Guidelines concerning PART II Title I Chapter 2 "End-use" of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code
Date: 2002-08-31
Institutions: European Commission
Subjects: EU customs procedure, customs union, legal code, simplification of formalities

C 207/2

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Official Journal of the European Communities

31.8.2002

Guidelines concerning PART II Title I Chapter 2 ‘End-use’ of Commission Regulation (EEC) No
2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation
(EEC) No 2913/92 establishing the Community Customs Code (1)

(2002/C 207/02)

The references made in these guidelines refer to that chapter.

Preliminary remarks

As specified in the Commission's communication concerning a
strategy for the customs union, and as requested by the
representatives of the Member States customs administrations,
guidelines should be drawn up for both administrations and
economic operators to complement the process of simplifi-
cation and modernisation of the customs procedures.

These guidelines do not constitute a legally binding act and are
of an explanatory nature. Their purpose is to provide a tool to
facilitate the correct application by the Member States of the
modernised legal provisions on end-use.

CHAPTER 2

END-USE

Article 291(1)

(Application/scope of the end-use procedure)

This chapter applies where it is provided that goods released
for free circulation with a favourable tariff treatment or at a
reduced or zero rate of duty on account of their end-use are
subject to end-use customs supervision.

The end-use procedure can be applied to favourable tariff
treatments as well as to non-tariff measures with import duty
implications under Articles 21 and 82 of the Code. However,
the procedure does not impose itself automatically but applies
only where and to the extent its application is provided for in
Community or national provisions. E.g. agricultural, fishery or
anti-dumping provisions could provide for the partial or total
use of the end-use procedure.

These provisions do not apply where the import duty rate
applicable under
for a
specific
than that which would
end-use
otherwise be applicable to the goods.

the end-use procedure to goods
is not

lower

Article 292(2)

(Application by using the model set out in Annex 67)

An applicant could apply to use more than one customs
In this case, the goods
procedure (integrated authorisation).

could be placed under
concerned alternatively (e.g.
system or end-use) or subsequently (e.g.
importation and afterwards end-use).

the different customs procedures
inward processing — drawback
firstly temporary

Article 292(5)

(Single authorisation)

The application for a single authorisation is to be submitted to
the customs authorities designated for the place where the
applicant's main accounts are held facilitating audit-based
controls of
the
operations to be covered by the authorisation are conducted;
or otherwise, where the goods should be assigned to the
prescribed end-use.

the procedure, and where at

least part of

customs

The main accounts could be those accounts which are to be
considered as the main accounts for customs purposes allowing
the
the
procedure. Consequently, the main accounts for the operator/
applicant and for customs purposes may not necessarily be the
same in each instance.

and monitor

to supervise

authorities

Furthermore, Article 292(5) should apply without prejudice to
national rules determining the competent customs authorities.

Article 292(7)

(The decision on authorisation)

The applicant is informed of the decision to issue an author-
isation, or the reasons why an application was rejected, within
30 days of the date the application was lodged or the date any
requested outstanding or additional information is received by
the customs authorities/administration. This period shall not
apply in the case of a single authorisation unless prior consul-
tation has been replaced by a simple notification in accordance
with Article 292(6).

(1) Consolidated versions of both regulations can be found in EUR-Lex:
http://europa.eu.int/eur-lex/en/consleg/reg/en_register_0210.html

The date to be considered for the lodging of the application
could be the date when the customs authorities received the
application.

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With regard to the calculation of the abovementioned 30 days
period, Council Regulation (EEC, Euratom) No 1182/71 (1) of 3
June 1971 determining the rules applicable to periods, dates
and time limits applies.

Article 293(1)

(Authorisation by using the model set out in Annex 67)

The model set out in Annex 67 is designed to cover the
customs procedures with economic impact and the end-use
procedure.

(Persons to whom authorisation may be granted)

— In principle an end-use authorisation could be granted to
any person established in the Community who fulfils the
stipulated conditions (in particular Article 293(1)(b)), and
always provided that efficient customs
supervision is
ensured. Authorisation could thus be granted not only to
operators who partly or totally assign the goods to a
prescribed end-use, but also to operators who purely
transfer them to other authorised operators.

— The person to whom an authorisation will be granted
(holder of an authorisation) takes over the obligation to
assign the goods to the prescribed end-use. This obligation
may be transferred to other persons in accordance with
Article 82(2) of the Code and Article 296(2) to (6) or
Article 297.

— The holder of an authorisation need not necessarily be the

owner of the goods.

— The customs authorities may make the placing of goods
conditional upon the

end-use procedure

under
the
provision of security.

Article 293(4)

(Validity of authorisation)

Article 294(3)

(Retroactive authorisation)

‘Obvious negligence’ may be attributed to a person,
in
particular where a person, or his/her representative, has failed
to comply with the procedural requirements which in principle
are a condition for granting an authorisation although that
person could have been aware of
their existence or has
already been in a similar situation and was consequently
aware of the legal requirements for obtaining such an author-
isation.

In order to determine whether there is ‘obvious negligence’
account must be taken in particular of the complexity of the
provisions and the professional experience of, and the care
taken by, the trader.

Example of a retroactive authorisation

On 1 February 2002, a firm imports non-Community goods,
which are released for free circulation. Subsequently, the firm's
customer goes bankrupt. However,
the firm finds another
customer who wishes to use the goods for a purpose benefiting
from end-use and who has a relevant end-use authorisation.

In this case, a retroactive authorisation could exceptionally
allow the goods to be ‘retroactively’ covered by end-use.

Therefore, on 1 July 2002, the firm applies for retroactive
authorisation. By virtue of Article 294(3), the customs auth-
orities may issue such an authorisation taking effect on 1
February 2002.

The recourse to retroactive authorisation is however subor-
dinated to a certain number of conditions:

— the provision should not apply as a general rule, but in
exceptional circumstances only, and the operator has to
prove the economic need,

— its application may not be related to attempted deception

or to obvious negligence,

The period of validity may not exceed three years from the
date the authorisation takes effect, except in cases where there
are duly justified good reasons.

— the periods of validity specified in Article 293(4) must be

respected,

Goods could be entered for the procedure only during the
period of validity of the authorisation. However, the end of
the period within which the goods have to be assigned to
the prescribed end-use could be after the period of validity
has expired.

(1) OJ L 124, 8.6.1971, p. 1.

— the

applicant's

the
requirements of the procedure can be deemed to be met
and amongst others allow the procedure to be controlled,

accounts must

confirm that

all

— the situation of the goods has to be regularised by invali-
dating the declaration for free circulation and making a
new declaration for
in
accordance with Article 251(1)(c) first indent.

free circulation with end-use,

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Article 300(1)(a)

Examples of when goods could be regarded as first assigned to
the prescribed end-use are:

(Completion of the end-use procedure)

Normally goods remain under customs supervision and condi-
tionally liable to import duties until they are first assigned to
the prescribed end-use. With the assignment to the prescribed
end-use the procedure is completed. From this moment no
possibility exists that a customs debt on importation could
be incurred. The holder of an authorisation is then able to
do as one wants with the goods. E.g. the holder could sell
and transfer the goods to an operator who does not have an
end-use authorisation.

However, with regard to goods which are suitable for repeated
use, customs supervision may continue for a maximum period
of two years after the date of first assignment. This prolon-
gation of the period of customs supervision is allowed only
where the customs authorities consider it appropriate in order
to avoid abuse. This would be a case-by-case decision and
could depend on the result of
risk analysis. During the
extended period of customs supervision the goods are condi-
tionally liable to import duties and a customs debt could be
incurred in accordance with Article 203 or 204 of the Code
and the holder of the relevant end-use authorisation would be
a debtor.

their

construction, maintenance,

— goods intended for certain types of aircraft for the purpose
or
of
equipping — when the aircraft is transferred to a third
party, or is again made available to its owner after main-
tenance, repair or conversion,

conversion

— civil aircraft — once they have been registered in the public

records specified for that purpose,

— vehicle parts used for assembly — when assembly of the
vehicle is complete and the vehicle has been transferred to
another person,

— goods intended for certain classes of vessel or for drilling or
the purpose of construction,
production platforms for
fitting or equipping —
repair, maintenance, conversion,
when the vessel or platform is transferred to a third
party, or again made available to its owner following main-
tenance, repair or conversion,

— goods supplied directly on board a vessel for the purpose of

equipping the vessel — at the time of supply.

Note:

In order to ensure legal certainty relevant authorisations should
clearly provide the details
regarding the point at which
customs supervision ends. This is not required where the
goods are not suitable for repeated use and the end of the
customs control is already apparent from the law (e.g. horses
for slaughter).

The first assignment to the prescribed end-use does not neces-
sarily mean that the end-use procedure has been completed.
This is only the case where the goods are not suitable for
repeated use or where customs authorities have decided that
the customs supervision shall not continue after the date of
first assignment (see above).