REPORT FROM THE COMMISSION TO THE COUNCIL on the application of the (EU) Regulation No 479/2013 of 13 May 2013 on the waiver from the requirement to submit entry and exit summary declarations for Union goods that are moved across the Neum corridor
Date: 2015-11-11
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: Bosnia and Herzegovina, Croatia, accession to the European Union, carriage of goods, customs, customs formalities, customs inspection, export (EU), re-import

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   EN 

   EUROPEAN COMMISSION  Brussels, 11.11.2015  COM(2015) 561 final   REPORT FROM THE COMMISSION TO THE COUNCIL on the application of the (EU) Regulation No 479/2013 of 13 May 2013 on the waiver from the requirement to submit entry and exit summary declarations for Union goods that are moved across the Neum corridor  
 
 
REPORT FROM THE COMMISSION TO THE COUNCIL 

on the application of the (EU)  Regulation No 479/2013 of 13 May 2013 on the waiver 
from the requirement to submit entry and exit summary declarations for Union goods 
that are moved across the Neum corridor 

1.  Introduction 

Council Regulation (EU) N 479/2013 of 13 May 2013 (the Neum Regulation) was adopted on 
the basis of Article 43 of the Act of Accession of the Republic of Croatia to the EU. It lays 
down a special regime regarding the obligation to lodge entry/exit summary declarations for 
consignments  crossing  the  Neum  corridor  by  way  of  derogation  from  certain  provisions  of 
Council Regulation (EEC) No 2913/92 establishing the Community Customs Code1 (CC) and 
of Council Regulation (EEC) No 2454/93 laying down provisions for the implementation of 
the Community Customs Code (CCIP).2 

Pursuant to Article 6 of the Neum Regulation the Republic of Croatia committed to monitor 
rigorously  its  application  and  to  inform  the  European  Commission  by  March  2014  of  any 
irregularities found and of the measures subsequently taken to remedy them. Under Article 7, 
within two years of the Regulation's entry into force the Commission was to submit a report to 
the Council of the EU providing an assessment of its application.  

This report provides that assessment. It gives an overview of the economic and geographical 
context  and  sets  out  the  legal  framework.  It  then  provides  a  general  assessment  of 
implementation,  an  assessment  of  whether  specific  provisions  have  been  enforced,  and  an 
assessment of the suitability of the resources and capabilities required and made available. 

This report is based on the data periodically provided by the Croatian customs administration, 
on a special monitoring visit performed on 28th November 2014 and on subsequent dialogue 
with the Croatian customs administration upon the finalisation of the mission report. 

2.  Geographical and economic context 

2.1. Geographical context 

The Neum corridor is a part of the territory of Bosnia and Herzegovina which extends to the 
Adriatic  Sea,  splitting  the  Croatian  mainland  into  two  parts.  It  is  approximately  9  km  long. 
The road that passes through the Neum corridor has two border-crossing points (BCPs) : Klek 
(Neum  I)  on  the  northern  side  and  Zaton  Doli  (Neum  II)  on  the  southern  side.  Due  to  the 
particular  situation  of  this  area,  special  arrangements  for  the  passage  of  consignments  of 
products of animal origin through the Neum corridor allow such goods to pass if the vehicle is 
sealed. 

1 OJ L 302, 19.10.1992, p. 1 
2 OJ L 253, 11.10.1993, p. 1 

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Considering its geographical situation and the short stretch of the road on the Neum corridor, 
full  application  of  EU  law  requiring  entry/exit  summary  declarations  to  be  lodged  for 
consignments  crossing  this  corridor  would  not  only  have  been  technically  difficult  to 
implement but would in all likelihood have resulted in serious disruption to commercial and 
passenger traffic in the area. 

2.2. Economic context 

The one major road crossing the Neum corridor is the only possible road transport connection 
and has  a limited capacity.  The domestic goods transported through the corridor  are mainly 
supplies  to  the  region  of  Dubrovnik.  They  meet  the  everyday  needs  of  the  local  population 
and  of  the  local  economy,  in  which  tourism  plays  a  major  role.  Although  large  companies 
provide such supplies, goods transported by medium and small economic operators, such as 
craftsmen,  fishermen  and  farmers  account  for  a  substantial  part  of  the  traffic  through  the 
corridor.  

Applying the general requirement to lodge entry and exit summary declarations would lead to 
delays,  make  the  delivery  of  goods  considerably  harder,  increase  transport  costs  and 
ultimately  result  in  the  increase  of  prices/costs  of  these  goods  on  the  domestic  market.  The 
Croatian  customs  authorities  have  provided  the  Commission  with  a  detailed  analysis  and 
explanation of this particular situation. These conditions were considered by the Commission 
and discussed in the Council prior to the adoption of the Neum Regulation.3 

3.  Legal conditions under the Neum Regulation 

The  Neum  Regulation  entered  into  force  on  1  July  2013.  Article  36a(1)  of  the  Community 
Customs  Code4  (CC)  requires  goods  brought  into  the  customs  territory  of  the  Union  to  be 
covered by an entry summary declaration (ENS), subject to certain exemptions or derogations 
as laid down in Article 181c of its implementing provisions5 (CCIP). 

Under  Article  182a  (1)  CC,  subject  to  the  relevant  exemptions  or  derogations  as  applicable 
under  the  third  and  fourth  paragraphs  of  Article  842a  CCIP,  goods  leaving  the  customs 
territory  of  the  Union  shall  be  covered  by  an  exit  summary  declaration  (EXS)  unless  a 
customs  declaration  is  required,  as  is  the  case  for  goods  that  temporarily  leave  the  customs 
territory of the EU without being exported, re-exported or placed under a transit procedure. 

Articles 36b(2) and 182d(2) CC require the use of electronic data-processing techniques for 
lodging those summary declarations in order to allow the electronic exchange of data between 
customs authorities, with a view of basing customs controls on risk-analysis using automated 
systems, as required by Article 13 CC. 

Under  these  provisions,  the  relevant  requirements  were  waived  for  EU  goods  moved  across 
the  Neum  corridor,  taking  into  account  the  nature  of  the  local  economy  and  of  the  goods.  

3 COM(2013) 1 final, Common Position of Working Party on Enlargement and Countries Negotiating Accession to 
the EU 24 June 2011 
4 Council Regulation (EEC) No 2913/92 of 12 October 1992 
5 Commission Regulation (EEC) No 2454/93 of 2 July 1993 
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Tourism is the main economic activity in the area surrounding the city of Dubrovnik. It relies 
mostly on small and medium sized enterprises dependent on supplies of goods from the main 
territory of the Republic of Croatia whose value is usually below EUR 10 000. 

As confirmed by the latest statistics provided by the Croatian customs administration, 89% of 
the  goods  transported  through  the  Neum  corridor  are  goods  that  have  the  status  of  Union 
goods.  They  pass  through  the  corridor  accompanied  by  commercial  documents  proving  the 
community status as referred to under Article 317 CCIP. 

Croatia made a commitment to ensure that appropriate procedures and controls are in place by 
the  date  of  its  accession  to  the  EU  at  both  border  crossing  points  in  order  to  efficiently 
manage  the  special  regime  established  under  the  Neum  Regulation.  Both  border  crossing 
points  had  to  be  appropriately  equipped  and  staffed  in  order  to  enforce  the  relevant 
requirements. 

In  accordance  with  Article  4  of  the  Neum  Regulation,  the  waiver  from  the  requirement  to 
submit ENS and EXS applies if the following conditions are met: 

- The goods are accompanied by commercial (invoice or transport) documents, which should 
contain at least the set of data required in Article 317(2) CCIP as well as the total value of the 
goods, 

- The total value of the goods in question shall not exceed EUR 10 000, 

- The accompanying documents in question are endorsed by the Croation customs authorities 
with official markings (signature, stamps) on exit, 

-  When  deemed  necessary,  the  customs  authorities  seal  the  consignments  or  means  of 
transport on exit, 

- Upon re-entry, the customs authorities check the documents, the time spent for crossing the 
corridor, the seals (if any) and the goods where appropriate. 

Moreover,  the  application  of  these  waivers  shall  not  affect  the  carrying  out  of  risk  analysis 
associated  with  the  customs  controls  applied  on  Union  goods  moved  across  the  Neum 
Corridor, as required by Article 5 of the Neum Regulation. 

4.  Evaluation 

The data provided by the Croatian customs administration confirmed that the traffic in goods 
of  a  value  not  exceeding  EUR  10  000  significantly  exceeds  that  in  goods  over  this  limit 
throughout the year. That has significant repercussions in the period June –August when the 
traffic flow through the corridor increases considerably. 

The monitoring team identified a number of good practices.  

The  border  crossing  points  have  adequate  information  technology  (IT)  and  other  necessary 
equipment.  Infrastructure  has  substantially  been  developed  to  secure  timely,  efficient  and 
compliant controls and checks reflecting good practices established in the EU. The number of 
customs officers is sufficient and properly organised. There is a good coordination and direct 
link between the central administration and Neum offices.  

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Logistically,  there  are  special  allotments  on  the  roads  for  vehicle  inspection  with  proper 
technical  facilities  to  allow  for  effective  customs  controls  while  causing  as  little  traffic 
disruption as possible. In addition, the border crossing points are organised in such a way that 
police  and  customs  can  cooperate  w  closely  ith  a  window  connecting  the  two  offices.  That 
allows proper and speedy comparison of data and coordination of inspections and checks. 

Where  goods  are  leaving  the  customs  territory  temporarily,  Croatian  customs  authorities 
ensure the implementation of the following procedure:  

-  The  customs  office  at  exit  receives  the  commercial  or  transport  documents 
accompanying  the  goods  and  enters  into  the  IT  system  data  about  the  person 
transporting the goods, the owner of the goods (where available), and the consignor of 
the  goods,    together  with  a  goods  description,  the  value,  the  number/quantity  of 
packages, and the gross mass, 

-  A proportionate risk analysis is done and customs controls are performed if necessary, 
-  When satisfied that the conditions are fulfilled, customs stamp the relevant documents 
that accompany the goods, note the information on the customs seals attached (if any), 
and insert the exact time when the goods are leaving from the customs territory (hour 
and minute). The average time allocated to cross the corridor is about 20 minutes. This 
is  reasonable  given  that  vehicles  pass  through  four  border  control  posts  at  Neum  – 
including the ones established by the authorities of Bosnia and Herzegovina 

At the place of re-entry:  

-  Goods  and  stamped  documents  accompanying  them  are  submitted  to  the  customs 
officer who verifies the documents and compares the information in these documents 
with the one entered by the office of exit into the IT system. The customs seals (if any) 
are checked. The time spent for moving through the Neum corridor is verified. 
If any irregularities (for instance, damaged customs seals, excessing the time needed 
for the crossing of the corridor) are found, a detailed examination of the vehicle, the 
goods  and  the  accompanying  documents  is  performed.  Depending  on  the  results  of 
these  special  measures,  the  relevant  actions  are  initiated  and  effective  and  targeted 
measures are taken.  

- 

The  monitoring  mission  established  that  the  physical  and  documentary  inspections  are 
correctly  performed  and  random  checks  are  reasonable.  Documents  are  duly  stamped  upon 
exit and the time for moving across the corridor is correctly checked at re-entry. 

During  the  monitoring  mission  the  Commission  found  that  the  operational  staff  were  well 
prepared and had a very good understanding of the relevant EU customs law and procedures, 
and  customs  officials  received  adequate,  continuous  and  targeted  training  which  reflected 
both  the  generally  applicable  rules  but  also  the  special  local  circumstances.  Training  is 
provided  to  trade  at  regional  level  which  provided  opportunities  to  ask  questions  and  adapt 
more effectively to the specific situation. 

The  organization  of  the  documentary  checks  and  physical  controls  at  the  border  crossing 
points was found to be smooth and efficient, and the transport infrastructure was appropriate, 
with special lanes that prevent unnecessary traffic disruption. 

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There  is  adequate  IT  equipment  linked  to  the  central  administration  as  well  as  close 
cooperation between customs and police authorities. 

5.  Resources and capabilities 

The  Croatian  customs  administration  also  makes  special  efforts  to  be  transparent  and  to 
facilitate  further  the  movement  through  the  corridor  by  informing  the  public  on  the  special 
regime applicable at the Neum corridor by targeted information that is publicly available.   

Resource  allocation  at  the  border  crossing  is  adequate.  Each  border  crossing  has  2  to  3 
officials.  The  number  of  officials  per  border  inspection  post  is  respectively  26  and  28.  The 
workload  is  reasonable  in  comparison  with  the  average  rate  across  the  EU.  Each  customs 
officer  processes  approximately  24  summary  declarations  per  day  where  the  number  of 
declarations  processed  ranges  from  a  minimum  of  17.5  /  day  to  31.5  /  day.  There  is  a  very 
good coordination among the border crossing point, the Split regional  office and the central 
administration. There is reasonable distribution of the work load. The organisation is efficient 
and allows for efficient customs controls and checks without undue delays. 

The  monitoring  team  is  satisfied  with  the  organisation  of  the  implementation  of  the  Neum 
Regulation  by  the  Croatian  customs  administration  and  finds  the  resource  allocation 
appropriate and sufficient.  

6.  Training and logistics 

6.1. Training 

Customs officials receive both general training on customs law and procedures and targeted 
training on issues related to the implementation of the Neum Regulation, e.g.:  

-  use  of  the  import  control  system  (ICS),  export  control  system  (ECS),  New  Computerised 
Transit System (NCTS),  

- nature, use and verification of validity of T2L6 and other means of proof of Union status,  

- risk management 

Training for businesses is also provided regularly at all Croatian regional customs offices. 

6.2. Logistics 

Immediately  before  its  accession  to  the  EU,  in  line  with  its  obligations,  partly  stated  in  the 
Neum  Regulation,  Croatia  built  and  equipped  completely  new  border  crossings  at  the  Klek 
Border  Crossing  and  the  Zaton  Doli  Border  Crossing.  The  new  logistical  infrastructure 

6 T2L is a customs document used in the European Union as a proof of the Inter-European community character 
of the export / import. The exporter, importer and the country the shipment is loaded from and delivered to have 
to belong to the EU member countries in order for the document to be issued. The T2L document is certified by 
the customs authorities of the country the products are loaded from and the importer needs to receive it in order 
to start the import procedure. 

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provides the space needed for border officers, places for detailed vehicle inspection, crossings 
equipped  with  road  scales  up  to  maximum  weight  of  50  tones  and  space  for  the  work  of 
carriers. 

6.3. IT Infrastructure 

The logistical arrangements for allowing expedient checks of vehicles can be considered best 
practice. IT infrastructure is adequate and could benefit from regular updates in line with the 
developments at central level. 

All  work  posts  are  equipped  with  standard  IT  equipment  linked  to  the  customs  network. 
Access is available IT applications and to the website of the customs administration. There is 
an IT connection between the border offices at Klek and Zaton Doli. 

Training  is  organised  by  the  Human  Resources  department  which  is  part  of  the  General 
Directorate  of  Customs.  It  is  carried  out  by  experts  from  the  departments  in  the  General 
Directorate of Customs and usually takes place in the General Directorate of Customs but in 
order to avoid unnecessary travelling by staff there are also some training locations elsewhere 
in the country. 

General  customs  training  is  given  at  regional  offices  by  experts  from  the  central 
administration.  This  encourages  uniform  application  of  the  customs  rules  while  taking  into 
account  the  local  circumstances.  Specific  training  on  the  implementation  of  the  Neum 
Regulation  was  also  organised.  The  Commission  recommended  certain  improvements,  in 
particular targeted instructions on the use, requirements and verification of the authenticity of 
T2L documents. The level of training remains nevertheless sufficient to prepare officials for 
the efficient and effective application of the Neum Regulation. The Commission supports and 
encourages the organisation of trainings at regional departments by experts from the central 
administration and the targeted training on the implementation of the regulation.  

It would help businesses if suitable training  on the implementation of the Neum Regulation 
was also included in the training programme. 

7.  Compliance with the conditions under the Regulation 

7.1. Legislation 

the 
The  Croatian  Customs  Administration  adopted 
Implementation of Customs Control Measures for Goods Moving across the Neum corridor. 
Specialised training of customs officials continued throughout 2014. 

Instruction  No.  25/2013  on 

7.2. Irregularities 

Irregularities  are  rarely  found.  Only  a  very  small  number  of  irregular  documents  have  been 
found and the irregularities are basically due to lack of knowledge of the procedure. 

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7.3. Article 4 of the Neum Regulation 

If  it  is  found  that  the  deadline  for  moving  through  the  corridor  has  been  exceeded,  the 
consignment is subject to additional checks on: 

-   the authenticity of the T2L document or its content, based on a review of electronic records 
at the place where goods leave the EU,  

-  whether customs seals are untouched (if affixed),  

-  other features of  the vehicle's construction, to check whether it was possible to access the 
goods without damaging customs seals, as well as whether the goods are identical and their 
quantity corresponds to the one declared on exit. 

7.4. Article 5 of the Neum Regulation 

Customs  controls  are  risk-based  and  done  on  a  case-by-case  basis.  The  Croation  customs 
administration's  Instruction  No  25/2013  describes  how  checks  are  to  be  carried  out  at  local 
level.  It  also  provides  instructions  for  manual  safety  and  security  risk  analysis.  There  is  a 
specific  requirement for the type and level of checks  that  should  enable customs  officers to 
make a final decision either to allow or to deny entry or exit . 

Customs officers at the border crossings of Klek and the Zaton Doli have permanent access to 
back-up from risk analysis officers. The Central Office, Control Sector (responsible for risk 
analysis), has provided guidance for safety and security. There are regular shifts at the Split 
Regional  Customs  Office  within  the  Control  Service,  Investigation  and  Risk  Management 
Department. 

Only  after  the  prescribed  activities  are  performed  may  the  customs  office  of  exit  allow  the 
goods to leave. 

7.5.  Penalties 

If  the  value  of  the  goods  exceeds  EUR  10  000  the  carrier  must  lodge  a  full  ENS/EXS. 
Penalties are also applied in case of irregularities. 

The  Commission  concludes  that  these  conditions  are  correctly  applied.  Documents  were 
correctly verified, checks performed regularly and the central administration has put in place 
procedures for the uniform application of the Union law. 

8.  Conclusion  

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On the basis of the evaluation provided in this report the Commission concludes that the level 
of application of the Neum Regulation is satisfactory and there is no reason to suspend or 
repeal the regulation. 

9