2003/231/EC: Council Decision of 17 March 2003 concerning the accession of the European Community to the Protocol of Amendment to the International Convention on the simplification and harmonisation of customs procedures (Kyoto Convention)
Date: 2003-04-03
Institutions: Council of the European Union
Subjects: accession to an agreement, customs harmonisation, customs regulations, international convention, simplification of formalities

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II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 17 March 2003

concerning the accession of the European Community to the Protocol of Amendment to the Inter-
national Convention on the simplification and harmonisation of customs procedures (Kyoto
Convention)

(2003/231/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 133 in conjunction with the first
sentence of the first subparagraph of Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

The Community has been a Contracting Party to the
International Convention on the simplification and
harmonisation of
hereinafter
customs procedures,
referred to as ‘the Convention’, since 1974.

At its sessions on 26 June 1999 the Customs Coopera-
tion Council adopted the Protocol of Amendment to the
Convention. Appendix I to the Protocol of Amendment
contains the text of the revised Preamble and of the
revised articles of the Convention, Appendix II to the
Protocol of Amendment contains the revised General
Annex and Appendix III to the Protocol of Amendment
contains
revised
Preamble and the revised articles of
the Convention
together with the revised General Annex and the revised
specific annexes are called the revised Kyoto Convention.

revised specific annexes. The

the

the principles of

The implementation of
the revised
Kyoto Convention will yield significant and measurable
results by improving the effectiveness and efficiency of
customs administrations and, therefore,
the economic
competitiveness of nations; it will also encourage invest-
ment and the development of
industry and it can
increase the participation of small and medium-sized
enterprises in international trade.

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Contracting Parties to the revised Kyoto Convention
show commitment to the application of clear, trans-
parent and up-to-date customs procedures, allowing for
a more rapid customs clearance of goods through new
use of information technology and new techniques for
customs control such as risk assessment and audits.

The Protocol of Amendment,
including Appendices I
and II thereto, are to enter into force three months after
40 Contracting Parties to the Convention have expressed
their consent to be bound by the Protocol of Amend-
ment, including Appendices I and II.

Initially the European Community is to accede to the
Protocol of Amendment, including Appendices I and II
thereto. Accession to the revised specific annexes,
contained in Appendix III to the Protocol of Amend-
ment, will be decided at a later stage,

HAS DECIDED AS FOLLOWS:

Article 1

The accession of

1.
the European Community to the
Protocol of Amendment to the International Convention on the
simplification and harmonisation of customs procedures, with
the exception of Appendix III, is hereby approved on behalf of
the European Community.

The text of

2.
Appendices I and II, appear in Annex I to this Decision.

the Protocol of Amendment,

including

The revised Kyoto Convention is an essential element in
the facilitation of
trade and as such an important
stimulus for economic growth for those partners which
have accepted it.

3.
The information required under Article 8(5)(a) and the
notification required under Article 11 of the revised Kyoto
Convention appear in Annexes II and III respectively to this
Decision.

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Article 2

1.
The Community shall be represented in the Management
Committee provided for in Article 6 of Appendix I to the
Protocol of Amendment to the Convention by the Commission,
assisted by the representatives of the Member States.

2.
The position to be adopted by the Community in the
Management Committee, when it deals with questions within
the competence of the Community, shall be adopted by the
Council acting in accordance with the voting rules resulting
from the applicable provisions of the Treaty.

Article 3

The President of

is hereby authorised to
the Council
1.
designate the persons empowered to deposit the instrument of
accession to the Protocol of Amendment, including Appendices
I and II, on behalf of the Community. Such deposit shall take
place at the same time as the deposit of instruments of acces-
sion by the Member States.

The persons empowered shall also communicate to the
2.
Secretary-General of
the
information and the notification, which appear in Annexes II
and III respectively to this Decision.

the Customs Cooperation Council

Article 4

This Decision shall be published in the Official Journal of the
European Union.

Done at Brussels, 17 March 2003.

For the Council

The President

G. DRYS

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ANNEX I

PROTOCOL OF AMENDMENT TO THE INTERNATIONAL CONVENTION ON THE SIMPLIFICATION AND
HARMONISATION OF CUSTOMS PROCEDURES

(done at Brussels on 26 June 1999)

The Contracting Parties to the International Convention on the simplification and harmonisation of customs procedures
(done at Kyoto on 18 May 1973 and entered into force on 25 September 1974), hereinafter ‘the Convention’, established
under the auspices of the Customs Cooperation Council, hereinafter ‘the Council’,

CONSIDERING that to achieve the aims of:

— eliminating divergence between the customs procedures and practices of Contracting Parties that can hamper interna-

tional trade and other international exchanges,

— meeting the needs of international trade and the customs for facilitation, simplification and harmonisation of

customs procedures and practices,

— ensuring appropriate standards of customs control, and

— enabling the customs to respond to major changes in business and administrative methods and techniques,

the Convention must be amended,

CONSIDERING also that the amended Convention:

— must provide that the core principles for such simplification and harmonisation are made obligatory on Contracting

Parties to the amended Convention,

— must provide the customs with efficient procedures supported by appropriate and effective control methods, and

— will enable the achievement of a high degree of simplification and harmonisation of customs procedures and prac-
tices which is an essential aim of the Council, and thus make a major contribution to facilitation of international
trade,

HAVE AGREED AS FOLLOWS:

Article 1

The Preamble and the Articles of the Convention are amended
as set out in the text contained in Appendix I hereto.

Article 2

The Annexes of the Convention are replaced by the General
Annex contained in Appendix II and by the specific annexes
contained in Appendix III hereto.

3.
This Protocol, including Appendices I and II, shall enter
into force three months after 40 Contracting Parties have
signed this Protocol without reservation of ratification or have
deposited their instrument of ratification or accession.

4.
After 40 Contracting Parties have expressed their consent
to be bound by this Protocol in accordance with paragraph 1, a
Contracting Party to the Convention shall accept the amend-
ments to the Convention only by becoming a party to this
Protocol. For such a Contracting Party, this Protocol shall come
into force three months after it signs this Protocol without
reservation of ratification or deposits an instrument of ratifica-
tion or accession.

Article 3

Article 4

1.
Any Contracting Party to the Convention may express its
consent to be bound by this Protocol, including Appendices I
and II, by:

(a) signing it without reservation of ratification;

(b) depositing an instrument of ratification after signing it

subject to ratification; or

(c) acceding to it.

the specific annexes or chapters

Any Contracting Party to the Convention may, when it
expresses its consent to be bound by this Protocol, accept any
of
therein contained in
Appendix III hereto and shall notify the Secretary-General of
the Council of such acceptance and of the recommended prac-
tices in respect of which it enters reservations.

This Protocol shall be open until 30 June 2000 for signa-
in Brussels by the
it shall be

2.
ture at the Headquarters of the Council
Contracting Parties to the Convention. Thereafter,
open for accession.

After the entry into force of this Protocol, the Secretary-General
of the Council shall not accept any instrument of ratification or
accession to the Convention.

Article 5

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Article 6

Article 9

In relations between the Parties hereto, this Protocol with its
appendices shall supersede the Convention.

Article 7

The Secretary-General of the Council shall be the depositary of
this Protocol and shall perform the functions as provided for in
Article 19 contained in Appendix I to this Protocol.

Article 8

This Protocol shall be open for signature by the Contracting
Parties to the Convention at the Headquarters of the Council in
Brussels from 26 June 1999.

In accordance with Article 102 of the Charter of the United
Nations, this Protocol and its Appendices shall be registered
with the Secretariat of the United Nations at the request of the
Secretary-General of the Council.

In witness whereof
thereto, have signed this Protocol.

the undersigned, being duly authorised

this twenty-sixth day of

Done at Brussels,
June nineteen
hundred and ninety-nine, in the English and French languages,
both texts being equally authentic, in a single original which
shall be deposited with the Secretary-General of the Council
who shall transmit certified copies to all the entities referred to
in paragraph 1 of Article 8 contained in Appendix I to this
Protocol.

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Appendix I to Annex I

INTERNATIONAL CONVENTION ON THE SIMPLIFICATION AND HARMONISATION OF CUSTOMS
PROCEDURES

(as amended)

PREAMBLE

The Contracting Parties to the present Convention established under the auspices of the customs Cooperation Council,

ENDEAVOURING to eliminate divergence between the customs procedures and practices of Contracting Parties that can
hamper international trade and other international exchanges,

DESIRING to contribute effectively to the development of such trade and exchanges by simplifying and harmonising
customs procedures and practices and by fostering international cooperation,

NOTING that the significant benefits of facilitation of international trade may be achieved without compromising appro-
priate standards of customs control,

RECOGNISING that such simplification and harmonisation can be accomplished by applying, in particular, the following
principles:

— the implementation of programmes aimed at continuously modernising customs procedures and practices and thus

enhancing efficiency and effectiveness,

— the application of customs procedures and practices in a predictable, consistent and transparent manner,

— the provision to interested parties of all the necessary information regarding customs laws, regulations, administrative

guidelines, procedures and practices,

— the adoption of modern techniques such as risk management and audit-based controls, and the maximum practicable

use of information technology,

— cooperation wherever appropriate with other national authorities, other customs administrations and the trading

communities,

— the implementation of relevant international standards,

— the provision to affected parties of easily accessible processes of administrative and judicial review,

CONVINCED that an international instrument incorporating the above objectives and principles that Contracting Parties
undertake to apply would lead to the high degree of simplification and harmonisation of customs procedures and prac-
tices which is an essential aim of the customs Cooperation Council, and so make a major contribution to facilitation of
international trade,

HAVE AGREED AS FOLLOWS:

CHAPTER I

Definitions

Article 1

For the purposes of this Convention:

(a) ‘standard’ means a provision the implementation of which
is recognised as necessary for the achievement of harmoni-
sation and simplification of customs procedures and prac-
tices;

(b) ‘transitional standard’ means a standard in the General
Annex for which a longer period for implementation is
permitted;

imposed by

legislation’ means laws, regulations and other
(d) ‘national
measures
a
competent
Contracting Party and applicable throughout the territory
of the Contracting Party concerned, or treaties in force by
which that Party is bound;

authority of

a

(e) ‘General Annex’ means the set of provisions applicable to
all the customs procedures and practices referred to in this
Convention;

(f) ‘specific annex’ means a set of provisions applicable to one
or more customs procedures and practices referred to in
this Convention;

(g) ‘Guidelines’ means a set of explanations of the provisions of
the General Annex, specific annexes and chapters therein
which indicate some of the possible courses of action to be
followed in applying the standards, transitional standards
and recommended practices, and in particular describing
best practices and recommending examples of greater facil-
ities;

(c) ‘recommended practice’ means a provision in a specific
the widest
annex which is
possible application of which is considered to be desirable;

recognised and practices,

(h) ‘Permanent Technical Committee’ means the Permanent

Technical Committee of the Council;

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(ij) ‘Council’ means the organisation set up by the Convention
establishing a Customs Cooperation Council, done at Brus-
sels on 15 December 1950;

(k) ‘customs or economic union’ means a union constituted by,
and composed of States which has competence to adopt its
own regulations that are binding on those States in respect
of matters governed by this Convention, and has compe-
tence to decide, in accordance with its internal procedures,
to sign, ratify or accede to this Convention.

CHAPTER III

MANAGEMENT OF THE CONVENTION

Management Committee

Article 6

CHAPTER II

SCOPE AND STRUCTURE

Scope of the Convention

Article 2

Each Contracting Party undertakes to promote the simplifica-
tion and harmonisation of customs procedures and, to that
in accordance with the provisions of this
end, to conform,
Convention, to the standards, transitional standards and recom-
mended practices in the annexes to this Convention. However,
nothing shall prevent a Contracting Party from granting facil-
ities greater
therein, and each
Contracting Party is recommended to grant such greater facil-
ities as extensively as possible.

than those provided for

Article 3

The provisions of this Convention shall not preclude the appli-
cation of national legislation with regard to either prohibitions
or restrictions on goods which are subject to customs control.

Structure of the Convention

Article 4

The Convention comprises a body, a General Annex and

1.
specific annexes.

2.
The General Annex and each specific annex to this
Convention consist, in principle, of chapters which subdivide
an annex and comprise:

(a) definitions; and

(b) standards, some of which in the General Annex are transi-

tional standards.

3.

Each specific annex also contains recommended practices.

Each Annex is accompanied by Guidelines, the texts of

4.
which are not binding upon Contracting Parties.

Article 5

For the purposes of this Convention, any specific annex(es) or
chapter(s) therein to which a Contracting Party is bound shall
be construed to be an integral part of the Convention, and in
relation to that Contracting Party any reference to the Conven-
tion shall be deemed to include a reference to such annex(es)
or chapter(s).

1.
There shall be established a Management Committee to
consider the implementation of this Convention, any measures
to secure uniformity in the interpretation and application
thereof, and any amendments proposed thereto.

The Contracting Parties shall be members of the Manage-

2.
ment Committee.

3.
The competent administration of any entity qualified to
become a Contracting Party to this Convention under the
provisions of Article 8 or of any Member of the World Trade
Organisation shall be entitled to attend the sessions of the
Management Committee as an observer. The status and rights
of such observers shall be determined by a Council Decision.
The aforementioned rights cannot be exercised before the entry
into force of the Decision.

The Management Committee may invite the representa-
international governmental and non-governmental
the Management

to attend the sessions of

4.
tives of
organisations
Committee as observers.

5.

The Management Committee:

(a) shall recommend to the Contracting Parties:

(i) amendments to the Body of this Convention,

(ii) amendments

specific
to the General Annex,
annexes and chapters therein and the incorporation of
new chapters to the General Annex, and

the

(iii) the incorporation of new specific annexes and new

chapters to specific annexes;

(b) may decide to amend recommended practices or to incor-
porate new recommended practices to specific annexes or
chapters therein in accordance with Article 16;

(c) shall consider implementation of the provisions of this

Convention in accordance with Article 13(4);

(d) shall review and update the Guidelines;

(e) shall consider any other issues of relevance to this Conven-

tion that may be referred to it;

(f) shall inform the Permanent Technical Committee and the

Council of its decisions.

The competent administrations of the Contracting Parties
6.
shall communicate to the Secretary-General of
the Council
proposals under paragraph 5(a), (b), (c) or (d) of this Article
and the reasons therefor, together with any requests for the
inclusion of items on the agenda of the sessions of the Manage-
ment Committee. The Secretary-General of the Council shall
bring proposals to the attention of the competent administra-
tions of the Contracting Parties and of the observers referred to
in paragraphs 2, 3 and 4 of this Article.

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The Management Committee shall meet at least once each
7.
year. It shall annually elect a Chairman and Vice-Chairman. The
Secretary-General of the Council shall circulate the invitation
and the draft agenda to the competent administrations of the
Contracting Parties and to the observers referred to in para-
graphs 2, 3 and 4 of this Article at least six weeks before the
Management Committee meets.

8. Where a decision cannot be arrived at by consensus,
matters before the Management Committee shall be decided by
voting of the Contracting Parties present. Proposals under para-
graph 5(a), (b) or (c) of this Article shall be approved by a two-
thirds majority of the votes cast. All other matters shall be
decided by the Management Committee by a majority of the
votes cast.

this Convention applies,

9. Where Article 8(5) of
the
customs or economic unions which are Contracting Parties
shall have, in case of voting, only a number of votes equal to
the total votes allotted to their Members which are Contracting
Parties.

Before the closure of

10.
the Management
Committee shall adopt a report. This report shall be transmitted
to the Council and to the Contracting Parties and observers
mentioned in paragraphs 2, 3 and 4.

session,

its

11.
In the absence of relevant provisions in this Article, the
Rules of Procedure of the Council shall be applicable, unless
the Management Committee decides otherwise.

Article 7

For the purpose of voting in the Management Committee, there
shall be separate voting on each specific annex and each
chapter of a specific annex.

(a) Each Contracting Party shall be entitled to vote on matters
relating to the interpretation, application or amendment of
the body and General Annex of the Convention.

(b) As regards matters concerning a specific annex or chapter
of a specific annex that is already in force, only those
Contracting Parties that have accepted that specific annex
or chapter therein shall have the right to vote.

(c) Each Contracting Party shall be entitled to vote on drafts of
new specific annexes or new chapters of a specific annex.

CHAPTER IV

CONTRACTING PARTY

Ratification of the Convention

Article 8

1.
Any Member of the Council and any Member of the
United Nations or its specialised agencies may become a
Contracting Party to this Convention:

(a) by signing it without reservation of ratification;

(b) by depositing an instrument of ratification after signing it

subject to ratification; or

(c) by acceding to it.

2.
This Convention shall be open until 30 June 1974 for
signature at the Headquarters of the Council in Brussels by the
Members referred to in paragraph 1 of this Article. Thereafter,
it shall be open for accession by such Members.

3.
Any Contracting Party shall, at the time of signing, rati-
fying or acceding to this Convention, specify which if any of
It may
the specific annexes or chapters therein it accepts.
subsequently notify the depositary that it accepts one or more
specific annexes or chapters therein.

4.
Contracting Parties accepting any new specific annex or
any new chapter of a specific annex shall notify the depositary
in accordance with paragraph 3 of this Article.

5.

(a) Any customs or economic union may become, in accor-
dance with paragraphs 1, 2 and 3 of this Article, a
Contracting Party to this Convention. Such customs or
its
economic union shall
competence with respect to the matters governed by this
Convention. Such customs or economic union shall also
inform the depositary of any substantial modification in
the extent of its competence.

inform the depositary of

(b) A customs or economic union which is a Contracting
Party to this Convention shall, for the matters within its
competence, exercise in its own name the rights, and
fulfil the responsibilities, which the Convention confers
on the members of such a union which are Contracting
Parties to this Convention. In such a case, the members
of such a union shall not be entitled to individually exer-
cise these rights, including the right to vote.

Article 9

1.
Any Contracting Party which ratifies this Convention or
accedes thereto shall be bound by any amendments to this
Convention, including the General Annex, which have entered
into force at the date of deposit of its instrument of ratification
or accession.

Any Contracting Party which accepts a specific annex or
2.
chapter therein shall be bound by any amendments to the stan-
dards contained in that specific annex or chapter which have
entered into force at the date on which it notifies its acceptance
to the depositary. Any Contracting Party which accepts a
specific annex or chapter therein shall be bound by any amend-
ments to the recommended practices contained therein, which
have entered into force at the date on which it notifies its
acceptance to the depositary, unless it enters reservations
against one or more of those recommended practices in accor-
dance with Article 12 of this Convention.

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Application of the Convention

Article 10

force of this Convention for that Contracting Party, specifying
the provisions of its national legislation which, in its opinion,
are contrary to the withdrawal of the reservations.

1.
Any Contracting Party may, at the time of signing this
Convention without reservation of ratification or of depositing
its instrument of ratification or accession, or at any time there-
after, declare by notification given to the depositary that this
Convention shall extend to all or any of the territories for
whose international relations it is responsible. Such notification
shall take effect three months after the date of the receipt
thereof by the depositary. However, this Convention shall not
apply to the territories named in the notification before this
Convention has entered into force for the Contracting Party
concerned.

2.
Any Contracting Party which has made a notification
under paragraph 1 of this Article extending this Convention to
any territory for whose international relations it is responsible
may notify the depositary, under the procedure of Article 19 of
this Convention, that the territory in question will no longer
apply this Convention.

Article 11

For the application of this Convention, a customs or economic
union that is a Contracting Party shall notify to the Secretary-
General of the Council the territories which form the customs
or economic union, and these territories are to be taken as a
single territory.

Acceptance of the provisions and reservations

Article 12

All Contracting Parties are hereby bound by the General

1.
Annex.

the standards

2.
A Contracting Party may accept one or more of the
specific annexes or one or more of the chapters therein. A
Contracting Party which accepts a specific annex or chapter(s)
therein shall be bound by all
therein. A
Contracting Party which accepts a specific annex or chapter(s)
therein shall be bound by all
the recommended practices
therein unless, at the time of acceptance or at any time there-
after, it notifies the depositary of the recommended practice(s)
in respect of which it enters reservations, stating the differences
existing between the provisions of its national legislation and
those of
concerned. Any
recommended practice(s)
Contracting Party which has entered reservations may with-
draw them, in whole or in part, at any time by notification to
the depositary specifying the date on which such withdrawal
takes effect.

the

3.
Each Contracting Party bound by a specific annex or
chapter(s) therein shall examine the possibility of withdrawing
any reservations to the recommended practices entered under
the terms of paragraph 2 and notify the Secretary-General of
the Council of the results of that review at the end of every
three-year period commencing from the date of the entry into

Implementation of the provisions

Article 13

1.
Each Contracting Party shall implement the standards in
the General Annex and in the specific annex(es) or chapter(s)
it has accepted within 36 months after such
therein that
annex(es) or chapter(s) have entered into force for
that
Contracting Party.

2.
Each Contracting Party shall implement the transitional
standards in the General Annex within 60 months of the date
that
that
the General Annex has entered into force for
Contracting Party.

3.
Each Contracting Party shall implement the recommended
practices in the specific annex(es) or chapter(s) therein that it
has accepted within 36 months after such specific annex(es) or
chapter(s) have entered into force for that Contracting Party,
unless reservations have been entered as to one or more of
those recommended practices.

4.

(a) Where the periods provided for in paragraph 1 or 2 of
this Article would, in practice, be insufficient for any
Contracting Party to implement the provisions of the
General Annex, that Contracting Party may request the
Management Committee, before the end of the period
this Article,
referred to in paragraph 1 or 2 of
to
provide an extension of
In making the
that period.
request, the Contracting Party shall state the provision(s)
of the General Annex with regard to which an extension
of
the period is required and the reasons for such
request.

(b) In

exceptional

circumstances,

the Management
Committee may decide to grant such an extension. Any
decision by the Management Committee granting such
an extension shall state the exceptional circumstances
justifying the decision and the extension shall in no case
be more than one year. At the expiry of the period of
extension, the Contracting Party shall notify the deposi-
tary of the implementation of the provisions with regard
to which the extension was granted.

Settlement of disputes

Article 14

1.
Any dispute between two or more Contracting Parties
concerning the interpretation or application of this Convention
shall so far as possible be settled by negotiation between them.

2.
Any dispute which is not settled by negotiation shall be
referred by the Contracting Parties in dispute to the Manage-
ment Committee which shall thereupon consider the dispute
and make recommendations for its settlement.

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The Contracting Parties in dispute may agree in advance
3.
to accept the recommendations of the Management Committee
as binding.

(b) the date of expiry of the 18-month period referred to in

paragraph 4 of this Article.

Amendments to the Convention

Article 15

The text of any amendment

1.
recommended to the
Contracting Parties by the Management Committee in accor-
dance with Article 6(5)(a)(i) and (ii) shall be communicated by
the Secretary-General of the Council to all Contracting Parties
and to those Members of the Council that are not Contracting
Parties.

2.
Amendments to the body of the Convention shall enter
into force for all Contracting Parties twelve months after
deposit of the instruments of acceptance by those Contracting
Parties present at the session of the Management Committee
during which the amendments were recommended, provided
that no objection is lodged by any of the Contracting Parties
within a period of 12 months from the date of communication
of such amendments.

Any recommended amendment to the General Annex or
3.
the specific annexes or chapters therein shall be deemed to
have been accepted six months after the date the recommended
amendment was communicated to Contracting Parties, unless:

(a) there has been an objection by a Contracting Party or, in
the case of a specific annex or chapter, by a Contracting
Party bound by that specific annex or chapter; or

(b) a Contracting Party informs the Secretary-General of the
the recom-
the conditions necessary for such

Council
mended amendment,
acceptance are not yet fulfilled.

intends to accept

that, although it

If a Contracting Party sends the Secretary-General of the
4.
Council a communication as provided for in paragraph 3(b) of
this Article, it may, so long as it has not notified the Secretary-
General of the Council of its acceptance of the recommended
amendment, submit an objection to that amendment within a
period of 18 months following the expiry of the six-month
period referred to in paragraph 3 of this Article.

5.
If an objection to the recommended amendment is noti-
fied in accordance with the terms of paragraph 3(a) or 4 of this
Article, the amendment shall be deemed not to have been
accepted and shall be of no effect.

6.
If any Contracting Party has sent a communication in
accordance with paragraph 3(b) of this Article, the amendment
shall be deemed to have been accepted on the earlier of the
following two dates:

(a) the date by which all the Contracting Parties which sent
such communications have notified the Secretary-General
of the Council of their acceptance of the recommended
amendment, provided that, if all the acceptances were noti-
fied before the expiry of the period of six months referred
to in paragraph 3 of this Article, that date shall be taken to
be the date of expiry of the said six-month period;

7.
Any amendment to the General Annex or the specific
annexes deemed to be accepted shall enter into force either six
months after the date on which it was deemed to be accepted
or, if a different period is specified in the recommended amend-
ment, on the expiry of that period after the date on which the
amendment was deemed to be accepted.

8.
The Secretary-General of the Council shall, as soon as
possible, notify the Contracting Parties to this Convention of
any objection to the recommended amendment made in accor-
dance with paragraph 3(a), and of any communication received
in accordance with paragraph 3(b), of this Article. The Secre-
tary-General of
the Council shall subsequently inform the
Contracting Parties whether the Contracting Party or Parties
which have sent such a communication raise an objection to
the recommended amendment or accept it.

Article 16

1.
Notwithstanding the amendment procedure laid down in
Article 15 of this Convention, the Management Committee in
accordance with Article 6 may decide to amend any recom-
mended practice or to incorporate new recommended practices
to any specific annex or chapter therein. Each Contracting Party
shall be invited by the Secretary-General of the Council to
participate in the deliberations of the Management Committee.
The text of any such amendment or new recommended prac-
tice so decided upon shall be communicated by the Secretary-
General of the Council to the Contracting Parties and those
Members of the Council that are not Contracting Parties to this
Convention.

2.
Any amendment or incorporation of new recommended
practices decided upon under paragraph 1 of this Article shall
enter into force six months after their communication by the
Secretary-General of the Council. Each Contracting Party bound
by a specific annex or chapter therein forming the subject of
such amendments or incorporation of new recommended prac-
tices shall be deemed to have accepted those amendments or
new recommended practices unless it enters a reservation under
the procedure of Article 12 of this Convention.

Duration of accession

Article 17

1.
This Convention is of unlimited duration but any
Contracting Party may denounce it at any time after the date of
its entry into force under Article 18 thereof.

The denunciation shall be notified by an instrument in

2.
writing, deposited with the depositary.

The denunciation shall take effect six months after the

3.
receipt of the instrument of denunciation by the depositary.

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The provisions of paragraphs 2 and 3 of this Article shall
4.
also apply in respect of the specific annexes or chapters therein,
for which any Contracting Party may withdraw its acceptance
at any time after the date of the entry into force.

(c) receive any signature with or without reservation of ratifi-
cation, ratification or accession to this Convention and
receive and keep custody of any instruments, notifications
and communications relating to it;

Any Contracting Party which withdraws its acceptance of
5.
the General Annex shall be deemed to have denounced the
Convention. In this case, the provisions of paragraphs 2 and 3
also apply.

(d) examine whether the signature or any instrument, notifica-
tion or communication relating to this Convention is in
due and proper form and, if need be, bring the matter to
the attention of the Contracting Party in question;

CHAPTER V

FINAL PROVISIONS

Entry into force of the Convention

Article 18

1.
This Convention shall enter into force three months after
five of the entities referred to in paragraphs 1 and 5 of Article
8 thereof have signed the Convention without reservation of
ratification or have deposited their instruments of ratification
or accession.

This Convention shall enter into force for any Contracting
2.
Party three months after it has become a Contracting Party in
accordance with the provisions of Article 8.

3.
Any specific annex or chapter therein to this Convention
shall enter into force three months after five Contracting Parties
have accepted that specific annex or that chapter.

4.
After any specific annex or chapter therein has entered
into force in accordance with paragraph 3 of this Article, that
specific annex or chapter therein shall enter into force for any
Contracting Party three months after it has notified its accep-
tance. No specific annex or chapter therein shall, however,
enter into force for a Contracting Party before this Convention
has entered into force for that Contracting Party.

Depositary of the Convention

Article 19

1.
This Convention, all signatures with or without reserva-
tion of ratification and all instruments of ratification or acces-
sion shall be deposited with the Secretary-General of
the
Council.

2.

The depositary shall:

(a) receive and keep custody of

the original

texts of

this

Convention;

(b) prepare certified copies of the original texts of this Conven-
tion and transmit them to the Contracting Parties and those
Members of the Council that are not Contracting Parties
and the Secretary-General of the United Nations;

(e) notify the Contracting Parties,

those Members of

the
Council that are not Contracting Parties, and the Secretary-
General of the United Nations of:
— signatures, ratifications, accessions and acceptances of
annexes and chapters under Article 8 of this Conven-
tion,

— new chapters of the General Annex and new specific
annexes or chapters therein which the Management
Committee decides to recommend to incorporate in this
Convention,

— the date of entry into force of this Convention, of the
General Annex and of each specific annex or chapter
therein in accordance with Article 18 of this Conven-
tion,

— notifications received in accordance with Articles 8, 10,

11, 12 and 13 of this Convention,

— withdrawals of acceptances of annexes/chapters by

Contracting Parties,

— denunciations under Article 17 of this Convention, and
— any amendment accepted in accordance with Article 15
of this Convention and the date of its entry into force.

3.
In the event of any difference appearing between a
Contracting Party and the depositary as to the performance of
the latter's functions, the depositary or that Contracting Party
shall bring the question to the attention of
the other
Contracting Parties and the signatories or, as the case may be,
the Management Committee or the Council.

Registration and authentic texts

Article 20

In accordance with Article 102 of the Charter of the United
Nations, this Convention shall be registered with the Secretariat
of the United Nations at the request of the Secretary-General of
the Council.

In witness whereof
thereto, have signed this Convention.

the undersigned, being duly authorised

Done at Kyoto, this eighteenth day of May nineteen hundred
and seventy-three in the English and French languages, both
texts being equally authentic, in a single original which shall be
deposited with the Secretary-General of the Council who shall
transmit certified copies to all the entities referred to in para-
graph 1 of Article 8 of this Convention.

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Appendix II to Annex I

GENERAL ANNEX

TABLE OF CONTENTS

Chapter 1:

General principles

Chapter 2:

Definitions

Chapter 3:

Clearance and other customs formalities

Chapter 4:

Duties and taxes

A. Assessment, collection and payment of duties and taxes

B. Deferred payment of duties and taxes

C. Repayment of duties and taxes

Chapter 5:

Security

Chapter 6:

Customs control

Chapter 7:

Application of information technology

Chapter 8:

Relationship between the customs and third parties

Chapter 9:

Information, decisions and rulings supplied by the customs

A.

Information of general application

B.

Information of a specific nature

C. Decisions and rulings

Chapter 10:

Appeals in customs matters

A. Right of appeal

B. Form and grounds of appeal

C. Consideration of appeal

Page

32

32

33

38

38

39

40

40

41

42

42

43

43

43

43

43

43

44

44

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CHAPTER 1

GENERAL PRINCIPLES

1.1. Sta nda r d

The definitions, standards and transitional standards in this Annex shall apply to customs procedures and practices speci-
fied in this Annex and, insofar as applicable, to procedures and practices in the specific annexes.

1.2. Sta nda r d

The conditions to be fulfilled and customs formalities to be accomplished for procedures and practices in this Annex
and in the specific annexes shall be specified in national legislation and shall be as simple as possible.

1.3. Sta nda r d

The customs shall institute and maintain formal consultative relationships with the trade to increase cooperation and
facilitate participation in establishing the most effective methods of working commensurate with national provisions and
international agreements.

CHAPTER 2

DEFINITIONS

For the purposes of the annexes to this Convention:

E1./F23.

‘Appeal’ means the act by which a person who is directly affected by a decision or omission of the
customs and who considers himself to be aggrieved thereby seeks redress before a competent authority;

E2./F19.

‘Assessment of duties and taxes’ means the determination of the amount of duties and taxes payable;

E3./F4.

E4./F15.

E5./F9.

E6./F10.

‘Audit-based control’ means measures by which the customs satisfy themselves as to the accuracy and
authenticity of declarations through the examination of the relevant books, records, business systems
and commercial data held by persons concerned;

‘Checking the goods declaration’ means the action taken by the customs to satisfy themselves that the
goods declaration is correctly made out and that the supporting documents required fulfil the prescribed
conditions;

‘Clearance’ means the accomplishment of the customs formalities necessary to allow goods to enter
home use, to be exported or to be placed under another customs procedure;

‘Customs’ means the Government Service which is responsible for the administration of customs law
and the collection of duties and taxes and which also has the responsibility for the application of other
laws and regulations relating to the importation, exportation, movement or storage of goods;

E7./F3.

‘Customs control’ means measures applied by the customs to ensure compliance with customs law;

E8./F11.

E9./F16.

E10./F18.

‘Customs duties’ means the duties laid down in the customs tariff to which goods are liable on entering
or leaving the customs territory;

‘Customs formalities’ means all the operations which must be carried out by the persons concerned and
by the customs in order to comply with the customs law;

‘Customs law’ means the statutory and regulatory provisions relating to the. importation, exportation,
movement or storage of goods, the administration and enforcement of which are specifically charged to
the customs, and any regulations made by the customs under their statutory powers;

E11./F2.

‘Customs office’ means the customs administrative unit competent for the performance of customs
formalities, and the premises or other areas approved for that purpose by the competent authorities;

E12./F25.

‘Customs territory’ means the territory in which the customs law of a Contracting Party applies;

E13./F6.

‘Decision’ means the individual act by which the customs decide upon a matter relating to customs law;

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E14./F7.

‘Declarant’ means any person who makes a goods declaration or in whose name such a declaration is
made;

E15./F5.

‘Due date’ means the date when payment of duties and taxes is due;

E16./F12.

‘Duties and taxes’ means import duties and taxes and/or export duties and taxes;

E17./F27.

E18./F13.

E19./F8.

E20./F14.

‘Examination of goods’ means the physical inspection of goods by the customs to satisfy themselves that
the nature, origin, condition, quantity and value of the goods are in accordance with the particulars
furnished in the goods declaration;

‘Export duties and taxes’ means customs duties and all other duties, taxes or charges which are collected
on or in connection with the exportation of goods, but not including any charges which are limited in
amount to the approximate cost of services rendered or collected by the customs on behalf of another
national authority;

‘Goods declaration’ means a statement made in the manner prescribed by the customs, by which the
persons concerned indicate the customs procedure to be applied to the goods and furnish the particulars
which the customs require for its application;

‘Import duties and taxes’ means customs duties and all other duties, taxes or charges which are collected
on or in connection with the importation of goods, but not including any charges which are limited in
amount to the approximate cost of services rendered or collected by the customs on behalf of another
national authority;

E21./F1.

‘Mutual administrative assistance’ means actions of a customs administration on behalf of or in colla-
boration with another customs administration for the proper application of customs law and for the
prevention, investigation and repression of customs offences;

E22./F21.

‘Omission’ means the failure to act or give a decision required of the customs by customs law within a
reasonable time on a matter duly submitted to them;

E23./F22.

‘Person’ means both natural and legal persons, unless the context otherwise requires;

E24./F20.

E25./F24.

E26./F17.

‘Release of goods’ means the action by the customs to permit goods undergoing clearance to be placed
at the disposal of the persons concerned;

‘Repayment’ means the refund, in whole or in part, of duties and taxes paid on goods and the remission,
in whole or in part, of duties and taxes where payment has not been made;

‘Security’ means that which ensures to the satisfaction of the customs that an obligation to the customs
will be fulfilled. Security is described as ‘general’ when it ensures that the obligations arising from several
operations will be fulfilled;

E27./F26.

‘Third party’ means any person who deals directly with the customs, for and on behalf of another
person, relating to the importation, exportation, movement or storage of goods.

CHAPTER 3

CLEARANCE AND OTHER CUSTOMS FORMALITIES

Competent customs offices

3.1. Sta nda r d

The customs shall designate the customs offices at which goods may be produced or cleared. In determining the compe-
tence and location of these offices and their hours of business, the factors to be taken into account shall include in parti-
cular the requirements of the trade.

3.2. Sta nda r d

At the request of the person concerned and for reasons deemed valid by the customs, the latter shall, subject to the avail-
ability of resources, perform the functions laid down for the purposes of a customs procedure and practice outside the
designated hours of business or away from customs offices. Any expenses chargeable by the customs shall be limited to
the approximate cost of the services rendered.

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3.3. Sta nda r d

Where customs offices are located at a common border crossing, the customs administrations concerned shall correlate
the business hours and the competence of those offices.

3.4. Tr a n si ti ona l sta n da rd

At common border crossings, the customs administrations concerned shall, whenever possible, operate joint controls.

3.5. Tr a n si ti ona l sta n da rd

Where the customs intend to establish a new customs office or to convert an existing one at a common border crossing,
they shall, wherever possible, cooperate with the neighbouring customs to establish a juxtaposed customs office to facili-
tate joint controls.

The declarant

(a) Persons entitled to act as declarant

3.6. Sta nda r d

National legislation shall specify the conditions under which a person is entitled to act as declarant.

3.7. Sta nda r d

Any person having the right to dispose of the goods shall be entitled to act as declarant.

(b) Responsibilities of the declarant

3.8. Sta nda r d

The declarant shall be held responsible to the customs for the accuracy of the particulars given in the goods declaration
and the payment of the duties and taxes.

(c) Rights of the declarant

3.9. Sta nda r d

Before lodging the goods declaration the declarant shall be allowed, under such conditions as may be laid down by the
customs:

(a) to inspect the goods; and

(b) to draw samples.

3.10. Sta n da r d

The customs shall not require a separate goods declaration in respect of samples allowed to be drawn under customs
supervision, provided that such samples are included in the goods declaration concerning the relevant consignment.

The goods declaration

(a) Goods declaration format and contents

3.11. Sta n da r d

The contents of the goods declaration shall be prescribed by the customs. The paper format of the goods declaration
shall conform to the UN-layout key.

For automated customs clearance processes, the format of the electronically lodged goods declaration shall be based on
international standards for electronic information exchange as prescribed in the Customs Cooperation Council Recom-
mendations on information technology.

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3.12. Sta n da r d

The customs shall limit the data required in the goods declaration to only such particulars as are deemed necessary for
the assessment and collection of duties and taxes, the compilation of statistics and the application of customs law.

3.13. Sta n da r d

Where, for reasons deemed valid by the customs, the declarant does not have all the information required to make the
goods declaration, a provisional or incomplete goods declaration shall be allowed to be lodged, provided that it contains
the particulars deemed necessary by the customs and that the declarant undertakes to complete it within a specified
period.

3.14. Sta n da r d

If the customs register a provisional or incomplete goods declaration, the tariff treatment to be accorded to the goods
shall not be different from that which would have been accorded had a complete and correct goods declaration been
lodged in the first instance.

The release of the goods shall not be delayed provided that any security required has been furnished to ensure collection
of any applicable duties and taxes.

3.15. Sta n da r d

The customs shall require the lodgment of the original goods declaration and only the minimum number of copies
necessary.

(b) Documents supporting the goods declaration

3.16. Sta n da r d

In support of the goods declaration the customs shall require only those documents necessary to permit control of the
operation and to ensure that all requirements relating to the application of customs law have been complied with.

3.17. Sta n da r d

Where certain supporting documents cannot be lodged with the goods declaration for reasons deemed valid by the
customs, they shall allow production of those documents within a specified period.

3.18. Tr a n si ti ona l sta n da r d

The customs shall permit the lodgment of supporting documents by electronic means.

3.19. Sta n da r d

The customs shall not require a translation of the particulars of supporting documents except when necessary to permit
processing of the goods declaration.

Lodgment, registration and checking of the goods declaration

3.20. Sta n da r d

The customs shall permit the lodging of the goods declaration at any designated customs office.

3.21. Tr a n si ti ona l sta n da r d

The customs shall permit the lodging of the goods declaration by electronic means.

3.22. Sta n da r d

The goods declaration shall be lodged during the hours designated by the customs.

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3.23. Sta n da r d

Where national legislation lays down a time limit for lodging the goods declaration, the time allowed shall be sufficient
to enable the declarant to complete the goods declaration and to obtain the supporting documents required.

3.24. Sta n da r d

At the request of the declarant and for reasons deemed valid by the customs, the latter shall extend the time limit
prescribed for lodging the goods declaration.

3.25. Sta n da r d

National legislation shall make provision for the lodging and registering or checking of the goods declaration and
supporting documents prior to the arrival of the goods.

3.26. Sta n da r d

When the customs cannot register the goods declaration, they shall state the reasons to the declarant.

3.27. Sta n da r d

The customs shall permit the declarant to amend the goods declaration that has already been lodged, provided that when
the request is received they have not begun to check the goods declaration or to examine the goods.

3.28. Tr a n si ti ona l sta n da r d

The customs shall permit the declarant to amend the goods declaration if a request is received after checking of the
goods declaration has commenced, if the reasons given by the declarant are deemed valid by the customs.

3.29. Tr a n si ti ona l sta n da r d

The declarant shall be allowed to withdraw the goods declaration and apply for another customs procedure, provided
that the request to do so is made to the customs before the goods have been released and that the reasons are deemed
valid by the customs.

3.30. Sta n da r d

Checking the goods declaration shall be effected at the same time or as soon as possible after the goods declaration is
registered.

3.31. Sta n da r d

For the purpose of checking the goods declaration, the customs shall take only such action as they deem essential to
ensure compliance with customs law.

Special procedures for authorised persons

3.32. Tr a n si ti ona l sta n da r d

For authorised persons who meet criteria specified by the customs, including having an appropriate record of compli-
ance with customs requirements and a satisfactory system for managing their commercial records, the customs shall
provide for:

— release of the goods on the provision of the minimum information necessary to identify the goods and permit the

subsequent completion of the final goods declaration,

— clearance of the goods at the declarant's premises or another place authorised by the customs,

— and, in addition, to the extent possible, other special procedures such as:

— allowing a single goods declaration for all imports or exports in a given period where goods are imported or

exported frequently by the same person,

— use of the authorised persons' commercial records to self-assess their duty and tax liability and, where appropriate,

to ensure compliance with other customs requirements,

— allowing the lodgment of the goods declaration by means of an entry in the records of the authorised person to be

supported subsequently by a supplementary goods declaration.

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Examination of the goods

(a) Time required for examination of goods

3.33. Sta n da r d

When the customs decide that goods declared shall be examined, this examination shall take place as soon as possible
after the goods declaration has been registered.

3.34. Sta n da r d

When scheduling examinations, priority shall be given to the examination of live animals and perishable goods and to
other goods which the customs accept are urgently required.

3.35. Tr a n si ti ona l sta n da r d

If the goods must be inspected by other competent authorities and the customs also schedules an examination, the
customs shall ensure that the inspections are coordinated and, if possible, carried out at the same time.

(b) Presence of the declarant at examination of goods

3.36. Sta n da r d

The customs shall consider requests by the declarant to be present or to be represented at the examination of the goods.
Such requests shall be granted unless exceptional circumstances exist.

3.37. Sta n da r d

If the customs deem it useful, they shall require the declarant to be present or to be represented at the examination of
the goods to give them any assistance necessary to facilitate the examination.

(c) Sampling by the customs

3.38. Sta n da r d

Samples shall be taken only where deemed necessary by the customs to establish the tariff description and/or value of
goods declared or to ensure the application of other provisions of national legislation. Samples drawn shall be as small
as possible.

Errors

3.39. Sta n da r d

The customs shall not impose substantial penalties for errors where they are satisfied that such errors are inadvertent
and that there has been no fraudulent intent or gross negligence. Where they consider it necessary to discourage a repe-
tition of such errors, a penalty may be imposed but shall be no greater than is necessary for this purpose.

Release of goods

3.40. Sta n da r d

Goods declared shall be released as soon as the customs have examined them or decided not to examine them, provided
that:

— no offence has been found,

— the import or export license or any other documents required have been acquired,

— all permits relating to the procedure concerned have been acquired, and

— any duties and taxes have been paid or that appropriate action has been taken to ensure their collection.

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3.41. Sta n da r d

If the customs are satisfied that the declarant will subsequently accomplish all the formalities in respect of clearance they
shall release the goods, provided that the declarant produces a commercial or official document giving the main particu-
lars of the consignment concerned and acceptable to the customs, and that security, where required, has been furnished
to ensure collection of any applicable duties and taxes.

3.42. Sta n da r d

When the customs decide that they require laboratory analysis of samples, detailed technical documents or expert advice,
they shall release the goods before the results of such examination are known, provided that any security required has
been furnished and provided they are satisfied that the goods are not subject to prohibitions or restrictions.

3.43. Sta n da r d

When an offence has been detected, the customs shall not wait for the completion of administrative or legal action
before they release the goods, provided that the goods are not liable to confiscation or forfeiture or to be needed as
evidence at some later stage and that the declarant pays the duties and taxes and furnishes security to ensure collection
of any additional duties and taxes and of any penalties which may be imposed.

Abandonment or destruction of goods

3.44. Sta n da r d

When goods have not yet been released for home use or when they have been placed under another customs procedure,
and provided that no offence has been detected, the person concerned shall not be required to pay the duties and taxes
or shall be entitled to repayment thereof:

— when, at his request, such goods are abandoned to the revenue or destroyed or rendered commercially valueless
under customs control, as the customs may decide. Any costs involved shall be borne by the person concerned,

— when such goods are destroyed or irrecoverably lost by accident or force majeure, provided that such destruction or

loss is duly established to the satisfaction of the customs,

— on shortages due to the nature of the goods when such shortages are duly established to the satisfaction of the

customs.

Any waste or scrap remaining after destruction shall be liable, if taken into home use or exported, to the duties and taxes
that would be applicable to such waste or scrap imported or exported in that state.

3.45. Tr a n si ti ona l sta n da r d

When the customs sell goods which have not been declared within the time allowed or could not be released although
no offence has been discovered, the proceeds of the sale, after deduction of any duties and taxes and all other charges
and expenses incurred, shall be made over to those persons entitled to receive them or, when this is not possible, held at
their disposal for a specified period.

CHAPTER 4

DUTIES AND TAXES

A. Assessment, collection and payment of duties and taxes

4.1. Sta nda r d

National legislation shall define the circumstances when liability to duties and taxes is incurred.

4.2. Sta nda r d

The time period within which the applicable duties and taxes are assessed shall be stipulated in national legislation. The
assessment shall follow as soon as possible after the goods declaration is lodged or the liability is otherwise incurred.

4.3. Sta nda r d

The factors on which the assessment of duties and taxes is based and the conditions under which they are determined
shall be specified in national legislation.

4.4. Sta nda r d

The rates of duties and taxes shall be set out in official publications.

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4.5. Sta nda r d

National legislation shall specify the point in time to be taken into consideration for the purpose of determining the rates
of duties and taxes.

4.6. Sta nda r d

National legislation shall specify the methods that may be used to pay the duties and taxes.

4.7. Sta nda r d

National legislation shall specify the person(s) responsible for the payment of duties and taxes.

4.8. Sta nda r d

National legislation shall determine the due date and the place where payment is to be made.

4.9. Sta nda r d

When national legislation specifies that the due date may be after the release of the goods, that date shall be at least 10
days after the release. No interest shall be charged for the period between the date of release and the due date.

4.10. Sta n da r d

National legislation shall specify the period within which the customs may take legal action to collect duties and taxes
not paid by the due date.

4.11. Sta n da r d

National legislation shall determine the rate of interest chargeable on amounts of duties and taxes that have not been
paid by the due date and the conditions of application of such interest.

4.12. Sta n da r d

When the duties and taxes have been paid, a receipt constituting proof of payment shall be issued to the payer, unless
there is other evidence constituting proof of payment.

4.13. Tr a n si ti ona l sta n da r d

National legislation shall specify a minimum value and/or a minimum amount of duties and taxes below which no duties
and taxes will be collected.

4.14. Sta n da r d

If the customs find that errors in the goods declaration or in the assessment of the duties and taxes will cause or have
caused the collection or recovery of an amount of duties and taxes less than that legally chargeable, they shall correct
the errors and collect the amount underpaid. However, if the amount involved is less than the minimum amount speci-
fied in national legislation, the customs shall not collect or recover that amount.

B. Deferred payment of duties and taxes

4.15. Sta n da r d

Where national legislation provides for the deferred payment of duties and taxes, it shall specify the conditions under
which such facility is allowed.

4.16. Sta n da r d

Deferred payment shall be allowed without interest charges to the extent possible.

4.17. Sta n da r d

The period for deferred payment of duties and taxes shall be at least 14 days.

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C. Repayment of duties and taxes

4.18. Sta n da r d

Repayment shall be granted where it is established that duties and taxes have been overcharged as a result of an error in
their assessment.

4.19. Sta n da r d

Repayment shall be granted in respect of imported or exported goods which are found to have been defective or other-
wise not in accordance with the agreed specifications at the time of importation or exportation and are returned either
to the supplier or to another person designated by the supplier, subject to the following conditions:

— the goods have not been worked, repaired or used in the country of importation, and are re-exported within a

reasonable time,

— the goods have not been worked, repaired or used in the country to which they were exported, and are re-imported

within a reasonable time.

Use of the goods shall, however, not hinder the repayment if such use was indispensable to discover the defects or other
circumstances which caused the re-exportation or re-importation of the goods.

As an alternative to re-exportation or re-importation, the goods may be abandoned to the revenue or destroyed or
rendered commercially valueless under customs control, as the customs may decide. Such abandonment or destruction
shall not entail any cost to the revenue.

4.20. Tr a n si ti ona l sta n da r d

Where permission is given by the customs for goods originally declared for a customs procedure with payment of duties
and taxes to be placed under another customs procedure, repayment shall be made of any duties and taxes charged in
excess of the amount due under the new procedure.

4.21. Sta n da r d

Decisions on claims for repayment shall be reached, and notified in writing to the persons concerned, without undue
delay, and repayment of amounts overcharged shall be made as soon as possible after the verification of claims.

4.22. Sta n da r d

Where it is established by the customs that the overcharge is a result of an error on the part of the customs in assessing
the duties and taxes, repayment shall be made as a matter of priority.

4.23. Sta n da r d

Where time limits are fixed beyond which claims for repayment will not be accepted, such limits shall be of sufficient
duration to take account of the differing circumstances pertaining to each type of case in which repayment may be
granted.

4.24. Sta n da r d

Repayment shall not be granted if the amount involved is less than the minimum amount specified in national
legislation.

CHAPTER 5

SECURITY

5.1. Sta nda r d

National legislation shall enumerate the cases in which security is required and shall specify the forms in which security
is to be provided.

5.2. Sta nda r d

The customs shall determine the amount of security.

5.3. Sta nda r d

Any person required to provide security shall be allowed to choose any form of security provided that it is acceptable to
the customs.

5.4. Sta nda r d

Where national legislation provides, the customs shall not require security when they are satisfied that an obligation to
the customs will be fulfilled.

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5.5. Sta nda r d

When security is required to ensure that the obligations arising from a customs procedure will be fulfilled, the customs
shall accept a general security, in particular from declarants who regularly declare goods at different offices in the
customs territory.

5.6. Sta nda r d

Where security is required, the amount of security to be provided shall be as low as possible and, in respect of the
payment of duties and taxes, shall not exceed the amount potentially chargeable.

5.7. Sta nda r d

Where security has been furnished, it shall be discharged as soon as possible after the customs are satisfied that the obli-
gations under which the security was required have been duly fulfilled.

CHAPTER 6

CUSTOMS CONTROL

6.1. Sta nda r d

All goods, including means of transport, which enter or leave the customs territory, regardless of whether they are liable
to duties and taxes, shall be subject to customs control.

6.2. Sta nda r d

Customs control shall be limited to that necessary to ensure compliance with the customs law.

6.3. Sta nda r d

In the application of customs control, the customs shall use risk management.

6.4. Sta nda r d

The customs shall use risk analysis to determine which persons and which goods, including means of transport, should
be examined and the extent of the examination.

6.5. Sta nda r d

The customs shall adopt a compliance measurement strategy to support risk management.

6.6. Sta nda r d

Customs control systems shall include audit-based controls.

6.7. Sta nda r d

The customs shall seek to cooperate with other customs administrations and seek to conclude mutual administrative
assistance agreements to enhance customs control.

6.8. Sta nda r d

The customs shall seek to cooperate with the trade and seek to conclude memoranda of understanding to enhance
customs control.

6.9. Tr a n si ti ona l sta n da rd

The customs shall use information technology and electronic commerce to the greatest possible extent to enhance
customs control.

6.10. Sta n da r d

The customs shall evaluate traders' commercial systems where those systems have an impact on customs operations to
ensure compliance with customs requirements.

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CHAPTER 7

APPLICATION OF INFORMATION TECHNOLOGY

7.1. Sta nda r d

The customs shall apply information technology to support customs operations, where it is cost-effective and efficient
for the customs and for the trade. The customs shall specify the conditions for its application.

7.2. Sta nda r d

When introducing computer applications, the customs shall use relevant internationally accepted standards.

7.3. Sta nda r d

The introduction of information technology shall be carried out in consultation with all relevant parties directly affected,
to the greatest extent possible.

7.4. Sta nda r d

New or revised national legislation shall provide for:

— electronic commerce methods as an alternative to paper-based documentary requirements,

— electronic as well as paper-based authentication methods,

— the right of the customs to retain information for their own use and, as appropriate, to exchange such information
with other customs administrations and all other legally approved parties by means of electronic commerce
techniques.

CHAPTER 8

RELATIONSHIP BETWEEN THE CUSTOMS AND THIRD PARTIES

8.1. Sta nda r d

Persons concerned shall have the choice of transacting business with the customs either directly or by designating a third
party to act on their behalf.

8.2. Sta nda r d

National legislation shall set out the conditions under which a person may act for and on behalf of another person in
dealing with the customs and shall lay down the liability of third parties to the customs for duties and taxes and for any
irregularities.

8.3. Sta nda r d

The customs transactions where the person concerned elects to do business on his own account shall not be treated less
favourably or be subject to more stringent requirements than those customs transactions which are handled for the
person concerned by a third party.

8.4. Sta nda r d

A person designated as a third party shall have the same rights as the person who designated him in those matters
related to transacting business with the customs.

8.5. Sta nda r d

The customs shall provide for third parties to participate in their formal consultations with the trade.

8.6. Sta nda r d

The customs shall specify the circumstances under which they are not prepared to transact business with a third party.

8.7. Sta nda r d

The customs shall give written notification to the third party of a decision not to transact business.

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INFORMATION, DECISIONS AND RULINGS SUPPLIED BY THE CUSTOMS

CHAPTER 9

A. Information of general application

9.1. Sta nda r d

The customs shall ensure that all relevant information of general application pertaining to customs law is readily avail-
able to any interested person.

9.2. Sta nda r d

When information that has been made available must be amended due to changes in customs law, administrative
arrangements or requirements, the customs shall make the revised information readily available sufficiently in advance
of the entry into force of the changes to enable interested persons to take account of them, unless advance notice is
precluded.

9.3. Tr a n si ti ona l sta n da rd

The customs shall use information technology to enhance the provision of information.

B. Information of a specific nature

9.4. Sta nda r d

At the request of the interested person, the customs shall provide, as quickly and as accurately as possible, information
relating to the specific matters raised by the interested person and pertaining to customs law.

9.5. Sta nda r d

The customs shall supply not only the information specifically requested but also any other pertinent information which
they consider the interested person should be made aware of.

9.6. Sta nda r d

When the customs supply information, they shall ensure that they do not divulge details of a private or confidential
nature affecting the customs or third parties unless such disclosure is required or authorised by national legislation.

9.7. Sta nda r d

When the customs cannot supply information free of charge, any charge shall be limited to the approximate cost of the
services rendered.

C. Decisions and rulings

9.8. Sta nda r d

At the written request of the person concerned, the customs shall notify their decision in writing within a period speci-
fied in national legislation. Where the decision is adverse to the person concerned, the reasons shall be given and the
right of appeal advised.

9.9. Sta nda r d

The customs shall issue binding rulings at the request of the interested person, provided that the customs have all the
information they deem necessary.

CHAPTER 10

APPEALS IN CUSTOMS MATTERS

A. Right of appeal

10.1. Sta n da r d

National legislation shall provide for a right of appeal in customs matters.

10.2. Sta n da r d

Any person who is directly affected by a decision or omission of the customs shall have a right of appeal.

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10.3. Sta n da r d

The person directly affected by a decision or omission of the customs shall be given, after having made a request to the
customs, the reasons for such decision or omission within a period specified in national legislation. This may or may
not result in an appeal.

10.4. Sta n da r d

National legislation shall provide for the right of an initial appeal to the customs.

10.5. Sta n da r d

Where an appeal to the customs is dismissed, the appellant shall have the right of a further appeal to an authority inde-
pendent of the customs administration.

10.6. Sta n da r d

In the final instance, the appellant shall have the right of appeal to a judicial authority.

B. Form and grounds of appeal

10.7. Sta n da r d

An appeal shall be lodged in writing and shall state the grounds on which it is being made.

10.8. Sta n da r d

A time limit shall be fixed for the lodgment of an appeal against a decision of the customs and it shall be such as to
allow the appellant sufficient time to study the contested decision referred to in Chapter 10.2. and to prepare an appeal.

10.9. Sta n da r d

Where an appeal is to the customs they shall not, as a matter of course, require that any supporting evidence be lodged
together with the appeal but shall, in appropriate circumstances, allow a reasonable time for the lodgment of such
evidence.

C. CONSIDERATION OF APPEAL

10.10. Sta n da rd

The customs shall give its ruling upon an appeal and written notice thereof to the appellant as soon as possible.

10.11. Sta n da rd

Where an appeal to the customs is dismissed, the customs shall set out the reasons therefor in writing and shall advise
the appellant of his right to lodge any further appeal with an administrative or independent authority and of any time
limit for the lodgement of such appeal.

10.12. Sta n da rd

Where an appeal is allowed, the customs shall put their decision or the ruling of the independent or judicial authority
into effect as soon as possible, except in cases where the customs appeal against the ruling.

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ANNEX II

INFORMATION

For the purpose of Article 8(5)(a) of the Convention as amended by the Protocol of Amendment, the European Commu-
nity hereby informs the depository of the Convention that the European Community is competent for all matters
governed by the body of the Convention and its General Annex, except for those matters not falling within its exclusive
explicit or implicit competence as laid down in the Treaty establishing the European Community as amended and within
secondary Community legislation.

ANNEX III

NOTIFICATION

For the purpose of Article 11 of the revised Kyoto Convention, the European Community hereby notifies the Secretary-
General of the Customs Cooperation Council, as depository of the said Convention, that the customs territory of the
Community is to be taken as a single territory and shall comprise:

— the territory of the Kingdom of Belgium,

— the territory of the Kingdom of Denmark, except the Faroe Islands and Greenland,

— the territory of the Federal Republic of Germany, except the Island of Heligoland and the territory of Buesingen

(Treaty of 23 November 1964 between the Federal Republic of Germany and the Swiss Confederation),

— the territory of the Kingdom of Spain, except Ceuta and Melilla,

— the territory of the Hellenic Republic,

— the territory of the French Republic, except the overseas territories and Saint Pierre and Miquelon and Mayotte,

— the territory of Ireland,

— the territory of the Italian Republic, except the municipalities of Livigno and Campione d'Italia and the national
waters of Lake Lugano which are between the bank and the political frontier of the area between Ponte Tresa and
Porto Ceresio,

— the territory of the Grand Duchy of Luxembourg,

— the territory of the Kingdom of the Netherlands in Europe,

— the territory of the Republic of Austria,

— the territory of the Portuguese Republic,

— the territory of the Republic of Finland,

— the territory of the Kingdom of Sweden,

— the territory of the United Kingdom of Great Britain and Northern Ireland and of the Channel Islands and the Isle of

Man.

Although situated outside the territory of France, the territory of the Principality of Monaco as defined in the Customs
Convention signed in Paris on 18 May 1963 (Journal officiel de la République française of 27 September 1963, p. 8679)
shall, by virtue of that Convention, be considered to be a part of the customs territory of the Community.

The customs territory of the Community shall include the territorial waters, the inland maritime waters and the airspace
of the Member States and the territories referred to above, except for the territorial waters, the inland maritime waters
and the airspace of those territories which are not part of the customs territory of the Community as indicated above.