Proposal for a COUNCIL REGULATION temporarily suspending the autonomous Common Customs Tariff duties on certain goods of a kind to be incorporated in or used for aircraft, and repealing Regulation (EC) No 1147/2002
Date: 2017-12-04
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: CCT duties, aeronautical industry, aircraft, customs formalities, import (EU), spare part, suspension of customs duties

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   EUROPEAN COMMISSION  Brussels, 4.12.2017  COM(2017) 731 final 2017/0324 (NLE)  Proposal for a COUNCIL REGULATION temporarily suspending the autonomous Common Customs Tariff duties on certain goods of a kind to be incorporated in or used for aircraft, and repealing Regulation (EC) No 1147/2002  
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

• 
Council  Regulation  (EC)  No 1147/2002  provides  for  the  temporary  suspension  of  the 
autonomous  common  customs  tariff  duties  on  certain  goods  imported  with  ‘airworthiness 
certificates’.  Airworthiness  certificates  (nowadays  "authorised  release  certificates")  were 
issued by the national aviation in the state where the aircraft was registered and certified that 
the items incorporated in the aircraft were manufactured in conformity to an approved design 
according  to  the  applicable  aviation  legislation  of  that  time.  The  Council  Regulation  (EC) 
No 1147/2002 has simplified customs procedures for duty-free imports of parts, components 
and  other  goods  that  are  used  for  the  manufacture,  repair,  maintenance,  rebuilding, 
modification or conversion of aircraft and were previously imported under different customs 
suspensive procedures (e.g. ‘inward processing’, ‘end-use’ and ‘warehousing’ procedures). 

Some provisions in the Regulation require updating to take account of legal and technological 
developments.  In  particular,  in  order  to  ensure  compliance  with  legal  developments  in  the 
aviation  sector,  provisions  should  refer  to  ‘authorised  release  certificates’  (i.e. European 
Aviation  Safety  Agency  (EASA)  Form  1  or  its  equivalent)  rather  than  ‘airworthiness 
certificates’. Also, the term ‘original certificates’ is obsolete, since certificates are now issued 
in electronic form. 

National  authorities  have  adopted  different  views  as  to  whether  goods  imported  with  an 
‘airworthiness certificate’ and benefitting from the suspension of customs duties as provided 
by Regulation (EC) No 1147/2002, can be used exclusively in civil aircraft, or whether they 
can be used both in civil and military aircraft. To ensure consistent interpretation, and uniform 
implementation,  there  is  a  need  to  clarify  these  provisions.  Consequently,  it  is  envisaged  to 
allow parts intended for military aircraft also to benefit from the duty suspension as long they 
are accompanied by the authorised release certificate or its equivalent. This proposal is in line 
with  customs  legislation  extending  the  simplified  discharge  of  the  inward  processing 
procedure  to  military  aircraft  as  Article  324(1)(c)  of  Commission  Implementing  Regulation 
(EU)  2015/2447,  does  not  distinguish  between  civil  and  non-civil  aircraft  in  respect  of  the 
simplified discharge of the inward processing procedure. 

For  the  sake  of  legal  certainty  and  to  ensure  uniform  application  of  the  regulation,  the 
proposal  will  empower  the  Commission  to  establish  a  list  of  codes  of  the  Combined 
Nomenclature  set  out  in  Council  Regulation  (EEC)  No  2658/87  under  which  the  goods  in 
question  can  be  classified  and  a  list  of  certificates  deemed  equivalent  to  EASA  Form  1 
certificates.  It  will  also  allow  swift  action  where  these  codes  or  certificates  lists  have  to  be 
amended.  

For legal certainty and clarity, the current Regulation should be repealed rather than amended. 
The  proposed  new  Regulation  clarifies,  simplifies,  reduces  administrative  burden  for 
economic operators and customs administrations, and supports the competitiveness of the EU 
aeronautics industry. 

• 

Consistency with existing policy provisions in the policy area 

The  measure  reduces  administrative  burden  for  Member  State  customs  authorities  and  for 
economic  operators  in  the  aircraft  sector,  as  it  reduces  the  need  to  use  suspensive  customs 

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regimes  such  as  favourable  tariff  treatment  for  goods  by  reason  of  their  end-use,  inward 
processing relief or customs warehousing. 

• 

Consistency with other Union policies 

The proposal is in line with Union policy in the field of aviation and builds on the process of 
mutual  recognition  of  authorised  release  certificates  between  EU  and  non-EU  countries.  In 
particular, the  proposal is  consistent with  the Union policy on common rules  in  the field  of 
civil  aviation  and  establishing  a  European  Aviation  Safety  Agency  (Regulation  (EC)  No 
216/2008).  In  addition,  the  proposal  is  in  conformity  to  the  Union  policy  on  the  continuing 
airworthiness of aircraft and aeronautical products, parts, and appliances (Regulation (EC) No 
1321/2014)  and  on  the  implementing  rules  for  the  airworthiness  and  environmental 
certification  of  aircraft  and  related  products,  parts  and  appliances,  as  well  as  for  the 
certification of design and production organisations (Regulation (EC) No 748/2012).  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis of this proposal is Article 31 of the Treaty on the Functioning of the European 
Union (TFEU). 

• 

Subsidiarity (for non-exclusive competence)  

The  subject  of  the  proposal  falls  under  the  EU’s  exclusive  competence.  The  subsidiarity 
principle therefore does not apply. 

• 

Proportionality 

The  proposal  complies  with  the  principle  of  proportionality.  The  Regulation  does  not  go 
beyond what is necessary to achieve the objectives pursued in accordance with Article 5(4) of 
the Treaty on European Union (TEU). 

• 

Choice of the instrument 

Under Article 31 TFEU, ‘Common Customs Tariff duties shall be fixed by the Council on a 
proposal  from  the  Commission’.  A  Council  Regulation  is  therefore  the  appropriate 
instrument. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

In  parallel  with  the  proposal  and  in  accordance  with  Article  4  of  Council  Regulation  (EC) 
No 1147/2002, the Commission is submitting to the Council a report on the application of the 
Regulation. The report, which is based on information received by the Member States for the 
period 2014-2016, concludes that the core rationale for simplification and suspension remains 
valid.  The  administrative  burden  on  economic  operators  and  customs  administrations  is 
reduced considerably. 

According to the outcome of the report, the current Regulation remains relevant and effective 
as  it  reduces  the  administrative  burden  for  the  customs  officials  by  allowing  an  alternative 
procedure  to  special  customs  procedures,  such  as  end-use  authorisation  and  its  customs 
supervision. However, certain provisions of the current Regulation need further clarification 

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concerning  the  authorised  certificates  and  procedures  for  repaired  goods.  In  terms  of 
efficiency, the report has clearly shown that the impact of the use of the current Regulation is 
significant for both economic operators and customs administrations. In particular, comparing 
the use of airworthiness certificate with the prescribed time limit for end-use procedure, it is 
apparent  that  the  time  saved  is  equivalent  to  the  time  necessary  for  granting  the  end-use 
procedure. 

• 

Stakeholder consultations 

The Commission organised several consultations informing the business community about the 
envisaged course of action. In particular, the Commission organised several meetings with the 
Association of European Airlines and the Association of Aerospace and Defence Industries.  
Economic  operators  expressed  overall  agreement  with  the  proposal.  Furthermore,  the 
Commission consulted the European Aviation Safety Agency (EASA). Member States were 
informed through the expert group of the Economic Tariff Questions Group (ETQG) and the 
Tariff  and  Statistical  Nomenclature  Section  of  the  Customs  Code  Committee  (CN  sector). 
Member States expressed their support to the Commission's proposal.   

• 

Impact assessment 

No impact assessment has been carried out for this proposal since there are no significant new 
economic, environmental or social impacts and there are no policy choices to be made. 

• 

Regulatory fitness and simplification 

The current Regulation has proven highly beneficial to the EU aeronautics industry (duty-free 
treatment of goods granted on presentation of a certificate) and Member State administrations 
(acceptance  of  a  specific  type  of  certificate,  which  is  less  burdensome  than  suspensive 
customs  regimes  used  previously).  The  positive  impact  on  the  industry  is  reflected  in  the 
gradual increase in 2014-2016 in the value of imports with airworthiness certificates (around 
EUR 11,3 billion  in  2014,  EUR 14,9 billion  in  2015  and  EUR 18,5 billion  in  2016).  The 
Commission  is  submitting  a  report  to  the  Council  on  the  application  of  the  Regulation  (see 
above). 

• 

Fundamental rights 

The proposal has no impact on fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

This proposal has no financial implications. Economic operators in the sector were able to use 
suspensive  customs  regimes  even  before  Council  Regulation  (EC)  No 1147/2002  came  into 
force and the proposal does not introduce major changes. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The proposed measures are to be managed under the integrated tariff of the European Union 
(TARIC) and applied by Member State customs administrations. 

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2017/0324 (NLE) 

Proposal for a 

COUNCIL REGULATION 

temporarily suspending the autonomous Common Customs Tariff duties on certain 
goods of a kind to be incorporated in or used for aircraft, and repealing Regulation (EC) 
No 1147/2002 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 31 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

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By  Council  Regulation  (EC)  No  1147/20021,  the  autonomous  Common  Customs 
Tariff  duties  were  temporarily  suspended  for  certain  parts,  components  and  other 
goods  of  a kind  to  be  incorporated  in,  or  used  for  civil  aircraft,  when imported  with 
airworthiness certificates. That Regulation simplified customs procedures for duty-free 
imports  of  parts,  components  and  other  goods  used  for  the  manufacture,  repair, 
maintenance,  rebuilding,  modification  or  conversion  of  aircraft.  However,  due  to 
extensive  technical  and  legislative  developments  which  have  occurred  since  2002, 
Regulation  (EC)  No  1147/2002  needs  to  be  adapted  and,  in  the  interest  of  clarity,  it 
should be replaced.  

According to information received from the Member States, the temporary suspension 
introduced  by  Regulation  (EC)  No  1147/2002  remains  necessary  in  order  to  achieve 
the objective of alleviating the administrative burden for both the economic operators 
in  the  aircraft  sector  and  for  the  customs  authorities  of  the  Member  States,  as 
importations  under  special  procedures  with  customs  supervision  such  as  end-use, 
inward  processing  or  customs  warehousing  would  be  burdensome.  The  temporary 
suspension should therefore be continued. 

In view of the fact that the prices for parts and components used in the aircraft sector 
are usually much higher than the prices for similar goods used for other purposes, the 
risk  that  the  goods  imported  duty  free  might  be  used  in  other  industrial  areas  and, 
hence, the risk of abuse of the temporary suspension, is very small.  
Commission  Regulation  (EU)  No  748/20122  provides  that  in  order  for  a  part  to  be 
eligible  for  installation  in  a  type-certificated  product,  it  must  be  accompanied  by  an 
authorised release certificate (EASA Form 1) issued by a party authorised by aviation 
authorities  within  the  Union.  Therefore,  the  suspension  of  customs  duties  should  be 
conditional on the submission of an authorised release certificate. 

Council Regulation (EC) No 1147/2002 of 25 June 2002 temporarily suspending the autonomous Common Customs Tariff duties 
on certain goods imported with airworthiness certificates (OJ L 170, 29.6.2002, p. 8). 
Commission  Regulation  (EU)  No  748/2012  of  3  August  2012  laying  down  implementing  rules  for  the  airworthiness  and 
environmental  certification  of  aircraft  and  related  products,  parts  and  appliances,  as  well  as  for  the  certification  of  design  and 
production organisations (OJ L 224, 21.8.2012, p. 1).  

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(5) 

(6) 

In  addition,  equivalent  certificates  issued  by  third  countries  and  certificates  which 
have  been  issued  in  the  framework  of  bilateral  aviation  safety  agreements  with  the 
Union  before  the  establishment  of  the  European  Aviation  Safety  Agency  (EASA) 
should also be accepted as an alternative to the authorised release certificates (EASA 
Form 1). 

Considering that certain certificates are issued in an electronic form only, it should be 
possible  to  submit  certificates  using  either  electronic  data-processing  techniques  or 
other means for the purposes of benefitting from the suspension. 

(7)  Where a certificate cannot be submitted at the time of declaring the good for release 
for  free  circulation,  a  declaration  should  be  provided  by  the  seller  of  the  goods 
containing the certificate reference number in order to allow customs authorities of the 
Member States to check the products which are released for free circulation.   

(8) 

(9) 

Customs  authorities  should  be  able,  at  the  expense  of  the  importer,  to  call  upon  the 
expertise of a representative of the national aviation authorities where they have good 
reason  to  believe  that  certificates  have  been  falsified.  However,  before  taking  such 
action, the customs authorities should take into account the volume of the goods to be 
imported, the amount of the duties that would be payable if the suspension laid down 
in this Regulation did not apply and the risk that the cost of the expert opinion would 
outweigh  the  benefit  to  the  importer  of  the  suspension  of  duties,  in  the  event  that 
according to the expert opinion the rules for the issuing of those certificates have not 
been  infringed,  in  order  to  avoid  creating  unnecessary  burdens  for  the  economic 
operators. 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission to establish a list of the 
headings,  subheadings  and  codes  of  the  Combined  Nomenclature  set  out  in  Council 
Regulation  (EEC)  No  2658/873  under  which  the goods  eligible  for  suspension  under 
this Regulation are classified, to establish a list of certificates which are equivalent to 
the  authorised  release  certificate  EASA  Form  1  and  to  draw  up  a  template  for 
declarations  that  may  be  submitted  to  the  customs  authorities  where  a  certificate 
cannot be submitted at the time of declaring the goods for release for free circulation. 
Those powers should be exercised in accordance with Regulation (EU) No 182/2011 
of the European Parliament and of the Council4. 

(10) 

In view of the extensive changes brought about by this Regulation with regard to the 
goods eligible for the suspension of autonomous customs duties, the authorised release 
certificates  acceptable  and  the  procedures,  as  well  as  in  the  interest  of  clarity, 
Regulation (EC) No 1147/2002 should be repealed,   

HAS ADOPTED THIS REGULATION: 

The autonomous Common Customs Tariff duties laid down in Regulation (EEC) No 2658/87 
for parts, components and other goods of a kind to be incorporated in or used for aircraft and 

Article 1 

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Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs 
Tariff (OJ L  256, 7.9.1987, p. 1). 
Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011  laying  down  the  rules  and 
general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers 
(OJ L 55, 28.2.2011, p.13). 

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parts thereof in the course of their manufacture, repair, maintenance, rebuilding, modification 
or conversion shall be suspended.  

The  Commission  shall,  by  means  of  implementing  acts,  establish  a  list  of  the  headings, 
subheadings  and  codes  of  the  Combined  Nomenclature  set  out  in  Regulation  (EEC)  No 
2658/87  under  which  goods  eligible  for  the  suspension  are  classified.  Those  implementing 
acts shall be adopted in accordance with the examination procedure referred to in Article 4. 

1. 

2. 

Article 2 

In  order  for  goods  to  benefit  from  the  suspension  laid  down  in  Article  1,  the 
declarant  shall  submit an  authorised release certificate  EASA Form 1,  as  set out  in 
Appendix I to Annex I to Regulation (EU) No 748/2012, or an equivalent certificate 
to  the  customs  authorities  when  submitting  the  customs  declaration  for  release  for 
free circulation. The customs declaration for release for free circulation shall contain 
a reference to the certificate reference number.  

The  certificate  shall  be  submitted  using  electronic  data-processing  techniques  or 
other means.  

The Commission shall, by means of implementing acts, establish a list of certificates 
which are deemed to be equivalent to the authorised release certificate EASA Form 
1.  Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 4.  

By way of derogation from paragraph 1, where a certificate cannot be submitted at 
the  time  of  declaring  the  goods  for  release  for  free  circulation,  the  declarant  may 
instead  provide  a  declaration  on  the  commercial  invoice  or  a  document  annexed 
thereto. The declaration shall contain a certificate reference number. In case of goods 
imported  for  repair  or  maintenance  that  have  lost  their  airworthiness  status,  the 
declaration shall refer to the original certificate number. 

The declaration shall be signed by the seller of the goods.  

The declaration shall be drawn up in accordance with a template established by the 
Commission  by  means  of  implementing  acts.  Those  implementing  acts  shall  be 
adopted in accordance with the examination procedure referred to in Article 4.  

Article 3 

Where  the  customs  authorities  have  good  reason  to  suspect  that  a  certificate  submitted 
pursuant  to  Article  2(1)  has  been  falsified,  they  may  request  an  expert  opinion  from  a 
representative  of  the  national  aviation  authorities.  The  importer  shall  bear  the  costs  of  the 
expert opinion.  

When deciding whether to request an expert opinion,  the customs authorities shall take into 
account the volume of the goods to be imported, the amount of duties that would be payable if 
the  suspension  laid  down  in  this  Regulation  did  not  apply  and  the  risk  that  the  cost  of  the 
expert opinion would outweigh the benefit to the importer of the suspension of duties, in the 
event that according to the expert opinion the rules for the issuing of those certificates have 
not been infringed. 

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Article 4 

The Commission shall be assisted by the Customs Code Committee established by Article 285 
of  Regulation  (EU)  No 952/2013  of  the  European  Parliament  and  of  the  Council5.  That 
committee shall be a committee within the meaning of Regulation (EU) No 182/2011. 

Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall 
apply.  

Article 5 

Regulation (EC) No 1147/2002 is repealed. References to the repealed Regulation shall be 
construed as references to this Regulation. 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 6 

It shall apply from [1 March 2018]. 

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

Done at Brussels, 

For the Council 
The President 

5 

Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs 
Code (OJ L 269, 10.10.2013, p.1).  

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

Council  Regulation  temporarily  suspending  the  autonomous  Common  Customs  Tariff 
duties  on  certain  goods  of  a  kind  to  be  incorporated  in  or  used  for  aircraft,  and 
repealing Regulation (EC) No 1147/2002 

2. 

BUDGET LINES 

X 

Proposal has no financial implications 

  Proposal  has  no  financial  impact  on  expenditure  but  has  a  financial  impact  on 
revenue -the effect is as follows: 

(EUR million to one decimal place) 

Budget line 

Revenue 

12 month period, 
starting dd/mm/yyyy 

[Year: 2017] 

Situation following action 

Budget line 

This proposal has no financial implications. Economic operators in this sector were still able 
to  make  use  of  the  suspensive  customs  regimes  (such  as  "inward  processing",  "end-use", 
"warehousing" procedures) even before Council Regulation (EC) No 1147/2002 was in force 
and the current proposal does not bring major changes to the existing legislation.  

For  information  purposes,  the  estimated  customs  duties  that  correspond  to  the  volume  of 
imports  in  the  EU  with  "airworthiness  certificates"  for  the  year  2016  would  amount  to  560 
million EUR.   

3. 

ANTI-FRAUD MEASURES 

Article  3  of  the  Regulation  provides  that  the  customs  authorities  may  request  an  expert 
opinion  from  a  representative  of  the  national  aviation  authorities  at  the  expense  of  the 
importer where they have reason to believe that certificates have been falsified. 

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