CELEX: 51974PC0417
Language: en
Date: 1974-04-04
Title: Proposal for a Council Regulation on the customs treatment applicable to goods returned to the customs territory of the Community (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 417
Vol. 1974/0073
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 ---pagebreak--- COMMISSION Or ÏH3 BfTROPTiÀN COMMI^IÏIidS
                                                       COM(74)417 final
                                                       Brussels , 4 April 1974
                               Proposai for a
                             Council Régulation
          on the customs treatment applicable to goods returned
                 to the customs territory of the Community
               ( submitted to the Council "by the Commission)
   COM(74) 417 final
 ---pagebreak---                           EXPLANATORY IIEi-iORANDUii
         Common Customs Tariff duties are applicable in principle to all
goods coming from third countries which are imported for free circulation
in the customs territory of the Community. The same is true of charges
having on equivalent effect which may be raised on certain goods , as well
as agricultural levies and other import charges laid dovm within the
framework of the common agricultural policy, or under trade systems defined
either in Regulation N° I70/67/EEC (ovalbumin and lactalbumin ), or in
Regulation (ESC ) N® 1059/69 (goods resulting from the processing of agri­
cultural products ).
         For there to be any derogation from this principle it is essential
for a Community act to be made in conformity with the provisions of the
Treaty establishing the European Economic Community. Should such derogation
be required to be laid down autonomously , the appropriate provisions ,
depending on the nature of the goods , are Articles 28 , 43 or 435      "the
aforesaid Treaty .
         Derogation from the application of Common Customs Tariff duties
and other import charges referred to above , appears to be completely
justified when goods coming from third countries , which are entered for
free circulation , are Community goods which ware originally exported from
the customs territory of the Community but which , for various reasons ,
are returned to be latter. In such cases , there is a straight forward
reintegration into the economy of the Community of goods which , complying
with the conditions of Articles 9      10 of "the Treaty , moved freely
there prior to their exportation .
 ---pagebreak---           It is also the case that goods which were originally exported
from the customs territory of the Community under inward processing
arrangements , which generally contain a high proportion of Community
products , (and which do not in consequence comply with the conditions
of Articles 9 and 10 of the Treaty ), may equally "be accorded on eloment
of exemption to avoid charges on the Community products which they contain .
For this purpose , bearing in mind the similarity of the two situations ,
reference must be made to the provisions of the Council Directive of
4 Karch 1969 on the harmonisation of provisions laid down by law, regulation
or administrative action in respect of inward processing , which lay down
the conditions under which compensating products which result from an
inward processing operation may be entered for free circulation in the
                                                     ■1
Community. Thus , there is no risk of the provisions of this arrangement
being misapplied in any way.
          Over and above this case , goods which do not , or no longer ,
fulfill the requisite conditions for free movement within the Community ,
at the time of their exportation from the customs territory of the Community,
must normally be excluded from any measures of exemption . This is particu~
larly the case with agricultural products or goods which result from their
being processed , which ,, when exported , are subject to refunds or other
amounts being granted within the framework of the common agricultural
policy.
          However , in order to reduce the striotness of the application
of such a principle in certain circumstances , it should also be possible ,
 ---pagebreak---                                 - 3 -
while excluding any attempts at speculation , to allow duty free admission
in a similar way when these goods are returned to the economy of the
Community, subject to the condition that amounts granted at the time of
exportation are repaid. Such a facility must be restricted to cases where
it can be established that the returns of goods to the Community is duo
to circumstances beyond the control of the exporter .
           In all instances where total or partial exemption may be accorded
to goods returned to the Community , it is obvious that , since the customs
territory of the Community is a single unit , this exemption must be granted
even where the said goods are entered for free circulation in a Member
State other than that from which they were exported . It is thus desireable
that provision should be made for measures necessary to allow the person
concerned to produce evidence to the competent authorities of the Member
State where the returned goods are declared for free circulation , to
show that the goods are the self-same which were originally exported
from the customs territory of the Community t and that they fulfill the
conditions to enjoy exemption .
           These conditions are laid down in this proposal for a Regulation .
However f although they are themselves quite precise , the provisions of
this proposal for a Regulation nevertheless require a certain number of
supplementary measures in order to ensure their uniform application
throughout the Community, In particular , a Community document must be
drawn up to facilitate the identification of goods should they be brought
back into a kember State other than that drom which they were originally
exported .
                                                  • • • I• • *
 ---pagebreak---           For this purpose , provision has been made , as far as may be
necessary ,- "to resort to the Customs General Procedures Committee ,
the setting up of which was proposed by the Commission in its proposal
for a Council Regulation on the importation free of Common Customs
Tariff duties of educational , scientific or cultural materials (l ).
          In common with Community provisions which have a bearing on
the levying of customs duties and agricultural levies within the meaning
of Article 2 (a ) and (b ) of the Council Decision of 21 April 1970 on
the Replacement of Financial Contributions from Member States by the
Communities own Resources (2 ), the introduction of rules which are
applicable uniformly throughout the whole of the Community to goods
which are returned thereto , has helped to facilitate the control of
the own resources raised .
          This proposal , based in particular on Articles 43 and 235
the EEC Treaty , requires the Opinion of the European Parliament * It
would also be desirable to obtain the Opinion of the Economic and Social
Committee .
(1 ) O.J. N° C 14 of 15.2.74, P. 35
(2 ) O.J. N° L 94 of 28.4.1970 , p. 19
 ---pagebreak---                  Proposal for a Council Regulation on the
              customs treatment applicable to goods returned,
                 to the customs territory of the Community
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Articles 28 , 43 and 235 thereof ,
Having regard to the proposal from the Commission ;
Having regard to the Opinion of the European Parliament ;
Having regard to the Opinion of the Economic and Social Committee ;
Whereas , sa* e where special derogations are decided in accordance with
the provisions of the Treaty , the duties in the Common Customs Tariff are
applicable to all goods imported into the customs territory of the Community ;
 ;hereas the same applies with regs.rd to any charges having equivalent effect
which may be chargeable on certain goods , as well as agricultural levies
and other import charges provided for either under the common agricultural
policy, or under Regulation N° 170/67/2EC of the Council of 27 June 1967 »
on the common system of trade for ovalbumin and lact albumin' and repealing
Regulation N° 48/67/3EC (l ), amended by Regulation (EEC) N° 108l/71 (2 ),
or further , under Regulation (EEC ) K° 1059/ 69 of the Council of 28 Kay
1969 laying down the trade arrangements applicable to certain goods
( 1 ) O.J. IT° 130 of 28.6.1967 , p. 2596
(2 ) O.J. N 8 L 116 of 28.5.1971 , p. 9
 ---pagebreak--- resulting from the processing of agricultural products (l ), as last
amended by Regulation (EEC ) N° 1491/73 (2 ) j
Whereas certain goods which are imported into the customs territory of the
Community to "be entered for free circulation therein have previously teen
exported from such territory j
Whereas where , at the time of their exportation , such goods were covered
by one of the situations defined in Articles 9 and. 10 (l ) of the Treaty,
and where such exportation was not oarried out under outward processing
arrangements , they may be reintroduced into the Community economy free
of customs duties , charges having equivalent effect , agricultural levies or
other charges applicable to them ;
Whereas , in view of the generally high proportion of Community products
contained in goods produced under inward processing arrangements , provision
can be made for a similar exemption in respect of goods which, after being
exported from the customs territory of the Community under such arrangements ,
are returned to it to be entered for free circulation ; whereas provision
must however be made in such cases to ensure compliance with the provisions
of the Council Directive of 4 March 1969 on the harmonisation of provision
laid by law, regulation or administrative action in respect of inward proces­
sing (3 ), which lays down the conditions under which compensating products
resulting from an inward processing operation may be entered for free cij>-
culation in the Community; whereas , therefore , partial exemption is normally
accorded in respect of the goods in question ;
(1 ) O.J. N° L 141 of 12.6.1969 , p. 1
(2 ) O.J. N° L 151 of 7.6.1973 , p. 1
(3 ) O.J. N° L 58 of 8.3.1969 , P. 1
 ---pagebreak---  Whereas , in order to prevent any speculation , exemption must be refused
whore goods returned to the customs territory of the Community are goods
which have teen the subject of customs formalities at exportation in order
 to grant refunds or other amounts due at exportation within the framework
of the Common Agricultural Policy; whereas derogation from this principle
may however be allowed , subject to all measures having been taken in order
to avoid incorrect payment , where evidence is furnished to the competent
authorities that it is on account of circumstances beyond the control
of the exporter that the goods are returned to the customs territory of
of the Community j
Whereas , in as much as the returned goods have been the subject , at the
time of their exportation from the customs territory of the Community , of
a levy or any other amount imposed at exportation within the framework of
the Common Agricultural Policy or under the systems of trade defined in
Regulation N° 170/67/ESC and in Regulation (SEC ) N° 1055/69 t admission of
these goods under return arrangements must entail repayment of amounts
collected under those termsf
Whereas returned goods should bo admitted to the customs territory of the
Community wholly or partly free of duty only on condition that they are
the actual goods which were originally exported and , have not undergone
any treatment while outside the Community other than that necessary to
maintain them in good condition , subject to any exceptions duly substan–
t iat ed :
 ---pagebreak--- Whereas the granting of total or partial exemption must "be subject to the
production of proof that the goods declared for free circulation satisfy
the conditions therefor ; whereas such proof could be made easier for the
person concerned by enabling him to obtain , at the time when the goods
are exported , a document containing the necessary information to enable
the goods to be identified in the event of their being returned to the
customs territory of the Community; whereas , in the absence of such docu­
ment , the customs office where the export formalities in respect of the
goods are completed should be required to communicate all information in
their possession to the customs office where the goods are returned and
entered for free circulation ^
Whereas , to avoid abuses of the arrangements for returned goods , it should
be required that , save in exceptional circumstances , the goods should be
returned to the customs territory of the Community by or at the instance
of the person who exported them , and that the goods should be returned
within a period of three years from the date of their exportation ;
Whereas it should be possible for goods returned to the customs      territory
of the Community to be so returned to a Member State other than      that from
which they were exported in accordance with the conditions laid      down above ;
whereas for this to be possible , however , it would be necessary    that , as
between the Member States concerned , there were no customs duties or charges
having equivalent effect or amounts to be charged under the common agri­
cultural policy or under the trade systems defined in Regulation N° 170/67/'.iEG
and in Regulation (j£EC ) N° 1059/59 ; whereas , therefore , in all cases
where such charges are applicable in trade between l.ember States , the
 ---pagebreak--- provisions of -this Regulation should be applied only xn respect of goods
which are returned for free circulation in the Member State from which
they were originally exported j
Whereas it must be ensured that the provisions of this Regulation are
applied in a uniform manner and for this purpose provision should be made
for a Community procedure under which detailed rules for its application
can be adopted within a reasonable time : whereas the Customs General Procedur
Committee set up by Council Régulation (EEC ; N°             «... of
on the importation free of Common Customs Tariff duties of goods of an
educational , scientific or cultural nature ( l ) should be used as a means
of organizing close and efficient cooperation between the Member States
and the Commission in this field ,
HAS ADOPTUD THIS REGULATION :
                                    Article 1
1.           This Regulation lays down the tariff treatment to be applied to
goods returned to the territory of the Community .
2.           For the purposes of paragraph 1 :
             a ) Returned ft-oods means , save as otherwise provided in Article 2 ,
                 goods which , having been exported outside the customs territory
                 of the Community, are returned to such territory to be entered
                 for free circulation , provided that , when they were exported ,
                 such goods :
( l ) OoJ . N° L
 ---pagebreak---           - satisfied the conditions laid down in Articles 9
             and 10 of the Treaty ;
             or
          ~ were compensating products resulting from inward proces­
             sing operations ;
t>) Tariff treatment means the treatment applicable with regard
    to customs duties and charges having equivalent effect and
    the treatment applicable with regard to agricultural levies
    and other import charges which , by virtue of provisions
    adopted under the common agricultural policy or under the
    trade systems defined in Regulation N° 170/67/lEC and in
    Regulation (SEC ) N° 1059/69 * are chargeable on agricultural
    products and certain goods processed therefrom#
                                           »
                      Article 2
The following shall not be considered to be returned goods :
a ) goods originally exported from the customs territory of the
    Community under outward processing , arrangements j
b ) goods which , at the time of their exportation from the
    customs territory of the Community , have been the subject
    of customs ejqport formalities in order to grant refunds or
    other amounts due at exportation within the framework of
    the common agricultural policy .
 ---pagebreak---                                   • 7 -
2.         By way of derogation from the provisions of paragraph 1 (b ),
subject to it being establirhed that the amounts granted have been repaid .,
or that all measures have been taken by departments concerned for such
sums to be withheld , goods referred to in the said provisions may still
be considered as returned goods which :
           a ) are unable to be entered for home use in the country to
               which they were sent on account of regulations in force
               in that country j ,
           b ) are returned by the consignee as being defective or not in
               accordance with the provisions of the contract relating to
               them ;
           c ) are reimported into the customs territory of the Community
               by reason of any other circumstances beyond the control of
               the exporter , coming within . the procedure referred to in
               Article 13 .
           It must be proved to the satisfaction of the competent authori­
ties as referred to in Article 10 that the goods come within one of the
cases provided for in this paragraph.
3»         The provisions of this Regulation shall only apply to goods which
satisfy the conditions laid down by paragraph 2 if they are entered for
free circulation in a Kember State in which , if they had been directly
imported from the Kember State in which the customs formalities in respect
of their exportation out of the customs territory of the Community were
completed , no compensatory amount of any kind would have been levied or
granted in respect of such importation .
 ---pagebreak---                                  Article 3
1.         Whore , at the time when they were exported from the customs
territory of the Community, the returned goods satisfied the condition
laid down by Articles 9 and 10 of the Treaty establishing the EEC , they
may "be entered for free circulation free of the customs duties , charges having
equivalent effect , agricultural levies or other charges referred to in
Article 1 (2 ) (b ) chargeable thereon.
2.         Where , prior to their exportation from the customs territory
of the Community, the returned goods had been imported for free circulation
under preferential tariff treatment accorded on the basis that the goods
were to be used for a specific purpose , exemption from duty under paragraph 1
shall apply only if they are to be re-imported for the same purpose .
           Where the purpose of the . goods in question is no longer the same ,
the amount of customs duties , charges having equivalent effect , agricultural
levies or other charges referred to in Article 1 (2 ) (b ) chargeable thereon
shall be reduced by the amount levied on the goods when they wore first
imported for free circulation , unless such latter amount is greater .
                                 Article 4
           Where returned goods were first exported from the customs territory
of the Community after completion of inward processing arrangements , they
shall be entered for free circulation in accordance with the provisions of
the Council Directive of 4 Karch 1969 on the harmonisation of provisions
laid down by law , regulation or administrative action in respept of inward
processing. The customs duties , charges having equivalent effect , agricultural
 ---pagebreak---  levies or other charges referred, to in Article 1 ( 2 ) (b ) to be levied,
on such goods shall be    those which would have been chargeable if the said
goods had been entered    for free circulation , in accordance with the provision
of tho said Directive ,   at the time when the formalities in.resped : - of their
exportation out of the    customs territory of the Community were completed , •
                                Article "5
           Uhere , at the time of their exportation from the customs
territory of the Comnunityj returned goods have been the subject of a
levy or any other amount applicable at exportation within the framework
of the common agricultural policy or under trade systems defined in
Regulation N° 170/67/EEC and in Regulation (SFC ) N° 1059/69 * entry for
free circulation of these goods gives the right to repayment of amounts
levied under these terms .
                                Article 6
           The provisiors of Article 3 , 4 and 5 shall apply even where
the returned goods are only part of the goods previously exported from
the customs territory of the Community .
           Tho provisions of Article 3 shall also apply where the returned
goods consist of components or spare parts recognisable as belonging to
a machine , instrument or apparatus previously exported out of the customs
territory of the Community, otherwise than under completion of inward
proce ssing arrangement s .
 ---pagebreak---                                    10 -
                                Article 7
            Articles 3 » 4 a^d 5 shall not apply in respect of goods which
have received treatment other than that necessary to maintain them in good
condition .
            Those Articles shall nevertheless apply to returned goods
having received treatment other than that necessary to maintain them
in good condition , where such goods , after teing exported from the customs
territory of the Community, proved to be defective or unsuitable for
their intended use , provided that either :
            - the goods have undergone such treatment solely with a view
              to being repaired or restored to good condition ,
            – or their unsuitability for their intended use became apparent
              only after such treatment had commenced .
            Where returned goods have undergone treatment permitted under
the previous sub–paragraph , and such treatment would have rendered them liable
to customs duties j charges having equivalent effect , agricultural levies
or other charges referred to in Article 1 (2 ) (b ) if they had been placed
under outward processing arrangements , the rules in force for charging
duty under the said arrangements shall apply.
                                                • • • • •
 ---pagebreak---                                   - 11 ~
                                 Article 8
            To qualify as returned gooas within the meaning of this Regulation t
 goods concerned must be entered for free circulation in the customs terri­
 tory of the Community within three years from the date of their exportation .
 However , this time limit may be exceeded if it is deemed necessary in
 order to take account of exceptional circumstances .
                                 Article 9  .
            The provisions of this Regulation shall apply to returned
 goods only where they are returned to the customs territory of the Commu­
 nity by or at the instance of the original exporter . However , where the
 circumstances warrant it , the competent authorities may permit derogations
 from this rule .
                                 Article 10
 1.         The competent authorities of the Member State where the returned
 goods are entered for free circulation shall be responsible for according
 to such goods the treatment provided for in this Regulation .
 2.         Persons who apply for such treatment to be accorded shall
supply evidence to the competent authorities of all matters of fact on
 which the eligibility of the goods for such treatment depends . Proof
 must be given , in particular , that the goods entered for free circulation
 are those which were exported .
 ---pagebreak---                                        12 -
                                    Article 11
             On application by the person concerned the competent authorities
shall r on completion of the customs formalities on exportation , issue a
document containing such information as shall be necessary to identify
the goods in the event of their being returned to the customs territory
of the Community ,
             Provision may be made for this document to replace all other
customs documents required for the completion of export formalities for
the goods in question .
                                    Article 12
             The competent authorities at the customs office at which the
goods are exported from the customs territory of the Community shall , on
request , communicate to the customs authorities of the customs office
where they are entered for free circulation , all information necesary to
enable the latter to determine whether the goods satisfy the conditions
required in order to bring them within the provisions of this Regulation .
                                    Article 13
              The provisions necessary for the application of Articles 2 (2 ),
4 , 5 » 7 , 9 , 10 , 11 and 12 of this Regulation shall be adopted in accordance
with the    procedure laid down in Article 8 of Regulation (EEC ) N0
 ---pagebreak---                                   ~ 13 ~
                                  Article 14
          This Regulation shall enter into force on
          However , until 1 July 1977 » its application shall be subject
to the following conditions :
          a ) as regards the Community as originally constituted , returned
              goods must have been originally exported from one of the original
              Member States ;
          b ) as regards each of the new Member States , the returned goods
              must have been originally exported from the Member State in
              question .
          This Regulation shall be binding in its entirety and directly
applicable in all Member States .
                                      Done at Brussels ,
                                      For the Council ,
                                      The Président