COMMISSION OF THE EUROPEAN COMVIUNITIES 
C0MC93) 610 final 
Brussels, 26 November 1993 
Proposal for a 
COUNCIL DECISION 
concerning the amendments to the reservations entered by the EC in respect 
of some provisions of certain Annexes to the international Convention on the 
simplification and harmonization of customs procedures 
"7'i^j (presented by the Commission) 
1w_s#^s'-«*-flarf'11 J i ïpiffï^ 
EXPLANATORY MEMORANDUM Z 
1. By the terms of Council Decision 75/199/EEC1 the Community became a 
Contracting Party to the international Convention on the simplification 
and harmonization of customs procedures, known as the 'Kyoto 
Convention'. 
2. Since this initial Decision the Council has adopted further Decisions 
accepting eighteen Annexes to the said Convention, the list of adopted 
Annexes comprising: A.1, A.2, B.1, B.2, B.3, C.1, D.1, D.2, E.1, E.3, 
E.4, E.5, E.6, E.8, F.1, F.2, F.3 and F.6. 
3. Under the provisions of Article 5(1) of the Kyoto Convention, any 
Contracting Party which accepts an Annex is deemed to have accepted 
all its provisions unless, at the time of accepting or at any time 
thereafter, the Party enters reservations stating the differences existing 
between the provisions of its national legislation and those of the 
Standards and Recommended Practices of the Annex concerned. 
4. By the provisions of Article 5(2) of the Convention, each Contracting 
Party bound by an Annex is required to review, at least once every three 
years, the Standards and Recommended Practices in respect of which is 
has entered reservations. It is understood that, following such 
examination, a Contracting Party may lift or amend its earlier 
reservations or formulate new ones where it considers this necessary. 
5. The Commission departments and Member State representatives 
constituted as the Commission's Customs Legislation Committee 
(International Organizations), have conducted such a review taking into 
account the changes that had been made to the Community's customs 
legislation - particuarly the Community Customs Code2 - since 
acceptance of the various Annexes. 
6. The outcome of the examination is set out in the Annex attached to this 
proposal for a Council Decision. 
7. The Council's adoption of the Decision will have no repercussions on the 
Community budget. 
1 OJ No L 100, 21.4.1975. p. 1. 
2 OJ No L 302, 19.10.1992, p. 1 
CONCLUSION 
The Commission proposes that the Council should: 3 
adopt the amendments to the reservations entered by the Community in 
respect of Annexes A.I, A.2, B.1, B.2, B.3, C.1, D.1, D.2, E.I, E.3, 
E.4, E.5, E.6, E.8, F.1, F,2, F.3 and F.6 to the international Convention 
on the simplification and harmonization of customs procedures; 
designate the person authorized to notify the Secretary General of the 
Customs Cooperation Council of the outcome of the examination 
conducted in accordance with the provisions of Article 5(2) of the 
abovementioned Convention. 
7 
Proposal for a Council Decision 
of ... 
concerning the amendments to the reservations entered by the EC in respect 
of some provisions of certain Annexes to the international Convention on the 
simplification and harmonization of customs procedures 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
having regard to the Treaty establishing the European Community, and in 
particular Article 113 thereof, 
having regard to the proposal from the Commission, 
whereas by Council Decision 75/199/EEC1 the Community became a 
Contracting Party to the international Convention on the simplification and 
harmonization of customs procedures; 
whereas by the above Decision and Council Decisions 77/415/EEC2, 
78/528/EEC^, 80/391/EEÇ4, 85/204/EEC5. 86/103/EEC6, 87/593/EEC7, 
87/594/EEC8, 88/355/EEC9 and 88/356/EEC10, the Community has accepted 
eighteen Annexes to the said Convention so far; 
whereas under Article 5(1) of the said Convention the Community has 
entered reservations on some Standards and Recommended Practices defined 
in these Annexes in order to cover the special requirements of the customs 
union; 
whereas under Article 5(2) of the said Convention, the Community is required 
to review, once every three years at least, the Standards and Recommended 
Practices in respect of which it has entered reservations and Article 5(1) of 
the Convention allows Contracting Parties to enter reservations even after an 
Annex has been accepted, 
1 OJ No L 100, 21.4.1975, p. 1. 
2 OJ No L 166, 4.7.1977, p. 1. 
3 OJ No L 160, 17.6.1978, p. 13. 
4 OJ No L 100, 17.4.1980, p. 27. 
5 OJ No L 87, 27.3.1985, p. 8. 
6 OJ No L 88, 3.4.1986, p. 42. 
I OJ No L 362, 22.12.1987, p. 1. 
8 OJ No L 362, 22.12.1987, p. 8. 
9 OJ No L 161, 28.6.1988, p. 3. 
10 OJ No L 161, 28.6.1988, p. 12. 
-T 
HAS DECIDED AS FOLLOWS: 
Article 1 
The reservations entered by the Community in respect of Annexes A.1, A.2, 
B.1, B.2, B.3, C.1, D.1, D.2, E.1, E.3, E.4, E.5, E.6, E.8, F.1, F.2, F.3 and 
F.6 of the international Convention on the simplification and harmonization of 
customs procedures shall be amended as a result of the review the outcome 
of which is set out in the Annex to this Decision. 
Article 2 
The President of the Council shall designate the person authorized to notify 
the Secretary-General of the Customs Cooperation Council of the outcome of 
the review referred to in Article 1. 
Done at Brussels, ... 
For the Council 
The President 
ANNEX 
Outcome of the review, conducted by the European Community (EÇ) ir\ 
accordance with the requirements of Article 5(2) of __the_ international 
Convention on the simplification and harmonization..of customs procedures, of 
the reservations entered by the EC in respect of the Annexes to the said 
Convention 
1. Annex A.1 
concerning customs formalities prior to the lodgement of the goods 
declaration 
1.1 The reservation in respect of Standard 11 shall be lifted. 
1.2 The existing reservation in respect of Standard 21 shall be maintained. 
2. Annex_A.2 
concerning the temporary storage of goods 
2.1 The present general reservation shall be maintained. 
2.2 A reservation worded as follows shall be entered in respect of 
Recommended Practice 10: 
"Community legislation provides that the customs authority may require 
the person holding the goods to lodge a security with a view to ensuring 
payment of any customs debt which may arise." 
2.3 The present wording of the reservation entered in respect of 
Recommended Practice 13 shall be replaced by: 
"Community legislation authorizes goods in temporary storage to be 
subject only to such forms of handling as are designed to ensure their 
preservation in an unaltered state, without modifying their appearance or 
the technical characteristics." 
3. Annex B.1 
concerning clearance for home use 
3.1 The present wording of the second paragraph of the general reservation 
shall be replaced by: 
"Community legislation distinguishes between releasing goods for free 
circulation and releasing them for home use. To obtain the release of 
goods for free circulation simply requires customs duty to be paid 
whereas for goods to be released for home use, various other 
provisions, e.g. on taxation, also have to be applied. 
It should also be pointed out that release for free circulation and release 
for home use in the Community generally occur at the same time and in 
the territory of the same Member State." 
1-
3.2 The existing reservations in respect of Recommended Practices 19 and 
52 shall be maintained. 
3.3 The first sentence of the present wording of the reservation in respect 
of Standard 28 shall be replaced by the following sentence: 
• "The Community also applies the provisions of this Standard if 
declarations are incomplete." (Second sentence unchanged). 
4. Annex B.2 
concerning relief from import duties and taxes in respect of goods 
declared for home use 
4.1 The present general reservation and the present reservations in respect 
of Recommended Practices 20, 27, 32 and 33 and of Standard 34 shall 
. be maintained. 
4.2 The present wording of the reservation in respect of Standard 3 shall be 
replaced by: 
"Community legislation only grants the exemption to consignments of 
negligible value if they are dispatched directly from a third country to a 
consignee in the Community." 
4.3 In the last sentence of the present wording of the reservation in respect 
of Recommended Practice 10, the words "is accompanied" shall be 
replaced by the words "may be accompanied" (remainder unchanged). 
4.4 The present wording of the reservation in respect of Recommended 
Practice 16 shall be replaced by: 
"The exemption is granted to the substances concerned if they are to be 
used exclusively for non-commercial, medical or scientific purposes." 
4.5 A second paragraph worded as follows shall be added to the present 
wording of the reservation in respect of Recommended Practice 18: 
"Member States have the option of excluding dual-use vehicles which 
are used for commercial or professional purposes from the relief granted 
on value added tax." 
4.6 The present wording of the reservation in respect of Recommended 
Practice 19 shall be replaced by: 
"Relief from import duties and taxes on goods covered by Standard 17 
may be made subject to the condition that any customs duties or taxes 
to which the goods are normally liable in their country of departure or 
origin have actually been levied. The period for which the beneficiary 
must continue to own or possess the goods after importing them is set 
at twelve months." 
4.7 The present wording of the reservation in respect of Standard 21 shall 
be replaced by: 
"Member States have the option of making relief from value added tax 
on trousseaux and movable property belonging to the person 
transferring his or her residence subject to the condition that any 
customs duties and/or taxes to which the goods are normally liable in 
their country of departure or. origin have actually been levied. The 
exemption ... (remainder unchanged)." 
4.8 The wording of the first subsection of the reservation in respect of 
Recommended Practice 23 should read as follows: 
not earlier than two months before the date fixed for the wedding. 
In this case, the relief shall be subject to the lodging of an 
appropriate security for the customs duties whereas this security is 
optional as far as tax exemption is concerned, and ... (remainder 
unchanged)" 
4.9 The present wording of the second paragraph and the table in the 
reservation in respect of Standard 28 shall be replaced by: 
"... In addition to the quantitative restrictions on tobacco, alcohol and 
alcoholic beverages, Community legislation lays down, in respect of the 
products listed below, the maximum tax, or duty and tax, allowances 
and the maximum quantities shown opposite each product: 
Exemption from: 
taxes 
(a)coffee 500 grams 
or 
coffee extracts and essences 200 grams 
(b) tea 100 grams 
or 
tea extracts and essences 40 grams 
duties and taxes 
(c) perfumes 50 grams 
or 
toilet waters t 0.25 litre." 
4.10 The beginning of the first sentence of the present reservation in respect 
of Recommended Practice 29 should read as follows: 
"The goods referred to in the Recommended Practice are admitted free 
of import duties and taxes ... (remainder unchanged)." 
4.11 The present wording of the reservation in respect of Recommended 
Practice 35 shall be replaced by: 
"Community legislation provides for the relief referred to in this 
Recommended Practice subject to the materials in question not normally 
being reusable. Relief from duty on these materials is granted subject to 
the further condition that their value is included in the tax base for the 
goods carried." 
5. Annex B.3 
concerning reimportation in the same state 
5.1 The present general reservation and the present reservations in respect 
of Recommended Practices 8 and 24 shall be maintained. 
5.2 The reservation in respect of Recommended Practice 11 shall be lifted. 
6. Annex C.I 
concerning outright exportation 
6.1 The present reservations (general reservation and in respect of 
Recommended Practice 10 and Standard 21 ) shall be maintained. 
7. Annex D.I 
concerning rules of origin 
7.1 The present reservations in respect of Standard 7 and Recommended 
Practice 10 shall be maintained. 
7.2 In the second paragraph of the present wording of the reservation in 
respect of Standard 8, the words "CCC Nomenclature" shall be replaced 
by "Nomenclature of the Harmonized System" (remainder unchanged). 
8. Annex D.2 
concerning documentary evidence of origin 
8.1 The present reservations (in respect of Recommended Practices 3. 10 
and 1 2) shall be maintained. 
9. Annex E.1 
concerning customs transit 
9.1 The present wording of the general reservation shall be replaced by: 
"Although the Member States of the Community constitute a single 
territory, each Member State has the option to set up simplified transit 
procedures applicable in certain circumstances to goods which are not 
intended to move through the territory of another Member State. 
Member States also have the option to establish amongst themselves, 
via bilateral or multilateral arrangements, simplified procedures which 
comply with criteria established as necessary and are applicable to 
certain traffic or to specific enterprises," 
\ 10. Annex E 3 
concerning customs warehouses 
10.1 The present general reservation shall be maintained. 
10.2 A reservation worded as follows shall be entered in respect of 
Recommended Practice 9: 
"Community legislation requires 'appropriate customs surveillance' to be 
ensured within the warehousing procedure. Independently of the 
surveillance methods used, Member States have the option of requiring 
a security." 
10.3 A reservation worded as follows shall be entered in respect of 
Recommended Practice 11 : 
"Normally the Community applies the provisions of this Recommended 
Practice but it reserves the right not to do so in exceptional 
circumstances." 
10.4 A reservation worded as follows shall be entered in respect of 
Recommended Practice 13: 
"This Recommended Practice does not apply to value added tax. 
The Member States of the Community are free to decide whether or not 
to allow the repayment of customs duties." 
10.5 A reservation worded as follows shall be entered in respect of 
Recommended Practice 15: 
"Whether or not the goods in question are to be exported subsequently, 
Community legislation does not provide for the storage in customs 
warehouses of goods that are liable to, or have borne, internal duties or 
taxes." 
10.6 The present wording of the reservation in respect of Standard 18 shall 
be replaced by: 
"In the Community, import goods may undergo the usual forms of 
handling to ensure their preservation or marketable quality or prepare 
them for distribution or resale. 
In certain circumstances, goods governed by the common agricultural 
policy may be handled only in those ways specifically provided for in 
their case." 
10.7 The present wording of the reservation in respect of Standard 19 shall 
be replaced by: 
"Community legislation on customs warehouses does not fix the 
maximum duration of storage. Nevertheless, in exceptional cases the 
period may be less than one year." 
11 
11. Annex E.4 
concerning drawback 
11.1 The present reservations (general reservation and in respect of Standard 
5) shall be maintained. 
12. Annex E.5 
concerning temporary admission subject to re-exportation in the same 
state 
12.1 The present general reservation and the present reservations in respect 
of Standard 14 and Recommended Practices 33 and 37 shall be 
maintained. 
12.2 A reservation worded as follows shall be entered in respect of Standard 
4: 
"Community legislation does not grant temporary admission for goods 
which, for the purposes of discharging the temporary admission or 
inward processing procedures, have been entered under the customs 
warehouse or free zone procedures prior to being re-exported (free 
zones have been created in Denmark, Germany, Greece, Spain, Ireland, 
Italy, Portugal and the United Kingdom)." 
12.3 A reservation worded as follows shall be entered in respect of 
Recommended Practice 5: 
"Normally the Community applies the provisions of this Recommended 
Practice, but it reserves the right not to do so in exceptional 
circumstances." 
12.4 The present wording of the reservation in respect of Standard 23 shall 
be replaced by: 
"In the Member States where free zones exist (Denmark, Germany, 
Greece, Spain, Ireland, Italy, Portugal and the United Kingdom) this 
Standard is applicable only if the goods are introduced into the zones 
with a view to subsequent exportation from the customs territory of the 
Communities." 
12.5 Four EC reservations, one each on packings, commercial vehicles, 
containers and pallets, shall be entered in respect of Recommended 
Practice 36. The reservations shall be worded as follows: 
Reservation on packings 
"Community legislation authorizes temporary admission on the basis of 
an oral declaration accompanied by an inventory, for packings bearing 
indelible, non-detachable marks and imported full by a person 
established outside the customs territory of the Community. Written 
declarations are required for all other types of packings entered under 
the temporary admission arrangements. 
Where reexportation is not in doubt because of commercial usage, 
Community legislation also allows temporary admission without a 
security for mackings imported empty and bearing indelible, non-
detachable markets. 
1 e. 
Provision is also made for granting exemptions from the requirement to 
provide a security in respect of packings imported full and subject to a 
verbal declaration accompanied by an inventory, unless an express 
request to the contrary is made to the competent authorities." 
Reservation on commercial road vehicles 
"Community legislation provides that, where there is a serious risk of 
failure to comply with the obligation to re-export a commercial road 
vehicle, the temporary admission procedure applies subject to the 
production of a document of a type laid down in an international 
convention or the lodging of a declaration, and the customs authority 
has the option of requiring a security when the declaration is lodged." 
Reservation on containers 
"For all containers, whether or not approved for carrying goods under 
customs seal, Community legislation authorizes temporary admission 
without formalities from the time of entry into Community customs 
territory, provided that the containers bear durably applied markings in 
an appropriate, clearly visible position identifying the owner or operator 
and giving the marks and identification numbers used by the owner or 
operator, the tare weight of the container (except in the case of swap 
bodies used in combined road-rail transport) and the country of 
registration of the container (except in the case of air transport). 
Containers not fulfilling these conditions may be granted temporary 
admission to Community customs territory once a written application 
has been submitted, an authorization issued and, where there are well-
founded or serious doubts regarding the obligation to re-export, a list 
has been produced and/or a security constituted." 
Reservation on pallets 
"As long as pallets are identifiable, Community legislation authorizes 
their temporary admission without formalities from the time of entry into 
Community customs territory. Where they are not identifiable, a written 
application has to be submitted and an authorization issued. 
In both cases a written declaration and, where necessary, a security, 
may be required if the customs consider that there is a serious risk of 
failure to comply with the obligation to re-export." 
12.6 The beginning of the second sentence of the present reservation in 
respect of Recommended Practice 38 shall read as follows: 
"Temporary admission with partiaf relief from import duties is not applied 
to consumable products and goods whose ...." (remainder unchanged). 
13. Annex E.6 
concerning temporary admission for inward processing 
13.1 The present general reservation and the present reservation in respect of 
Standard 19 shall be maintained. 
13 
13.2 The wording of the present reservation in respect of Recommended 
Practice 5 shall be replaced by: 
"Normally the Community applies the provisions of this Recommended 
Practice, but it reserves the right not to do so in exceptional 
circumstances." 
13.3 A reservation worded as follows shall be entered in respect of 
Recommended Practice 16: 
"Where the customs authority requires a security, the type and amount 
of security shall be fixed by the customs authority of each Member 
State." 
13.4 The present wording of the reservation in respect of Standard 34 shall 
be replaced by: 
"In Member States where free zones exist (Denmark, Germany, Greece, 
Spain, Ireland, Italy, Portugal and the United Kingdom) this Standard 
shall be applicable when the compensatory products enter the zones 
with a view to their subsequent exportation from the customs territory 
of the Community." 
13.5 The present wording of the reservation in respect of Recommended 
Practice 39 shall be replaced by: 
"Community legislation does not provide for any limitation similar to that 
mentioned in this Recommended Practice. If a customs debt relating to 
the compensating products or to the goods in their unaltered state 
occurs, it gives rise to the payment of compensatory interest on the 
amount of the import duties due." 
14. Annex E.8 
concerning temporary exportation for outward processing 
14.1 The present general reservation and the present reservation in respect of 
Standard 20 shall be maintained. 
14.2 The present wording of the reservation in respect of Recommended 
Practice 3 shall be replaced by: 
"Normally the Community applies the provisions of this Recommended 
Practice, but it reserves the right not to do so in exceptional 
circumstances." 
15. Annex F.I 
concerning free zones 
15.1 The present wording of the general reservation shall be replaced by: 
"Community legislation allows Member States the option of constituting 
certain areas of Community customs territory as free zones. So far free 
zones of this type have been set up by Denmark, Germany, Greece, 
Spain, Ireland, Italy, Portugal and the United Kingdom. 
1H 
In addition Community legislation provides for a particular type of tree 
zone called a 'free warehouse', to which exactly the same rules apply as 
those governing the free zones. So far, free warehouses have been set 
up in Spain, France, Italy, the Netherlands and Portugal. 
Moreover Community legislation covers only part of the procedures dealt 
with in this Annex. In respect of areas not covered by Community 
legislation, the Member States shall enter their own reservations if 
necessary." 
15.2 The present wording of the reservation in respect of Standard 21 shall 
be replaced by: 
"Community legislation does not lay down a maximum storage period. 
Nevertheless, in exceptional cases, the period may be less than one 
year." 
16 Annex F.2 
concerning processing of goods for home use 
16.1 The present reservations (general reservation and in respect of 
Recommended Practice 7) shall be maintained. 
17. Annex F.3 
concerning customs facilities applicable to travellers 
17.1 The present general reservation and the present reservations in respect 
of Standards 21, 38 and 44 and Recommended Practice 45 shall be 
maintained. 
17.2 A reservation worded as follows shall be entered in respect of 
Recommended Practice 18: 
"Community legislation does not provide for a system of flat-rate 
assessement as far as value added tax and excise duties are 
concerned." 
17.3 A reservation worded as follows shall be entered in respect of 
Recommended Practice 31 : 
"Community legislation provides that when there is a serious risk of 
failure to comply with the obligation to re-export the means of transport 
for private use, the temporary adjrrission procedure applies subject to 
the production of a document of a type laid down in an international 
convention or the lodging of a declaration, and the customs authority 
has the option of requiring a security when the declaration is lodged." 
18. Annex F.6 
concerning the repayment of import duties and taxes 
18.1 The present reservations (general reservation and in respect of 
Standard 7) shall be maintained. 
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