Proposal for a European Parliament and Council Regulation (EC) amending Regulation (EEC) No 2913/92 establishing the Community customs code (transit)
Date: 1997-09-26
Institutions: European Commission
Subjects: Union transit, carriage of goods, customs regulations, legal code, transit

COMMISSION OF THE EUROPEAN  COMMUNITIES 

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Brussels,  26.09.1997 
COM(97) 472 final 

97/ 0242  (COD) 

Proposal  for a 

EUROPEAN  PARLIAMENT  AND COUNCIL  REGULATION  (EC) 

AMENDING REGULATION (EEC) NO 2913/92 
ESTABLISHING THE COMMUNITY CUSTOMS CODE 
(TRANSIT) 

(presented  by the  Commission) 

EXPLANATORY  MEMORANDUM 

Recourse to external transit for Community goods 

(Article 91(1)) 

Article  91(1 )(b)  currently  lays  down  the  use  of  the  external  transit  procedure  for 
Community  goods "which are  subject  to  a Community measure  involving their  export  to 
third  countries  and in respect  of which the corresponding  customs  formalities  for  export 
have been carried  out".  Recourse to  external transit  -  a trade facilitation  procedure -  for 
the sole purpose of checking that Community goods are actually exported is inappropriate 
given that, in all but a very few cases, no use is made of the relevant transit guarantee. For 
agricultural  products,  the  T5  control  copy  and  the  guarantees  required  under  the 
legislation  on agriculture provide  sufficient  checks. That  being  so, while there is no wish 
to  rule  out  use  of  the  external  transit  procedure  in  connection  with  the  export  of 
Community  goods  at  this  stage,  its  definition  should  be  a  matter  for  the  committee 
procedure. 

Discharge of the transit procedure 

(Article 92) 

The concept of discharge is essential to the proper administration of the transit procedure, 
to  a  clear  definition  of  the  liabilities  of  the  principal  and  the  guarantor,  and  to  the 
instigation  of any investigation  or  recovery  procedures  required.  It  is already used  in the 
implementing  provisions  despite  the  fact  that  it  is  not  defined  in  the  Code  itself.  The 
proposal is intended to rectify this anomaly. 

Guarantee waiver 

(Articles 94 and 95) 

Article  94(2)  permits exceptions to the rule that  no guarantee  need be furnished,  notably 
for  journeys  by  sea,  to  be  determined  in  accordance  with  the  committee  procedure. 
Transit  guarantees  for  journeys  by  sea  are  in  the  process  of  being  introduced  into  the 
Customs  Code  implementing  provisions.  However,  we  should  take  this  opportunity  to 
delete  journeys  by  sea  from  Article 94(2)(a),  so  that  guarantees  are  no  longer  the 
exception  and  maritime  transport  via  a  shipping  line  is  treated  on  a  par  with  road 
transport, etc. 

The  new  approach  to  comprehensive  guarantees  adopted  in  the  Customs  Code 
implementing provisions will allow them to be tailored to the trader's trustworthiness  and 
even reduced to zero, which amounts to granting a guarantee waiver. Article 95  therefore 
requires  redrafting  to  enable  the  guarantee  waiver  to  be  included  in  the  implementing 
provisions as one of the options available when determining the comprehensive guarantee, 
via the committee procedure. 

1 

Responsibilities of carriers and consignees 

(Article 96) 

Under  Article  96(2),  carriers  or  consignees  who  accept  goods  knowing  that  they  are 
moving under Community transit have a duty to  produce the goods at the customs  office 
of destination with due observance of the measures adopted by the customs authorities  for 
their  identification,  notwithstanding  the  principal's  own  obligations.  This  clause  leads  to 
confusion  between  the  responsibilities  imposed  on  the  relevant  parties  by  the  transit 
regulations proper and their existing obligations under the general Code provisions on the 
introduction  of  goods  into  the  Community  customs  territory,  without  prejudice  to  any 
enforcement  provisions  that  may  apply.  At  the  same time,  in terms  of  possible  financial 
penalties  for  non-compliance,  it  adds  nothing  to  the  relevant  Code  provisions  on  the 
incurrence of and liability for customs debt. Hence, it can be deleted. 

National and bi/multilateral simplified  procedures 

(Article 97) 

Article 97(2) gives Member  States the option  of introducing  simplified  transit  procedures 
for  mutual  or  domestic  trade  purposes.  The  Member  States'  own  simplified  domestic 
procedures vary greatly and may in some cases conflict with the need to apply Community 
transit  rules  properly  and  to  guarantee  traders  equal  treatment.  Existing  Community 
legislation  on certain air  and  sea transport  operations  offers  some scope for  bilateral  and 
multilateral  simplification  schemes.  The  new  Customs  Code  implementing  provisions  on 
transit will in future  offer  customs authorities and operators a wide range of opportunities 
for  simplifying  formalities  and  considerable  freedom  in  applying  them.  To  improve 
transparency  and  ensure that the rules are applied  more uniformly,  such measures  should 
be made to cover all types of transit arrangement within the customs territory,  irrespective 
of  the  geographical  scope  of  the  operations  covered.  This  renders  Article 97(2) 
superfluous. 

Guarantees for duties and other charges in transit 

(Article 192) 

Article 94(1) of the Code requires the provision  of a guarantee for  Community transit  in 
order to ensure payment  of any customs debt or  other  charges which may be  incurred  in 
respect  of  the  goods.  Guarantee  systems  for  Community 
the 
comprehensive  guarantee,  are  a  special  case  because  the  arrangements  are  international 
and the sum required needs to be tailored to the actual risks inherent in the operation and 
the  principal's  trustworthiness;  hence the  need  to  insert  a proviso  with  regard  to  transit 
guarantees in Article 192. 

transit,  notably 

Place where the customs debt was incurred and authority responsible for  entering it in the 
accounts 

(Article 215) 

Under  the  current  Article  215  rule  it  is possible  to  establish  where  the  customs  debt  is 
incurred,  but  not  to  link  this  with  the  customs  authority  responsible  for  its  entry  in  the 
accounts. Moreover, the rule laid down in Article 215(3) for  establishing the place where 
debts  relating  to  undischarged  procedures  are  incurred  is  neither  suited  to  suspensive 
procedures  such as transit  nor reflects the need to determine,  as far  as possible, the place 
where  the  taxable  events  actually  occurred,  where  charges  other  than  duties  are 
concerned. Hence the need to redraft  those provisions. 

PROPOSAL FOR A 
EUROPEAN PARLIAMENT AND COUNCIL REGULATION (EC) AMENDING 
REGULATION (EEC) NO 2913/92 ESTABLISHING THE COMMUNITY 
CUSTOMS CODE 
(TRANSIT) 

THE  EUROPEAN  PARLIAMENT  AND  THE  COUNCIL  OF  THE  EUROPEAN 
UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles 28, 100a and  113 thereof, 

Having regard to the proposal from the Commission, 

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

Acting in accordance with the procedure laid down in Article  189b of the Treaty, 

(1)  Whereas the external transit procedure is primarily designed to facilitate trade in non-
Community  goods  in  the  customs  territory;  whereas  the  need  for  recourse  to  that 
procedure for the export  of Community  goods appears  relatively  limited  and  should 
be assessed  in terms of the wide variety of circumstances  covered; whereas, without 
ruling out all use of the external transit procedure in such cases, its definition  should 
be a matter for the committee procedure; 

(2)  Whereas the concept  of discharge of the transit procedure  should be defined,  as it is 
essential  to  proper  administration  of  the  procedure,  to  a  clear  definition  of  the 
liabilities  of  the  principal  and  the  guarantor,  and  to  the  instigation  of  any 
investigation or recovery procedures required; 

(3)  Whereas,  in the light of amendments to the scope of transit  by sea,  this  opportunity 
should  be taken  to  delete journeys  by  sea  from  Article 94(2)(a),  so that  guarantees 
are no longer the exception and maritime transport via a shipping line is treated  on a 
par with, for example, road transport; 

(4)  Whereas Article 95 should be redrafted  to  enable the individual guarantee waiver  to 
be  included  in  the  implementing  provisions  as  one  of  the  options  available  when 
determining  the  comprehensive  guarantee,  via the  committee  procedure,  contingent 
upon recognition of the highest standards of reliability on the part of the trader; 

(5)  Whereas  Article  96(2),  which  lays  down  that  carriers  or  consignees  who  accept 
goods  knowing  that  they  are  moving  under  Community  transit  have  a  duty  to 
produce  the  goods  at  the  customs  office  of  destination  with due  observance  of  the 
measures adopted by the customs authorities for their identification,  notwithstanding 
the  principal's  own  obligations,  creates  confusion  between  the  responsibilities 

imposed  on  the  relevant  parties  by the transit  regulations  proper  and  their  existing 
obligations under the general  Code provisions on the introduction  of goods into the 
Community  customs  territory;  whereas,  moreover,  it  adds  nothing  to  the  relevant 
Code  provisions  on  the  incurrence  of  and  liability  for  customs  debt;  whereas, 
therefore,  it may be deleted; 

(6)  Whereas  the  simplified  domestic,  bilateral  or  multilateral  procedures  introduced  by 
the Member  States under  Article 97(2) vary greatly  and  may in  some  cases  conflict 
with  the  need  to  apply  Community  transit  rules  properly  and  to  guarantee  traders 
equal  treatment,  whereas  they  should  therefore  be  reincorporated 
into  the 
Community  framework,  especially  since  the  new  Customs  Code  implementing 
provisions  on  transit  will  in  future  offer  customs  authorities  and  operators  a  wide 
range  of  opportunities  for  simplifying  formalities  and  considerable  freedom  in 
applying them; whereas this will render Article 97(2)  superfluous; 

(7)  Whereas  guarantee  systems  for  Community  transit  cover  both  customs  debt  and 
other charges which may be incurred  in respect of the goods, and constitute a special 
case  because  the  arrangements  are  international  and  the  sum  required  needs  to  be 
tailored 
the  principal's 
trustworthiness; whereas, therefore,  there is a need to insert a proviso with regard to 
transit guarantees in Article 192; 

the  actual  risks  inherent 

in  the  operation  and 

to 

(8)  Whereas  under  the  current  Article  215  rule  it  is  possible  to  establish  where  the 
customs  debt  is incurred,  but  not to link this with the customs  authority  responsible 
for  its recovery;  whereas,  moreover,  where  a customs  procedure  is not  discharged, 
the  rule  for  establishing  the  place  where  the  customs  debt  is  incurred  should  be 
amended  to  reflect  the  need  to  determine,  as  far  as  possible,  the  place  where  the 
taxable events actually occurred, 

(9)  Whereas simplification  and clarification  of the rules for the benefit  of both  operators 
and customs officials  form  an essential part  of the action plan for  Customs transit in 
Europe, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Regulation (EEC) No 2913/92 is hereby amended as follows: 

1.  Article 91(1 )(b) is replaced by the following : 

"(b) Community  goods,  in  cases  and  upon  conditions  determined  in  accordance 
with the committee procedure." 

2.  Article 92 is replaced by the following: 

"Article 92 

The external transit  procedure shall be discharged  when the goods entered  for  the 
the 
procedure  are  produced  at 

the  customs  office  of  destination  with 

corresponding  documents,  in accordance  with  the  provisions  of the  procedure  in 
question." 

3.  Article 94(2), point (a) is replaced by the following: 

"(a) journeys by air," 

4.  Article 95 is replaced by the following: 

"Article 95 

The cases in which  and the  conditions upon which  a person  may  obtain from  the 
customs  authorities  a guarantee  waiver  for  Community  transit  operations  carried 
out by him shall be determined in accordance with the committee procedure. " 

5.  Article 96(2) is deleted; Article 96(1) stands alone. 

6.  Article 97(2) is deleted; Article 97(1) stands alone. 

7.  Article  192(1) is replaced by the following: 

"1.  Where  customs  legislation  makes  it  compulsory  for  security  to  be  provided, 
and  subject  to the specific  provisions laid down for  transit  in accordance with the 
committee procedure, the customs authorities shall fix the amount of such security 
at a level equal to:" (the rest is unchanged) 

8.  Article 215(1) to (3) is replaced by the following new paragraph (1): 

"1.  For  the  purpose  of  determining  the  authority  competent  for  entry  in  the 

accounts, a customs debt shall be incurred: 

-  at the place where the events from which it arises occur, 

- 

- 

if it is not possible to determine that place, at the place where the customs 
authorities conclude that the goods are in a situation  in which a  customs 
debt is incurred, 

if the  goods  have  been  entered  for  a  customs  procedure  which  has  not 
been discharged,  and the place cannot be determined  pursuant  to the first 
or  second  indent  within  a période  of time  determined,  if appropriate,  in 
accordance with the committee procedure,  at the place where the  goods 
were  either  entered  for  the  procedure  or  were  introduced  into  the 
Community customs territory under that procedure. 

9.  Article 215(4) is renumbered paragraph (2). 

Article 2 

This Regulation shall enter into force on 1 

199.. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all  Member 
States. 

Done at Brussels, 

ISSN 0254-1475 

COM(97) 472 final 

DOCUMENTS 

EN 

02  17 

Catalogue number  :  CB-C0-97-484-EN-C 

ISBN 92-78-24985-8 

Office  for Official  Publications of the European Communities 

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