Implementing the Community Lisbon programme - Proposal for a Regulation of the European Parliament and of the Council laying down the Community Customs Code (Modernized Customs Code) {SEC(2005)1543}
Date: 2005-11-30
Institutions: European Commission
Subjects: customs document, customs inspection, customs regulations, electronic document, exchange of information, systems interconnection

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.11.2005 
COM(2005) 608 final 

2005/0246 (COD) 

Implementing the Community Lisbon programme 
Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down the Community Customs Code 

(Modernized Customs Code) 

(presented by the Commission) 

{SEC(2005)1543} 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

110 

•  Grounds for and objectives of the proposal 

The present Community Customs Code, Council Regulation (EEC) No. 2913/92, is out 
of date. It has not kept pace with either the radical changes to the environment in which 
international  trade  is  conducted,  particularly  the  rapid  and  irreversible  growth  of  the 
use  of  information  technology  and  the  exchange  of  electronic  data,  or  with  the 
changing  focus  of  customs  work.  This  compromises  efficient  customs  clearance  and 
risk-based controls within the internal market. One should also take into consideration 
the  Community's  trade  facilitation  agenda  in  the  context  of  the  Doha  Development 
Agenda,  as  well  as  the  requirements  stemming  from  the  need  to  address  emerging 
security  and  safety  threats  by  strengthening  controls  at  the  external  border  of  the 
Community.  The  modernizing  of  the  Customs  Code,  streamlining  of  customs 
procedures  and  processes  and  the  adaptation  of  the  rules  towards  common  standards 
for IT systems will 

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implement the e-Government initiative in the area of customs; 

fulfil  the  commitment  to  the  'better  regulation'  initiative  in  this  area,  by 
providing  less  complex  and  better  structured  rules  and  regrouping  several 
Regulations; 

enhance  the  competitiveness  of  companies  doing  business  in  and  with  the 
Community, thus creating economic growth; 

increase  security  and  safety  at  the  external  border,  once  common  standards 
(including those for risk-analysis) are introduced and managed via a common 
IT framework; 

reduce the risk of fraud;  

contribute to better coherence with other Community policies, such as indirect 
taxation,  agricultural,  commercial,  environmental,  health  and  consumer 
protection policy; and 

ensure an effective decision-making process for the adoption of implementing 
provisions, guidelines and explanatory notes and provide for the Commission 
to request a national administration to withdraw a decision. 

Such  extensive  changes  cannot  be  achieved  by  continued  amendment  of  the  present 
Customs Code, but only by a complete overhaul, i.e. its replacement by a modernized 
Community Customs Code.  

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•  General context 

The  present  proposal  must  be  seen  in  the  context  of  the  renewed  Lisbon  Strategy, 
whose objectives are to make Europe a more attractive place to invest and work, where 
growth is led by knowledge and innovation and where policies allow businesses in the 

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EU  to  create  more  and  better  jobs.  The  present  proposal  was  also  developed  to  fulfil 
the objectives of the e-Government initiative, by allowing business, through electronic 
Customs,  to  benefit  fully  from  modern  technology  and  the  resulting  facilitation  of 
trade.  

The Commission proposals to create a simple and paperless environment for customs 
and trade were welcomed and supported in the Council Resolution of December 2003, 
which endorsed the Commission proposals for the modernization of customs rules and 
procedures  and  to  establish  a  regulatory  framework  in  support  of  reformed  customs 
procedures in a computerised context. 

No general revision has been made of the present Code since it was adopted in 1992, 
only limited changes addressing specific problems. It still bases procedures upon paper 
transactions  and,  although  the  use  of  electronic  customs  clearance  through  national 
computerized  systems  is  now  the  rule  rather  than  the  exception,  there  is  still  no 
obligation  under  Community  law  to  use  such  systems.  Community-wide  IT 
applications  for  customs  clearance  do  not  generally  exist,  yet  the  new  computerized 
transit  system,  NCTS,  has  successfully  demonstrated  the  feasibility  of  such  systems 
and opens new opportunities for similar applications in other customs regimes. 

Furthermore, the role of customs is shifting away from the collection of customs duties, 
which  have  declined  dramatically  over  the  past  20  years,  towards  the  application  of 
non-tariff measures, including, in particular, those related to security and safety, to the 
fight  against  counterfeit  goods,  money  laundering  and  drugs,  and  the  application  of 
sanitary,  health,  environmental  and  consumer  protection  measures,  as  well  as  the 
collection of VAT and excise duties on importation or the exemption from such taxes 
on exportation. 

The  Customs  Code  has  to  be  adapted  to  fit,  but  also  to  govern,  the  electronic 
environment for customs and trade. Moreover, economic operators and administrations 
have all favoured taking this opportunity to carry out a major overhaul of the customs 
rules in order to make them simpler and better structured.  

Not least, radical changes in the Code are needed, in an enlarged Community and an 
electronic  trading  environment,  to  provide  for  the  collection  of  taxes  at  the  most 
appropriate  place,  which  is  at  the  place  where  the  trader  is  established  (centralized 
clearance). At the same time, it is essential to safeguard common standards, including 
those for risk-analysis and customs penalties. The latter can only be achieved through a 
common Community framework, for which the Commission will table a proposal soon. 
It is also necessary to improve coherence with other Community policies, such as those 
related  to  indirect  taxation,  agricultural,  commercial,  environmental,  health  and 
consumer  protection  policy.  This  requires  a  revised  division  of  tasks  between  border 
and inland customs offices.  

Failure  to  make  these  changes  to  the  Code  will  prevent  companies  doing  business  in 
Europe  from  taking  full  advantage  of  more  modern  conditions  for  performing  their 
international  trade  duties,  which  will  affect  their  performance  in  an  increasingly 
competitive environment. Outdated procedures, processes and other customs rules that 
were  developed  for  a  paper-based  environment  will  also  increase  the  risk  of  fraud, 
compromise safety and security at the external border and weaken the role of customs 
as  the  principal  agency  for  border  protection  and  supervision  in  respect  of  the 

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international movement of goods.  

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•  Existing provisions in the area of the proposal 

Council  Regulation  (EEC)  No  2913/92  of  12  October  1993,  establishing  the 
Community Customs Code, and 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.  

The proposal and its implementing provisions will replace these Regulations, together 
with  the  following  Regulations  and  their  implementing  provisions,  which  are 
incorporated in the new Code: 

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Council  Regulation  (EEC)  No  918/83  of  28  March  1983  setting  up  a 
Community system of reliefs from customs duties, 

Council Regulation (EEC) No 3925/91 of 19 December 1991 concerning the 
elimination  of  controls  and  formalities  applicable  to  the  cabin  and  hold 
baggage  of  persons  taking  an  intra-Community  flight  and  the  baggage  of 
persons making an intra-Community sea crossing,  

Council  Regulation  (EC)  No  82/2001  of  5  December  2000  concerning  the 
definition  of 
the  concept  of  "originating  products"  and  methods  of 
administrative  co-operation  in  trade  between  the  customs  territory  of  the 
Community and Ceuta and Melilla, 

Council  Regulation  (EC)  No  1207/2001  of  11  June  2001  on  procedures  to 
facilitate the issue of movement certificates EUR.1, the making-out of invoice 
declarations  and  forms  EUR.2  and  the  issue  of  certain  approved  exporter 
authorizations  under  the  provisions  governing  preferential  trade  between  the 
European Community and certain countries. 

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•  Consistency with the other policies and objectives of the Union 

Consistent with the renewed Lisbon strategy and the e-Government initiative. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

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Consultation methods, main sectors targeted and general profile of respondents 

Progressive versions of the draft modernized Customs Code have been discussed with 
Member  States'  customs  administrations,  in  the  Customs  Code  Committee,  and  with 
European  trade  federations,  in  Trade  Contact  Group  meetings,  since  May  2004.  An 
open consultation was carried out on the Internet during the summer of 2004. 

The  numerous  comments  received  from  various  economic  operators,  Member  States, 
and  third  countries  were  then  taken  into  account  in  the  drafting  of  a  revised  version, 
which  was  presented  to  these  stakeholders  at  a  major  seminar  in  Budapest  in  April 
2005.  

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Furthermore,  a  questionnaire  was  sent  to  European  trade  federations  and  customs 
administrations  in  order  to  provide  feedback  on  the  probable  costs  and  benefits  of 
implementation of the modernized Customs Code.  

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Summary of responses and how they have been taken into account 

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The reactions to the Commission proposal received from these consultations and at the 
Budapest conference were largely favourable; however, some specific comments have 
been taken into account in the final drafting of the proposal.  

Responses were received to the impact questionnaire and the results have been collated 
in an impact assessment accompanying this draft proposal. 

An open consultation was conducted over the internet from 01/07/2004 to 15/09/2004. 
The  Commission  received  56  responses.  The  results,  including  the  Commission's 
responses  as  to  how  the  comments  have  been  taken  into  account,  are  available  on 
http://europa.eu.int/comm/taxation_customs/resources/documents/CustomsCodes_table
s.pdf 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

No  further  legal  changes:  Under  this  option,  the  current  Customs  Code,  as  recently 
amended,  but  which  was  conceived  in  the  eighties  and  entered  into  force  in  the 
nineties, would continue to apply. Paper based transactions will continue to be defined 
as  the  standard  procedure.  Customs  procedures  and  processes  will  continue  to  be 
unnecessarily  complex  and  the  rules  will  not  reflect  the  economic  reality,  making  it 
increasingly  difficult  for  both  customs  administrations  and  traders  to  apply  these 
outdated rules in a modern environment. The recently published security amendment to 
the  Customs  Code  could  lead  to  an  increase  in  compliance  costs  of  approximately 
1,200 million €, which may be reduced in part by some national IT initiatives, plus an 
increase in investment of 50 to 60 million €/year for the Commission and the Member 
States for the implementation of the necessary IT infrastructure. 

Member  States  could  still  commit  themselves,  without  re-engineering  of  the  customs 
business,  to  computerizing  customs  rules  and  procedures  within  the  existing  legal 
framework  and  create  inter-operable  customs  systems,  both  within  the  same  Member 
State  and  with  regard  to  other  Member  States.  This  would,  however,  not  allow  for  a 
change  over  to  a  fully  electronic  environment,  as  traders  would  keep  the  option  of 
submitting paper based instead of electronic customs declarations. Inter-operability is 
also  likely  to  be  limited  to  customs  administrations,  as  there  would  be  no  legal 
obligation  in  the  Customs  Code  for  the  implementation  of  a  'single  window'. 
Accessibility for traders would be limited to the present situation where only national, 
non-harmonized  interfaces  for  traders  exist.  Service  providers  and  administrations 
could  be  encouraged  to  create  single  access  points,  whereby  traders  could  submit 
declarations  to  the  competent  customs  authorities  via  their  existing  interface,  thus 
avoiding  multiplication  of  costly  investments,  but  there  would  be  no  legal  obligation 

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for  Member  States  to  invest  in  such  systems.  This  would  restrict  the  opportunity  for 
traders  to  be  able  to  benefit  from  simplifications  such  as  centralized  clearance  and 
'single  window'  and  from  Community  wide  decisions.  Only  by  further  harmonization 
of the rules and procedures at EC level will we be able to reap full benefits from the 
new electronic customs regime in the context of new business and commercial realities. 
Without  that  harmonization,  the  development  of  pan-European  strategies  and 
processes,  including  common  software  packages  would  also  be  hampered.  Multi-
national companies would often have to continue using the services of national agents 
or establish branches in all Member States where they are operating, even if they are 
able  to  use  electronic  customs  procedures.  This  could  decrease  the  above  mentioned 
security related compliance costs by about 15%, but additional costs of around 40 to 50 
million €/year are likely to be incurred.  

Modernization  of  the  Customs  Code:  Under  this  option,  an  appropriate  legal 
framework  is  put  in  place  and  the  work  of  achieving  electronic  customs  will  be 
dramatically  simplified.  Electronic  customs  under  this  option  is  mainly  'efficient 
customs',  with  an  in-depth  re-engineering  of  the  customs  business  into  a  coherent 
business package. This is a low risk strategy from an IT perspective, since the initiation 
of  any  significant  action  and  investment,  either  at  Community  or  at  national  level,  is 
based  on  solid  legal  foundations.  This  option  would  allow  for  reduced  legislative 
complexity, a level playing field for economic operators, the withdrawal of restrictions 
for customs agents and the development of a customs information portal, inter-operable 
and accessible automated customs systems, single access points, a 'single window' and 
a  'one  stop  shop'  for  control  of  goods  by  all authorities  involved  in  the  movement  of 
goods across Community borders. This option would not only significantly reduce the 
risk  of  fraud,  but  also  facilitate  trade.  The  full  objectives  in  terms  of  modernization, 
streamlining and a fully electronic environment for customs and trade can be attained. 
Companies would be able to benefit from a much improved authorization programme, 
leading both to better facilitation and greater simplification. They will be able to use, 
under certain conditions, centralized clearance, which provides them with the benefit of 
dealing  with  a  single  customs  office  in  the  EU.  Information  would  be  more  easily 
accessible, via common customs information portals, and all interactions with different 
competent  administrations  could  be  channelled  through  a  Single  Window.  The  costs 
for  such  an  'efficient  customs'  solution  would  obviously  be  higher  than  the  previous 
option, a likely additional investment of 40 to 50 million € per year, until 2013, for the 
Commission and the Member States together. Benefits, however, could be as high as 
2,500  million  €  per  year  when  the  system  is  fully  operational,  which,  at  the  earliest, 
would be in 2009. The break even point of this option will be reached in 2010. 

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The  Commission  carried  out  an  impact  assessment  listed  in  the  Work  Programme, 
whose report is accessible on: 
http://europa.eu.int/comm/taxation_customs/common/consultations/customs/index_en.
htm. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

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•  Summary of the proposed action 

To replace the existing Community Customs Code, and the related Regulations listed 
under point 1, with a modernized Customs Code that streamlines customs procedures 
and  lays  the  foundations  for  accessible,  inter-operable  customs  clearance  systems  at 

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EU level.  

•  Legal basis 

Articles 26, 95, 133 and 135 of the EC Treaty 

•  Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reasons. 

The modernized Customs Code contained in the proposal has been made as simple as 
possible,  with  the  aim  of  ensuring,  in  conjunction  with  implementing  provisions, 
guidelines  and  explanatory  notes,  its  uniform  application  throughout  the  Community. 
A directive could not achieve this objective. 

The simplification of procedures is crucial to the successful passage to the electronic 
customs  environment.  It  will  also  reduce  the  burden  on  customs  administrations  and 
economic operators who, as a consequence of recent amendments to the present Code, 
already need to invest in electronic systems, for security purposes.  

•  Choice of instruments 

Proposed instruments: Regulation. 

Other means would not be adequate for the following reason(s). 

As  there  is  exclusive  Community  competence  with  regard  to  external  trade,  only  a 
Regulation can ensure uniform application of customs legislation.  

4)  BUDGETARY IMPLICATION 

Member  States  and  traders  will  have  to  invest  in  accessible,  inter-operable  customs 
clearance  systems.  The  financial  implications  for  the  Commission  are  set  out  in  a 
financial statement attached to the proposal. 

5)  ADDITIONAL INFORMATION 

•  Simplification 

The proposal provides for simplification of legislation, simplification of administrative 
procedures for public authorities (EU or national) and simplification of administrative 
procedures for private parties. 

In addition to a simpler structure and more coherent terminology, with fewer Articles 
and  simpler  rules,  the  new  Code  takes  a  client-oriented  approach,  using  commonly 
understood  definitions  of  activities  such  as  import,  export,  movement,  storage, 
processing  or  use  of  goods.  It  also  adopts  a  process-oriented  approach,  grouping 

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together  similar  procedures  under  common  rules  with  fewer  exceptions;  some 
procedures  are  to  be  abolished  and  others  merged  or  aligned,  reducing  the  existing 
thirteen  different  customs  approved  treatments  or  uses  to  just  three  basic  procedures, 
import,  export  and  special  procedures,  all  with  consistent  rules,  notably  for 
authorizations, guarantees and customs debt.  

As  a  result,  more  than  two  thirds  of  the  258  Articles  in  the  present  Code  have  been 
amended,  integrated  or  transferred  to  the  implementing  provisions.  This  modernized 
Code, which will be followed by consolidated and simpler implementing provisions, as 
well  as  explanatory  notes  and  guidelines,  will  further  ensure  consistent  interpretation 
and application of the customs rules by Member States, which will be of great benefit 
to economic operators. 

The  merger  or  alignment  of  related  procedures  means  that  fewer  specialists  will  be 
needed to manage them, which will allow for the re-allocation of human resources to 
irregularity. 
risk  areas, 
Administrations who are in the process of reducing their staff or have done this already 
will benefit from such an approach. 

increasing  security  and  reducing 

the  risk  of 

thus 

A  simpler  structure  and  a  maximum  of  common  elements  across  different 
arrangements  will  mean  easier  access  to  the  rules  and  less  programming  efforts  for 
compliance with the customs rules.  

The proposal is included in the Commission's Work and Legislative Programme under 
the reference 2004/TAXUD-015. 

•  Repeal of existing legislation 

The adoption of the proposal will lead to the repeal of existing legislation. 

•  Detailed explanation of the proposal 

TITLE I: GENERAL PROVISIONS 

The  new  text  includes  a  mission  statement  describing  the  role  and  objectives  of  the 
customs  administrations  and  specifies  that  customs  legislation  includes  the  Customs 
Tariff, an omission from the previous Code that needed rectifying. 

The principle of electronic declarations and electronic data exchange between customs 
administrations  is  introduced,  in  full  respect  of  the  provisions  on  protection  of  data, 
together  with  a  legal  basis  for  the  voluntary  exchange  of  additional  information 
between economic operators and customs authorities. 

The  rules  on  representatives  have  been  changed,  with  former  restrictions  being 
withdrawn as they are neither compatible with an electronic environment nor with the 
principles  of  the  Single  Market.  This  revision  is  also  in  line  with  a  general  approach 
under  which  all  empowerments  for  special  national  provisions  have  been  removed 
from the Code, except where they apply to the organization of customs controls.  

The framework for the Authorized Economic Operator programme introduced into the 
Code by Council Regulation (EEC) No 648/2005 is expanded. 

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The provisions of the Code are in conformity with the Charter of Fundamental Rights, 
which requires that  every person has a right to be heard before any decision is taken 
which would adversely affect him, including decisions on post-clearance recovery and 
rejections of repayment or remission claims.  

It has been clarified that several persons may request and be covered by a decision and 
that decisions are valid throughout the Community, unless otherwise specified, and that 
the  rules  on  decisions  also  apply  where  an  appeal  is  dealt  with  by  the  customs 
authorities.  

The proposal foresees that Member State shall provide for effective, proportionate and 
dissuasive customs penalties. In order to reinforce consistency throughout the Internal 
Market,  a  common  framework  for  penalties  in  respect  of  infringements  of  the 
Community  customs  rules  will  be  proposed  to  the  Council  and  the  European 
Parliament at a later stage. 

The inclusion of exceptions to controls or formalities in this Chapter allows the repeal 
of Council Regulation (EEC) No 3925/91 of 19 December 1991.  

All  situations  where  customs  administrations  may  recover  costs  or  charge  fees  are 
brought together under one Article, instead of several. Fees for the granting of deferred 
payment have been abolished  

The  provisions  for  currency  conversion  have  been  consolidated  and  aligned  with 
Regulation (EEC, Euratom) No 1182/71; the detailed rules are now to be laid down in 
the Customs Code Implementing Provisions (CCIP). 

TITLE II: FACTORS ON THE BASIS OF WHICH IMPORT OR EXPORT DUTIES 
AND  OTHER  MEASURES  PRESCRIBED  IN  RESPECT  OF  TRADE  IN  GOODS 
ARE APPLIED 

The  new  provisions  are  aligned  with  Article  3  of  the  1994  Marrakesh  Agreement  on 
Rules of Origin. This will allow, once international harmonization work is completed, 
the incorporation of the new rules of origin into the CCIP. In addition, it is made clear 
that non-preferential rules of origin are also relevant to the application of Community 
measures  not  related  to  tariff  or  trade.  All  autonomous  origin  rules  applicable  in 
preferential  regimes,  including  Ceuta  and  Melilla,  but  apart  from  those  applicable  to 
the overseas countries and territories listed in Annex II of the EC Treaty, are also to be 
adopted under the committee procedure. 

Articles  with  general  coverage  of  valuation  issues  are  grouped  together  to  provide  a 
general  legal  basis  for  the  adoption  of  implementing  rules,  notably  when  the  EU 
accepts  commitments  and  obligations  in  relation  to  the  application  of  the  WTO 
Agreement  on  Customs  Valuation,  including  Decisions  of  the  WTO  Customs 
Valuation Committee.  

TITLE III: CUSTOMS DEBT AND GUARANTEES  

The  modernization  and  simplification  of  the  rules  on  the  customs  debt  require  major 
changes,  as  whether  or  not  a  customs  debt  is  incurred  should  depend  on  objective 
circumstances and not on the degree of negligence on the part of the person concerned. 

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This is in line with the Kyoto Convention stipulating that duties shall be repaid where it 
is established that they have been overcharged as a result of an error in their assessment 
(General  Annex,  Chapter  4,  Standard  18).  Administrative  penalties  are  a  more 
appropriate response to infringements of the customs rules in cases where the customs 
authorities  are  in  a  position  to  establish  that  a  customs  procedure  has  ended  or  been 
discharged in accordance with the customs rules.  

In  the  context  of  the  proposed  new  division  of  responsibilities  between  border  and 
inland  customs  offices,  it  is  proposed  that  a  customs  debt is  normally  incurred  at  the 
place where the holder of a procedure or an authorization is established, except where 
the  holder  is  not  established  in  the  Community  customs  territory  or  in  the  case  of 
infringements, in which case the residual rules shall apply as at present. 

Chapter 4 of the General Annex of the Kyoto Convention leaves the determination of 
the  factors,  the  conditions  and  the  point  in  time  for  the  determination  of  duties  and 
taxes to national or Community legislation, so there is no requirement to maintain the 
present  complicated  rules  for  the  determination  of  a  customs  debt  in  the  context  of 
suspensive procedures, free zones and free warehouses.  

The  provisions  of  Title  III  relating  to  “customs  debt  and  guarantees”  establish  a 
balanced approach between the interests of the trade, notably the general possibility to 
reduce the amount of the guarantee in case of potential debts and the extension of the 
cases  in  which  the  customs  debt  may  be  extinguished,  and  the  protection  of  the 
financial  interests  of  the  Community  and  of  the  Member  States,  improved  by  the 
extension  of  the  coverage  of  the  guarantee  provided  to  secure  the  amount  of  the 
customs  debt.  The  functioning  of  the  Internal  Market  will  be  improved  through  the 
harmonization  of  measures  such  as  time  limits  for  notification  of  the  amount  of  the 
customs debt where the acts which led to the incurrence of the debt are liable to give 
rise to criminal court proceedings, and the rules on the collection of interest on arrears.  

TITLE  IV:  ARRIVAL  OF  GOODS  IN  THE  CUSTOMS  TERRITORY  OF  THE 
COMMUNITY 

This Title incorporates the security-related changes to the Customs Code introduced by 
Regulation  (EC)  No  648/2005  and  further  integrates  and  consolidate  these  changes, 
taking  into  account  the  general  introduction  of  electronic  declarations,  electronic 
exchange  of  data  between  customs  authorities,  notably  the  Import  Control  System 
(ICS), and the creation of common portals and a Single Window.  

The exemption of free zones from customs supervision, a security loophole, has been 
withdrawn;  free  zones  become  a  customs  procedure  and  are  subjected  to  customs 
controls at entry and with regard to records.  

The  rules  on  the  presentation  of  goods  have  been  re-drafted  in  order  to  clarify  the 
obligations  and  the  person(s)  responsible  for  notifying  customs  of  the  arrival  of  the 
goods and making them available for controls. The deadlines for assigning the goods to 
a  customs  procedure  are  removed  as  temporary  storage  will  itself  be  a  special 
procedure.  

TITLE  V:  GENERAL  RULES  ON  CUSTOMS  STATUS  AND  CUSTOMS 
PROCEDURE  

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The  major  changes  concern  the  electronic  declaration  being  the  normal  form  of  a 
customs declaration, and the alignment of the former variants of simplified declaration 
procedures, including local clearance. 

The basic principles for the presumption, and loss, of the status of Community goods 
have been transferred to the Code from the CCIP. The detailed rules will continue to be 
laid down in the CCIP. 

With  certain  exceptions,  e.g.  Carnets  TIR  or  ATA,  where  a  customs  declaration  is 
required,  electronic  declarations  shall  become  the  rule.  Whereas  it  has  been  clarified 
that free zones will, in future, become a customs procedure, the existing waiver of the 
obligation to make a customs declaration is to be maintained. 

Where  authorized,  access  to  the  declarant’s  electronic  system  may  replace  the 
transmission of the electronic declaration. Supporting documents may also be lodged in 
electronic  form;  documents  need  not  ‘accompany’  the  declaration,  provided  they  are 
‘available to the customs authorities’.  

In  line  with  the  principles  of  the  Kyoto  Convention,  the  new  Code  provides  for  the 
lodging,  registering  and  checking  of  the  goods  declaration  prior  to  the  arrival  of  the 
goods and for the dissociation of the place where the declaration is submitted from the 
place  where  the  goods  are  physically  located.  There  is  also  provision  for  release  of 
goods  at  a  place  other  than  that  where  the  customs  declaration  has  been  accepted, 
which together with the merger of the former simplified declaration and local clearance 
procedure  provides  for  the  implementation  of  ‘centralized  clearance’.  Under  this 
system,  an  authorized  economic  operator  can  lodge  his  summary  and/or  customs 
declaration in electronic form  from his premises, irrespective of the Member State in 
which the goods are entering into or leaving the Community, so allowing companies to 
conduct all of their EU business with one customs office.  

TITLE  VI:  RELEASE  FOR  FREE  CIRCULATION  AND  RELIEF  FROM  IMPORT 
DUTIES 

As  release  for  free  circulation  is  one  of  the  most  important  customs  procedures  it  is 
considered  appropriate  to  devote  a  separate  Chapter  to  this  procedure,  despite  its 
brevity. 

This  Title  also  deals  with  goods  released  for  free  circulation  under  special 
circumstances, except for goods placed under the end-use provisions covered by Title 
VII (Special procedures) and includes the legal basis for provisions of former Council 
Regulation (EEC) No 918/83, setting up a Community system of reliefs from customs 
duty,  to  be  laid  down  in  the  CCIP.  This  is  a  more  transparent  approach  than  laying 
down some provisions in a separate Council/Parliament Regulation. 

TITLE VII: SPECIAL PROCEDURES 

The former suspensive procedures have been grouped together and aligned with other 
similar  customs  approved  treatments  and  uses  within  four  special  procedures:  transit 
(external  transit,  internal  transit);  storage  (temporary  storage,  customs  warehousing, 
free zones); specific use (temporary admission, end-use); and processing (inward and 
outward  processing).  This  alignment  has  made  it  possible  to  merge  the  inward 

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processing  suspension  system  with  processing  under  customs  control  and  to  abandon 
the inward processing drawback system, given that the intention of re-exportation is no 
longer necessary. 

Common  rules  will  govern  all  special  procedures,  such  as  those  applicable  to 
guarantee,  application  and  authorization,  and  use  of  equivalent  goods,  with  special 
rules  for  an  individual  procedure  maintained  only  where  there  are  duly  justified 
economic reasons.  

Clarifications  have  been  inserted  in  respect  of  the  suspension  of  VAT  at  importation 
and  excise  duty,  as  provided  for  under  Articles  7  (3)  and  10  (3)  of  the  6th  VAT 
Directive and Article 5 (2) of Directive 92/12/EEC.  

Special rules for agricultural products are laid down in agricultural legislation, not the 
CCIP,  and  a  reference  to  these  special  rules  is  no  longer  necessary  because  they  are 
directly applicable. 

TITLE  VIII:  DEPARTURE  OF  GOODS  FROM  THE  CUSTOMS  TERRITORY  OF 
THE COMMUNITY 

Further  amendment  is  made  to  the  requirements  for  pre-departure  declarations 
introduced under Regulation No 648/2005, taking into account the general introduction 
of  electronic  declarations,  electronic  exchange  of  data  between  customs  authorities, 
notably  the  Export  Control  System  (ECS),  and  the  future  creation  of  common 
portals/single windows.  

Specific provision is made for re-export of non-Community goods destined to leave the 
Community  although  these  will  be  subject  to  the  same  rules  as  for  the  export 
Community  goods,  apart  from  the  fact  that  a  re-export  notification  will  be  required 
instead  of  a  customs  declaration.  Summary  declarations  will  be  required  only  when 
neither  a  customs  declaration  nor  a  re-export  notification  are  required,  e.g.  for 
transhipments  and  re-exports  from  free  zones  and  from  temporary  storage  at 
ports/airports etc.  

This Title also includes the provisions for  exportation  and relief from export duty on 
account of special circumstances, which, as with import duties should be determined in 
accordance  with  the  committee  procedure,  rather  than  by  an  autonomous  Regulation. 
The provisions relating to outward processing are now covered by Title VII. 

A new Article covers certain cases of temporary export (notably under the ATA carnet 
system)  which  are  dealt  with  in  the  CCIP  but  without  a  formal  basis  in  the  present 
Code 

TITLE IX: CUSTOMS CODE COMMITTEE AND FINAL PROVISIONS 

The  committee  procedure  (consultative  committee)  is  extended  to  the  adoption  of 
explanatory notes and guidelines, which will make national instructions interpreting the 
Community customs rules unnecessary. 

In  order  to  optimise  the  efficiency  of  the  Customs  Code  Committee  in  cases  where 
implementing  provisions  are  to  be  voted  on  before  they  are  adopted  by  the 

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Commission,  this  regulatory committee is  transformed  into  a  management  committee 
and  the  period  necessary  for  Council  adoption  of  the  CCIP  is  reduced  from  three 
months to one month.  

The above mentioned repealed Regulations are incorporated in the Customs Code. 

The date of applicability of the new Community Customs Code must take into account 
the need  of  amending the  existing CCIP. This will require a period of approximately 
one year from the time that the date of the final version of the new Customs Code can 
be  safely  predicted.  Only  at  this  time  can  the  date  of  applicability  be  laid  down 
definitively. 

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RECITALS 

TABLE OF CONTENTS 

TITLE I:GENERAL PROVISIONS .................................................................................................. 11 

Chapter 1: SCOPE OF CUSTOMS LEGISLATION, MISSION OF CUSTOMS AND 

DEFINITIONS ..................................................................................................................... 12 

Chapter 2: RIGHTS AND OBLIGATIONS OF PERSONS WITH REGARD TO CUSTOMS 

LEGISLATION .................................................................................................................... 17 

Section 1: Provision of information ....................................................................................................... 17 
Section 2: Customs representation ......................................................................................................... 20 
Section 3: Authorized Economic Operator............................................................................................. 21 
Section 4: Decisions relating to the application of customs legislation ................................................. 23 
Section 5: Customs penalties.................................................................................................................. 26 
Section 6: Appeals.................................................................................................................................. 27 
Section 7: Control of goods.................................................................................................................... 28 
Section 8: Keeping of documents and other information; fees and costs............................................... 30 

Chapter 3:CURRENCY CONVERSION, TIME LIMITS AND SIMPLIFICATION.......................... 31 

TITLE II:FACTORS ON THE BASIS OF WHICH IMPORT OR EXPORT DUTIES AND 

OTHER MEASURES IN RESPECT OF TRADE IN GOODS ARE APPLIED............33 

Chapter 1: COMMON CUSTOMS TARIFF AND TARIFF CLASSIFICATION OF GOODS........ 33 

Chapter 2:ORIGIN OF GOODS............................................................................................................ 34 

Section 1: Non-preferential origin.......................................................................................................... 34 
Section 2: Preferential origin.................................................................................................................. 36 

Chapter 3:VALUE OF GOODS FOR CUSTOMS PURPOSES........................................................... 36 

TITLE III: CUSTOMS DEBT AND GUARANTEES...................................................................... 40 

Chapter 1:INCURRENCE OF A CUSTOMS DEBT............................................................................ 40 

Section 1:General provisions.................................................................................................................. 40 
Section 2:Customs debt on importation ................................................................................................. 40 
Section 3:Customs debt on exportation.................................................................................................. 43 
Section 4:Provisions common to customs debts incurred on importation and exportation.................... 44 

Chapter 2:GUARANTEE FOR A POTENTIAL OR EXISTING CUSTOMS DEBT ......................... 47 

Chapter 3:RECOVERY AND PAYMENT OF DUTY AND REPAYMENT AND REMISSION OF 

DUTY .....................................................................................................................................51 

Section 1:Determination, notification to the debtor and entry in the accounts of the amount of duty... 51 
Section 2:Time limit and procedures for payment of duty..................................................................... 54 
Section 3:Repayment and remission of duty .......................................................................................... 58 

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Chapter 4EXTINCTION OF CUSTOMS DEBT .................................................................................. 62 

TITLE IV:ARRIVAL OF GOODS IN THE CUSTOMS TERRITORY OF THE COMMUNITY
................................................................................................................................................64 

Chapter 1:GOODS BROUGHT INTO THE CUSTOMS TERRITORY.............................................. 64 

Chapter 2:ARRIVAL OF GOODS........................................................................................................ 66 

Section 1:Entry of goods into the customs territory of the Community................................................. 66 
Section 2:Presentation, unloading and examination of goods................................................................ 68 
Section 3:Formalities after presentation ......................................................................................... 69 
Section 4:Goods which have moved under a transit procedure.............................................................. 70 

TITLE V:GENERAL RULES ON CUSTOMS STATUS AND CUSTOMS PROCEDURE........ 71 

Chapter 1:STATUS OF GOODS .......................................................................................................... 71 

Chapter 2:CUSTOMS DECLARATION .............................................................................................. 72 

Section 1:General provisions.................................................................................................................. 72 
Section 2:Standard declarations ............................................................................................................. 73 
Section 3:Verification .................................................................................................................. 75 
Section 4:Release ................................................................................................................................... 77 
Chapter 3:SIMPLIFICATIONS RELATING TO CUSTOMS DECLARATIONS.............................. 78 

Section 1:Simplified declarations........................................................................................................... 78 
Section 2:Other simplifications .............................................................................................................. 80 

Chapter 4:DISPOSAL OF GOODS ...................................................................................................... 80 

TITLE VI: RELEASE FOR FREE CIRCULATION AND RELIEF FROM IMPORT DUTIES82 

Chapter 1:RELEASE FOR FREE CIRCULATION ............................................................................. 82 

Chapter 2:RELIEF FROM IMPORT DUTIES ..................................................................................... 82 

Section 1:Returned goods....................................................................................................................... 82 
Section 2:Sea-fishing and products taken from the sea.......................................................................... 84 
Section 3:Special circumstances ............................................................................................................ 84 

TITLE VII:PECIAL PROCEDURES................................................................................................ 85 

Chapter 1:GENERAL PROVISIONS ................................................................................................... 85 

Chapter 2:TRANSIT ............................................................................................................................. 89 

Section 1:External and Internal transit ................................................................................................... 89 
Section 2:Community transit.................................................................................................................. 91 

Chapter 3:STORAGE............................................................................................................................ 92 

Section 1:Common provisions ............................................................................................................... 93 
Section 2:Temporary storage.................................................................................................................. 94 
Section 3:Customs warehousing ............................................................................................................ 95 
Section 4:Free zones............................................................................................................................... 95 

Chapter 4: SPECIFIC USE.................................................................................................................... 98 

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Section 1:Temporary admission ............................................................................................................. 98 
Section 2:End-use................................................................................................................................. 100 

Chapter 5:PROCESSING.................................................................................................................... 101 

Section 1: General provisions............................................................................................................... 101 
Section 2:Inward processing ................................................................................................................ 101 
Section 3:Outward processing.............................................................................................................. 103 

TITLE VIII: DEPARTURE OF GOODS FROM THE CUSTOMS TERRITORY OF THE 

COMMUNITY .................................................................................................................... 106 

Chapter 1:GOODS LEAVING THE CUSTOMS TERRITORY........................................................ 107 

Chapter 2:EXPORT............................................................................................................................. 108 

Chapter 3:RELIEF FROM DUTIES ................................................................................................... 110 

TITLE IX:CUSTOMS CODE COMMITTEE AND FINAL PROVISIONS ............................... 111 

Chapter 1:CUSTOMS CODE COMMITTEE..................................................................................... 111 

Chapter 2:FINAL PROVISIONS ........................................................................................................ 112 

ANNEX : ............................................................................................................................................. 114 

Correlation Table 1:New Regulation > Regulation (EEC) 2913/92.................................................. 114 

Correlation Table 2:Former Regulation (EEC) 2913/92> New Regulations..................................... 117 

Correlation Table 3:Repealed Regulation > New Regulation ........................................................... 120 

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2005/0246 (COD) 

Implementing the Community Lisbon programme 
Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down the Community Customs Code 

(Modernized Customs Code) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Articles 
26, 95, 133 and 135 thereof, 

Having  regard  to  Protocol  2  to  the  Act  of  Accession  of  Spain  and  Portugal,  concerning  the 
Canary Islands and Ceuta and Melilla, and in particular Article 9 (1) thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Economic and Social Committee2, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty3, 

Whereas: 

(1) 

The Community is based upon a customs union. It is advisable, in the interests both of 
economic operators and the customs authorities in the Community, to assemble current 
customs  legislation  in  a  Community  Customs  Code  (hereinafter  called  ‘the  Code’). 
Based on the concept of an internal market, the Code should contain the general rules 
and  procedures  which  ensure  the  implementation  of  the  tariff  and  other  common 
policy  measures  introduced  at  Community  level  in  connection  with  trade  in  goods 
between  the  Community  and  countries  or  territories  outside  the  customs  territory  of 
the Community, taking into account the requirements of those common policies. This 
should  be  without  prejudice  to  specific  provisions  laid  down  in  other  fields  as  may 
exist  or  be  introduced  in  the  context,  inter  alia,  of  legislation  relating  to  agriculture, 
the environment, the common commercial policy, statistics or own resources. Customs 
legislation  should  be  better  aligned  on  the  provisions  relating  to  the  collection, 
suspension or reimbursement of Value Added Tax (VAT) and excise duties, without 
change to the scope of the tax provisions in force. 

1 
2 
3 

OJ C […], […], p. […]  
OJ C […], […], p. […] 
[Opinion  of  the  European  Parliament  of  […],  Council  Common  Position  of  […]  and  Position  of  the 
European Parliament of […] 

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(2) 

(3) 

(4) 

(5) 

(6) 

4 
5 

6 
7 

In  accordance  with  the  Communication  from  the  Commission  concerning  the 
protection of the Community’s financial interests and the Action Plan for 2004-20054, 
it  is  appropriate  to  adapt  the  legal  framework  for  the  protection  of  the  financial 
interests of the Community. 

Council  Regulation  (EEC)  No  2913/92  of  12  October  1992,  establishing  the 
Community  Customs  Code5,  was  based  upon  integration  of  the  customs  procedures 
applied separately in the Member States during the 1980s. That Regulation has been 
repeatedly  and  substantially  amended  since  its  introduction,  in  order  to  address 
specific  problems  such  as  the  protection  of  good  faith  or  the  taking  into  account  of 
security  requirements.  Further  amendments  to  the  Code  are  necessary  as  a 
consequence of the important legal changes which have occurred in recent years, both 
at Community and international level, such as the expiry of the Treaty establishing the 
European Coal and Steel Community and the entry into force of the Act of Accession 
on  1  May  2004,  as  well  as  the  Amendment  to  the  International  Convention  on  the 
simplification and harmonization of customs procedures (hereinafter referred to as the 
'Kyoto  Convention'),  the  Accession  of  the  Community  to  which  was  approved  by 
Council  Decision  2003/231/EC6.  The  time  has  now  come  to  streamline  customs 
procedures and to take into account the fact that electronic declarations and processing 
are the rule and paper-based declarations and processing the exception. For all of these 
reasons, further amendment of the present Code is not sufficient; a complete overhaul 
is necessary. 

The facilitation of legitimate trade and the fight against fraud require simple, rapid and 
standard customs procedures and processes. It is therefore appropriate, in line with the 
Communication  from  the  Commission  on  a  simple  and  paperless  environment  for 
customs and trade7, to simplify customs legislation, so as to allow the use of modern 
tools  and  technology  and  to  promote  further  the  uniform  application  of  customs 
legislation,  thus  contributing  to  ensuring  the  basis  for  efficient  and  simple  clearance 
procedures.  Customs  procedures  should  be  merged  or  aligned  and  the  number  of 
procedures reduced to those that are economically justified, with a view to increasing 
the competitiveness of business. 

The completion of the internal market, the reduction of barriers to international trade 
and  investment  and  the  reinforced  need  to  ensure  security  and  safety  at  the  external 
borders  of  the  Community  have  transformed  the  role  of  customs,  making  them  a 
central  part  of  the  globalization  process  and,  in  the  monitoring  and  management  of 
international  trade,  a  catalyst  to  the  competitiveness  of  countries  and  companies. 
Customs legislation should therefore reflect the new economic reality and the new role 
and mission of customs. 

The  use  of  Information  and  Communication  Technology  (hereinafter  referred  to  as 
'IT')  is  a  key  element  in  ensuring  trade  facilitation  and,  at  the  same  time,  the 
effectiveness of customs controls, thus reducing costs for business and risk for society. 
It  is  therefore  necessary  to  establish  the  legal  principle  that  all  customs  and  trade 

COM (2004) 544 final, 9.8.2004. 
OJ  L  302,  19.10.1992,  p.  1;  Regulation  as  last  amended  by  Regulation  (EC)  No  648/2005  of  the 
European Parliament and of the Council, (OJ L 117, 4.5.2005, p.13) 
OJ L 86, 3.4.2003, p. 21. 
COM (2003) 452 final, 24.7.2003. 

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transactions  are  to  be  handled  electronically  and  that  IT  systems  for  customs 
operations offer, in each Member State, the same facilities to economic operators. 

(7) 

(8) 

(9) 

In the interests of facilitating business, while at the same time providing for the proper 
levels  of  control  of  goods  brought  into  or  out  of  the  customs  territory  of  the 
Community, it is appropriate that the information provided by economic operators is 
shared,  taking  account  of  the  relevant  data  protection  provisions,  between  customs 
authorities  and  with  other  agencies  involved  in  that  control,  such  as  police,  border 
guards, veterinary and environmental authorities, so that the economic operator need 
give the information only once ('single window') and that the goods are controlled by 
those authorities at the same time and at the same place ('one stop shop'). 

In  the  interests  of  facilitating  business,  economic  operators  should  have  the  right  to 
appoint a representative in their dealings with the customs authorities. 

Compliant  and  trustworthy  economic  operators  should,  as  'Authorized  Economic 
Operators',  be  able  to  take  maximum  advantage  of  widespread  use  of  simplification 
and,  taking  account  of  security  and  safety  aspects,  benefit  from  reduced  levels  of 
customs control.  

(10)  All  decisions,  that  is  official  acts  by  the  customs  authorities  pertaining  to  customs 
legislation  and  having  legal  effect  on  one  or  more  persons,  including  binding 
information  issued  by  those  authorities,  should  be  covered  by  the  same  rules.  Any 
such decisions should be valid throughout the Community and be able to be annulled, 
amended  except  where  stipulated,  or  revoked  where  they  do  not  conform  to  the 
customs legislation or its interpretation. 

(11) 

In accordance with the Charter of Fundamental Rights, it is necessary, in addition to 
the right of appeal against any decision taken by the customs authorities, to provide for 
the  right  of  every  person  to  be  heard  before  any  decision  is  taken  which  would 
adversely affect him. Such a provision within the Code should also apply to cases of 
post-clearance recovery and to decisions on repayment or remission claims. 

(12)  The streamlining of customs procedures within an electronic environment requires the 
sharing of responsibilities between the customs authorities of different Member States. 
It is necessary to ensure an appropriate level of effective, dissuasive and proportionate 
sanctions  throughout  the  Internal  Market  in  order  to  discourage  any  serious 
infringements  of  the  customs  rules  and  thus  reduce  the  risk  of  fraud,  of  threats  to 
safety and security, and to protect the financial interests of the Community. This can 
only  be  achieved  through  a  common  Community  framework,  which  allocates 
jurisdiction for the imposition of penalties and delimits those penalties, in full respect 
of the Charter of Fundamental Rights.  

(13) 

In order to secure a balance between, on the one hand, the need for customs authorities 
to ensure the correct application of customs legislation and, on the other, the right of 
economic  operators  to  be  treated  fairly,  the  customs  authorities  should  be  granted 
extensive powers of control and economic operators a right of appeal. 

(14) 

In  order  to  minimize  the  occurrence  of  risk  to  the  Community,  its  citizens  and  its 
trading partners, the harmonized application of customs controls by the Member States 
should  be  based  upon  a  common  risk  management  framework  and  an  electronic 

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system  for  its  implementation.  The  establishment  of  a  risk  management  framework 
common  to  all  Member  States  should  not  prevent  them  from  controlling  goods  by 
random checks. 

(15) 

It is necessary to establish the factors on the basis of which import or export duties and 
other  measures  in  respect  of  trade  in  goods  are  applied.  It  is  also  appropriate  to  lay 
down  clear  provisions  for  issuing  proofs  of  origin  in  the  Community,  where  the 
exigencies of trade so require. 

(16)  As  regards  the  rules  on  preferential  origin,  it  is  appropriate,  in  order  to  expedite  the 
decision-making process within the Community, to confer on the Commission powers 
for  the  adoption  of  these  rules  in  the  case  of  goods  benefiting  from  preferential 
measures  applicable  to  trade  between  the  customs  territory  of  the  Community  and 
Ceuta and Melilla. 

(17) 

It  is  desirable  to  group  together  all  cases  of  incurrence  of  a  customs  debt  on 
importation, other than following the submission of a customs declaration for release 
for  free  circulation  or  temporary  admission  with  partial  relief,  in  order  to  avoid 
difficulties in determining the legal basis on which the customs debt was incurred. The 
same should apply in case of incurrence of a customs debt on exportation. 

(18)  Since  the  new  role  of  customs  authorities  implies  the  sharing  of  responsibilities  and 
co-operation between inland and border customs offices, the customs debt should, in 
most  cases,  be  incurred  at  the  place  where  the  debtor  is  established,  as  the  customs 
office  competent  for  this  place  can  best  supervise  the  activities  of  the  person 
concerned. 

(19)  Furthermore,  in  line  with  the  Kyoto  Convention,  it  is  appropriate  to  provide  for  a 
reduced number of cases where administrative co-operation between Member States is 
required  in  order  to  establish  the  place  where  the  customs  debt  was  incurred  and  to 
recover the duties. 

(20)  The rules for special procedures should allow for the use of a single guarantee for all 
categories of special procedures and for that guarantee to be comprehensive, covering 
a number of transactions. 

(21) 

(22) 

In order to ensure better protection of the financial interests of the Community and of 
the  Member  States,  a  guarantee  should  cover  non-declared  or  incorrectly  declared 
goods  included  in  a  consignment  or  a  declaration  for  which  it  is  provided.  For  the 
same  reason,  the  undertaking  of  the  guarantor  should  also  cover  amounts  of  duties 
which fall to be paid following post-release controls. 

In  order  to  safeguard  the  financial  interests  of  the  Community  and  of  the  Member 
States and to curb fraudulent practices, arrangements involving graduated measures for 
the  application  of  a  comprehensive  guarantee  are  advisable.  Where  there  is  an 
increased risk of fraud it should be possible to prohibit temporarily the application of 
the  comprehensive  guarantee,  taking  account  of  the  particular  situation  of  the 
economic operators. 

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(23) 

(24) 

(25) 

It  is  appropriate  to  take  account  of  the  good  faith  of  the  person  concerned  in  cases 
where  a  customs  debt  is  incurred  through  non-compliance  with  customs  legislation 
and to minimize the impact of negligence on the part of the debtor. 

It is necessary to lay down the principle of how to determine the status of Community 
goods, the circumstances pertaining to the loss of such status, and to provide a basis 
for determining when this status remains unaltered in cases where goods temporarily 
leave the customs territory of the Community. 

It  is  appropriate,  where  an  economic  operator  has  provided,  in  advance,  the 
information  necessary  for  risk-based  controls  on  the  admissibility  of  the  goods,  to 
ensure  that  quick  release  of  goods  is  then  the  rule.  Fiscal  and  trade  policy  controls 
should  primarily  be performed by the customs office responsible for the premises of 
the economic operator. 

(26)  The rules for customs declarations should be modernized and streamlined, in particular 
requiring  that  customs  declarations  are,  as  a  rule,  made  electronically  and  providing 
for only one type of simplified declaration. 

(27)  Since  the  Kyoto  Convention  favours  the  lodging,  registering  and  checking  of  the 
customs declaration prior to the arrival of the goods and, furthermore, the dissociation 
of  the  place  where  the  declaration  is  lodged  from  the  place  where  the  goods  are 
physically  located,  it  is  appropriate  to  provide  for  centralized  clearance  at  the  place 
where the economic operator is established. Centralized clearance should include the 
facility for the use of simplified declarations, deferment of the date of the submission 
of  a  complete  declaration  and  required  documents,  periodic  declaration  and  deferred 
payment. 

(28) 

(29) 

In  order  to  contribute  to  ensuring  neutral  conditions  for  competition  throughout  the 
Community it is appropriate to lay down at Community level the rules governing the 
destruction  or  disposal  otherwise  of  goods  by  the  customs  authorities,  which  have 
previously required national legislation.  

It  is  appropriate  to  provide  common  and  simple  rules  for  the  special  procedures 
(transit, storage, specific use and processing), supplemented by a small set of rules for 
each category of special procedure, in order to make the choice for the operator of the 
right  procedure  simple,  to  avoid  errors  and  to  reduce  the  number  of  post-release 
recoveries and repayments. 

(30)  The granting of authorizations for several special procedures with a single guarantee 
and  a  single  supervising  customs  office  should  be  facilitated  and  there  should  be 
simple  rules  on  the  incurrence  of  a  customs  debt  in  these  cases.  The  basic  principle 
should  be  that  goods  placed  under  a  special  procedure,  or  the  products  made  from 
them, are assessed at the time the customs debt is incurred. However, it should also be 
possible,  where  economically  justified,  to  assess  the  goods  at  the  time  they  were 
placed under a special procedure. The same principles should apply to usual forms of 
handling. 

(31) 

In  view  of  the  increased  security-related  measures  introduced  into  the  Code  under 
Regulation (EC) No 648/2005, the placing of goods into free zones should become a 

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21 

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customs  procedure  and the goods should be subject to customs controls at entry and 
with regard to records. 

(32)  For goods placed under a specific use, a basic legal framework should be established 
relating  to  the  suspension  of  excise  duty,  provided  for  under  Council  Directive 
92/12/EEC of 25t February 1992, on the General Arrangements for products subject to 
excise duty and on the holding, movement and monitoring of such products8, VAT at 
importation  provided  for  under  Articles  7(3)  and  10(3)  of  Council  Directive 
77/388/EEC of 17 May 1977 on the harmonization of the laws of the Member States 
relating  to  turnover  taxes  –  Common  system  of  value  added  tax;  uniform  basis  of 
assessment9, and commercial policy measures. 

(33)  Given  that  the  intention  of  re-exportation  is  no  longer  necessary,  the  inward 
processing  suspension  procedure  should  be  merged  with  processing  under  customs 
control  and  the  inward  processing  drawback  procedure  abandoned.  This  one  inward 
processing  procedure  should  also  cover  destruction,  except  where  destruction  is 
carried out by, or under the supervision of, customs. 

(34)  Security-related  measures  relating  to  Community  goods  brought  out  of  the  customs 
territory of the Community should apply equally to the re-export of non-Community 
goods. The same basic rules should apply to all types of goods, with the possibility of 
exceptions  where  necessary,  such  as  for  goods  only  transiting  through  the  customs 
territory of the Community. 

(35) 

It  is  appropriate,  in  order  to  ensure  an  effective  decision-making  process  and 
uniformity,  to  streamline  mechanisms  for  the  adoption  of  implementing  measures, 
explanatory  notes,  guidelines  and  decisions  of  the  Commission  requesting  the 
withdrawal  of  a  decision  taken  by  the  customs  authorities,  as  well  as  for  the 
preparation  of  a  common  position  in  committees,  working  groups  and  panels 
introduced by or under international agreements dealing with customs legislation. The 
management  procedure  is  most  appropriate  for  the  adoption  of  implementing 
provisions,  and  the  consultative  procedure  most  appropriate  for  the  adoption  of 
guidelines and explanatory notes. 

(36)  The measures necessary for the implementation of this Regulation should be adopted 
in  accordance  with  Council  Decision  1999/468/EC  of  28  January  1999  laying  down 
the  procedure  for 
the 
Commission10. 

implementing  powers  conferred  on 

the  exercise  of 

(37) 

It is appropriate to provide empowerment for the adoption of implementing provisions, 
notably  where  the  Community  accepts  commitments  and  obligations  in  relation  to 
international agreements which require the adaptation of provisions of the Code.  

8 

9 

10 

OJ L 76, 23.3.1992, p. 1; Directive as last amended by Directive 2004/106/EC (OJ L 359, 4.12.2004, 
p.30) 
OJ  L  145,  13.6.1977,  p.  1;  Directive  as  last  amended  by  Directive  2004/66/EC  (OJ  L  168,  1.5.2004, 
p.35) 
OJ L 184, 17.7.1999, p. 23. 

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22 

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(38) 

In  order  to  simplify  and  rationalize  customs  legislation,  a  number  of  provisions 
presently contained in autonomous Community acts have, for the sake of transparency 
been incorporated into the Code. 

The  following  Regulations,  together  with  Regulation  (EEC)  No  2913/92,  should 
therefore be repealed: 

– 

– 

– 

– 

Council  Regulation  (EEC)  No  918/83  of  28  March  1983  setting  up  a 
Community system of reliefs from customs duties11, 

Council  Regulation  (EEC)  No  3925/91  of  19  December  1991  concerning  the 
elimination  of  controls  and  formalities  applicable  to  the  cabin  and  hold 
baggage  of  persons  taking  an  intra-Community  flight  and  the  baggage  of 
persons making an intra-Community sea crossing12, 

Council  Regulation  (EC)  No  82/2001  of  5  December  2000  concerning  the 
the  concept  of  "originating  products"  and  methods  of 
definition  of 
administrative  co-operation  in  trade  between  the  customs  territory  of  the 
Community and Ceuta and Melilla13, 

Council  Regulation  (EC)  No  1207/2001  of  11  June  2001  on  procedures  to 
facilitate the issue of movement certificates EUR.1, the making-out of invoice 
declarations  and  forms  EUR.2  and  the  issue  of  certain  approved  exporter 
authorizations  under  the  provisions  governing  preferential  trade  between  the 
European Community and certain countries14. 

(39) 

In accordance with the principle of proportionality, it is necessary, and appropriate for 
the  effective  functioning  of  the  Customs  Union  as  a  central  pillar  of  the  internal 
market,  to  lay  down  rules  and  procedures  applicable  to  goods  brought  into  or  out  of 
the customs territory of the Community. This Regulation does not go beyond what is 
necessary  in  order  to  achieve  the  objectives  pursued,  in  accordance  with  the  third 
paragraph of Article 5 of the Treaty, 

HAVE ADOPTED THIS REGULATION: 

TITLE I 

GENERAL PROVISIONS 

CHAPTER 1 

SCOPE OF CUSTOMS LEGISLATION, MISSION OF CUSTOMS AND DEFINITIONS 

11 
12 

13 
14 

OJ L 105, 23.4.1983, p. 1; Regulation as last amended by the Act of Accession of 2003. 
OJ  L  374,  31.12.1991,  p.  4;  Regulation  as  last  amended  by  Regulation  (EC)  No  1882/2003  of  the 
European Parliament and of the Council (OJ L 284, 31.10.2003, p.1) 
OJ L 20, 20.1.2001, p. 1. 
OJ L 165, 21.6.2001, p. 1. 

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23 

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Article 1 

Subject matter and scope 

This regulation establishes the Community Customs Code, hereinafter 'the Code', laying down 
the  general  rules  and  procedures  applicable  to  goods  brought  into  or  out  of  the  customs 
territory of the Community. 

The Code shall apply uniformly throughout the customs territory of the Community without 
prejudice to legislation in other fields pertaining to such trade. 

Article 2 

Mission of customs authorities 

Customs  authorities  shall  be  responsible  for  administering  international  trade  at  the 
Community's  external  borders,  thereby  contributing  to  open  trade,  to  the  implementation  of 
the external aspects of the internal market and of common Community policies with a bearing 
on trade, as well as to overall supply chain security. These tasks shall include the following: 

(a) 

(b) 

(c) 

protecting the financial interests of the Community and its Member States;  

protecting the Community from unfair and illegal trade while supporting legitimate 
business activity; 

ensuring the security and safety of citizens, and the environment, where appropriate 
in close co-operation with other authorities; 

(d) 

facilitating international trade. 

Article 3 

Customs territory 

1. 

The  customs  territory  of  the  Community  shall  comprise  the  following  territories, 
including their territorial waters, internal waters and airspace: 

– 

– 

– 

– 

– 

– 

– 

the territory of the Kingdom of Belgium; 

the territory of the Czech Republic; 

the  territory  of  the  Kingdom  of  Denmark,  except  the  Faeroe  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 Republic of Estonia;  

the territory of the Hellenic Republic; 

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

EN 

24 

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– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

the  territory  of  the  French  Republic,  except  New  Caledonia,  Mayotte,  Saint-
Pierre and Miquelon, Wallis and Futuna Islands and French Polynesia; 

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 Republic of Cyprus, in accordance with the provisions of the 
Act of Accession; 

the territory of the Republic of Latvia; 

the territory of the Republic of Lithuania; 

the territory of the Grand Duchy of Luxembourg; 

the territory of the Republic of Hungary; 

the territory of the Republic of Malta; 

the territory of the Kingdom of the Netherlands in Europe; 

the territory of the Republic of Austria; 

the territory of the Republic of Poland; 

the territory of the Portuguese Republic; 

the territory of the Republic of Slovenia; 

the territory of the Slovak 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. 

2. 

The  following  territories,  including  their  territorial  waters,  internal  waters  and 
airspace,  situated  outside  the  territory  of  the  Member  States  shall,  taking  the 
conventions and treaties applicable to them into account, be considered to be part of 
the customs territory of the Community: 

(a)  FRANCE 

The territory of Monaco as defined in the Customs Convention signed in Paris 
on  18  May  1963  (Official  Journal  of  the  French  Republic  of  27  September 
1963, p. 8679); 

(b)  CYPRUS 

The  territory  of  the  United  Kingdom  Sovereign  Base  Areas  of  Akrotiri  and 
Dhekelia as defined in the Treaty concerning the Establishment of the Republic 
of  Cyprus,  signed  in  Nicosia  on  16  August  1960  (United  Kingdom  Treaty 
Series No 4 (1961) Cmnd. 1252). 

EN 

25 

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3. 

Certain provisions of the customs legislation may apply outside the customs territory 
of the Community within the framework of legislation governing specific fields or of 
international conventions. 

EN 

26 

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Article 4 

Definitions 

For the purposes of the Code, the following definitions shall apply:  

(1) 

'Customs  authorities'  means  the  customs  administrations  of  the  Member  States 
responsible for applying the customs legislation and any other authorities empowered 
under national law to apply certain customs legislation. 

(2) 

'Customs legislation' means the body of legislation made up of the following: 

(a) 

the  Code  and  the  provisions  adopted  at  Community  level  and,  where 
appropriate, at national level, to implement it; 

(b) 

the Common Customs Tariff; 

(c) 

international  agreements  containing  customs  provisions,  in  so  far  as  they  are 
applicable in the Community. 

'Person' means natural persons, legal persons, and any association of persons which 
is  not  a  legal  person  but  which  is  recognized  under  Community  or  national  law  as 
having the capacity to perform legal acts.  

'Economic operator' means a person who is professionally involved in the import or 
export of goods to or from the customs territory of the Community. 

'Risk' means the likelihood of an event that may occur, with regard to the entry, exit, 
transit,  transfer  or  end-use  of  goods  moved  between  the  customs  territory  of  the 
Community  and  countries  or territories outside that territory and to the presence of 
goods which do not have Community status, which would have any of the following 
results: 

(a) 

it would prevent the correct application of Community or national measures; 

(b) 

(c) 

it would compromise the financial interests of the Community and its Member 
States; 

it  would  pose  a  threat  to  the  security  and  safety  of  the  Community  and  its 
citizens, to human, animal or plant health, to the environment or to consumers. 

'Customs controls' means specific acts performed by the customs authorities pursuant 
to Articles 27 to 30. 

'Summary declaration' means a declaration to be made before goods are brought into 
or out of the customs territory of the Community. 

'Customs  declaration'  means  the  act  whereby  a  person  indicates  in  the  prescribed 
form  and  manner  a  wish  to  place  goods  under  a  given  customs  procedure,  with  an 
indication, where appropriate, of the specific arrangement to be applied. 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

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27 

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(9) 

'Customs procedure' means any of the following procedures under which goods may 
be placed in accordance with this Code: 

(a) 

release for free circulation; 

(b) 

special procedures; 

(c) 

export. 

'Import  duties'  means  customs  duties  as laid down in the  Common Customs  Tariff, 
payable on the importation of goods. 

'Export  duties'  means  customs  duties  as laid down in  the Common  Customs Tariff, 
payable on the exportation of goods. 

'Non-Community  goods'  means  goods  other  than  those  referred  to  in  point  (20)  or 
which have lost their status as Community goods. 

'Risk  management'  means 
implementation of all measures necessary for limiting exposure to risk. 

identification  of 

the  systematic 

risk  and 

the 

'Release  of  goods'  means  the  act  whereby  the  customs  authorities  make  goods 
available for the purposes specified for the customs procedure under which they are 
placed. 

'Customs supervision' means action taken in general by the customs authorities with 
a view to ensuring that customs legislation and, where appropriate, other provisions 
applicable to goods subject to such action are observed. 

'Drawback' means the repayment or remission of import duties on goods released for 
free  circulation  if  such  goods  are  exported  from  the  customs  territory  of  the 
Community in an unaltered state or in the form of processed products.  

(10) 

(11) 

(12) 

(13) 

(14) 

(15) 

(16) 

(17) 

'Processed  products'  means  goods  placed  under  a  processing  procedure  which  have 
undergone processing operations. 

(18) 

'Person established in the customs territory of the Community' means: 

(a) 

(b) 

in the case of a natural person, any person who has his habitual residence in the 
customs territory of the Community; 

in the case of a legal person or an association of persons, any person who has 
registered  office,  central  headquarters  or  a  permanent  business 
his 
establishment in the customs territory of the Community. 

(19) 

'Customs status' means the status of goods as Community or non-Community goods. 

(20) 

'Community goods' means goods which fall into any of the following categories: 

(a) 

goods  wholly  obtained  in  the  customs  territory  of  the  Community  and  not 
incorporating  goods  imported  from  countries  or  territories  outside  of  the 
customs territory of the Community; 

EN 

28 

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(b)  goods imported from countries or territories outside of the customs territory of 

the Community and released for free circulation; 

(c) 

goods obtained or produced in the customs territory of the Community, either 
solely from goods referred to in point (b) or from goods referred to in points (a) 
and (b). 

(21) 

(22) 

(23) 

(24) 

'Presentation of goods to customs' means the notification to the customs authorities 
of  the  arrival  of  goods  at  the  customs  office  or  at  any  other  place  designated  or 
approved by the customs authorities and the availability of those goods for customs 
controls. 

'Holder of the goods' means the person who is the owner of the goods or who has a 
similar right of disposal over them or who has physical control of them. 

'Holder of the procedure' means the person who makes the declaration, or on whose 
behalf  the  customs  declaration  is  made,  or  the  person  to  whom  the  rights  and 
obligations of that person in respect of a customs procedure have been transferred. 

'Commercial policy measures' means  non-tariff measures  established, as  part of the 
common  commercial  policy,  in  the  form  of  Community  provisions  governing  the 
import and export of goods. 

(25) 

'Processing operations' means any of the following: 

(a) 

the working of goods, including erecting or assembling them or fitting them to 
other goods; 

(b) 

the processing of goods;  

(c ) 

the destruction of goods; 

(d) 

the repair of goods, including restoring them and putting them in order; 

(e) 

the use of goods which are not to be found in the processed products, but which 
allow or facilitate the production of those products, even if they are entirely or 
partially used up in the process (production accessories). 

(26) 

'Rate of yield' means the quantity or percentage of processed products obtained from 
the processing of a given quantity of goods placed under a processing procedure. 

EN 

29 

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CHAPTER 2 

RIGHTS AND OBLIGATIONS OF PERSONS WITH REGARD TO CUSTOMS 
LEGISLATION 

Section 1 

Provision of information 

Article 5 

Exchange of data 

1. 

2. 

All  required  exchanges  of  data,  accompanying  documents,  decisions  and 
notifications  between  customs  authorities  and  between  economic  operators  and 
customs authorities shall be made using electronic data processing techniques. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  exceptions  to  the  first  subparagraph  of  this 
paragraph. 

Save  where  otherwise  specifically  provided,  the  Commission  shall,  in  accordance 
with  the  procedure  referred  to  in  Article  196(2),  adopt  measures  laying  down  the 
following: 

(a) 

(b) 

the  rules  defining  and  governing  the  messages  to  be  exchanged  between 
customs offices, as required for the application of the customs legislation; 

a common data set and format of the data messages to be exchanged under the 
customs legislation. 

The data referred to in point (b) of the first subparagraph shall contain the particulars 
necessary  for  risk  analysis  and  the  proper  application  of  customs  controls,  using, 
where appropriate, international standards and commercial practices. 

The systems necessary for the electronic exchange of data between customs offices 
in accordance with paragraph 1 shall be in place by 30 June 2009, at the latest. 

Article 6 

Data protection 

1. 

All information acquired by the customs authorities in the course of performing their 
duties which is by its nature confidential or which is provided on a confidential basis 
shall be covered by the obligation of professional secrecy. Except for the purposes of 
customs controls as provided for under Article 28(2), such information shall not be 
disclosed by the competent authorities without the express permission of the person 
or authority who provided it. 

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30 

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Such  information  may,  however,  be  disclosed  without  permission  where  the 
competent authorities are obliged or authorized to do so pursuant to the provisions in 
force,  particularly  in  respect  of  data  protection,  or  in  connection  with  legal 
proceedings. 

Communication of confidential data to the customs administrations and other bodies 
of  countries  or  territories  outside  the  customs  territory  of  the  Community  shall  be 
permitted  only  in  the  framework  of  an  international  agreement,  ensuring  an 
equivalent level of data protection. 

The disclosure or communication of information shall take place in full compliance 
with data protection provisions in force.  

Article 7 

Exchange of additional information between customs authorities and economic 
operators 

Customs  authorities  and  economic  operators  may  exchange  any  information  not 
specifically  required  under  the  customs  legislation,  for  the  purpose  of  mutual  co-
operation  in  the  identification  and  counteraction  of  risk.  That  exchange  may  take 
place under a written agreement and may include access to the computer systems of 
economic operators by the customs authorities. 

Any information provided by one party to the other in the course of the co-operation 
referred to in paragraph 1 shall be confidential unless both parties agree otherwise.  

Article 8 

Provision of information by the customs authorities 

Any  person  may  request  information  concerning  the  application  of  customs 
legislation from the customs authorities. Such a request may be refused where it does 
not relate to an import or export operation actually envisaged. 

Customs administrations shall maintain a regular dialogue with economic operators 
and  other  authorities  involved  in  international  trade  in  goods.  They  shall  promote 
transparency by making the legislation, administrative rulings and application forms 
pertaining  to  international  trade  in  goods  available  to  economic  operators  free  of 
charge and, wherever practical, through the Internet. 

Article 9 

Provision of information to the customs authorities 

Any  person  directly  or  indirectly  involved  in  the  accomplishment  of  customs 
formalities shall provide the customs authorities with all the requisite documents and 
information, irrespective of the medium used, and all the requisite assistance, at the 
request of the customs authorities and within any time limit specified.  

2. 

1. 

2. 

1. 

2. 

1. 

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31 

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2. 

Without prejudice to the possible application of administrative or criminal penalties, 
the lodging of a summary declaration or customs declaration, including a simplified 
declaration, or notification, or the submission of an application for an authorization 
or  any  other  decision,  shall  render  the  person  concerned  responsible  for  the 
following: 

(a) 

the  accuracy  of  the  information  given  in  the  declaration,  notification  or 
application, or in any other relevant form; 

(b) 

the authenticity of any documents lodged or made available; 

(c)  where applicable, compliance with all of the obligations relating to the placing 
of  the  goods  in  question  under  the  procedure  concerned,  or  to  the  conduct  of 
the authorized operations. 

The first subparagraph shall apply also to the provision of any information required 
by the customs authorities. 

Where  the  declaration  or  notification  is  lodged,  the  application  is  submitted  or 
requested  information  is  provided  by  a  representative  of  the  person  concerned,  the 
representative shall also be bound by the obligations set out in first subparagraph. 

Article 10  

Common data system 

Member States shall co-operate with the Commission with a view to developing, maintaining 
and employing an electronic system for the common registration and maintenance of records 
of the following: 

(a) 

(b) 

all  persons  directly  or  indirectly  involved  in  the  accomplishment  of  customs 
formalities; 

any  authorization  concerning  a  customs  procedure  or  the  status  of  Authorized 
Economic Operator. 

The data shall be accessible to the customs administrations of the Member States in the course 
of their duties and, in accordance with the rules referred to in the third paragraph, to economic 
operators. 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down the standard form and content of the data to be registered and the rules 
for access to that data. 

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Section 2 

Customs representation 

Article 11 

Customs representative 

1. 

Any person may appoint a representative in his dealings with the customs authorities 
to perform the acts and formalities laid down in the customs legislation, hereinafter a 
'customs representative'. 

Such  customs  representation  may  be  either  direct,  in  which  case  the  customs 
representative shall act in the name of and on behalf of another person, or indirect, in 
which  case  the  customs  representative  shall  act  in  his  own  name  but  on  behalf  of 
another person. 

2. 

A  customs  representative  must  be  established  within  the  customs  territory  of  the 
Community. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  the  conditions  under  which  the  requirement 
referred to in the first subparagraph of this paragraph may be waived. 

Article 12 

Empowerment 

1. 

2. 

When dealing with the customs authorities, a customs representative shall state that 
he  is  acting  on  behalf  of  the  person  represented  and  specify  whether  the  customs 
representation is direct or indirect.  

A person who fails to state that he is acting in the name of or on behalf of another 
person or who states that he is acting in the name of or on behalf of another person 
without being empowered to do so shall be deemed to be acting in his own name and 
on his own behalf. 

The customs authorities may require any person stating that he is acting in the name 
of  or  on  behalf  of  another  person  to  produce  evidence  of  his  powers  to  act  as  a 
customs  representative,  except  where  a  person  belongs  to  a  category  of  persons 
entitled to act on behalf of another person. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  identifying  the  categories  of  persons  referred  to  in  the  first 
subparagraph of this paragraph. 

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Article 13 

Representation in special cases 

Where a person acts as a customs representative on a regular and commercial basis, 
he  may  be  granted  the  status  of  'authorized  economic  operator'  in  accordance  with 
Article 14. 

A  customs  representative  may  act  as  a  fiscal  representative,  as  provided  for  under 
value added tax, hereinafter 'VAT', and excise provisions in force. 

Section 3 

Authorized Economic Operator 

Article 14 

Application and authorization 

A  person  who  is  established  in  the  customs  territory  of  the  Community  and  who 
meets  the  conditions  set  out  in  Articles  15  and  16  may  request  the  status  of 
authorized economic operator.  

The  customs  authorities  shall,  if  necessary  following  consultation  with  other 
competent authorities, grant that status, which shall be subject to periodic review. 

An  authorized  economic  operator  may  benefit  from  facilitations  with  regard  to 
customs controls relating to security and safety or from simplifications provided for 
in accordance with this Code or its implementing provisions. 

The  status  of  authorized  economic  operator  shall,  subject  to  Articles  15  and  16,  be 
recognized  by  the  customs  authorities  in  all  Member  States,  without  prejudice  to 
customs controls. However, subject to the conditions laid down pursuant to point (g) 
of Article 16, the applicant may request that the status referred to in paragraph 1 of 
this Article may be limited to one or more specified Member States. 

Customs authorities shall, on the basis of the recognition of the status of authorized 
economic  operator  and  provided  that  the  requirements  related  to  a  specific  type  of 
simplification provided for in Community customs legislation are fulfilled, authorize 
the operator to benefit from that simplification. 

The  status  of  authorized  economic  operator  may  be  suspended  or  withdrawn  in 
accordance with the conditions laid down pursuant to point (h) of Article 16. 

The authorized economic operator shall notify the customs authorities of all factors 
arising after that status was granted which may influence its continuation or content.  

1. 

2. 

1. 

2. 

3. 

4. 

5. 

6. 

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Article 15 

Granting of status  

The criteria for the granting of the status of authorized economic operator shall be at least the 
following: 

(a) 

an appropriate record of compliance with customs requirements; 

(b) 

a  satisfactory  system  of  managing  commercial  and,  where  appropriate, 
transport records, which allows appropriate customs controls; 

(c) 

where appropriate, proven financial solvency; 

(d) 

where  appropriate,  practical  standards  of  competence  or  professional 
qualifications directly related to the activity carried out; 

(e) 

where applicable, appropriate security and safety standards. 

Article 16 

Implementing measures 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures governing the following matters: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

the granting of the status of authorized economic operator; 

the frequency of review of the status of authorized economic operator;  

the granting of authorizations for the use of simplifications; 

identification of the customs authority competent for the granting of such status and 
authorizations; 

the type and extent of facilitations that may be granted in respect of customs controls 
relating  to  security  and  safety,  taking  into  account  the  rules  adopted  pursuant  to 
Article 27(3); 

consultation with and provision of information to other customs authorities; 

the conditions under which a request made by the applicant for an authorization may 
be limited to one or more Member States; 

the  conditions  under  which  the  status  of  authorized  economic  operator  may  be 
suspended or revoked; 

the conditions  under which the requirement of being established in the Community 
may be waived for specific categories of authorized economic operators, taking into 
account, in particular, international agreements. 

EN 

35 

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1. 

2. 

3. 

4. 

Section 4 

Decisions relating to the application of customs legislation 

Article 17 

General provisions 

Where  a  person  requests  that  the  customs  authorities  take  a  decision,  that  person 
shall supply all the information required by those authorities in order for them to be 
able to take that decision. 

A decision may also be requested by, and taken with regard to, several persons.  

A decision as referred to in paragraph 1 shall be taken, and the applicant notified, at 
the  latest  within  two  months  of  the  date  on  which  the  request  is  received  by  the 
customs authorities, except where otherwise provided for in the customs legislation. 

However, where the customs authorities are unable to comply with those time limits, 
they  shall  inform  the  applicant  of  that  fact  before  the  expiry  of  those  time  limits, 
stating  the  reasons  and  indicating  the  further  period  of  time  which  they  consider 
necessary in order to give a decision on the request.  

Unless otherwise specified in the decision or in the customs legislation, the decision 
shall  take  effect  from  the  date  on  which  the  applicant  receives  the  decision,  or  is 
deemed  to  have  received  it.  Except  in  the  cases  provided  for  in  Article  25(2), 
decisions adopted shall be enforceable by the customs authorities from that date. 

Before  taking  a  decision  which  would  adversely  affect  the  person  or  persons  to 
whom it is addressed, the customs authorities shall communicate their objections to 
the  latter,  stating  the  grounds  on  which  they  base  those  objections.  The  person 
concerned shall be given the opportunity to express his point of view, within a period 
from the date on which the objections were sent.  

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures laying down the period referred to in the first subparagraph 
of this paragraph . 

Upon expiry of this period, the person concerned shall be notified, in the appropriate 
form, of the decision, which shall set out the grounds on which it is based. 

The requirement to communicate objections before a decision is taken which would 
adversely  affect  the  person  to  whom  it  is  addressed,  shall  also  apply  to  decisions 
taken by the customs authorities without prior request from the person concerned and 
in particular to the notification of a customs debt as set out in Article 72(3). 

The decision shall refer to the right of appeal provided for in Article 24. 

5. 

Without prejudice to provisions laid down in other fields which specify the cases in 
which,  and  the  conditions  under  which,  decisions  are  invalid  or  become  null  and 
void, the customs authorities who issued  a decision may annul,  amend  or  revoke it 

EN 

36 

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where  it  does  not  conform  with  the  customs  legislation  or  with  guidelines  or 
explanatory notes for its interpretation.  

Article 18 

Community-wide validity of decisions  

Unless otherwise  requested or specified, decisions  taken by the customs authorities shall be 
valid throughout the customs territory of the Community. 

Article 19 

Annulment of favourable decisions 

1. 

The customs authorities shall annul a decision favourable to the person to whom it is 
addressed if all the following conditions are satisfied: 

(a) 

the decision was issued on the basis of incorrect or incomplete information;  

(b) 

(c) 

the applicant knew or ought reasonably to have known that the information was 
incorrect or incomplete; 

if the information had been correct and complete, the decision would have been 
different. 

The person to whom the decision was addressed shall be notified of its annulment. 

Annulment shall take effect from the date on which the initial decision took effect, 
unless otherwise specified. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  for  the  implementation  of  paragraphs  1,  2  and  3  of  this 
Article, in particular in respect of decisions addressed to several persons. 

Article 20 

Revocation and amendment of favourable decisions 

A favourable decision shall be revoked or amended where, in cases other than those 
referred to in Article 19, one or more of the conditions laid down for its issue were 
not or are no longer fulfilled. 

Unless  otherwise  specified  in  the  customs  legislation,  a  favourable  decision 
addressed to several persons may be revoked only in respect of a person who fails to 
fulfil an obligation imposed under that decision.  

The person to whom the decision was addressed shall be notified of its revocation or 
amendment.  

2. 

3. 

4. 

1. 

2. 

3. 

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37 

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4. 

5. 

1. 

The  revocation  or  amendment  of  the  decision  shall  take  effect  from  the  date  on 
which the notification of the revocation or amendment is received, or is deemed to 
have been received, by the person to whom it was addressed.  

However, in exceptional cases where the legitimate interests of the person to whom 
the decision was addressed so require, the customs authorities may defer the date on 
which revocation or amendment takes effect. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures for the implementation of paragraphs 1 to 4 of this Article, in 
particular in respect of decisions addressed to several persons.  

Article 21 

Special decisions 

The  customs  authorities  shall,  on  request,  issue  decisions  specifying  binding  tariff 
information,  hereinafter  'BTI  decisions',  or  decisions  specifying  binding  origin 
information, hereinafter 'BOI decisions'.  

Such  a  request  may  be  refused  where  it  does  not  relate  to  any  customs  procedure 
actually envisaged. 

2. 

BTI  or  BOI  decisions  shall  be  binding  only  in  respect  of  the  tariff  classification  or 
determination of the origin of goods. 

They shall be binding on the customs authorities, as against the person to whom the 
decision was addressed, only in respect of goods for which customs formalities are 
completed after the date of the decision. 

They  shall  be  binding  on  the  person  addressed,  as  against  the  customs  authorities, 
only with effect from the date on which he receives, or is deemed to have received, 
notification of the decision. 

BTI  or  BOI  decisions  shall  be  valid  for  a  period  of  three  years  from  the  date 
specified in the decision.  

For the application of a BTI or BOI decision in the context of a particular customs 
procedure, the person to whom that decision is addressed must be able to prove that: 

(a) 

(b) 

in the case of a BTI decision, the goods declared correspond in every respect to 
those described in the decision; 

in  the  case  of  a  BOI  decision,  the  goods  in  question  and  the  circumstances 
determining the acquisition of origin correspond in every respect to the goods 
and the circumstances described in the decision. 

By way of derogation from Article 17(5) and Article 19, BTI or BOI decisions shall 
be annulled where they are based on inaccurate or incomplete information from the 
applicants. 

3. 

4. 

5. 

EN 

38 

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6. 

7. 

8. 

BTI or BOI decisions shall be revoked in accordance with Article 17(5) and Article 
20. 

They may not be amended. 

Notwithstanding Article 20, the Commission shall, in accordance with the procedure 
referred to in Article 196(2), adopt measures laying down the following: 

(a) 

(b) 

the  conditions  under  which,  and  the  moment  when,  the  BTI  or  BOI  decision 
ceases to be valid; 

the  conditions  under  which,  and  the  period  of  time  for  which,  a  decision  as 
referred to in point (a) may still be used in respect of binding contracts based 
upon the decision and concluded before the expiry of its validity. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  the  conditions  under  which  other  special 
decisions are to be issued.  

Section 5 

Customs penalties  

Article 22 

Customs penalties  

1. 

Each Member State shall provide for administrative and criminal penalties for failure 
to  comply  with  Community  customs  legislation.  Such  penalties  shall  be  effective, 
proportionate and dissuasive. 

2. 

Administrative penalties shall take one of the following forms, or both:  

(a) 

(b) 

a pecuniary charge by the customs authorities, including a settlement applied in 
place of and in lieu of a criminal penalty; 

the  withdrawal,  suspension  or  amendment  of  any  authorization  held  by  the 
person concerned. 

Where administrative penalties are combined with criminal penalties, on the basis of 
the same facts, aggregation of such penalties shall be proportionate.  

Section 6 

Appeals 

Article 23 

Decisions taken by a judicial authority  

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39 

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Articles  24,  25  and  26  shall  not  apply  to  appeals  lodged  with  a  view  to  the  annulment, 
revocation or amendment of a decision taken by a judicial authority. 

Article 24 

Right of appeal  

1. 

Any person shall have the right to appeal against any decision taken by the customs 
authorities which concerns him directly and individually. 

Any  person  who  has  applied  to  the  customs  authorities  for  a  decision  and  has  not 
obtained a decision on that request within the time limits referred to in Article 17(2) 
shall also be entitled to exercise the right of appeal. 

2. 

The right of appeal may be exercised in at least two steps:  

(a) 

(b) 

initially,  before  the  customs  authorities  or  another  body  which  may  be  a 
judicial authority or an equivalent specialized body designated for that purpose 
by the Member States; 

subsequently,  before  a  higher  independent  body,  which  may  be  a  judicial 
authority  or  an  equivalent  specialized  body,  according  to  the  provisions  in 
force in the Member States. 

3. 

The appeal must be lodged in electronic or written form in the Member State where 
the decision has been taken or applied for. 

Article 25 

Suspension of implementation 

1. 

2. 

3. 

The submission of an appeal shall not cause implementation of the disputed decision 
to be suspended. 

By way of derogation from paragraph 1, where irreparable damage may be caused to 
the  person  who  lodged  the  appeal,  the  customs  authorities  shall  suspend 
implementation of the disputed decision, in whole or in part. 

The  customs  authorities  may  suspend  implementation  of  the  disputed  decision,  in 
whole or in part, where they have good reason to suspect that it is inconsistent with 
the customs legislation. 

Where the disputed decision has the effect of causing import duties or export duties 
to be payable, suspension of that decision shall be conditional upon the provision of a 
guarantee,  unless  such  a  guarantee  would  be  likely  to  cause  the  debtor  serious 
economic or social difficulties. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  for  the  implementation  of  the  first  subparagraph  of  this 
paragraph. 

EN 

40 

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Article 26 

Decision on the appeal 

Article 17 shall apply with regard to decisions by the customs authorities on appeals.  

Member  States  shall  ensure  that  the  appeals  procedure  enables  the  prompt  correction  of 
decisions taken by the customs authorities. 

Section 7 

Control of goods 

Article 27 

Customs controls 

1. 

2. 

The  customs  authorities  may  carry  out  all  of  the  controls  they  deem  necessary  to 
ensure the correct application of customs legislation and other legislation governing 
the  entry,  exit,  transit,  transfer  and  end-use  of  goods  moved  between  the  customs 
territory of the Community and other territories, and the presence of non-Community 
goods. 

Those  controls,  hereinafter  'customs  controls',  may  consist  in  examining  goods, 
verifying declaration data and the existence and authenticity of electronic or written 
documents,  examining  the  accounts  of  undertakings  and  other  records,  inspecting 
means of transport, inspecting luggage and other goods carried by or on persons. 

Customs controls may be carried out outside the customs territory of the Community 
where an international agreement provides for this. 

Customs  controls,  other  than  random  checks,  shall  be  based  on  risk  analysis  using 
electronic data processing techniques, with the purpose of identifying and evaluating 
the risks and developing the necessary measures to counter the risks, on the basis of 
criteria developed at national, Community and, where available, international level. 

Member  States,  in  co-operation  with  the  Commission,  shall  develop,  maintain  and 
employ an electronic system for the implementation of risk management, by 30 June 
2009 at the latest. 

3. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures laying down the following: 

(a) 

rules for a common risk management framework; 

(b) 

rules for establishing common criteria and priority control areas; 

(c) 

rules governing the exchange of risk information and analysis between customs 
administrations.  

EN 

41 

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Article 28 

Co-operation between authorities 

1. 

2. 

Where,  in  respect  of  the  same  goods,  controls  other  than  customs  controls  are 
performed by competent authorities other than the customs authorities, such controls 
shall  be  performed  in  close  co-operation  with  the  customs  authorities,  wherever 
possible at the same time and place (one-stop-shop). 

In  the  framework  of  the  controls  referred  to  in  this  Section,  customs  and  other 
competent  authorities  may,  where  necessary  for  the  purposes  of  minimising  risk, 
exchange data received, in the context of the entry, exit, transit, transfer and end-use 
of  goods  moved  between  the  customs  territory  of  the  Community  and  other 
territories,  and  the  presence  of  non-Community  goods,  with  each  other,  with  the 
customs authorities of other Member States and with the Commission. 

Article 29 

Post-release verification 

The customs authorities may, after releasing the goods and in order to satisfy themselves as to 
the accuracy of the particulars contained in the summary or customs declaration, inspect the 
commercial documents and data relating to the operations in respect of the goods in question 
or to subsequent commercial operations involving those goods. 

Such inspections may be carried out at the premises of the declarant or his representative, of 
any other person directly or indirectly involved in those operations in a business capacity or of 
any  other  person  in  possession  of  that  document  and  data  for  business  purposes.  Those 
authorities may also examine the goods where it is still possible for them to be presented. 

Article 30 

Exceptions 

1. 

No  customs  controls  or  formalities  shall  be  carried  out  in  respect  of  either  of  the 
following: 

(a) 

the cabin and hold baggage of persons taking an intra-Community flight; 

(b) 

the baggage of persons making an intra-Community sea crossing. 

2. 

Paragraph 1 shall apply without prejudice to either of the following: 

(a) 

(b) 

the security and safety checks carried out on baggage by the authorities of the 
Member States, port or airport authorities or carriers; 

checks linked to prohibitions or restrictions laid down by the Member States, 
provided that such prohibitions or restrictions are compatible with the Treaty. 

EN 

Section 8 

42 

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Keeping of documents and other information; fees and costs 

Article 31 

Keeping of documents and other information 

1. 

The  person  concerned  shall  keep  the  documents  and  information  referred  to  in 
Article  9(1)  for  the  purposes  of  customs  controls,  for  the  period  laid  down  in  the 
provisions in force and for at least three calendar years, irrespective of the medium 
used.  

In  the  case  of  goods  released  for  free  circulation  in  circumstances  other  than  those 
referred to in the third subparagraph, or goods declared for export, that period shall 
run from the end of the year in which the declarations for release for free circulation 
or export are accepted. 

In  the  case  of  goods  released  for  free  circulation  duty-free  or  at  a  reduced  rate  of 
import duty on account of their end-use, that period shall run from the end of the year 
in which they cease to be subject to customs supervision.  

In the case of goods placed under another customs procedure, that period shall run 
from the end of the year in which the customs procedure concerned has ended. 

Without  prejudice  to  Article  73(4),  where  a  customs  control  carried  out  by  the 
customs authorities in respect of a customs debt shows that the relevant entry in the 
accounts has to be corrected and the person concerned has been notified of this, the 
documents  shall  be  kept  for  three  years  beyond  the  time  limit  provided  for  in 
paragraph 1 of this Article.  

Where an appeal has been lodged, the documents must be kept until the procedure is 
terminated. 

Article 32 

Fees and costs 

No  fees  shall  be  charged  by  customs  authorities  for  the  performance  of  customs 
controls  or  any  other  application  of  the  customs  legislation  during  the  normal 
opening hours of their competent customs offices. 

However,  the  customs  authorities  may  charge  fees  or  recover  costs  where  specific 
services are rendered.  

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  for  the  implementation  of  the  second  subparagraph  of 
paragraph 1 and, in particular, the following: 

(a) 

attendance, where requested, by customs staff outside normal office hours or at 
premises other than customs premises; 

2. 

1. 

2. 

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43 

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(b) 

(c) 

analyses or expert reports on goods and postal fees for the return of goods to an 
applicant,  particularly  in  respect  of  decisions  taken  pursuant  to  Article  21  or 
the provision of information in accordance with Article 8(1); 

the  examination  or  sampling  of  goods  for  verification  purposes,  or  the 
destruction  of  goods,  where  costs  other  than  that  of  using  customs  staff  are 
involved; 

(d) 

exceptional  control  measures,  where  these  are  necessary  due  to  the  nature  of 
the goods or to potential risk. 

CHAPTER 3 

CURRENCY CONVERSION, TIME LIMITS AND SIMPLIFICATION 

Article 33 

Currency conversion 

1. 

Where the conversion of currency is necessary for one of the following reasons, the 
rate of exchange applicable shall be that published, or made available on the Internet, 
by the competent authorities: 

(a) 

because factors used to determine the customs value of goods are expressed in 
a  currency  other  than  that  of  the  Member  State  where  the  customs  value  is 
determined; 

(b)  because the value of the euro is required in national currencies for the purposes 
of  determining  the  tariff  classification  of  goods,  value  thresholds  and  the 
amount of import or export duties. 

The rate of exchange shall reflect, as effectively as possible, the current value of the 
converted currency in terms of the currency of the Member State. 

Where the conversion of currency is necessary for reasons other than those referred 
to in paragraph 1, the value of the euro in national currencies to be applied within the 
framework of the customs legislation shall be fixed once a year. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures for the implementation of paragraphs 1 and 2 of this Article. 

Article 34 

Time limits 

Where  a  period,  date  or  time  limit  is  laid  down  in  the  customs  legislation,  such 
period shall not be extended and such date or time limit shall not be deferred unless 
specific provision is made in the provisions concerned. 

2. 

3. 

1. 

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44 

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2. 

The rules applicable to periods, dates and time limits set out in Council Regulation 
(EEC,  Euratom)  No1182/7115  shall  apply  to  time  limits  set  within  the  customs 
legislation, except where other specific provisions apply. 

Article 35 

Simplification 

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures  laying  down  in  which  cases,  and  under  which  conditions,  the  application  of  this 
Code may be simplified.  

15 

OJ L 124, 8. 6.1971, p.1. 

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45 

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TITLE II 

FACTORS ON THE BASIS OF WHICH IMPORT OR EXPORT DUTIES AND 
OTHER MEASURES IN RESPECT OF TRADE IN GOODS ARE APPLIED 

COMMON CUSTOMS TARIFF AND TARIFF CLASSIFICATION OF GOODS 

CHAPTER 1 

Article 36 

Common Customs Tariff  

1. 

Import and export duties shall be based on the Common Customs Tariff.  

Other  measures  prescribed  by  Community  provisions  governing  specific  fields 
relating to trade in goods shall, where appropriate, be applied according to the tariff 
classification of those goods.  

2. 

The Common Customs Tariff shall comprise the following:  

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

the  Combined  Nomenclature  of  goods  as  laid  down  in  Council  Regulation 
(EEC) No 2658/8716; 

any  other  nomenclature  which  is  wholly  or  partly  based  on  the  Combined 
Nomenclature  or  which  provides  for  further  subdivisions  to  it,  and  which  is 
established by Community provisions governing specific fields with a view to 
the application of tariff measures relating to trade in goods; 

the  conventional  or  normal  autonomous  import  duties  applicable  to  goods 
covered by the Combined Nomenclature;  

the preferential tariff measures contained in agreements which the Community 
has concluded with certain countries or territories outside the customs territory 
of the Community or groups of such countries or territories;  

preferential  tariff  measures  adopted  unilaterally  by  the  Community  in  respect 
of  certain  countries  or  territories  outside  the  customs  territory  of  the 
Community or groups of such countries or territories; 

autonomous  measures  providing  for  a  reduction  in  or  exemption  from  import 
duties on certain goods;  

favourable tariff treatment specified for certain goods, by reason of their nature 
or end-use, in the framework of measures referred to under points (c) to (f) or 
(h); 

16 

OJ L 256, 7.9.1987, p.1. 

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46 

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3. 

4. 

(h)  other  tariff  measures  provided  for  by  agricultural,  or  commercial,  or  other 

Community legislation. 

Where  the  goods  concerned  fulfil  the  conditions  laid  down  in  points  (d)  to  (g)  of 
paragraph 2, the measures referred to in those provisions shall apply, at the request of 
the  declarant,  instead  of  those  provided  for  in  point  (c)  of  that  paragraph.  Such 
application may be made retrospectively, provided that the time limits and conditions 
laid down in the relevant measure or in the Code are complied with.  

Where application of the measures referred to in points (d) to (g) of paragraph 2, or 
the exemption from measures referred to in point (h) thereof, is restricted to a certain 
volume  of  imports  or  exports,  such  application  or  exemption  shall,  in  the  case  of 
tariff quotas, cease as soon as the specified volume of imports or exports is reached. 

In the case of tariff ceilings such application shall cease by virtue of a legal act of the 
Community. 

Article 37 

Tariff classification of goods  

For the application of the Common Customs Tariff, 'tariff classification' of goods shall consist 
in  the  determination  of  one  of  the  subheadings  or  further  subdivisions  of  the  Combined 
Nomenclature under which those goods are to be classified. 

For  the  application  of  non-tariff  measures,  'tariff  classification'  of  goods  shall  consist  in  the 
determination  of  one  of  the  subheadings  or  further  subdivisions  of  the  Combined 
Nomenclature, or of any other nomenclature which is established by Community provisions 
and  which  is  wholly  or  partly  based  on  the  Combined  Nomenclature  or  which  provides  for 
further subdivisions to it, under which those goods are to be classified.  

The subheading or further subdivision determined in accordance with the first or the second 
paragraph shall be used for the purpose of applying the measures attached to that subheading. 

CHAPTER 2 

ORIGIN OF GOODS 

Section 1 

Non-preferential origin 

Article 38 

Scope 

Articles 39, 40 and 41 lay down rules for the determination of the non-preferential origin of 
goods for the purposes of applying the following:  

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47 

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(a) 

(b) 

the Common Customs Tariff with the exception of the measures referred to in points 
(d) and (e) of Article 36(2); 

measures,  other  than  tariff  measures,  established  by  Community  provisions 
governing specific fields relating to trade in goods; 

(c) 

other Community measures relating to the origin of goods. 

Article 39 

Acquisition of origin 

Goods  wholly  obtained  in  a  single  country  or  territory  shall  be  regarded  as  having 
their origin in that country or territory. 

Goods the production of which involved more than one country or territory shall be 
deemed  to  originate  in  the  country  or  territory  where  they  underwent  their  last 
substantial transformation.  

Article 40 

Proof of origin 

Where an origin has been indicated in the customs declaration pursuant to customs 
legislation, the customs authorities may require the declarant to prove the origin of 
the goods. 

Where proof of origin of goods is provided pursuant to customs legislation or other 
Community legislation governing specific fields, the customs authorities may, in the 
event  of  reasonable  doubt,  require  any  additional  evidence  to  ensure  that  the 
indication of origin does comply with the rules laid down by the relevant Community 
legislation.  

A document proving origin may be issued in the Community where the exigencies of 
trade so require.  

1. 

2. 

1. 

2. 

3. 

Article 41 

Implementing measures 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures for the implementation of Articles 39 and 40. 

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Section 2 

Preferential origin 

Article 42 

Preferential origin of goods 

1. 

2. 

3 

4. 

5. 

6. 

In order to benefit from the measures referred to in points (d) or (e) of Article 36(2) 
or  from  non-tariff  preferential  measures,  goods  shall  comply  with  the  rules  on 
preferential origin referred to in paragraphs 2, 3 and 4 of this Article. 

In the case of goods benefiting from preferential measures contained in agreements 
which the Community has concluded with certain countries or territories outside the 
customs  territory  of  the  Community  or  groups  of  such  countries  or  territories,  the 
rules on preferential origin shall be laid down in those agreements. 

In  the  case  of  goods  benefiting  from  preferential  measures  adopted  unilaterally  by 
the  Community  in  respect  of  certain  countries  or  territories  outside  the  customs 
territory of the Community or groups of such countries or territories, other than those 
referred to in paragraph 5, the Commission shall, in accordance with the procedure 
referred  to  in  Article  196(2),  adopt  measures  laying  down  the  rules  on  preferential 
origin. 

In  the  case  of  goods  benefiting  from  preferential  measures  applicable  in  trade 
between the customs territory of the Community and Ceuta and Melilla, contained in 
Protocol 2 to the Act of Accession of Spain and Portugal, the Commission shall, in 
accordance  with  the  procedure  referred  to  in  Article  196(2),  adopt  measures  laying 
down the rules on preferential origin. 

In the case of goods benefiting from preferential measures contained in preferential 
arrangements  in  favour  of  the  overseas  countries  and  territories  associated  with  the 
Community,  the  rules  on  preferential  origin  shall  be  adopted  in  accordance  with 
Article 187 of the Treaty. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures necessary for the implementation of the rules referred to in 
paragraphs 2 to 5 of this Article. 

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CHAPTER 3 

VALUE OF GOODS FOR CUSTOMS PURPOSES 

Article 43 

Scope 

The customs value of goods, for the purposes of applying the Common Customs Tariff and 
non-tariff measures laid down by Community provisions governing specific fields relating to 
trade in goods, shall be determined in accordance with Articles 44 to 47.  

Article 44 

Transaction value 

1. 

The customs value of imported goods shall be the price actually paid or payable for 
the goods when sold for export to the customs territory of the Community, adjusted, 
where  necessary,  in  accordance  with  measures  adopted  pursuant  to  paragraph  4, 
hereinafter 'transaction value'. 

The  price  actually  paid  or  payable  is  the total  payment  made  or  to  be  made  by  the 
buyer  to  or  for  the  benefit  of  the  seller  for  the  imported  goods  and  includes  all 
payments  made  or  to  be  made  as  a  condition  of  sale  of  the  imported  goods  by  the 
buyer  to  the  seller,  or  by  the  buyer  to  a  third  party  to  satisfy  an  obligation  of  the 
seller.  The  payment  need  not  necessarily  take  the  form  of  a  transfer  of  money. 
Payment may be made by way of letters of credit or negotiable instrument and may 
be made directly or indirectly.  

2. 

The transaction value shall apply provided that the following conditions are satisfied: 

(a) 

there  are  no  restrictions  as  to  the  disposal  or  use  of  the  goods  by  the  buyer, 
other than the following: 

(i) 

restrictions imposed or required by a law or by the public authorities in 
the Community;  

(ii) 

limitations of the geographical area in which the goods may be resold; 

(iii)  restrictions which do not substantially affect the value of the goods; 

(b) 

(c) 

the sale or price is not subject to some condition or consideration for which a 
value cannot be determined with respect to the goods being valued; 

no part of the proceeds of any subsequent resale, disposal or use of the goods 
by  the  buyer  will  accrue  directly  or  indirectly  to  the  seller,  unless  an 
appropriate  adjustment  can  be  made  in  accordance  with  measures  adopted 
pursuant to paragraph 4; 

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3. 

4. 

1. 

(d) 

the buyer and seller are not related, or, where the buyer and seller are related, 
the transaction value is acceptable for customs purposes under paragraph 3. 

For the purposes of point (d) of paragraph 2, the fact that the buyer and the seller are 
related shall not in itself be sufficient grounds for regarding the transaction value as 
unacceptable.  The  circumstances  surrounding  the  sale  shall,  where  necessary,  be 
examined and the transaction value shall be accepted  provided that the relationship 
did not influence the price. 

If,  in  the  light  of  information  provided  by  the  declarant  or  otherwise,  the  customs 
authorities  have  grounds  for  considering  that  the  relationship  influenced  the  price, 
they  shall  notify  the  declarant  of  their  grounds  and  he  shall  be  given  a  reasonable 
opportunity to respond. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  the  elements  which,  for  the  purposes  of 
determining the customs value, must be added to the price actually paid or payable, 
or which may be excluded. 

Article 45 

Secondary methods of customs valuation 

Where  the  customs  value  cannot  be  determined  under  Article  44,  it  shall  be 
determined by proceeding sequentially from point (a) to point (d) of paragraph 2 of 
this Article, until the first point under which the customs value can be determined.  

The  order  of  application  of  points  (c)  and  (d)  shall  be  reversed  if  the  declarant  so 
requests. 

2. 

The customs value, pursuant to paragraph 1, shall be: 

(a) 

(b) 

(c) 

the transaction value of identical goods sold for export to the customs territory 
of the Community and exported at or about the same time as the goods being 
valued;  

the transaction value of similar goods sold for export to the customs territory of 
the  Community  and  exported  at  or  about  the  same  time  as  the  goods  being 
valued;  

the value based on the unit price at which the imported goods, or identical or 
similar imported goods, are sold within the customs territory of the Community 
in the greatest aggregate quantity to persons not related to the sellers;  

(d) 

the computed value, consisting of the sum of the following:  

(i) 

the  cost  or  value  of  materials  and  manufacture  or  other  processing 
employed in producing the imported goods; 

(ii) 

an amount for profit and general expenses equal to that usually reflected 
in  sales  of  goods  of  the  same  class  or  kind  as  the  goods  being  valued 

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which are made by producers in the country of exportation for export to 
the customs territory of the Community;  

(iii) 

the  cost  or  value  of  transport  of  the  imported  goods  to  the  place  of 
introduction into the customs territory of the Community, of loading and 
handling  charges  associated  with  that  transport  and  of  insurance  of  the 
goods. 

3. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  any  further  conditions  and  rules  for  the 
application of paragraph 2 of this Article. 

Article 46 

Fall back method 

Where the customs value of imported goods cannot be determined under Articles 44 or 45, it 
shall be determined, on the basis of data available in the customs territory of the Community, 
using reasonable means consistent with the principles and general provisions of the following:  

(a) 

(b) 

(c) 

the agreement on implementation of Article VII of the General Agreement on Tariffs 
and Trade;  

Article VII of the General Agreement on Tariffs and Trade;  

this Chapter. 

However,  none  of  the  following  may  be  used  to  determine  a  customs  value  under  the  first 
paragraph:  

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

the selling price in the customs territory of the Community of goods produced in that 
territory;  

a  system  which  provides  for  the  acceptance  for  customs  purposes  of  the  higher  of 
two alternative values; 

the price of goods on the domestic market of the country of exportation;  

the cost of production, other than computed values which have been determined for 
identical or similar goods in accordance with point (d) of Article 45(2); 

prices  for  export  to  a  country  not  forming  part  of  the  customs  territory  of  the 
Community; 

minimum customs values;  

arbitrary or fictitious values.  

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Article 47 

Implementing measures 

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down the rules for the determination of the customs value in specific cases 
and  with  regard  to  goods  for  which  a  customs  debt  is  incurred  after  the  use  of  a  special 
procedure. 

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TITLE III 

CUSTOMS DEBT AND GUARANTEES 

CHAPTER 1 

INCURRENCE OF A CUSTOMS DEBT 

Section 1 

General provisions 

Article 48 

Customs debt 

Duty  on  import  or  export  shall  be  payable  in  respect  of  specific  goods  under  the  Common 
Customs Tariff, and the amount payable shall constitute the customs debt. 

Section 2 

Customs debt on importation 

Article 49 

1. 

2. 

3. 

Release for free circulation, temporary admission 

A  customs  debt  on  importation  shall  be  incurred  through  the  placing  of  non-
Community goods under either of the following procedures:  

(a) 

release for free circulation; 

(b) 

temporary admission with partial relief from import duties. 

A  customs  debt  shall  be  incurred  at  the  time  of  acceptance  of  the  customs 
declaration. 

The declarant shall be the debtor. In the event of indirect representation, the person 
on whose behalf the customs declaration is made shall also be a debtor.  

Where a customs declaration in respect of one of the procedures referred to in paragraph 1 is 
drawn up on the basis of information which leads to all or part of the import duties not being 
collected, the person who provided the information required for the declaration shall also be a 
debtor, if he knew, or ought reasonably to have known, that such information was false. 

EN 

54 

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Article 50 

Special provisions relating to non-originating goods  

1. 

2. 

3. 

Where  a  prohibition  of  drawback  of,  or  exemption  from,  import  duties  applies  to 
non-originating  goods  used  in  the  manufacture  of  products,  for  which  a  proof  of 
origin is issued or made out in the framework of a preferential arrangement between 
the  Community  and  certain  countries  or  territories  outside  the  customs  territory  of 
the  Community  or  groups  of  such  countries  or  territories,  a  customs  debt  on 
importation  shall  be  incurred  in  respect  of  these  products,  through  either  of  the 
following: 

(a) 

(b) 

the acceptance of the re-export notification relating to the products in question, 
obtained under inward processing; 

the acceptance of the declaration relating to the goods placed under the inward 
processing procedure in the case of prior exportation of the processed products 
in question. 

Where a customs debt is incurred pursuant to point (a) of paragraph 1, the amount of 
the import duties shall be determined under the same conditions as in the case of a 
customs debt resulting from the acceptance, on the same date, of the declaration for 
release for free circulation of the non-originating goods used in the manufacture of 
the products in question for the purpose of ending the inward processing procedure. 

Article 49 (2) and (3) shall apply. However, in the case of non-Community goods as 
referred  to  in  Article  189,  the  debtor  shall  be  the  person  who  lodges  the  re-export 
notification and, in the event of indirect representation, the person on whose behalf 
the notification is lodged. 

Article 51 

Customs debt incurred through non-compliance 

1. 

In  cases  other  than  those  referred  to  in  Articles  49  and  50,  a  customs  debt  on 
importation shall be incurred through non–compliance with either of the following: 

(a) 

one  of  the  obligations  laid  down  in  customs  legislation  concerning  the 
introduction  of  non-Community  goods  into  the  customs  territory  of  the 
Community, or for the movement, processing, storage, use or disposal of goods 
within that territory; 

(b) 

a  condition  governing  the  placing  of  non-Community  goods  under  a  customs 
procedure  or  the  granting,  by  virtue  of  the  end-use  of  the  goods,  of  duty 
exemption or a reduced rate of import duty.  

2. 

The time at which the customs debt is incurred shall be either of the following: 

(a) 

the moment when the obligation the non-fulfilment of which gives rise to the 
customs debt is not met or ceases to be met; 

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55 

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(b) 

the  moment  when  the  goods  are  placed  under  the  customs  procedure  or 
declared for that purpose where it is established subsequently that a condition 
governing  the  placing  of  the  goods  under  that  procedure  or  the  granting  of  a 
duty exemption or a reduced rate of import duty by virtue of the end-use of the 
goods was not in fact fulfilled. 

3. 

In  cases  referred  to  under  point  (a)  of  paragraph  1,  the  debtor  shall  be  any  of  the 
following: 

(a) 

any person who was required to fulfil the obligations concerned; 

(b) 

any  person  who  was  aware  or  should  reasonably  have  been  aware  that  an 
obligation  under  the  customs  legislation  was  not  fulfilled  and  who  acted  on 
behalf  of  the  person  who  was  obliged  to  fulfil  the  obligation,  or  who 
participated in the act which led to the non-fulfilment of the obligation;  

(c) 

any person who acquired or held the goods in question and who was aware or 
should  reasonably  have  been  aware  at  the  time  of  acquiring  or  receiving  the 
goods that an obligation under the customs legislation was not fulfilled.  

In  cases  referred  to  under  point  (b)  of  paragraph  1,  the  debtor  shall  be  the  person  who  is 
required to comply with the conditions governing the placing of the  goods under a customs 
procedure  or  declaring  the  goods  concerned  under  that  procedure  or  the  granting  of  a  duty 
exemption or reduced rate of duty by virtue of the end-use of the goods. 

Where a customs declaration in respect of one of the procedures referred to in paragraph 1 is 
drawn up, or any information required under the customs legislation relating to the conditions 
governing  the  placing  of  the  goods  under  a  customs  procedure  is  given  to  the  customs 
authorities, which leads to all or part of the import duties not being collected, the person who 
provided  the  information  required  to  draw  up  the  declaration  and  who  knew,  or  who  ought 
reasonably to have known, that such information was false shall also be a debtor. 

Article 52 

Deduction of duties already paid 

1. 

2. 

Where  a  customs  debt  is  incurred,  pursuant  to  Article  51(1),  in  respect  of  goods 
released for free circulation at a reduced rate of import duty on account of their end-
use,  the  amount  paid  when  the  goods  were  released  for  free  circulation  shall  be 
deducted from the amount of the customs debt. 

The first subparagraph shall apply mutatis mutandis where a customs debt is incurred 
in respect of scrap and waste resulting from the destruction of such goods. 

Where  a  customs  debt  is  incurred,  pursuant  to  Article  51(1),  in  respect  of  goods 
placed under temporary admission with partial relief from import duties, the amount 
paid under partial relief shall be deducted from the amount of the customs debt. 

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56 

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Section 3 

Customs debt on exportation 

Article 53 

Export declaration 

1. 

2. 

3. 

A customs debt on exportation shall be incurred through the placing of goods liable 
to export duties under the export procedure.  

The  customs  debt  shall  be  incurred  at  the  time  of  acceptance  of  the  customs 
declaration.  

The declarant shall be the debtor. In the event of indirect representation, the person 
on whose behalf the declaration is made shall also be a debtor. 

Where a customs declaration is drawn up on the basis of information which leads to 
all  or  part  of  the  export  duties  not  being  collected,  the  person  who  provided  the 
information  required  for  the  declaration  and  who  knew,  or  who  should  reasonably 
have known, that such information was false shall also be a debtor.  

Article 54 

Customs debt incurred through non-compliance 

1. 

In  cases  other  than  those  referred  to  in  Article  53,  and  if  the  goods  are  liable  to 
export  duties,  a  customs  debt  on  exportation  shall  be  incurred  through  non-
compliance with either of the following: 

(a) 

(b) 

one of the obligations laid down in customs legislation for the exit, movement 
or disposal of the goods; 

the  conditions  under  which  the  goods  were  allowed  to  leave  the  customs 
territory of the Community with total or partial relief from export duties. 

2. 

The time at which the customs debt is incurred shall be one of the following: 

(a) 

(b) 

(c) 

the  moment  at  which  the  goods  actually  leave  the  customs  territory  of  the 
Community without a customs declaration; 

the  moment  at  which  the  goods  reach  a  destination  other  than  that  for  which 
they were allowed to leave the customs territory of the Community with total 
or partial relief from export duties; 

should the customs authorities be unable to determine the moment referred in 
point (b), the expiry of the time limit set for the production of evidence that the 
conditions entitling the goods to such relief have been fulfilled. 

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3. 

Where  goods  liable  to  export  duties  leave  the  customs  territory  of  the  Community 
without a customs declaration, the debtor shall be any of the following: 

(a) 

any person who was required to fulfil the obligation concerned; 

(b) 

any  person  who  participated  in  the  act  which  led  to  the  non-fulfilment  of  the 
obligation  and  who  was  aware  or  should  reasonably  have  been  aware  that  a 
customs declaration had not been lodged but should have been. 

4. 

Where  a  customs  debt  arises  as  a  consequence  of  failure  to  comply  with  the 
conditions under which the goods were allowed to leave the customs territory of the 
Community with total or partial relief from export duties, the debtor shall be any of 
the following: 

(a) 

the declarant; 

(b) 

in  the  event  of  indirect  representation,  the  person  on  whose  behalf  the 
declaration is made. 

Provisions common to customs debts incurred on importation and exportation 

Section 4 

Article 55 

Prohibitions and restrictions 

The customs debt on importation or exportation shall be incurred even if it relates to goods 
which  are  subject  to  measures  of  prohibition  or  restriction  on  importation  or  exportation  of 
any kind. 

However,  no  customs  debt  shall  be  incurred  on  the  unlawful  introduction  into  the  customs 
territory  of  the  Community  of  counterfeit  currency  or  of  narcotic  drugs  and  psychotropic 
substances which do not enter into the economic circuit strictly supervised by the competent 
authorities with a view to their use for medical and scientific purposes.  

For  the  purposes  of  penalties  as  applicable  to  customs  offences,  the  customs  debt  shall 
nevertheless  be  deemed  to  have  been  incurred  where,  under  the  law  of  a  Member  State, 
customs duties or the existence of a customs debt provide the basis for determining penalties. 

Article 56 

Several debtors 

Where several persons are liable for payment of one customs debt, they shall each be liable 
for the totality of the debt.  

Where  one  or  more  of  those  persons  have  deliberately  infringed  the  customs  legislation, 
priority shall be given to recovery of the customs debt from those persons. 

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1. 

2. 

3. 

1. 

2. 

3. 

Article 57 

General rules for calculation of the amount of duty 

The  amount  of  the  import  or  export  duty shall  be  determined  on  the  basis  of  those 
rules  for  calculation  of  duty  which  were  applicable  to  the  goods  concerned  at  the 
time at which the customs debt in respect of them was incurred.  

Where it is not possible to determine precisely the time at which the customs debt is 
incurred, that time shall be deemed to be the time at which the customs authorities 
conclude that the goods are in a situation in which a customs debt has been incurred.  

However, where the information available to the customs authorities enables them to 
establish  that  the  customs  debt  had  been  incurred  prior  to  the  time  at  which  they 
reached that conclusion, the customs debt shall be deemed to have been incurred at 
the earliest time that such a situation can be established.  

Where customs legislation provides for a favourable tariff treatment of goods, relief 
or total or partial exemption from import or export duties, pursuant to points (d) to 
(g) of Article 36(2), Articles 136 to 141, 178 and 181 to 184, such favourable tariff 
treatment,  relief  or  exemption  shall  also  apply  in  cases  where  a  customs  debt  is 
incurred pursuant to Articles 51 or 54, on condition that the behaviour of the person 
concerned involves no fraudulent dealing. 

Article 58 

Special rules for calculation of the amount of duty 

Where  costs  for  storage  or  usual  forms  of  handling  have  been  incurred  within  the 
customs  territory  of  the  Community  in  respect  of  goods  placed  under  a  customs 
procedure, such costs or the increase in value shall not be taken into account for the 
calculation  of  the  amount  of  import  duty  where  satisfactory  proof  of  these  costs  is 
provided by the declarant.  

However, the customs value, nature and origin of non-Community goods used in the 
operations  shall  be  taken  into  account  for  the  calculation  of  the  amount  of  import 
duties. 

Where the tariff classification of goods placed under a customs procedure changes as 
a  result  of  usual  forms  of  handling  within the  customs territory of the Community, 
the  original  tariff  classification  for  the  goods  placed  under  the  procedure  shall  be 
applied at the request of the declarant. 

Where a customs debt is incurred for processed products resulting from the inward 
processing procedure, the amount of such debt shall, at the request of the declarant, 
be  determined  on  the  basis  of  the  tariff  classification,  customs  value,  nature  and 
origin  of  the  goods  placed  under  the  inward  processing  procedure  at  the  time  of 
acceptance of the declaration relating to these goods.  

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Article 59 

Implementing measures 

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down the following: 

(a) 

(b) 

(c) 

1. 

2. 

3. 

4. 

the  rules  for  the  calculation  of  the  amount  of  the  import  duty  or  export  duty 
applicable to goods; 

further special rules for specific procedures; 

derogations from Articles 57 and 58. 

Article 60 

Place where the customs debt is incurred 

A customs debt shall be incurred at the place where the customs declaration referred 
to in Articles 49 and 53 is lodged or, pursuant to Article 128(3), is deemed to have 
been lodged. 

In all other cases, the place where a customs debt is incurred shall be the place where 
the events from which it arises occur. 

If it is not possible to determine that place, the customs debt shall be incurred 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  second  or  third 
subparagraphs  of  paragraph  1,  within  a  specified  period  of  time,  the  customs  debt 
shall be incurred at the place where the goods were either placed under the procedure 
concerned or were introduced into the customs territory of the Community under that 
procedure. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  the  period  of  time  referred  to  in  the  first 
subparagraph of this paragraph. 

Where the information available to the customs authorities enables them to establish 
that  the  customs  debt  may  have  been  incurred  in  several  places,  the  customs  debt 
shall be deemed to have been incurred at the place where it was first incurred.  

If a customs authority establishes that a customs debt has been incurred under point 
(a)  of  Article  51(1)  in  another  Member  State  and  the  amount  of  that  debt  is  lower 
than EUR 100 000, the debt shall be deemed to have been incurred in the Member 
State where the finding was made. 

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CHAPTER 2 

GUARANTEE FOR A POTENTIAL OR EXISTING CUSTOMS DEBT 

Article 61 

General provisions 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

This  Chapter  shall  apply  to  guarantees  both  for  customs  debts  which  have  been 
incurred and for those which may be incurred, unless it is otherwise specified. 

Customs authorities may require the debtor to provide a guarantee in order to ensure 
payment of a customs debt and of other charges, in particular VAT and excise duty 
as provided for under VAT and excise provisions in force. 

Where the customs authorities require a guarantee to be provided, it shall be required 
from the debtor or the person who may become liable for that debt. 

The customs authorities shall require only one guarantee to be provided in respect of 
specific goods or a specific declaration.  

The guarantee provided for a specific declaration shall apply to the customs debt in 
respect of  all  goods covered  by or  released against that declaration, whether  or not 
that declaration is correct.  

The customs authorities shall permit the guarantee to be provided by a person other 
than the person from whom it is required. 

At  the  request  of  the  person  referred  to  in  paragraphs  3  or  5  of  this  Article,  the 
customs  authorities  may,  in  accordance  with  Article  67(1)  and  (2),  authorize  the 
provision of a comprehensive guarantee to cover the customs debt in respect of two 
or more operations, declarations or procedures. 

No  guarantee  shall  be  required  from  States,  regional  and  local  government 
authorities  or  other  bodies  governed  by  public  law,  in  respect  of  the  activities  in 
which they engage as public authorities. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  other  cases  in  which  no  guarantee  is  to  be 
required or a reduced guarantee is to be required. 

The  customs  authorities  may  waive  the  requirement  for  provision  of  a  guarantee 
where  the  amount  to  be  secured  does  not  exceed  the  statistical  threshold  for 
declarations laid down in accordance with Article 12 of Council Regulation (EC) No 
1172/9517. 

17 

OJ L 118, 25. 5.1995, p.10. 

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9. 

A  guarantee  accepted  or  authorized  by  the  customs  authorities  shall  be  valid 
throughout the customs territory of the Community, for the purposes for which it is 
given. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  exceptions  to  the  first  subparagraph  of  this 
paragraph. 

Article 62 

Compulsory guarantee 

1. 

2. 

3. 

Where  it  is  compulsory  for  a  guarantee  to  be  provided,  and  subject  to  the  rules 
adopted pursuant to paragraph 3, the customs authorities shall fix the amount of such 
guarantee  at  a  level  equal  to  the  precise  amount  of  the  customs  debt  in  question 
where that amount can be established with certainty at the time when the guarantee is 
required. 

Where  it  is  not  possible  to  establish  the  precise  amount  of  the  customs  debt,  the 
amount of the guarantee shall be fixed as the maximum amount, as estimated by the 
customs authorities, of the customs debt which has been or may be incurred. 

Without  prejudice  to  Article  67,  where  a  comprehensive  guarantee  is  provided  for 
customs debts which vary in amount over time, the amount of such guarantee shall 
be set at a level enabling the customs debts in question to be covered at all times. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures for the implementation of paragraph 1 of this Article. 

Article 63 

Optional guarantee 

Where the provision of a guarantee is optional, such guarantee shall in any case be required 
by the customs authorities if they consider that a customs debt is not certain to be paid within 
the prescribed  period. Its amount  shall be fixed by  those authorities  so  as not  to  exceed the 
level referred to in Article 62. 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down when a guarantee is optional. 

Article 64 

Provision of a guarantee 

1. 

A guarantee may be provided in one of the following ways 

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(a) 

by a cash deposit or by any other means of payment recognized by the customs 
authorities  as  being  equivalent  to  a  cash  deposit,  made  in  euro  or  in  the 
currency of the Member State in which the guarantee is required; 

(b)  by an undertaking given by a guarantor; 

(c) 

by  another  form  of  guarantee  which  provides  equivalent  assurance  that  the 
customs debt will be paid. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures specifying the forms of guarantee referred in point (c) of the 
first subparagraph of this paragraph. 

2. 

A guarantee in the form of a cash deposit or payment  deemed equivalent to a cash 
deposit shall be given in accordance with the provisions in force in the Member State 
in which the guarantee is required. 

Article 65 

Choice of guarantee 

The person required to provide a guarantee may choose between the types of guarantee laid 
down in Article 64(1). 

However, the customs authorities may refuse to accept the type of guarantee chosen where it 
is incompatible with the proper functioning of the customs procedure concerned.  

The  customs  authorities  may  require  that  the  type  of  guarantee  chosen  be  maintained  for  a 
specific period. 

Article 66 

Guarantor 

1. 

2. 

3. 

The  guarantor  referred  to  in  point  (b)  of  Article  64(1)  must  be  a  third  person 
established  in  the  customs  territory  of  the  Community.  The  guarantor  must  be 
approved by the customs authorities requiring the guarantee, unless the guarantor is a 
bank or other officially recognized financial institution accredited in the Community. 

The  guarantor  shall  undertake  in  writing  to  pay  the  secured  amount  of  a  customs 
debt. 

The undertaking shall also cover, within the limits of the secured amount, amounts of 
import or export duties payable following post-release verification. 

The  customs  authorities  may  refuse  to  approve  the  guarantor  or  type  of  guarantee 
proposed where either do not appear certain to ensure payment of the customs debt 
within the prescribed period. 

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Article 67 

Comprehensive guarantee 

1. 

The  authorization  referred  to  in  Article 61(6)  shall  be  granted  only  to  persons  who 
satisfy the following conditions: 

(a) 

they are established in the Community; 

(b) 

(c) 

they  have  not  committed  serious  or  repeated  offences  against  customs  or  tax 
law;  

they are regular users of the procedures involved or are known to the customs 
authorities  to  have  the  capacity  to  fulfil  their  obligation  in  relation  to  these 
procedures. 

Where a comprehensive guarantee is to be provided for customs debts which may be 
incurred, an authorized economic operator may use a comprehensive guarantee with 
a  reduced  amount  or  have  a  guarantee  waiver,  in  accordance  with  Article  61(7), 
provided that at least the following criteria are fulfilled: 

(a) 

the correct use of the customs procedure concerned during a given period; 

(b) 

co-operation with the customs authorities;  

(c) 

in respect of the guarantee waiver, a good financial standing which is sufficient 
to fulfil the commitments of that person. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures governing the granting of authorizations under paragraphs 1 
and 2 of this Article. 

Article 68 

Additional provisions relating to the use of guarantees  

In  cases  where  a  customs  debt  may  be  incurred  in  the  framework  of  special 
procedures, paragraphs 2, 3 and 4 shall apply. 

The guarantee waiver authorized in accordance with Article 67(2) shall not apply to 
goods which are considered to present increased risks. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  for  the  implementation  of  the  first  subparagraph  of  this 
paragraph. 

As  an  exceptional  measure  in  special  circumstances,  the  Commission  may,  in 
accordance  with  the  procedure  referred  to  in  Article  196(2),  adopt  measures 
temporarily prohibiting the use of a comprehensive guarantee with a reduced amount 
referred to in Article 67(2). 

2. 

3. 

1. 

2. 

3. 

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4. 

In respect of goods which have been identified as being subject to large-scale fraud 
while  under  a  comprehensive  guarantee,  the  Commission  may,  in  accordance  with 
the  procedure  referred  to  in  Article  196(2),  adopt  measures  temporarily  prohibiting 
the use of a comprehensive guarantee. 

Article 69 

Additional or replacement guarantee 

Where the customs authorities establish that the guarantee provided does not ensure, or is no 
longer  certain  or  sufficient  to  ensure,  payment  of  the  customs  debt  within  the  prescribed 
period, they shall require any of the persons referred to in Article 61(3), either to provide an 
additional guarantee or to replace the original guarantee with a new guarantee, according to 
his choice. 

Article 70 

Release of the guarantee 

1. 

2. 

3. 

The  customs  authorities  shall  release  the  guarantee  when  the  customs  debt  is 
extinguished or can no longer arise. 

Where the customs debt has been extinguished in part, or may arise only in respect of 
part,  of  the  amount  which  has  been  secured,  a  corresponding  part  of  the  guarantee 
shall  be  released  accordingly  at  the  request  of  the  person  concerned,  unless  the 
amount involved does not justify such action. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures for the implementation of paragraphs 1 and 2 of this Article. 

CHAPTER 3 

RECOVERY AND PAYMENT OF DUTY AND REPAYMENT AND REMISSION OF 
DUTY 

Section 1 

Determination, notification to the debtor and entry in the accounts of the amount of 
duty 

Article 71 

Determination of the amount of duty 

The amount of duty payable shall be determined by the customs authorities responsible for the 
territory  in  which  the  customs  debt  is  incurred,  or  is  deemed  to  have  been  incurred  in 
accordance with Article 60, as soon as they have the necessary information. 

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Article 72 

Notification of the customs debt 

1. 

The decision determining the amount of duty payable shall be notified to the debtor 
in the form prescribed by national law in the territory in which the debt was incurred. 

The  notification  referred  to  in  the  first  subparagraph  shall  not  be  made  in  the 
following situations: 

(a)  where,  pending  a  final  determination  of  the  amount  of  duty,  a  provisional 
commercial policy measure taking the form of a duty has been imposed; 

(b)  where  the  amount  of  duty  payable  exceeds  that  determined  on  the  basis  of  a 

decision made in accordance with Article 21; 

(c)  where  the  original  decision  not  to  notify  the  amount  of  duty  or  to  notify  the 
amount of duty at a figure less than the amount payable was taken on the basis 
of general provisions invalidated at a later date by a court decision; 

(d) 

in  cases  where  the  customs  authorities  are  exempted  from  notification  of 
amounts of duty. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  for  the  implementation  of  point  (d)  of  the  second 
subparagraph of this paragraph. 

Where  the  amount  of  duty  payable  is  equal  to  the  amount  entered  in  the  customs 
declaration, the debtor need not be notified of the decision referred to in paragraph 1. 

In such cases, release of the goods by the customs authorities shall be equivalent to a 
decision notifying the debtor of the amount of duty payable. 

Where  paragraph  2  of  this  Article  does  not  apply,  the  decision  determining  the 
amount  of  duty  payable  shall  be  notified  to  the  debtor  within  fourteen  days  of  the 
date  on  which  the  customs  authorities  are  in  a  position  to  take  that  decision  in 
accordance with Article 17(4). 

Article 73 

Time limit for notification of a customs debt 

Notification of a decision determining the amount of duty may not be issued to the 
debtor after the expiry of a period of three years from the date on which the customs 
debt was incurred.  

Where the customs debt is the result of an act which, at the time it was committed, 
was liable to give rise to criminal court proceedings, the three year period laid down 
in paragraph 1 shall be extended to a period of ten years.  

2. 

3. 

1. 

2. 

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3. 

4. 

Where an appeal is lodged under Article 24, the periods laid down in paragraphs 1 
and 2 of this Article shall be suspended, for the duration of the appeal proceedings, 
from the date on which the appeal is lodged. 

Where liability for a customs debt is reinstated pursuant to Article 84(3) the periods 
laid down in paragraphs 1 and 2 of this Article shall be considered as suspended from 
the  date  on  which  the  repayment  or  remission  application  was  submitted  in 
accordance with Article 90, until a decision on the repayment or remission is taken. 

Article 74 

Entry in the accounts  

1. 

The  customs  authorities  referred  to  in  Article  71  shall  enter  the  amount  of  duty 
payable in their accounts.  

2. 

1. 

2. 

The first subparagraph shall not apply in cases referred to in the second subparagraph 
of Article 72(1). 

The  customs  authorities  need  not  enter  in  the  accounts  amounts  of  duty  which, 
pursuant to Article 73, could no longer be notified to the debtor.  

The  Member  States  shall  determine  the  practical  procedures  for  the  entry  in  the 
accounts of the amounts of duty. Those procedures may differ according to whether 
or  not,  in  view  of  the  circumstances  in  which  the  customs  debt  was  incurred,  the 
customs authorities are satisfied that those amounts will be paid. 

Article 75 

Time of entry in the accounts 

Where a customs debt is incurred as a result of the acceptance of the declaration of 
goods  for  a  customs  procedure,  other  than  temporary  admission  with  partial  relief 
from  import  duties,  or  of  any  other  act  having  the  same  legal  effect  as  such 
acceptance,  the  customs  authorities  shall  enter  the  amount  of  duty  payable  in  the 
accounts within fourteen days of the release of the goods.  

However,  provided  that  payment  has  been  guaranteed,  the  total  amount  of  duty 
relating to all the goods released to one and the same person during a period fixed by 
the customs authorities, which may not exceed 31 days, may be covered by a single 
entry in the accounts at the end of that period. Such entry in the accounts shall take 
place within five days of the expiry of the period concerned. 

Where goods may be released subject to certain conditions which govern either the 
determination of the amount of duty payable or its collection, entry in the accounts 
shall take place within fourteen days of the day on which the amount of duty payable 
is determined or the obligation to pay that duty is fixed. 

However, where the customs debt relates to a provisional commercial policy measure 
taking the form of a duty, the amount of duty payable shall be entered in the accounts 

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within two months of the date of publication in the Official Journal of the European 
Union of the Regulation establishing the definitive commercial policy measure. 

Where a customs debt is incurred in circumstances not covered by paragraph 1, the 
amount of duty payable shall be entered in the accounts within fourteen days of the 
date  on  which  the  customs  authorities  are  in  a  position  to  calculate  the  amount  of 
duty in question and determine the debtor. 

Paragraph  3  shall  apply  mutatis  mutandis  with  regard  to  the  amount  of  duty  to  be 
recovered or which remains to be recovered where the amount of duty payable has 
not  been  entered  in  the  accounts  in  accordance  with  paragraphs  1,  2  and  3,  or  has 
been  determined  and  entered  in  the  accounts  at  a  level  lower  than  the  amount 
payable. 

The time limits for entry in the accounts laid down in paragraphs 1, 2 and 3 shall not 
apply in unforeseeable circumstances or in cases of force majeure. 

3. 

4. 

5. 

Article 76 

Implementing measures 

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down rules for entry in the accounts. 

Section 2 

Time limit and procedures for payment of duty 

Article 77 

General time limits for payment, supervision of payment 

1. 

Amounts of duty notified in accordance with Article 72 shall be paid by the debtor 
within the period prescribed by the customs authorities. 

Without  prejudice  to  Article  25(2),  that  period  shall  not  exceed  ten  days  following 
notification to the debtor of the amount of duty payable. In the case of aggregation of 
entries in the accounts under the conditions laid down in the second subparagraph of 
Article 75(1), it shall be so fixed as not to enable the debtor to obtain a longer period 
for payment than if he had been granted deferred payment in accordance with Article 
79. 

An extension of that period shall be granted automatically where it is established that 
the  person  concerned  received  the  notification  too  late  to  enable  him  to  make 
payment within the period prescribed. 

Extension of that period may also be granted by the customs authorities at the request 
of the debtor where the amount of duty payable has been determined in the course of 
post-release  verification  as  referred  to  in  Article  29.  Without  prejudice  to  Article 

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82(1), such extensions shall not exceed the time necessary for the debtor to take the 
appropriate steps to discharge his obligation. 

If the debtor is entitled to any of the payment facilities laid down in Articles 79 to 82, 
payment  shall  be  made  within  the  period  or  periods  specified  in  relation  to  those 
facilities. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  the  conditions  for  the  suspension  of  the  time 
limit for payment of debt in the following situations: 

(a)  where an application for remission of duty is made in accordance with Article 

90; 

(b)  where goods are to be confiscated, destroyed or abandoned to the State;  

(c)  where the customs debt was incurred pursuant to Article 51 and there is more 

than one debtor. 

Article 78 

Payment 

Payment shall be made in cash or by any other means with similar discharging effect, 
including by adjustment of credit balance as agreed with the customs authorities. 

Payment may be made by a third person instead of the debtor. 

2. 

3. 

1. 

2. 

Article 79 

Deferment of payment 

Without  prejudice  to  Article  85,  the  customs  authorities  shall,  at  the  request  of  the  person 
concerned  and  upon  provision  of  a  guarantee,  permit  deferment  of  payment  of  the  duty 
payable in any of the following ways: 

(a) 

(b) 

(c) 

separately  in  respect  of  each  amount  of  duty  entered  in  the  accounts  in  accordance 
with the first subparagraph of Article 75(1), or Article 75(4); 

globally in respect of all amounts of duty entered in the accounts in accordance with 
the  first  subparagraph  of  Article  75(1)  during  a  period  fixed  by  the  customs 
authorities and not exceeding 31 days;  

globally in respect of all amounts of duty forming a single entry in accordance with 
the second subparagraph of Article 75(1). 

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Article 80 

Time limits for deferred payment 

1. 

2. 

3. 

4. 

5. 

6. 

The period for which payment is deferred under Article 79 shall be 30 days. It shall 
be calculated as set out in paragraphs 2, 3 and 4 of this Article. 

Where  payment  is  deferred  in  accordance  with  point  (a)  of  Article  79,  the  period 
shall begin on the day following that on which the amount of duty payable is notified 
to the debtor.  

Where  payment  is  deferred  in  accordance  with  point  (b)  of  Article  79,  the  period 
shall begin on the day following that on which the aggregation period ends. It shall 
be reduced by the number of days corresponding to half the number of days covered 
by the aggregation period. 

Where  payment  is  deferred  in  accordance  with  point  (c)  of  Article  79,  the  period 
shall begin on the day following the end of the period fixed for release of the goods 
in  question.  It  shall  be  reduced  by  the  number  of  days  corresponding  to  half  the 
number of days covered by the period concerned. 

Where the number of days in the periods referred to in paragraphs 3 and 4 is an odd 
number, the number of days to be deducted from the 30-day period pursuant to those 
paragraphs shall be equal to half the next lowest even number. 

Where  the  periods  referred  to  in  paragraphs  3  and  4  are  calendar  weeks,  Member 
States  may  provide  that  the  amount  of  duty  in  respect  of  which  payment  has  been 
deferred is to be paid on the Friday of the fourth week following the calendar week 
in question. 

If these periods are calendar months, Member States may provide that the amount of 
duty in respect of which payment has been deferred is to be paid by the sixteenth day 
of the month following the calendar month in question. 

Article 81 

Implementing measures 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures  laying  down  the  rules  for  deferment  of  payment  in  cases  where  the  customs 
declaration is simplified in accordance with Articles 125 or 127. 

Article 82 

Other payment facilities 

1. 

The customs authorities may grant the debtor payment facilities other than deferred 
payment on condition that a guarantee is provided. 

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However, such guarantee need not be required where it is established that to require 
it  would,  because  of  the  situation  of  the  debtor,  create  serious  economic  or  social 
difficulties. 

Where facilities are granted pursuant to the first subparagraph, credit interest shall be 
charged on the amount of duty. The amount of such interest shall be equivalent to the 
amount  which  would  be  charged  for  this  purpose  on  the  euro  market  or,  where 
appropriate, the national market of the currency in which the amount is payable. 

The customs authorities may refrain from charging credit interest where to charge it 
would,  because  of  the  situation  of  the  debtor,  create  serious  economic  or  social 
difficulties. 

2. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures for the implementation of paragraph 1. 

Article 83 

Enforcement of payment, arrears 

1. 

2. 

3. 

4. 

Where  the  amount  of  duty  payable  has  not  been  paid  within  the  prescribed  period, 
the customs authorities shall secure payment of that amount by all means available to 
them according to the law of the Member State. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  in  respect  of  securing  payment  from  guarantors  within  the 
framework of a special procedure. 

Interest on arrears shall be charged on the amount of duty from the date of expiry of 
the prescribed period until the date of payment. The rate of interest on arrears shall 
be no more than one percentage point higher than the rate of credit interest within the 
euro or national currency market concerned. It may not be lower than that rate. 

Where  the  amount  of  a  customs  debt  has  been  notified  pursuant  to  Articles  72(3), 
interest on arrears shall be charged over and above the amount of duty, from the date 
on which the customs debt was incurred until the date of notification.  

The rate of interest on arrears shall be set in accordance with paragraph 2. 

The  customs  authorities  may  refrain  from  charging  interest  on  arrears  where  to 
charge  it  would,  because  of  the  situation  of  the  debtor,  create  serious  economic  or 
social difficulties. 

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures  laying  down  the  cases,  in  terms  of  time  and  amounts,  in  which  the  customs 
authorities may waive the collection of interest on arrears. 

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Section 3 

Repayment and remission of duty 

Article 84 

General provisions 

1. 

For the purposes of this Section, the following definitions shall apply:  

(a) 

(b) 

‘repayment’ means  the refunding  of import or export duties  which have  been 
paid; 

‘remission’ means the waiving of the obligation to pay an amount of import or 
export duty which has not been paid. 

Where reference is made in this section to import or export duties, it shall be deemed 
also to cover interest on arrears. 

2. 

Repayment shall not give rise to the payment of interest by the customs authorities 
concerned.  

However, interest shall be paid where a decision granting repayment under Article 85 
is not implemented within three months of the date on which that decision was taken. 

In  such  cases,  the  interest  shall  be  paid  from  the  date  of  expiry  of  the  three  month 
period until the date of repayment. The rate of interest shall be equivalent to the rate 
of interest on the euro or national currency market concerned. 

3. 

Where a customs authority has granted repayment or remission in error, duty liability 
shall  be  reinstated  in  so  far  as  recovery  of  the  original  customs  debt  is  not  time-
barred under Article 73.  

In such cases, any interest paid under the second subparagraph of paragraph 2 must 
be reimbursed. 

Article 85 

Repayment and remission 

1. 

Subject  to  the  conditions  laid  down  in  this  Section,  import  or  export  duties  shall, 
provided that the amount to be repaid or remitted exceeds a certain amount, be repaid 
or remitted on the following grounds: 

(a) 

overcharged duties; 

(b)  defective goods; 

(c) 

error by the customs authorities; 

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(d) 

equity. 

In addition, where duties have been paid and the corresponding customs declaration 
is invalidated, in accordance with Article 117, those duties shall be repaid. 

Subject  to  the  rules  of  competence  for  a  decision,  where  the  customs  authorities 
themselves  discover  within  the  periods  referred  to  in  Article  90(1)  that  import  or 
export duties are repayable or remissible pursuant to Articles 86, 88 or 89, they shall 
repay or remit on their own initiative. 

No  repayment  or  remission  shall  be  granted  when  the  situation  which  led  to  the 
decision determining an amount of duty results from deception by the debtor. 

2. 

3. 

Article 86 

Repayment and remission of overcharged duties 

Import  or  export  duties  shall  be  repaid  or  remitted  in  so  far  as  the  amount  set  out  in  the 
original customs decision exceeds the amount payable, or was notified to the debtor contrary 
to points (c) or (d) of Article 72(1).  

Article 87 

Defective goods 

1. 

2. 

3. 

Import  duties  shall  be  repaid  or  remitted  if  the  decision  determining  the  amount  of 
such duties relates to goods released for free circulation which have been rejected by 
the importer because, at the time of release, they were defective or did not comply 
with the terms of the contract on the basis of which they were imported. 

Defective goods shall be deemed to include goods damaged before their release. 

Repayment  or  remission  of  import  duties shall be granted provided the goods have 
not  been  used,  except  for  such  initial  use  as  may  have  been  necessary  to  establish 
that they were defective or did not comply with the terms of the contract.  

The  customs  authorities  shall  ensure  that  the  debtor  re-exports  the  goods  from  the 
customs territory of the Community or, at his request, places them under the inward 
processing  procedure  (including  for  destruction),  external  transit  or  warehousing  or 
in a free zone. 

Article 88 

Repayment or remission on account of error by the customs authorities 

A decision to repay or remit import or export duties shall be taken where the original decision 
determining the amount of duty did not correspond to the amount payable, as a result of an 
error on the part of the customs authorities, provided the following conditions are met: 

(a) 

the debtor could not reasonably have detected that error; 

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(b) 

the debtor was acting in good faith. 

Where  the  preferential  status  of  the  goods  is  established  on  the  basis  of  a  system  of 
administrative  co-operation  involving  the  authorities  of  a  country  or  territory  outside  the 
customs territory of the Community, the  issue of a  certificate by those authorities, should it 
prove to be incorrect, shall constitute an error which could not reasonably have been detected 
within the meaning of point (a) of the first paragraph. 

The  issue  of  an  incorrect  certificate  shall  not,  however,  constitute  an  error  where  the 
certificate is based on an incorrect account of the facts provided by the exporter, except where 
it is evident that the issuing authorities were aware or should have been aware that the goods 
did not satisfy the conditions laid down for entitlement to the preferential treatment. 

The  debtor  shall  be  considered  to  be  in  good  faith  if  he  can  demonstrate  that,  during  the 
period  of  the  trading  operations  concerned,  he  has  taken  due  care  to  ensure  that  all  the 
conditions for the preferential treatment have been fulfilled. 

The debtor may not rely on a plea of good faith if the Commission has published a notice in 
the  Official  Journal  of  the  European  Union,  stating  that  there  are  grounds  for  doubt 
concerning the proper application of the preferential arrangements by the beneficiary country 
or territory. 

Article 89 

Repayment and remission in equity 

In situations other than those referred to in the second subparagraph of Article 85(1) and in 
Articles 86, 87 and 88, import and export duties shall be repaid or remitted in the interest of 
equity where a customs debt is incurred under special circumstances in which no deception or 
obvious negligence may be attributed to the debtor. 

Article 90 

Procedure for repayment and remission 

1 

A  debtor  who  considers  that  import  or  export  duties  are  repayable  or  remissible 
under Article 85 shall submit an application to the appropriate customs office within 
the following periods: 

(a) 

(b) 

(c) 

in  the  case  of  overcharged  duties,  error  by  the  customs  authorities,  or  equity, 
within three years of the date of notification of the amount; 

in the case of defective goods, within one year of the date of notification of the 
amount; 

in the case of invalidation of a customs declaration, within the period specified 
in the rules applicable to invalidation. 

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The period specified in points (a) and (b) of the first subparagraph shall be extended 
where  the  applicant  provides  evidence  that  he  was  prevented  from  submitting  his 
application in good time as a result of unforeseeable circumstances or force majeure. 

Paragraph  1  shall  apply  mutatis  mutandis  in  cases  where  the  customs  authorities 
repay or remit on their own initiative pursuant to Article 85(2). 

Where  an  appeal  has  been  lodged  under  Article  24  against  the  notification  of  the 
customs debt, the relevant period specified in the first subparagraph of paragraph 1 
of this Article shall be suspended, from the date on which the appeal is lodged, for 
the duration of the appeal proceedings.  

Following  receipt  of  an  application  in  accordance  with  paragraph  1,  the  customs 
authorities shall take a decision as to whether or not to grant repayment or remission, 
as appropriate.  

2. 

3 

4. 

Repayment or remission may be in whole or in part. 

Article 91 

Implementing measures 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures for the implementation of this Section. These measures shall lay down the cases in 
which the Commission shall, in accordance with the procedure referred to in Article 196(3), 
decide whether remission or repayment of an amount of duty is justified. 

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CHAPTER 4 

EXTINCTION OF CUSTOMS DEBT 

Article 92 

Extinction 

1. 

Without prejudice to the provisions in force relating to the time-barring of a customs 
debt  and  non-recovery  of  such  a  debt  in  the  event  of  the  legally  established 
insolvency  of  the  debtor,  a  customs  debt  on  importation  or  exportation  shall  be 
extinguished in any of the following ways: 

(a) 

by payment of the amount of duty; 

(b) 

subject to paragraph 4, by remission of the amount of duty; 

(c)  where,  in  respect  of  goods  declared  for  a  customs  procedure  entailing  the 

obligation to pay duties, the customs declaration is invalidated; 

(d)  where goods liable to import or export duties are seized or confiscated; 

(e)  where  goods  liable  to  import  or  export  duties  are  destroyed  under  customs 

supervision or abandoned to the State; 

(f)  where  the  disappearance  of  the  goods  or  the  non-fulfilment  of  obligations 
arising  from  the  customs  legislation  results  from  the  total  destruction  or 
irretrievable loss of those goods as a result of the actual nature of the goods or 
unforeseeable  circumstances  or  force  majeure,  or  as  a  consequence  of 
instruction by the customs authorities; 

(g)  where  the  debt  was  incurred  pursuant  to  Article  51  or  54  and  where  the 

following conditions are fulfilled: 

(i) 

the  failure  which  lead  to  the  incurrence  of  a  customs  debt  had  no 
significant effect on the correct operation of the procedure declared and 
did not constitute an attempt at deception;  

(ii) 

all of the formalities necessary to regularize the situation of the goods are 
subsequently carried out; 

(h)  where  goods  released  for  free  circulation  duty-free,  or  at  a  reduced  rate  of 
import duty by virtue of their end-use, have been exported with the permission 
of the customs authorities; 

(i)  where it was incurred pursuant to Article 50 and where the formalities carried 
out in order to enable the preferential tariff treatment referred to in that Article 
to be granted are cancelled or satisfactory proof  is submitted  that preferential 
tariff treatment has not been granted; 

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(j)  where, subject to paragraph 5 of this Article, the debt was incurred pursuant to 
Article  51  and  evidence  is  provided  to  the  satisfaction  of  the  customs 
authorities  that  the  goods  have  not  been  used  or  consumed  and  have  been 
exported from the customs territory of the Community. 

For the purposes of point (f) of the first subparagraph, goods shall be considered as 
irretrievably lost when they have been rendered unusable by any person. 

In the event of seizure or confiscation, as referred to in point (d) of paragraph 1, the 
customs debt shall, nevertheless, for the purposes of penalties applicable to customs 
offences,  be  deemed  not  to  have  been  extinguished  where,  under  the  law  of  a 
Member  State,  customs  duties  or  the  existence  of  a  customs  debt  provide  the  basis 
for determining penalties. 

Wherea customs debt is extinguished in respect of goods released for free circulation 
duty-free or at a reduced rate of import duty on account of their end-use, any scrap or 
waste resulting from such destruction shall be deemed to be non-Community goods. 

Where  several  persons  are  liable  for  payment  of  the  customs  debt  and  remission  is 
granted,  the  obligation  to  pay  the  amount  of  duty  shall  be  extinguished  only  in 
respect of the person or persons to whom the remission is granted.  

In the case referred to in point (j) of paragraph 1, the obligation to pay the amount of 
duty  shall  not  be  extinguished  in  respect  of  any  person  or  persons  who  attempted 
deception. 

Where the debt was incurred pursuant to Article 51, the obligation to pay the amount 
of  duty  shall  be  extinguished  with  regard  to  the  person  whose  behaviour  did  not 
involve  any  attempt  at  deception  and  who  contributed  to  the  fight  against  fraud,  in 
particular  in  cases  where  a  controlled  delivery  was  performed  to  facilitate  the 
identification of criminals.  

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures for the implementation of paragraphs 1 to 6 of this Article. 

2. 

3. 

4. 

5. 

6. 

7. 

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ARRIVAL OF GOODS IN THE CUSTOMS TERRITORY OF THE COMMUNITY 

TITLE IV 

1. 

2. 

3. 

CHAPTER 1 

GOODS BROUGHT INTO THE CUSTOMS TERRITORY 

Article 93 

Obligation to lodge an import summary declaration 

Goods brought into the customs territory of the Community shall be covered by an 
import  summary  declaration,  with  the  exception  of  goods  carried  on  means  of 
transport  only  passing  through  the  territorial  waters  or  the  airspace  of  the  customs 
territory of the Community without a stop within that territory.  

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  a  common  data  set  and  format  for  the  import 
summary  declaration,  containing  the  particulars  necessary  for  risk  analysis  and  the 
proper  application  of  customs  controls,  primarily  for  security  and  safety  purposes, 
using, where appropriate, international standards and commercial practices. 

Except where otherwise specified, an import summary declaration shall be lodged or 
made available at the competent customs office before the goods are brought into the 
customs territory of the Community. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures concerning the following: 

(a) 

(b) 

(c) 

(d) 

the conditions under which the requirement for an import summary declaration 
may be waived or adapted; 

the deadline by which the import summary declaration shall be lodged or made 
available  before  the  goods  are  brought  into  the  customs  territory  of  the 
Community; 

the rules for exceptions from and variations to the deadline referred to in point 
(b); 

the  determination  of  the  competent  customs  office  at  which  the  import 
summary declaration shall be lodged or made available and where risk analysis 
and risk-based entry controls are to be carried out.  

In adopting these measures, account shall be taken of the following: 

(a) 

special circumstances; 

(b) 

the  application  of  these  measures  to  certain  types  of  goods  traffic,  modes  of 
transport or economic operators; 

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(c) 

international agreements which provide for special security arrangements. 

Article 94 

Lodgement and responsible person  

1. 

2. 

3. 

4. 

The import summary declaration shall be lodged using an electronic data processing 
technique.  Commercial,  port  or  transport  information  may  be  used  provided  it 
contains the necessary particulars for an import summary declaration. 

Customs  authorities  may,  in  exceptional  circumstances,  accept  paper-based  import 
summary declarations, provided that they apply the same level of risk management 
as  that  applied  to  import  summary  declarations  made  using  an  electronic  data 
processing  technique  and  that  the  requirements  for  the  exchange  of  such  data  with 
other customs offices can be met. 

The import summary declaration shall be lodged by the person who brings the goods, 
or who assumes responsibility for the carriage of the goods, into the customs territory 
of the Community. 

Notwithstanding the obligations of the person referred to in paragraph 2, the import 
summary declaration may be lodged instead by one of the following persons: 

(a) 

(b) 

the importer or consignee or other person in whose name or on whose behalf 
the person referred to in paragraph 2 acts;  

any  person  who  is  able  to  present  the  goods  in  question  or  to  have  them 
presented to the competent customs authority.  

Where  appropriate,  the  customs  authorities  shall  inform  the  person  who  lodged  the 
import summary declaration of consignments which may pose particular security or 
safety risks. 

Article 95 

Amendment of summary declaration 

The person who lodges the import summary declaration shall, at his request, be permitted to 
amend one or more particulars of the declaration after it has been lodged.  

However, no amendment shall be possible after any of the following events:  

(a) 

(b) 

(c) 

the  customs  authorities  have  informed  the  person  who  lodged  the  summary 
declaration that they intend to examine the goods;  

the customs authorities have established that the particulars in question are incorrect;  

the customs authorities have allowed the removal of the goods.  

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down exceptions to point (c) of the second paragraph of this Article.  

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Article 96 

Customs declaration replacing summary declaration 

The  competent  customs  office  may  waive  the  lodging  of  an  import  summary  declaration  in 
respect  of  goods  for  which,  prior  to  the  expiry  of  the  deadline  referred  to  in  point  (b)  of 
Article  93(3),  a  customs  declaration  is  lodged.  In  this  case,  the  customs  declaration  shall 
contain at least the particulars necessary for the import summary declaration. Until such time 
as the customs declaration is accepted in accordance with Article 114, it shall have the status 
of an import summary declaration. 

CHAPTER 2 

ARRIVAL OF GOODS 

Section 1 

Entry of goods into the customs territory of the Community 

Article 97 

Customs supervision 

1. 

2. 

3. 

Goods brought into the customs territory of the Community shall, from the time of 
their  entry,  be  subject  to  customs  supervision  and  may  be  subject  to  customs 
controls.  They  shall  be  subject  to  the  application  of  prohibitions  and  restrictions, 
justified  on  grounds  of  public  morality,  public  policy  or  public  security,  the 
protection of the health and life of humans, animals or plants, the protection of the 
environment,  the  protection  of  national  treasures  possessing  artistic,  historic  or 
archaeological  value,  the  implementation  of  fishery  conservation  and  management 
measures  or  the  protection  of  industrial  or  commercial  property,  including  controls 
on drug pre-cursors, counterfeit goods and cash entering the Community. 

They  shall  remain  under  such  supervision  for  as  long  as  is  necessary  to  determine 
their customs status.  

Without prejudice to Article 176, Community goods shall not be subject to customs 
supervision once their status is established. 

Non-Community  goods  shall  remain  under  customs  supervision  until  their  customs 
status is changed, or they are exported or destroyed.  

Any  person  with  an  interest  in  goods  under  customs  supervision  may,  with  the 
permission  of  the  customs  authorities,  at  any  time  examine  the  goods  or  take 
samples,  in  order  to  determine  their  tariff  classification,  customs  value  or  customs 
status. 

Goods shall not be removed from customs supervision until release is granted by the 
customs authorities. 

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Article 98 

Conveyance to the appropriate place  

The  person  who  brings  goods  into  the  customs  territory  of  the  Community  shall 
convey them without delay, by the route specified by the customs authorities and in 
accordance  with  their  instructions,  if  any,  to  the  customs  office  designated  by  the 
customs  authorities,  or  to  any  other  place  designated  or  approved  by  those 
authorities, or into a free zone.  

Goods brought into a free zone shall be brought into that free zone directly, either by 
sea or air or, if by land, without passing through another part of the customs territory 
of the Community. 

The  goods  shall  be  presented  to  the  customs  authorities  immediately  upon  their 
arrival, in accordance with Article 101.  

Any  person  who  assumes  responsibility  for  the  carriage  of  goods  after  they  have 
been brought into the customs territory of the Community shall become responsible 
for compliance with the obligation laid down in paragraph 1.  

Goods which, although still outside the customs territory of the Community, may be 
subject to customs controls by the customs authority of a Member State as a result of 
an  agreement  concluded  with  the  relevant  country  or  territory  outside  the  customs 
territory of the Community, shall be treated in the same way as goods brought into 
the customs territory of the Community.  

Paragraph 1 shall not preclude application of any special provisions with respect to 
letters, postcards and printed matter or to goods carried by travellers, provided that 
customs supervision and customs control possibilities are not thereby jeopardised.  

Paragraph  1  shall  not  apply  to  goods  carried  on  means  of  transport  only  passing 
through  the  territorial  waters  or  the  airspace  of  the  customs  territory  of  the 
Community without a stop within that territory.  

Article 99 

Intra-Community air and sea services 

Paragraphs 1 to 4 of Article 98 and Articles 93 to 96 and 100 to 103 shall not apply 
to goods which have temporarily left the customs territory of the Community while 
moving between two points in that territory by sea or air, provided that carriage has 
been  effected  by  a  direct  route  and  by  an  air  or  regular  shipping  service  without  a 
stop outside the customs territory of the Community.  

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures laying down special provisions for air and regular shipping 
services. 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

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Article 100 

Conveyance under special circumstances 

1. 

2. 

3. 

Where,  by  reason  of  unforeseeable  circumstances  or  force  majeure,  the  obligation 
laid  down  in  Article  98(1)  cannot  be  complied  with,  the  person  bound  by  that 
obligation or any other person acting on that person's behalf shall inform the customs 
authorities of the situation without delay. Where the unforeseeable circumstances or 
force  majeure  do  not  result  in  total  loss  of  the  goods,  the  customs  authorities  shall 
also be informed of their precise location.  

Where,  by  reason  of  unforeseeable  circumstances  or  force  majeure,  a  vessel  or 
aircraft covered by Article 98(5) is forced to put into port or to land temporarily in 
the customs territory of the Community and the obligation laid down in Article 98(1) 
cannot  be  complied  with,  the  person  who  brought  the  vessel  or  aircraft  into  the 
customs  territory  of  the  Community,  or  any  other  person  acting  on  that  person's 
behalf, shall inform the customs authorities of the situation without delay.  

The customs authorities shall determine the measures to be taken in order to permit 
customs  supervision  of  the  goods  referred  to  in  paragraph  1,  or  those  on  board  a 
vessel or aircraft in the circumstances specified in paragraph 2, and to ensure, where 
appropriate, that they are subsequently conveyed to a customs office or other place 
designated or approved by the authorities.  

Section 2 

Presentation, unloading and examination of goods  

Article 101 

Presentation of goods to customs 

1. 

Goods  arriving  in  the  customs  territory  of  the  Community  shall  be  presented  to 
customs by one of the following persons: 

(a) 

the person who brought the goods into the customs territory of the Community; 

(b) 

(c) 

the  person  in  whose  name  or  on  whose  behalf  the  person  who  brought  the 
goods into that territory acts; 

the person who assumed responsibility for carriage of the goods after they were 
brought into the customs territory of the Community. 

2. 

Notwithstanding the obligations of the person described in paragraph 1, presentation 
of the goods may be effected instead by one of the following persons: 

(a) 

any person who immediately places the goods under a customs procedure; 

(b) 

the  holder  of  an  authorization  for  the  operation  of  storage  facilities  or  any 
person who carries out activity in a free zone. 

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3. 

4. 

1. 

2. 

3. 

The  person  presenting  the  goods  shall  make  a  reference  to  the  import  summary 
declaration or customs declaration lodged in respect of the goods.  

Paragraph  1  shall  not  preclude  the  application  of  special  provisions  relating  to  the 
following:  

(a) 

goods carried by travellers; 

(b)  goods placed under a customs procedure but without the requirement for them 

to be presented to customs; 

(c) 

letters, postcards and printed matter. 

Article 102 

Unloading and examination of goods 

Goods shall be unloaded or trans-shipped from the means of transport carrying them 
solely  with  the  permission  of  the  customs  authorities  in  places  designated  or 
approved by those authorities.  

However, such permission shall not be required in the event of an imminent danger 
necessitating  the  immediate  unloading  of  all  or  part  of  the  goods.  In  that  case,  the 
customs authorities shall immediately be informed accordingly.  

The customs authorities may at any time require goods to be unloaded and unpacked 
for  the  purpose  of  examining  them,  taking  samples  or  examining  the  means  of 
transport carrying them.  

Goods  presented  to  customs  shall  not  be  removed  from  the  place  where  they  have 
been presented without the permission of the customs authorities.  

Section 3 

Formalities after presentation 

Article 103 

Obligation to place non-Community goods under a customs procedure 

Without prejudice to Articles 131 and 133, non-Community goods presented to customs shall 
be placed under a customs procedure. 

Except  as  otherwise  provided,  the  declarant  shall  be  free  to  choose  the  customs  procedure 
under  which  he  wishes  to  place  the  goods,  irrespective  of  their  nature  or  quantity,  or  their 
country of origin, consignment or destination. 

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Article 104 

Goods deemed to be placed in temporary storage 

1. 

2. 

Except where goods are immediately placed under a specific customs procedure for 
which a customs declaration has been accepted, or have been placed in a free zone, 
non-Community  goods  presented  to  customs  shall  be  deemed  to  have  been  placed 
under temporary storage, in accordance with Article 160.  

Without prejudice to the obligation laid down in Article 93(2) and the exceptions or 
waiver provided for by the measures adopted under Article 93(3), where it is found 
that  non-Community  goods  presented  to  customs  are  not  covered  by  an  import 
summary  declaration,  the  holder  of  the  goods  shall  lodge  such  a  declaration 
immediately.  

Section 4 

Goods which have moved under a transit procedure 

Article 105 

Waiver for goods arriving under transit 

Article 98, with the exception of the first subparagraph of paragraph 1 thereof, and Articles 
101 to 104 shall not apply when goods already under a transit procedure are brought into the 
customs territory of the Community. 

Article 106 

Provisions applicable to non-Community goods after a transit procedure has ended 

Articles  102,  103  and  104  shall  apply  to  the  following  goods,  once  such  goods  have  been 
presented  to  customs  at  a  customs  office  of  destination  in  the  customs  territory  of  the 
Community in accordance with the rules governing transit: 

(a) 

(b) 

non-Community goods brought into the customs territory of the Community under a 
transit procedure; 

non-Community  goods  which  have  moved  within  that  territory  under  a  transit 
procedure. 

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GENERAL RULES ON CUSTOMS STATUS AND CUSTOMS PROCEDURE 

TITLE V 

CHAPTER 1 

STATUS OF GOODS 

Article 107 

Presumption of Community status 

1. 

2. 

All  goods  in  the  customs  territory  of  the  Community  shall  be  presumed  to  be 
Community goods, unless it is established that they do not have Community status. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures laying down the following:  

(a) 

the  cases  in  which  the  presumption  referred  to  in  paragraph  1  of  this  Article 
shall not apply; 

(b) 

the means by which the Community status of goods may be established. 

Article 108 

Loss of Community status 

Community goods shall become non-Community goods in the following cases:  

(a) 

(b) 

(c) 

(d) 

where they are moved out of the customs territory of the Community, in so far as the 
rules on internal transit or Article 109 do not apply;  

where they have been placed under the external transit, storage or inward processing 
procedure, in so far as the customs legislation so allows; 

where  they  have  been  placed  under  the  end-use  procedure  and  are  subsequently 
abandoned to the State;  

where  the  declaration  for  release  for  free  circulation  is  invalidated  after  release  in 
accordance  with  measures  adopted  pursuant  to  the  second  subparagraph  of  Article 
117(2).  

Article 109 

Goods leaving the customs territory temporarily 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures  laying  down  the  conditions  under  which  Community  goods  may  move,  without 
being subject to a customs procedure, from one point to another within the customs territory 

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of  the  Community  and  temporarily  out  of  that  territory  without  alteration  of  their  customs 
status. 

CHAPTER 2 

CUSTOMS DECLARATION 

Section 1 

General provisions 

Article 110 

1. 

2. 

1. 

2. 

Declaration of goods, supervision of Community goods 

All goods intended to be placed under a customs procedure, except for the free zone 
procedure,  shall  be  covered  by  a  customs  declaration  appropriate  for  the  particular 
procedure.  

Community  goods  declared  for  a  customs  procedure  shall  be  subject  to  customs 
supervision from the time of acceptance of the declaration referred to in paragraph 1 
until  such  time  as  they  leave  the  customs  territory  of  the  Community  or  are 
abandoned to the State or the customs declaration is invalidated in accordance with 
Article 117. 

Article 111 

Competent customs offices 

Except  where  Community  legislation  provides  otherwise,  Member  States  shall 
determine  the  location  and  competence  of  the  various  customs  offices  situated  in 
their territory and shall ensure that reasonable days and hours are appointed for the 
opening of these offices. 

In doing so, the Member States shall take into account the nature of the traffic and of 
the goods and the customs procedure under which they are to be placed, so that the 
flow of international traffic is neither hindered nor distorted. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  for  the  establishment  of  the  following  competent  customs 
offices:  

(a) 

(b) 

the  customs  office  at  which  a  customs  declaration  shall  be  lodged  or  made 
available; 

the customs office where risk analysis and risk-based import or export controls 
are to be carried out.  

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Article 112 

Types of customs declaration 

1. 

The  customs  declaration  shall  be  lodged  using  an  electronic  data-processing 
technique. 

2. 

3. 

1. 

2. 

The  supporting  documents  required  for  the  application  of  the  provisions  governing 
the customs procedure for which the goods are declared may also be lodged or made 
available by this technique. 

By  derogation  from  paragraph  1,  and  where  this  is  provided  for,  the  customs 
declaration may be lodged in writing or by means of an oral declaration or any other 
act whereby goods can be placed under a customs procedure.  

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures for the implementation of paragraphs 1 and 2 of this Article. 

Section 2 

Standard declarations 

Article 113 

Content of a declaration, supporting documents 

Customs declarations shall contain all the particulars necessary for application of the 
provisions  governing  the  customs  procedure  for  which  the  goods  are  declared. 
Declarations  made  using  a  data  processing  technique  shall  contain  an  electronic 
signature or other means of authentication. Declarations in writing shall be signed. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures laying down the specifications to which customs declarations 
must correspond. 

The  electronic  or  written  documents  required  for  the  application  of  the  provisions 
governing the customs procedure for which the goods are declared shall be available 
to the customs authorities at the time the declaration is lodged.  

However,  upon  request,  the  customs  authorities  may  allow  those  documents  to  be 
made available after release of the goods. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures for the implementation of the first and second subparagraphs 
of this paragraph.  

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1. 

2. 

3. 

1. 

Article 114  

Acceptance of a declaration 

Declarations  which  comply  with  the  conditions  laid  down  in  Article  113  shall  be 
accepted  by  the  customs  authorities  immediately,  provided  that  the  goods  to  which 
they refer are available for control by the customs authorities.  

Where, in accordance with measures adopted pursuant to Article 111(2), a customs 
declaration  is  lodged  at  an  office  other  than  the  office  at  which  the  goods  are 
presented,  the  declaration  may  be  accepted when  the  office  at  which  the  goods  are 
presented confirms the availability of goods for control.  

The date of acceptance of the customs declaration  by the  customs authorities shall, 
except  where  otherwise  provided,  be  the  date  to  be  used  for  the  application  of  the 
provisions governing the customs procedure for which the goods are declared and for 
all other import and export formalities. 

Article 115 

Declarant 

A customs declaration may be made by any person who is able to present or make 
available  all  of  the  documents  which  are  required  for  the  application  of  the  rules 
governing  the  customs  procedure  in  respect  of  which  the  goods  are  declared.  This 
person shall also be able to present the goods in question or to have them presented 
to the competent customs office. 

However, where acceptance of a customs declaration imposes particular obligations 
on a specific person, the declaration must be made by that person or on his behalf. 

2. 

The declarant must be established in the customs territory of the Community.  

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  the  conditions  under  which  the  requirement 
referred to in the first subparagraph of this paragraph may be waived. 

Article 116 

Amendment of a declaration 

The declarant shall, at his request, be permitted to amend one or more of the particulars of the 
declaration  after  the  declaration  has  been  accepted  by  customs.  The  amendment  shall  not 
render the declaration applicable to goods other than those it originally covered.  

No amendment shall be permitted where it is requested after any of the following events;  

(a) 

the customs authorities have informed the declarant that they intend to examine the 
goods;  

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(b) 

(c) 

the customs authorities have established that the particulars in question are incorrect;  

the customs authorities have released the goods. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures laying down exceptions to point (c) of the second paragraph 
of this Article. 

Article 117 

Invalidation of a declaration 

1. 

The customs authorities shall, at the request of the declarant, invalidate a declaration 
already accepted in the following cases:  

(a)  where  they  are  satisfied  that  the  goods  are  immediately  to  be  placed  under 

another customs procedure;  

(b)  where they are satisfied that as a result of special circumstances, the placing of 
the  goods  under  the  customs  procedure  for  which  they  were  declared  is  no 
longer justified.  

However,  where  the  customs  authorities  have  informed  the  declarant  of  their 
intention to examine the goods, a request for invalidation of the declaration shall not 
be accepted before the examination has taken place.  

2. 

The declaration shall not be invalidated after the goods have been released.  

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  exceptions  to  the  first  subparagraph  of  this 
paragraph. 

3. 

Invalidation  of  the  declaration  shall  be  without  prejudice  to  the  application  of 
administrative or criminal penalties.  

Section 3 

Verification 

Article 118 

Verification of a declaration 

1. 

The  customs  authorities  may,  for  the  purpose  of  verifying  the  accuracy  of  the 
particulars contained in a declaration:  

(a) 

examine the declaration and all of the written or electronic documents required 
for  the  application  of  the  provisions  of  the  customs  procedure  for  which  the 
goods are declared;  

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(b) 

require the declarant to present documents other than those referred to in point 
(a); 

(c) 

examine the goods; 

(d) 

take samples for analysis or for detailed examination of the goods. 

2. 

The findings made by the customs authorities shall have the same conclusive force 
throughout the customs territory of the Community. 

Article 119 

Examination and sampling of goods 

1. 

2. 

3. 

1. 

Transport of the goods to the places where they are to be examined and samples are 
to  be  taken,  and  all  the  handling  necessitated  by  such  examination  or  taking  of 
samples, shall be carried out by or under the responsibility of the declarant. The costs 
incurred shall be borne by the declarant.  

The  declarant  shall  have  the  right  to  be  present  when  the  goods  are  examined  and 
when  samples  are  taken.  Where  the  customs  authorities  have  reasonable  grounds, 
they  may  require  the  declarant  to  be  present  or  represented  when  the  goods  are 
examined  or  samples  are  taken  or  to  provide  them  with  the  assistance  necessary  to 
facilitate such examination or taking of samples.  

Provided  that  samples  are  taken  in  accordance  with  the  provisions  in  force,  the 
customs  authorities  shall  not  be  liable  for  payment  of  any  compensation  in  respect 
thereof but shall bear the costs of their analysis or examination.  

Article 120 

Partial examination and sampling of goods 

Where only part of the goods covered by a declaration are examined, or samples are 
taken, the results of the partial examination, or of the analysis or examination of the 
samples, shall be taken to apply to all the goods covered by the same declaration.  

However, the declarant may request a further examination or sampling of the goods 
if  he  considers  that  the  results  of  the  partial  examination,  or  of  the  analysis  or 
examination of the samples taken, are not valid as regards the remainder of the goods 
declared.  The  request  shall  be  granted,  provided  that  the  goods  have  not  been 
released or that, if they have been released, the declarant proves that they have not 
been altered in any way.  

2. 

For the purposes of paragraph 1, where a declaration covers two or more items, the 
particulars relating to each item shall be deemed to constitute a separate declaration.  

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1. 

2. 

1. 

2. 

1. 

Article 121 

Results of the verification 

The  results  of  verifying  the  declaration  shall  be  used  for  the  application  of  the 
provisions governing the customs procedure under which the goods are placed.  

Where  the  declaration  is  not  verified,  paragraph  1  shall  apply  on  the  basis  of  the 
particulars contained in the declaration.  

Article 122 

Identification measures 

The  customs authorities or, where appropriate, authorized economic operators shall 
take the measures necessary to identify the goods where identification is required in 
order to ensure compliance with the conditions governing the customs procedure for 
which those goods have been declared.  

Those  identification  measures  shall  have  the  same  conclusive  force  throughout  the 
customs territory of the Community. 

Means of identification affixed to the goods or means of transport shall be removed 
or destroyed only by the customs authorities or, where they are authorized to do so 
by  the  customs  authorities,  by  economic  operators,  unless,  as  a  result  of 
unforeseeable  circumstances  or  force  majeure,  their  removal  or  destruction  is 
essential to ensure the protection of the goods or the means of transport.  

Section 4 

Release 

Article 123 

Release of the goods 

Without prejudice to Article 124, where the conditions for placing the goods under 
the procedure concerned are fulfilled and provided that the goods are not subject to 
any prohibition or restriction, the customs authorities shall release the goods as soon 
as  the  particulars  in  the  declaration  have  been  verified  or  are  accepted  without 
verification.  

The first subparagraph shall apply where a verification as referred to in Article 118 
cannot be completed within a reasonable period of time and the goods are no longer 
required to be present for verification purposes. 

2. 

All the goods covered by the same declaration shall be released at the same time.  

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For the purposes of the first subparagraph, where a declaration covers two or more 
items,  the  particulars  relating  to  each  item  shall  be  deemed  to  constitute  a  separate 
declaration.  

Where the goods are presented, in accordance with the measures adopted pursuant to 
Article  111(2),  at  a  customs  office  other  than  the  office  at  which  the  customs 
declaration  has  been  accepted,  the  offices  involved  shall  exchange  the  information 
necessary  for  the  release  of  the  goods,  without  prejudice  to  controls  related  to 
security and safety.  

Article 124 

Release dependent upon payment of the customs debt or provision of a guarantee 

Where acceptance of a customs declaration gives rise to a customs debt, the release 
of the goods shall be conditional upon the payment of the debt or the provision of a 
guarantee to cover that debt.  

However, without prejudice to paragraph 2, the first subparagraph shall not apply to 
temporary admission with partial relief from import duties.  

Where,  pursuant  to  the  provisions  governing  the  customs  procedure  for  which  the 
goods  are  declared,  the  customs  authorities  require  the  provision  of  a  guarantee, 
those  goods  shall  not  be  released  for  the  customs  procedure  in  question  until  such 
guarantee is provided.  

3. 

1. 

2. 

CHAPTER 3 

SIMPLIFICATIONS RELATING TO CUSTOMS DECLARATIONS  

Section 1 

Simplified declarations  

Article 125 

Simplified declaration  

The customs authorities shall permit an authorized economic operator to have goods released 
on the basis of a simplified declaration. 

The simplified declaration may take the form of an entry in the declarant's records, provided 
that the customs authorities have access to this data in the declarant’s electronic system and 
that the requirements for the exchange of such data between customs offices can be met. 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures concerning the following 

(a) 

the  conditions  under  which  the  permission  referred  to  in  the  first  paragraph  of  this 
Article is given; 

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(b) 

the  specifications  to  which  the  simplified  declaration  referred  to  in  the  first  and 
second paragraphs of this Article must correspond. 

Article 126 

Waiver of obligations of the declarant 

When  goods  are  released  in  accordance  with  Article  125,  the  customs  authorities  may, 
without prejudice to the legal obligations of the declarant, waive the obligation to present the 
goods to customs.  

Article 127 

Occasional simplified declaration 

Where  the  use  of  a  simplified  declaration  is  requested  on  an  occasional  basis,  the  customs 
office at which the declaration is lodged may accept it without an authorization being granted. 

Article 128 

Supplementary declaration 

1 

2. 

3. 

In the case of a simplified declaration pursuant to Article 125 or 127, the declarant 
permitted to make a simplified declaration shall furnish a supplementary declaration 
containing the further particulars necessary to constitute a customs declaration for the 
customs procedure concerned. 

In  the  case  of  a  declaration  authorized  under  Article  125,  the  supplementary 
declaration may be of a general, periodic or recapitulative nature.  

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  exceptions  to  the  first  subparagraph  of  this 
paragraph. 

The  supplementary  declaration  and  the  simplified  declaration  referred  to  in  Article 
125(1) shall be deemed to constitute a single, indivisible instrument taking effect on 
the date on which the simplified declaration is accepted in accordance with Article 
114.  

Where  the  simplified  declaration  takes  the  form  of  an  entry  in  the  economic 
operator's records and access to this data by the customs authorities, the declaration 
shall take effect from the date on which the goods are entered into the records.  

The  place  where  the  supplementary  declaration  is  to  be  lodged  in  accordance  with 
the  authorization  shall  be  deemed,  for  the  purposes  of  Article  60,  to  be  the  place 
where the customs declaration has been lodged. 

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Article 129 

Application of the rules for standard declarations 

Articles  113  to  122  shall  apply  mutatis  mutandis  to  simplified  and  supplementary 
declarations.

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Section 2 

Other simplifications 

Article 130 

Facilitation of classification 

The customs authorities may, at the request of the declarant, agree that a single or aggregate 
tariff subheading is applied to a whole consignment, provided that the consignment is made 
up  of  goods  falling  within  different  tariff  subheadings  and  that  dealing  with  each  of  those 
goods  in  accordance  with  its  tariff  classification  for  the  purpose  of  drawing  up  the  customs 
declaration  would  entail  a  burden  of  work  and  expense  disproportionate  to  the  import  or 
export measures involved. 

However, where import or export duties are payable, the amount to be collected shall not be 
less than that which would have been paid if all of the items had been classified individually.  

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures for the implementation of the first and second subparagraphs of this Article. 

CHAPTER 4 

DISPOSAL OF GOODS  

Article 131 

Destruction of goods  

Where the circumstances so require, the customs authorities may require goods presented to 
customs  to  be  destroyed  and  shall  inform  the  holder  of  the  goods  accordingly.  The  costs  of 
destruction shall be borne by the holder of the goods. 

Article132 

Measures to be taken by the customs authorities 

The  customs  authorities  shall  take  any  necessary  measures,  including  destruction,  to 

1. 
dispose of goods in the following cases:  

(a) 

where  the  goods  have  been  brought  unlawfully  into  the  customs  territory  of  the 
Community or have been withheld from customs supervision, 

(b) 

where the goods cannot be released for any of the following reasons:  

(i) 

it  has  not  been  possible  to  undertake  or  continue  examination  of  the  goods 
within the period prescribed by the customs authorities for reasons attributable 
to the declarant;  

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(ii) 

the documents which must be produced before the goods can be placed under, 
or released for, the customs procedure requested have not been made available;  

(iii)  payments or a guarantee which should have been made or provided in respect 
of import or export duties, as the case may be, have not been made or provided 
within the period prescribed;  

(iv) 

they  are  subject  to  prohibitions  or  restrictions,  including  those  related  to 
security and safety; 

where  the  goods  have  not  been  removed  within  a  reasonable  period  after  their 
release;  

where after their release, the goods are found not to have fulfilled the conditions for 
that release;  

where goods are abandoned to the State.  

Non-Community  goods  which  have  been  abandoned  to  the  State,  seized  or 
confiscated shall be deemed to be placed under the temporary storage procedure. 

Article 133 

Abandonment 

Non-Community  goods  and  end-use  goods  may  be  abandoned  to  the  State  by  the 
holder of the procedure or, where applicable, the holder of the goods.  

Abandonment shall not entail any expense for the State. The holder of the procedure 
or, where applicable, the holder of goods, shall bear the costs of any destruction or 
other disposal of goods.  

(c) 

(d) 

(e) 

2. 

1. 

2. 

Article 134 

Implementing measures 

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures for the implementation of this Chapter. 

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RELEASE FOR FREE CIRCULATION AND RELIEF FROM IMPORT DUTIES 

TITLE VI 

CHAPTER 1 

RELEASE FOR FREE CIRCULATION 

Article 135 

Scope and effect 

1. 

2. 

Non-Community goods intended to be put on the Community market shall be placed 
under release for free circulation. 

Release for free circulation shall entail the following: 

(a) 

the application of commercial policy measures in so far as they do not have to 
be applied at an earlier stage; 

(b) 

the collection of any import duties;  

(c) 

(d) 

the collection of VAT and excise charges as provided for under the VAT and 
excise provisions in force; 

completion of the other formalities laid down in respect of the importation of 
goods. 

3. 

Release for free circulation shall confer on non-Community goods the customs status 
of Community goods. 

CHAPTER 2 

RELIEF FROM IMPORT DUTIES 

Section 1 

Returned goods 

Article 136 

Scope and effect 

1. 

2. 

Community  goods  which,  having  been  exported  from  the  customs  territory  of  the 
Community, are returned to that territory within a period of three years and declared 
for  release  for  free  circulation  shall,  at  the  request  of  the  person  concerned,  be 
granted relief from import duties.  

The  three-year  period  referred  to  in  paragraph  1  may  be  exceeded  in  order  to  take 
account of special circumstances.  

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3. 

Where,  prior  to  their  export  from  the  customs  territory  of  the  Community,  the 
returned goods had been released for free circulation duty-free or at a reduced rate of 
import duty because of a particular end-use, relief from duty under paragraph 1 shall 
be granted only if they are to be released for free circulation for the same end-use.  

Where  the  end-use  for  which  the  goods  in  question  are  to  be  released  for  free 
circulation  is  no  longer  the  same,  the  amount  of  import  duties  shall  be  reduced  by 
any amount collected on the goods when they were first released for free circulation. 
Should the latter amount exceed that levied on the release for free circulation of the 
returned goods, no repayment shall be granted.  

4. 

Where Community goods have lost their Community status pursuant to Article 108 
and  are  subsequently  released  for  free  circulation,  paragraphs  1,  2  and  3  of  this 
Article shall apply mutatis mutandis. 

Article 137 

Cases in which no relief from import duties is granted 

The relief from import duties provided for in Article 136 shall not be granted in the following 
cases:  

(a) 

(b) 

goods  exported  from  the  customs  territory  of  the  Community  under  the  outward 
processing  procedure,  unless  those  goods  remain  in  the  state  in  which  they  were 
exported;  

goods which have benefited from agricultural policy measures involving their export 
out of the customs territory of the Community.  

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down derogations from the first paragraph of this Article.  

Article 138 

State of the goods 

The relief from import duties provided for in Article 136 shall be granted only if goods are re-
imported in the state in which they were exported.  

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down derogations from the first paragraph of this Article.  

Article 139 

Goods previously placed under the inward processing procedure 

1. 

Articles  136  and  138  shall  apply  mutatis  mutandis  to  processed  products  placed 
under the inward processing procedure prior to being re-exported from the customs 
territory of the Community.  

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2. 

3. 

At  the  request  of  the  declarant  and  provided  he  submits  the  necessary  information, 
the amount of import duty on the goods covered by paragraph 1 of this Article shall 
be  determined  in  accordance  with  Article  58(3).  The  date  of  acceptance  of  the  re-
export notification shall be regarded as the date of release for free circulation.  

The  relief  from  import  duties  provided  for  in  Article  136  shall  not  be  granted  for 
processed  products  which  were  exported  in  accordance  with  point  (b)  of  Article 
150(2),  unless  it  is  ensured  that  no  import  goods  will  be  placed  under  the  inward 
processing procedure. 

Section 2 

Sea-fishing and products taken from the sea  

Article 140 

Products of sea-fishing and other products taken from the sea 

1. 

Without prejudice to Article 39(1), the following shall be exempt from import duties 
when they are released for free circulation:  

(a) 

products  of  sea-fishing  and  other  products  taken  from  the  territorial  sea  of  a 
country or territory outside the customs territory of the Community by vessels 
solely registered or recorded in a Member State and flying the flag of that state;  

(b)  products obtained from products referred to in point (a) on board factory-ships 

fulfilling the conditions laid down in that point.  

2. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures for the implementation of paragraph 1 of this Article. 

Section 3 

Special circumstances 

Article 141 

Relief from import duties on account of special circumstances 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down the cases in which, and the conditions under which, relief from import 
duties is to be granted on account of special circumstances where goods are released for free 
circulation.  

In adopting these measures, account shall be taken of international agreements, the status of 
the person concerned, the nature of the goods and the end-use of the goods. 

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TITLE VII 

SPECIAL PROCEDURES 

CHAPTER 1 

GENERAL PROVISIONS 

Article 142 

Scope 

(a) 

(b) 

(c) 

(d) 

1. 

Goods may be placed under any of the following categories of special procedures: 

transit; 

storage; 

specific use; 

processing.  

Article 143 

Authorization 

The  use  of  the  processing  or  specific  use  procedure  or  the  operation  of  storage 
facilities  for  the  temporary  storage  or  customs  warehousing  of  goods  shall  be 
conditional upon authorization being issued by the customs authorities.  

The conditions under which the use of one or more special procedures is permitted 
shall be set out in the authorization.  

An  authorization  may  involve  the  customs  authorities  of  more  than  one  Member 
State (single authorization) or the use of more than one special procedure (integrated 
authorization). 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  the  conditions  and  procedures  under  which 
authorizations may be granted.  

2. 

Except  where  otherwise  provided  for,  the  authorization  referred  to  in  paragraph  1 
shall be granted only to the following persons:  

(a) 

persons who are established in the customs territory of the Community, except 
for temporary admission, in which case the persons shall be established outside 
the customs territory of the Community;  

(b)  persons  who  offer  every  guarantee  necessary  for  the  proper  conduct  of  the 
operations and, in cases where a customs debt or other charges may be incurred 

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for goods placed under a special procedure, provide a guarantee in accordance 
with Article 61; 

(c) 

in  the  case  of  the  temporary  admission  or  inward  processing  procedure,  the 
person  who  uses  the  goods  or  arranges  for  their  use  or  who  carries  out 
processing  operations  on  the  goods  or  arranges  for  them  to  be  carried  out, 
respectively. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures providing for derogations from points (a), (b) and (c) of the 
first subparagraph of this paragraph.  

3. 

Except  where  otherwise  provided  for  and  in  addition  to  paragraph  2,  the 
authorization  referred  to  in  paragraph  1,  shall  be  granted  only  where  the  following 
conditions are fulfilled: 

(a)  where the customs authorities are able to supervise and monitor the procedure 
without  having  to  introduce  administrative  arrangements  disproportionate  to 
the economic needs involved;  

(b)  where the essential interests of Community producers would not be adversely 
affected by an authorization for the inward or outward processing or temporary 
admission procedure. 

The essential interests of Community producers shall be deemed not to be adversely 
affected, as referred to in point (b) of the first subparagraph, except where evidence 
to the contrary exists.  

Where evidence exists that the essential interests of Community producers are likely 
to be adversely affected, an examination of the economic conditions shall take place 
in accordance with the procedure referred to in Article 196(3). 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures governing the examination of the economic conditions.  

4. 

The  holder  of  the  authorization  shall  notify  the  customs  authorities  of  all  factors 
arising  after  the  authorization  was  granted  which  may  influence  its  continuation  or 
content.  

Article 144 

Application 

The application for an authorization shall be submitted to the customs authorities competent 
for the place where the applicant's main accounts for customs purposes are held.  

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures providing for derogations from the first paragraph of this Article.  

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Article 145 

Records 

1. 

2. 

1. 

2. 

Except  for  the  transit  procedure,  the  holder  of  the  authorization,  the  holder  of  the 
procedure, and all persons carrying on an activity involving the storage, working or 
processing  of  goods,  or  the  sale  or  purchase  of  goods  in  free  zones,  shall  keep 
records in a form approved by the customs authorities.  

The  records  must  enable  the  customs  authorities  to  supervise  the  procedure 
concerned,  in  particular  with  regard  to  the  identification  of  the  goods  placed  under 
that procedure, their customs status and their movements. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  providing  for  derogations  from  the  obligation  laid  down  in 
the first subparagraph of paragraph 1 of this Article. 

Article 146 

End or discharge of a procedure 

In  cases  other  than  the  transit  procedure  and  without  prejudice  to  Article  176,  a 
special  procedure  shall  end  or  be  discharged  when  the  goods  placed  under  the 
procedure,  or  the  processed  products,  are  placed  under  a  subsequent  customs 
procedure, have left the customs territory of the Community or are abandoned to the 
State. 

In the case of the transit procedure, the procedure and the obligations of the holder of 
the procedure shall end when the goods placed under the procedure and the required 
data  are  produced  at  the  customs  office  of  destination  in  accordance  with  the 
provisions of the procedure concerned. 

That procedure and those obligations shall be discharged by the customs authorities 
when  they  are  in  a  position  to  establish,  on  the  basis  of  a  comparison  of  the  data 
available to the customs office of departure and that available to the customs office 
of destination, that the procedure has ended correctly. 

Article 147 

Transfer of rights and obligations 

The rights and obligations of the holder of a procedure with regard to goods which have been 
placed under a special procedure other than transit may, under the conditions laid down by the 
customs authorities, be transferred to other persons who fulfil the conditions laid down for the 
procedure concerned. 

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Article 148 

Movement of goods  

Goods  placed  under  a  special  procedure  other  than  transit  may  be  moved  between  different 
places in the customs territory of the Community. 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures for the implementation of the first paragraph of this Article. 

Article 149 

Usual forms of handling 

Goods  placed  under  customs  warehousing  or  a  processing  procedure  or  in  a  free  zone  may 
undergo  usual  forms  of  handling  intended  to  preserve  them,  improve  their  appearance  or 
marketable quality or prepare them for distribution or resale.  

Article 150 

Equivalent goods 

1. 

Equivalent  goods  shall  consist  in  Community  goods  which  are  stored,  used  or 
processed instead of the goods placed under a special procedure.  

Under  the  outward  processing  procedure,  equivalent  goods  shall  consist  in  non-
Community  goods  which  are  processed  instead  of  Community  goods  placed  under 
the outward processing procedure. 

Equivalent goods shall have the same eight-digit Combined Nomenclature code, the 
same commercial quality and the same technical characteristics as the goods they are 
replacing.  

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures providing for derogations from the third subparagraph of this 
paragraph.  

2. 

The  customs  authorities  shall  authorize  the  following,  provided  that  the  proper 
conduct of the procedure, in particular as regards customs supervision, is ensured: 

(a) 

(b) 

the  use  of  equivalent  goods  under  a  special  procedure  other  than  the  transit, 
temporary admission and temporary storage procedure;  

in  the  case  of  the  inward  processing  procedure,  the  exportation  of  processed 
products  obtained  from  equivalent  goods  before  the  importation  of  the  goods 
they are replacing; 

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(c) 

in the case of the outward processing procedure, the importation of processed 
products  obtained  from  equivalent  goods  before  the  exportation  of  the  goods 
they are replacing. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures laying down the cases in which the customs authorities may 
authorize the use of equivalent goods under temporary admission.  

The use of equivalent goods shall not be permitted in connection with usual forms of 
handling  as  defined  in  Article  149  or  where  it  would  lead  to  an  unjustified  import 
duty advantage. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures specifying additional cases where equivalent goods may not 
be used.  

In  the  case  referred  to  in  point  (b)  of  paragraph  2  of  this  Article,  and  where  the 
processed products would be liable to export duties if they were not being exported 
in  the  context  of  the  inward  processing  procedure,  the  holder  of  the  authorization 
shall provide a guarantee to ensure payment of the duties should the non-Community 
goods not be imported within the period referred to in Article 179 (3). 

3. 

4. 

Article 151 

Implementing measures 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures for the operation of the procedures under this Title.  

CHAPTER 2 

TRANSIT 

Section 1 

External and internal transit 

Article 152 

External transit  

1. 

Under the external transit procedure, non-Community goods may be moved from one 
point to another within the customs territory of the Community without being subject 
to any of the following:  

(a) 

import duties;  

(b)  VAT on importation and excise duties as provided for under VAT and excise 

provisions in force; 

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(c) 

commercial policy measures, in so far as they do not apply to the entry or exit 
of goods into or from the customs territory of the Community. 

2. 

3. 

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures laying down cases in which and the conditions under which 
Community goods shall be placed under external transit.  

Movement  as  referred  to  in  paragraph  1  shall  take  place  in  one  of  the  following 
ways:  

(a) 

under the external Community transit procedure referred to in Article 154(1);  

(b)  under cover of a TIR carnet (TIR Convention) provided that such movement:  

(i) 

began or is to end outside the customs territory of the Community;  

(ii) 

is effected between two points in the customs territory of the Community 
through the territory of a country or territory outside the customs territory 
of the Community;  

(c) 

under cover of an ATA carnet (ATA Convention/Istanbul Convention) used as 
a transit document;  

(d)  under cover of the Rhine Manifest (Article 9 of the Revised Convention for the 

Navigation of the Rhine);  

(e) 

(f) 

under cover of the form 302 provided for in the Agreement between the Parties 
to  the  North  Atlantic  Treaty  regarding  the  Status  of  their  Forces,  signed  in 
London on 19 June 1951;  

under  the  postal  system  in  accordance  with  the  acts  of  the  Universal  Postal 
Union, when the goods are carried by or for holders of rights and obligations 
under such acts.  

4. 

External transit shall apply without prejudice to Article 148. 

Article 153 

Internal transit 

1. 

2. 

Under  the  internal  transit  procedure,  and  under  the  conditions  laid  down  in 
paragraphs  2  and  3,  Community  goods  may  be  moved  from  one  point  to  another 
within  the  customs  territory  of  the  Community,  and  pass  through  another  territory 
outside that territory, without any change in their customs status.  

The  movement  referred  to  in  paragraph  1  shall  take  place  in  one  of  the  following 
ways:  

(a) 

under the internal Community transit procedure, referred to in Article 154(2), 
provided that such a possibility is provided for in an international agreement;  

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(b)  under cover of a TIR carnet (TIR Convention);  

(c) 

under cover of an ATA carnet (ATA Convention/Istanbul Convention) used as 
a transit document;  

(d)  under cover of a Rhine Manifest (Article 9 of the Revised Convention for the 

Navigation of the Rhine);  

(e) 

(f) 

under cover of form 302 as provided for in the Agreement between the Parties 
to  the  North  Atlantic  Treaty  regarding  the  status  of  their  Forces,  signed  in 
London on 19 June 1951; 

under  the  postal  system  in  accordance  with  the  acts  of  the  Universal  Postal 
Union, when the goods are carried by or for holders of rights and obligations 
under such acts. 

3. 

In  the  cases  referred  to  in  points  (b)  to  (f)  of  paragraph  2,  goods  shall  keep  their 
customs  status  as  Community  goods  only  if  that  status  is  established  under  certain 
conditions and in a certain form.  

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  the  conditions  for  and  the  form  of  the 
establishment of that customs status.  

Section 2 

Community transit 

Article 154 

Scope 

1. 

2. 

Under  the  external  Community  transit  procedure,  the  goods  referred  to  in  Article 
152(1) and (2) may be moved in accordance with that Article and Articles 155 and 
156.  

Under  the  internal  Community  transit  procedure,  the  goods  referred  to  in  Article 
153(1) may be moved in accordance with that Article and Article 155. 

Article 155 

Obligations of the holder of the Community transit procedure 

1. 

The  holder  of  the  Community  transit  procedure  shall  be  responsible  for  the 
following:  

(a) 

presentation of the goods intact at the customs office of destination within the 
prescribed  time  limit  and  in  compliance  with  the  measures  taken  by  the 
customs authorities to ensure their identification;  

(b)  observance of the customs provisions relating to the procedure;  

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(c) 

unless  otherwise  provided  for  in  the  customs  legislation,  provision  of  a 
guarantee in order to ensure payment of any customs debt or other charges, in 
particular  VAT  and  excise  duty  as  provided  for  under  VAT  and  excise 
provisions in force, which may be incurred in respect of the goods. 

2. 

A  carrier  or  recipient  of  goods  who  accepts  goods  knowing  that  they  are  moving 
under the Community transit procedure shall also be responsible for presentation of 
the goods intact at the customs office of destination within the prescribed time limit 
and in compliance with the measures taken by the customs authorities to ensure their 
identification.  

Article 156 

Goods passing through the territory of a country outside of the customs territory of the 
Community under the external Community transit procedure 

The  external  Community  transit  procedure  shall  apply  to  goods  passing  through  a  territory 
outside the customs territory of the Community if one of the following conditions is satisfied:  

(a) 

(b) 

provision is made to that effect under an international agreement;  

carriage through that territory is effected under cover of a single transport document 
drawn up in the customs territory of the Community. 

In  the  case  referred  to  in  point  (b)  of  the  first  paragraph,  the  operation  of  the  external 
Community  transit  procedure  shall  be  suspended  while  the  goods  are  outside  the  customs 
territory of the Community. 

CHAPTER 3 

STORAGE 

Section 1 

Common provisions 

Article 157 

Scope  

1. 

2. 

For  the  purposes  of  this  Chapter,  'storage'  shall  comprise  the  temporary  storage, 
customs warehousing and free zone procedures. 

Under  a  storage  procedure,  non-Community  goods  may  be  stored  in  the  customs 
territory of the Community without being subject to any of the following: 

(a) 

import duties; 

(b)  VAT on importation and excise duties as provided for under VAT and excise 

provisions in force; 

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(c) 

commercial policy measures, in so far as they do not apply to the entry or exit 
of goods into or from the customs territory of the Community. 

3. 

Community  goods  may  be  placed  under  the  customs  warehousing  or  free  zone 
procedure in accordance with Community legislation governing specific fields.  

The  Commission  may,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures laying down further cases in which, and the conditions under 
which,  Community  goods  may  be  placed  under  the  customs  warehousing  or  free 
zone procedures.  

Article 158 

Responsibilities of the holder of the authorization or procedure 

1. 

The holder of the authorization and the holder of the procedure shall be responsible 
for the following:  

(a) 

(b) 

(c) 

ensuring  that  goods  under  the  temporary  storage  or  customs  warehousing 
procedures are not removed from customs supervision;  

fulfilling  the  obligations  arising  from  the  storage  of  goods  covered  by  the 
temporary storage or customs warehousing procedures;  

complying with the particular conditions specified in the authorization for the 
customs warehousing procedure or for operation of the storage facilities.  

2. 

3. 

By  way  of  derogation  from  paragraph  1, where the authorization concerns a public 
customs warehouse, it may provide that the responsibilities referred to in points (a) 
or (b) of paragraph 1 devolve exclusively upon the holder of the procedure. In this 
case  the  customs  authorities  may  require  the  holder  of  the  procedure  to  provide  a 
guarantee with a view to ensuring payment of any customs debt and other charges, in 
particular VAT and excise duty as provided for under VAT and excise provisions in 
force, which may be incurred. 

The  holder  of  the  procedure  shall  at  all  times  be  responsible  for  fulfilling  the 
obligations  arising  from  the  placing  of  the  goods  under  the  temporary  storage  or 
customs warehousing procedures.  

Article 159 

Period for discharge  

There shall be no limit to the length of time goods may remain under a storage procedure.  

However,  in  exceptional  cases,  the  customs  authorities  may  set  a  time  limit  by  which  a 
storage procedure must be discharged.  

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Section 2  

Temporary storage 

Article 160 

Goods in temporary storage 

1. 

Where  not  otherwise  declared  for  a  customs  procedure,  the  following  non-
Community  goods  shall  be  deemed  to  be  declared  for  the  temporary  storage 
procedure by the holder of the goods after their presentation to customs: 

(a) 

goods  which  are  brought  into  the  customs  territory  of  the  Community,  other 
than directly into a free zone;  

(b)  goods  which  are  brought  into  another  part  of  the  customs  territory  of  the 

Community from a free zone;  

(c) 

goods for which the external transit procedure is ended. 

The customs declaration shall be considered to have been lodged and accepted by the 
customs authorities at the moment of presentation of the goods to customs.  

The  import  summary  declaration  shall  constitute  the  customs  declaration  for  the 
temporary storage procedure.  

The customs authorities may require the holder of the goods to provide a guarantee 
with a view to ensuring payment of any customs debt or other charges, in particular 
VAT  and  excise  duty  as  provided  for  under  VAT  and  excise  provisions  in  force, 
which may be incurred.  

Where,  for  any  reason,  goods  cannot  be  released  for  the  temporary  storage 
procedure, the customs authorities shall without delay take all measures necessary to 
regularize the situation of the goods.  

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  for  the  implementation  of  the  first  subparagraph  of  this 
paragraph. 

Article 161 

Handling of goods in temporary storage 

Goods  under  the  temporary  storage  procedure  shall  be  stored  only  in  authorized 
temporary storage facilities.  

Without  prejudice  to  the  provisions  of  Article  97(2),  goods  under  the  temporary 
storage procedure shall be subject only to such forms of handling as are designed to 
ensure their preservation in an unaltered state without modifying their appearance or 
technical characteristics. 

2. 

3. 

4. 

1. 

2. 

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Section 3 

Customs warehousing 

Article 162 

Storage in customs warehouses 

1. 

2. 

3. 

1. 

Under the customs warehousing procedure, non-Community goods may be stored in 
facilities authorized for that procedure by and under the supervision of the customs 
authorities, hereinafter 'customs warehouses'. 

The facilities authorized may be available for use by any person for the warehousing 
of goods (public customs warehouse), or for the storage of goods by the holder of an 
authorization for customs warehousing (private customs warehouse).  

Where  circumstances  so  warrant,  goods  placed  under  the  customs  warehousing 
procedure may be temporarily removed from the customs warehouse. Such removal 
must,  except  in  case  of  force  majeure,  be  authorized  in  advance  by  the  customs 
authorities. 

Article 163 

Community goods and processing activities 

The  customs  authorities  may,  where  an  economic  need  exists  and  customs 
supervision will not be adversely affected, authorize the following to take place on 
the premises of a customs warehouse:  

(a) 

storage of Community goods;  

(b)  processing of goods under the inward processing or end-use procedure, subject 

to the conditions provided for by these procedures.  

2. 

In the cases referred to in paragraph 1, the goods shall not be regarded as being under 
the customs warehousing procedure. 

Section 4 

Free zones 

Article 164 

Designation of free zones 

1. 

Member  States  may  designate  parts  of  the  customs  territory  of  the  Community 
situated in that territory and separated from the rest of it as free zones. 

EN 

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For each free zone the Member State shall determine the area covered and define the 
entry and exit points. 

2. 

Free zones shall be enclosed.  

The perimeter and the entry and exit points of the area of free zones shall be subject 
to supervision by the customs authorities. 

3. 

Persons  and  means  of  transport  entering  or  leaving  free  zones  may  be  subject  to 
customs controls.  

Article 165 

Buildings and activities in free zones 

1. 

2. 

3. 

4. 

1. 

2. 

The construction of any building in a free zone shall require the prior approval of the 
customs authorities.  

Subject to customs legislation, any industrial, commercial or service activity shall be 
permitted  in  a  free  zone.  The  carrying  on  of  such  activities  shall  be  subject  to 
notification, in advance, to the customs authorities.  

The  customs  authorities  may  impose  prohibitions  or  restrictions  on  the  activities 
referred to in paragraph 2, having regard to the nature of the goods in question, or the 
requirements of customs supervision, or security or safety requirements.  

The  customs  authorities  may  prohibit  persons  who  do  not  provide  the  necessary 
guarantees of compliance with the customs provisions from carrying on an activity in 
a free zone. 

Article 166 

Other customs procedures in a free zone 

Non-Community goods may, while they remain in a free zone, be released for free 
circulation  or  be  placed  under  the  inward  processing  or  a  specific  use  procedure, 
under the conditions laid down for these procedures.  

In the cases referred to in paragraph 1, the goods shall not be regarded as being under 
the free zone procedure.  

Article 167 

Presentation of goods and their placement under the procedure 

1. 

Goods  brought  into  a  free  zone  shall  be  presented  to  customs  and  undergo  the 
prescribed customs formalities in the following cases: 

(a)  where  they  are  brought  into  the  free  zone  directly  from  outside  the  customs 

territory of the Community;  

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(b)  where  they  have  been  placed  under  a  customs  procedure  which  is  ended  or 

discharged when they are placed under the free zone procedure; 

(c)  where they are placed under the free zone procedure in order to benefit from a 

decision granting repayment or remission of import duties;  

(d)  where  they  qualify  for  agricultural  policy  measures  involving  the  export  of 

such goods.  

Goods  brought  into  a  free  zone  in  circumstances  other  than  those  covered  by 
paragraph 1 need not be presented to customs. 

Goods are deemed to be placed under the free zone procedure at the moment of their 
entry into a free zone, unless they have already been placed under another customs 
procedure.  

Article 168 

Community goods in free zones 

Community goods may be entered, stored, moved, used, processed or consumed in a 
free zone. In such cases the goods shall not be regarded as being under the free zone 
procedure.  

At  the  request  of  the  person  concerned,  the  customs  authorities  shall  certify  the 
Community status of the following goods; 

(a)  Community goods which enter into a free zone; 

(b)  Community  goods  which  have  undergone  processing  operations  within  a  free 

zone; 

(c) 

goods released for free circulation within a free zone.  

Article 169 

Consumption or processing of non-Community goods 

Non-Community  goods  shall  not  be  consumed,  used  or  processed  in  free  zones 
except in cases provided for in Article 166. 

Without  prejudice  to  the  provisions  applicable  to  supplies  or  to  victualling  storage 
within  the  meaning  of  Commission  Regulation  (EC)  No  800/199918,  where  the 
procedure concerned so provides, paragraph 1 of this Article shall not preclude the 
use or consumption of goods of which the release for free circulation or temporary 
admission  would  not  entail  application  of  import  duties  or  measures  under  the 
common agricultural or commercial policy.  

2. 

3. 

1. 

2. 

1. 

2. 

18 

OJ L 102, 17.5.1999, p.11. 

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In  the  case  of  such  use  or  consumption,  no  declaration  for  the  release  for  free 
circulation or temporary admission procedure shall be required.  

Such  declaration  shall,  however,  be  required  if  such  goods  are  subject  to  a  tariff 
quota or ceiling.  

Article 170 

Export, re-export and bringing of goods into another part of the customs territory of the 
Community 

Without  prejudice  to  Community  legislation  governing  specific  fields,  goods  in  a  free  zone 
may be exported or re-exported from the customs territory of the Community, or brought into 
another part of the customs territory of the Community.  

Articles  97  to  104  shall  apply  mutatis  mutandis  to  goods  brought  into  other  parts  of  the 
customs territory of the Community.  

Article 171 

Customs status of goods returning to another part of the customs territory of the 
Community  

1. 

2. 

Where goods are returned from a free zone to another part of the customs territory of 
the Community, the certificate referred to in Article 168(2) may be used as proof of 
the Community status of such goods. 

Where the Community status of goods is not proved pursuant to paragraph 1 or by 
any other approved document, the goods shall be regarded as non-Community goods,  

However,  for  the  purposes  of  applying  export  duties  and  export  licences  or  export 
measures laid down under the commercial or agricultural policy, the goods shall be 
regarded as Community goods.  

CHAPTER 4 

SPECIFIC USE 

Section 1 

Temporary admission 

Article 172 

Scope  

1. 

Under the temporary admission procedure non-Community goods may be used in the 
customs  territory  of  the  Community,  with  total  or  partial  relief  from  import  duties, 
and excise duties as provided for under the excise provisions in force, without being 

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subject to commercial policy measures, in so far as they do not apply to the entry or 
exit of goods into or from the customs territory of the Community. 

Where  the  goods  benefit  from  total  relief  from  import  duties,  they  shall,  in 
accordance with the VAT provisions in force, also benefit from relief from VAT on 
importation.  

2. 

The  temporary  admission  procedure  may  only  be  used  provided  that  the  following 
conditions are met: 

(a) 

the re-export of the goods is intended; 

(b) 

(c) 

the goods are not intended to undergo any change, except normal depreciation 
due to the use made of them; 

it  is  possible  to  ensure  that  the  goods  placed  under  the  procedure  can  be 
identified, except where, in view of the nature of the goods or of the operations 
to  be  carried  out,  the  absence  of  identification  measures  is  not  liable  to  give 
rise  to  any  abuse  of  the  procedure  or,  in  the  case  referred  to  in  Article  150, 
where compliance with the conditions laid down in respect of equivalent goods 
can be verified.  

The Commission may, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down exceptions to point (a) of the first subparagraph of this paragraph. 

Article 173 

Period during which goods may remain under temporary admission 

1. 

2. 

3. 

The customs authorities shall determine the period within which goods placed under 
the  temporary  admission  procedure  must  have  been  re-exported  or  placed  under  a 
subsequent customs procedure. Such period must be long enough for the objective of 
authorized use to be achieved. 

The  maximum  period  during  which  goods  may  remain  under  the  temporary 
admission procedure for the same purpose and under the responsibility of the same 
holder  of  the  authorization  shall  be  24  months,  even  where  the  procedure  was 
discharged  by  placing  the  goods  under  a  subsequent  customs  procedure  and 
subsequently placing them under the temporary admission procedure again.  

Where,  in  exceptional  circumstances,  the authorized  use  cannot  be  achieved  within 
the  periods  referred  to  in  paragraphs  1  and  2,  the  customs  authorities  may,  at  the 
request of the holder of the authorization, extend those periods.  

Article 174 

Situations covered by temporary admission 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures  laying  down  the  cases  in  which,  and  the  conditions  under  which,  the  temporary 

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admission  procedure  may  be  used  and  total  or  partial  relief  from  import  duties  may  be 
granted. 

In  adopting  these  measures,  account  shall  be  taken  of  international  agreements  and  of  the 
nature and the use of the goods. 

Article 175 

1. 

2. 

Amount of import duties in case of temporary admission with partial relief from  
import duties 

The  amount  of  import  duties  in  respect  of  goods  placed  under  the  temporary 
admission procedure with partial relief from import duties shall be set at 3% of the 
amount  of  import  duties  which  would  have  been  payable  on  those  goods  had  they 
been  released  for  free  circulation  on  the  date  on  which  they  were  placed  under  the 
temporary admission procedure. 

That amount shall be payable for every month or fraction of a month during which 
the goods have been placed under temporary admission with partial relief. 

The amount of import duties shall not exceed that which would have been payable if 
the goods in question had been released for free circulation on the date on which they 
were placed under the temporary admission procedure. 

Section 2 

End-use 

Article 176 

Customs supervision under the end-use procedure 

1. 

Under the end-use procedure, goods may be released for free circulation under a duty 
exemption or at a reduced rate of duty on account of their end-use. They shall remain 
under customs supervision.  

2. 

Customs supervision under the end-use procedure shall end in the following cases: 

(a)  where the goods have been used for the purposes laid down for the application 

of the duty exemption or reduced rate of duty; 

(b)  where the goods are exported, destroyed or abandoned to the State;  

(c)  where the goods have been used for purposes other than those laid down for the 
application  of  the  duty  exemption  or  reduced  duty  rate  and  the  applicable 
import duties have been paid. 

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CHAPTER 5 

PROCESSING 

Section 1  

General provisions 

Article 177 

Rate of yield 

Except where a rate of yield has been specified in Community legislation governing specific 
fields, the customs authorities shall set either the rate of yield or average rate of yield of the 
operation  carried  out  under  the  processing  procedure  or  where  appropriate,  the  method  of 
determining such rate.  

The  rate  of  yield  or  average  rate  of  yield  shall  be  determined  on  the  basis  of  the  actual 
circumstances in which processing operations are, or are to be, carried out. This rate may be 
adjusted subsequently, where appropriate. 

Section 2 

Inward processing  

Article 178 

Scope  

1. 

Without  prejudice  to  Article  150,  under  the  inward  processing  procedure  non-
Community goods may be used in the customs territory of the Community in one or 
more  processing  operations  without  such  goods  being  subject  to  any  of  the 
following: 

(a) 

import duties;  

(b)  VAT on importation and excise duties as provided for under VAT and excise 

provisions in force; 

(c) 

commercial policy measures, in so far as they do not apply to the entry or exit 
of goods into or from the customs territory of the Community. 

2. 

The inward processing procedure may be used in cases other than repair only where, 
without  prejudice  to  the  use  of  production  accessories,  the  goods  placed  under  the 
procedure can be identified in the processed products.  

In the case referred to in Article 150, the procedure may be used where compliance 
with the conditions laid down in respect of equivalent goods can be verified.  

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3. 

In addition to paragraphs 1 and 2, the inward processing procedure shall also apply to 
the following goods: 

(a) 

goods  which  have  to  undergo  operations  to  ensure  their  compliance  with 
technical provisions for their release for free circulation;  

(b)  goods  which  have  to  undergo  usual  forms  of  handling  in  accordance  with 

Article 149. 

Article 179 

Period for discharge 

1. 

2. 

3. 

The customs authorities shall specify the period within which the goods placed under 
the  inward  processing  procedure,  or  processed  products,  are  to  be  placed  under  a 
subsequent customs procedure, unless they are destroyed and no waste remains.  

That period shall run from the date on which the non-Community goods are placed 
under  the  procedure  and  shall  take  account  of  the  time  required  to  carry  out  the 
processing  operations  and  to  place  the  processed  products  under  a  subsequent 
customs procedure.  

The  customs  authorities  may  grant  an  extension of the period specified  pursuant to 
paragraph 1, on submission of a duly substantiated application by the holder of the 
authorization.  

The  authorization  may  specify  that  a  period  which  commences  in  the  course  of  a 
calendar  month,  quarter  or  semester  shall  end  on  the  last  day  of  a  subsequent 
calendar month, quarter or semester respectively.  

In  cases  of  prior  exportation  in  accordance  with  point  (b)  of  Article  150(2),  the 
customs authorities shall specify the period within which the non-Community goods 
must be declared for the procedure. That period shall run from the date of acceptance 
of  the  export  declaration  relating  to  the  processed  products  obtained  from  the 
corresponding equivalent goods.  

Article 180 

Temporary re-export for further processing 

Subject  to  prior  authorization  by  the  customs  authorities,  some  or  all  of  the  goods  placed 
under  the  inward  processing  procedure,  or  the  processed  products,  may  be  temporarily  re-
exported  for  the  purpose  of  further  processing  outside  the  customs  territory  of  the 
Community,  in  accordance  with  the  conditions  laid  down  for  the  outward  processing 
procedure. 

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Section 3 

Outward processing 

Article 181 

Scope 

1. 

Under  the  outward  processing  procedure  Community  goods  may  be  temporarily 
exported  from  the  customs  territory  of  the  Community  in  order  to  undergo 
processing  operations.  The  processed  products  resulting  from  those  goods  may  be 
released for free circulation with total or partial relief from import duties. 

2. 

Outward processing shall not be allowed for the following Community goods:  

(a) 

goods  the  export  of  which  gives  rise  to  repayment  or  remission  of  import 
duties;  

(b)  goods  which,  prior  to  exportation,  were  released  for  free  circulation  under  a 
duty exemption  or at  a  reduced  rate of duty  by  virtue  of  their  end-use,  for  as 
long as the purposes of such end-use have not been fulfilled, unless these goods 
have to undergo repair operations; 

(c) 

goods the export of which gives rise to the granting of export refunds;  

(d)  goods in respect of which a financial advantage other than refunds referred to 
in  point  (c)  is  granted  under  the  common  agricultural  policy  by  virtue  of  the 
exportation of those goods.  

Where  the  processed  products  are  declared  for  release  for  free  circulation  by  the 
holder of the authorization, total or partial relief from import duties as referred to in 
paragraph 1 shall be granted, at his request. 

In  cases  not  covered  by  Articles  182  and  183  and  where  ad  valorem  duties  are 
involved, the amount of the import duty shall be calculated on the basis of the cost of 
the processing operation undertaken outside the customs territory of the Community.  

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  the  rules  for  such  calculation  and  the  rules 
where specific duties are involved.  

The  customs  authorities  shall  specify  the  period  within  which  goods  temporarily 
exported  must  be  re-imported  into  the  customs  territory  of  the  Community  in  the 
form of processed products, and placed under release for free circulation, in order to 
be  able  to  benefit  from  total  or  partial  relief  from  import  duties.  They  may  extend 
that  period  on  submission  of  a  duly  substantiated  request  by  the  holder  of  the 
authorization.  

3. 

4. 

5. 

EN 

118 

   EN 

 
Article 182 

Repaired goods  

1. 

2. 

1. 

2. 

3. 

4. 

Where it is established to the satisfaction of the customs authorities that goods have 
been  repaired  free  of  charge,  either  because  of  a  contractual  or  statutory  obligation 
arising from a guarantee or because of a manufacturing defect, they shall be eligible 
for total relief from import duties.  

Paragraph 1 shall not apply where account was taken of the manufacturing defect at 
the time when the goods in question were first released for free circulation. 

Article 183 

Standard exchange system 

Under the standard exchange system an imported product, hereinafter referred to as a 
replacement product, may, in accordance with paragraphs 2 to 5, replace a processed 
product. 

The  customs  authorities  shall  authorize  the  standard  exchange  system  to  be  used 
where the processing operation involves the repair of Community goods other than 
those  subject  to  the  common  agricultural  policy  measures  or  to  the  specific 
arrangements  applicable  to  certain  goods  resulting  from  the  processing  of 
agricultural products.  

Replacement products shall have the same eight digit Combined Nomenclature code, 
the same commercial quality and the same technical characteristics as the defective 
goods had the latter undergone repair.  

Where the defective goods have been used before export, the replacement products 
must also have been used.  

The  customs  authorities  shall,  however,  waive  the  requirement  set  out  in  the  first 
subparagraph  if  the  replacement  product  has  been  supplied  free  of  charge,  either 
because of a contractual or statutory obligation arising from a guarantee or because 
of a manufacturing defect.  

5. 

The  provisions  which  would  be  applicable  to  the  processed  products  shall  apply  to 
the replacement products.  

Article 184 

Prior importation of replacement products 

1. 

The  customs  authorities  shall,  under  the  conditions  they  lay  down,  authorize 
replacement products to be imported before the defective goods are exported. 

EN 

119 

   EN 

 
In the event of such prior importation of a replacement product, a guarantee shall be 
provided covering the amount of the import duties that would be payable should the 
defective goods not be exported in accordance with paragraph 2.  

The defective goods shall be exported within a period of two months from the date of 
acceptance  by  the  customs  authorities  of  the  declaration  for  the  release  for  free 
circulation of the replacement products.  

Where, in exceptional circumstances, the defective goods cannot be exported within 
the period referred to in paragraph 2, the customs authorities may, at the request of 
the person concerned, extend that period. 

2. 

3. 

EN 

120 

   EN 

 
TITLE VIII 

DEPARTURE OF GOODS FROM THE CUSTOMS TERRITORY OF THE 
COMMUNITY 

CHAPTER 1 

GOODS LEAVING THE CUSTOMS TERRITORY 

Article 185 

Obligation to lodge pre-departure declaration 

1. 

2. 

Goods destined to leave the customs territory of the Community shall be covered by 
a pre-departure declaration lodged or made available at the competent customs office 
before the goods are to be brought out of the customs territory of the Community.  

However,  the  first  subparagraph  shall  not  apply  to  goods  carried  on  means  of 
transport which only pass through the territorial waters or the airspace of the customs 
territory of the Community without a stop therein. 

Where a customs declaration, or a re-export notification in accordance with Article 
189,  is  required,  that  declaration  or  notification  shall  constitute  the  pre-departure 
declaration. 

Where neither a customs declaration nor a re-export notification is required, the pre-
departure declaration shall take the form of the exit summary declaration referred to 
in Article 190.  

3. 

The pre-departure declaration shall contain at least the particulars necessary for the 
exit summary declaration.  

Article 186 

Measures establishing certain details 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures concerning the following: 

(a) 

(b) 

(c) 

the  cases  in  which,  and  the  conditions  under  which,  goods  leaving  the  customs 
territory of the Community are not subject to a pre-departure declaration;  

the  conditions  under  which  the  requirement  for  a  pre-departure  declaration  may  be 
waived or adapted;  

the  deadline  by  which  the  pre-departure  declaration  shall  be  lodged  or  made 
available  before  the  goods  are  brought  out  of  the  customs  territory  of  the 
Community;  

EN 

121 

   EN 

 
(d) 

(e) 

any exceptions from and variations to the deadline referred to in point (c); 

the  determination  of  the  competent  customs  office  at  which  the  pre-departure 
declaration shall be lodged or made available and where risk analysis and risk-based 
export and exit controls are to be carried out. 

In adopting these measures, account shall be taken of the following: 

(a) 

(b) 

special circumstances; 

the application of these measures to certain types of goods traffic, modes of transport 
or economic operators; 

(c) 

international agreements which provide for special security arrangements. 

Article 187 

Formalities and customs supervision 

1. 

Goods destined to leave the customs territory of the Community shall be subject to 
the application of exit formalities, which shall, as appropriate, include the following:  

(a) 

the repayment or remission of import duties or payment of export refunds;  

(b) 

the collection of export duties;  

(c) 

the formalities required under the VAT and excise provisions in force; 

(d) 

the  application  of  prohibitions  and  restrictions,  justified  on  grounds  of  public 
morality, public policy or public security, the protection of the health and life 
of humans, animals or plants, the protection of the environment, the protection 
of  national  treasures  possessing  artistic,  historic  or  archaeological  value,  the 
implementation  of  fishery  conservation  and  management  measures  or  the 
protection of industrial or commercial property, including controls on drug pre-
cursors, counterfeit goods and cash leaving the Community. 

Goods  leaving  the  customs  territory  of  the  Community  shall  be  subject  to  customs 
supervision and may be subject to customs controls. 

Where appropriate, the customs authorities may determine the route to be used when 
goods are to leave the customs territory of the Community.  

Release  for  exit  shall  be  granted  on  condition  that  the  goods  in  question  leave  the 
customs territory of the Community in the same condition as when the pre-departure 
declaration was accepted.  

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  for  the  implementation  of  paragraphs  1,  2  and  3  of  this 
Article. 

2. 

3. 

4. 

EN 

122 

   EN 

 
CHAPTER 2 

EXPORT 

Article 188 

Community goods 

Community goods destined to leave the customs territory of the Community shall be placed 
under the export procedure. 

The first paragraph shall not apply to the following goods:  

(a) 

(b) 

goods placed under the end-use or outward processing procedure; 

goods placed under the internal transit procedure or leaving the customs territory of 
the Community temporarily, in accordance with Article 109. 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down the export formalities applicable to goods placed under the end-use or 
outward processing procedure.  

Article 189 

Non-Community goods 

1. 

2. 

3 

Non-Community  goods  destined  to  leave  the  customs  territory  of  the  Community 
shall  be  subject  to  a  re-export  notification  to  be  lodged  at  the  competent  customs 
office and to the exit formalities. 

Articles 110 to 124 shall apply mutatis mutandis to the re-export notification. 

Paragraph 1 shall not apply to the following goods: 

(a) 

goods placed under the external transit procedure and which only pass through 
the customs territory of the Community;  

(b)  goods trans-shipped within, or directly exported from, a free zone;  

(c) 

goods under the temporary storage procedure which are directly exported from 
an authorized temporary storage facility.  

Article 190 

Exit summary declaration 

1. 

Where  non-Community  goods  are  destined  to  leave  the  customs  territory  of  the 
Community and a re-export notification is not required, an exit summary declaration 
shall be lodged at the competent customs office, in accordance with Article 185.  

EN 

123 

   EN 

 
The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2),  adopt  measures  laying  down  a  common  data  set  and  format  for  the  exit 
summary  declaration,  containing  the  particulars  necessary  for  risk  analysis  and  the 
proper  application  of  customs  controls,  primarily  for  security  and  safety  purposes, 
using, where appropriate, international standards and commercial practices. 

2. 

The  exit  summary  declaration  shall  be  made  using  an  electronic  data  processing 
technique. Commercial, port  or transport information may  be used,  provided that it 
contains the necessary particulars for an exit summary declaration.  

In  exceptional  circumstances,  customs  authorities  may  accept  paper-based  exit 
summary declarations, provided that they apply the same level of risk management 
as  that  applied  to  exit  summary  declarations  made  using  an  electronic  data 
processing  technique  and  that  the  requirements  for  the  exchange  of  such  data  with 
other customs offices can be met. 

3. 

The exit summary declaration shall be lodged by one of the following persons: 

(a) 

(b) 

(c) 

the  person  who  brings  the  goods,  or  who  assumes  responsibility  for  the 
carriage of the goods, out of the customs territory of the Community;  

the  exporter  or  consignor  or  other  person  in  whose  name  or  on  whose  behalf 
the persons referred to in point (a) act;  

any  person  who  is  able  to  present  the  goods  in  question  or  to  have  them 
presented to the competent customs authority.  

Article 191 

Amendment of the exit summary declaration 

The  person  who  lodges  the  exit  summary  declaration  shall,  at  his  request,  be  permitted  to 
amend one or more particulars of that declaration after it has been lodged. 

However, no amendment shall be possible after any of the following events: 

(a) 

(b) 

(c) 

the  customs  authorities  have  informed  the  person  who  lodged  the  summary 
declaration that they intend to examine the goods;  

the customs authorities have established that the particulars in question are incorrect;  

the customs authorities have already allowed the removal of the goods. 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down exceptions to point (c) of the second subparagraph of this Article. 

EN 

124 

   EN 

 
CHAPTER 3 

RELIEF FROM DUTIES  

Article 192 

Temporary export 

1. 

2. 

Community  goods  may  be  temporarily  exported  from  the  customs  territory  of  the 
Community and benefit from duty relief upon re-importation. 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article 
196(2), adopt measures for the implementation of paragraph 1 of this Article. 

Article 193 

Relief from export duties on account of special circumstances 

The Commission shall, in accordance with the procedure referred to in Article 196(2), adopt 
measures laying down the cases in which, and the conditions under which, relief from export 
duties is to be granted on account of special circumstances where goods are exported. 

In adopting these measures, account shall be taken of international agreements, the status of 
the person concerned and the nature of the goods. 

EN 

125 

   EN 

 
TITLE IX 

CUSTOMS CODE COMMITTEE AND FINAL PROVISIONS 

CHAPTER 1 

CUSTOMS CODE COMMITTEE 

Article 194 

Further implementing measures 

In addition to the implementing measures referred to in this Code, the Commission shall, in 
accordance with the procedure referred to in Article 196(2), adopt measures laying down the 
following: 

(a) 

(b) 

(c) 

rules  and  standards  for  the  inter-operability  of  Member  States'  customs  systems  to 
bring  about  improved  co-operation  based  upon  electronic  data  exchange  between 
customs authorities and between customs authorities and economic operators; 

the  cases  in  which,  and  the  conditions  under  which,  the  Commission  may  issue 
decisions requesting Member States to revoke or amend a decision; 

any other implementing measures, where necessary, including where the Community 
accepts  commitments  and  obligations  in  relation  to  international  agreements  which 
require the adaptation of provisions of the Code. 

Article 195 

Explanatory notes and guidelines 

The Commission shall, in accordance with the procedure referred to in Article 196(3), adopt 
the following: 

(a) 

(b) 

1. 

2. 

explanatory notes to this Code and the provisions adopted for its implementation, as 
well as to the rules of origin referred to in Article 42; 

guidelines providing a Community interpretation of the provisions of the Code and 
other customs legislation. 

Article 196 

Committee 

The  Commission  shall  be  assisted  by  the  Customs  Code  Committee,  hereinafter 
referred to as 'the Committee'. 

Where  reference  is  made  to  this  paragraph,  Articles  4  and  7  of  Decision 
1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.  

EN 

126 

   EN 

 
The  period  laid  down  in  Article  4  (3)  of  Decision  1999/468/EC  shall  be  set  at  one 
month. 

Where  reference  is  made  to  this  paragraph,  Articles  3  and  7  of  Decision 
1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.  

The Committee shall adopt its rules of procedure. 

3. 

4. 

Article 197 

Further matters 

The Committee may examine any question concerning the Code, or the measures adopted for 
its implementation which is raised by its chairman, either on the initiative of the Commission 
or at the request of a representative of a Member State, and which concerns, in particular, the 
following: 

(a) 

(b) 

any problems arising from the application of customs legislation; 

any  position  to  be  taken  by  the  Community  in  committees,  working  groups  and 
panels  introduced  by  or  under  international  agreements  dealing  with  customs 
legislation. 

CHAPTER 2 

FINAL PROVISIONS 

Article 198 

Repeal 

Regulations (EEC) No 918/83, (EEC) No 3925/91, (EEC) No 2913/92, (EC) No 82/2001 and 
(EC) No 1207/2001 are hereby repealed. 

References to the repealed Regulations shall be construed as references to this Regulation and 
shall be read in accordance with the correlation table set out in the Annex. 

Article 199 

Reports relating to customs penalties 

1. 

2. 

Member  States  shall  notify  the  Commission,  by  [two  months  after  the  entry  into 
force  of  this  Regulation]  at  the  latest,  of  the  national  provisions  in  force  in 
accordance  with  Article  22  and  shall  notify  it  without  delay  of  any  subsequent 
amendment affecting them. 

The Member States shall, by the end of each calendar year, send the Commission a 
report  on  the  application  of  Article  22,  in  accordance  with  the  specifications 
requested by the Commission. 

EN 

127 

   EN 

 
Article 200 

Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

It shall apply from 1 January 2009.  

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

EN 

128 

   EN 

 
ANNEX 

Correlation Table 1: New Regulation > Regulation (EEC) 2913/92 
Former Articles in Reg. 2913/92 

Reg. 2913/92 

New Article 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 

new 
2 
3 
1, 4 
new  
15 , 13(4) 
new 
11 
14+ 199 CCIP 
new 
5 (1)(2)&(3) 
5 (4) 
new 
5a (1) 
5a (2) 
5a (2) 
6, 7, ex 10 
ex 250 
8 
9 
12 
new 
246 
243 
244 
245 
13 
new 
ex 78 
Reg. 3925/91 
16 
11(2) 
18, 35 
17 
19 
20 (1)-(5) ,21 
20 (6) 
22 
23, 24 
26 
new 
27 
28, 36 
29, 32,36 
30, 32(1)(e), 33 
31 

New Article 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
59 
60 
61 
62 
63 
64 
65 
66 
67 
68 
69 
70 
71 
72 
73 
74 
75 
76 
77 
78 
79 
80 
81 
82 
83 
84 
85 
86 
87 
88 
89 
90 
91 
92 

new 
new 
201 
216 
202, 203, ex 204, 206 
143(2), ex 144, 208 
209 
210, 211 
212 
213 
121, 122, ex 144, 214 
112, 121, 122, 135, 136, ex 144, 178 
new 
215(1)(2)&(4) 
189, 191 
192(1) 
190, 192(2) 
193, 194, 197 
196 
195 
94 (1)–(4) 
94 (5)(6)(7) 
198 
199 
215(3), 217 
221 (1)&(2) 
221 (3)&(4) 
217, 220 (2) a & c,  
218, 219 (2) & 220(1) 
new 
222 
223, 231 
224, 225, 226 
227 
228 
229, 230 
232, 214 (3) 
235, 241, 242 
237, 239, 240 
236 
238 
220(2)(b), 236 
239 
new 
new 
150(2),  ex  204,  205,  206,  207,  212a, 
233, 234 

EN 

129 

   EN 

 
 
 
 
 
New Article 
93 
94 
95 

96 

97 
98 
99 
100 
101 
102 
103 

104 
105 
106 
107 
108 
109 
110 
111 
112 
113 
114 
115 
116 
117 
118 
119 
120 
121 
122 
123 
124 
125 

126 
127 
128 
129 
130 
131 
132 
133 
134 
135 
136 
137 
138 
139 
140 
141 

Reg. 2913/92 

36a, 36b (1) 
36b (1)-(4),  
36b (5) 

36c  

37, 42, 58(2) 
38(1)-(4) 
38(5) 
39 
40, 41 
46, 47 
48, 49, 58(1) 

50 
54 
55 
Ex Article 313 CCIP 
83 
164 
59 
60 
61, ex 77 
62, 76(1)a, 77 
63, 67 
64 
65 
66 
68, ex 250 
69 
70 
71, ex 250 
72, ex 250 
73 
74 
76 (1)&(4) 

76(1)(c) 
new 
76(2)&(3) 
new 
81 
56 
57, 75, 78(3) 
ex 182 
new 
79 
185(1) 
185(2) 
186 
187 
188 
184 + Reg. 918/83 

New Article 
147 
148 

90, 103 
91(3), 111 

Reg. 2913/92 

149 
150 
151 

152 
153 
154 
155 
156 

157 
158 
159 
160 
161 
162 
163 
164 
165 
166 
167 
168 
169 
170 
171 
172 
173 
174 
175 
176 
177 
178 
179 

180 
181 
182 
183 
184 
185 
186 
187 
188 
189 
190 
191 
192 
193 
194 
195 

109, 173(b) 
ex 114, ex 115  
92,  97,  98(3),109(4),  115  (2),  120, 
131, 142 (2), 146 (2), 165 
91 
93, 163, 164 
new 
95,96 
93 

98, 166 
101, 102 
108,110, 171 
50, 51(2),53 
51(1), 52 
99,110 
106 
167(1) – (3), 168 (1)&(2) 
167 (4), 172 
173 
ex 169, 170 
169, ex 170 
175 
177,181 
180 
137, 139 
140 
141, 142 
143 (1) & (2) 
82 
119 
130, ex 114 
118 

123 
145, 146, 149, 150, 151, 153(2) 
152 
154, 155, 156 
154 (4), 157 
182a 
182b, ex 182c, 161(4) & (5), 
ex 161,162,183 
161(1),(2) 
182, ex. 182c 
ex 182c,182d 
182d(4) 
new 
184 + Reg. 918/83 
247, 248 
new 

EN 

130 

   EN 

 
 
 
 
 
 
142 
143 

144 
145 
146 

84 
85,  86,  87,  88,  94,  95,  100,  104,  116, 
117, 132, 133, 138,147, 148 
new 
105, 106 (3), 107, 176 
89, 92 

196 

197 
198 
199 
- 

247a, 248a 

249 
251, 252 
253 
- 

EN 

131 

   EN 

 
 
Correlation Table 2: Former Regulation (EEC) 2913/92> New Regulation 

Reg. 2913/92 

New Article 

Article 1 
2 
3 
4 
5 
5a 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
36a 
36b 
36c 
37 
38 
39 
40 
41 
42 
43 

4 
2 
3 
4 
11, 12 
14, 15, 16 
17 
17 
19 
20 
17 
8, 32 
21 
27 
9 
6 
31 
34 
33 
35 
36, 37 
36 
38 
39 
39 
Withdrawn 
40 
42 
43 
44 
45 
46 
44, 45 
45 
47 
33 
44 
93 
93, 94, 95 
96 
97 
98, 99 
100 
101 
101 
97 
Withdrawn 

Reg. 2913/92 
Article 44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
56 
57 
58 
59 
60 
61 
62 
63 
64 
65 
66 
67 
68 
69 
70 
71 
72 
73 
74 
75 
76 
77 
78 
79 
80 
81 
82 
83 
84 
85 
86 
87 
88 
89 
90 

New Article 

Withdrawn 
Withdrawn 
102 
102 
103 
103 
104, 160 
160, 161 
161 
160 
105 
106 
131 
103 
97, 103 
110 
111 
112 
113 
114 
115 
116 
117 
114 
118 
119 
120 
121 
122 
123 
124 
132 
113, 125, 126, 128 
112, 113 
29 
135 
Withdrawn 
130 
176 
108 
142 
143 
143 
143 
143 
146 
147 

EN 

132 

   EN 

 
Reg. 2913/92 

New Article 

Reg. 2913/92 

New Article 

Article 91 
92 
93 
94 
95 
96 
97 
98 
99 
100 
101 
102 
103 
104 
105 
106 
107 
108 
109 
110 
111 
112 
113 
114 
115 
116 
117 
118 
119 
120 
121 
122 
123 
124 
125 
126 
127 
128 
129 
130 
131 
132 
133 
134 
135 
136 
137 
138 
139 
140 

148, 152 
146, 151 
153, 156 
67, 68, 143 
143, 155 
155 
151 
151, 157 
162 
143 
158 
158 
147 
143 
145 
145, 163 
145 
159 
149, 151 
159, 162 
148 
58 
Withdrawn 
150, 178 
150, 151 
143 
143 
179 
177 
151 
57, 58 
57, 58 
180 
Withdrawn 
Withdrawn 
Withdrawn 
Withdrawn 
Withdrawn 
Withdrawn 
178 
151 
143 
143 
Withdrawn 
58 
58 
172 
143 
172 
173 

Article 141 
142 
143 
144 
145 
146 
147 
148 
149 
150 
151 
152 
153 
154 
155 
156 
157 
158 
159 
160 
161 
162 
163 
164 
165 
166 
167 
168 
168a 
169 
170 
171 
172 
173 
174 
175 
176 
177 
178 
179 
180 
181 
182 
182a 
182b 
182c 
182d 
183 
184 
185 

174 
174, 151 
53, 175 
52, 57, 58 
181 
151, 181 
143 
143 
181 
181 
181 
92, 182 
181 
183, 184 
183 
183 
184 
Withdrawn 
Withdrawn 
Withdrawn 
186, 187, 188 
187 
153 
109, 153 
151 
157 
164, 165 
164 
Withdrawn 
167,168 
167, 168 
159 
165 
149, 166 
Withdrawn 
169 
145 
170 
58 
Withdrawn 
171 
170 
133, 189 
185 
186 
186, 189, 190 
190, 191 
187 
141, 193 
136, 137 

EN 

133 

   EN 

 
Reg. 2913/92 
Article 186 
187 
188 
189 
190 
191 
192 
193 
194 
195 
196 
197 
198 
199 
200 
201 
202 
203 
204 
205 
206 
207 
208 
209 
210 
211 
212 
212a 
213 
214 
215 
216 
217 
218 
219 

New Article
138 
139 
140 
61 
63 
61 
62, 63 
64 
64 
66 
65 
64 
69 
70 
Withdrawn 
49 
51 
51 
51, 92 
92 
51, 92 
92 
52 
53 
54 
54 
55 
92 
56 
57, 83 
60, 71 
50 
74 
75 
75 

Reg. 2913/92
220 
221 
222 
223 
224 
225 
226 
227 
228 
229 
230 
231 
232 
233 
Article 235 
236 
237 
238 
239 
240 
241 
242 
243 
244 
245 
246 
247 
247a 
248 
248a 
249 
250 
251 
252 
253 

New Article
74, 75, 88 
72, 73 
77 
78 
79 
79 
79 
80 
81 
82 
82 
78 
83 
92 
84 
86, 88 
85 
87 
85, 89 
85 
84 
84 
24 
25 
26 
23 
194 
196 
194 
196 
197 
18, 118, 121, 122 
198 
198 
199 

EN 

134 

   EN 

 
Correlation Table 3: Repealed Regulation > New Regulation 

Former Regulation 

New Article 

(EEC) No 918/83  
(EEC) No 3925/91, 
(EC) No 82/2001 
(EC) No 1207/2001 

Articles 141 & 193 
Article 30 
Article 42  
Article 42 

EN 

135 

   EN 

 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

Policy area(s): 14 Taxation and customs union  

Activit(y/ies): 1404 Customs Policy  

TITLE OF ACTION: 

Proposal  for a REGULATION OF THE  EUROPEAN  PARLIAMENT  AND  OF  THE 
COUNCIL laying down the Community Customs Code 

1. 

BUDGET LINES 

1.1. 

Budget  lines  (operational  lines  and  related  technical  and  administrative  assistance 
lines (ex- B.A lines)) including headings: 

•  140402 Customs 2007 programme 
•  14040X Customs 2013 programme 
•  140104X Customs 2013 programme-Expenditure on administrative management 
•  The final budgetary structure for the Customs 2013 programme will be decided at 

a later stage. 

1.2. 

Duration of the action and of the financial impact: 

•  The period of validity of the legal base runs from 01/07/2007 to 31/12/2013. 
•  The payments will continue after 31/12/2013. 

1.3. 

Budgetary characteristics (add rows if necessary): 

Budget 
line 

14014X 

1401040X 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from  applicant 
countries 

in 

Heading 
financial 
perspective 

Non-
comp 

Non-
comp 

Diff 19/ 

 YES 

NO 

YES 

Non-
Diff20/ 

 YES 

NO 

YES 

1a 

1a 

19 
20 

Differentiated appropriations 
Non-differentiated appropriations 

EN 

136 

   EN 

 
 
 
 
                                                 
2. 

SUMMARY OF RESOURCES 

2.1. 

Financial Resources 

The operational expenditure of the proposal is covered for the years 2006 and 2007 
by the legislative financial statement to the Decision Customs 2007. 

For the years 2008 to 2013 they are covered by the legislative financial statement to 
the  Communication  from  the  Commission  Community  Programmes  Customs  2013 
and Fiscalis 2013 under  reserve of the approval of the Decision adopting an  action 
programme for customs in the Community (Customs 2013). 

2.1.1.  Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 3 decimal places) 

Section 
no. 

2007 

2008 

2009 

2010 

Total 

2011 
and 
later 

Expenditure type 

Operational expenditure21 

Commitment 
Appropriations (CA) 

6.1 

Payment 
Appropriations (PA) 

A 

B 

1.425 

3.875 

4.875 

5.635 

18.290 

34.100 

0.535 

1.790 

3.525 

4.820 

23.430 

34.100 

Administrative expenditure within reference amount2223 

Technical 
administrative 
assistance (NDA) 

& 

6.2.4 

C 

0 

0.485 

0.485 

0.485 

1.455 

2.910

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT  

Commitment 
Appropriations 

Payment 
Appropriations 

a+c 

1.425 

4.360

5.360

6.120 

19.745 

37.010

b+c 

0.535 

2.275 

4.010 

5.305 

24.885 

37.010 

Administrative expenditure not included in reference amount24 

Human resources and 
associated 
expenditure (NDA) 

6.2.5 

D 

0.992 

1.056 

1.056 

1.056 

3.168 

7.328

21 
22 
23 

24 

Expenditure that does not fall under Chapter 14 01 of the Title xx concerned. 
Expenditure within article 14 01 04 of Title 14. 
The  administrative  expenditure  line  anticipates  the  possible  externalisation  of  activities  under  the 
programme. Budgetary figures will only be available after the completion in 2006 of a feasibility study 
on the topic.  
Expenditure within chapter 14 01 other than articles 14 01 04 or 14 01 05. 

EN 

137 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
 
 
 
                                                 
than 

costs, 
Administrative 
human 
other 
resources 
and 
associated  costs,  not 
included 
reference 
in 
amount (NDA) 

6.2.6 

E 

0.525 

0,040 

0,040 

0,040 

0,120 

0.765

Total indicative financial cost of intervention 

TOTAL CA including cost 
of Human Resources 

A+c+
d+e 

TOTAL PA including cost 
of Human Resources 

b+c+
d+e 

Co-financing details 

2007 

2008 

2009 

2010 

2011  and 
later 

Total 

2.942 

5.456 

6.456 

7.216 

23.033 

45.103

2.052 

3.371 

5.106 

6.401 

28.173 

45.103

2.1.2.  Compatibility with Financial Programming 

x 

Proposal is compatible with existing financial programming. 

This  Regulation  is  compatible  with  the  proposition  of  the  Commission  for  the 
Financial  Perspectives  2007-2013  (COM  (2004)101  final  of  10.2.2004  and 
COM(2004)487 final of 14.7.2004. It falls into the subheading 1a– Competitiveness 
for growth and employment. 

2.1.3.  Financial impact on Revenue 

x 

Proposal  has  no  direct  financial  implications  on  revenue,  although  the 
possibility exists that it would reduce the risk of fraud and thus increase 
own resources collection. 

2.2. 

Human Resources FTE (including officials, temporary and external staff) – see detail 
under point 6.2.1. 

Annual requirements 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

number 
Total 
human resources 

of 

13 

14 

14 

14 

14 

14 

14 

EN 

138 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
3. 

CHARACTERISTICS AND OBJECTIVES 

3.1. 

Needs to be met in the short or long term 

See section 2 of the ex-ante assessment of expected impacts. 

3.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with  other 
financial instruments and possible synergy 

See section 2 of the ex-ante assessment of expected impacts. 

3.3. 

Objectives, expected results and  related indicators of the proposal in the context of 
the ABM framework 

Objectives and expected results 

The  objective  is  to  adopt  a  Regulation  which  will  create  a  more  updated  and 
harmonised legislation concerning the Customs Union. This will lead to an increase 
in the efficiency and effectiveness of customs procedures. 

Indicators 

- Degree of satisfaction of customs administrations and traders. 

3.4. 

Method of Implementation (indicative) 

See section 6.1 of the ex-ante assessment of expected impacts. 

4. 

MONITORING AND EVALUATION 

4.1. 

Monitoring system 

The  actions  to  be  carried  out  under  the  proposed  modernised  customs  code  will  be 
monitored  (including  measurements  of  results)  as  part  of  the  Customs  2007/2013 
programmes. 

The  administrations  shall  send  the  Commission  all  the  information  necessary  for 
follow-up reports to be drawn up as efficiently as possible. 

4.2. 

How will the results and impacts be monitored and evaluated?  

4.2.1.  Ex-ante evaluation 

See ex-ante assessment of expected impacts. 

4.2.2.  Measures  taken  following  an  intermediate/ex-post  evaluation  (lessons  learned  from 

similar experiences in the past) 

The  Customs  2007  interim  evaluation  is  not  yet  finished  (planned  for  end  2005). 
However,  results  from  this  evaluation,  concerning  the  Customs  Code  will  be  taken 
into  account  in  the  future  implementation  of  the  electronic  customs  strategy  and 
evaluated  in  the  framework  of  the  foreseen  evaluation  of  the  Customs  2013 

EN 

139 

   EN 

 
Programme.  Also  results  of  an  evaluation  of  the  previous  modification  of  the 
Customs Code (security amendments) will be taken on board as lessons learnt. Also 
the  Customs  Policy  Group  meetings  will  have  a  steering  function  for  the 
implementation  and  will  take  into  account  lessons  learnt  for  the  benefit  of  these 
planned actions.  

4.2.3.  Terms and frequency of future evaluation 

Future evaluations of the Modernized Customs Code proposal will be financed and 
aligned on the Customs 2013 programme evaluations.  

The terms and frequency of these evaluations will be dependent on the Customs 2013 
programme evaluations.  

5. 

ANTI-FRAUD MEASURES 

The  amounts  relative  to  the  main  activities  of  the  programme  are  submitted  to  the 
usual  procedure  of  verification  by  the  services  of  the  Commission  before  payment, 
taking  into  account  contractual  obligations  and  sound  financial  and  general 
management.  Anti  fraud  measures  (controls,  reports,  etc.)  are  foreseen  in  all 
contracts concluded between the Commission and the beneficiaries. 

The  joint  actions  referred  to  above  (exchanges,  seminars,  working  groups,  etc)  are 
paid from the 'Joint Action' budget of Customs 2007 programme and its successor. 
The officials are reimbursed as follows: 

The participating countries reimburse their travel costs and living expenses for their 
own  officials,  in  line  with  established  programme  rules.  Advance  payments  of  the 
necessary amounts are made to the participating countries during the exercise taking 
into account the implementation. The participating countries have to submit detailed 
proof of their expenses and will keep all documents in view of possible control. The 
payment  of  the  travel  costs  and  living  expenses to officials of other countries or to 
representatives of external organisations and of costs relating to the organisation of 
seminars  will  be  made  directly  by  the  services  of  the  Commission,  or  by  countries 
duly  mandated  to  this  effect.  Anti  fraud  dispositions  (controls,  reports,  etc.)  are 
foreseen in each contract of this nature. 

The amounts relative to other activities of the programme are submitted to the usual 
procedure of verification by the services of the Commission before payment, taking 
into  account  contractual  obligations  and  sound  financial  and  general  management. 
Anti  fraud  measures  (controls,  reports,  etc.)  are  foreseen  in  all  contracts  concluded 
between the Commission and the beneficiaries. 

Control  visits  in  the  Member  States  are  carried  out  by  the  financial  services  of  the 
Commission  in  order  to  ensure  conformity  with  financial  rules  applicable  to  the 
management of the programme. 

EN 

140 

   EN 

 
6. 

DETAILS OF RESOURCES 

6.1. 

Objectives of the proposal in terms of their financial cost 

Commitment appropriations in EUR million (to 3 decimal places) 

(Headings of 
Objectives, actions 
and outputs should 
be provided) 

Type of 
output 

Av. 
cost 

2007 

2008 

2009 

2010 

Year 2011 and 
later 

TOTAL 

No. 
out 
puts 

Total 
cost 

No. 
out 
puts 

Total 
cost 

No. 
out 
puts 

Total 
cost 

No. 
out 
puts 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
out 
puts 

Total 
cost 

OPERATIONAL 
OBJECTIVE No.1 
[1] Modernized 
Customs Code 

Action 1Joint 
Actions. 

 - Joint Actions 

OPERATIONAL 
OBJECTIVE No.1 
[1] Modernized 
Customs Code 

Action 2 
Modernized 
Customs Code 

 Output 1 

Action 3 CNN/CSI 

- Output 1 

OPERATIONAL 
OBJECTIVE No.n 1 

Sub-total Objective 
n 

TOTAL COST 

IT 
contract 

IT 
contract 

0.325 

0.375 

0.375 

0.385 

1.165 

2.625 

0.600 

3.000 

3.750 

4.500 

14.875 

26.725 

0.500 

0.500 

0.750 

0.750 

2.250 

4.750 

1.425 

3.875 

4.875 

5.635 

18.290 

34.100 

EN 

141 

   EN 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
  
6.2. 

Administrative Expenditure 

The  needs  for  human  and  administrative  resources  shall  be  covered  within  the 
allocation  granted  to  the  managing  DG  in  the  framework  of  the  annual  allocation 
procedure. The allocation of posts should take into account an eventual reallocation 
of posts between departments on the basis of the new financial perspectives. 

6.2.1.  Number and type of human resources 

Types of 
post 

Staff to be assigned to management of the action using existing and/or 
additional resources (number of posts/FTEs) 

Year 2007  Year 2008  Year 2009  Year 2010 

Year 2011 - 
2013 

Officials 
or 
temporary 
staff25 (14 
01 01) 

A*/AD 

B*, 
C*/AST 

Staff financed26 by art. 
14 01 02 

Other  staff27  financed 
by art. 14 01 04/05 

4 

4 

2 

3 

4 

4 

3 

3 

4 

4 

3 

3 

4 

4 

3 

3 

4 

4 

3 

3 

TOTAL 

13 

14 

14 

14 

14 

6.2.2.  Description of tasks deriving from the action 

The legal and procedural activities will be carried out by the competent units in the 
customs policy directorate of Taxation and Customs Union DG. The increase of staff 
is required to draft the legal texts for the Implementation Provisions of the Customs 
Code and to draft working documents for the committees and working groups. The 
procedural experts will also need to draft the functional specifications needed for the 
new information technology systems to be developed or amended as a result of the 
legal changes (over and above those provided for in the e-customs proposal). 

The  Information  Technology  Unit  of  Taxation  and  Customs  Union  DG  will  be 
gradually  reinforced  to  introduce  the  new  functions  required,  such  as  central 
clearance.  Due  to  the  proposed  changes  there  will  also  be  a  need  for  training, 
information  and  communication  for  professionals  and  the  general  public.  The 
Commission will also need to ensure cohesion and compatibility of the actions with 
initiatives  in  the  field  of  eGovernment,  eEurope,  as  well  as  actions  undertaken  by 
international institutions to improve interoperability between systems, messages and 
data  in  general.  Staff  will  also  be  required  to  ensure  that  cooperation  with  other 
sectors  (agriculture,  border  police,  public  health,  etc),  often  with  competences 

25 
26 
27 

Cost of which is NOT covered by the reference amount 
Cost of which is NOT covered by the reference amount 
Cost of which is included within the reference amount 

EN 

142 

   EN 

 
 
 
 
                                                 
distributed  on  different  levels  (EU,  national  and  regional),  is  established  to  make 
electronic declarations possible for all categories of products. 

The total needed reinforcement as follows: 

2006 

2007 

2008 

A* 

B* /C* 

SNE 

Experts 

1 

1 

1 

0 

1 

1 

1 

3 

0 

0 

1 

0 

6.2.3.  Sources of human resources (statutory) 

x 

x 

x 

(cid:133) 

(cid:133) 

Posts currently allocated to the management of the programme to be replaced 
or extended: 4 posts currently allocated to this activity will continue to be used 
for this purpose 

Posts pre-allocated within the APS/PDB exercise for year 2006 : 2 posts 

Posts to be requested in the next APS/PDB procedure : 2 posts  

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 
(internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise of the 
year in question 

6.2.4.  Other  Administrative  expenditure  included  in  reference  amount  (14  01  04/05  – 

Expenditure on administrative management 

EUR million (to 3 decimal places) 

Budget line 

(number and heading) 

2007 

2008 

2009 

2010 

Year 
2011  

And 
later 

TOTAL 

1  Technical  and  administrative 
assistance  (including  related  staff 
costs) 

Executive agencies28 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

Other 

technical  and  administrative 

assistance 

28 

Reference should be made to the specific legislative financial statement for the Executive Agency(ies) 
concerned. 

EN 

143 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
- intra muros  

0 

0.485

0.485

0.485

1.455 

2.910 

- extra muros 

- 

- 

- 

- 

- 

- 

Total  Technical  and  administrative 
assistance 

0 

0.485  0.485  0.485 

1.455 

2.910 

6.2.5.  Financial cost of human resources and associated costs not included in the reference 

amount 

EUR million (to 3 decimal places) 

Type of human resources 

2007 

2008 

2009 

2010 

Year 
2011  

and 
later 

TOTAL 

Officials  and  temporary  staff  (14  01 
01) 

Staff  financed  by  Art  14  01  02 
(auxiliary, END, contract staff, etc.) 

(specify budget line) 

Total cost of Human Resources and 
associated costs (NOT in reference 
amount) 

0.864 

0.864 

0.864 

0.864 

2.592 

6.048 

0.128 

0.192 

0.192 

0.192 

0.576 

1.280 

0.992 

1.056 

1.056 

1.056 

3.168 

7.328 

Calculation– Officials and Temporary agents 

Reference should be made to Point 6.2.1, if applicable 

108,000 EUR per year per official/temporary staff 

Calculation– Staff financed under art. 14 01 02 

Reference should be made to Point 6.2.1, if applicable 

64,000 EUR per year per staff financed under art. 14 01 02 

Calculation– Staff financed under art. 14 01 04/05 

Reference should be made to Point 6.2.1, if applicable 

161,700 EUR per year per staff financed under art. 14 01 04/05 and under 14 01 02 01 

6.2.6 Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places) 

EN 

144 

   EN 

 
2007 

2008 

2009 

2010 

2011-
2013 

TOTAL 

14 01 02 11 01 – Missions 

0.040 

0.040 

0.040 

0.040 

0.120 

14 01 02 11 02 – Meetings & Conferences 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

14 01 02 11 03 – Committees29  

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

0.280 

p.m. 

p.m. 

14 01 02 11 04 – Studies & consultations 

14 01 02 11 05 - Information systems 

 2.Total Other Management 

Expenditure (14 01 02 11) 

3.Other expenditure of an 

administrative nature (14 01 02 01) 

Total Administrative expenditure, other 
than human resources and associated 
costs (NOT included in reference 
amount) 

0.040 

0.040 

0.040 

0.040 

0.120 

0.280 

0.485 

0 

0 

0 

0 

0.485 

0.525 

0.040 

0.040 

0.040 

0.120 

0.765 

Calculation - Other administrative expenditure not included in reference amount 

1,000 EUR per mission 

29 

Specify the type of committee and the group to which it belongs. 

EN 

145 

   EN