APPENDIX I

COMMON TRANSIT PROCEDURES

TITLE I

GENERAL PROVISIONS

Article 1

1. As provided for in Article 1(3) of the Convention, this Appendix lays down certain rules governing the common transit procedure.

2. Save where otherwise stated, the provisions of this Appendix shall apply to operations under the common transit procedure regardless of whether the T1 or the T2 procedure is used.

3. The goods involving higher risk of fraud are listed in Annex I. When a provision of the present Convention refers to this Annex, any measure related to listed goods shall apply only when the quantity exceeds the corresponding minimum. Annex I shall be reviewed at least once a year.

CHAPTER I

Scope and definitions

Article 2

Scope of the procedure

1. The common transit procedure shall not apply to postal consignments (including postal packages) carried out in accordance with the Acts of the Universal Postal Union, when the goods are carried by or for holders of rights and obligations under those Acts.

2. A Contracting Party may decide not to apply the common transit procedure to the movement of goods by pipeline. Such decisions shall be communicated to the Commission which shall inform the other countries.

Article 3

Definitions

For the purposes of this Convention the following definitions apply:

(a) “competent authorities”: the customs authority or any other authority responsible for applying this Convention;

(b) “transit declaration”: the act whereby a person indicates in the prescribed form and manner a wish to place goods under the common transit procedure;

(c) “Transit accompanying document”: document printed by the computerised system to accompany the goods and based on the data of the transit declaration;

(d) “T2 procedure”: the T2 procedure referred to in Article 2 of the Convention and identified on the transit declaration by the “T2” or “T2F” symbol;

(e) “principal”: the person who makes the common transit declaration, or on whose behalf the common transit declaration is made;

(f) “office of departure”: the customs office where declarations placing goods under the common transit procedure are accepted;

(g) “office of transit”: — the customs office at the point of entry into a Contracting Party, or — the customs office at the point of exit from a Contracting Party when the consignment is leaving the customs territory of that Contracting Party in the course of a transit operation via a frontier between that Contracting Party and a third country;

(h) “office of destination”: the customs office where goods placed under the common transit procedure must be presented in order to end the procedure;

(i) “office of guarantee”: the office where the competent authorities of each country decide that guarantors shall lodge their guarantees;

(j) “guarantor”: any natural or legal third person who undertakes in writing to pay jointly and severally with the principal any potential debt up to the limit of the amount guaranteed;

(k) “HS heading”: the numerical codes for the headings and subheadings of the Harmonized Commodity Description and Coding System, as established by the Convention of 14 June 1983;

(l) “debt”: import or export duties and other charges due in respect of goods placed under the common transit procedure;

(m) “debtor”: any natural or legal person liable for payment of a debt;

(n) “Commission”: the Commission of the European Communities;

(o) “release of goods”: the act whereby the customs authorities make goods available for the purposes specified for the common transit procedure under which they are placed;

(p) “person established in a Contracting Party”: — in the case of a natural person, any person who is normally resident there, — in the case of a legal person or an association of persons, any person that has its registered office, central headquarters or a permanent business establishment there;

(q) “data-processing techniques”: — the exchange of EDI standard messages with the competent authorities, or — the introduction of information required for completion of the formalities concerned into the data-processing systems of the competent authorities;

(r) “EDI (electronic data interchange)”: the electronic transmission of data, structured in accordance with agreed message standards, between two computer systems;

(s) “standard message”: a predefined structure recognised for the electronic transmission of data;

(t) “personal data”: any information relating to an identified or identifiable natural or legal person;

(u) “fallback procedure”: procedure based on the use of paper documents, established to allow the lodging and control of the transit declaration and follow-up of the transit operation where it is not possible to follow the standard procedure by electronic means;

(v) “SAD Convention”: Convention on the simplification of formalities in trade in goods of 20 May 1987.

CHAPTER II

Standard procedure

Article 4

1. Under the conditions and in the manner which they shall determine, and with due regard to the principles laid down by customs rules, the competent authorities shall provide that, for the T1 or T2 procedure, the formalities shall be carried out using an electronic data-processing technique.

2. In agreement with each other the Contracting Parties shall adopt measures laying down the following:

(a) the rules defining and governing the messages to be exchanged between customs offices, as required for the application of the customs legislation;

(b) a common data set and format of the data messages to be exchanged under the customs legislation.

Article 5

Scope

1. Without prejudice to any special circumstances, the competent authorities shall use information technology and computer networks for the type of information exchange described in this Chapter.

2. All Contracting Parties shall use the European Community's Common Communications Network/Common Systems Interface (CCN/CSI) for the type of information exchange referred to in paragraph 1. The financial participation of the EFTA countries and other related issues shall be agreed between the Community and each of the EFTA countries.

3. The provisions of this Chapter shall not apply to the simplifications referred to in Article 44(1)(f) and (g) unless otherwise specified.

Article 6

Security

1. The conditions laid down for carrying out formalities by a data-processing technique shall include, inter alia, measures for checking the source of data and protecting them against accidental or unlawful destruction or accidental loss, alteration or unauthorised access.

2. In addition to the security requirements described in paragraph 1, the competent authorities shall establish and maintain adequate security arrangements for the effective, reliable and secure operation of the entire transit system.

3. To ensure the abovementioned level of security each input, modification or deletion of data shall be recorded together with information giving the reason for, and exact time of, such processing and identifying the person who carried it out. In addition, the original data or any data so processed shall be kept for at least three calendar years from the end of the year to which such data refers, or for longer if so required elsewhere.

4. The competent authorities shall monitor security regularly.

5. Any competent authorities involved shall inform each other of all suspected breaches of security.

Article 7

Protection of personal data

1. The Contracting Parties shall use the personal data exchanged in application of this Convention solely for the purposes of this Convention and any customs-approved treatment or use following the common transit procedure. This restriction shall not, however, prevent the use of such data for the purposes of risk analysis during the common transit procedure and investigation and legal proceedings arising out of this common transit procedure. Where this is the case, the competent authority which supplied the information shall be notified of such use forthwith.

2. Where the processing of personal data exchanged in application of this Convention is concerned, the Contracting Parties undertake to introduce whatever measures are necessary to ensure a level of protection of personal data at least equivalent to the requirements of the Council of Europe Convention of 28 January 1981 for the Protection of Individuals with regard to Automatic Processing of Personal Data.

3. Each Contracting Party shall take whatever steps in the form of effective controls are necessary to guarantee compliance with this Article.

CHAPTER III

Responsibilities of the principal, the carrier and the recipient of goods

Article 8

1. The principal shall be required to:

(a) produce the goods intact and the necessary documents, at the office of destination, within the prescribed time limit, with due observance of the identification measures adopted by the competent authorities;

(b) observe the other provisions relating to the common transit procedure;

(c) produce to the competent authorities responsible for controls, upon request and within any deadline laid down, all the necessary documents and details, on whatever medium has been used, and furnish all requisite assistance.

2. Notwithstanding the principal's obligations under paragraph 1, a carrier or recipient of goods who accepts goods knowing that they are moving under the common transit procedure shall also be responsible for production of the goods intact and the necessary documents at the office of destination by the prescribed time limit and with due observance of the measures adopted by the competent authorities to ensure identification.

CHAPTER IV

Guarantees

Article 9

Obligation to furnish a guarantee

1. The principal shall furnish a guarantee in order to ensure payment of the debt which may be incurred in respect of the goods.

2. The guarantee shall be:

(a) either an individual guarantee covering a single common transit operation;

(b) or, where a simplification within the meaning of Article 44 is used, a comprehensive guarantee covering several operations.

Article 10

Forms of guarantee

1. The guarantee may be furnished:

(a) in the form of a cash deposit at the office of departure; or

(b) by a guarantor at an office of guarantee.

2. However, the competent authorities may refuse to accept the type of guarantee proposed where it is incompatible with the proper functioning of the common transit procedure.

Article 10a

Cash deposits

Cash deposits shall be made in the currency of the country of departure or by the submission of any other means of payment recognised by the competent authorities of that country.

Guarantees in the form of a cash deposit or equivalent means of payment shall be lodged in accordance with the provisions in force in the country of departure.

Article 10b

Guarantor

1. The guarantor shall be established in the Contracting Party where the guarantee is furnished and approved by the competent authorities. He shall indicate an address for service or appoint an agent in each of the Contracting Parties involved in the common transit operation in question. Where the Community is one of the Contracting Parties, the guarantor shall indicate an address for service or appoint an agent in each Member State.

2. The undertaking shall also cover, within the limits of the secured amount, amounts of import or export duties payable following a posteriori checks.

3. The competent authorities shall refuse to approve a guarantor who does not appear certain to ensure payment within the prescribed period of any debt liable to be incurred, up to the maximum amount of the guarantee.

4. When the guarantee is furnished by a guarantor at an office of guarantee:

(a) a “Guarantee Reference Number” is allocated to the principal for the use of guarantee and to identify each undertaking of the guarantor;

(b) an access code associated with the “Guarantee Reference Number” is allocated and is communicated to the principal.

Article 11

Guarantee Waiver

1. Except in cases to be decided as necessary, no guarantee need be furnished for:

(a) journeys by air;

(b) the carriage of goods on the Rhine and the Rhine waterways;

(c) movement by pipeline;

(d) common transit operations carried out in accordance with Article 44(1)(f)(i).

2. Each country may waive the requirement to furnish a guarantee in respect of the carriage of goods on waterways situated in its territory other than those referred to in paragraph 1(b). It shall forward details of the measures taken to that effect to the Commission, which shall inform the other countries.

CHAPTER V

Miscellaneous provisions

Article 12

Legal status of documents and records

1. Documents issued in accordance with the rules, irrespective of the technical format and measures introduced or accepted by the competent authorities of one country shall have the same legal effect in other countries as that attached to the said documents and measures by the authorities of each of the countries concerned.

2. Findings made by the competent authorities of one country when inspections are carried out under the common transit procedure shall have the same force in other countries as findings by the competent authorities of each of those countries.

Article 13

List of customs offices competent to deal with transit operations

Each country shall enter in the computerised system the list of customs offices competent to deal with common transit operations, indicating their respective identification numbers and duties and stating the days and hours when they are open. Any changes shall also be entered in the computerised system.

The Commission shall use the computerised system to communicate this information to the other countries.

Article 14

Central office

Each country, should the occasion arise, shall notify the Commission of any central offices that have been established, and of the responsibilities conferred on those offices regarding the management and monitoring of the Common transit procedure and in the receipt and transmission of documents indicating the types of the documents involved.

The Commission shall forward this information to the other countries.

Article 15

Offences and penalties

Countries shall take whatever steps are necessary to deal with any offence or irregularity and impose effective, proportionate and dissuasive penalties.

TITLE II

OPERATION OF THE PROCEDURE

CHAPTER I

Individual guarantee

Article 16

Form of the individual guarantee

1. The individual guarantee shall cover the full amount of the debt liable to be incurred, calculated on the basis of the highest rates, including import duties, that would be applicable in the country of departure if goods of the same kind were imported from a third country and cleared for home use. For the purpose of that calculation, Community goods carried in accordance with the Convention on a common transit procedure shall be treated as non-Community goods.

However, the rates to be taken into consideration for the calculation of the individual guarantee shall not be less than a minimum rate, where such a rate is given in the fifth column of Annex I.

2. Individual guarantees in the form of a cash deposit shall be valid in all Contracting Parties. They shall be repaid when the procedure has been discharged.

3. An individual guarantee furnished by a guarantor may be in the form of individual guarantee vouchers for an amount of EUR 7 000, issued by the guarantor to persons who intend to act as principal and shall be valid in all Contracting Parties.

The guarantor shall be liable for up to EUR 7 000 per voucher.

4. Where the individual guarantee is furnished by a guarantor, the access code associated with the “Guarantee Reference Number” shall not be modified by the principal, except within the framework of the application of Annex IV, point 3.

Article 17

Furnishing of an individual guarantee by a guarantor

1. An individual guarantee furnished by a guarantor shall conform to the specimen in Annex C1 to Appendix III. The guarantee instrument shall be retained at the office of guarantee.

2. Where required by national law, regulation or administrative provision, or by common practice, a country may allow the undertaking referred to in paragraph 1 to take a different form provided it has the same legal effect as the undertaking shown in the specimen.

Article 18

Furnishing of an individual guarantee by means of vouchers

1. In the case referred to in Article 16(3), the individual guarantee furnished by a guarantor shall conform to the specimen in Annex C2 to Appendix III.

Article 17(2) shall be applicable mutatis mutandis.

2. The guarantor shall furnish the office of guarantee with any required details about the individual guarantee vouchers that he has issued in the manner decided by the competent authorities. The last date on which the voucher may be used cannot be later than one year from the date of issue.

3. A “Guarantee Reference Number” is communicated by the guarantor to the principal for each individual guarantee voucher which is allocated to him. The associated access code cannot be modified by the principal.

4. For implementing Article 22(1)(b), the principal may use these individual guarantee vouchers in paper form, corresponding to the specimen in Annex C3, including the identification number.

5. The guarantor may issue individual guarantee vouchers which are not valid for a Common transit operation involving goods listed in Annex I. In this case the guarantor shall endorse each individual voucher in paper form diagonally with the following phrase:

— Limited validity — 99200.

6. The principal shall lodge to the office of departure the number of individual guarantee vouchers corresponding to the multiple of EUR 7 000 required to cover the total amount of debt which may be incurred. For the implementation of Article 22(1)(b) the individual vouchers in paper form shall be delivered and retained by the office of departure which shall communicate the identification number of each voucher to the office of guarantee indicated on the voucher.

Article 19

Revocation and cancellation of the guarantee

1. The office of guarantee shall revoke its acceptance of the guarantor's undertaking if the conditions laid down at the time of issue are no longer fulfilled.

Equally, the guarantor may cancel his undertaking at any time.

2. The revocation or cancellation shall become effective on the sixteenth day following the date on which the guarantor or the office of guarantee, as appropriate, is notified.

From that date, no individual guarantee vouchers allocated earlier may be used for placing goods under the common transit procedure.

3. The competent authorities of the country responsible for the relevant office of guarantee shall record such revocation or cancellation in the computerised system together with the date when either becomes effective.

CHAPTER II

Means of transport and declarations

Article 20

Loading

1. Each transit declaration shall include only the goods loaded or to be loaded on a single means of transport for carriage from one office of departure to one office of destination.

For the purposes of this Article, the following shall be regarded as constituting a single means of transport, on condition that the goods carried are to be dispatched together:

(a) a road vehicle accompanied by its trailer(s) or semi-trailer(s);

(b) a line of coupled railway carriages or wagons;

(c) boats constituting a single chain;

(d) containers loaded on a single means of transport within the meaning of this Article.

2. A single means of transport may be used for loading goods at more than one office of departure and for unloading at more than one office of destination.

Article 21

Transit declarations by means of a data processing technique

1. The particulars of the declaration referred to in Annex A1 to Appendix III are established in the form of data in coded or any other form specified by those authorities for computer processing and correspond to the data required.

2. A transit declaration made by EDI shall be considered to have been lodged when the EDI message is received by the competent authorities.

Acceptance of the transit declaration made by EDI is communicated to the principal by means of a response message comprising at least the identification of the message received and/or the registration number of the transit declaration and the acceptance date.

3. Transit declarations lodged by the exchange of EDI standard messages shall comply with the structure and particulars set out in Appendix III.

4. The transit declaration shall be completed in accordance with Appendix III, in one of the official languages of the Contracting Parties accepted by the competent authorities of the country of departure. Where necessary, the competent authorities of a country concerned in the common transit operation may request a translation into the official language, or one of the official languages, of that country.

5. Where the common transit procedure in the country of departure succeeds another customs approved treatment or use, the office of departure may request production of these documents.

6. The goods shall be presented together with the transport document. The office of departure may waive the requirement to produce this document when the customs formalities are completed, on condition the document is kept at its disposal.

Article 22

Transit declarations in writing

1. Goods may be placed under the common transit procedure by means of a transit declaration made in writing on a form corresponding to the model in Appendix 1 of Annex I to the SAD Convention in the following cases:

(a) where goods are transported by travellers who have no direct access to the customs' computerised system, according to the methods described in the Article 22a;

(b) where the fallback procedure is implemented, under the conditions and according to the methods defined in Annex V;

(c) where a Contracting Party so decides.

2. For the application of paragraph 1(a) and (c), the competent authorities shall ensure that the transit data is exchanged between the competent authorities using the customs computerised system.

3. The use of a written transit declaration under paragraph 1, point (b) when the principal's computer system and/or network is/are unavailable shall be subject to the approval of the competent authorities.

4. The transit declaration may be supplemented by one or more continuation sheets corresponding to the specimen set out in Appendix 3 of Annex I of the SAD Convention. The forms shall be an integral part of the declaration.

5. Loading lists drawn up in accordance with the specimen in Appendix III may be used instead of continuation sheets as the descriptive part of a transit declaration, of which they shall be an integral part.

6. The forms referred to in paragraphs 1, 4 and 5 shall be completed in accordance with Appendix III.

7. Article 21, paragraphs 4 to 6 shall be applicable mutatis mutandis.

Article 22a

Transit declaration for travellers

For the application of Article 22(1)(a), the traveller draws up the transit declaration in accordance with Article 5, 6 and Annex B6 of Appendix III.

Article 23

Mixed consignments

In the case of consignments comprising both goods which must be carried under the T1 procedure and goods which must be carried under the T2 procedure, the transit declaration bearing the “T” symbol shall be supplemented by the attribute “T1”, “T2” or “T2F” for each item of goods.

Article 24

Signing of the transit declaration and principal's undertaking

1. The transit declaration shall contain an electronic signature or other means of authentication.

2. Lodging of the transit declaration makes the principal responsible for the following:

(a) the accuracy of the information given in the declaration;

(b) the authenticity of the documents presented;

(c) compliance with all the obligations relating to the placing of the goods in question under the common transit procedure.

CHAPTER III

Procedure at the office of departure

Article 25

Presentation of transit declarations

The transit declaration shall be lodged and goods shall be presented at the office of departure during the days and hours appointed by the competent authorities.

The office of departure may, at the request and expense of the principal, allow the goods to be presented in any other place.

Article 26

Itinerary

1. Goods entered for the common transit procedure shall be carried to the office of destination along an economically justified route.

2. Without prejudice to Article 59, for goods on the list of Annex I, or when the competent authorities or the principal consider it necessary, the office of departure shall specify a prescribed itinerary and enter in box 44 of the transit declaration at least the countries to be transited, taking into account any details communicated by the principal.

Article 27

Acceptance and registration of the transit declaration

1. The office of departure shall accept and register the transit declaration during the days and hours appointed by the competent authorities provided that the following conditions are met:

(a) it contains all the information necessary for the purposes of this Convention;

(b) it is accompanied by all the necessary documents; and

(c) the goods to which it refers are presented to customs.

2. The competent authorities may allow the documents referred to in paragraph 1(b) not to be presented with the declaration. In that case these documents shall be kept available to the competent authorities.

3. Save as otherwise expressly provided, the date to be used for the purposes of all the provisions governing the common transit procedure shall be the date of acceptance of the declaration by the competent authorities.

Article 28

Amending the transit declaration

1. The principal shall, at his request, be authorised to amend one or more of the particulars of the transit declaration after it has been accepted by the competent authorities. The amendment shall not have the effect of rendering the declaration applicable to goods other than those it originally covered.

2. However, no amendment shall be permitted where authorisation is requested after the competent authorities have:

(a) informed the principal that they intend to examine the goods;

(b) established that the particulars in question are incorrect;

(c) released the goods.

Article 29

Time limit

1. The office of departure shall set the time limit within which the goods must be presented at the office of destination, taking into account the itinerary, any current transport or other legislation, and, where appropriate, the details communicated by the principal.

2. The time limit prescribed by the office of departure shall be binding on the competent authorities of the countries whose territory is entered during a common transit operation and shall not be altered by those authorities.

Article 30

Verifying transit declarations and goods

1. The competent authorities of the country of departure may carry out the following controls on the basis of risk analysis or by random selection:

(a) a check covering the accepted declaration and the documents accompanying it;

(b) examination of the goods and, if necessary, removal of samples for analysis or detailed examination.

2. The goods shall be examined in the places designated and during the hours appointed for that purpose. However, the competent authorities may, at the principal's request and at his expense, carry out the examination of the goods in other places or at other times.

Article 31

Identification measures

1. The office of departure shall take the identification measures it considers necessary by introducing corresponding data in the transit declaration.

2. Without prejudice to the provisions of Article 11(4) of the Convention, the release of goods to be placed under the transit procedure shall be refused if they cannot be sealed in accordance with the requirements of Article 11(2) or (3) of the Convention.

3. Where the method of sealing the space containing the goods is used, the competent authorities shall check whether the means of transport has been approved for sealing or, otherwise, whether it is suitable for sealing.

4. Any road vehicle, trailer, semi-trailer or container approved for the carriage of goods under customs seal in accordance with an international agreement to which the European Community or its Member States and the EFTA countries are parties shall be regarded as approved under other regulations within the meaning of Article 11(2)(a) of the Convention.

5. Seals shall comply with the characteristics set out in Annex II.

6. Seals shall not be broken without the authorisation of the competent authorities.

7. A goods description shall be deemed to permit identification of the goods within the meaning of Article 11(4) of the Convention where it is sufficiently precise to permit easy identification of the quantity and nature of the goods.

Article 32

Release of the goods

1. The office of departure shall record the results of the verification by introducing corresponding data in the transit declaration.

2. If the results of the verification of the declaration allow it, the office of departure shall authorise release of the goods and record the date in the computerised system.

3. On release of the goods, the office of departure shall transmit details of the common transit operation to the declared office of destination using the “Anticipated Arrival Record” message and to each declared office of transit using the “Anticipated Transit Record” message. These messages shall be based on data derived from the transit declaration, amended where appropriate.

Article 33

Transit accompanying document

1. The transit accompanying document corresponds to the specimen and particulars in Appendix III. It shall accompany the goods placed under the common transit procedure. Following the release of the goods, it shall be made available to the operator in one of the following ways:

(a) by being given to the principal by the office of departure, or, where authorised by the competent authorities, by being printed out from the principal's computer system;

(b) by being printed out from the authorised consignor's computer system after receipt of the message from the office of departure allowing the release of goods.

2. Where appropriate, the transit accompanying document shall be supplemented by a list of items which shall form an integral part thereof and conform to the specimen in Appendix III.

CHAPTER IV

Procedure during transport

Article 34

Presentation of the transit accompanying document

The transit accompanying document and the other documents accompanying the goods shall be presented whenever the competent authorities so require.

Article 35

Office of transit

1. The consignment and the transit accompanying document shall be presented at each office of transit.

2. The office of transit shall record the passage against the “Anticipated Transit Record” message received from the office of departure. The passage shall be notified to the office of departure using the “Notification Crossing Frontier” message.

3. The offices of transit shall inspect the goods if they consider it necessary to do so. Any inspection of the goods shall be carried out using the “Anticipated Transit Record” message as a basis for such inspection in particular.

4. Where goods are carried via an office of transit other than that declared and mentioned in a transit accompanying document, the office of transit used shall request the “Anticipated Transit Record” message from the office of departure and notify the passage to the office of departure using the “Notification Crossing Frontier” message. Where necessary it will be informed by the office of departure that the guarantee for country the concerned is invalid.

5. Paragraphs 1 to 4 shall not apply to the carriage of goods by rail.

Article 36

Incidents during transport

1. In the cases set out below, the carrier shall be required to make the necessary entries in the transit accompanying document and present them with the consignment to the competent authorities of the country in whose territory the means of transport is located:

(a) if the prescribed itinerary is changed and Article 26(2) applies;

(b) if seals are broken in the course of a transport operation for reasons beyond the carrier's control;

(c) if goods are transferred to another means of transport; any such transfer must be made under the supervision of the competent authorities which may, however, authorise transfers to be made without their supervision;

(d) in the event of imminent danger necessitating immediate partial or total unloading of the means of transport;

(e) in the event of any incident or accident capable of affecting the ability of the principal or the carrier to comply with his obligations.

2. Where the competent authorities consider that the common transit operation concerned may continue in the normal way they shall, once they have taken any steps that may be necessary, endorse the transit accompanying document. The relevant information concerning the transfer or any other incident shall be recorded in the computerised system by the competent authorities as the case may be at the office of transit or office of destination.

CHAPTER V

Procedure at the office of destination

Article 37

Presentation at the office of destination

1. The goods and the required documents shall be presented at the office of destination during the days and hours appointed for opening. However, the said office may, at the request and expense of the party concerned, allow the documents and the goods to be presented outside the appointed days and hours. Similarly, at the request and expense of the party concerned, the office of destination may also allow the goods and the required documents to be presented in any other place.

2. Where the goods are presented at the office of destination after expiry of the time limit prescribed by the office of departure and where this failure to comply with the time limit is due to circumstances which are explained to the satisfaction of the office of destination and are not attributable to the carrier or the principal, the latter shall be deemed to have complied with the time limit prescribed.

3. The office of destination shall keep the transit accompanying document and, the inspection of the goods shall, in particular, on the basis of the “Anticipated Arrival Record” message received from the office of departure.

4. At the request of the principal, and to provide evidence of the procedure having ended in accordance with Article 42(1), the office of destination shall endorse a copy of the transit accompanying document with the following phrase:

— Alternative proof — 99202

5. A transit operation may end at an office other than the one entered in the transit declaration. That office shall then become the office of destination.

Where the new office of destination comes under the jurisdiction of a Contracting Party other than the one having jurisdiction over the office originally designated, the new office of destination shall request an “Anticipated Arrival Record” message from the office of departure.

Article 38

Receipt

1. The office of destination shall endorse a receipt at the request of the person presenting the goods and the required documents.

2. The receipt shall conform to the particulars in Appendix III.

3. The receipt shall be completed in advance by the person concerned. It may contain other particulars relating to the consignment, except in the space reserved for the office of destination. The receipt shall not be used as proof of the procedure having ended within the meaning of Article 42(1).

Article 39

Return of information

1. The office of destination shall notify the office of departure of the arrival of the goods on the day they are presented at the office of destination using the “Arrival Advice” message.

2. Where the transit operation ends in an office other than that declared initially in the transit declaration, the new office of destination shall notify the arrival to the office of departure using the “Arrival Advice” message.

The office of departure shall notify the arrival to the originally declared office of destination using the “Forwarded Arrival Advice” message.

3. The “arrival advice” message quoted in paragraphs (1) and (2) may not be used as proof of the procedure having ended for the purposes of Article 40(2).

4. Except where justified, the office of destination shall forward the “Control Results” message to the office of departure at the latest on the third day following the day the goods are presented at the office of destination. However, where Article 65 applies the office of destination shall forward the “Control results” message to the office of departure at the latest on the sixth day following the day the goods have been delivered.

CHAPTER VI

Checking the end of the procedure

Article 40

End and discharge

1. The common transit procedure shall end and the obligations of the principal shall be met when the goods placed under the procedure, the necessary documents and the required data are produced at the office of destination, in accordance with the provisions governing the procedure.

2. The competent authorities shall discharge the common transit procedure when they are in a position to establish, on the basis of a comparison of the data available to the office of departure and those available to the office of destination, that the procedure has ended correctly.

Article 41

Enquiry procedure

1. When the competent authorities of the country of departure have not received the “Arrival Advice” message by the time limit within which the goods must be presented at the office of destination or have not received the “Control Results” message within six days after the “Arrival Advice” message has been received, those authorities shall consider the enquiry procedure in order to obtain the information needed to discharge the procedure or, where this is not possible:

— to establish whether a customs debt has been incurred,

— to identify the debtor, and

— to determine the competent authorities responsible for entry in the accounts.

2. The enquiry procedure is started at the latest seven days after the expiry of one of the time limits referred in paragraph 1, except in exceptional cases, defined by the Contracting parties in agreement with each other. If the competent authorities receive information earlier that the transit procedure has not ended, or suspect that to be the case, the enquiry procedure shall be initiated forthwith.

3. If the competent authorities of the country of departure have only received the “Arrival Advice” message, they shall initiate the enquiry procedure by requesting the office of destination, which has sent the “Arrival Advice” message, for the “Control Results” message.

4. If the competent authorities of the country of departure have not received the “Arrival Advice” message they shall initiate the enquiry procedure by requesting the information needed to discharge the procedure from the principal or, where sufficient particulars are available for the enquiry at destination, from the office of destination.

The principal shall be requested to provide the information needed to discharge the procedure at the latest twenty-eight days after the start of the enquiry procedure with the office of destination when the transit operation cannot be discharged.

5. The office of destination and the principal shall reply to the request, referred to in paragraph 4, within twenty-eight days. If the principal provides sufficient information within this period, the competent authorities of the country of departure shall take into account such information or shall discharge the procedure if the information provided so permits.

6. If the information received from the principal is not sufficient to discharge the procedure, but is sufficient to continue the enquiry procedure according the competent authorities of the country of departure, it shall immediately initiate a request to the customs office involved.

7. Where an enquiry establishes that the transit procedure ended correctly, the competent authorities of the country of departure shall discharge the procedure and shall immediately inform the principal and, where appropriate, any competent authorities that may have initiated a recovery procedure in accordance with Article 117.

Article 41a

1. When the competent authorities of the country of departure, herein after referred to as the requesting authorities, during the enquiry procedure and before the time limit referred to in Article 116(1)(c) expires, obtain evidence by whatever means regarding the place where the events from which the customs debt arises occur, and this place is in another Contracting Party, the competent authorities shall immediately send all the information available to the authorities responsible for that place, herein after referred to as the authorities addressed.

2. The authorities addressed shall acknowledge receipt of the communication and indicate whether they are responsible for the recovery. If no response is received within twenty-eight days, the requesting authorities shall immediately proceed with the enquiry procedure.

Article 42

Alternative proof of the end of the procedure

1. The proof that the procedure has ended within the time limit prescribed in the declaration may be furnished by the principal to the satisfaction of the competent authorities in the form of a document certified by the competent authorities of the country of destination identifying the goods and establishing that they have been presented at the office of destination or, where Article 64 applies, to an authorised consignee.

2. The Common transit procedure shall also be considered as having ended where the principal presents, to the satisfaction of the competent authorities, one of the following documents identifying the goods:

(a) a customs document issued in a third country entering the goods for a customs-approved treatment or use;

(b) a document issued in a third country, stamped by the customs authorities of this country and certifying that goods are considered to be in free circulation in the third country concerned.

3. The documents mentioned in paragraph 2 can be replaced by their copies or photocopies certified as being true copies by the body which certified the original documents, by the authorities of the third countries concerned or by the authorities of one of the countries.

Article 43

Post-clearance verification

1. The competent authorities may carry out post-clearance verification of the information supplied and any documents, forms, authorisations or data relating to the common transit procedure in order to check the entries and stamps are authentic. Such checks shall be made where doubts arise or fraud is suspected. They may also be made on the basis of risk analysis or by random selection.

2. Any competent authorities receiving a request to make a post-clearance check shall respond without delay.

3. When the competent authorities of the country of departure request post-clearance verification of the transit accompanying documents and the information contained in the “Control Results” message because doubt have arisen or fraud is suspected, the conditions of Article 40(2) shall be deemed not to have been fulfilled until it is confirmed that the data in respect of which the request was made are authentic or accurate.

4. These provisions shall apply mutatis mutandis to Article 22.

TITLE III

SIMPLIFICATIONS

CHAPTER I

General provisions concerning simplifications

Article 44

Scope

1. Following an application by the principal or the consignee, as appropriate, the competent authorities may authorise the following simplifications:

(a) use of a comprehensive guarantee or guarantee waiver;

(b) use of seals of a special type;

(c) exemption from the requirement to use a prescribed itinerary;

(d) authorised consignor status;

(e) authorised consignee status;

(f) procedures specific to certain modes of transport: (i) goods carried by rail or large container; (ii) goods carried by air; (iii) goods moved by pipeline;

(g) use of other simplified procedures based on Article 6 of the Convention.

2. Except where otherwise provided in this Appendix or the authorisation, where authorisation to use the simplifications referred to in paragraph 1 points (a) and (f) is granted, the simplifications shall apply in all the countries. Where authorisation to use the simplifications referred to in points (b), (c) and (d) is granted, the simplifications shall apply only to common transit operations beginning in the country where the authorisation was granted. Where authorisation to use the simplification referred to in point (e) is granted, the simplification shall apply solely in the country where the authorisation was granted.

Article 45

General conditions for authorisation

1. The authorisations referred to in Article 44(1) shall be granted only to persons who:

(a) are established in a Contracting Party, with the proviso that authorisation to use a comprehensive guarantee may be granted only to persons established in the country where the guarantee is to be furnished;

(b) regularly use the common transit arrangements, or whose competent authorities know that they can meet the obligations under the arrangements or, in connection with the simplification referred to in Article 44(1)(e), regularly receive goods that have been entered for the common transit procedure; and

(c) have not committed any serious or repeated offences against customs or tax legislation.

2. To ensure proper management of simplifications, authorisations shall be granted only where:

(a) the competent authorities are able to supervise the procedure and carry out controls without an administrative effort disproportionate to the requirements of the person concerned; and

(b) the person concerned keeps records which enable the competent authorities to carry out effective controls.

Article 46

Contents of the application

1. An application for authorisation to use simplifications, hereinafter referred to as “the application” shall be dated and signed. Under the conditions and in the manner which they shall determine the competent authorities shall provide that the authorisation shall be made in writing or lodged using an electronic data-processing technique.

2. Applications must include all the facts which will allow the competent authorities to check that the conditions subject to which use of such simplifications may be granted have been met.

Article 47

Responsibility of the applicant

Persons applying for simplifications shall be responsible, under the provisions in force in the Contracting Parties, and without prejudice to the possible application of penal provisions, for the following:

(a) the accuracy of the information given;

(b) the authenticity of the accompanying documents.

Article 48

Competent authorities

1. Applications shall be lodged with the competent authorities of the country in which the applicant is established.

2. Authorisations shall be issued and applications rejected in accordance with the current provisions of the Contracting Parties.

3. Decisions rejecting applications shall be communicated to the applicant and shall state the reasons for rejection in accordance with the time limits and provisions in force in the relevant country.

Article 49

Content of the authorisation

1. The dated and signed original of the authorisation and one or more certified copies thereof shall be given to the holder.

2. The authorisation shall specify the conditions for use of the simplifications and lay down the operating and control methods. It shall be valid from the date of issue.

3. Persons authorised for simplifications shall be responsible for the compliance with all obligations relating to the placing of the goods in question under the common transit procedure.

4. In the case of the simplifications referred to in Article 44(1)(b), (c) and (f), authorisations shall be presented whenever the office of departure so requires.

Article 50

Revocation and amendment

1. The holder of an authorisation shall inform the competent authorities of any factor arising after the authorisation was granted which may influence its continuation or content.

2. The competent authorities shall revoke or amend an authorisation where:

(a) one or more of the conditions laid down for its issue were not or are no longer fulfilled; or

(b) a factor arising after the authorisation was granted may influence its continuation or content.

3. The competent authorities may revoke or amend an authorisation where the holder fails to fulfil an obligation imposed on him under the authorisation.

4. Reasons shall be given for any decision amending or revoking an authorisation. The decision shall be communicated to the holder of the authorisation.

5. The revocation or amendment of an authorisation shall take effect from the date of notification. However, in exceptional cases where the legitimate interests of the holder of the authorisation so require, the competent authorities may defer the date when revocation or amendment takes effect. The date when the decision takes effect shall be indicated in the decision.

Article 51

Keeping of records by the competent authorities

1. The competent authorities shall keep applications and attached supporting documents, together with a copy of any authorisation issued.

2. Where an application is rejected or an authorisation is revoked, the application and the decision rejecting or revoking the application, as the case may be, and all attached supporting documents shall be kept for at least three years from the end of the calendar year in which the application was rejected or the authorisation was revoked.

CHAPTER II

Comprehensive guarantee and guarantee waiver

Article 52

Reference amount

1. The principal may use a comprehensive guarantee, or guarantee waiver, up to a reference amount.

2. The reference amount shall be the same as the amount of the debt which may be incurred in respect of goods the principal places under the common transit procedure during a period of at least one week.

The guarantee office shall establish the amount in collaboration with the party concerned in the light of:

(a) the information on goods he has carried in the past and an estimate of the volume of intended common transit operations as shown,inter alia, by his commercial documentation and accounts; and

(b) the highest rates of duty and charges, including import duties, that would be applicable in the country of the office of guarantee if goods of the same kind were imported from a third country and cleared for home use. For the purpose of that calculation, Community goods carried in accordance with the Convention on a common transit procedure shall be treated as non-Community goods.

A precise calculation of duties and other charges in respect of which the principal gives an undertaking for each transit operation is made if the necessary data is available. Otherwise, where goods other than those referred to in the list of Annex I are involved, the amount is presumed to be EUR 7 000 unless other information known to the competent authorities results in other amounts.

3. The guarantee office shall review the reference amount in particular according to a request of the principal and shall adjust it if necessary.

4. Each principal shall ensure that the amount at stake does not exceed the reference amount, taking into account any operations for which the procedure has not yet ended.

The reference amounts shall be handled and may be monitored by means of the computerised system of the customs authorities for each transit operation.

Article 53

Amount of the comprehensive guarantee and the guarantee waiver

1. The amount to be covered by the comprehensive guarantee shall be the same as the reference amount referred to in Article 52.

2. Persons who provide the competent authorities with evidence that their finances are sound and that they meet the standards of reliability described in paragraphs 3 and 4 may be authorised to use a comprehensive guarantee for a reduced amount or to have a guarantee waiver.

3. The amount to be covered by the comprehensive guarantee may be reduced:

(a) to 50 % of the reference amount where the principal demonstrates that he has sufficient experience of the common transit procedure;

(b) to 30 % of the reference amount where the principal demonstrates that he has sufficient experience of the common transit procedure and that he cooperates very closely with the competent authorities.

4. A guarantee waiver may be granted where the principal demonstrates that he has sufficient experience of the common transit procedure, cooperates very closely with the competent authorities, is in command of transport operations and has sufficient financial resources to meet his obligations.

5. For the purpose of paragraphs 3 and 4 all countries shall take into account the provisions of Annex III.

Article 53a

Methods of use of comprehensive guarantee and guarantee waiver

For the comprehensive guarantee and the guarantee waiver:

(a) a “Guarantee Reference Number” linked with one reference amount is allocated to the principal for the use of the guarantee;

(b) an access code associated with the “Guarantee Reference Number” is allocated and is communicated to the principal by the office of guarantee.

The principal can assign one or more access codes to this guarantee to be used by himself or his representatives.

Article 54

Special provisions for goods involving increased risk

1. To be authorised to furnish a comprehensive guarantee in respect of the types of goods, referred to in the list of Annex I, a principal must demonstrate not only that he meets the conditions of Article 45 but also that his finances are sound, that he has sufficient experience of the common transit procedure and either that he cooperates very closely with the competent authorities or that he is in command of transport operations.

2. Where such goods are concerned, the amount to be covered by the comprehensive guarantee may be reduced:

(a) to 50 % of the reference amount where the principal demonstrates that he cooperates very closely with the competent authorities and is in command of transport operations;

(b) to 30 % of the reference amount where the principal demonstrates that he cooperates very closely with the competent authorities, is in command of transport operations and that he has sufficient financial resources to meet his obligations.

3. For the purpose of paragraph 2 all countries shall take into account the provisions of Annex III.

4. The above paragraphs also apply where an application explicitly concerns the use of the comprehensive guarantee for both the types of goods referred to in the list of Annex I and those not listed in that Annex under the same comprehensive guarantee certificate.

5. Guarantee waivers may not be granted in respect of common transit operations involving goods referred to in the list of Annex I.

6. Bearing in mind the principles governing authorisation to use the comprehensive guarantee and reduction of the amount of a guarantee, use of a comprehensive guarantee for a reduced amount may be prohibited temporarily in special circumstances.

7. Bearing in mind the principles governing reduction of the amount of a guarantee, use of a comprehensive guarantee may be prohibited temporarily for types of goods in respect of which large-scale fraud involving the use of this guarantee has been proved.

8. The rules for implementing paragraphs 6 and 7 are set out in Annex IV.

Article 55

Guarantee document

1. The comprehensive guarantee shall be furnished by a guarantor.

2. The guarantee document shall conform to the specimen in Annex C4 to Appendix III. The guarantee instrument shall be retained at the office of guarantee.

3. Article 17(2) shall apply mutatis mutandis.

Article 56

Comprehensive guarantee certificates and guarantee waiver certificates

1. On the basis of the authorisation, the competent authorities shall issue the principal with one or more comprehensive guarantee certificates or guarantee waiver certificates, hereinafter referred to as certificates, drawn up in accordance with Appendix III to enable principals to provide proof of a comprehensive guarantee or guarantee waiver within the framework of the Article 22(1)(b).

2. The period of validity of a certificate shall not exceed two years. However, that period may be extended by the office of guarantee for one further period not exceeding two years.

Article 57

Revocation and cancellation

1. Article 19(1) and the first subparagraph of article 19(2) shall apply mutatis mutandis to the revocation and cancellation of the comprehensive guarantee.

2. The revocation of an authorisation to use a comprehensive guarantee or guarantee waiver by the competent authorities, and the effective date of revocation by the office of guarantee of a guarantor's undertaking, or the effective date of cancellation of an undertaking by a guarantor shall be introduced in the computerised system by the office of guarantee.

3. From the effective date of revocation or cancellation any certificate issued for the application of article 22(1)(b) may not be used to place goods under the Common transit procedure and shall be returned by the principal to the guarantee office without delay.

Each country shall forward to the Commission the means by which certificates that remain valid but have not yet been returned or that have been declared as stolen, lost or falsified may be identified. The Commission shall inform the other countries.

CHAPTER III

Use of seals of a special type

Article 58

1. The competent authorities may authorise principals to use special types of seals on means of transport or packages provided that the competent authorities approve the seals as complying with the characteristics set out in Annex II.

2. Principals shall enter the type, number and marks of the seals used in the transit declaration data.

Principals shall affix seals no later than when the goods are released.

CHAPTER IV

Exemption regarding prescribed itinerary

Article 59

The competent authorities may grant an exemption from the requirement to follow a prescribed itinerary to principals who take steps to ensure that the competent authorities are able to ascertain the location of their consignments at all times.

CHAPTER V

Authorised consignor status

Article 60

Authorised Consignor

Persons wishing to carry out common transit operations without presenting the goods which are the subject of the transit declaration at the office of departure or in any other authorised place may be granted the status of authorised consignor.

This simplification shall be granted solely to persons authorised to use a comprehensive guarantee or granted a guarantee waiver.

Article 61

Contents of the authorisation

The authorisation shall specify in particular:

(a) the office or offices of departure that will be responsible for forthcoming common transit operations;

(b) the time limit available to the competent authorities after the authorised consignor has lodged the transit declaration in order to carry out checks, if necessary, before the release of the goods;

(c) the identification measures to be taken, in which case the competent authorities may prescribe that the means of transport or the package or packages shall bear special seals, approved by the competent authorities as complying with the characteristics set out in Annex II and affixed by the authorised consignor;

(d) the prohibited categories or movements of goods.

Article 62

Formalities at departure

An authorised consignor shall lodge his transit declaration at an office of departure. The release of goods cannot take place before the end of the time limit provided for in Article 61(b).

Article 63

Information to be entered on declarations

The authorised consignor enters the following data in the computerised system where necessary:

— the number, the type and the mark of the seals,

— any itinerary prescribed in accordance with Article 26(2),

— the period fixed in accordance with Article 29 in which goods have to be lodged at the office of destination.

CHAPTER VI

Authorised consignee status

Article 64

Authorised consignee

1. Persons who wish to receive at their premises or at any other specified place goods entered for the common transit procedure without presenting them and a transit accompanying document at the office of destination may be granted the status of authorised consignee.

2. The principal shall have fulfilled his obligations under Article 8(1)(a), and the common transit procedure shall be deemed to have ended, when the transit accompanying document which accompanied the consignment, together with the intact goods, have been delivered within the prescribed period to the authorised consignee at his premises or at the place specified in the authorisation, with the identification measures having been duly observed.

3. At the carrier's request the authorised consignee shall issue the receipt provided for in Article 38, which shall apply mutatis mutandis, in respect of each consignment delivered in accordance with paragraph 2.

Article 65

Obligations

1. When the goods arrive at his premises or at the places specified in the authorisation, the authorised consignee shall:

(a) immediately inform the office of destination responsible of the arrival of the goods by the “Arrival Notification” message including all incidents during transport;

(b) wait for the “Unloading Permission” message before starting unloading;

(c) after having received the “Unloading Permission” message, send at the latest by the third day following the day the goods have been delivered, the “Unloading Remarks” message including all differences to the office of destination, in accordance with the procedure laid down in the authorisation;

(d) make available or send to the office of destination a copy of the transit accompanying document which accompanied the goods according to the arrangement provided in the authorisation.

2. The office of destination shall introduce the data constituting the “Control Results” message in the computerised system.

Article 66

Contents of the authorisation

1. The authorisation shall specify in particular:

(a) the office or offices of destination responsible for the goods received by the authorised consignee;

(b) when the authorised consignee is to receive from the office of destination, via the “Unloading Permission” message, the relevant data from the “Anticipated Arrival Record” message data for the purpose of applying Article 37(3) mutatis mutandis;

(c) excluded categories or movements of goods.

2. The competent authorities shall specify in the authorisation whether any action by the office of destination is required before the authorised consignee may dispose of the goods received.

CHAPTER VII

Simplified procedures for the carriage of goods by rail or large container

Section 1

General provisions relating to carriage by rail

Article 67

Scope

The formalities under the common transit procedure shall be simplified in accordance with Articles 68 to 79, 95 and 96 for goods carried by railway companies under cover of a “consignment note CIM and express parcels”, hereinafter referred to as “CIM consignment note”.

Article 68

Legal force of documents used

The CIM consignment note shall be equivalent to a transit declaration.

Article 69

Control of records

The railway company of each country shall make the records held at its accounting offices available for purposes of control to the competent authorities of the country in question.

Article 70

The principal

1. A railway company which accepts goods for carriage under cover of a CIM consignment note serving as a common transit declaration shall be the principal for that operation.

2. The railway company of the country through whose territory goods enter the territory of the Contracting Parties shall be the principal for operations involving goods accepted for carriage by the railways of a third country.

Article 71

Label

Railway companies shall ensure that consignments carried under the common transit procedure are identified by labels bearing a pictogram, a specimen of which is shown in Annex B11 to Appendix III.

The labels shall be affixed to the CIM consignment note and to the relevant railway wagon in the case of a full load or, in other cases, to the package or packages.

A stamp which reproduces, in green, the pictogram shown in Annex B11 to Appendix III may be used instead of the label referred to in the first subparagraph.

Article 72

Modification of the contracts of carriage

Where a contract of carriage is modified so that:

— a transport operation which was to end outside the territory of a Contracting Party ends within it, or

— a transport operation which was to end within the territory of a Contracting Party ends outside it,

railway companies shall not perform the modified contract without the prior agreement of the office of departure.

In all other cases, railway companies may perform the modified contract. They shall inform the office of departure of the modification forthwith.

Movement of goods between Contracting Parties

Article 73

Use of the CIM consignment note

1. The CIM Consignment note shall be produced at the office of departure in the case of a transport operation to which the common transit procedure applies and which starts and is to end within the territory of the Contracting Parties.

2. When goods move from one point to another in the Community through the territory of one or more EFTA countries, the office of departure shall clearly enter in the box reserved for customs on sheets 1, 2 and 3 of the CIM consignment note:

— the “T1” symbol, if the goods are moving under the T1 procedure;

— the “T2” or “T2F” symbol, as appropriate, where the goods are moving under the T2 procedure and, under Community provisions, entry of this symbol is mandatory.

The symbol “T2” or “T2F” shall be authenticated by the application of the stamp of the office of departure.

3. Where goods are moving under the T1 procedure from a point of departure in the Community to a destination in an EFTA country, the office of departure shall clearly enter the symbol “T1” in the box reserved for customs use on copies 1, 2 and 3 of the CIM consignment note.

4. Except in the cases referred to in the paragraphs 2 and 3, goods which move from one point to another in the Community through the territory of one or more EFTA countries and goods which move on departure from the Community to a destination in an EFTA country shall be placed under the T2 procedure, subject to conditions which shall be laid down by each Member State of the Community, for the whole of the journey from the station of departure to the station of destination without production at the office of departure of the CIM consignment note covering the goods.

Where goods move from one point to another in the Community through the territory of one or more EFTA countries, the labels referred to in Article 71 need not be affixed.

5. Where a transport operation begins in an EFTA country the goods shall be considered as moving under the T1 procedure. If, however, the goods are to move under the T2 procedure in accordance with the provisions of Article 2(3)(b) of the Convention, the office of departure shall indicate on sheet 3 of the CIM consignment note that the goods to which the note refers are carried under the T2 procedure. In this case, the box reserved for customs use shall be endorsed clearly with the “T2” or “T2F” symbol, as appropriate, the stamp of the customs office of departure and the signature of the responsible official. In the case of goods moving under the T1 procedure the “T1” symbol need not be entered on the document.

6. All copies of the CIM consignment note shall be returned to the party concerned.

7. Each EFTA country may provide that goods moving under the T1 procedure be carried under that procedure without requiring the CIM consignment note to be presented at the office of departure.

8. For the goods referred to in paragraphs 2, 3 and 5, the office for the station of destination shall act as the office of destination. If, however, the goods are released for free circulation or placed under another procedure at an intermediate station, the office responsible for that station shall act as the office of destination. In the case of goods which move from one point to another in the Community through the territory of one or more EFTA countries under the conditions referred to in paragraph 4, no formalities need be carried out at the office of destination.

Article 74

Identification measures

As a general rule and having regard to the identification measures applied by the railway companies, the office of departure shall not seal the means of transport or the packages.

Article 75

Use of the different sheets of the CIM consignment note

1. Except in cases where goods move from one point to another in the Community through the territory of one or more EFTA countries, the railway company of the country with jurisdiction over the office of destination shall forward to the latter sheets 2 and 3 of the CIM consignment note.

2. The office of destination shall stamp sheet 2, return it forthwith to the railway company and retain sheet 3.

Carriage of goods to or from third countries

Article 76

Carriage to third countries

1. Articles 73 and 74 shall apply to a transport operation which starts within the territory of the Contracting Parties and is to end outside it.

2. The customs office responsible for the frontier station through which goods in transit leave the territory of the Contracting Parties shall act as the office of destination.

3. No formalities need be carried out at the office of destination.

Article 77

Carriage from third countries

1. The customs office for the frontier station through which goods enter the territory of the Contracting Parties shall act as office of departure for a transport operation which starts outside the territory of the Contracting Parties and is to end within it.

No formalities need be carried out at the office of departure.

2. The customs office for the station of destination shall act as office of destination. If, however, goods are released for free circulation or placed under another customs procedure at an intermediate station, the customs office for that station shall act as office of destination.

The formalities laid down in Article 75 shall be carried out at the office of destination.

Article 78

Carriage through the territory of the Contracting Parties

1. The customs offices which are to act as office of departure and office of destination for transport operations which start and are to end outside the territory of the Contracting Parties shall be those referred to in Articles 77(1) and 76(2) respectively.

2. No formalities need be carried out at the offices of departure or destination.

Article 79

Customs status of goods

Goods carried under Articles 77(1) or 78(1) shall be considered as moving under the T1 procedure unless the Community status of the goods is established in accordance with the provisions of Appendix II.

Section 2

Goods carried in large containers

Article 80

Scope

Formalities under the common transit procedure shall be simplified in accordance with Articles 81 to 96 for goods carried by railway companies in large containers, using transport undertakings as intermediaries, under cover of the transfer notes referred to for the purposes of this Appendix as “TR transfer notes”. Where appropriate, such operations shall include the dispatch of consignments by transport undertakings, using modes of transport other than rail, in the country of consignment to the railway station of departure in that country and in the country of destination from the railway station of destination in that country, and any carriage by sea in the course of the movement between these two stations.

Article 81

Definitions

For the purposes of Articles 80 to 96 the following definitions apply:

1) “transport undertaking”: an undertaking constituted by the railway companies as a corporate entity of which they are members, such undertaking being set up for the purpose of carrying goods by means of large containers under cover of TR transfer notes;

2) “large container”: a device for the carriage of goods that is: — permanent in nature, — specially designed to facilitate the carriage of goods by one or more modes of transport, without intermediate reloading, — designed for easy attachment and/or handling, — designed in such a way that it can be properly sealed where the application of Article 89 so requires, — of a size such that the area bounded by the four lower external angles is not less than 7 m2;

3) “TR transfer note”: the document which comprises the contract of carriage by which the transport undertaking arranges for one or more large containers to be carried from a consignor to a consignee in international transport. The TR transfer note shall bear a serial number in the top right-hand corner by which it can be identified. This number shall be made up of eight digits preceded by the letters TR. The TR transfer note shall consist of the following sheets, in numerical order: 1 : sheet for the head office of the transport undertaking; 2 : sheet for the national representative of the transport undertaking at the station of destination; 3A : sheet for customs; 3B : sheet for the consignee; 4 : sheet for the head office of the transport undertaking; 5 : sheet for the national representative of the transport undertaking at the station of departure; 6 : sheet for the consignor. Each sheet of the TR transfer note, with the exception of sheet 3A, shall have a green band approximately four centimetres wide along its right-hand edge;

4) “list of large containers” (hereinafter referred to as list): the document attached to a TR transfer note, of which it forms an integral part, which is intended to cover the consignment of several large containers from a single station of departure to a single station of destination, at which stations the customs formalities are carried out. The list shall be produced in the same number of copies as the TR transfer note to which it relates. The number of lists shall be shown in the box at the top right-hand corner of the TR transfer note reserved for that purpose. In addition, the serial number of the appropriate TR transfer note shall be entered in the top right-hand corner of each list.

Article 82

Legal force of documents used

TR transfer notes used by transport undertakings shall have the same legal force as transit declarations.

Article 83

Control of records — Information to be supplied

1. In each country the transport undertaking shall, for purposes of control, make available to the competent authorities through the medium of its national representative or representatives the records held at its accounting office or offices or at those of its national representative or representatives.

2. At the request of the competent authorities, the transport undertaking or its national representative or representatives shall communicate forthwith to the competent authorities any documents, accounting records or information relating to transport operations completed or under way which the competent authorities consider they should see.

3. Where, in accordance with Article 82, TR transfer notes have the same legal force as transit declarations, the transport undertaking or its national representative or representatives shall inform:

(a) the office of destination of any TR transfer note, sheet 1 of which has been sent to it without a customs endorsement;

(b) the office of departure of any TR transfer note, sheet 1 of which has not been returned to it and in respect of which it has been unable to determine whether the consignment has been correctly presented to the office of destination or exported from the territory of the Contracting Parties to a third country in accordance with Article 93.

Article 84

The principal

1. For transport operations referred to in Article 80 and accepted by a transport undertaking in a country, the railway company of that country shall be the principal.

2. For transport operations referred to in Article 80 and accepted by a transport undertaking in a third country, the railway company of the country through which the goods enter the territory of the Contracting Parties shall be the principal.

Article 85

Customs formalities during carriage by means other than rail

If customs formalities have to be carried out during carriage by means other than rail to the station of departure or from the station of destination, only one large container may be covered by each TR transfer note.

Article 86

Label

The transport undertaking shall ensure that consignments carried under the common transit procedure are identified by labels bearing a pictogram, a specimen of which is shown in Annex B11 to Appendix III. The labels shall be affixed to the TR transfer note and to the large container or containers concerned.

A stamp which reproduces, in green, the pictogram shown in Annex B11 to Appendix III may be used instead of the label referred to in the first paragraph.

Article 87

Modification of the contract of carriage

Where a contract of carriage is modified so that:

— a transport operation which was to end outside the territory of a Contracting Party ends within it, or

— a transport operation which was to end within the territory of a Contracting Party ends outside it,

the transport undertaking shall not perform the modified contract without the prior agreement of the office of departure.

In all other cases, transport undertakings may perform the modified contract. They shall inform the office of departure of the modification forthwith.

Movement of goods between Contracting Parties

Article 88

TR transfer note and lists

1. Where a transport operation to which the common transit procedure applies starts and is to end within the territory of the Contracting Parties, the TR transfer note shall be presented at the office of departure.

2. Where goods move from one point to another in the Community through the territory of one or more EFTA countries, the office of departure shall clearly enter in the box reserved for customs on sheets 1, 2, 3A and 3B of the TR transfer note:

— the symbol “T1”, where the goods are moving under the T1 procedure,

— the “T2” or “T2F” symbol, as appropriate, where the goods are moving under the T2 procedure and, under Community provisions, entry of this symbol is mandatory.

The symbol “T2” or “T2F” shall be authenticated by the application of the stamp of the office of departure.

3. Where goods are moving under the T1 procedure from a point of departure in the Community to a destination in an EFTA country, the office of departure shall clearly enter the symbol “T1” in the box reserved for customs use in copies 1, 2, 3A and 3B of the TR transfer note.

4. Except in the cases referred to in the paragraphs 2 and 3, goods which move from one point to another in the Community through the territory of one or more EFTA countries and goods which move on departure from the Community to a destination in an EFTA country shall be placed under the T2 procedure, subject to conditions which shall be laid down by each Member State of the Community, for the whole of the journey without production at the office of departure of the TR transfer note covering the goods. Where goods move from one point to another in the Community through the territory of one or more EFTA countries, the labels referred to in Article 86 need not be affixed.

5. Where a transport operation begins in an EFTA country the goods shall be considered as moving under the T1 procedure. If, however, the goods are to move under the T2 procedure in accordance with the provisions of Article 2(3)(b) of the Convention, the office of departure shall indicate on sheet 3A of the TR transfer note that the goods to which the note refers are carried under the T2 procedure. In this case, the box reserved for customs on sheet 3A shall be endorsed clearly with the “T2” or “T2F” symbol, as appropriate, the stamp of the office of departure and the signature of the responsible official. In the case of goods moving under the T1 procedure the “T1” symbol need not be entered on the document.

6. Where a TR transfer note covers both containers carrying goods moving under the T1 procedure and containers carrying goods moving under the T2 procedure, the office of departure shall enter in the box reserved for customs on sheets 1, 2, 3A and 3B of the TR transfer note separate references for the container(s), depending on which type of goods they contain, and the “T1”, “T2” or “T2F” symbol, as appropriate, against the reference number(s) of the corresponding container(s).

7. Where, in cases covered by paragraph 3, lists of large containers are used, separate lists shall be made out for each category of container carrying goods moving under the T1 procedure and the serial number or numbers of the list or lists concerned shall be entered in the box reserved for customs on sheets 1, 2, 3A and 3B or the TR transfer note. The “T1” symbol shall be entered against the serial number(s) of the list(s), as appropriate.

8. All sheets of the TR transfer note shall be returned to the person concerned.

9. Each EFTA country may provide that goods moving under the T1 procedure be carried under the T1 procedure without requiring the TR transfer note to be presented at the office of departure.

10. For the goods referred to in paragraphs 2, 3 and 5, the TR transfer note shall be produced at the office of destination where the goods are to be declared for release for free circulation or for another customs procedure.

In the case of goods which move from one point to another in the Community through the territory of one or more EFTA countries under the conditions referred to in paragraph 4 no formalities need be carried out at the office of destination.

Article 89

Identification measures

Identification of goods shall be ensured in accordance with Article 11 of the Convention. However, the office of departure shall not normally seal large containers where identification measures are taken by the railway companies. If seals are affixed, the space reserved for customs on sheets 3A and 3B of the TR transfer note shall be endorsed accordingly.

Article 90

Use of sheets of TR transfer note

1. Except in cases where goods move from one point to another point in the Community through the territory of one or more EFTA countries, the transport undertaking shall deliver to the office of destination sheets 1, 2 and 3A of the TR transfer note.

2. The office of destination shall stamp sheets 1 and 2, return them forthwith to the transport undertaking and keep sheet 3A.

Carriage of goods to or from third countries

Article 91

Carriage to third countries

1. Where a transport operation starts within the territory of the Contracting Parties and is to end outside it, Article 88(1) to (9) and Article 89 shall apply.

2. The customs office responsible for the frontier station through which goods in transit leave the territory of the Contracting Parties shall act as the office of destination.

3. No formalities need be carried out at the office of destination.

Article 92

Carriage from third countries

1. Where a transport operation starts outside the territory of the Contracting Parties and is to end within it, the customs office responsible for the frontier station through which the goods enter the territory of the Contracting Parties shall act as the office of departure. No formalities need be carried out at the office of departure.

2. The office at which the goods are presented shall act as the office of destination. The formalities laid down in Article 90 shall be carried out at the office of destination.

Article 93

Carriage through the territory of the Contracting Parties

1. Where a transport operation starts and is to end outside the territory of the Contracting Parties, the customs offices which are to act as the offices of departure and destination shall be those referred to in Article 92(1) and Article 91(2) respectively.

2. No formalities need be carried out at the offices of departure or destination.

Article 94

Customs status of goods

Goods carried under Articles 92(1) or 93(1) shall be considered as moving under the T1 procedure unless the Community status of the goods is established in accordance with the provisions of Appendix II.

Section 3

Other provisions

Article 95

Loading lists

1. Article 22(5) of this Appendix and point 24 of Annex V to this Appendix shall apply to any loading lists which accompany the CIM consignment note or the TR transfer note. The number of such lists shall be shown in the box reserved for particulars of accompanying documents on the CIM consignment note or the TR transfer note, as the case may be.

In addition, the loading list shall include the wagon number to which the CIM consignment note refers or, where appropriate, the container number of the container holding the goods.

2. In the case of transport operations beginning within the territories of the Contracting Parties comprising both goods moving under the T1 procedure and goods moving under the T2 procedure, separate loading lists shall be made out. In the case of goods carried in large containers under cover of TR transfer notes, such separate lists shall be completed for each large container which contains both categories of goods.

The serial numbers of the loading lists for each of the two categories of goods shall be entered in the box reserved for the description of goods on the CIM consignment note or TR transfer note, as the case may be.

3. In the circumstances referred to in paragraphs 1 and 2 and for the purposes of the procedures provided for in Articles 67 to 96, loading lists accompanying the CIM consignment note or TR transfer note shall form an integral part thereof and shall have the same legal effects.

The original of such loading lists shall be stamped by the station of dispatch.

Section 4

Scope of the normal procedures and the simplified procedures for combined road rail transport

Article 96

1. The provisions of Articles 67 to 95 shall not preclude use of the procedures laid down in Title II. The provisions of Articles 69 and 71 or 83 and 86 shall nevertheless apply.

2. In the cases referred to in paragraph 1, a reference to the transit declaration(s) used shall be entered clearly in the box reserved for particulars of accompanying documents at the time the CIM consignment note or TR transfer note is made out.

That reference shall specify the type, office of issue, date and registration number of each document used.

In addition, sheet 2 of the CIM consignment note or sheets 1 and 2 of the TR transfer note shall be authenticated by the railway company responsible for the last railway station involved in the common transit operation. This company shall authenticate the document after ascertaining that carriage of the goods is covered by the transit document or documents referred to.

Where the common transit operations referred to in paragraph 1 and in the first subparagraph of this paragraph end in an EFTA country, that country may stipulate that sheet 2 of the CIM consignment note or sheets 1 and 2 of the TR transfer note shall be presented at the customs office responsible for the last station involved in the common transit operation. That customs office shall stamp the sheet after ascertaining that carriage of the goods is covered by the transit document or documents referred to.

3. Where a common transit operation is effected under cover of a TR transfer note in accordance with Articles 80 to 94, the CIM consignment note used for the operation shall be excluded from the scope of Articles 67 to 79 and Article 96(1) and (2). The CIM consignment note shall bear a clear reference to the TR transfer note in the box reserved for particulars of accompanying documents. That reference shall include the words “TR transfer note” followed by the serial number.

4. Where a consignment of goods being carried by combined road-rail transport, under cover of one or more transit declarations made under the procedure set out in Title II, is accepted by the railways in a rail terminal and is loaded on wagons, the railway companies shall assume liability for payment of duties and other charges where offences or irregularities occur during the journey by rail, if there is no valid guarantee in the country where the offence or irregularity has occurred or is deemed to have occurred, and if it is not possible to recover such amounts from the principal.

Article 97

Authorised consignor and consignee

1. Where production of the transit declaration at the office of departure is not required in respect of goods which are to be dispatched under cover of a CIM consignment note or a TR transfer note in accordance with Articles 67 to 96, the competent authorities shall take the necessary measures to ensure that sheets 1, 2 and 3 of the CIM consignment note, or sheets 1, 2, 3A and 3B of the TR transfer note bear the “T1”,“T2” or “T2F” symbol, as the case may be.

2. Where goods carried in accordance with Articles 67 to 96 are intended for an authorised consignee, the competent authorities may provide that, by way of derogation from Article 64(2) and Article 66(1)(a), sheets 2 and 3 of the CIM consignment note, or sheets 1, 2 and 3A of the TR transfer note are to be delivered direct by the railway companies or by the transport undertaking to the office of destination.

(Articles 98 to 110: free)

CHAPTER VIII

Simplified procedures for carriage by air

Article 111

Simplified procedure (level 1)

1. An airline may be authorised to use the goods manifest as a transit declaration where it corresponds in substance to the specimen in Appendix 3 of Annex 9 to the Convention on International Civil Aviation (simplified procedure — level 1).

For common transit operations, the authorisation shall indicate the form of the manifest and the airports of departure and destination. The airline shall send the competent authorities of each of the airports concerned an authenticated copy of the authorisation.

2. Where a transport operation involves goods which must be carried under the T1 procedure and goods which must be carried under the T2 procedure, they shall be listed on separate manifests.

3. Each manifest shall bear an endorsement dated and signed by the airline identifying it:

— by the “T1” symbol where the goods are moving under the T1 procedure, or

— by the “T2” or “T2F” symbol, as appropriate, where the goods are moving under the T2 procedure, it being noted, however, that a manifest may be endorsed with only one of these symbols.

4. The manifest shall also include the following information:

— the name of the airline transporting the goods,

— the flight number,

— the date of the flight,

— the name of the airport of loading (airport of departure) and unloading (airport of destination);

and, for each consignment on the manifest:

— the number of the air waybill,

— the number of packages,

— the normal trade description of the goods including all the details necessary for their identification,

— the gross mass.

Where goods are grouped, their description shall be replaced, where appropriate, by the entry “Consolidation”, which may be abbreviated. In such cases the air waybills for consignments on the manifest shall include the normal trade description of the goods including all the details necessary for their identification.

5. At least two copies of the manifest shall be presented to the competent authorities at the airport of departure, who shall retain one copy.

The said authorities may, for control purposes, require production of all the air waybills relating to the consignments listed on the manifest.

6. A copy of the manifest shall be presented to the competent authorities at the airport of destination, who shall retain it.

For purposes of control, these authorities may also require presentation of the manifest and air waybills relating to all goods unloaded at the airport.

7. Once a month, after authenticating the list, the competent authorities at each airport of destination shall transmit to the competent authorities at each airport of departure a list drawn up by the airlines of the manifests which were presented to them during the previous month.

The description of each manifest in the said list shall include the following information:

— the reference number of the manifest,

— the symbol identifying the manifest as a transit declaration in accordance with paragraph 3,

— the name (which may be abbreviated) of the airline which carried the goods,

— the flight number, and

— the date of the flight.

The authorisation may also provide for the airlines themselves to transmit the information referred to in the first subparagraph.

In the event of irregularities being found in connection with the information on the manifests appearing on the said list, the competent authorities of the airport of destination shall inform the competent authorities of the airport of departure and the authority which granted the authorisation, referring in particular to the air waybills for the goods in question.

Article 112

Simplified procedure (level 2)

1. An airline may be authorised to use a manifest transmitted by data exchange systems as a transit declaration where it operates a significant number of flights between the countries (simplified procedure — level 2).

By way of derogation from Article 45(1)(a), airlines need not be established in a Contracting Party if they have a regional office there.

2. On receipt of an application for authorisation, the competent authorities shall notify the authorities of the other countries in whose territories the airports of departure and destination linked by the electronic data interchange system are situated.

Provided no objection is received within sixty days of the date of notification, the competent authorities shall issue the authorisation.

This authorisation shall be valid in the countries concerned and shall apply only to common transit operations between the airports to which it refers.

3. The simplification shall be implemented as follows:

(a) the manifest drawn up at the airport of departure shall be transmitted to the airport of destination by electronic data interchange system;

(b) the airline shall enter in the manifest: — the “T1” symbol, if the goods are moving under the T1 procedure, — the “T2” or “TF” symbol, as appropriate, if the goods are moving under the T2 procedure, — the letters “TD” for goods already placed under the transit procedure, in which case the airline shall also enter the letters “TD” in the corresponding airway bill as well as a reference for the procedure used, the reference number and date of the transit declaration and the name of the issuing office, — the letter “C” (equivalent to “T2L”) or “F” (equivalent to “T2LF”), as appropriate, for Community goods not placed under a transit procedure, — the letter “X” for Community goods to be exported and which are not placed under a transit procedure, against the relevant items in the manifest. The manifest must also include the information provided for in Article 111(4);

(c) the common transit procedure shall be deemed to have ended when the data exchange manifest is available to the competent authorities of the airport of destination and the goods have been presented to them;

(d) a printout of the data exchange manifest shall be presented on request to the competent authorities at the airports of departure and destination;

(e) the records kept by the airline shall contain at least the information set out in, point (b);

(f) the competent authorities at the airport of departure shall carry out audits based, on risk analysis;

(g) the competent authorities at the airport of destination shall carry out audits based on risk analysis and, if necessary, transmit for verification the relevant details of manifests received by electronic data interchange system to the competent authorities at the airport of departure.

4. Without prejudice to the provisions of Chapter VI of Title II and of Title IV:

— the airline shall notify the competent authorities of all offences and irregularities,

— the competent authorities at the airport of destination shall notify the competent authorities at the airport of departure and the authority which issued the authorisation of all offences and irregularities at the earliest opportunity.

CHAPTER IX

Simplified procedure for moving goods by pipeline

Article 113

1. Where the common transit procedure is used for moving goods by pipeline, the formalities relating to the procedure shall be adapted in accordance with paragraphs 2 to 5.

2. Goods moved by pipeline shall be deemed to be placed under the common transit procedure:

— on entry into the customs territory of one Contracting Party for those goods which enter that territory by pipeline,

— on being placed in the pipeline system for those goods which are already within the customs territory of a Contracting Party.

Where necessary the Community status of the goods shall be established in accordance with Appendix II.

3. For the goods referred to in paragraph 2, the operator of the pipeline established in the country through the territory of which the goods enter the territory of a Contracting Party, or the operator of the pipeline in the country in which the movement starts, shall be the principal.

4. For the purposes of Article 4(2), the operator of a pipeline established in a country through whose territory the goods are moved by pipeline shall be deemed to be the carrier.

5. Without prejudice to the provisions of paragraph 8, the common transit procedure shall end when the goods moved by pipeline arrive at the consignees' installations or are accepted into the distribution network of a consignee and entered in his records.

6. When goods moved by pipeline between two Contracting Parties are deemed to have been placed under the common transit procedure in accordance with the provisions of paragraph 2 and, in the course of the operation, cross the territory of a Contracting Party where the procedure is not used for movement by pipeline, the said procedure shall be suspended whilst the goods cross the territory.

7. When goods are moved by pipeline from a Contracting Party where the common transit procedure is not used for movement by pipeline to a destination in a Contracting Party where the procedure is used, the said procedure shall be deemed to begin when the goods enter the territory of the latter Contracting Party.

8. When goods are moved by pipeline from a Contracting Party where the common transit procedure is used for movement by pipeline to a destination in a Contracting Party where the procedure is not used, the said procedure shall be deemed to end when the goods leave the territory of the Contracting Party where the said procedure is used.

9. Undertakings i