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
Date: 1994-07-20
Institutions: European Commission
Subjects: customs harmonisation, customs union, exemption from customs duties, international convention, postal service, simplification of formalities

COMMISSION  OF  THE  EUROPEAN  COftfllUNITIES 

C0M(Q4) 325 final 
Brussels, 20.07.1994 

94/0177 (ACC) 

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,  C l,  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 

THE COUNCIL OF THE EUROPEAN  UNION, 

(94/. ./EC) 

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. 

^ J n oL  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 

-  L  -

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. 

For the purposes of this Annex: 

Definitions 

(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. 
National  legislation  shall  specify  the  categories  of  persons  who  may  receive  an 
authorization for the duty-free replacement of goods. 

Standard 

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 
irrecoverable  waste  deriving  from  the 
manufacturing process. 

losses  and 

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. 

- S-

(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. 

-  ic 

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 

legislation  provides  for 

issuing  processing  authorizations  with 
Community 
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. 

~\l-

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. 

1. 

Principles 

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. 

- IC  -

8. 
Practice 

Recommended 

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. 
Practice 

Recommended 

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. 

-W 

11. 
Practice 

Recommended 

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. 
Practice 

Recommended 

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. 

- r& 

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. 
Practice 

Recommended 

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. 
Practice 

Recommended 

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. 
Practice 

Recommended 

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. 
Practice 

Recommended 

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. 
Practice 

Recommended 

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 
or 
toilet waters 

5.  Recommended practice 25 

50 grammes 

0.25 litre 

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 

- z <>