendation as will all

information received from the Member State(s) involved.

The designated Control Officer should ensure that any controls required at a local level in

any other Member State are clearly established at this stage.

The Control Officer should complete a report on the application as at para 2.2. Care should

be taken to ensure that transfer arrangements between the different traders mentioned in the

application are acceptable to both Administrations.

On receipt of a positive recommendation from the Control Officer, Economic Procedures

Section will prepare a draft Authorisation which is immediately copied to the authorities in

the Member State(s) in which processing will be carried out. This draft will include the

controls required by the Irish Administration.

Economic Procedures Section will issue the Authorisation on receipt of agreement by the

other Member State(s) or after 30 days if no objections are received.

Responsibility for control of the Authorisation rests with the Irish Administration.

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Bills of discharge or equivalent documentation and duty payments for all of the Member

States involved must be returned to the Control Officer in the Region/LCD in which the

trader is located.

Economic Procedures Section will keep in contact with the Administration(s) in the other

Member State(s) regarding amendments or other issues throughout the lifetime of the

Authorisation.

3.2.2 Main accounts held in another Member State

In the case of applications for single Authorisations in other Member States, the draft

Authorisation is forwarded by the Member State to Economic Procedures Section.

This draft is forwarded to the Region/LCD where the Irish trader is based. This draft should

be examined in a timely fashion as the Authorisation may be issued by the other Member

State if no objection is received within 30 days.

The designated Control Officer should contact the trader and arrange a meeting to examine

the premises where the procedure will be carried out, the accounting procedures used and to

explain to the trader their obligations with regard to this Authorisation.

Economic Procedures Section will liaise with the issuing Member State regarding any

controls that the Control Officer deems necessary.

On receipt of a positive recommendation from the Control Officer, Economic Procedures

Section will inform the Member State that Ireland has no objection to the issuing of the

Authorisation.

Economic Procedures Section will be kept informed by the Administration(s) in the Member

State which issued the Authorisation regarding any amendments or other issues throughout

the lifetime of the Authorisation.

Any issues that arise will be notified to the Control Officer in Ireland without delay.

3.3 Integrated Authorisation

(Code Implementing Provisions, Annex 67)

An integrated Authorisation may be issued where the trader wishes to be authorised for End-use and

another customs procedure (such as Inward Processing, Outward Processing or Customs

Warehousing). The application is made on the standard application form to Economic Procedures

Section in the normal way and the Region/LCD will be requested to confirm that the goods under

each procedure can be tracked at all times and that goods are discharged through the correct

procedure. The trader must indicate in the application what goods will be entered to each procedureand this information will be specified on the Authorisation.

Where goods are discharged from both End-use and another procedure it will be necessary (for

validation purposes within the AEP system) for Economic Procedures Section to issue a second

Authorisation number to facilitate this process.

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3.4 Retrospective Authorisation


An Authorisation will normally take effect on the date of issue or at any later date specified in the

Authorisation. However, a retrospective Authorisation may be issued in exceptional circumstances.

Such retrospective Authorisations are only possible where:

(i) A proven economic need exists;

(ii) The application is not related to attempted deception or to obvious negligence;

(iii) The applicants accounts confirm that all the requirements of the arrangements havebeen met and, if necessary, in order to avoid substitution, the goods can be identified

for the period involved and the accounts allow the arrangements to be verified; and

(iv) All the formalities necessary to regularise the situation of the goods can be carried out,

including the invalidation of the declaration.

All requests for retrospective Authorisation should be made to Economic Procedures

Section, and will be referred to the relevant Region/LCD for recommendation as at para. 2.2.

If retrospection is allowed, it will be necessary for the trader to amend the relevant SADs for

the retrospection period as the goods in question will have been imported originally with full

duty paid. The Control Officer should examine these amendments carefully as they will

create a refund situation.

Note: In practice the reduction in the customs duty payable will likely also give rise to

a refund of import Value-Added Tax.

In the case of non-VAT registered traders any such refund of import VAT is to

be allowed.

In the case of VAT registered traders the VAT re-credited by the amended

SAD should be re-debited by way of a short CI. This is necessary as VAT

registered traders claim any VAT refund due to them on their VAT 3.

3.5 Simplified Authorisation

(Article 292(3), Customs Code Implementing Provisions)

In certain cases importers may avail of a simplified Authorisation arrangement approved by

Revenue at the point of importation where goods are being imported for a particular End-use:

(i) On a one-off basis e.g. to facilitate a trader who is not a regular importer; or

(ii) Where the importation is a straightforward operation, the nature of the intended End-

use is simple and the Revenue supervision required is uncomplicated (e.g. importation

of a civil aircraft where the End-use can be verified simply by reference to a certificate

of registration in the public records).

Applications for such simplified Authorisation arrangements are made at point of import. The

SAD declaration constitutes an application for simplified end-use and must be supported byaccompanying documentation containing at least the following information:

(i) The name(s) and address (es) of the applicant, the importer and the operator;

(ii) The nature of the End-use;

(iii) The technical description of the goods, the products resulting from their End-use and

the means of identifying them;

(iv) The estimated rate of yield from the goods or the method by which that rate is to be

determined;

(v) The estimated period for assigning the goods to their End-use; and

(vi) The place where the goods are to be put to the End-use.

Where staff at the point of importation consider that particular elements of the above informationare not absolutely necessary to enable them to satisfy themselves that the goods will be put to the

intended End-use, or where any elements of the information are already contained on the SAD

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declaration, the accompanying documentation may be accepted without those particular elements

of information.

The following general conditions also apply to the issue of a simplified Authorisation:

(i) Clearance for free circulation and assigning of the goods to the prescribed End-use

must be carried out solely within Ireland, this procedure cannot be used for single

Authorisations;(ii) The applicant must use the ordinary SAD declaration procedure (as opposed to a

simplified declaration procedure);

(iii) The applicant must be solely responsible for assigning the goods to the prescribed

End-use.

Due to the risks associated with the simplified Authorisation arrangement, its use should be

restricted to situations where there is a low risk of diversion to alternative uses (because of the

nature of the goods).

Security is not normally required for the importation of civil aircraft where staff at the point of

importation consider that there is no risk. In the case of one-off importations where the traders

compliance history is not known to staff at the point of importation, they may request a bank

guarantee to cover the duties at risk, should the goods not be put to the prescribed End-use.

4. Issue of an Authorisation


4.1 Issue of a New Authorisation

When Economic Procedures Section has received all necessary reports and documentation,

an Authorisation, based on the model in Annex 67 of the Implementing Provisions, is drawn

up. Authorisations are generally valid for a period of three years from the date of receipt of

the application.

If security is required, the Control Officer must obtain a cover note (see para. 2.3) from the

trader and send it to Economic Procedures Section. Following acceptance of the cover note,

Economic Procedures Section will send the original Authorisation to the Control Officer for

delivery to the trader. The Control Officer must deliver the Authorisation to the trader by

hand. Before receiving the Authorisation, the trader must accept and sign a standard set of

conditions (see Appendix 2), which specify the traders responsibilities regarding the use ofthe Authorisation. A signed copy of the conditions must be returned to Economic

Procedures Section, while the Control Officer should retain a copy in the trader file.

In the case of newly authorised traders, when imports under End-use begin the Control

Officer should check to ensure that the tariff classifications codes, quantities and values

being declared are in accordance with the Authorisation.

4.2 Renewal of an Authorisation


Economic Procedures Section maintains a database of all current Authorisations. The Section sends

a reminder to all traders three months in advance of the expiry of their Authorisation. When an

application for renewal is received in Economic Procedures Section, it is checked for any changes

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from the previous Authorisation and if there are none a renewed Authorisation with a new number

is issued directly to the trader.

If there are any changes from the previous Authorisation, the Control Officer is requested to

examine the application and provide a recommendation as to whether or not the renewal

should be granted. In those circumstances the Control Officer will also be requested to

review the bond penalty.

4.3 Amendment to an Authorisation


All requests for amendments to current Authorisations must be submitted to Economic

Procedures Section. The Section will forward the request to the Control Officer for a

recommendation and a request to review the bond penalty.

5. Entry of goods to the procedure

5.1 Declaration on SAD

When traders are entering goods to the End-use procedure they should complete the SAD as

follows:

Enter the procedure codes 115 (other) or 140 (aircraft) in Box 36;

Enter the Authorisation number in Box 44;

Enter the invoice numbers or range of numbers in Box 44;

An invoice showing the total value and quantity of goods in the consignment must be retained by

the trader, and be readily available to the Control Officer if requested. Traders must retain copies of

the import SADs and supporting documentation for a minimum period of three calendar years after

the year in which the goods are no longer subject to End-use control by Revenue.

6. Obligations of Authorisation holders

6.1 Time Limits

An Authorisation holder must put the goods to the prescribed End-use within the time limit stated in

the End-use Authorisation. However, the specified time limits may be extended by Revenue if the

goods have not been assigned to the prescribed End-use within the time limit in question due either

to unforeseen circumstances or to exigencies inherent in the working or processing of the goods.

Any application for extension of a time limit or any case where the time limit is exceeded should be

referred to Economic Procedures Section for consideration.

6.2 Records

The holder of an Authorisation is required to keep adequate records to enable Revenue to carry out

any checks considered necessary to ensure that the goods are actually put to the prescribed End-use.

The records should show the Customs import entry (SAD) number and date. There must be an

adequate audit trail with locations, dates, values, quantities etc from receipt of goods, through

process and final disposal and including any by-products resulting from processing. The Control

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Officer should ensure that the records kept by the holder meet these requirements. These records

must be available for inspection by Revenue at all reasonable times. Revenue Officials must be

facilitated in checking the accuracy of the records as and when necessary. The records in question

must be preserved for a minimum period of three calendar years after the year in which the goods

are no longer subject to End-use control by Revenue. An End-use Authorisation holder must

submit to any other control measures deemed necessary by Revenue to verify compliance with End-

use conditions and must provide any information requested for that purpose.

6.3 Satisfying End-use Conditions

Goods are considered to have been assigned to the End-use in question when:

(i) In the case of goods which can be used only once,they have been assigned to the

prescribed End-use within the time limits laid down in the Authorisation (see section

6.1); or

(ii) In the case of goods which may be put to repeated use,two years after they are first

assigned to the prescribed End-use in accordance with the time-limits laid down; the

date of such first assignment is to be entered in the records referred to in section 6.2.

In certain cases End-use is deemed to be completed in specific circumstances:(i) Materials used by airlines for the maintenance and repair of aircraft either under the

terms of exchange agreements or for their own needs are considered to have been

assigned to that End-use at the time of their first assignment to the prescribed use.

Note:The materials in question refer to:

(a) Goods referred to in Part 1, Section II B of the Combined Nomenclature and

(b) Goods intended for use in the construction, maintenance and repair of

aircraft, covered by the autonomous Community tariff suspensions.

(ii) Vehicle parts for assembly are considered to have been assigned to End-use when

assembly of the vehicle is complete and the vehicle has left the assembly line.

(iii) Goods (referred to in note (i) immediately above) intended for certain classes ofaircraft for the purposes of their construction, maintenance, conversion or equipping

are considered to have been assigned to that End-use when the aircraft is transferred to

a person other than the holder of the Authorisation or is again made available to its

owner, e.g. following maintenance, repair or conversion.

(iv) Goods (referred to in Part 1, Section II A of the Combined Nomenclature) intended for

certain classes of vessel or for drilling or production platforms for the purposes of their

construction, repair, maintenance, conversion, fitting or equipping are considered to

have been assigned to that End-use when the vessel or drilling platform is transferred

to a person other than the holder of the Authorisation or again made available to its

owner, e.g., following maintenance, repair or conversion.

Note:The suspension only applies to goods intended for incorporation in the variouscategories of eligible vessels or platforms, for their construction, repair, maintenance

or conversion and to goods intended for fitting to or equipping them. It does not apply

to plant or tools, or to machinery or equipment for use in a shipbuilding yard or other

manufacturing premises. Consumable goods are also excluded.

(v) Goods (referred to in Part 1 , Section II A of the Combined Nomenclature) supplied

directly on board a vessel for the purposes of equipping it are considered to have been

put to the End-use at the time of such supply (see note to (iv) above).

(vi) Civil aircraft are considered to have been put to End-use when they are registered in

the public records prescribed for that purpose in an EU Member State or in a third

country. Evidence of such registration must be produced to Revenue before End-use

requirements are met.

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7. Transfer of end-use goods other than aircraft parts

(Article 296, Implementing Provisions)

7.1 General

The transfer of End-use goods may take place between different places named in an Authorisation

without Revenue formality.

In addition, goods under End-use control may be transferred from one Authorisation holder (thetransferor) to another holder of an Authorisation (the transferee). All the goods transferred must be

assigned to the prescribed End-use in accordance with the time limits specified in the Authorisation.

However, the period may be extended by Revenue in certain circumstances (see paragraph 6.1).

The transfer of goods between two Authorisation holders within Ireland may take place without any

formalities under a simplified transfer procedure using commercial documentation (see paragraph

7.3). However, where goods are being transferred between an Authorisation holder in Ireland and

an Authorisation holder in a different Member State and where a simplified transfer procedure (see

paragraph 7.4) has not been agreed by Revenue, the T5 (Transit) control procedure is to be used.

The method by which goods are to be transferred will be set out in the Authorisation.

The details required to be included on the T5 are set out at Appendix 3. The documentary flow forsuch transfers is set out in paragraph 7.4.

The obligations relating to compliance with the conditions for End-use relief is transferred from the

transferor to the transferee on the date the latter receives the goods (see also section 7.5). Suitable

records showing evidence of transfer and receipt of the goods must be retained by the trader

concerned for examination by Revenue as required.

7.2 Simplified Transfer Procedures

Where Revenue considers that the proper conduct of operations is safeguarded, they may agree that

a transfer of goods between two Authorisation holders established in two different Member Statesmay be made without using the T5 control copy i.e. using commercial documentation. Applications

for use of this Simplified Transfer Procedure are to be referred to Economic Procedures Section for

consideration.

7.3 Transfer of Goods Within Ireland

Goods subject to End-use can be transferred from one Authorisation holder to another within

Ireland without any formalities under a simplified transfer procedure using commercial

documentation. However, the responsibility lies with the transferor to check, before any items are

dispatched, that the transferee has a valid End-use Authorisation for the goods. At this point the

transferor should determine from the local Revenue Office supervising the End-use arrangements,what equivalent office deals with the transferee, so that copies of the commercial documents used

may be forwarded for information to that Office.

7.4 Transfers to or from Other Member States

As with transfers within Ireland, the responsibility lies with the transferor to ensure the transferee

holds a valid End-use Authorisation before any items are dispatched. If simplified transfer

procedures are not in place the T5 control copy must be used.

(i) The transferormust prepare one original and 2 copies of the T5 Control Copy. The

copies of the T5 must be numbered 1 to 3. Notes on the details required to be included

on the T5 are set out at Appendix 3.The documentary flow for such transfers is as follows:

Transferor - Completes original T5 and two copies and forwards them to the

Transferee.

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Transferee - Attaches related commercial documentation to original T5 and sends all copies

to the Revenue office responsible for End-use control specified in his End-use

Authorisation.

Revenue Control Office of transferee

(a) Verifies details of commercial documentation and completes Box J on the original

T5;

(b) Date stamps Box J on the original T5 and Box E on the two copies;

(c) Retains copy 2 of T5; and

(d) Forwards certified original T5 plus copy 1 to transferee.Transferee - Retains certified copy 1 T5 and forwards original T5 to transferor.

Transferor - Retains certified original T5 in records. Liability is discharged.

(ii) The transferors obligations under End-use pass to the transferee on the date of receipt

by the latter of the goods. Control of the goods is now with the transferees Control

Office. In the course of their transfer, goods consigned under this procedure are not

required to be presented at the Revenue office of departure or destination;

(iii) These arrangements apply equally to goods which, in the course of transport between

two points within the Community, cross the territory of an EFTA country and are

reconsigned from that country; and

(iv) The Customs authorities of the Member States of departure and destination are

required to carry out periodic checks to ensure adequate records are being maintainedof the transfer and receipt of goods at the premises of the transferor and the transferee

respectively. The Assistant Principal is to determine the frequency of these checks on

a risk analysis basis. The transferor and transferee are required to co-operate in this

and to provide any information requested.

7.5 Transfer of Obligations

The transferor is discharged from his/her obligations where the following conditions are fulfilled:

(i) The transferee has received the goods and has been informed by the transferor that

they are subject to End-use supervision by the National Competent Authority (in

Ireland, the Revenue Commissioners); and(ii) Control has been taken over by the transferees National Competent Authority. Unless

otherwise provided this will be when the transferee has entered the goods in his/her

records.

8. Transfer of aircraft parts

(Article 297, Implementing Provisions)

8.1 Goods for the Maintenance and Repair of an Aircraft

A simplified system applies in the case of goods for the maintenance and repair of aircraftconsigned from one Member State to another by airlines engaged in international traffic under the

terms of exchange agreements or for the airlines own needs. Form T5 need not be used in the case

of goods which qualify under this arrangement, and they need not be presented at the Revenue

office of departure or destination. In this case, the goods are required to be carried under an air

waybill or equivalent document, a copy of which should be retained in the records of both the

consigning and receiving airline and a further copy of which should be made available to both the

Revenue office of departure and destination.

8.2 Contents of air waybill

The air waybill or equivalent document must contain at least the following particulars:(i) The name of the consigning airline;

(ii) The name of the airport of departure;

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(iii) The name of the receiving airline;

(iv) The name of airport of destination;

(v) The description of the End-use materials; and

(vi) The number of articles.

The particulars may be given in coded form or by reference to an attached document.

In addition the air waybill or equivalent document must include the words END-USE written in

large block capitals.

8.3 Responsibilities of Airline

The intact End-use materials and the copies of the air waybill or equivalent document are to be

delivered to the receiving airline in the places specified by the Customs authorities in the airlines

Member State of residence. On receipt of the transferred materials the receiving airline must

immediately enter them in its records in accordance with the requirements of paragraph 6.2.

8.4 Passing of End-use Obligations

End-use obligations pass from the consigning airline to the receiving airline at the time when the

intact materials and copies of the air waybill or equivalent document are delivered to the latter.

9. Goods which cannot fulfil end-use conditions

(Articles 298/299 code implementing provisions)

If goods under End-use control cannot be put to the prescribed End-use because of their condition

or because of some other valid reason the trader may apply, to the Control Officer,

to export them from the Community

to destroy them under customs supervision or

divert them to home use.

9.1 Approval to Export from the Community

The trader must apply to the Control officer for permission to export the goods which cannot be put

to the prescribed End-use. If permission is granted the goods may then be exported. Where End-use

goods are being exported, they are considered to be non-EU goods from the time of acceptance of

the export declaration. Upon exportation no charges will apply. Copies of the conditions laid down

by the Control Officer should be forwarded to Economic Procedures Section for information.

Where agricultural End-use products are being exported, the following note is to be made on the

Single Administrative Document (in Box 44) or on any other document used in lieu thereof:ARTICLE 298 REGULATION (EEC) No 2454/93 END-USE: GOODS DESTINED FOR

EXPORTATION AGRICULTURAL REFUNDS NOT APPLICABLE.

9.2 Approval to Destroy under Customs Supervision

The trader must apply to the Control officer for permission to destroy under customs supervision

the goods which cannot be put to the prescribed End-use. If permission is granted the goods may

then be destroyed under customs supervision without the creation of a customs debt. Copies of the

conditions laid down by the Control Officer should be forwarded to Economic Procedures Section

for information.

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9.3 Approval to Divert to Home Use

The trader must apply to the Control officer for permission to divert the goods which cannot be put

to the prescribed End-use to home use. This diversion of the goods will give rise to a customs debt.

9.4 Petroleum Products

Where application is made to export or destroy petroleum products, which are stored in a mixture,

the application should not be allowed except where the whole mixture is exported or destroyed.

9.5 Waste or Scrap

Where Revenue approval is granted for the destruction of End-use goods (as described in para. 9.2),

the provisions of Article 182(5) of the Code apply viz. waste or scrap resulting from destruction

should be assigned a Revenue-approved treatment or use prescribed for non-Community goods (i.e.

the placing of the goods under a customs procedure, entry into a free zone or warehouse, re-

exportation, or abandonment to the exchequer). The waste and scrap should remain under customs

supervision until it has been assigned such Revenue-approved treatment or use.

9.6 Customs Duty DebtThe Authorisation specifies the end-use to which the goods imported may be assigned. If the

importer puts the goods to another use, other than export or destruction, a customs debt is created

and the original entry must be amended. The Control Officer is responsible for the collection of the

customs duty. The amount of customs duty paid (if any) when the goods were originally entered is

to be deducted from the Customs debt incurred. The uncollected duty must be collected and

brought to account by post entry.

10 Monitoring/Checking of Authorisations

10.1 Control MeasuresThe Control Officer's initial report is the primary element in the decision to grant an Authorisation.

The checking of the trader's imports, entries/SADs and the overall monitoring of the Authorisation

by the Control Officer is essential to the control of End-use. It is a matter for each Control Officer

to ensure consistency in relation to this checking, having regard to risk strategy rather than

resources. There are several aspects to an Authorisation, which must be monitored by the Control

Officer. These include:

Ensuring that the terms and conditions are being adhered to;

Ensuring that the quantities and values as identified in the Authorisation are not exceeded or

likely to be exceeded. This should involve monitoring of bills of discharge or equivalentdocumentation on a regular basis. If quantities or values are exceeded, this may result in

customs debts arising;

Ensuring that period of discharge is being adhered to;

Ensuring that only the goods specified on the Authorisation are declared under End-use;

Ensuring that goods can be tracked/traced through the process;

Ensuring that an authorised trader is subject to regular compliance checks having regard tothe frequency of importations . The level of detail that these compliance checks involve can

be decided by the Region/LCD but should involve at least the points above;

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Ensuring that all authorised traders are considered for audit in the normal way. The

fact that these traders are visited for compliance checks on a regular basis should not

exclude them from any audit program being undertaken by the Region/LCD. An

audit during the lifetime of the Authorisation (usually three years) is desirable,

although final decisions on which traders to audit will be driven by the level of risk

involved.

10.1.1 Petroleum Products

In the case of petroleum products qualifying for End-use treatment the Control Officer

should ensure that the Authorisation holders records are sufficient to allow for the

tracing of these goods throughout their processing.

10.1.2 Parts for Aircraft or Sea Vessels

In the case of parts destined for End-use in the repair, maintenance, etc. of aircraft or

sea vessels, the Control Officer should ensure records of their use, for example,

engineers and mechanics reports of work done, are available for Revenue inspection.

10.1.3 Land-based Operational BasesIn the case of goods listed in Part 1, Section IIA of the Combined Nomenclature,

Revenue may, at the request of the Authorisation holder, approve places known as

land-based operational bases, where goods intended for incorporation in drilling or

production platforms, benefiting from duty suspension, may be stored or subjected to

operations of any kind. Such conditions as Revenue may determine shall apply to such

approvals. Requests received for such approvals are to be forwarded to Economic

Procedures Section for consideration.

The movement of such goods whether from platform to platform, base to platform or

point of shipment to platform, and vice versa, are not subject to Revenue formalities

other than the appropriate entry in the records pertaining to such goods. This appliesto platforms whether inside or outside territorial waters. These records should be

available for inspection by Revenue.

10.2 Storage of Goods

Any application to allow the common storage of End-use goods entered under the provisions of this

Manual with goods of the same type and quality and having the same technical and physical

characteristics not so entered (non-End-use goods) may be allowed by the Control Officer provided

that he/she is satisfied that the necessity for such storage exists. In such cases putting an equivalent

quantity of the common stock to the prescribed End-use will satisfy requirements.

However, in the case of qualifying (End-use) petroleum products storage may be allowed in a

mixture with other petroleum products or with crude petroleum oils of Tariff Heading No. 2710 11

11. Mixed storage of such goods which are not of the same kind and quality and do not have the

same technical or physical characteristics may be allowed only if the whole mixture is intended to

undergo one of the treatments referred to in Additional Notes 5(n) and 6 to Chapter 27 of Part 2 of

the Combined Nomenclature.

10.3 Where End-use Obligations are not fulfilled.

It may be discovered during routine checks, when completing the annual bond review or possibly

when reporting on the application for renewal of an Authorisation, that the importer is not

complying with the End-use conditions as listed in their Authorisation. The Control Officer and

local management should decide whether or not duty should be collected on the import goods in any

such case. Own Resources Section may be consulted if it is unlikely to be possible to collect the

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duty and the issue of foregoing or writing off the duty therefore arises. The Control Officer and

local management should also decide if it is necessary to refer the case to Investigations and

Prosecutions Division where there is any suspicion of fraud. Any instances of non-compliance

should be reported to Economic Procedures Section.

10.4 Cases of doubt or difficulty

In cases of doubt or difficulty Economic Procedures Section should be contacted - Telephone Nos.

(067) 63204/63237 Fax: (067) 32373, email: [email protected]

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Appendix 1

Report on End-use application

(To be completed in accordance with Article 86 of Council Regulation 2913/92 and returned toEconomic Procedures Section)

FILE REFERENCE: ________________________________________________

Name and Address of Trader:

________________________________________________________________________

________________________________________________________________________

Registered Address:

(if different)

________________________________________________________________________

________________________________________________________________________

Company Registration No.:___________________________

TAN No: __________________________________________

VAT Registration No.: ___________________________

EORI No: __________________________________________

Is the Trader aware of the End Use Guidelines for Traders notice? _________

Date of Visit(s):______________________

(1) Is trader already under audit?_____________

If so, in what context?___________________________________________________

_____________________________________________________________________

(2) To what end-use will the goods be put and where will this take place?

_____________________________________________________________________

_____________________________________________________________________

(3) Are the accounts satisfactory?_______________

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(4) Method of Identification______________________

(5) Are you in agreement with the rate of yield as stated on the traders application

form?_______________

If not, please agree rates of yield and report accordingly.

(6) Estimated time within which the goods will be put to End-Use?_______________

(7) Does the trader have a satisfactory record in complying with Customs

requirements?____________

Does the trader have AEO status? ____________

(8) Will the company require a deferred payment arrangement?_________________

(9) What is the amount of the bond penalty recommended?_____________

Is a cover note proposed as temporary security pending execution of thebond?___________

Name of approved Guarantee Society:____________________________

If the trader has AEO status is the bond penalty to be waived? ___________

(10) What is the current address for each of the following Revenue offices?

(a) Supervising Revenue office:

______________________________________________________________

______________________________________________________________

(b) Office(s) of entry for the procedure:

______________________________________________________________

______________________________________________________________

(11)

Are there any special control arrangements envisaged?

____________________________________________________________________

____________________________________________________________________

(Please give details)

(12) At entry to or discharge from the arrangements, are the goodstransferred to or from

another holder? ____________

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If yes please tick procedure as appropriate

Without customs formalities between different places designated in the

Authorisation (Article 296 (1))__________

Transfer between two Authorisation holders established in different Member

States in accordance with Annex 63 i.e. using T5 Control copy (Article 296

(2)).__________

Transfer between two Authorisation holders established in different Member States

using a simplified procedure i.e. using Commercial documentation (Article 296

(3))______________

Transfer between two Authorisation holders established in Ireland using

commercial documentation (Article 296 (4))______________

(13) Simplified Procedures.

Entry for the Procedure:

Should the trader be authorised to enter goods for the procedure using:

(a) Incomplete SAD _______________________________________________

(b) Commercial Documents __________________________________________

Discharge from the Procedure:

Should the trader be authorised to discharge goods for the procedure using:

(a) Incomplete SAD ______________________________________________

(b) Commercial Documents ________________________________________

(14) Has the trader been approved for any other simplified procedures?

___________________________________________________________________

If so, please give details:

___________________________________________________________________

(15) Has the trader given ten-digit Tariff codes for the goods to be put to End-use?

___________

(16) Has the trader provided an undertaking allowing Revenue right of entry

to any transferees premises?__________________________________________

If not, please request undertaking.

(17) Are there any other observations relevant to this matter which have

come to light as a result of enquiries carried out? _________________________

___________________________________________________________________

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___________________________________________________________________

(18) Recommendation:

___________________________________________________________________

___________________________________________________________________

__________________________

NAME

(BLOCK CAPITALS)

__________________________

SIGNATURE REGION/LCD STAMP

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APPENDIX 2

General conditions to be observed by persons authorised

to engage in an End-use Arrangement.

1. The Authorisation is issued by the Revenue Commissioners and may be revoked for non-

compliance with Community legislation governing End-use.

2. Acceptance of these conditions does not relieve the Authorisation holder from compliance

with the law and regulations for the time being in force relating to End-use or to the

importation, transhipment, exportation, warehousing or entry for free circulation of goods

including the submission of Intrastat and/or VIES declarations.

3. The goods must be put to the prescribed end-use as indicated in the Customs & Excise Tariff

within a period of from the date of entry for customs purposes or the date of receipt

of transferred goods.

4. The Authorisation holder is responsible for ensuring that the tariff code(s) quoted on the

Authorisation are correct.

5. The Authorisation holder is agreeable to the transmission by the Revenue Commissioners of

statistical information relating to goods imported under the arrangement to the EU

Commission.

6. The Authorisation must be available in support of the customs entry or other declaration

placing the goods under the arrangement. It must also be produced at any time (if so

required) for inspection by any Officer of the Revenue Commissioners.

7. Each consignment of goods imported under End-use must be entered in the Automated

Entry Processing (AEP) System, in accordance with the AEP Trader Guide. The appropriate

procedure code must be inserted in box 36 of the SAD. The Authorisation number must be

quoted in box 44.

8. Civil Aircraft are considered to have fulfilled the requirement of End-

use when they are registered in the Public records prescribed for that purpose

9. In the case of goods imported through the parcel post, the words "Imported under End-use

arrangements" must form part of the sender's declaration affixed to the parcel.

10. Records must be kept by the holder of the Authorisation at its principal place of business in

the State showing, as regards each import consignment:

(i) the stock on hands as at the date of Authorisation;*

(ii) the serial number of the consignment;

(iii) the date of receipt of the goods;

(iv) the number and date of customs entry and where applicable the date of receipt of the

goods on transfer from another authorised user;

(v) the value of the goods;

(vi) particulars of the quantities of the goods:(a) used for the purpose for which imported

(b) accounted for as scrap or waste

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(c) transferred to another holder of end-use Authorisation.

* Required only where the importer is already importing End-use goods.

The accounts must contain adequate detail to enable each transaction to be traced and

checked against inward and outward movements of materials approved under the

arrangement.

Particulars of each consignment received must be recorded under a unique sequentialreference and include the internal materials control references allocated by the trader. This

record must include the import SAD reference for imports and other recognised references

for other receipts.

11 The Authorisation holder is responsible for ensuring that s/he complies with the provisions

for the time being in force in relation to the payment of Value Added Tax.

12. The Authorisation holder must co-operate fully with Revenue in all necessary enquiries

undertaken in relation to the customs valuation of goods imported under the arrangement.

13. All necessary assistance and co-operation must be provided to Revenue in exercising controlof the arrangements and in establishing agreement between official records and the records

of the Authorisation holder.

14. In the event of the goods being transferred to another authorised person either in Ireland or

elsewhere in the Community advance notification of the transfer must be given. Where

goods are transferred the date of transfer and the name and address of the transferee, who

must also be authorised to import or receive similar goods under End-use, should be quoted

in the notification.

15. Where the Authorisation issued by the Revenue Commissioners provides for use of a local

clearance procedure, such procedure applies only to goods held under End-use and providesstrictly for the receipt of goods/products from other Authorisation holders. It does not

provide for the receipt of other goods at the Authorisation holders premises. The trader is

obliged to notify their local Revenue Office of the receipt of goods from other Authorisation

holders and to enter such goods in their records.

16. Revenue reserves the right to vary or add to the conditions set out above.

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25

I/We . hereby certify

that the conditions (1) to (16) set out above are accepted and I/weundertake to comply with them.

Signed*: ______________________________________

Designation of Signatory:

____________________________________________

on behalf of: ___________________________________

(Name of holder of Authorisation)

Date:_____________________

*When the Authorisation is issued to an individual, the signatory

should be that individual. In the case of a limited company, the

Signatory should be the Secretary or Managing Director or General

Manager, and in the case of any other trading entity, the owner or

partner. A responsible official other than those mentioned may also

sign provided he/she is duly authorised in writing to accept liability.

In the case of a non-resident individual, limited company or other

trading entity the signatory should be the lawfully appointed

Attorney of the holder of the Authorisation, resident in the State.


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Appendix 3

Notes on Completion of Form T5

Form T5 is to be used for End-use goods that are being transferred between an Authorisation holder

in one Member State and an Authorisation holder in a different Member State.The T5 Control Copy is to be completed as follows:

(a) The transferor is to complete the T5 control copy in triplicate (one original and

two copies). The copies are to be numbered 1 to 3.

(b) The T5 control copy must include:

- In box A,(Office of departure) the address of the competent Revenue office specified in the

transferors Authorisation;

- In box 2,the name or trading name, full address and Authorisation number of the transferor;

- In box 8,the name or trading name, full address and Authorisation number of the transferee;

- In the box Important noteand in box B, the text is to be crossed out;

- In box 31 and 33,respectively, the description of the End-use goods as at the time of transfer,

including the number of items and the relevant CN Code;- In box 38,the net mass of the goods in Kgs;

- In box 103,the net quantity of the goods in words;

- In box 104,a tick in the box Other (specify) and in block capitals the following note:

END-USE: GOODS FOR WHICH THE OBLIGATIONS ARE TRANSFERRED TO THE

TRANSFEREE (REGULATION (EEC) No. 2454/93, ARTICLE 296);

- In box 106,

- The taxation elements (viz. value, rate(s) of duty etc.) of the End-use goods being imported;

and

- The registered number and date of the declaration for release for free circulation and the

name and address of the Revenue office where the declaration was made.

(c) The transferor must send the complete set of T5 control copies to the transferee;(d) The transferee will attach the original of the commercial document (showing the date

of receipt of the goods) to the set of T5 control copies and submit all documents to the

Revenue office designated in his Authorisation. He/she must also immediately notify

this Revenue office of any excess, shortfall, substitution or other irregularity;

(e) The Revenue office specified in the transferees Authorisation is required to fill in box

J, including the date of receipt by the transferee, on the original T5 after having

verified the corresponding commercial documents and is then to date and stamp Box J

on the original T5 and Box E on the two copies. The Revenue office concerned is to

retain the second copy of the T5 in its records and return the original and the first copy

to the transferee;

(f) The transferee is to retain the first T5 copy in his/her records and forward the originalto the transferor;

(g) The transferor must retain the original T5 in his/her records.

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Appendix 4

Tariff headings for weapons and military equipment on which import duties are suspended

(COUNCIL REGULATION (EC) NO. 150/2003)

2804

2825

36013602

3603

3604

3606

3701

3702

3703

3705

3707

3824

39264202

4911

5608

6116

6210

6211

6217

6305

6307

6506

7308

7311

7314

7326

7610

8413

8527

8528

85318535

8536

8539

8543

8544

8701

8703

8704

8705

8709

87108711

8716

8801

8802

8804

8805

8901

8903

8906

8907

9004

9005

9006

9008

9013

9014

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8414

8415

8418

8419

8421

84248427

8472

8479

8502

8516

8518

8521

8525

8526

9015

9020

9022

9025

9027

90309031

9302

9303

9304

9306

9307

9404

9406

End Use Procedure

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