Slovakia: Organised training sessions in 2018 for AFCOS Network partners on the protection of the EU’s financial interests. In 2018, the Public Procurement Office started to deepen cooperation with key central state administration and judicial bodies on the basis of signed cooperation agreements.

2.REPLIES OF MEMBER STATES

2.1.Revenue

Revenue fraud through the undervaluation of goods imported in the EU will remain a threat in the coming years. OLAF’s investigations on the undervaluation of textiles and shoes imported from China demonstrated that fraudsters will use any loopholes and that large-scale fraud can pay off. The digitalisation of the global economy and new economic models like e-commerce are rapidly shifting cross-border trade from a few large/bulk shipments to a large number of low-value and small shipments. Cross-border e-commerce trade of goods poses risks for the EU’s financial interests and for the Member States.

A particular risk is the abuse of the low-value consignment reliefs by: (i) undervaluing e-commerce trade goods; (ii) splitting consignments so that they fall below the relief threshold (EUR 150); (iii) importing commercial consignments declared as gifts; or (iv) importing goods ineligible for the relief.

Growing e-commerce requires that Member States’ adapt their customs control strategies to strike the right balance between trade facilitation/simplification and protecting the EU’s financial interests.

A flexible combination of different controls is therefore pivotal to close any loophole exploited by fraudsters and to enable customs to successfully respond to different economic models applied through technology (like e-commerce) and to effectively protect the EU’s financial interests while permitting trade facilitation and simplification.

Q. 1.5.a. Are authorised economic operators (AEOs) not excluded from such compliance checks? ☒YES, fully implementing the recommendation. Sweden does not exclude AEOs from any analysis or risk profiles.

Q. 1.5 Have you ensured that ex-post controls include verifications on traders’ compliance with customs duty relief for low-value consignments? ☒YES, partly implementing the recommendation. As mentioned in question 1.2 and 1.4 procedure code C07 low value consignments is only accepted in the customs clearance system if combined with procedures 4000, 4200, 4500. Consignments with values above 2500 SEK is re-routed for post clearance control. Swedish Customs is now working to correct declarations where procedure code C07 have been misused and charge the declarant of due duties. Courier companies have been audited during 2019 and these operators have included own system checks to prevent the misuse of C07 in their declarations. During 2020 Swedish Customs aim for the re-routing for post clearance control to be changed to pre-release controls instead. As a general rule customs value is always a topic of Swedish Customs’ post clearance controls. This includes control of the low value regulations. However, controls of the low value regulations might have a lower priority in a post clearance control if the risk evaluation shows higher risks elsewhere. Swedish Customs always conducts a risk valuation to pin point where the highest risks are in the control

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, fully implementing the recommendation. Artificial splitting is most common on exit declarations for customs warehousing. To prevent this, the customs clearance system for import does not accept the combination of procedure code 4071 with C07. From 19 February 2019 it is only possible to declare the C07 in combination with the following procedure codes: 4000, 4200, 4500.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, partly implementing the recommendation. The customs clearance system has a risk profile which randomly selects declarations in the system. This enables the authority to randomly detect goods that might be undervalued. Declarations selected by the random risk profile is then evaluated and might undergo physical inspections.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, partly implementing the recommendation: Low value consignments, procedure C07, with a total value above 2500 SEK is re-routed for post clearance control in the customs clearance system. Consignments with a value below 2500 SEK is automatically cleared. As the 150 EUR only consists of the value of the goods 2500 SEK also includes additional costs which should be added to the customs value. Gifts, procedure C08, is possible to declare with values above 500 SEK on a single item in the declaration. If the value is above 500 SEK the declaration is re-routed for post clearance control in the customs clearance system, similar to the cases regarding C07.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, partly implementing the recommendation. The solution used in Sweden means that Swedish Customs is notified for all arriving low value consignments via declaration CN22. Decision for release of goods is sent electronically from Swedish Customs to the designated UPU operator in Sweden. For consignments where VAT is payable additional information is added to the CN22 declaration to enable a correct calculation of the VAT amount. The designated UPU operator ensures that the consumer is willing to pay the VAT amount before clearance of the consignments, if not the consignment is returned to the sender.

Authorised economic operators (AEOs) are included in the control planning of the Finnish Customs. In our ex-post control plan 2020, we have two monitoring audits of AEO express couriers. In these monitoring audits, the Finnish Customs will evaluate the criteria of the AEO status. The AEOs internal control processes and the management of the low value consignments will be evaluated.

In the ex-post control plan 2020 of the Finnish Customs, we have one post-release audit of express courier. In this audit, the Finnish Customs will control the courier´s compliance with the LVCR.

The Finnish Customs have included one post-release audit of express courier in to our ex-post control plan 2020. In this audit, the Finnish Customs will examine also the splitting of consignments.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief? ☒YES, partly implementing the recommendation

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, partly implementing the recommendation

At this moment, we do not have a risk profile but we are planning to set a risk profile with random sampling.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒NO

Low-value consignment reliefs have been taken into account in the ex-post control planning of the Finnish Customs. The Finnish Customs has a control plan “Undervaluation through e-commerce” which is updated regularly. For example, we analyse the operators in cross-border e-commerce trade. For low-value consignments reliefs we have a risk profile with random sampling (Q. 1.3).For low-value consignment reliefs Finland have had short term operations (one day) concerning courier services. In the control plan, 2020 there will be an audit concerning a courier service. In the end of the year 2020 we will start to use a new risk profile system in import declaration system. The new system has improved features also in tackling the potential abuse of LVCR.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)? ☒YES, partly implementing the recommendation

Declared consignments of negligible value are also checked when carrying out post-clearance checks. If any irregularities are identified, measures are taken to additionally assess the customs debt.

Consignments submitted by Slovenská pošta, a.s. are inspected by customs officers daily, by physical checks, by scans, by sniffer dogs and in justified cases also by other control authority which are invited (Slovak Business Inspection, Health and Veterinary Inspections etc.). The risk analysis is based on the generating a risk profile in IT system and the experience of customs officers obtained by daily physical inspection of consignments. For targeting consignments customs officer check consignor’s country, repeating consignee, shape and size of consignments etc.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief? ☒YES, fully implementing the recommendation

The risk profile warning checks all consignments for which the national mode code C07 (low value shipments up to 150 €) is applied and these consignments, for which the code has been applied illegally, are regularly captured, as the value of the goods on the invoice was higher, or the goods were incorrectly declared.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly? ☒YES, fully implementing the recommendation

Customs clearance is done electronically, but not all procedures for postal consignment are fully electronic and automatic, Slovenská pošta, a.s. works on the development of the electronic declaration system related to the e-commerce.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief? ☒YES, fully implementing the recommendation

Slovakia has “Official-duty assessment system”, Slovenská pošta, a.s. - the posting department issues and sends to the consignee a "Postal notifications" - information on the arrival of a consignment which is subject of the customs supervision. Via the "Postal notifications", the consignee is notified of what kind of document or evidence must be presented to the customs office for the purposes of the customs clearance. If there is no doubt about the classification of the goods under the Customs Tariff, the customs clearance takes place resulting in the decision to release of the goods to the free circulation, which include the amount of the customs duty. The customs office hands over this decision in case of the representation to the Slovenská pošta, a.s., which delivers it to the consignee together with the consignment. Goods are considered as released for free circulation when delivered to the consignee. The customs debt and other payments are payable upon receipt of the goods in the form of a cash on delivery directly to the post office.

Goods are released into the free circulations, on entry of postal consignment - based on the CN22 or CN23 declaration, where the declaration is fully completed and the customs officer considers the data to be relevant. In other cases, when doubts arise as to the relevance of CN22 / CN23 or the data are incomplete, the Slovenská pošta, a.s. (the national post office company) requires from the consignee to prove the value of the goods.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)? ☒YES, fully implementing the recommendation Present process:

Financial Administration of the Republic Slovenia answer: In the ex-post controls, the authorised economic operators (AEOs) are not be excluded from such compliance checks. If the AEOs will be hit by the approach mentioned above, the controls will be performed independent of their status.

Financial Administration of the Republic Slovenia answer: All the consignments of e-commerce are entered into Import Customs System (ICS) with metadata (such as consignor, consignee, short goods description, the price, the transport fees, customs code – not obligatory), which are available in time of release goods for free circulation. The approach for selection traders ex-post controls in this area takes into account the parcels frequency of imports for particular consignor and/or consignee, the value of goods (low-value), the description/nature of goods.

Financial Administration of the Republic Slovenia answer: The prevention of artificial splitting of consignments, aiming to benefit from duty relief is ensured by Slovenian risk analyses system by means of risk profiles, and agreement between Slovenian post and Financial administration of the Republic of Slovenia.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation

Financial Administration of the Republic Slovenia answer: The Slovenian electronic customs declaration systems does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief. This is ensured by Slovenian risk analyses system by means of risk profiles.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, fully implementing the recommendation

Financial Administration of the Republic Slovenia answer: Financial administration of the Republic of Slovenia has enhanced and enforced Slovenian customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR) mostly by Slovenian risk analyses system (risk profiles).

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, fully implementing the recommendation

Ministry of Public Finances – National Agency for Fiscal Administration – General Directorate of Customs: The risk analyses performed for the subsequent control selection of customs declarations do not take into account the AEO criterion. This quality is applicable only at the time of customs clearance, subsequent verifications of customs declarations having as sole criterion the analysis of the way of declaring and establishing the customs value declared.

Ministry of Public Finances – National Agency for Fiscal Administration – General Directorate of Customs: Following the circular address no. 21985/4 / SIVCU / MG / 2018 all the territorial structures have the obligation to include in the quarterly programmes of post clearance controls of the customs declarations that raise suspicions regarding the way of establishing the customs value. ( DG BUGET Control Report no. 18-27-1).

Ministry of Public Finances – National Agency for Fiscal Administration – General Directorate of Customs: Identification of priorities within a risk area is based on information from bottom up signals, new legislation and available resources as well etc. For that purpose the risk analyses products used are: risk profiles, Inforisks, alerts etc. Those risk analysis products are mostly focused on LVCR, IPR etc. At the same time, the constant guidance provided to the customs officers by the Headquarters specialised staff had in view this specific aspect of the possibility to act by fraudulent people through the means of splitting the consignments, aiming to benefit from duty relief.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

Ministry of Public Finances – National Agency for Fiscal Administration – General Directorate of Customs: The effectiveness of the actions in the mentioned areas depends heavily on the use of adequate tools: identification of priorities, cooperation between the General Directorate of Customs and the national postal company and express couriers etc. Identification of priorities within a risk area is based on information from: bottom up signals, new (EU) legislation, available resources etc. For that purpose the risk analyses products used are: risk profiles, Info risks, alerts etc. Those risk analysis products are mostly focused on LVCR, IPR etc.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, partly implementing the recommendation

Ministry of Public Finances – National Agency for Fiscal Administration – General Directorate of Customs: In 2018 a permanent risk profile was implemented at national level in the IT system that imposed the verification of the customs value declared for all the declarations containing the additional code CO7.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, fully implementing the recommendation

·To continue to participate to the meetings organised under the Customs Against Internet Crime (C@IC) action, within the current 10th Action Plan of the Customs Cooperation Working Party 2020-2021

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)? ☒YES, partly implementing the recommendation -Ministry of Public Finances – National Agency for Fiscal Administration – General Directorate of Customs: The fast development of the international e-commerce of goods and the increasing of the volume of low value shipments, as a result of the orders made by using the Internet made the adaptation of the customs authority activity through appropriate measures necessary, in order to facilitate the legitimate trade, to ensure a fast customs clearance process, and at the same time, for managing potential risks related to safety and security. In this respect the General Directorate of Customs was focused on: 1. To improve cooperation with public authorities, national/international organisations and private stakeholders for identification and prevention of the customs and/or fiscal frauds in the field of cross-border e-commerce. For instance, in 2018 the General Directorate of Customs concluded a Protocol with the National Company Posta Romana SA; at the same time, there are also in place protocols concluded between Customs and the most important express courier companies, outlining each other’s roles and responsibilities. Those Protocols give a commitment to cooperation between high-level management. Romanian customs authorities have established inter-agency cooperation agreements with relevant government authorities to prevent illicit trade and fraud (e.g.: Romanian Border Police, National Police). 2. To participate to the Joint actions/national operations- i.e.: POSTBOX at European level focused on counterfeiting and drugs. At the same time national customs operations were carried out quarterly, focused on undervaluation of goods- LVCR. 3. To improve risk analysis and management, in order to prevent and fight against infringement of the customs/fiscal legal regulations on cross-border e-commerce. 4. To participate to and carry on training/guidance activities at national and local level. 5. To monitor monthly the results of the customs controls performed on the postal/express couriers consignments as far as the difference between the value declared and the value effectively paid which is to be reflected in the VAT and customs duties (if applicable). At the same time, the type of goods submitted to the customs clearance is already taken into account in order to avoid the impact on the national/EU financial interests (e.g.: intellectual property rights field). It can be highlighted that the Romanian Customs has developed an E-commerce Strategy containing measures meant to improve the customs controls on the postal/express courier consignments. The Draft is under consideration (in order to be approved) at the top management level.For the future the General Directorate of Customs has in view:

There are no measures in the national risk analysis system associated with the declaration systems that automatically exclude AEOs (Authorised Economic Operators) from customs control.

All economic operators, irrespective of their level of customs activity and interaction, are considered at the risk assessment stage with a view to selection for ex-post controls. However, so far, no operators exhibiting potential risk characteristics leading to a selection for ex-post controls have been identified with regard to relief linked to low-value consignments.

Risk profiles, which combine risk indicators, are applied. Some of these indicators combine the declared value and, for example, the average weight, identifying possible inconsistencies. The systems are set up to detect situations where a split consignment is declared under the same transport document. Measures to enable the potential identification of split consignments carried on different means of transport or under the cover of different transport documents are being examined for implementation. They are based on the analysis of the frequency associated with an operator and other data in the declaration. Such measures are likely to be introduced from next year (2021).

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

LVC declarations that qualify for duty relief pursuant to Article 23 of Regulation (EC) No 1186/2009 are customs cleared (released for free circulation and consumption) by virtue of their being presented to customs. Clearance through presentation to customs is processed using an electronic system that is linked to the risk analysis system (SSA - Sistema de Seleção Automática (Automatic Selection System)). The SSA systematically assesses the risk associated with each LVC. If a risk is identified through the combination of risk indicators based on risk profiles, the SSA selects the relevant consignments, which then undergo a physical check by a customs officer.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation

The system for automatically processing import customs declarations (STADA - Imports) does not allow the additional scheme code C07 to be declared if the value of the declared goods is in excess of EUR 150, nor does it allow code C08 to be declared if the value of the declared goods is in excess of EUR 45. In order to declare other additional scheme codes in the C series (Relief - Regulation (EC) No 1186/2009), the declarant must make a request to that end, to be analysed by the customs official responsible. STADA - Imports also requires that the TARIC code always be declared in box 33 (Commodity code) of the import declaration in order to ensure that prohibited goods cannot be cleared or that no import restrictions apply to the goods or, if such restrictions apply, that they are complied with.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, fully implementing the recommendation

Portugal has significantly enhanced its control strategy for combating traditional own resources fraud to cover all electronic customs declarations, and systematically applies risk analysis parameters based on risk indicators/risk profiles. Electronic declarations concerning e-commerce are covered by these measures when processing is mandatory. As regards the other declarations, PT is developing an IT support system for processing electronic declarations relating to low-value consignments, in line with the timetable for COM/MASP-C (the European Commission’s Multi-Annual Strategic Plan for Customs). In accordance with our planning, the system will be linked to a risk analysis system in which specific risk profiles will be entered in order to analyse and mitigate the risk associated with low-value consignments traded on electronic platforms (e-commerce consignments).

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)? SPF Finances (douane) ☒YES, partly implementing the recommendation

Under Articles 23 and 38 of the Union Customs Code and Article 35 of Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (‘the Implementing Regulation’), the customs authorities have a duty to monitor whether authorised economic operators continue to fulfil the conditions and criteria for that status. In accordance with Article 233 of the Implementing Regulation, the Polish customs authorities have drawn up control plans for that purpose.

This shows that authorised operators are not automatically excluded de jure or de facto from customs control. It is just that, as operators viewed by the customs authorities as reliable, such control is less frequent and designed to restrict their business as little as possible.

Under Article 38(6) of the Union Customs Code, an authorised economic operator enjoys more favourable treatment in respect of customs controls, including fewer physical and document-based controls.

Poland’s customs and tax control system is largely based on the results of risk analysis using electronic data-processing equipment. Operators are classified for control purposes on the basis of a risk analysis aimed at identifying and assessing risk and establishing the best way of limiting it. The strategy is backed up by an integrated risk-management system (ZISAR). The National Revenue Administration’s control activities cover all aspects of Union and national law. The priorities for post-release checks on goods are the result of analyses carried out by risk-analysis units at regional level and guidance from headquarters. Operators holding customs exemptions for low-value consignments are therefore subject to the general rules of Union and national law governing the classification of operators for customs and tax control purposes. The control of postal consignments is governed by Regulation of the Minister for Development and Finance of 23 February 2017 on controls on postal consignments (Journal of Laws of 2017, item 400).

In the system handling import declarations, the declaration of exemption from customs duties of consignments up to a value equivalent to EUR 150 (code C07 – relief under Article 23 of Regulation (EC) No 1186/2009) is flagged up so that the system operator checks that the value of the consignment does not exceed the equivalent of EUR 150. If the goods are found to exceed the equivalent of EUR 150, taking into account cases of artificial splitting, the customs authority can refuse to accept a declaration claiming duty relief (code C07) or accept the declaration and issue an assessment notice.

1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

The National Revenue Administration operates an automated risk-analysis system. The results of such analysis depend on the scope, completeness, accuracy and quality of the data in import declarations. A risk profile is created in the system using an algorithm that identifies and verifies the specific data in the individual fields of the declaration concerning a consignment (e.g. the customs value, description of the goods, customs tariff code, name of the operator, country of origin, etc.). In the case of the data entered in the declarations submitted for each individual consignment, these data are sent from the operations system to the automated risk-analysis system, triggering an automated analysis which, in the event of the identification in the declaration of fields containing data that are also criteria for the creation of the algorithm (risk criteria), activates a risk profile, displaying a message with information on the risk and the scope and method of control. In the case of summary import declarations, data are not entered in the operations system for each individual consignment, so there is no possibility of interaction: - between the automated risk-analysis system and the operations system, - consisting in the verification of data and the possible activation of a risk profile and the sending of a return message warning of a risk.

1.3 Have you ensured that your ECS systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation

Re c) If the goods are found to exceed the equivalent of EUR 150, bearing in mind the answer to (a), the customs authority can refuse to accept a declaration claiming duty relief (code C07) or accept the declaration and issue an assessment notice. As regards goods of a value exceeding the equivalent of EUR 45, bearing in mind the answer to (b), the customs authority may decide to issue an assessment notice on the basis of the results of checks on the declaration.

In other cases, e.g. courier consignments, electronic customs declarations are entered in the system for handling import declarations. However, because consignments of this type also benefit from VAT relief, they are declared in the form of a summary declaration (a number of consignments in a single-item declaration), so automatic checks on whether the value of a single consignment exceeds the ceiling for relief from customs duty (the equivalent of EUR 45) are not possible.

Re b) Goods declared as gifts (duty relief under Article 25 of Regulation (EC) No 1186/2009) are largely declared as postal consignments under Article 141(3) and the second subparagraph of Article 144 of Commission Delegated Regulation (EU) 2015/2446, which means that a customs declaration is submitted in the form of an act deemed to be a customs declaration using documents CN22 and CN23; the electronic customs declaration is not used in such cases.

Re a) In the system for handling import declarations, for goods with the additional procedure code C07 for customs duty relief for goods up to a value equivalent to EUR 150 (data requirement 1/11 from Annex B to Commission Delegated Regulation (EU) 2015/2446 - equivalent to the second section of box 37 of the SAD) a rule has been introduced triggering the need for the customs authority to check that the value of the consignment does not exceed the equivalent of EUR 150 (duty relief under Article 23 of Regulation (EC) No 1186/2009).

1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒ YES, partly implementing the recommendation

Owing to the need to introduce ‘sealing’ solutions for low-value consignments, a national analytical unit (Strategic Analysis Centre) is preparing the terms of reference and scope of operations for checking postal and courier consignments containing low-value goods.

Work is now under way to adapt the customs clearance model for goods in consignments carried by postal and courier services. This is connected with the entry into force on 1 January 2021 of new tax rules, namely the VAT e-commerce package that translates into changes to EU customs rules through amendments to the Union Customs Code Delegated Regulation and the Union Customs Code Implementing Regulation. In the case of postal traffic, the amendments will have a broader reach than the VAT e-commerce package, as they will tie in with changes in Poczta Polska S.A.’s role in customs formalities. This change will see the postal operator making customs declarations as the indirect representative of the consignees of postal consignments. Introducing the changes arising from the new clearance model entails adjustments to the national IT systems handling postal and courier traffic, major organisational changes and amendments to national law, especially tax law and customs rules, in particular the Regulation of the Minister for Finance of 17 August 2016 on customs declarations in postal traffic (Journal of Laws, item 1293).

In the light of the above actions and Article 144 of Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code, a new customs clearance model was designed for postal traffic. The document proposes new legal, organisational and IT solutions connected with the need to introduce solutions ‘sealing’ traffic in low-value consignments (e-commerce).

In September 2018 the National Revenue Administration (KAS) started work on optimising the clearance and control of e-commerce consignments. The main aim was to assess the amount of duty that might be raised in the event of 100% checks on packages, assuming that each package was a mail order delivery, and the time and money it would cost the Administration to do so. The checks suggested that it would take an official assigned to carry out a 100% check on a consignment 1 working hour to receive and process the documents received from the consignee and to check them against the customs declaration.

1.1 Have you enhanced and enforced your customs control strategies for cross-border e commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, partly implementing the recommendation.

Ex post controls are carried out based on risk analysis. The risk “economic operator” is taken into account in the selection of cases subject to ex-post controls.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, fully implementing the recommendation

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation

There are logical routines in the electronic customs systems which check the submitted data to exclude the risks of submitting falsified declarations. Whenever necessary these routines are supported by specific risk profiles.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, fully implementing the recommendation

Austria applies a multi layered risk analysis and control approach following the principles “control when required, where required and with the most appropriate control measure”. The Austrian risk management approach in the field of low value consignments is a combination of specific electronic risk profiles, risk profiles with a minimum control quota and focal control operations beside the electronic targeting system.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, fully implementing the recommendation

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, fully implementing the recommendation

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation

We don’t have implemented this in our system due to the fact that the customs value is not the same as the intrinsic value of a consignment (insurance costs and freight are not included).

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒NO

E-commerce: We started with a number of e-commerce companies to decrease the risk of low value consignments, this is done in close cooperation with the tax authorities and FIOD. Based on the conclusions of the audit of the European court of Auditors (ECA) regarding VAT and customs duties The Netherlands concluded a number of enforcement activities. Those activities were focusing on the import declarations and post clearance audits.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, fully implementing the recommendation

By artificial splitting, it is being understood that an individual may order 100 pieces of product ‘A’ from supplier ‘X’ and then orders the supplier to ship the goods in 4 different consignments of 25 pieces each so that the value of each consignment will not exceed 150 Euro. The assumption here is that the 4 consignments are delivered under 4 different transport documents with the consignor bearing Supplier ‘X’ and the consignee bearing the name of the individual who ordered the goods in the first instance. In this instance the Customs system does not have the capabilities to highlight that these four consignments cumulatively form one whole original consignment, the value of which exceeds 150 Euro. In this vein, the Department is eager to learn whether such a detection mechanism exists and how it works so that it can be deployed locally.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒NO

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly? ☒YES, fully implementing the recommendation

A change (upgrade) in the Customs electronic system will be requested from our service provider to address points (a), (b) and (c) of this question.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief? ☒NO

The Customs Electronic System does not cater for detection of such declarations however a selection of these declarations are still verified through post clearance checks and through random selection.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒NO

In the light of the above, automatic, systematic risk assessment will be extended to all AEOs, and preferences in relation to customs controls will be granted to AEO permit-holders only on the basis of experience gained in the course of conducting the controls.

During the centralised risk analysis, selection of AEO permit-holders for customs controls with regard to financial risks was not automatically adjusted to take account of the potentially smaller number. Unit B.1 of the European Anti-Fraud Office (OLAF) has visited Hungary on several occasions in recent times. During these visits, and in the course of the TOR inspection on the topic of undervaluation carried out in 2019, it was pointed out that AEO permit-holders cannot automatically be excluded from selection based on a risk assessment. According to Recommendation 1 featuring in point 9.1 of Chapter 9 (Summary and Recommendations) of the 2017 PIF report, a strategy must be applied to all types of customs controls and to all operators, part of which also includes a risk-assessment-based customs control of operations performed by AEO permit-holders.

Verification of low-value consignments is conducted as indicated under the previous point, and authorised economic operators are not excluded from targeted selection for these verifications. The authorised economic operators are not excluded from risk assessment procedures, except for security- and defence-related risk management. In that case, holders of the AEO-C permit are to be considered as if they are not AEOs. Holders of an AEO-F permit (also holders of an AEO-S permit) who, during the authorisation process, were also subject to analysis from a safety and security perspective, are granted the preferences they are due in accordance with Commission Implementing Decision of 27 April 2016 establishing, pursuant to Regulation (EU) No 952/2013 laying down the Union Customs Code, detailed rules for determining common risk criteria and standards for safety- and security-related risk analysis for the harmonised application of certain customs controls.

During post-release controls, verifications relating specifically only to those controls were not conducted, but the post-release controls did, among other things, also focus on detecting under-valuation. Those same controls also involved targeted checks of the legality of recourse to some duty relief. Since post-release controls are imposed in the light of a preliminary risk analysis, low-value consignments regularly arriving in large numbers are examined as part of targeted inspections above and beyond the inspection plan, in cooperation with the risk analysis department.

Taking into account the findings of the judgment in case C-7/08 Har Vaessen Douane Service BV v Staatssecretaris van Financien), the customs data processing system does not permit preventive customs clearance in customs procedures requested under procedure 4000 C07. It should nevertheless be pointed out that the customs control strategy drawn up by the NTCA and mentioned under Q.1.1 does address such risks and their management. That strategy requires the relevant NTCA departments to consistently review whether there are trends emerging suggesting that large consignments contain several smaller consignments to enable the value of some consignments to stay under EUR 22.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

On the basis of the results of the review of the risk analyses and of the existing and newly-established risk profiles, additional profiles can be generated.

- undervaluation of products covered by headings 3004, 9002 and 8523, which have been registered as of low value.

For low-value consignments, more risk profiles have been put in place since the middle of 2019 onwards. These check the duration of the conditions for customs and tax exemptions and, where necessary, systematically signal to the performer of the customs procedure what risk has been identified and what measures it is justified to introduce to deal with the risk indicated. Since these profiles have been in effect, they have generated 804 hits, and measures were introduced in 160 of those cases. In addition, data analysis was conducted with regard to all import procedures launched in application of Council Regulation (EC) No 1186/2009 setting up a Community system of reliefs from customs duty. On this basis, an additional three profiles will be generated to address the following risks:

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation

Where the scope of items (e.g. items subject to thresholds or quantitative limits) under Council Regulation (EC) No 1186/2009 setting up a Community system of reliefs from customs duty permitted, filters were incorporated into the customs data processing system (through IT development) and, in certain cases, systematic risk profiles were generated.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief? ☒YES, fully implementing the recommendation

Cross-border e-commerce in particular creates possibilities for the abuse of low-value consignments reliefs, requiring the Customs authorities to take coordinated action to prevent, detect and contain them and ensure traditional own resources are properly recovered. As a rule, the legal frameworks and possibilities in law for action by the Customs authorities are provided for in the Union’s customs legislation, which does not recognise e-commerce as a separate concept and does not prescribe separate procedures relating to it. With regard to cross-border e-commerce, the National Tax and Customs Administration (NTCA) drew up a separate strategy for 2020, taking into account the initial recommendation made in the PIF report for 2018. On 1 January 2021, an EU package will enter into force that will fundamentally change how small-value consignments are handled: VAT will have to be paid on them irrespective of the amount involved and, to ensure VAT is recovered, data will have to be submitted in advance. Basically, the centralised operational risk assessment incorporated in the processing of customs procedures serves to eliminate possible abuses. However, the Customs administration receives data only about consignments with a value exceeding EUR 22, which the customs data processor allows to be entered into the system. The risk assessment is therefore automated. Consignments registered as having a value of less than EUR 22 may not be recorded in a customs declaration, so the customs authority does not possess the data on the basis of which those items could have been made subject to centralised operational risk analysis. Low-value consignments delivered via e-commerce are typically, though not always, sent by mail or courier, so the task falls specifically within the remit of the NTCA’s Airport Directorate. There is close cooperation between postal and courier services; the scope and tasks of Customs and the postal services are laid down in so-called ‘technological agreements’. In 2019, the NTCA’s Airport Directorate inspected a total of 929,893 consignments; of these, 87,711 were selected for further inspection following a risk assessment. If the customs inspection concluded that the value of goods in the consignment exceeded EUR 22, the NTCA’s Airport Directorate requested documents furnishing proof of the true customs value (the original invoice and proof of payment) from the customs broker. On the basis of the documents provided, more than 80% of the items selected revealed that their respective consignments had arrived undervalued in order to evade customs and VAT payments. However, a declaration of the true customs value is submitted on the basis of the documents enclosed by the customer, so the goods can be released for free circulation only when the customs and VAT payments have been made. It should also be pointed out that, on several occasions in 2019, an inspection revealed other infringements. For example, goods infringing intellectual property rights or products subject to prohibitive or restrictive measures were detected in consignments registered for a duty-free procedure. In the light of the above, it can be said that, both for consignments of less than EUR 22 in value and those of more than EUR 22 in value, the NTCA’s Airport Directorate implemented measures in keeping with the objectives of the above strategy by carrying out a centralised operational risk analysis with a full manual handling risk assessment or detection activities inherently linked thereto.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, fully implementing the recommendation

The Audit Inspection regularly monitors LVCR imports. Searches are carried out manually and focus on consignees and as well as on goods. The purpose of the checks is to detect commercial networks and goods’ under-valuation.

Making LVC data available by electronic means allows inter alia the alphabetic sorting of operator names, which is efficient in this regard. Furthermore, the detection of this risk is in the scope of post-clearance checks.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, fully implementing the recommendation

For this purpose, apply electronic risk profiles as well as random selections. Any available risk information on LVC is assessed and the necessary risk profiles are created whenever relevant.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly? ☒YES, fully implementing the recommendation

Customs implemented both declaration processing and risk rules in their electronic customs clearance system in order to prevent the misuse of relief codes. AEO’s are not excluded from these rules. Post-clearance controls by Audit unit also cover declarations declared under LVCR.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief? ☒YES, fully implementing the recommendation

In addition to the general electronic customs clearance system (PLDA IETA) and its rules engine applicable for electronic customs declarations, Customs deployed an IT solution (DAkOTA) especially dedicated to electronic risk analysis of structured pre-arrival consignment-level data related to low value shipments. This system is used to perform pre-arrival safety & security, national prohibitions & restrictions and fiscal risk analysis. The data is exchanged on a regular basis with LU competent authority for VAT. Customs controls are based on electronic risk profiles as well as on manual selection by customs officers. This dedicated IT solution for LVC risk analysis was set up in order to best meet the provisions of art. 104 (Waiver to lodge entry summary declarations in regard of LVC < 22 EUR) as well as of art. 141 (Acts deemed to be a customs declaration, LVC < 22 EUR) of Commission delegated regulation (EU) 2015/2446 of 28 July 2015. DAkOTA is primarily used for risk analysis purposes and the data provided there is not to be considered as electronic customs declarations as such. The latter are lodged in PLDA IETA whenever required.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, fully implementing the recommendation

The ex-post checks also include the checks of the compliance of customs declarations made by AEO to the respective legal acts. In 2019, 1670 customs declarations were checked ex-post made by 41 AEOs.

Ex-post controls represent the controls of low-value goods consignments as well. In 2019, ex-post controls covered more than 700 low-value goods consignments, of which about 300 and about 400 were cleared by natural and legal persons, including AEOs respectively. Out of the 700 checks 500 involved the provision of the customs ex post with additional information and documents by the persons and 200 low-value consignments were selected for inspections ex post at the customs initiative of which more than a half were subject to the breaches of the customs declaration of goods.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation.

In the cases described both in paragraph 1 and 2, the Lithuanian Customs ensures an appropriate applucation of the provisions set out in Council Regulation (EC) No 1186/2009 of 16 November 2009 setting up a Community system of reliefs from customs duty.

(b) where the value of goods carried in small consignmnets exceed EUR 22, a standard customs declaration is subject to submision on the electronic system MDAS and an automated risk assessment is applicable.

(a) low value good (up to EUR 22) carried in small consignments (e. g. by Express courriers) may be subject to oral declaration. In these cases, local risk may be applicable.

Where criteria set out in (a)-(c) are not met or where the senders or receivers of the goods whish to declare the goods themselves (having informed the Lithuanian postal undertaking about that in writing (e-mail, phone) prior to the provision of the goods in postal consignments to the customs, a standard electronic import declaration should be submited on the electronic Customs Clearance Systam (MDAS). Therefore, here an automated risk assessment is applied.

- where value of the goods in the postal consignment is higher than EUR 150 Eur but lower than EUR 1000, the customs calculates the customs duty, excise and VAT on importation A local risk is applicable and all the goods brought in postal consignments are subject to customs controls by scanning.

-where value of the goods in the postal consignment is higher than EUR 22 Eur but lower than EUR 150, the customs calculates the VAT on importation;

(AB Lietuvos Pastas is the postal service provider in the Republic of Lithuania. Therefore, AB Lietuvos Pastas alone may carry ou the import, export and transit of postal consignemnts by using CN22, CN23 form declarationas in the Republic of Lithuania).

(a) where value of the goods in the postal consignment does not exceed EUR 1 000;

1. In accordance with Article 141 (3) and (4) and Article 144 of the Commission delegated Regulation (EU) 2015/2446, postal consignments are declared by providing the forms defined by the Universal Postal Union (CN22, CN23, etc.):

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, partly implementing the recommendation

The Customs of the Republic of Lithuania has developed and approved its Operational Strategy in the Area of Controls that defines the fields, methods, organisational measures and actions of the controls. The control of e-commerce is among the fields of controls defined in this Strategy. To ensure the customs control in the manner prescribed by the law, the Customs of the Republic of Lithuania carries out the all the customs controls by applying various methods and measures that are, in its view, necessary to ensure the right application of the customs operational rules and other legal acts regulating the movement of goods between the customs territory of the Community and the third countries or in the customs territory of the Community. The customs controls are ensured in the following three stages 1) prior to the customs clearance of goods; 2) at the time of the customs clearance of goods; 3) post to the customs clearance and release of goods. The controls of the goods at the time of the customs clearance and after the customs clearance is based on the risk assessment results. The detailed customs valuation control at the time of the customs clearance and after the customs clearance is regulated by the Rules of Controls of the Customs Valuation of Imported Goods approved on 28 April 2004 by Order No. 1B-431 of the General Director of the Customs Department under the Ministry of Finance of the Republic of Lithuania. The above-mentioned Rules indicate the measures applicable to the controls of customs valuation, the items and documents subject to controls and decisions to be taken by the customs official performing the controls.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, partly implementing the recommendation

Authorised economic operators (AEOs) are not excluded from checks during customs clearance as well as from post-clearance checks.

It is not common practice to carry out post-clearance checks on low-value consignments, since the benefits are disproportionate to the amount of recovered duties. In Latvia, controls for small-value shipments are carried out during customs clearance stage. However, where there is an obvious irregularity and customs debt is more than EUR 10, customs declarations are selected for post-clearance verification.

Consignees who receive a lot of low-value consignments in short time period are identified for the risk of unregistered business, therefore National Customs board of Latvia is sending this information to authorised authority in the State Revenue Service to carry out audits.

Cases of artificial splitting of consignments are identified in the post-clearance process, by analysing the consignees list and by selecting the consignees with the biggest number of submitted declarations. National Customs board of Latvia is sending the information to authorised authority in the State Revenue Service to carry out audits.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, fully implementing the recommendation

The possible unjustified use of customs tax reliefs for low-value consignments is prevented by risk profiles designed to select consignments of goods to in-depth customs control. For postal consignments one of main risks is undervaluation and specific risk profiles have been set up to tackle this. Risky companies and natural persons are profiled, but taking into consideration the huge amounts of postal consignments main risk mitigation measure is random profiles with specific criteria. Consignments where customs debt is less than EUR 10 may not be charged (not recovered) in accordance with Article 88 of Regulation 2015/2446. It is taken into account in the preparation of risk profiles.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation.

Electronic customs data processing system does not allow to automatically apply claimed duty relief on postal consignments with a value of more than EUR 150.Risk profile has been created especially to control gifts and goods eligible for relief (additional procedure C08 (consignments sent from one private individual to another), 59S (VAT exemption) and 29S (Customs duty: 2.5% for goods received by individuals in consignments from private persons or travellers' personal luggage)).

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, fully implementing the recommendation.

Since 19 November 2019 in Latvia import customs declarations must be lodged for postal consignments. This functionality has been introduced in the national electronic customs data processing system (EMDAS). A strategy of control for postal consignments has been developed and put into practice.Natural persons declare consignments with a value exceeding EUR 22. Import customs declarations for postal consignments are released after the risk analysis has been done. Consignments with value of less than EUR 22 are subject to control measures within the Customs Control Point. Consignments are diverted for control in the event of justified suspicions or random selection. Risk mitigation measures are also implemented for customs declarations with total amount more than 500 (EUR or USD) with a view to preventing unjustified use of the additional procedure C07( consignments of negligible value).

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, fully implementing the recommendation

During manual check of manifest report, customs officers are trying to detect shipments that may concern the same consignment. Such cases have very rarely been identified.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

The risk analysis on low value goods is done manually by customs officers who select for control goods suspected to be undervalued. About 2% of the consignments that are selected for control found to be undervalued.

Q. 1.3 Have you ensured that your ECS systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒ YES, partly implementing the recommendation

Specifications (as rules) were created in the national application to prevent the above cases from being submitted.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, fully implementing the recommendation

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒ NO

AEO operators, despite being considered among the least at-risk economic operators, are not excluded from the possibility of being subject to a PCA, as foreseen in the document issued in 2017 by the Anti-Fraud and Control Directorate of the Customs and Monopolies Agency.

Specific indications issued in the 2017 in which, among other things, the selection of operators for PCA involves also who import goods at risk of under-invoicing. In addition, the SIDDA IT procedure carried out a periodic detection of the anomalous values of certain parameters of customs declarations (statistical value/weight; additional statistical value/additional unit [if available]; additional weight/unit [if available]). Based on these findings, the Statistical Analysis Office sent an e-mail to the Registration Offices (Customs/S.O.T.) for each (single) transaction that was found to be outlier for the purposes of ex post controls. Specific guidelines for combating under-invoicing in after-examinations are also included in the guidelines for the controls issued in the 2011. It is also pointed out that - the Italian Government has introduced specific rules for strengthening the information and control activities of the Customs Administration, for the fight against value fraud. In particular with Law 246/2006, the legal instruments available to this Agency for the fight against under-invoicing have been further enhanced, introducing the possibility of acquiring data and documents related to the costs of transport, insurance, freight and any other cost element useful to determine the value in customs goods.

Regarding the traffic B to B the answer is “yes partially” because we are planning to set up guidelines focused on the prevention of the artificial splitting of consignments. These guidelines are going to be issued taking into account the specific future results of the IOSS working group of the DG Taxud. Regarding the traffic B to C the answer is “no” due to the specific guidelines drawn up in the IOSS working group of the DG Taxud. These guidelines say that “each order is considered a separate supply irrespective of whether it is a single vendor or underlying supplier selling via electronic interfaces. As each separate order/supply does not exceed EUR 150, the IOSS should be applied by the underlying supplier/electronic interface registered in the IOSS. If multiple orders are packed together they will be considered as single consignment”.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation

Given that the concept of intrinsic value expressed in the application is not applicable as it refers to future developments in the field of ecommerce; the following is represented:In application of the recommendation 1 first point the controls currently implemented in the national IT system ensured not automatically apply claimed relief to low value shipments when the value presented to customs exceeds € 150;The identification of "gift" shipments is not currently detectable by the IT system as this indication is contained in box 44 in the free text subfield.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, partly implementing the recommendation

The answer "yes partly" is justified by the "Memorandum" stipulated by the Customs and Monopolies Agency that allows the operators to use a single customs tariff code in cases of declarations of goods under LVCR.Anyway, specific risk profiles have been set up within the system of selecting customs declarations carried by the main operators in the sector. A working group has been set up, coordinated between central and local offices, dedicated to carrying out specific analyses, monitoring and controls at express and postal courier companies.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, partly implementing the recommendation

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

No customs declaration is submitted for small value consignments, under 22 EUR, and no risk analysis profiles can be applied.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, partly implementing the recommendation

Customs declarations used for declaring these kinds of duty relieves are under control by risk analysis profiles. There is no automatic applying of this duty relief. However, consignments under 22 EUR of value are not declared by a customs declaration.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, partly implementing the recommendation

Upgrades and improvements are planned for the new customs declaration (H7) which will be in production from 1 January 2021. By then, the current system cannot be upgraded.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒NO

In France, AEOs are not excluded from any type of checks. They only benefit from a reduction to certain rates of checks during customs clearance of goods according to the results of a standardised preliminary evaluation of trader risks. This reduction only exists for own resources checks, in line with the regulations. The reduction is only applied to goods declared as conventional freight and does not apply to express freight.

The French customs authorities recently implemented a new investigation strategy for e commerce flows with values lower than EUR 150. Customs services will carry out shorter inspections and investigations, to make the customs clearance procedure more difficult for traders who have been identified as unscrupulous. The objective is twofold: to harm traders who do not comply with the rules, while also working proactively with logistics providers so that they operate in line with the regulations.

Regular meetings between stakeholders make it possible to take appropriate measures to combat fraud. They also shed light on the difficulties encountered by the investigators: the large number of traders, the lack of response to rights to disclosure, etc.

The main objective of the investigations is to detect and punish undervaluation (from the first euro for VAT for mail-order, and from EUR 150 upwards for customs duties). One of the main difficulties is in recalculating the customs value. As the invoices are rarely added to the packages, collecting the invoices from the recipients is a complex and time-consuming process. Methods for calculating the customs value given in the Union Customs Code are not suitable for recalculating e-commerce values.

Yes, ex-post controls are carried out by authorities at a local and national level. At national level, the National Directorate for Customs Intelligence and Investigations (Direction Nationale du Renseignement et des Enquêtes Douanières, DNRED) has a dedicated division made up of a team of investigators specialised in e-commerce fraud. The national and local units rely on the expertise of this division in order to uncover and block tax evasion schemes. The aim is also to establish monitoring methods and a suitable inspection policy.

This type of risk is not taken into account by our customs clearance IT system (Delta), but will however be dealt with as part of the update to our declaration targeting IT system (RMS).

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒NO

Random selection checks during customs clearance: The French customs authorities have decided to continue to give staff the possibility of randomly checking declared goods, although automated selection is the only way to check declarations lodged for conventional freight.

Combatting undervaluation is a priority for the French customs authorities. The objective is both the recovery of customs duties and the recovery of VAT. The French customs authorities are currently updating their targeting IT tools, particularly the RMS application, so that the H7 declaration can be used. It has been decided that checks on flows cleared through customs using the H7 declaration will be carried out following an automated risk analysis but also by random selection.

Risk analysis and automated targeting: We have defined risk criteria and have integrated risk profiles into our IT system. Indeed, the French customs clearance system Delta is connected to an application specifically dedicated to automated risk analysis (RMS or Risk Management System). Risk profiles can be integrated at local, regional or national levels. These profiles are aimed in particular at detecting customs undervaluation.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation

If the codes are not provided, the goods are taxed and the amount of duties and tax are calculated automatically.

- this code generates an automatic admissibility check in Delta to ensure that the value declared in box 42 of the SAD does not exceed EUR 45.

- the trader must include an additional Community code (C08) in the customs declaration, used to declare C2C goods with a value lower than EUR 45;

B/ For non-trade flows (C2C): VAT and duty-free entry are set at EUR 45. Duty relief is granted subject to the verification of the following two conditions:

- this code generates an automated admissibility check in Delta to ensure that the value declared in box 42 of the customs declaration does not exceed EUR 150.

A/ For trade flows (B2B and B2C): The French customs clearance system, Delta, is programmed to not grant relief from customs duties automatically for goods with a declared value lower than EUR 150. Automated checks have been put in place to ensure duty relief is granted appropriately. Duty relief is granted if the following two conditions are met:

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, fully implementing the recommendation.

Low value consignments are handled electronically and are subject to checks. Risk analysis and investigations are carried out in order to detect undervaluation. This is to ensure that duty relief for goods with a value lower than EUR 150 has been lawfully granted (see answers below).

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, fully

Risk profiles are in force, but splitting is very difficult to detect. In case of detection, proper measures will be applied.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

Risk profiles have been implemented for control in Simplified Customs Declarations in low value consignments. 194 specific and 3 random risk profiles have been in force in 2019. 72.400 customs declarations have been controlled due to this 197 risk profiles.

Q. 1.3 Have you ensured that your ECS systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, fully implementing the recommendation

Intrinsic value is not a data included in the customs declarations. Traders have to request the exemption including the corresponding codes in box 37.2 of customs declaration. Based on the customs value (and its adjustments) declared risk profiles are applied in order to detect incorrect declarations.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief? ☒YES, fully implementing the recommendation

Risk profiles are updated taken in account the new trends identified by the Customs Department of the Spanish Tax Agency.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, fully implementing the recommendation

IAPR (Independent Authority for Public Revenue) – CUSTOMS: The recommendation is applied in full where an import document (declaration) is presented on the basis of a local risk analysis, whereas in cases where an ‘oral’ import declaration (non-statistical SAD) is presented the recommendation is partially implemented.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, fully implementing the recommendation

IAPR (Independent Authority for Public Revenue) – CUSTOMS: There are general and specific risk profiles as well as randomness profiles. However, lack of data hampers the effectiveness of targeting and controls.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, partly implementing the recommendation

IAPR (Independent Authority for Public Revenue) – CUSTOMS: In the case of goods not eligible for exemption, the electronic system does not automatically apply claimed customs duty relief. In the other two cases the claimed customs duty relief is not automatically applied, but only after the special codes have been filled in. For a more comprehensive approach, customs officers make a primary inspection before the electronic submission of the document, where infringements are often found (e.g. false declaration as a gift/low value, etc.). Please note that there are inherent difficulties in managing the customs declaration as regards identifying risks.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, partly implementing the recommendation

IAPR (Independent Authority for Public Revenue) – CUSTOMS: The Operational Plan of the IAPR includes quantitative targets for controls on e-commerce consignments. The measures taken include the introduction of a primary inspection prior to submission of the document, stepping up the means of control (x-rays, radiation detectors, sniffer dogs), etc.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)? ☒YES, partly implementing the recommendation

2. Traders with 10 or more SADs within a 4 month period using the same CN code with code C07 in box 37, possible misuse of this code to avoid duty.

1. Use of C07 code in B37 (Consignments of negligible value) for Multi Item SAD where C07 code is present in some but not all items and B46 Stat Value is greater than 150 euro.

IE has a post clearance programmes unit in place that has planning policy in accordance with identified priorities with relevant monitoring and controls in place, utilising available risk analysis and risk assessment tools. Within our electronic Customs Risk, Intervention, Selection Programme (CRISP), there are categories of risk rules within which the risks surrounding low-value consignments are covered.

We acknowledge that the issue raises serious risks from a fiscal perspective and we are exploring the best avenues of approach with a view to full implementation by the date of the introduction of IOSS on the 01/01/21.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒YES, partly implementing the recommendation

We have specific risk profiles which systematically target potentially undervalued or incorrectly declared goods. As noted in our response to Q1.1 our profiles target a range of risk factors and we also target consignments randomly. Additionally, we have created profiles specifically targeting each commodity code in Chapters 61-64 of the CN (textiles and footwear). While we have a significant amount of profiles in place to target undervalued/incorrectly declared goods, large scale profiling is subject to the proportionality test and impact assessment so as to avoid excessive and unnecessary profile hits at our customs stations.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒YES, partly implementing the recommendation

Part (c): Although we do not have a built-in validation function within our system to identify goods ineligible for relief, we have we have a robust risk profiling system in place and in addition to this declarations can be subject random inspection or to a verification audit as part of our ongoing post clearance inspection programme.

Part (b): In our AEP system code CO8 is input in Box 37b for consignments where the customs value is less than €45. However, if the customs value input is above the threshold with C08 in Box 37b the appropriate rate of duty will be charged accordingly.

Part (a): In our e-customs declaration system (AEP) code CO7 is input in Box 37b for consignments of negligible value where the intrinsic value is less than €150. However, if the intrinsic value input is above €150 the appropriate rate of duty will be charged accordingly.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, fully implementing the recommendation

Response: To enhance and enforce our Customs Control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs , Customs Division has various risk profiles in place for Clearance and Simplified Declarations at National and local station level. The profiles target all or a selection of the following factors on declarations: Amount, Origin, Net/Gross Mass, Express Carriers, Consignors and item level. Profiles are created in proportion to the overall risk and are monitored regularly for effectiveness.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, fully implementing the recommendation

Q. 1.5.a. Are authorised economic operators (AEOs) not excluded from such compliance checks?☐YES, fully implementing the recommendation - All AEOs are covered with the same risk criteria as non-AEOs and are also included in the quality control checks.

According to article 37, § 4 of the Estonian Customs Act (https://www.riigiteataja.ee/en/eli/521012014009/consolide): (4) The customs authorities may refuse to accept separate customs declarations for parts of a consignment upon import if the value of a declared part of the consignment does not exceed the tax exempt limit. For express consignments with a commercial purpose the customs official checks manually if there is one single consignor, consignee and shipment document. For postal and express consignments declared by private persons the system checks automatically the tracking number and if the same number has already been used, then it cannot be used again.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☐YES, fully implementing the recommendation

100% of the parcels with the declared value below EUR 22.00 are directed for checking.

In the postal company, the employee performs the initial check (manual risk analysis) of the items and if there is a doubt, directs it to customs clearance. The postal workers are trained by the customs.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?

a)when the duty relief is claimed on the declaration, then the system checks if the use of this duty and VAT relief codes are justified;

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?

Our control strategy is based on the efficient risk analysis. Approximately 20% of the postal and express consignments declared by private persons are sent for checking on the basis of a specially created risk criterion. For postal and express consignments with commercial purpose a random selection criterion is applied. 100% of the consignments having a low value, which are sent from C2C as gifts, are directed for checking.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☐YES, fully implementing the recommendation

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?

As long as the commercial nature of a good is not foreseen as an indicator in the customs declaration, the information can only be derived from the content of the consignor / consignee data (i.e. indication of a legal entity like "GmbH" or "AG" which does not unambiguously indicate the commercial nature). Therefore only checks based on risk profiles are possible and have been implemented.

In the electronic customs clearance system (ATLAS) exists a mechanism that gives an indication to the user if the value of the goods exceeds EUR 150. The user decides whether to stop the process or not.

(a) the declared intrinsic value above EUR 150 and (c) on goods ineligible for relief? ☒YES, partly implementing the recommendation

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, fully implementing the recommendation

The Danish Customs Agency do not perform the compliance checks described in Q. 1.5. However, when AEOs dealing with low-value consignments get their certification, the operators’ processes are reviewed.

The Danish Customs Agency: For the time being, post release control (ex-post control) does not include verifications on traders’ compliance with customs duty relief for low-value consignments. However, the Danish Customs Agency has ongoing discussions with the designated postal operator concerning customs related issues, such as the handling of low-value consignments.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒NO

The Danish Customs Agency has implemented risk profiles that specifically select entries under the LVCR for control with focus on undervaluation and misclassification.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?

The Danish Customs Agency has implemented a “lock” in the system, which causes entries with a value above EUR 150 to fail if duty relief is claimed. Besides, a “lock” has been implemented in the system, which means that commercial consignments declared as gifts will fail unless it is stated to be a shipment from private to private. The Danish Customs Agency has not implemented anything concerning goods that are ineligible for relief.

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (c) on goods ineligible for relief?☒YES, partly implementing the recommendation

The Danish Customs Agency has for the time being not adopted a separate control strategy within the area of cross-border e-commerce. However, the Danish Customs Agency has enhanced its general focus on cross-border e-commerce, and therefore also on the potential abuse of low-value consignments reliefs (LVCR). To this end, the Danish Customs Agency e.g. carries out control actions focusing on fraud and abuse related to the import of low-value consignments.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)?☒YES, partly implementing the recommendation

Czech Customs Administration does not exclude low value consignments from its post release controls, but in case that the impact of such control has a low economic meaning and volume of the consignment is very high (about 30 million of separate parcels), priorities of post release controls are in different field. Taking into account the fact, that that consignees are mainly physicals persons, that have no obligation (according to Czech law) to hold any evidence (invoices, orders and so on), it would be extremely difficult to prove any breach after the release of goods.

While it is very difficult to set out a specific control measure which can be focused on artificial splitting of consignments, Czech Customs Administration is still discussing and preparing such measure which will be directly focused on that. At present time, controls and measures, which are focusing on such case, are made mainly on random basis in connection with other risks. It is like this because until today majority of customs declarations for consignment are under 22 € and are declared orally or by any other act. For the future, when obligation of electronic customs declaration comes into force, special measure will be set also for the e-commerce goods.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒NO

For certain high risky commodities (such as clothes, shoes, electronics, automotive parts) there are specific risk profiles set out. On global level, it is very difficult to set out a risk profile just for undervaluation, also because of high volume of consignments per year (there is about 30 millions of consignments forwarded to the Czech Republic just by the Czech Post). Certain risk profiles are still being prepared and discussed for future development.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?

Q. 1.2 Have you ensured that your electronic customs declaration system does not automatically apply claimed duty relief on goods with (a) the declared intrinsic value above EUR 150, (b) on commercial consignments declared as gifts and (wc) on goods ineligible for relief? ☒YES, fully implementing the recommendation

Czech Customs Administration uses focused risk profiles, set for specific risky commodities under 22 €, performed by competent officers on the control spot of the Customs offices. For the consignment over 22 € and below 150 € electronic risk analysis is performed, based on general and specific electronic risk profiles. There are no exceptions for AEOs. After 1 January 2021, electronic risk analysis will be expanded also on the consignments under 22 €.

Q.1.1. Have you enhanced and enforced your customs control strategies for cross-border e-commerce trade, particularly for the potential abuse of low-value consignments reliefs (LVCR)? ☒YES, partly implementing the recommendation

In addition, further to the findings made by the European Court of Auditors in its Special Report on e-commerce, the authorised economic operators action plan drawn up and sent to the European Commission includes a measure concerning the monitoring and control of express courier services recognised as authorised economic operators in respect of low-value shipments.

In the control plan, checks on express courier services recognised as authorised economic operators have been configured as a risk area. Authorised economic operators have to have internal controls capable of preventing and detecting irregular or illegal transactions, so their internal control systems are checked, in particular for potential irregularities in declarations for the release for free circulation of low-value consignments.

Authorised economic operators (AEO) are not excluded from risk analysis. Authorised economic operators are included in automated selection when preparing annual plans for post-release controls on declarations.

-invoices presented to the customs authorities when releasing low-value goods for free circulation that contain data diverging from those recorded in the company’s accounts, e.g. quantity, description of the goods, invoice value, etc.

-incorrect tariff classification and/or incorrect declaration of the origin of imported goods for the purpose of circumventing various import measures resulting from EU policies;

-the relief from import duties of goods contained in consignments with an intrinsic value exceeding the BGN equivalent of EUR 150;

In the 2020 Control Plan for post-release control under Article 48 of Regulation (EU) No 952/2013 of the European Parliament and of the Council and Article 84(1) of the Customs Act, approved by the Director of the Customs Agency (‘the Control Plan’), repeat checks/post-clearance controls on low-value goods entered for release for free circulation have been configured as risk areas. Check on low-value goods cover such potential risks as:

It is difficult to automate the process for screening consignments for artificial splitting with a view to benefiting from relief from duty, so we are preparing guidance in this matter.

Q. 1.4 Have you ensured that there are any specific control measures in place to prevent artificial splitting of consignments, aiming to benefit from duty relief?☒ YES, partly implementing the recommendation

Risk profiles have now been established for checking the declared customs value of all goods falling within Chapters 61, 62, 63 and 64 of the Combined Nomenclature (CN) of the European Union, and they do not exclude low-value consignments. Identical risk profiles have also been created for certain plastic products, toys, light fittings, handbags, articles of a kind normally carried in the pocket and certain devices used with telecommunications apparatus.

Q. 1.3 Have you ensured that your electronic customs declaration systems systematically detect potentially undervalued or incorrectly declared goods under LVCR by means of risk profiles or randomly?☒ YES, partly implementing the recommendation

Article 23(1) of Council Regulation (EC) No 1186/2009 of 16 November 2009 setting up a Community system of reliefs from customs duty currently grants relief from import duties for goods with an intrinsic value not exceeding EUR 150 per consignment dispatched from third countries, provided the goods contained in those consignments are not subject to prohibitions and restrictions. Article 58(14)(1) of the VAT Act (ZDDS) grants VAT relief for goods imported under the duty-free arrangements, provided the total value of the goods does not exceed BGN 30. In this context, no customs declarations are filed electronically for consignments of a value up to BGN 30. Such consignments are deemed to have been declared for release for free circulation under Article 141 of Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code. The act deemed to be a customs declaration is the consignment’s presentation to customs pursuant to Article 139 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code, provided that the data required are accepted by the customs authorities. In such cases, the risk analysis and the verification of compliance with the conditions for relief from customs duties and VAT are carried out manually using the data from the paper versi