The European

Brussels, 22 February 2010 O/REF: Note N-021-2010-EN

SPECIAL REPORT

THE MODERNISED CUSTOMS CODE - Implementing Provisions –

IMPACT FOR EUROPEAN MEAT TRADERS

Outcome of the working sessions on the MCCIPs in February 2010 & first analysis of the draft MCCIPs from Janaury 2010

EUROPEAN LIVESTOCK AND MEAT TRADING UNION / EUROPÄISCHE VIEH- UND FLEISCHHANDELSUNION

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EXECUTIVE SUMMARY There was a range of 5 Working Sessions on the Modernized Customs Code Implementing Provisions (MCCIPs) from 8th – 12th February 2010 organised by the European Commission. They dealt with a whole range of issues regarding the MCCIPs, which will be applied from 24 June 2013 at the latest. This special report sums up the main elements discussed during the workshops from a viewpoint of European Meat Trade and provides a first analysis of the legal, 360 pages of text dating from January 20101. This allows us to comment on the impact of the MCCIPs for European Meat Traders. The main distinction of the MCCIPs to the CCCIPs is the fact that for the first time, there are general & horizontal provisions, meaning that the same rules are fixed for ALL procedures rather than repeating the same (similar) steps for each different type of procedure. In addition, the MCCIPs define much clearer the concepts of high importance for Meat Traders such as what is a Customs office of arrival, departure, destination, discharge, import, entry, exit, export etc? It defines important concepts for other provisions, simplifications for Meat Traders such as: What is a Decision? An EORI number? Proven solvency? Self-assessment? Supervising customs office? It looks at the common customs tariff and tariff classification of goods, origin and value of goods. As regards AEO, the MCCIPs attribute many more tangible benefits to trade but also increase requirements both at customs compliance and security level. Reference is made throughout the text to Meat Traders having to become AEOs in order to use simplifications from 2013 onwards. The message from customs is clear: Beyond 2013 you or at least the Freight Forwarder you are working with HAS to be AEO in order to function as you do today! To make you “want” to become an AEO, the EU uses a “carrot and stick” approach, e.g. offering Meat Traders a complete guarantee waiver, but only if you become an AEO. As regards guarantees, under the MCC, new principles for guarantees management are being established of which the most relevant will abolish national provisions for reductions or waivers in return for a Community wide validity of guarantees. A guarantee shall be valid throughout the customs territory of the Community. New concepts, major simplifications are being introduced EU-wide: If you obtain an authorization for “Centralised Clearance” you can lodge or make available your customs declarations at your local office, no matter where in the EU you meat is imported from or where you export to. You can also apply for “Entry in the records”, freeing you from lodging any customs declaration at all. Instead you enter them it into your own computer system and customs can check it regularly. Finally, there is the concept of “Self-Assessment”; allowing you to “do the work” of customs for customs in return for much less dependence on customs offices (e.g. opening times, staff availability). All in all, you will be able to perform almost all the tasks which customs are currently doing for yourself, including payment of customs debts. As a result, your dependency on customs offices is much lower and you can move the goods faster. But, there is a catch, you already guessed it: To enter this dreamland, you need to be an AEO (and make use a comprehensive guarantee). Of course, one should not forget the traditional “Simplified Declarations”. They will continue to be authorized on a case-by-case basis, however, the criteria and procedure for granting the authorization will depend on you becoming – surprise – AEO!

1 Download: DRAFT MODERNISED CUSTOMS CODE IPs - TOTAL TEXT (360 pages) of January 2010

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Putting it all together, it is fair to say that the MCCIPs streamline and regroup all the recent amendments to the CCIPs in a more intelligent and logical way. The MCCIPs offer a common and horizontal approach on many issues e.g. AEO or guarantees, which make it easier to read and understand. Moreover, there are significant trade facilitation measures in the Code which can really make a different for Meat Traders if used correctly. However, in order to obtain all the benefits of the Modernised Customs Code and the simplifications, there is one thing that all Meat Traders or at least the freight forwarders they use, must do, regardless size and location need to do between here and 2013: Become AEO! This can add costs to your Meat trading business.

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TABLE OF CONTENTS TABLE OF CONTENTS...........................................................................................................4 INTRODUCTION......................................................................................................................5

Objectives of this report & Deadlines for comments ............................................................5 What document(s) were discussed? & Coordination ...........................................................5 Timetable..............................................................................................................................5 Structure of consultation with trade ......................................................................................5 Issues covered in this special report ....................................................................................5 How to read this “Special Report” and the MCCIPs .............................................................6

TITLE I: GENERAL PROVISIONS ..........................................................................................7

General observation .............................................................................................................7 Main elements of TITLE I & relevance for Meat Trade.........................................................7

° Definitions ............................................................................................................................7 ° AEO .....................................................................................................................................7 ° Right to be heard .................................................................................................................9 TITLE II: IMPORT & EXPORT DUTIES.................................................................................11 TITLE III: CUSTOMS DEBT & GUARANTEES.....................................................................12

Main elements of TITLE III & relevance for Meat Trade.....................................................14 ° Customs Debt ....................................................................................................................14 ° Guarantees ........................................................................................................................14 TITLE IV: IMPORT.................................................................................................................16 TITLE V GENERAL RULES ON CUSTOMS STATUS, PLACING GOODS UNDER A CUSTOMS PROCEDURE, VERIFICATION, RELEASE AND DISPOSAL OF GOODS …18

Customs status – of importance for Meat Traders!?! .........................................................18 Placing goods under a customs procedure ........................................................................19

TITLE VII SPECIAL PROCEDURES - (Pages 245-337)......................................................25

Transit – national simplifications disappear + Guarantees system streamlined (from Article 721-01 onwards) ................................................................................................................26 Storage (from article 731 – 01) – Customs Warehousing ..................................................27

TITLE VIII – EXIT (Pages 339 – 358) ....................................................................................30

Goods leaving the customs territory...................................................................................30

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INTRODUCTION There was a range of 5 Working Sessions on the Modernized Customs Code Implementing Provisions from 8th – 12th February 2010. It dealt with a whole range of issues regarding the MCCIPs, which will be applied from 24 June 2013 at the latest. Objectives of this report & Deadlines for comments The objective of this report is to highlight the most relevant elements for EU Meat Traders in the Implementing Provisions and to point to potential problems. The UECBV Secretariat recommends working through these issues at national organization level and provide comments to us. The first deadline set by the Commission is 5 March 2010, so the UECBV deadline to provide comments is Friday 5th March 2010 to create one consolidated version in cooperation with CELCAA. Please note that it is impossible to cover all provisions discussed in this single report. What document(s) were discussed? & Coordination

The discussion circulated around TAXUD/1717/2008 Rev 1.3 (uploaded on the internal section of the UECBV Website – document cannot be modified so click on “Read only”). The coordination is undertaken by Unit C2 of Jean-Michel Grave. These implementing provisions have 360 pages and were published in the latest version on January 6th 2010. Only TCG members (UECBV is represented through CELCAA) and Member States received this draft, it is not published on the internet. This is a living document and the work is ongoing, therefore changes will be made. The important annexes have not been provided by COM.

Timetable As for the timetable, following a trade contact group on February 26th 2010, a second round of workshops will be held from March 22nd – 30th (7 days),which will include the consolidated comments of UECBV and other traders allowing for a more stabilized body of the MCCIPs to be published in April. Beginning May: Inter-Services Consultation (ISC) until September/ October 2010, June/July: Additional elements, Annexes will be added to the draft consolidated text. October 2010: Circulation of the final draft. The different language versions will be available at the end of the year. The vote in the CCC is foreseen in March 2011. Structure of consultation with trade Trade representatives / stakeholders will be consulted through TCG (workshops, plenaries…) until the publication of the Regulation. Between September 2010 and March 2011: Consultation through TCG. Annexes will be made available to trade representatives (circulation before/ after the summer). UECBV asked for a document summarizing the main changes in the MCCIP. The EC will consider it. Issues covered in this special report In this special report, UECBV will cover the following elements: TITLE WHAT ISSUE? PAGES I General provisions 13-85 II Customs Tariff, Tariff management, Origen and Valuation 85 -123

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III Customs Debt and Guarantees 123 – 171 VI Imports V Customs Status, Customs Procedure

(centralized clearance, entry into records) 181 – 237

VII Special Procedures (Customs Status and Transit, Inward and outward processing)

245 – 337

VIII Export procedure 339 – 358 Annexes later Note: Title VI deals with Relief for free circulation and relief of import duties, Title IX deals with the Customs Code Committee and final provisions. The main outcomes are now illustrated below. Hyperlinks lead to documents which were discussed. FOR ALL COMMENTS REGARDING ARTICLES, UECBV MEMBERS ARE KINLDY REQUESTED TO FILL IN THE RELEVANT “TEMPO FORMS”. THIS IS THE WORKING METHOD OF THE COMMISSION AND NEEDS TO BE ADHEARD TO BY UECBV IN ORDER FOR THE EU COMMISSION TO TAKE OUR REASONING IN CONSIDERATION. TEMPO forms are specific for each title are available in the UECBV office. How to read this “Special Report” and the MCCIPs In this European Legislation, there are 7 degrees to distinguish from most general (1st degree) to most specific (7th degree) as illustrated below. We will only address the main tendencies here and only point to specifics where needed.

1st degree: TITLE 2nd degree: CHAPTER 3rd degree: SECTION 4th degree (possible): SUBSECTION 5th degree: ARTICLE 6th degree: PARAGRAPH 7th degree: POINT

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TITLE I: General provisions (pages 13-85) This title has three chapters:

1. Scope of customs legislation, mission of customs and definitions 2. Rights and obligations of persons with regard to customs legislation 3. Currency conversion and time limits

General observation The main distinction of the MCCIPs to the CCCIPs is the fact that for the first time, there are general provisions & horizontal provisions, meaning that the same rules are fixed for ALL procedures rather than repeating the same (similar) steps for each different type of procedure. COM wants to go away from several, similar procedures and replace it by one common procedure rather than have a similar approach repeated several times, the new approach is to have a general provision and then specialize in their relevant section. Today, we have 10+ similar but still different procedures all spelled out again and again. There is now a desire to streamline this approach and produce one general, horizontal set of rules, procedures and time lines. It’s a horizontal standard, yet all variations remain possible. If there are specific considerations to be taken into account for one procedure (e.g. simplifications for Meat Trade), this can be added at the relevant section. Main elements of TITLE I & relevance for Meat Trade Definitions Article 110-02 of Chapter 1 defines concepts of high importance for Meat Traders such as what is a Customs office of arrival, departure, destination, discharge, entry, exit, import, export etc. All customs officials in the Meat Trade companies should take a look. It also defines important concepts for other provisions, e.g. AEO Status and simplifications for Meat Traders such as: What is a Decision? An EORI number? Proven solvency? Self-assessment? Supervising customs office? AEO

Chapter 2, Section 3 of Title 1 is very important as it deals with the “Authorised economic operator”. Until now, this Section is depending on the outcome of the current discussions in the CCC GEN Section about doc TAXUD/1707/2009 Rev 2.1 (horizontal provisions). Of most relevance is the Article 123-02 as it spells out the benefits. For Meat Traders, AEO status will be very beneficial for two reasons:

a) It will be much easier to obtain customs simplifications b) A comprehensive guarantee waiver or reduced guarantee shall be granted, resulting in better cash flows for Meat Traders. c) Authorization for entry in the records in the future will be facilitated through AEO Status. d) Fewer physical and document based controls than other economic operators e) If controlled, controls can be made at the place of the Meat Traders and are carried out with priority

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Several articles must be taken into consideration when applying for AEO: Article 123-08 AEO criterion on customs and tax compliance (NEWLY INTRODUCED!), Article 123-09 AEO criterion on satisfactory system of managing commercial and transport records, Article 123-10 AEO criterion on solvency, Article 123-11 AEO criterion on practical standards of competence and professional qualifications (NEWLY INTRODUCED!), Article 123-12 AEO criterion on security and safety standards etc. COM pointed to Document TAXUD/1851/2008 Rev.2.2 dated 08.12.2009, which spells out further details. UECBV had participated in the Project Group on AEO MCCIP – at the end 2008/beginning 2009 leading to the publication of TAXUD/1851/2008 Rev.2.1 which was made available to UECBV on 16 November 2009. The Changes for AEO under the MCC General:

- already in the MCC - AEO status shall consist in only two types of authorizations: that of a 'customs simplification' AEO and that of a 'safety and security' AEO; however in practice the current system of the 3 certificates will remain as the AEOF will be issued in cases where the economic operator would like to have the two authorizations at the same time – the relevant provisions provided in the MCCIP;

- extension of the time limit for the customs authorities to take the decision to issue the

certificate or to reject the application (120+60) – on MCCIP level; - waiving of the current requirement for airline and shipping companies to have

already benefit from the simplifications related to transit (regular shipping services, simplified procedures level 1 and 2) – on MCCIP level ;

Changes related to the AEO criteria

- appropriate record of compliance with customs requirements' with the addition also of 'compliance with tax requirements' – already introduced in the MCC;

- inclusion of a new criteria – 'practical standards of competence or professional

qualifications directly related to the activity carried out' - in cases where an authorized economic operator wishes to take the 'customs simplification' authorization or both of them – already introduced in the MCC while in the MCCIP COM will only define the way this criteria will be checked – Article 123-11;

Changes related to the scope of the checks made for the different criteria

- 'the applicant has been convicted of a serious criminal offence linked to the economic activity of the applicant or is subject to bankruptcy proceedings at the time of the submission of the application' – in practice this check will remain in the MCCIP; what is still under discussion is whether it should be done at this early stage of formal checking for acceptance or it should be checked later on as part of the criteria 'record of compliance with customs and tax requirements';

- for the criteria related to 'satisfactory system of managing commercial and transport

records – COM included one additional requirement 'the accounting system shall maintain a historical record of data that enables to trace the data from the moment it enters the data file to the time it leaves' which in fact currently is in the Guidelines;

The criteria related to “security and safety standards”

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– the requirements for the business partners were strengthen; - an additional requirement for the applicant to appoint a contact person competent for

safety and security related questions was introduced; - some additional adjustments were introduced for the case where the applicant is

already a regulated agent (the conditions shall be deemed met in relation to the premises and the goods for which the status is granted)

Changes related to the benefits

- a new benefit to be introduced: Exporters who lodge an export declaration and who are holders of an AEOS or AEOF Certificate are waived from the obligation to lodge the data requirements foreseen for exit summary declarations. If the export declaration is lodged by the representative of the exporter, both the exporter and his representative shall be holders of an AEOS or AEOF Certificate;

- A slight amendment of the currently existing benefit related to the prior notification of

the AEO when the consignment has been selected for physical control namely the possibility that also the consignee and also to the carrier indicated in the entry summary declaration where he is not the person lodging the entry summary declaration, if they are holders of an AEOS or AEOF Certificate. The notice shall be made available provided that they are connected to the system.

Right to be heard A new element in the MCC is also the “Right to be heard”. This is spelled out in Section 4, decisions relating to the application of customs legislation, Subsection 1, Provisions applying to decisions taken by the customs authorities. From Article 124-1-01 onwards there is a “Right for a person to express his point of view”. Article 124-1-02 spells out the “Exceptions”. It is important for Meat Traders to read carefully the provisions provided within these article. Binding Tariff Information (BTI)

The European Community has created the Binding Tariff Information (BTI) system as a tool to assist economic operators to obtain the correct tariff classification for goods they intend to import or export. Binding Tariff Information is issued on request to economic operators by the customs authorities of the Member States. It is valid throughout the Community, regardless of the Member State which issued it. The main benefit to the holder is legal certainty with regard to tariff classification. This is important as tariff classification is the basis for determining customs duties, export refunds and the application of other related legal provisions (e.g. import/export certificates). A BTI is generally valid for 6 years. However, in certain cases (e.g. the publication of a classification regulation, a change in the interpretation of the nomenclature at international level or any other possibility laid down by the provisions for the a BTI may cease to be valid. In such circumstances, the economic operator may request the customs authorities to allow him to continue using the BTI for a transitional period (so-called "period of grace"). Such a request will be granted provided the conditions laid down in the law are met. All BTIs issued by the national customs authorities are introduced into the European Binding Tariff Information database (EBTI-database) run by the European Commission.

BTI is introduced in the Modernised Customs Code in Art.20. What’s new under the MCCIP?

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- Legal status of a BTI decision: BTI decision is binding on the holder - Period of validity – 3 years - Time limit for taking a BTI decision – without delay, at the latest within 4 months, can

be extended - MS shall refuse BTI application

o to eliminate BTI shopping o to prevent requesting BTI without any intended use

What can be implemented for BTI, in accordance with Article 20(7),(8) and (9)

- application procedure - issuing procedure - when BTI decisions take effect - when BTI decisions cease to be valid

– period of extended use – request MS to revoke BTI decisions

Article 124-3-06 – Inconsistencies in BTI decisions

- bilateral contacts between MS (max. 3 months) - Customs Code Committee (Tariff and Statistical Nomenclature Section) - no new BTI issued for goods under consideration - ensure uniform application of the customs nomenclature as quickly as possible (max.

6 months) - revoke inconsistent BTI decisions - issue new BTI decisions

Article 124-3-07 – Legal effect of decisions

- BTI may be invoked only by the holder - obligation to declare BTI on customs declaration - BTI to be issued only in conformity with provisions in place (limitative list) - BTI cannot be issued with retroactive effect

Article 124-3-08 – Period of extended use

- determination of cases, duration and conditions - holder must lodge request, indicate quantities and provide supporting documents - assessment by customs; grant or refuse - customs manage the quantities cleared under cover of a period of extended use

Next steps

- Finalisation of the MCCIP (body + annexes) - Finalisation of the user requirements (update of IT systems) - Updating of administrative guidelines - Monitoring of the application

FOR DOWNLOAD Power Point Presentation by European Commission Power Point Presentation Tariff classification and BTI TEMPO Review form

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TITLE II: Factors on the basis of which import or export duties and other measures in respect of trade in goods are applied (pages 86-123) This title has 3 chapters of high importance for Meat Traders: 1. Common customs tariff and tariff classification of goods ° Part I : Management of tariff quotas designed to be used following the chronological order

of dates of acceptance of customs declarations ° Part II: Community Surveillance of goods 2. Origin of goods ° Section 1: Non-preferential origin

- Rules of origin - Proof of origin - Administrative cooperation

° Section 2 : Preferential origin

Procedures to facilitate the issue of proofs of origin and certain approved exporter authorisations

3. Value of goods for customs purposes Article 210-01 of Chapter 1 on spells out the “General rules on the management of tariff quotas”. Paragraph 4 states that Member states will collect data automatically from the Customs and will transmit it the same way to the Commission. Par. 6 states that the communication to the Commission will be done in an electronic form. Par. 10: further explains the management of quotas, in accordance to the chronological order of the dates of acceptance of the customs declarations. It states that “Where a new tariff quota is opened, drawings shall not be granted by the Commission before the 11th working day following the date of publication of the provision which created that tariff quota. Subject to Article 210-02(2) [Current IP provision: Article 308b (2)], the first allocation on a new tariff quota shall take into account all unanswered requests which relate to declarations for release for free circulation accepted since the first day of the validity period of the tariff quota and which have been communicated to the Commission. Priority shall be established in accordance with the chronological order of the dates of acceptance of the customs declarations”. The allocation of TRQs – changes: - Par. 2: introduces the concept of “working” day, in order to take into account the national holidays in different Member States. Only two allocations will be allowed between Christmas and New Year, which will restart in the new year on the 4th working day. The critical status of TRQs is treated under art 33, par. 4 and 5 of the MCC and detailed under art. 308, c of the MCCIP. Other general rules (art 33, par. 1 and 4 of the MCC and art 308 (d) of the IP) clarify the concept of surveillance of goods (information storage in order to fight fraud, market analysis

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and trade defence measures). The data shall be treated as restricted, in the sense that the data will be compiled when appearing in any reports destined to Member States. FOR DOWNLOAD Power Point Presentation Customs Tariff TEMPO Review form Origin of goods Origin is the "economic" nationality of goods in international trade. There are two kinds, non-preferential and preferential. Non-preferential origin confers an "economic" nationality on goods. It is used for determining the origin of products subject to all kinds of commercial policy measures (such as anti-dumping measures, quantitative restrictions) or tariff quotas. It is also used for statistical purposes. Other provisions, such as those related to public tenders or origin marking, are also linked with the non-preferential origin of the products. In addition, the EU's export refunds in the framework of the Common Agricultural Policy are often based on non-preferential origin. Articles 36-38 of the Modernised Customs Code (Regulation No 450/2008) Under the MCC, the Definition “wholly obtained goods” moved from the Customs Code (Art.23) to the IPs. New proposal under the MCC include:

- Member States issue certificates of origin: – in accordance with EU conditions; – in accordance with the conditions prescribed by the third country concerned

- Extension of the validity period of the certificates for agricultural products subject to

special arrangements from 10 to 12 months – Inclusion of product – specific origin rules for all products – Based on result to date of Harmonisation Work Program – Creating legal certainty in view of recent jurisprudence of the Court of Justice of the

EU Preferential Origen Preferential origin confers certain benefits on goods traded between particular countries, namely entry at a reduced or zero rate of duty. In either case, an important element in determining the origin of goods is their tariff classification. Goods in trade are identified in the Community by a code number in the Combined Nomenclature (CN) and before trying to determine their origin it is essential that their CN code has been identified. Article 39 of the Modernised Customs Code (Regulation No 450/2008)

New proposals under the Modernsied Customs Code

Supplier’s declaration: - Information concerning the status of products with regard to preferential rules of

origin: used by exporter to facilitate the issue of proofs of origin where he has no direct access to the appropriate records/documents

- Extension of the validity period of Long term supplier’s declaration from 1 year to max 3 years/or to the validity period of the contract

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The Reform of preferential rules of origin

- First concrete application is rules of origin for the EU’s generalised system of preferences (GSP)

- First stage of entry into force of the reformed rules envisaged 1 January 2011, thus - The primary target is amending IPs in force (Reg. (EEC) No. 2454/93)

Binding Origin Information (BOI) The Binding Origin Information (BOI) are decisions by the competent authorities, which are binding on the customs authorities in all Member States in respect of goods imported or exported after their issue, provided the goods and the circumstances determining the acquisition of origin are identical in every respect to what is described in the BOI. They are normally valid for three years from the date of issue. It is dealt in the Draft Modernised Customs Code Implementing provisions by Art. 124-3-01 to 124-3-08 of Title 1.

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TITLE III: Customs Debt & Guarantees (pages 121-173) This title follows the structure of the MCC and has 4 chapters: 1. Incurrence of a customs debt 2. Guarantee for a potential or existing customs debt 3. Recovery and payment of duty and repayment and remission of the amount of import or export duty 4. Extinguishment Main elements of TITLE III & relevance for Meat Trade Customs Debt Chapter 1, Section 3 “Provisions common to customs debts incurred on importation and exportation” creates a Subsection 1 (4th degree) spelling out the “Rules for calculation of the amount of import or export duty”. Articles 313-1-01 until 313-1-03 deals with SPECIAL PROCEDURES - spell out the rules for calculation of the amount of duty when goods placed under some special procedures (like inward & out ward processing). In Subsection 2, Articles 313-2-01 until 313-2-04 deals with TRANSIT and spells out the rules for determination of the place where the customs debt is incurred (including time limits). In Chapter 3, the following articles are important:

– Articles 331-01/331-08: rules on determination / notification of the customs debt.

– Articles 332-01/332-03 point to the rules on payment of the amount of duty.

– Articles 333-01/333-28 are about streamlined rules and procedures allowing debtors to benefit from repayment/remission of duties in specific situations. The main provision of Chapter 4 is IP for Article 86(1)(h) MCC: extinguishment of the customs debt in case of failure with no significant effect

Guarantees Chapter 2 deals with the “Guarantee for a potential or existing customs debt”, Section 1 establishes the “General provisions”. It is interesting to note Article 321-02 which spells out “Cases where no guarantee is to be required”. Also rules for Optional guarantee (Article 321-03) and acceptable “other forms of guarantee” Article 321-04 maybe interesting for Meat Traders. Of interest might also be Article 322-01, spelling out the “Conditions for being granted a comprehensive guarantee” which may be used up to a “reference amount”. Complete guarantee waiver for “Meat Traders” if you are an AEO ! Certainly of greatest interest for Meat Traders could be Article 322-04 (page 133) spelling out the “Reduction of the level of the comprehensive guarantee and guarantee waiver”. Here a guarantee waiver may be granted where the person required to provide a guarantee demonstrates that he fulfils the requirements of the AEO. If not all but some of the conditions arte met, you can obtain a guarantee reduction of 30 %

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Section 3 of Chapter 2 deals with Specific provisions for goods placed under the community transit2 (Addressing individual and comprehensive guarantees as well as the release of the guarantees) and TIR3 procedure. In Chapter 3, the recovery and payment of duty and repayment and remission of the amount of import and export duty is spelled out. Section 2 is of interest as it deals with the “payment of the amount of import or export duty”, Article 332-01 “Simplified declarations and deferred payment” needs to be considered. Also Section 3 could be of interest as it addresses the “Repayment and remission of the amount of import or export duty”. Under the MCC, new principles for guarantees management are being established: PRINCIPLE 1: No national provisions for reductions or waivers will be granted anymore. In the interest of equal treatment of all operators in the EU reduction and waiver follow exclusively community legislation (however there are some cases of optional guarantee). PRINCIPLE 2: Community wide validity of guarantees A guarantee shall be valid throughout the customs territory of the Community. PRINCIPLE 3: Guarantees for other charges than customs duties Art. 56(2) MCC The guarantee required may also cover other charges as provided for under other relevant provisions in force. The MCCIPs provide cases where customs may require a guarantee covering only the amount of duty. PRINCIPLE 4: AEOs will benefit from a waiver or reduction of guarantees Conditions for being authorized to use a comprehensive guarantee and to get a reduction or waiver are linked to the conditions to become AEO-C. For the authorization to provide a comprehensive guarantee experiences gained in the Community sector are used, but with fewer levels of reduction and without distinction between types of goods concerned. Goods such as tobacco or alcohol are therefore not excluded from a guarantee waiver. PRINCIPLE 5: Computerized guarantees Data processing technique will be used for the exchange and storage of data regarding guarantees. Taking into account that guarantees shall be valid in the whole territory of the Community there is a need for communication between different MS if a procedure shall start or end in another MS than the one where the guarantee was provided. Still under discussion The provisions still under discussion concern Art. 321-04 Exception of forms of guarantees, Art. 322-02 Monitoring of reference amount for special procedures and Art. 322.04 Reduction of level of guarantees

2 This procedure is used for customs transit operations between the EU Member States and is in general applicable to the movement of non-Community goods for which customs duties and other charges at import are at stake, and of Community goods, which, between their point of departure and point of destination in the EU, have to pass through the territory of a third country. 3 TIR = Transports Internationaux Routiers. The TIR procedure enables goods to move under Customs control across international borders without the payment of the duties and taxes that would normally be due at importation (or exportation). A condition of the TIR procedure is that the movement of the goods must include transport by road.

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TITLE IV: Goods brought INTO the Customs Territory of the Community This title has only 2 chapters:

1. Entry summary declaration 2. Arrival of goods

Entry summary declaration As you already know – the pre-arrival notification will become mandatory under the Modernized Customs Code. This can take the form of the entry summary declaration.

- The entry summary declaration is the act whereby a person informs the customs authorities that goods are to be brought into the customs territory of the Community.

- Goods brought into the customs territory of the Community shall be covered by an

entry summary declaration, with the exception of means of transport temporarily imported and means of transport and the goods carried thereon only passing through the territorial waters or the airspace of the customs territory of the Community without a stop within that territory.

Customs authorities may accept, instead of an entry summary declaration (ENS),

– the lodging of a notification and access to the ENS data in the economic operator’s computer system

– the lodging of a customs declaration containing the particulars of an ENS The draft MCCIP regulate, in particular

– the customs office where the ENS shall be lodged, – the content of the ENS (in an Annex), – the exceptions from the general principle that all declarations

shall be lodged using an electronic data-processing technique,

– the person who is responsible for lodging an ENS – the deadlines for lodging an ENS, – the cases in which an ENS is not required, and – the period for which an ENS is valid.

No major changes to the situation valid on 1 January 2010 are anticipated. Arrival of goods Customs Supervision:

– Goods brought into the customs territory of the Community are, from the time of their entry, subject to customs supervision and may be subject to customs controls; they remain under such supervision for as long as is necessary

– either to determine their customs status as Community goods, – or until their customs status of non-Community goods is changed or they are re-

exported or destroyed. Conveyance to the appropriate place:

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– The person who brings goods into the customs territory of the Community shall convey them without delay, by the route specified by the customs authorities and in accordance with their instructions to the customs office designated by the customs authorities or to any other place designated or approved by those authorities.

– The draft MCCIP complement these provisions with the notification of arrival of the

means of transport, and the diversion request for cases in which the means of transport arrives at different customs office of entry than that originally foreseen in the ENS

– No major changes to the situation valid on 1 January 2010 are anticipated.

TITLE IV IMPORT Power Point Presentation by European Commission TEMPO Review form

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TITLE V GENERAL RULES ON CUSTOMS STATUS, PLACING GOODS UNDER A CUSTOMS PROCEDURE, VERIFICATION, RELEASE AND DISPOSAL OF GOODS (Pages 181-237) This title spells out, once the goods arrived in the EU, what is to happen with them. What status should they have? What procedure to follow? How to verify and release? It is a crucial title for Meat Traders as all the simplifications of the present and the future are spelled out in here. This title merits a closer look. This title has 4 chapters : ° Customs status of goods ° Placing goods under a customs procedure ° Verification and release of goods ° Disposal of goods We shall follow mainly chapter 1 and chapter 2. Customs status – of importance for Meat Traders!?! Customs Status determines if a good is an EU good or a non-EU good. This can have significant effects on the requirement of Meat Traders to be viable for taxes of all sorts. Simplified, the structure of the Chapter is as follows:

– General provisions – Regular shipping service – Proof of Community status

o General provisions o Proof of Community status of goods provided by an authorised consignor

The main changes arising from the Modernized Customs Code:

– The basic principles for the presumption4 and loss of the customs status of Community goods have been transferred to the MCC from the CCIP. The detailed rules will continue to be laid down in the MCCIPs.

– The main change is the introduction of Article 101 MCC listing all cases (external

transit procedure, a storage procedure, the temporary admission procedure or the inward-processing procedure) where goods will become non-Community goods.

– Furthermore, it should be noted that Article 55 MCC introduces the requirement that

all communications with customs must be electronic. This will also apply to the proof of Community status.

Regular shipping service

– Regular shipping service: new amendment to enter into force on 1 January 2011;

4 Goods brought into the customs territory of the Community shall be deemed to be Community goods unless it is established that they do not have Community status. 5 All exchanges of data, accompanying documents, decisions and notifications between customs authorities and between economic operators and customs authorities required under the customs legislation, and the storage of such data as required under the customs legislation, shall be made using electronic data processing techniques.

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– Authorisation procedure and vessel assignment will use an electronic information and communication system;

– Carry over into the Implementing provisions of the MCC Proof of Community status

– Article 513-02 spells out the means by which proof that the goods have Community status.

– Article 513-12 in Subsection 2 “Proof of Community status of goods provided by an authorised consignor” looks at the requirements for the “Authorised consignor”.

Placing goods under a customs procedure This Chapter is of immense importance for Meat Traders as is spells out the rules for the future concepts of centralized clearance, entry into records and simplifications of all sorts. Simplified, the structure of the Chapter is as follows:

– General provisions – Competent customs offices – Centralised clearance – Entry into the records – Standard customs declarations

o General provisions and requirements o Supporting documents o Paper-based customs declarations

– Simplified declarations – Provisions applying to all customs declarations – Other simplifications

Main changes under the MCC:

– Temporary storage and free zones (current control type I) are a customs procedure. – Centralised clearance6 is being introduced. This procedure is already possible under

the term 'single authorisation for the simplified declaration or the local clearance procedure'.

– Electronic declarations will be mandatory – Applications for authorizations involving two MS may no longer be rejected with the

argument that the administrative charge is disproportionate due to the lack of an electronic system (Art. 253h(5) CCIP).

6 It authorizes a Trader to make the customs declaration at the customs office responsible for the place where he is established for goods which are presented to customs at another customs office. The customs office at which the customs declaration is lodged or made available carries out the formalities for the verification of the declaration, the recovery of the amount of import or export duty corresponding to any customs debt and for granting release of the goods. The customs office at which the goods are presented, carries out any examination justifiably requested by the customs office at which the customs declaration is lodged or made available and allow the release of the goods for the procedure concerned. Centralised Clearance

is possible where two MS are involved (Art. 201 CCIP). It is also possible within a single MS can also be used for standard customs declarations, If the simplified declaration is used, it has to be lodged at the same place as the

supplementary declaration (which is already the case today for local clearance),

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NEW CONCEPT: Centralised Clearance (Article 106 MCC, Article 521-2-01 MCCIP) “Customs authorities may authorise a person to lodge, or make available, at the customs office responsible for the place where he is established a customs declaration for goods which are presented to customs at another customs office. In such cases, the customs debt shall be deemed to be incurred at the customs office at which the customs declaration is lodged or made available”.

– AEOC or AEOF certificate to use it – May be authorised for:

o release for free circulation, o end-use, o export o re-export, in cases where the provisions concerning the lodging of a customs

declaration are applicable o outward processing, o inward processing, o customs warehousing o temporary admission

NEW CONCEPT: Entry in the records (§ 107 MCC – Article 521-3-01) – be AEO and use a comprehensive guarantee to use it! “The customs declaration shall be lodged using an electronic data-processing technique. The customs authorities may allow the customs declaration to take the form of an entry in the declarant’s records, provided that the customs authorities have access to those data in the declarant’s electronic system and that the requirements for any necessary exchange of such data between customs offices are met”. Entry in the declarant's records in one possible way of lodging a standard (or simplified) customs declaration. This requires that:

– there is a prior authorisation for the use of this facilitation, being AEO! – the customs authorities have access to the customs declarationdata in the declarant’s

electronic system, and – the requirements for any necessary exchange of the customs – declaration data between customs offices (e.g. customs offices of export and exit) are

met.

Entry in the declarant's records, if authorised, means that no acceptance of the customs declaration is necessary. Furthermore, the obligation of presenting the goods may be waived (Art. 112(1) (2nd subparagraph MCC). • What is new:

– Today the local clearance procedure cannot be used for standard declarations (except for export, Art. 285(2) CCIP).

– The current local clearance procedure may also be used for paperbased declarations (Art. 253a CCIP).

• The draft MCCIP regulate:

– the procedure for granting the authorization (application – particulars and content of the authorisation in an annex), – the criteria for granting the authorization (they will be based on the AEO criteria for

customs simplification),

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– the customs procedures for which entry in the declarant's records may not be authorised,

– the cases in which entry in the declarant's records may not be used, – the obligations of the authorisation holder (e.g. presentation of the goods, periodic

recapitulative declaration), – facilitations (presentation waiver, release of the goods by entry in the records) – Conditional on the provision of a comprehensive guarantee in accordance with Article

62 of the Code (“Comprehensive guarantee7”) insofar as import or export duties and other charges are at stake.

Standard customs declarations As for all exchanges of data and accompanying documents, standard customs declaration will be made using an electronic-data processing technique. What is new:

– A customs declaration for which one or several supporting documents are missing is still called a standard customs declaration (today: incomplete or simplified customs declaration).

– Today only customs declarations for export, re-export, outward processing and transit must be made electronically under EU law.

The draft MCCIPs regulate:

– the data requirements (in an annex), – the supporting documents; such documents shall be referred to in the customs

declaration and kept on file by the declarant, – the non-availability of the supporting documents and the time limit for the

communication of the availability of such documents, – the exceptional situations in which a paper-based customs declaration may be

lodged Especially, Article 522-3-01, paragraph 1 (c) is of relevance for European Meat Traders as it allows for customs authorities to accept a paper-based customs declaration when specific provisions of the customs legislation provide for the use of paper-based customs declarations. This is the case for Meat Trade under simplifications in some EU countries. Simplified declarations (Article 523-01onwards) Simplified declarations are customs declarations in which certain particulars are missing (in addition, one or several supporting documents may be missing); they are normally followed by a periodic declaration containing all the required particulars (and any missing supporting documents; insofar a reference to them may suffice). They are explained from Article 523-01 onwards. Meat Traders make great use of them. Simplified declarations may be authorized on a case-by-case basis for an individual customs declaration (the acceptance of which is equivalent to granting the authorization), or for the

7 Article 56 (5) MCC Comprehensive guarantee = At the request of the person the customs authorities may, in accordance with authorise the provision of a comprehensive guarantee to cover the amount of import or export duty corresponding to the customs debt in respect of two or more operations, declarations or customs procedures.

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systematic use of simplified customs declarations in which case a prior authorisation is required. What is new:

– Under the current rules, the term 'incomplete declaration' is used for case by case authorisations; furthermore, this term (which will no longer be used) covers also customs declarations containing all the required particulars if one or several documents are missing.

– Under the current rules, the term 'simplified declaration' is used only for cases in

which the authorisation concerns the systematic use of simplified and supplementary declarations; furthermore, this term covers today also customs declarations containing all the required particulars if one or several documents are missing.

– As today, it is however intended to make the criteria for case by case authorisations

less demanding than those for the systematic use of simplified customs declarations. The draft MCCIPs regulate:

– the criteria and procedure for granting the authorisation (you have to become an AEO to use it),

– the harmonisation of simplified declarations (in an annex), – the possibility that the requirement of a supplementary declaration is waived in the

authorisation, and the guarantee. Provisions applying to all customs declarations (from Article 523-01)

– Any person able to present the goods and to submit the required documents can lodge a customs declaration.

– In cases where an authorisation is required (e.g. systematic simplified declarations, inward processing) the declaration must be lodged by the authorisation holder or on his behalf.

– Establishment in the customs territory of the Community is a further requirement; the exceptions being declarations for transit, for temporary admission, made occasionally.

– Customs declarations fulfilling the formal requirements are accepted provided the goods have been presented or are available for controls. In case of entry in the declarant's records the requirement of presentation may be waived.

– Customs declarations may be amended or invalidated under certain conditions. The draft MCCIP regulate:

– the lodgment of a customs declaration prior to the presentation of the goods; – a further derogation from the requirement to be established in the EU customs

territory for adjacent border customs offices; and – the amendment and invalidation of a customs declaration following the release of the

goods. What is new:

– A deadline is introduced for the prior lodgment of customs declarations in order to facilitate the reconciliation between the ENS and the subsequent customs declaration (which may concern temporary storage).

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– The MCCIP provision for adjacent border customs offices replaces the empowerment to apply bilateral agreements (Art. 64(3) CC).

Other Simplifications Self-assessment (Article 525-2-01) An economic operator may be authorised to carry out certain customs formalities which should in principle be carried out by the customs authorities, including the self-assessment of import and export duties, and to perform certain controls normally carried out by the customs authorities. What is new:

– There is no corresponding provision in the current customs rules. – To use it you have to be an AEO – However, the following current provisions are in line with this concept: Art. 221(2) CC:

indication of the amount of duty payable in the customs declaration, - Art. 290b CCIP: authorised weigher, - Art. 317-336 CCIP: proof of Community status, - Art. 386 CCIP: use of special seals, - Art. 389-408 CCIP: authorised consignor/consignee, - Art. 445 and 448 CCIP: use of manifest data, - Art. 521 CCIP: bill of discharge, - Art. 582(2) CCIP: consumption and distribution at an event as discharge of the

procedure, and - Art. 912g CCIP: issuing a T5 control copy.

The draft MCCIP regulates the following:

– the situations in which this simplification can be used, and notably – the determination of the amount of import or export duty payable; – establishing proof of Community status of goods; – formalities and controls related to the storing, moving and processing goods; – confirming the exit of goods from the customs territory of the Community; – ensuring compliance with prohibitions and restrictions, as specified in the

authorisation; – verifying and providing information to other agencies than customs; – the customs procedures for which self assessment may be authorised; – the criteria and procedure for granting the authorisation (the AE customs

simplification criteria will be used); – the particulars to be entered in the records (in an annex); – the accounting and payment of the customs debt and the provision of a

guarantees – the combination of self assessment with centralised clearance.

An authorisation for self-assessment may include the following formalities and controls:

(a) determination of the amount of import or export duty payable; (b) establishing proof of Community status of goods; (c) formalities and controls related to storing, moving and processing goods; (d) confirming the exit of goods from the customs territory of the Community; (e) ensuring compliance with prohibitions and restrictions, as specified in the authorisation; (f) verifying and providing information to other agencies.

An authorisation for self-assessment may cover declarations for the following:

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(a) release for free circulation; (b) customs warehousing; (c) temporary admission; (d) end-use; (e) inward processing; (f) outward processing; (g) export; (h) re-export in cases where the provisions concerning the lodging of a customs declaration are applicable. In the cases referred to under points (g) and (h) the authorisation holder shall make available to the customs office of exit the information referred to in [ex-Annex 30A, Table 1-5].

In other words: MEAT TRADERS can make full use of self-assessment provided they become AEO! Major simplification for Meat Traders: Combine Entry into Records with Self-Assessment! There are special provisions if you wish to combine the simplifications of ENTRY INTO RECORDS with SELF-ASSESSMENT as spelled out in Article 525-2-03 “Entry in the records and access to the system under self assessment”. Here the entry in the business records shall have has the same legal force as acceptance of the customs declaration. All information must be given to customs at the latest on the 15th day of the following month. Self-Assessment & Customs Debt If the Meat Trader uses Self-Assessment, you must account for and pay import and export duties as well as other charges by the 15th day of the of the month following the calendar month in which the customs debt was incurred. The customs debt will become due at the time goods are entered in the business records for the procedure concerned and at the place you have your offices. Self-Assessment & Customs Debt under Centralised Clearance If on top of this you use “centralised clearance”, then you must identify the customs debt and other charges incurred under centralised clearance for transactions involving other Member State, indicating the Member State concerned as well as the individual amounts related to import of goods released in that Member State. In this case, you must make available to the supervising customs office all information related to the customs debt and other charges incurred under centralised clearance for transactions involving other Member States on the 15th day of the following month.

TITLE V Centralised Clearance Power Point Presentation by European Commission TEMPO Review form

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TITLE VII SPECIAL PROCEDURES - (Pages 245-337) Mrs. Maria Kimetyoya & Mr. Matthias Reinmann from the DG TAXUD Unit “Customs Procedures” presented the legal situation / framework for special procedures under the MCC. This title is certainly on of the longest. They went to explain what has been changed compared MCCIP provisions to the current provisions which result out Title 7 of the MCC which defines special procedures. The empowering article in the MCC is Article 143. Special Procedures cover principally 4 issues: • Transit

– External transit – Internal transit

• Storage – Temporary storage – Customs warehousing – Free zones

• Specific use – Temporary admission – End-use

• Processing – Inward processing – Outward processing

UECBV and Meat Traders are largely concerned all four issues, especially processing. Given this importance, it is necessary to break it down further, the importance chapters are structured as follows: General Provisions Overall, the issues here address:

– Definitions – How an application for authorisation can be made – Place for submitting an application and main accounts – Information given in the application – Authorisation which involves more than one Member State – consultation procedure – Simplifications concerning an authorisation which involves more than one Member

State. – Economic conditions – Granting an authorization – Periods within which the applicant has to be informed – Period of validity of an authorization – Suspension, revocation, amendment and review of an authorization – Authorisation with retroactive effect – Records – Discharge of a procedure – Period for discharge – Bill of discharge – Movement of goods – Usual forms of handling – Equivalent goods – Customs declaration lodged at another customs office – Supervising customs office – Animals under a special procedure

o Commercial policy measures

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Transit – national simplifications disappear + Guarantees system streamlined (from Article 721-01 onwards) The structure of the IPPs is as follows:

– External and internal transit

General provisions for the transport under the TIR, ATA or form

302 procedure

– Community Transit

General provisions Use of the Community transit procedure for Community goods Declarations and means of transport Formalities at the customs office of departure Formalities en route Formalities at the customs office of destination Enquiry procedure General provisions concerning simplifications Authorised consignor Authorised consignee Use of seals of a special type Simplified transit declaration

General changes arising from of the Modernized Customs Code: - Introduction of a clearer distinction between external or internal transit, on the one hand,

and the provisions concerning Community transit, on the other (Articles 144-147 MCC); - Guarantee provisions moves to general part (Articles 56-65 MCC); - National, bilateral or multilateral simplifications disappear: simplifications will apply to the

customs territory as a whole. Community transit procedure – some conceptual changes: - Internal Community transit procedure for the control of VAT (Directive 2006/112/EC) :

simplification to be decided; - The list of goods involving a higher risk of fraud disappears and replaced by

computerised monitoring (but the use of the comprehensive guarantee can be prohibited temporarily in case of a sudden increase in fraud);

- The guarantee will also cover goods that are on the means of transport performing the transit operation, in respect of which the declaration was raised, but which were not or were incorrectly declared.

- Means of transport: in addition to existing definition a single container or a package is included (less need to have recourse to the rules on transhipment);

- No customs supervision required for the transfer from one means of transport to another (unless the means of transport is sealed);

- Alternative proof may also take the form of a customs record, certified by Member States' customs, which shows that the goods have physically left the customs territory of the Community;

- No Transit Accompanying Document when authorized consignor and able to produce the document on request.

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- NCTS applies to all Community transit procedures; - Standard or simplified transit declaration (reduced data-set); - Guarantee to be provided; - Enquiry procedure may be reviewed; - Fallback procedure: Annex 37-d of current Implementing Provisions (Regulation (EC)

1192/2008) Storage (from article 731 – 01) – Customs Warehousing The structure of the Code is as follows:

– Common provisions – Temporary storage – Customs warehousing – Free zones

Common provisions will be provided for several issues including not using the warehouse as retail sale, provision for specially equipped storage facilities and details on who can and who cannot operate storage facilities. Article 732-01/2 deals with general provisions for “Temporary Storage” and then defines 3 types of public warehouses: 'public customs warehouse type I' means a public customs warehouse where the following responsibilities referred to in Article 149 (1) of the Code lie the authorized Meat Trader:

- Goods are not removed from customs supervision; - Obligations arising from the storage of goods are fullfilled - particular conditions with the specified in the authorisation are complied with

'public customs warehouse type II' means a public customs warehouse where the Meat Trader only can fulfill points 1 & 2 and noone else. 'public customs warehouse type III' means a public customs warehouse which is operated by the customs authorities. Free Zones They deal with the exchange of information and the controls. It will be regulated that the fence or wall enclosing free zones shall facilitate supervision by the customs authorities outside the free zone and prevent any goods being removed irregularly from the free zone. The area immediately outside the fence or wall shall be such as to permit adequate supervision by the customs authorities. Access to the said area shall require the consent of the said authorities”. Processing Article 751-01 regulates the autorisation, the Meat Trader needs to obtain to allow for processing. Inward processing allows imported raw materials or semi-manufactured goods to be processed for re-export within the Community by Community manufacturers without a requirement that the manufacturers have to pay customs duty and VAT on the goods being used. There are two variants:

• one allows the duty to be suspended, while under the • other it is paid and later repaid.

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As concerns inward processing under the MCCIPs (Article 752-01 onwards) all different procedures are now merged into one: inward processing, suspension system, processing under customs control and destruction. In the future, the Meat Trader has full flexibility, can export 100% of the goods or release them for free circulation or whatever he wants to do with it. There are two new rules for the calculation of the import duties, which includes anti-dumping duties and all of this has an impact on the “economic conditions”. All of which affects the calculation of the customs duties and this means that the economic conditions do not need to be taken into consideration. This is especially important if you are dealing with agricultural products, the article on economic conditions is crucial. If a company applies for inward processing, the company has to produce a code (there is a political reason behind the code) to obtain the necessary authorization with the “economic conditions”8 deemed to be met. For sensitive goods, there will be an examination. Annex 73 covers the sensitive goods in question. There is a fear by DG TAXUD that DG Agri wants to include all agricultural products in the sensitive products, which would also include e.g. meat products. This might have an impact on imported meat and its processing.

Agricultural policy measures Under special procedures, DG TAXUD would define 'agricultural policy measures' as “provisions governing export refunds or import or export licences relating to agricultural products which are covered by the Common Agricultural Policy” – a clearly limiting scope. It is now feared by DG TAXUD that after the interservice consulation, the definition of agricultural policy measures will be enlarged, again attempting to make these provisions more difficult. DG TAXUD will aim no to let this happen as it will make Europe less competitive. The UECBV Secretariat has more details if member s feel it is worth following up this issue. Outward processing Outward processing is the opposite of inward processing. It allows Community goods to be processed abroad and, when they come back into the Community to be put into free circulation, that duty has to be paid only on the value added abroad. Without such a system, duty would have to be paid on the goods as produced in the Community as well as on the value added abroad. What is new under the MCC?

– Definition – Prior importation of processed products

Documents in question TAXUD 1668/2007 Rev. 7 – Document TAXUD 2034/2008 rev 1. Document with draft annexes.

8 “Economic conditions” basically means that an authorisation for a processing procedure can only be granted only where essential interests of Community producers would not be adversely affected; There is legal fiction in the MCC which states that the essential interests of Community producers shall be deemed not to be adversely affected, except where evidence to the contrary exists or where the customs legislation provides that the economic conditions are deemed to be fulfilled.

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TITLE VII Special Procedures Power Point Presentation by European Commission TEMPO Review form

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TITLE VIII – EXIT (Pages 339 – 358) The structure of the Title is as follows:

– Goods leaving the customs territory

– Export and re-export o I - Export o II – Re-export notification o III –Export and re-export under an ATA Carnet o IV –Exit summary declaration

– Relief from export duties

Goods leaving the customs territory The general principle her is that goods destined to leave the customs territory of the Community shall be covered by a pre-departure declaration lodged or made available before the goods are to be brought out of the customs territory of the Community. However, this does not apply to goods carried on means of transport which only pass through the territorial waters or the airspace of the customs territory of the Community without a stop therein. There are 3 possible forms a pre-departure declaration can take:

1. A customs declaration outgoing goods are placed under a customs procedure so a customs declaration is required (i.e. export, outward processing, internal transit)

2. A re-export notification where non-Community goods are re-exported following

customs warehousing, inward processing, temporary admission

3. The actual exit summary declaration in the remaining cases

To remember: - The pre-departure declaration shall contain at least the particulars necessary

for the exit summary declaration. For Meat Traders the requirement to lodge a pre-departure declaration will be waived. All the information will be contained in the customs declaration or re-export notification.

- Goods leaving the customs territory of the Community shall be subject to

customs supervision and may be subject to customs controls.

- Goods destined to leave the customs territory of the Community shall be presented to customs at the customs office competent for the place where the goods leave the customs territory of the Community and shall be subject to the application of exit formalities.

- Release for exit is granted on condition that the goods in question leave the

customs territory of the Community in the same condition as when the pre-departure declaration was accepted.

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The draft MCCIP regulate:

– the deadlines for lodging a pre-departure declaration

– the situations justifying an exemption from the deadlines

– the person responsible for lodging the pre-departure declaration, – the formalities at the customs offices of export and exit in case of an export/ outward

processing declaration or a re-export, notification under the rules of the export procedure,

– the certification of exit, – the formalities for goods that did not leave the customs territory of the Community, – the formalities for exit summary declarations, and – the re-export notification in cases where temporary storage or storage in a free zone

is terminated by bringing the goods out of the customs territory of the Community and no exit summary declaration is required.

What is new:

– Definition of the exporter (seller instead of owner) – Less special provisions concerning the definition of the customs office of exit under

the export procedure (and thus concerning the use of ECS): – Taking over goods under a single transport contract will no longer terminate the

export procedure. – The export procedure will no longer end when a transit procedure starts. – Apart from this, it is anticipated that the provisions for Title VIII will reflect the rules

applicable on 1 January 2011.

TITLE VIII Export Power Point Presentation by European Commission TEMPO Review form