PROPOSAL FOR A COUNCIL DIRECTIVE AMENDING DIRECTIVE 79/695/EEC ON THE HARMONIZATION OF PROCEDURES FOR THE RELEASE OF GOODS FOR FREE CIRCULATION
Date: 1989-07-27
Institutions: European Commission
Subjects: customs harmonisation, free circulation, simplification of formalities

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC89) 385 final - SYN 216 

Brussels, 27 July 1989 

Proposal for a 

COUNCIL  DIRECTIVE 

amending  Directive  79/695/EEC on the harmonization of procedures 

for the release of goods for free circulation 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

Cm un 

1. This proposal for a Directive amending the Council Directive  of 24 July  1979 

on the harmonization of procedures for the release of goods for free 

circulation  (79/695/EEC) forms part of the process of completing the  internal 

market in as much as major differences  currently exist in the application of 

simplified procedures for the release of goods for free circulation  in trade 

with third countries. Whilst in some Member States up to 65 % of imports are 

covered by simplified procedures, application of the same procedures  in other 

Member States is somewhat sporadic  (e.g. limited  in particular  to perishable 

foodstuffs). 

2. In view of the economic  importance of these procedures, the lack of 

uniformity  in their use might encourage deflections of trade and be a factor 

influencing decisions to invest in one Member State or another once the 

single market had been  created. 

3. When the Directive of  24 July  1979 was adopted, complete harmonization of the 

simplified procedures for release for free circulation was not  considered 

possible. Articles  16-20 of the Directive merely laid down the  criteria 

defining how far the Member States could go in simplifying procedures. A 

significant breakthrough was made at that time in that those Member  States 

which already applied the said procedures are obliged  to comply with minimum 

requirements when authorizing traders to use them. In contrast, those Member 

States which saw no need  to apply the procedures are not so obliged under the 

1979 Directive. 

4. This situation will not be sustainable once the internal market has been 

completed  if problems such as those referred to at point  2 above are to be 

avoided. Consequently, this proposal aims to supplement the Directive in 

question by amending Articles  16-20 thereof, laying down in so doing the 

conditions under which an importer  is entitled to demand authorization to use 

a simplified procedure. Such a recognition of the entitlement of operators to 

use the simplified procedures also constitutes a better basis for the 

introduction of computer systems - this being a topic which, with a view to a 

close coordination and harmonisation among Member States, will be the subject 

of Commission implementing provisions as authorised  in Article  26 of the 

basic Directive. 

- 2 -

5. The Commission's proposal provides  for two types of simplified procedure, 

i.e.: 

-  the procedure  for  clearance at a designated place, which allows  gocds to be 

released  for free circulation  at the premises of the person  concerned  or at 

other places that are authorized  by the competent  authorities  (Articles 

18-18 c ); 

-  the simplified  declaration  procedure, which  enables  certain particulars of 

the  dfclui Jt i on  Lo  be  furni tilled  or  i n s e r t ed  at  .J  lut.ei  d a te  in  tin-  I'orm  or 

supplementary  declarations  (Articles  19-20 a ). 

6. Use of these two types of procedure  is subject to authorization, which must 

be granted on request if  certain  conditions are met. 

Since  it is the proposal's principal  aim to make the application of 

simplified procedures  in the Community more uniform, major  importance is 

attached to defining these  conditions, particularly  those  laid down in 

Articles  18a and  20. The Commission' s "proP°sal. is based on the principle that 

these  conditions must be as objective  as possible without  leaving any doubt 

as to the responsibility  of the Member  States' administrations  for the proper 

conduct of operations. The said Articles are based  in this respect on 

provisions already adopted by the Council  in Council Regulation  (EEC) No  3/84 

of  19 December  1983 introducing arrangements  for movement within the 

Community  of goods sent  from one Memher State  for  temporary  use  in one or 

more other Member  States  (OJ No L  2,  4.1.1984). 

7. Provided all the conditions are met, authorization to use the procedure for 

clearance at a designated place is to be granted on request to, inter alia, 

any authorized  consignee under the Community  transit procedure. It should be 

noted  in this respect that where  reference  is made  in Article  18(1) to the 

Community  transit procedure, that term is used within the meaning cf  Article 

1(2) of the Convention of  20 May  1987 on a common transit procedure  (OJ No 

L  226,  13.8.1987). 

8. In view of the importance of this proposal for the customs union and the 

internal market, its legal basis is Article  100a. 

Proposal for a 

COUNCIL  DIRECTIVE 

amending  Directive  79/695/EEC  on the harmonization  of  procedures 

for  the  release of goods for free  circulation 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to the Treaty  establishing  the European  Economic  Community, and 

in particular Article 100a  thereof, 

Having  regard  to the proposal  from the  Commission, 

In cooperation  with the  European  Parliament, 

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

Whereas Title  II of  Council Directive 79/695/EEC  , as  last amended  by  Directive 

i 

81/853/EEC  , contains  the provisions  concerning  special  procedures; whereas 

2 

those provisions  contained  in Subtitles A, B and  C relate, respectively, to 

exemption  from written  entries, the drawing  up of general, periodic or 

recapitulative  entries and  release of goods before  lodging  of  entry; 

Whereas the said provisions  laid down  in what  manner  and under  what  conditions 

the competent  authorities  may authorize  use of  simplified  procedures  for the 

release of goods for  free  circulation; 

Whereas the conditions under  which  importers  are entitled  to request authori 

zation  to use such a procedure  should be defined  as precisely as possible; 

whereas a distinction  must  be drawn between  two types of  procedure, namely  the 

procedure for  clearance at a designated  place and the  simplified  declaration 

procedure; 

Whereas specific  Community  provisions apply where goods previously  placed under 

a customs procedure with  economic  impact  are  released  for free  circulation; 

loj No L 205, 13.8.1979, p. 19. 
Z0J  No L 319, 7.11.1981, p. 1. 

-  2 -

Whereas  the simplified  procedures  for  the  release  of goods  for  free  circulation 

are of  considerable  economic  importance  to the  customs  union  and  the  internal 

market; whereas  in a single  market  importers  must  be able  to enjoy  the  same 

facilities  irrespective  of  where goods  are  released  for  free  circulation; 

Whereas  the  rules  currently  applicable  should  accordingly  be amended  by 

replacing  Articles  16 to  20 of  Directive  79/695/EEC, 

HAS ADOPTED  THIS  DIRECTIVE  : 

Directive 79/695/EEC  is hereby amended  as follows  : 

Article 1 

1. Articles  16 to 20 are  replaced  by the provisions  below. 

"Article  16 

Except  where Articles  16a  to 22 provide  otherwise, Title  I shall  apply  to the 

special  procedures  laid down  in  those Articles. 

Article  16a 

Without  prejudice  to the special  provisions  laid down  in  respect  of  consignments 

sent by parcel or  letter  post, and with  the exception  of  cases where  an  import 

licence has to be presented,  the  competent  authorities  may  specify  that a 

written  entry  is unnecessary  for goods  imported  for non-commercial  purposes or 

goods of  low value. 

Article  17 

1. The procedure  for  clearance  at a designated  place  shall  enable goods  to be 

released  for free circulation  at  the  premises  of  the person  concerned  or at 

other  places authorized  by the  competent  authorities. 

- 3 -

The simplified  declaration procedure shall enable  certain particulars of the 

declaration to be furnished or inserted at a later date in the form of 

supplementary  declarations of a general, periodic or recapitulative nature. 

2. In the framework of the procedures laid down in paragraph  1, release  shall be 

granted without the goods in question having first been the subject, at the 

competent  customs office, of the declaration provided  for in Article  3 of the 

present Directive. 

3. These procedures shall be applied  in accordance with Articles  18 to 20a and 

do not preclude the exercise by the customs services of any  checks they deem 

necessary to ensure the proper  conduct of operations. 

PROCEDURE FOR CLEARANCE AT A DESIGNATED  PLACE 

Article  18 

1. Authorization to use the procedure for clearance  at a designated place shall 

be granted, upon,request, in accordance with the conditions and in the manner 

laid  down  in  Articles  18a  to  18c  where  a  person  is 

authorized  to use simplified procedures under either the Community  transit 

procedure, to be carried out at the office of destination  in accordance with 

Articles 71 to 77 of Commission Regulation  (EEC) No  1062/87 , or a national 

* 

transit procedure, as the case may be. 

2. Without prejudice to the specific provisions applicable  thereto, use of the 

procedure for clearance at a designated place shall also be authorized, upon 

request, where goods previously placed under a customs procedure with 

economic impact are released  for free circulation. 

*0J No L 107, 22.4.1987, p. 1 

T 

- 4 -

Use of the procedure for  clearance at a designated place shall also be 

authorized, upon  request, where goods to be released  for  free  circulation at 

the premises of the person  concerned  or at other places authorised by the 

competent  authorities  are brought  into the customs territory of the  Community 

exempt  from the requirement  that they be presented  to customs pursuant  to 

Article  6(b) of Council Regulation  (EEC) No 4151/88 

Article  18a 

1. The authorization  referred  to in Article  18(1) shall be granted  on  condition 

that : 

-  the applicant has not  committed  a serious  infringement  or  repeated 

infringements of  legislation  concerning trade  in goods; 

-  the applicant's records enable the customs authorities  to carry out an 

effective  check, including  checks at a later date; 

-  it is possible to guarantee an effective  check on import prohibitions or 

restrictions  or any other provisions  governing  release for free 

circulation. 

2. The authorization may be refused where the applicant  declares goods for 

release  for free circulation only  occasionally. 

*0J No L 367, 31.12.1988, p. 1. 

-  5 -

3.  The 

authorization 

shall 

be 

revoked 

where 

one 

of 

the 

conditions  referred  to in paragraph  1 ceases to be fulfilled. It may be 

revoked where the situation referred  to in paragraph  2 exists. 

4. The customs authorities  shall set out the grounds for decisions  refusing or 

revoking  authorisation. 

Article  18b 

1. To enable  the competent  authorities  to satisfy  themselves as to the proper 

conduct of operations, the authorized person  referred  to in Article  18(1) shall, 

upon arrival of the goods at the place designated  for that purpose : 

(a) duly notify  the  competent  authorities of such arrival  in the form and 

manner  specified by them  for the purpose of obtaining  release of the 

goods ; 

(b) enter the said goods in his records. Such entry may be replaced by any 

other  formality  laid down by the  competent  authorities and  offering 

similar guarantees. The entry shall  indicate the date on which  it is made 

and the particulars necessary  for identification  of the goods; such entry 

or the act  in place of  it has the same force in law as the acceptance of 

the declaration  referred  to in Article  3. 

(c) make available  to the  competent  authorities all documents, the production 

of which may be required  for the application  of the Community  provisions 

governing the release of goods for free  circulation. 

2. On  condition that  checking on the proper  conduct of operations  is not thereby 

affected, the  competent  authorities may : 

(a) permit  the notification  referred  to in paragraph  1(a)  to 

be effected  as soon as the arrival of the goods becomes  imminent; 

°l 

- 6 -

(b) in certain  special  circumstances where the nature of the goods in 

question and the rapid rate of  importation  operations  so warrants, 

exempt  the authorized person from the obligation  to notify  the  competent 

customs office of each arrival of goods, on condition that he provides 

that office with all the information which  it deems necessary  to enable 

it to exercise, where appropriate, its right to examine  the goods. In 

that  case, entry of the goods in the records of the person  concerned 

shall be equivalent  to their release. 

Article  18c 

The authorisation  referred  to in Article  18(1) shall set out  the practical 

details for the functioning of the procedure and in particular : 

- the goods to which  it applies; 

-  the practical  details of the obligations  referred  to in Article  18b, as we-}l 

as the amount  of the global guarantee to be provided by the person  concerned; 

-  the time of release of the goods; 

-  the time limit within which  the declaration  referred  to in Article  3  must 

be 

presented  to  the  competent 

customs 

office 

designated 

for that purpose ; 

- the conditions in which goods are to be  covered by general, periodic or 

,yy-

recapitulative declarations. 

< i 

/ 

AO 

- 7 -

SIMPLIFIED DECLARATION  PROCEDURE 

Article  19 

1. The declarant or the person acting on his behalf shall, upon request, be 

authorized, in accordance with the conditions and in the manner  laid down in 

Articles  20 and  20a, to make the declaration  for release for free  circulation 

in a simplified  form where goods are presented  to customs with a view to 

their release for free  circulation . 

Such declaration may take the form, apart from that of a declaration  as 

referred  to in Article  6, of an administrative or  commercial  document 

containing the particulars necessary  for identification of the goods, 

accompanied by a request  for release for free circulation. 

The simplified  declaration  shall be accompanied by any document the 

production of which may be required  to secure the release of the goods for 

free circulation. 

2. Statements made  in supplementary  declarations, together with the  statements 

made  in the simplified  declarations to which they relate, shall be deemed to 

constitute a sincle, indivisible  instrument taking effect at the date on 

which the corresponding  initial declaration was accepted. 

3. The provisions of this Article shall be without prejudice to specific 

provisions applicable  in the case of the presentation  for release for free 

circulation of goods which have been placed under a customs procedure with 

economic impact. 

- 8 -

Article 20 

1. The authorization  referred''to in Article  19  shall  be granted on  condition 

that  : 

•'.'' 

.7 

- the applicant has not/ committed  a serious infringement or  repeated 

infringements of legislation  concerning trade  in goods; 

-  it is possible to guarantee an effective  check on  import prohibitions or 

restrictions  or Other provisions  governing  release  for free  circulation. 

2. The authorization may be refused where the applicant  declares  goods for 

release for free  circulation only  occasionally. 

3. The authorization shall be revoked  where one of the conditions  referred to 

in paragraph 1 ceases to be fulfilled.  It may be revoked  where the situation 

referred to in paragraph  2 exists. 

4. The  customs authorities  shall set out the grounds for decisions  refusing or 

revoking  authorisation. 

Article 20a 

1. The authorization  referred  to in Article  19 shall  in particular  designate the 

customs office(s) which accept  simplified  declarations, specify  the goods to 

which they apply as well as the particulars necessary  for the identification 

of the goods which must appear on the simplified  declaration  and specify the 

amount of the global guarantee  to be provided by the person  concerned. 

It shall also specify  the form and  content of the supplementary  declarations, 

which may be of a general, periodic or recapitulative  nature, and fix the 

time limits by which they must be  lodged with the competent  authority  to be 

designated. 

2. In the headings which  precede Articles 21 and 22 the letters  (D) and (E)  are 

deleted." 

n 

- 9 -

Article 2 

Member States shall take the measures necessary to comply with this Directive 

not later than 1 January 1993. 

The provisions adopted pursuant to the first paragraph shall make express 

reference to this Directive. 

Member States shall communicate these measures to the Commission. 

Article 3 

This Directive is addressed to the Member States 

Done at 

For the Council 

ISSN 0254-1475 

COM(89) 385 final 

DOCUMENTS 

02 06 

27.7.1989 

EN 

Catalogue number : CB-CO-89-372-EN-C 

ISBN 92-77-52611-4 

Office for Official  Publications of the European Communities 

L-2985 Luxembourg