COMMISSION OF THE EUROPEAN COftfllUNITIES 
C0M(Q4) 325 final 
Brussels, 20.07.1994 
94/0177 (ACC) 
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«•rf^r\ ,i ". M^~Û Proposal for a 
COUNCIL DECISION 
accepting on behalf of the Community Annexes E.7 and F.4 to the 
International Convention on the Simplification and Harmonization 
of Customs Procedures 
(presented by the Commission) 
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EXPLANATORY MEMORANDUM 
1. Council Decision 75/199/EEC made the Community a Contracting Party to the 
International Convention on the Simplification and Harmonization of Customs 
Procedures, known as the Kyoto Convention. 
2. Subsequent Council decisions have accepted on behalf of the Community the 
following eighteen annexes to the Convention. A.1, A.2, B.l, B.2, B.3, Cl, D.l, 
D.2, E. 1, E.3, E.4, E.5, E.6, E.8, F. 1, F.2, F.3 and F.6. 
3. In its present form the Kyoto Convention has thirty-one annexes; thirteen of them, 
therefore, have still not been accepted by the Community, which has nevertheless in 
the interim incorporated most of the relevant provisions into its customs legislation. 
Acceptance is therefore very much a formality. 
4. Article 5 of the Convention allows the Community to make acceptance of the 
annexes subject to reservations stating the differences between the provisions of its 
own legislation and those of certain Standards and Recommended Practices in the 
annexes concerned. 
5. Commission officials and representatives of the Member States have jointly carried 
out a full examination of both annexes, in the Committee for Customs Procedures 
with Economic Impact for Annex E.7 and the Customs Legislation Committee 
(International Organizations) for Annex F.4; they took into account developments in 
Community customs legislation, including the Community Customs Code and its 
implementing Regulation. 
6. The Committees' conclusions are set out in the appendices to Annexes I and II to 
this proposal. 
7. Adoption of the Decision by the Council will not affect the Community budget. 
CONCLUSION 
The Commission proposes that the Council: 
adopt Annexes E.7 and F.4 to the International Convention on the Simplification 
and Harmonization of Customs Procedures; 
designate the person empowered to notify the Secretary General of the Customs 
Cooperation Council of the acceptance on behalf of the Community of Annexes E.7 
and F.4, subject to the stated reservations. 
-I 
Proposal for a Council Decision 
of 
accepting on behalf of the Community Annexes E.7 and F.4 to the International 
Convention on the Simplification and Harmonization of Customs Procedures 
(94/. ./EC) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty estrablishing the European Community, and in particular its 
articles 113 and 228, paragraph 2, 
Having regard to the proposal from the Commission, 
Whereas, under Decision 75/199/EEC of the Councill, the Community has concluded 
the international convention on the simplification and harmonization of customs 
procedures (Kyoto Convention); 
Whereas the Annexes to the said Convention concerning the duty-free replacement of 
goods and customs formalities in respect of postal traffic can be accepted by the 
Commmunity; 
Whereas it is appropriate, however, to accompany this acceptance with certain 
reservations in order to take account of the special requirements of the customs union 
and of Community customs legislation; 
HAS DECIDED AS FOLLOWS : 
Article 1 
1. The following annexes to the International Convention on the Simplification and 
Harmonization of Customs Procedures are hereby accepted on behalf of the 
Community, subject to the reservations indicated: 
- Annex E.7 concerning the duty-free replacement of goods (Annex I to the 
present decision) with a general reservation and reservations with regard to 
Standards 3, 9 and 20 and Recommended Practises 11,13,16, 17 and 25. 
- Annex F.4 concerning the customs formalities in respect of postal traffic 
(Annex II to the present decision) with a general reservation and reservations 
with regard to Standards 19 and 26 and Recommended Practises 23, 24 and 
25. 
2. The texts of Annexes and the reserves expressed by the Community are contained 
at Annexes I and II. 
^JnoL 100 du 21.4.1975, p. 1 
> 
Article 2 
The President of the Council shall designate the person entitled to notify the Secretary 
General of the Customs Cooperation Council of the acceptance, on behalf of the 
Community, of the Annexes referred to in Article 1, together with the reservations 
indicated in that Article. 
Done at Brussels, 
For the Council 
The President 
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ANNEXI 
ANNEXE.7 
concerning the duty-free replacement of goods 
Introduction 
In most countries, national legislation contains provisions under which goods used to 
make products for export are not required to bear duties and taxes. 
The drawback procedure and temporary admission for inward processing allow a refund 
of, or conditional relief from, import duties and taxes to be grant ed in respect of foreign 
goods used to obtain exported products. 
In the case of the duty-free replacement of goods procedure, the subject of the present 
Annex, the technique employed is to grant exemption from import duties and taxes for 
goods equivalent to those which were in free circulation and were processed into 
products exported from the Customs territory. 
However, application of this procedure may be made subject to the condition that the 
importation of goods equivalent to those incorporated in the products previously 
exported is regarded by the competent authorities as beneficial to the national economy. 
Products manufactured from goods admitted free of import duties and taxes under this 
procedure may be put on the home market. Should they be exported, the duty-free 
replacement of goods procedure could again become applicable. 
Definitions 
For the purposes of this Annex: 
(a) the term "duty-free replacement of goods procedure" means the Customs procedure 
which permits the importation, free of import duties and taxes, of goods equivalent 
(i.e., identical in description, quality and technical characteristics) to those which 
were in free circulation and which were processed into products previously 
exported outright; 
(b) the term "import duties and taxes" means the Customs duties and all other duties, 
taxes, fees or other charges which are collected on or in connexion with the 
importation of goods, but not including fees and charges which are limited in 
amount to the approximate cost of services rendered; 
(c) the term "person" means both natural and legal persons, unless the context 
otherwise requires. 
Principle 
1. Standard 
The duty-free replacement of goods procedure shall be governed by the provisions of this 
Annex. 
Field of application 
2. Standard 
National legislation shall specify the circumstances in which the duty-free replacement of 
goods procedure may be granted and shall lay down the requirements which must be met. 
Notes 
1. The circumstances in which the duty-free replacement of goods procedure is allowed 
may be set out in general terms and/or in detail. 
2. The granting of this procedure may be made subject to the condition that the 
importation of goods equivalent to those incorporated in the products previously 
exported is regarded by the competent authorities as beneficial to the national 
economy. 
3. The benefit of the procedure may be reserved to persons established in the Customs 
territory. 
3. Standard 
At importation, goods equivalent to those which were in free circulation and which were 
incorporated in the products previously exported shall be afforded total exemption from 
import duties and taxes, subject to payment of any duties and taxes repaid or remitted on 
the exportation of the products. 
Notes 
1. The exemption from import duties and taxes may be granted in respect of raw 
materials and semi-manufactured products as well as to parts equivalent to those 
incorporated, without further manufacture, in the products exported. 
2. Goods such as catalysts and accelerators or retarders of chemical reactions which, 
on being used to obtain products for exportation with entitlement to duty-free 
replacement of goods, disappear entirely or partially during such use without 
actually being contained in the products for export, may be treated as goods used to 
obtain the said products and granted the same exemption from import duties and 
taxes. However, this exemption does not normally extend to mere aids to 
manufacture such as lubricants. 
(. 
4. Recommended Practice 
The benefit of the duty-free replacement of goods procedure should not be withheld 
solely on the grounds that the products are exported to a specific country. 
5. Standard 
National legislation shall specify the categories of persons who may receive an 
authorization for the duty-free replacement of goods. 
Note 
The holder of an authorization for the duty-free replacement of goods may be the 
exporter, the manufacturer or the owner of the exported products. 
6. Standard 
The benefit of the duty-free replacement of goods procedure shall be granted where it is 
possible to ascertain the use of the goods in arriving at the exported products. 
Note 
In order to ascertain the use of the goods in arriving at the exported products the 
Customs authorities may carry out controls during the manufacturing process or may 
have recourse to the record kept by the manufacturer of the products to be exported. 
Exportation of products with entitlement to duty-free replacement of goods 
(a) Formalities prior to the exportation of the products 
7. Standard 
National legislation shall specify the circumstances in which prior authority is required 
for application of the duty-free replacement of goods procedure and the authorities 
empowered to grant such authority. 
8. Recommended Practice 
Persons who carry on large-scale and continuous operations involving the duty-free 
replacement of goods should be granted a general authority covering such operations. 
9. Standard 
The description, quality, technical characteristics and quantity of the various goods which 
were in free circulation and are contained in the products to be exported with entitlement 
to duty-free replacement of goods shall be determined by the competent authorities on th 
basis of the actual conditions under which those products were obtained. 
> -
10. Recommended Practice 
In determining the quantities of the various goods contained in the products to be 
exported with entitlement to duty-free replacement of goods, the competent authorities 
should make allowance for losses and irrecoverable waste deriving from the 
manufacturing process. 
11. Recommended Practice 
Where products to be exported with entitlement to duty-free replacement of goods have 
reasonably constant characteristics and are obtained under clearly defined technical 
conditions, the competent authorities should establish standard quantity scales for the 
various goods contained in the products to be exported. 
(b) Declaration for exportation entitlement to duty-free replacement of goods 
12. Standard 
National legislation shall specify the conditions under which products to be exported with 
entitlement to duty-free replacement of goods shall be produced at the competent 
Customs office and a Goods declaration (outwards) shall be lodged. 
Note 
National legislation may provide that the Goods declaration to the exportation of the 
products must contain the particulars necessary to enable the Customs to determine the 
quantities of the various goods for which exemption from import duties and taxes will be 
claimed. 
13. Recommended Practice 
Where the competent authorities have not been able to give a ruling on an application for 
duty-free replacement of goods, the declarant should be authorized to export the 
products concerned without delay provided that the conditions prescribed are met and 
without prejudice to the final decision. 
14. Recommended Practice 
The national forms used for the exportation of products with entitlement to duty-free 
replacement of goods should be harmonized with the Goods declaration (outwards). 
(c) Examination of products exported with entitlement to duty-free replacement 
of goods 
15. Recommended Practice 
At the request of the declarant, and for reasons which they deem valid, the Customs 
authorities should, so far as possible, allow products for exportation with entitlement to 
duty-free replacement of goods to be examined on private premises, the expenses 
entailed by such examination being borne by the declarant. 
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(d) Authorized destinations of products exported with entitlement to duty-free 
replacement of goods 
16. Recommended Practice 
Provisions should be made to permit products for exportation with entitlement to duty­
free replacement of goods to be placed in free ports or free zones. 
17. Recommended Practice 
Provisions should be made to permit products for exportation with entitlement to duty­
free replacement of goods to be placed in a Customs warehouse with a view to 
subsequent exportation. 
(e) Certification of exportation with entitlement to duty-free replacement of goods 
18. Standard 
Where products have been exported with entitlement to duty-free replacement of goods, 
the Customs authorities shall issue to the declarant a document establishing his 
entitlement to import, without payment of import duties and taxes, goods equivalent to 
those which were in free circulation and which were contained in the products in 
question. 
Note 
The document issued to the declarant may consist of a copy, duly certified by the 
Customs, of the declaration for exportation with entitlement to duty-free replacement of 
goods, or may be made out on an appropriate form. 
Importation of goods 
19. Standard 
National legislation shall specify' the conditions under which goods which may be 
admitted free of import duties and taxes under the duty-free replacement of goods 
procedure shall be produced at the competent Customs office and a Goods declaration 
shall be lodged. 
Note 
National legislation may provide that the Goods declaration must contain the particulars 
necessary for authorizing exemption from import duties and taxes and that the entitling 
document(s) issued by the Customs authorities must be produced in support of that 
declaration. 
20. Standard 
The competent authorities shall fix with due regard to the commercial circumstances the 
time-limit for the importation of goods which may be admitted free of import duties and 
taxes. 
M 
21. Standard 
Provision shall be made to permit goods which may be admitted free of import duties and 
taxes to be imported through a Customs office other than that through which the 
products were exported. 
22. Standard 
Provision shall be made to permit goods which may be admitted free of import duties and 
taxes to be imported in one or more consignments. 
23. Standard 
Provision shall be made to permit goods covered by several documents establishing 
entitlement to importation under the duty-free replacement of goods procedure to be 
imported in one consignment. 
24. Standard 
Provision shall be made to permit goods which may be admitted free of impoit duties and 
taxes to be imported from a country other than that to which the products were 
exported. 
25. Recommended Practice 
Provision should be made to permit goods which may be admitted free of import duties 
and taxes to be imported by a person other than the exporter of the products, subject to 
compliance with the conditions laid down by the Customs authorities. 
26. Recommended Practice 
At the request of the declarant, and for reasons deemed to be valid, the Customs 
authorities should, as far as possible, allow goods which may be admitted free of import 
duties and taxes to be examined on private premises, the expenses entailed by such 
examination being borne by the declarant. 
27. Standard 
National legislation shall specify the Customs treatment applicable when products which 
have been exported with entitlement to duty-free replacement of goods are re-imported. 
Information concerning the duty-free replacement of goods procedure 
28. Standard 
The Customs authorities shall ensure that all relevant information regarding the duty-free 
replacement of goods procedure is readily available to any person interested. 
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Appendix I to annex I 
Observations and reservations to be entered by the Community 
in respect of Annex E.7 to the International Convention 
on the Simplification and Harmonization of Customs Procedures 
1 General reservation (general observation) 
Community legislation on inward processing covers most of the provisions of this 
Annex. However, in any areas not covered by Community legislation, Member 
States may, if necessary, enter their own reservations. 
2. Standard 3 
When import goods are entered under the inward processing arrangements in a 
Member State of the European Community other than the one where the 
arrangement was authorized and the inward processing operations effected, this 
Standard may not be applied unless certain conditions laid down in the Community 
legislation governing inward processing arrangements are met. 
Community legislation on value added tax does not provide for a non-application in 
this case. However, the registered tax-payers concerned generally dispose of a right 
to complete deduction of the VAT due for the imported equivalent goods. 
3. Standard 9 
This arrangement is generally granted in the Community on the condition that the 
goods to be imported and the goods used in the processing of the exported product 
must fall within the same code of the Community combined nomenclature, be of the 
same commercial quality and have the same technical characteristics. 
4. Recommended Practice 11 
At present Community legislation on inward processing includes standard rates of 
yield for certain products only. 
5. Recommended Practice 13 
Community legislation provides for issuing processing authorizations with 
retrospective effect in exceptional, duly documented cases only, and then only if the 
application was made prior to the export declaration in respect of the compensating 
products being accepted. 
u 
6. Recommended Practices 16 and 17 
Under Community legislation there is no entitlement to duty-free replacement of 
goods for compensating products placed in free zones or warehouses until the 
products are actually exported. 
7. Standard 20 
Generally speaking, Community legislation allows six months from the expected 
date of exportation of compensating products (extendable by a further six months 
upon application by the holder of the authorization) to complete the importation of 
import goods. However, for certain categories of goods, the time-limits are shorter 
and cannot be extended. 
8. Recommended Practice 25 
Community legislation on inward processing stipulates, for certain cases, that 
evidence has to be presented proving that the advantages of the processing 
operations are restricted to the holder of the authorization. 
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ANNEX II 
ANNEX F.4 
Concerning Customs formalities in respect of postal traffic 
Introduction 
The post has always been one of the most widely used methods of sending not only 
greetings and information but also gifts and other goods from one person to another. 
The Customs are necessarily involved in international postal traffic since, just as in the 
case of goods imported and exported by other means, they have to ensure that the 
appropriate duties and taxes are collected, enforce import and export prohibitions and 
restrictions, and in general ensure compliance with the laws and regulations which they 
are responsible for enforcing. 
Because of the special nature of postal traffic, however, the Customs formalities in 
respect of items carried by post are somewhat different from those applied to goods 
carried by other means. While individual postal items are restricted in size, their numbers 
are enormous and, to avoid creating unacceptable delays, special administrative 
arrangements are necessary to deal, with them. These are made possible because in 
virtually all countries the postal services are furnished by public administrations or 
authorities, and the two public bodies involved in postal traffic, the post and the 
Customs, co-operate very closely with one another. 
In addition to this close co-operation between Customs and postal authorities at the 
national level, there is close collaboration at the international level between the Universal 
Postal Union (the international organization whose rules and regulations govern postal 
traffic) and the Council. These two international organizations have, for example, 
established a Contact Committee at which Customs and postal experts meet to discuss 
and find internationally acceptable solutions to problems which cannot be resolved 
nationally or bilaterally. 
Definitions 
For the purposes of this Annex: 
(a) the term "postal items" means letter-post and postal parcels; 
(b) the term "letter-post items" means letters, postcards, printed papers, literature for 
the blind and small packets described as letter-post items in the Acts of the Universal 
Postal Union currently in force; 
Note 
According to the Acts of the Universal Postal Union certain letter-post items are 
required to be accompanied by a Customs declaration form C 1 and/or form C 2/CP 
3 as appropriate; 
\l 
(c) the term "postal parcels" means items called postal parcels within the meaning of the 
Acts of the Universal Postal Union currently in force. 
Note 
According to the Acts of the Universal Postal Union postal parcels are required to 
be accompanied by a Customs declaration form C 2/CP 3; 
(d) the term "the Universal Postal Union" means the inter-governmental organization 
founded in 1874 by the Treaty of Berne as the General Postal Union which, in 1878, 
was renamed the Universal Postal Union (UPU) and which since 1948 has been a 
specialized agency of the United Nations (with headquarters in Berne); 
(e) the term "import duties and taxes" means Customs duties and all other duties, taxes, 
fees or other charges which are collected on or in connexion with the importation of 
goods but not including fees and charges which are limited in amount to the 
approximate cost of services rendered; 
(f) the term "export duties and taxes" means Customs duties and all other duties, taxes, 
fees or other charges which are collected on or in connexion with the exportation of 
goods but not including fees and charges which are limited in amount to the 
approximate cost of services rendered; 
(g) the term "Goods declaration" means a statement made in the form prescribed by the 
Customs by which the persons interested indicate the Customs procedure to be 
applied to the goods and furnish the particulars which the Customs require to be 
declared for the application of that procedure; 
(h) the term "clearance" means the accomplishment of the Customs formalities necessary 
to allow goods to be exported, to enter for home use or to be placed under another 
Customs procedure; 
(ij) the term "clearance for home use" means the Customs procedure which provides 
that imported goods may remain permanently in the Customs territory. This 
procedure implies the payment of any import duties and taxes chargeable and the 
accomplishment of all the necessary Customs formalities; 
(k) the term "examination of postal items" means the physical inspection of goods in 
postal items by the Customs to ascertain their nature, origin, condition, quantity and 
value; 
(1) the term "goods in free circulation" means goods which may be disposed of without 
Customs restriction; 
(m) the term "Customs control" means the measures applied to ensure compliance with 
the laws and regulations which the Customs are responsible for enforcing; 
(n) the term "release" means the action by the Customs to permit goods undergoing 
clearance to be placed at the disposal of the persons concerned; 
_m-
(o) the term "person" means both natural and legal persons, unless the context otherwise 
requires. 
Principles 
1. Standard 
The Customs formalities in respect of postal items shall be governed by the provisions of 
this Annex. 
2. Standard 
National legislation shall specify the conditions to be fulfilled and the formalities to be 
accomplished for Customs purposes in respect of postal items. 
3 Standard 
The clearance of postal items shall be carried out as rapidly as possible and Customs 
control shall be restricted to the minimum necessary to ensure compliance with the laws 
and regulations which the Customs are responsible for enforcing. 
Relations between the Customs and postal authorities 
4. Standard 
National legislation shall specify the respective responsibilities and obligations of the 
Customs and of the postal authorities in connexion with the Customs treatment of postal 
items. 
Notes 
1. The postal authorities have certain obligations and responsibilities which derive 
directly from the Acts of the Universal Postal Union. Other responsibilities and 
obligations of the postal authorities and those of the Customs may be decided upon 
by mutual agreement between the two authorities. 
2. The postal authorities are usually responsible for the conveyance, storage and 
production to the Customs authorities of postal items and, at the request of the 
Customs authorities, may open them for the purposes of Customs control. However, 
in some countries the actual conveyance, storage and production to the Customs 
authorities of postal parcels is undertaken, by agreement, not by the postal 
authorities themselves but by railway authorities and other approved enterprises. 
Such practical arrangements would mean that in these countries certain of these 
obligations may become the responsibility of the approved enterprise. 
3. Whilst not accepting responsibility for the accuracy of Customs declarations (e.g. 
form C 2/CP 3), postal authorities in the country of departure in principle check that 
Customs declarations on postal items are, where appropriate, present, and as far as 
possible take steps to ensure that they are correctly and fully completed. When a 
Customs declaration is obviously incomplete, postal authorities generally draw the 
attention of senders to the relevant Customs regulations and may refuse to accept 
the postal item in question. 
i£ 
When a consignment consists of a number of items, particularly in the case of 
commercial consignments, the postal authorities usually advise the sender of the 
need to attach separate documents (such as certificates of origin) to each item. 
5. Standard 
The Customs authorities, with any necessary agreement of the postal authorities, shall 
designate the Customs offices or other places at which postal items may be cleared. 
Notes 
1. Joint Customs/post offices may be set up, or Customs officers may be stationed 
permanently or for certain hours of the day at post offices; in these latter 
circumstances the postal authorities may provide the Customs with office 
accommodation. 
2. Customs offices may be set up at exchange post offices, which are post offices 
responsible for exchanging postal consignments with the appropriate foreign postal 
authorities. 
Exportation of postal items 
(a) Customs status of goods 
6. Standard 
The exportation of goods in postal items shall be allowed regardless of whether they are 
in free circulation or are under a Customs procedure such as Customs warehousing or 
temporary admission, provided that, when they are under a Customs procedure, all the 
formalities prescribed for that procedure are complied with. 
Note 
The exportation by post of certain goods, including narcotics, explosives, inflammable 
and other dangerous substances, is closely regulated and in many instances is prohibited 
by the Acts of the Universal Postal Union. 
(b) Production to the Customs 
7. Standard 
The Customs authorities shall designate the postal items which shall be produced to them 
at exportation for the purposes of Customs control. 
Note 
Under the documentary clearance system used in some countries for postal parcels, only 
the documents and not the items themselves are submitted to the Customs in the first 
instance; the Customs then indicate to the postal authorities which items must be 
produced to them for Customs control. 
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8. Recommended 
Practice 
The Customs should not as a general rule require postal items to be produced to them at 
exportation for the purposes of Customs control unless they contain goods the 
exportation of which must be certified, goods which are subject to export prohibitions or 
restrictions or export duties and taxes, or goods having a value exceeding an amount 
specified in national legislation, or they are selected for Customs control on a selective or 
random basis. 
Notes 
1. There are various cases in which the exportation of goods may have to be certified, 
such as when goods are being exported temporarily or are being exported on 
drawback or after temporary admission. 
2. Goods being exported by post may be cleared either before or after posting. In 
countries where the usual procedure is clearance before posting, the Customs may 
mark consignments with special stamps or labels, may seal them or may authorize 
exportation on an accompanying document such as the despatch note (CP 2). In 
countries where they are normally cleared after posting, clearance may be carried out 
at an exchange post office or at another post office provided with Customs services, 
where necessary the goods being transferred to such a post office for control 
purposes. 
3. Goods which are subject to export duties and taxes are usually cleared by the 
Customs before posting, the export duties and taxes being paid before the goods are 
passed to the postal authorities for exportation. In some countries, however, the 
postal authorities may collect the export duties and taxes, the accounts being settled 
and payment made as at importation. 
(c) Documents 
9. Recommended 
Practice 
A Goods declaration should not be required in respect of the exportation of postal items 
unless the item contains goods the exportation of which must be certified, goods which 
are subject to export prohibitions or restrictions or subject to export duties and taxes, or 
goods having a value exceeding an amount specified in national legislation. 
(d) Examination of postal items 
10. Standard 
The Customs authorities shall not as a matter of course examine all postal items at 
exportation but shall confine themselves to the carrying out of examinations on a 
selective or random basis. 
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11. Recommended 
Practice 
Where the Customs authorities exercise their right to examine postal items at 
exportation, they should limit the extent of the examinatiori to that deemed necessary to 
ensure compliance with the laws and regulations which the Customs are responsible for 
enforcing. 
Postal items in transit 
12. Standard 
Postal items shall not be subject to Customs formalities whilst they are being conveyed in 
international traffic. 
Importation of postal items 
(a) Goods which may be admitted 
13. Standard 
The importation of goods in postal items shall be allowed irrespective of whether they 
are intended to be cleared for home use or for another Customs procedure. 
(b) Production to the Customs authorities 
14. Standard 
The Customs authorities shall designate the imported postal items which they require to 
be produced for the purposes of Customs control. 
Note 
Under the documentary clearance system used in some countries for postal parcels, only 
the documents and not the items themselves are submitted to the Customs in the first 
instance; the Customs then indicate to the postal authorities which items must be 
produced to them for Customs control. 
15. Recommended 
Practice 
The Customs authorities should not, as a general rule, require the following categories of 
imported letter-post items to be produced 
(i) postcards, and letters containing personal messages only; 
(ii) literature for the blind; 
(iii) printed papers not subject to import duties and taxes. 
16. Standard 
When imported postal items are produced to the Customs, the latter shall require only 
such documents as are necessary for clearance. 
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Notes 
1. The documents involved? may vary from case to case according to the nature of the 
item and its contents, value, etc. They will normally include Customs declaration 
form C 1 or C 2/ CP 3, as appropriate, despatch note CP 2 in the case of postal 
parcels and any necessary certificates of origin, invoices, and so forth. 
2. Various methods may be used for transmitting Customs declaration form C 2/CP 3. 
The form may be attached to the despatch note, glued to the item or tied to it or may 
be enclosed in the item the country of destination so requires. The form may also be 
despatched separately from the item under certain agreed arrangements. 
17. Standard 
Where a Customs declaration form C 2/CP 3 is provided in respect of imported postal 
items, the Customs authorities shall require not more than one copy. 
(c) Clearance against Customs declaration forms C 1 and C 2/ CP 3 or against 
a Goods declaration 
18. Recommended 
Practice 
When all the information required by the Customs authorities is available from the 
relevant Customs declaration form C 1 or C 2/CP 3 and supporting documents, postal 
items should be cleared against those documents and no separate Goods declaration 
should be required except in the case of commercial consignments having a value 
exceeding an amount specified in national legislation and in the case of goods intended to 
be cleared under a Customs procedure other than home use. 
19. Standard 
When goods contained in postal items are to be cleared under a Customs procedure other 
than home use, a Goods declaration shall be lodged on the form and in the number of 
copies prescribed for the Customs procedure in question and the other formalities 
required for that procedure shall be complied with. 
Note 
The Goods declaration may be a national document or it may be an international 
document such as an ATA carnet. 
20. Standard 
When a Goods declaration is required in respect of postal items to be cleared for home 
use, the form for the Goods declaration to be used shall conform to the official model 
laid down by the competent authorities and the other formalities required for that 
procedure shall be complied with. 
iS 
Notes 
1. The Goods declaration form for home use may be the same as that prescribed for 
importations by other means or it may be a form specially designed for importations 
by post. 
2. The Goods declaration may be completed by the postal authorized, by the addressee 
or by an authorized agent. 
(d) Examination of postal items 
21. Standard 
The Customs authorities shall not as a matter of course examine all imported postal items 
but shall confine themselves to the carrying out of examinations on a selective or random 
basis. 
22. Recommended 
Practice 
Where the Customs authorities exercise their right to examine imported postal; items 
they should limit the extent of their examination to that deemed necessary to ensure 
compliance with the laws and regulations which the Customs are responsible for 
enforcing. 
(e) Assessment and collection of import duties and taxes. 
23. Recommended 
Practice 
A system of flat-rate assessment should be applied to goods imported for home use in 
postal items, provided that the importation is of a non-commercial nature and that the 
aggregate value of the goods does not exceed a figure which should not be less than 
US$100. The flat-rate system: 
should lay down rates that cover all types of import duties and taxes; 
should not deprive the goods of the benefit of any duty-free admission facilities to 
which they are otherwise entitled; 
should provide that goods may, if the addressee is present at clearance and so 
requests, be charged at their own appropriate rates of import duties and taxes, in 
which case, however, the Customs authorities may require that all the dutiable and 
taxable goods shall be so charged; and 
should not rule out the possibility for Customs authorities to determine special rates 
for high-duty goods or even to exclude some goods from the benefit of the flat-rate 
system. 
-lo 
Note 
An importation is usually considered to be of a non-commercial nature when it is 
occasional and consists only of goods for personal use or consumption by the addressee 
or his family and where there is no suggestion, by their nature or quantity, that they are 
imported for commercial purposes. 
24. Recommended 
Practice 
Admission free of import duties and taxes should be granted in respect of consignments 
containing only personal gifts(l (excluding alcohol, alcoholic beverages or tabacco 
goods) the aggregate value of which, determined on the basis of the retail prices in the 
country of despatch, does not exceed 30 SDRs. Where several consignments are 
despatched at the same time by the same sender to the same addressee, the aggregate 
value should be taken to be the total value of all those consignments. The formalities for 
obtaining admission free of import duties and taxes should be as simple as possible. It 
should be possible to admit such gifts free of economic import prohibitions and restric­
tions. 
Notes 
1. A gift is usually considered to be personal if it: 
(a)is sent to a private person by or on behalf of another private person resident 
abroad; 
(b)is occasional; and 
(c) consists only of goods for personal use by the addressee or his family, and the 
nature and quantity of the goods imported are such that the consignment is 
obviously not of commercial nature. 
2. To facilitate the speedy clearance of gift consignments at importation, the sender 
generally indicates on the Customs declaration form C 1 or C 2/CP 3 that the 
consignment is a gift, and states its contents and value. 
2 5. Recommended 
Practice 
When imported postal items are released by the Customs authorities to the postal 
authorities or an authorized enterprise for delivery to the addressee prior to the payment 
of any import duties and taxes chargeable, the Customs authorities should make the 
simplest possible arrangements for the collection of such duties and taxes. 
Notes 
1. The postal authorities normally collect the import duties and taxes from the 
addressee at the time of delivery and make periodic payment to the Customs, for 
example at the end of each quarter. However, the postal authorities may pay the 
import duties and taxes to the Customs on behalf of the addressee when an item is 
released to them for delivery. 
2. Under certain optional provisions in the Acts of the Universal Postal Union the 
sender of a postal item may, in some cases, undertake to pay all charges including 
import duties and taxes, to which the item is subject on delivery. 
2i 
Repayment or remission of import duties and taxes 
26. Standard 
Where postal items are not delivered to or are refused by the addressee, repayment or 
remission of import duties and taxes shall be granted upon request in respect of goods 
contained therein provided that the goods are: 
(a) re-exported; or 
(b) destroyed or abandoned without expense to the Revenue, as the Customs authorities 
may decide. 
Information concerning Customs formalities in respect of postal traffic 
27. Standard 
The Customs authorities shall ensure that all relevant information regarding the Customs 
formalities in their country in respect of postal traffic is readily available to any person 
interested. 
Note 
Such information may be made available through the normal media used by the Customs 
and also by means of the information services of the postal authorities. 
-a -
Appendix I to Annex II 
Reservations and notifications to be entered by the Community 
in respect of Annex F.4 to the International Convention 
on the Simplification and Harmonization of Customs Procedures 
1. General reservation (general observation) 
Community legislation does not cover all of the provisions of this Annex. In areas not 
covered by Community legislation, Member States may, if necessary, enter their own 
reservations. 
2. Standard 19 
Community legislation on the ATA carnet does not cover postal traffic. 
3. Recommended Practice 23 
Community legislation does not provide for flat-rate assessment in respect of value-
added tax or excise duty. 
4. Recommended Practice 24 
Community legislation provides that goods to an aggregate value not exceeding ECU 45 
sent in small non-commercial consignments free of charge from one private individual to 
another within the customs territory of the Community may be admitted free of import 
duties and taxes. 
In addition to restrictions on alcohol, alcoholic beverages and tobacco goods, 
Community legislation sets the following limits on the amounts of certain products which 
can be admitted free of import duties and taxes: 
Tax-free allowances: 
(a) coffee 
or 
extracts and essences of coffee 
(b) tea 
or 
extracts and essences of tea 
Duty- and tax-free allowances: 500 grammes 
200 grammes 
100 grammes 
40 grammes 
-U 
(c) perfumes 50 grammes 
or 
toilet waters 0.25 litre 
5. Recommended practice 25 
Community legislation provides for duty-free admission of consignments of goods sent 
direct from a third country to an addressee in the Community up to an aggregate intrinsic 
value of ECU 22 per consignment. 
Imports of goods to an aggregate value not exceeding ECU 10 are admitted free of 
value-added tax. Member States may extend VAT relief to imports of goods with a value 
greater than ECU 10 but not exceeding ECU 22. 
Member States may, however, exclude imports of mail order goods from VAT relief 
Some Member States have introduced a system for imports of periodicals sold by 
subscription which allows third-country publishers to pay on behalf of their subscribers in 
the importing Member State the VAT due on the imported periodicals. 
6. Standard 26 
Community legislation provides for goods to be abandoned to the Revenue where this is 
allowed under national law. 
Under the temporary admission rules, however, in duly substantiated exceptional cases 
goods may always be abandoned to the Revenue, with the customs authorities' consent. 
Procedures for the repayment or remission of excise duties are the responsibility of the 
EC Member States. 
?U-
ISSN 0254-1475 
COM(94) 325 final 
DOCUMENTS 
EN 1102 
Catalogue number : CB-CO-94-337-EN-C 
ISBN 92-77-71796-3 
Office for Official Publications of the European Conraunities 
Lr2985 Luxembourg 
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