PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 1031/88 DETERMINING THE PERSONS LIABLE FOR PAYMENT OF A CUSTOMS DEBT
Date: 1989-05-11
Institutions: European Commission
Subjects: export tax, import tax, indebtedness, intra-EU trade

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(89)214  final -SYN 195 

Brussels/  11  May 1989 

Proposal for a 

£2y!!£Ik-5§§ykûIi2N_(EEÇ) 

amending  Regulation  (EEC) No 1031/88 determining the persons 

liable for payment of a customs debt 

(presented by the Commission) 

EgPLAKAflngy  MEMnRAWTTTM 

C&^?Z'f*r/]' 

Article 10 of Council Regulation (EEC) No 2504/88 of 25 .July  1988 on free 
zones and free warehouses1 lays down that non-Comrnunity goods may be 
consumed or used in free zones or free warehouses only in the circumstances 
indicated therein, i.e. in practice in the same circumstances as in other 
parts of the customs territory of the Community. 

Provision therefore had to be made for a further case in which a customs 
debt on importation is Incurred resulting from the consumption or use in a 
free zone or free warehouse, in circumstances other than those covered by 
the rules in force, of goods liable to import duties. Such was the purpose 
of Council Regulation (EEC) No 4108/88 of 21 December 1988 amending Council 
Regulation (EEC) No 2144/87 of 13 July 1987 on customs debt.2 

It is now a question of determining which persons are liable for payment of 
a customs debt incurred in such circumstances, and Council Regulation (EEC) 
No 1081/88 of 18 April 1988 determining the persons liable for payment of a 
customs debt3 should be supplemented accordingly. 

To that end, it would seem appropriate to refer to the principles adopted 
to determine the persons liable for payment of a customs debt where goods 
liable to import duties are removed from the customs supervision involved 
in the temporary storage of the goods or their being placed under a customs 
procedure Involving customs supervision (see Article 4 of Regulation (EEC) 
No 1031/88). 

1 OJ No L 225, 15.08.1988, p. 8. 
2 0 J NO  L 361, 29.12.1988, p. 2 
3 OJ No L 102, 21.4.1988, p. 5. 

- 2 -

This is because, since goods can be consumed or used in free zones or free 

warehouses only under the same conditions as in other parts of the customs 

territory of the Community, the unlawful consumption or use of non-

Community goods in such zones or warehouses must be treated in the same way 

as if the said goods were unlawfully consumed or used in another part of 

the customs territory of the Community. Moreover, in both cases the said 

unlawful acts have the same adverse economic consequences. 

This is why it is proposed in such oases to hold liable for payment of the 

customs debt those persons having unlawfully consumed or used goods and any 

other persons who are liable, under the provisions in force in the Member 

States, by reason of such unlawful consumption or use. 

It will therefore be possible to recover the customs debt from a maximum 

number of people and, in order to ensure optimum recovery of the amounts of 

duty payable, which constitute own resources of the Community budget, 

provision is also made for applying the principle of joint and several 

liability of all persons thus liable to pay the customs debt. 

Further, where goods  have disappeared  from  a free  zone or  free warehouse 

and  such disappearance  is considered  equivalent  to unlawful  consumption  or 

use  in the  free  zone or  the  free warehouse  since  it  cannot  otherwise be 

satisfactorily  accounted  for, it  cannot  be  ruled out  that  the goods  have  been 

consumed  or used  in another part  of the  customs  territory  of  the  Community. 

-  3 -

Since, in such  a case, the person having  consumed  or used  the goods  that  have 

disappeared  is unknown,  it  is proposed  that  the person  who according  to the 

knowledge  of  the authorities  was last  in possession  of  the goods  in question, 

shall  be liable  for  the payment  of  the  customs  debt. 

For the same  reasons as  indicated  above  any other  persons  who are liable  under 

the provisions  in force  in the Member  States by  reason  of the  fact  that  the  goods 

are  considered  to have been used  or  consumed  unlawfully  in the  free zone or the 

free warehouse  shall  also be jointly or  severally  liable  for the payment  of the 

customs  debt. 

4 

Proposal for a 

Council Regulation (EEC) 

amending Regulation  (EEC) No 1031/88 

determining the persons liable for payment of a customs debt 

TEE OCONCZL OF THE E0RÛPEAN OCMMDNITTES, 

Having regard to the Treaty establishing the European Economic Community, 

and in particular Article 100a thereof, 

Saving regard to the proposal from the Commission,1 

In cooperation with the European Parliament,2 

Having regard to the opinion of the Economic and Social Committee,3 

Whereas Council Regulation (EEC) No 4108/88 of 21 December 1988 amending 

4 

Regulation (EEC) No 2144/87 on  customs  debt  provided  for 

a further case in which a customs debt on iaportis  incurred  resulting 

from the consumption or use in a free zone "or a free warehouse, in 

circumstances other than those covered by the rules in force, of goods 

liable to Import duties; 

whereas, in order to take account of this further case in which a customs 

5 
debt on import is incurred. Council Regulation  (EEC) No 1031/88 

rihonlrl be supplemented accordingly; whereas provision should be made that; 

in such a case not only the persons who  consumed  or  used  the 

goods in question  In circumstances other than those covered by the rules 

in force, but also any other persons who are liable, under the provisions 

in force in the Member States, by reason of such consumption or use, are 

jointly  and  severally  liable  for payment of the customs debt; 

, p. 
1 QJ No C 
p. 
2 QJ No C 
3 QJ No L 
, p. 
4 QT No L 361, 29^12,1988, p.2 
5 QJ No L 102, 21.4.1968, p. 5 

S 

-  2 -

Whereas,  in cases where goods  have disappeared  and  the  customs authority  considers 

that  such  goods have been  consumed  or used  in the free zone or the free warehouse 

and  in so far as none of the persons  referred  to in the preceding  recital is known 

the person liable  for payment  of the  customs debt  shall  be the person  who, according 

to the knowledge of the authorities, was last  in possession  of the goods  in question; 

in this case  it  is also  important  to provide that  any other  persons who are liable 

under the provisions  in force  in the Member  States by  reason of the fact  that  the 

goods are considered  to have been used or consumed  in the  free zone or the free 

warehouse  shall  be also jointly and severally  liable  for payment  of the  customs debt, 

HAS ADOPTED  THIS  REGULATION: 

Article 1 

The  following  A r t i c le  6a 

is  hereby  added  to  T i t le 

I  of  Regulation  (EEC)  No  1031/88: 

" A r t i c le  6a 

1. Where a customs debt  has been  incurred  pursuant  to Article  2(1)(g) of  Regulation 

(EEC) No 2144/87, the person  having  consumed  or used  the goods  in a free zone or 

free warehouse  in circumstances other  than  those  covered  by the  rules  in force 

shall  be liable  for payment  of  such debt. 

Any other persons  who are Liable, under  the provisions  in force  in the  Member 

States, by  reason of such  consumption  or use  shall  also be jointly  and  severally 

liable for payment  of  such  debt. 

2. where  goods  have  disappeared  and  the  customs  authority  considers that 

they have been  consumed  or used  in the  free zone or free warehouse, and where 

it  is not  possible to apply paragraph  1, the person who, according  to the 

knowledge of the authorities, was last  in possession of  the goods, shall  be the 

person liable for payment  of the customs debt. 

C 

- 3 -

Any other persons who are liable, under  the provisions  in force  in the Member 

States by  reason of the fact  that  the goods are considered  to have been used or 

consumed  in the free zone or the free warehouse, shall  also be jointly  and 

severally  liable for payment  of such debt. 

Article 2 

This Regulation  shall  enter into force on the third day following that of its publication 

in the Official  Journal  of the European  Communities. 

It shall  be applicable from  the date of  implementation of Council  Regulation 

(EEC) No 2504/88 of 25 July 1988 on free zones and  free warehouses . 

This Regulation  shall  be binding  in its entirety  and directly  applicable in 

all  Member  States» 

Dona at Brussels, 

For the Council, 

60J  No L 225, 15.8.1988, p.8. 

? 

Commission of the European Communities 

COM(89)  214  final 

Proposal for  a 

COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No  1031/88 determining the persons liable for 
payment of  a customs debt 

(submitted to the Council by the  Commission) 

11.5.1989 

Office for  Official Publications of the European Communities 
L - 2985  Luxembourg 

Series:  DOCUMENTS 

1989 — 7 pp. — Format: 21.0 x 29.7  cm 

EN 

ISSN  0254-1475 

ISBN  92-77-49538-3 

Catalogue number:  CB-C0-89-185-EN-C 

r ^i 
I 
-i  ;.. 

COM(89)  214  final 

ISSN 0254-1475 

DOCUMENTS 

Proposal for  a 

COUNCIL  REGULATION  (EEC) 

amending  Regulation  (EEC) No  1031/88 
determining  the  persons  liable for  payment  of  a 
customs  debt 

(submitted to the  Council  by the  Commission) 

02 

Catalogue number:  CB-CO-89-185-EN-C 

ISBN  92-77-49538-3 

€ 

COMMISSION OF THE EUROPEAN COMMUNITIES 

11.5.1989