CELEX: 51994PC0325
Language: en
Date: 1994-07-20
Title: Proposal for a COUNCIL DECISION accepting on behalf of the Community Annexes E.7 and F.4 to the International Convention on the Simplification and Harmonization of Customs Procedures

COMMISSION OF THE EUROPEAN COftfllUNITIES
                                                                                 C0M(Q4) 325 final
                                                                                 Brussels, 20.07.1994
                                                                                 94/0177 (ACC)
                                                             Proposal for a
                                                            COUNCIL DECISION
                                    accepting on behalf of the Community Annexes E.7 and F.4 to the
                                    International Convention on the Simplification and Harmonization
                                                         of Customs Procedures
                                                    (presented by the Commission)
  &•»-! '.-"/-.ar-ffi
        «•rf^r\ ,i ". M ^ ~ Û
   |fi#!1#3i
     lift "£'*&£•& VsS!
Ètï.
 ---pagebreak---                            EXPLANATORY MEMORANDUM
 1.  Council Decision 75/199/EEC made the Community a Contracting Party to the
     International Convention on the Simplification and Harmonization of Customs
    Procedures, known as the Kyoto Convention.
2.   Subsequent Council decisions have accepted on behalf of the Community the
    following eighteen annexes to the Convention. A.1, A.2, B.l, B.2, B.3, C l , D.l,
    D.2, E. 1, E.3, E.4, E.5, E.6, E.8, F. 1, F.2, F.3 and F.6.
3.  In its present form the Kyoto Convention has thirty-one annexes; thirteen of them,
    therefore, have still not been accepted by the Community, which has nevertheless in
    the interim incorporated most of the relevant provisions into its customs legislation.
    Acceptance is therefore very much a formality.
4.  Article 5 of the Convention allows the Community to make acceptance of the
    annexes subject to reservations stating the differences between the provisions of its
    own legislation and those of certain Standards and Recommended Practices in the
    annexes concerned.
5.  Commission officials and representatives of the Member States have jointly carried
    out a full examination of both annexes, in the Committee for Customs Procedures
    with Economic Impact for Annex E.7 and the Customs Legislation Committee
    (International Organizations) for Annex F.4; they took into account developments in
    Community customs legislation, including the Community Customs Code and its
    implementing Regulation.
6.  The Committees' conclusions are set out in the appendices to Annexes I and II to
    this proposal.
7.  Adoption of the Decision by the Council will not affect the Community budget.
CONCLUSION
The Commission proposes that the Council:
    adopt Annexes E.7 and F.4 to the International Convention on the Simplification
    and Harmonization of Customs Procedures;
    designate the person empowered to notify the Secretary General of the Customs
    Cooperation Council of the acceptance on behalf of the Community of Annexes E.7
    and F.4, subject to the stated reservations.
                                       -I
 ---pagebreak---                                  Proposal for a Council Decision
                                             of
       accepting on behalf of the Community Annexes E.7 and F.4 to the International
        Convention on the Simplification and Harmonization of Customs Procedures
                                            (94/. ./EC)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty estrablishing the European Community, and in particular its
articles 113 and 228, paragraph 2,
Having regard to the proposal from the Commission,
Whereas, under Decision 75/199/EEC of the Councill, the Community has concluded
the international convention on the simplification and harmonization of customs
procedures (Kyoto Convention);
Whereas the Annexes to the said Convention concerning the duty-free replacement of
goods and customs formalities in respect of postal traffic can be accepted by the
Commmunity;
Whereas it is appropriate, however, to accompany this acceptance with certain
reservations in order to take account of the special requirements of the customs union
and of Community customs legislation;
HAS DECIDED AS FOLLOWS :
                                             Article 1
1.       The following annexes to the International Convention on the Simplification and
         Harmonization of Customs Procedures are hereby accepted on behalf of the
         Community, subject to the reservations indicated:
         - Annex E.7 concerning the duty-free replacement of goods (Annex I to the
            present decision) with a general reservation and reservations with regard to
            Standards 3, 9 and 20 and Recommended Practises 11,13,16, 17 and 25.
         - Annex F.4 concerning the customs formalities in respect of postal traffic
            (Annex II to the present decision) with a general reservation and reservations
            with regard to Standards 19 and 26 and Recommended Practises 23, 24 and
            25.
2.       The texts of Annexes and the reserves expressed by the Community are contained
         at Annexes I and II.
^ J n o L 100 du 21.4.1975, p. 1
                                                >
 ---pagebreak---                                        Article 2
The President of the Council shall designate the person entitled to notify the Secretary
General of the Customs Cooperation Council of the acceptance, on behalf of the
Community, of the Annexes referred to in Article 1, together with the reservations
indicated in that Article.
Done at Brussels,
                                                   For the Council
                                                   The President
                                    - L -
 ---pagebreak---                                           ANNEXI
                                        ANNEXE.7
                      concerning the duty-free replacement of goods
                                        Introduction
In most countries, national legislation contains provisions under which goods used to
make products for export are not required to bear duties and taxes.
The drawback procedure and temporary admission for inward processing allow a refund
of, or conditional relief from, import duties and taxes to be grant ed in respect of foreign
goods used to obtain exported products.
In the case of the duty-free replacement of goods procedure, the subject of the present
Annex, the technique employed is to grant exemption from import duties and taxes for
goods equivalent to those which were in free circulation and were processed into
products exported from the Customs territory.
However, application of this procedure may be made subject to the condition that the
importation of goods equivalent to those incorporated in the products previously
exported is regarded by the competent authorities as beneficial to the national economy.
Products manufactured from goods admitted free of import duties and taxes under this
procedure may be put on the home market. Should they be exported, the duty-free
replacement of goods procedure could again become applicable.
                                         Definitions
For the purposes of this Annex:
(a) the term "duty-free replacement of goods procedure" means the Customs procedure
     which permits the importation, free of import duties and taxes, of goods equivalent
     (i.e., identical in description, quality and technical characteristics) to those which
     were in free circulation and which were processed into products previously
     exported outright;
(b) the term "import duties and taxes" means the Customs duties and all other duties,
     taxes, fees or other charges which are collected on or in connexion with the
     importation of goods, but not including fees and charges which are limited in
     amount to the approximate cost of services rendered;
(c) the term "person" means both natural and legal persons, unless the context
     otherwise requires.
 ---pagebreak---                                           Principle
1.                                                                   Standard
The duty-free replacement of goods procedure shall be governed by the provisions of this
Annex.
                                     Field of application
2.                                                                   Standard
National legislation shall specify the circumstances in which the duty-free replacement of
goods procedure may be granted and shall lay down the requirements which must be met.
Notes
 1.  The circumstances in which the duty-free replacement of goods procedure is allowed
     may be set out in general terms and/or in detail.
2.   The granting of this procedure may be made subject to the condition that the
     importation of goods equivalent to those incorporated in the products previously
     exported is regarded by the competent authorities as beneficial to the national
     economy.
3.   The benefit of the procedure may be reserved to persons established in the Customs
     territory.
3.                                                                   Standard
At importation, goods equivalent to those which were in free circulation and which were
incorporated in the products previously exported shall be afforded total exemption from
import duties and taxes, subject to payment of any duties and taxes repaid or remitted on
the exportation of the products.
Notes
 1.  The exemption from import duties and taxes may be granted in respect of raw
     materials and semi-manufactured products as well as to parts equivalent to those
     incorporated, without further manufacture, in the products exported.
2.   Goods such as catalysts and accelerators or retarders of chemical reactions which,
     on being used to obtain products for exportation with entitlement to duty-free
     replacement of goods, disappear entirely or partially during such use without
     actually being contained in the products for export, may be treated as goods used to
     obtain the said products and granted the same exemption from import duties and
     taxes. However, this exemption does not normally extend to mere aids to
     manufacture such as lubricants.
                                            (.
 ---pagebreak--- 4.                                                  Recommended Practice
The benefit of the duty-free replacement of goods procedure should not be withheld
solely on the grounds that the products are exported to a specific country.
5.                                                              Standard
National legislation shall specify the categories of persons who may receive an
authorization for the duty-free replacement of goods.
Note
The holder of an authorization for the duty-free replacement of goods may be the
exporter, the manufacturer or the owner of the exported products.
6.                                                                     Standard
The benefit of the duty-free replacement of goods procedure shall be granted where it is
possible to ascertain the use of the goods in arriving at the exported products.
Note
In order to ascertain the use of the goods in arriving at the exported products the
Customs authorities may carry out controls during the manufacturing process or may
have recourse to the record kept by the manufacturer of the products to be exported.
     Exportation of products with entitlement to duty-free replacement of goods
(a) Formalities prior to the exportation of the products
7.                                                                     Standard
National legislation shall specify the circumstances in which prior authority is required
for application of the duty-free replacement of goods procedure and the authorities
empowered to grant such authority.
8.                                                              Recommended Practice
Persons who carry on large-scale and continuous operations involving the duty-free
replacement of goods should be granted a general authority covering such operations.
9.                                                                     Standard
The description, quality, technical characteristics and quantity of the various goods which
were in free circulation and are contained in the products to be exported with entitlement
to duty-free replacement of goods shall be determined by the competent authorities on th
basis of the actual conditions under which those products were obtained.
                                           >      -
 ---pagebreak--- 10.                                                            Recommended Practice
In determining the quantities of the various goods contained in the products to be
exported with entitlement to duty-free replacement of goods, the competent authorities
should make allowance for losses and irrecoverable waste deriving from the
manufacturing process.
11.                                                            Recommended Practice
Where products to be exported with entitlement to duty-free replacement of goods have
reasonably constant characteristics and are obtained under clearly defined technical
conditions, the competent authorities should establish standard quantity scales for the
various goods contained in the products to be exported.
(b) Declaration for exportation entitlement to duty-free replacement of goods
12.                                                                  Standard
National legislation shall specify the conditions under which products to be exported with
entitlement to duty-free replacement of goods shall be produced at the competent
Customs office and a Goods declaration (outwards) shall be lodged.
Note
National legislation may provide that the Goods declaration to the exportation of the
products must contain the particulars necessary to enable the Customs to determine the
quantities of the various goods for which exemption from import duties and taxes will be
claimed.
13.                                                            Recommended Practice
Where the competent authorities have not been able to give a ruling on an application for
duty-free replacement of goods, the declarant should be authorized to export the
products concerned without delay provided that the conditions prescribed are met and
without prejudice to the final decision.
14.                                                            Recommended Practice
The national forms used for the exportation of products with entitlement to duty-free
replacement of goods should be harmonized with the Goods declaration (outwards).
(c) Examination of products exported with entitlement to duty-free replacement
      of goods
15.                                                            Recommended Practice
At the request of the declarant, and for reasons which they deem valid, the Customs
authorities should, so far as possible, allow products for exportation with entitlement to
duty-free replacement of goods to be examined on private premises, the expenses
entailed by such examination being borne by the declarant.
                                          - S -
 ---pagebreak--- (d) Authorized destinations of products exported with entitlement to duty-free
      replacement of goods
 16.                                                           Recommended Practice
Provisions should be made to permit products for exportation with entitlement to duty-
free replacement of goods to be placed in free ports or free zones.
 17.                                                           Recommended Practice
Provisions should be made to permit products for exportation with entitlement to duty-
free replacement of goods to be placed in a Customs warehouse with a view to
subsequent exportation.
(e) Certification of exportation with entitlement to duty-free replacement of goods
 18.                                                                Standard
Where products have been exported with entitlement to duty-free replacement of goods,
the Customs authorities shall issue to the declarant a document establishing his
entitlement to import, without payment of import duties and taxes, goods equivalent to
those which were in free circulation and which were contained in the products in
question.
Note
The document issued to the declarant may consist of a copy, duly certified by the
Customs, of the declaration for exportation with entitlement to duty-free replacement of
goods, or may be made out on an appropriate form.
                                  Importation of goods
 19.                                                                Standard
National legislation shall specify' the conditions under which goods which may be
admitted free of import duties and taxes under the duty-free replacement of goods
procedure shall be produced at the competent Customs office and a Goods declaration
shall be lodged.
Note
National legislation may provide that the Goods declaration must contain the particulars
necessary for authorizing exemption from import duties and taxes and that the entitling
document(s) issued by the Customs authorities must be produced in support of that
declaration.
20.                                                                 Standard
The competent authorities shall fix with due regard to the commercial circumstances the
time-limit for the importation of goods which may be admitted free of import duties and
taxes.
                                             M
 ---pagebreak--- 21.                                                                  Standard
Provision shall be made to permit goods which may be admitted free of import duties and
taxes to be imported through a Customs office other than that through which the
products were exported.
22.                                                                  Standard
Provision shall be made to permit goods which may be admitted free of import duties and
taxes to be imported in one or more consignments.
23.                                                                  Standard
Provision shall be made to permit goods covered by several documents establishing
entitlement to importation under the duty-free replacement of goods procedure to be
imported in one consignment.
24.                                                                  Standard
Provision shall be made to permit goods which may be admitted free of impoit duties and
taxes to be imported from a country other than that to which the products were
exported.
25.                                                           Recommended Practice
Provision should be made to permit goods which may be admitted free of import duties
and taxes to be imported by a person other than the exporter of the products, subject to
compliance with the conditions laid down by the Customs authorities.
26.                                                           Recommended Practice
At the request of the declarant, and for reasons deemed to be valid, the Customs
authorities should, as far as possible, allow goods which may be admitted free of import
duties and taxes to be examined on private premises, the expenses entailed by such
examination being borne by the declarant.
27.                                                                  Standard
National legislation shall specify the Customs treatment applicable when products which
have been exported with entitlement to duty-free replacement of goods are re-imported.
        Information concerning the duty-free replacement of goods procedure
28.                                                                  Standard
The Customs authorities shall ensure that all relevant information regarding the duty-free
replacement of goods procedure is readily available to any person interested.
                                         - ic
 ---pagebreak---                                 Appendix I to annex I
          Observations and reservations to be entered by the Community
              in respect of Annex E.7 to the International Convention
         on the Simplification and Harmonization of Customs Procedures
1  General reservation (general observation)
   Community legislation on inward processing covers most of the provisions of this
   Annex. However, in any areas not covered by Community legislation, Member
   States may, if necessary, enter their own reservations.
2. Standard 3
   When import goods are entered under the inward processing arrangements in a
   Member State of the European Community other than the one where the
   arrangement was authorized and the inward processing operations effected, this
   Standard may not be applied unless certain conditions laid down in the Community
   legislation governing inward processing arrangements are met.
   Community legislation on value added tax does not provide for a non-application in
   this case. However, the registered tax-payers concerned generally dispose of a right
   to complete deduction of the VAT due for the imported equivalent goods.
3. Standard 9
   This arrangement is generally granted in the Community on the condition that the
   goods to be imported and the goods used in the processing of the exported product
   must fall within the same code of the Community combined nomenclature, be of the
   same commercial quality and have the same technical characteristics.
4. Recommended Practice 11
   At present Community legislation on inward processing includes standard rates of
   yield for certain products only.
5. Recommended Practice 13
   Community legislation provides for issuing processing authorizations with
   retrospective effect in exceptional, duly documented cases only, and then only if the
   application was made prior to the export declaration in respect of the compensating
   products being accepted.
                                           u
 ---pagebreak--- 6. Recommended Practices 16 and 17
   Under Community legislation there is no entitlement to duty-free replacement of
   goods for compensating products placed in free zones or warehouses until the
   products are actually exported.
7. Standard 20
   Generally speaking, Community legislation allows six months from the expected
   date of exportation of compensating products (extendable by a further six months
   upon application by the holder of the authorization) to complete the importation of
   import goods. However, for certain categories of goods, the time-limits are shorter
   and cannot be extended.
8. Recommended Practice 25
   Community legislation on inward processing stipulates, for certain cases, that
   evidence has to be presented proving that the advantages of the processing
   operations are restricted to the holder of the authorization.
                                        ~\l-
 ---pagebreak---                                           ANNEX II
                                         ANNEX F.4
                Concerning Customs formalities in respect of postal traffic
                                        Introduction
The post has always been one of the most widely used methods of sending not only
greetings and information but also gifts and other goods from one person to another.
The Customs are necessarily involved in international postal traffic since, just as in the
case of goods imported and exported by other means, they have to ensure that the
appropriate duties and taxes are collected, enforce import and export prohibitions and
restrictions, and in general ensure compliance with the laws and regulations which they
are responsible for enforcing.
Because of the special nature of postal traffic, however, the Customs formalities in
respect of items carried by post are somewhat different from those applied to goods
carried by other means. While individual postal items are restricted in size, their numbers
are enormous and, to avoid creating unacceptable delays, special administrative
arrangements are necessary to deal, with them. These are made possible because in
virtually all countries the postal services are furnished by public administrations or
authorities, and the two public bodies involved in postal traffic, the post and the
Customs, co-operate very closely with one another.
In addition to this close co-operation between Customs and postal authorities at the
national level, there is close collaboration at the international level between the Universal
Postal Union (the international organization whose rules and regulations govern postal
traffic) and the Council. These two international organizations have, for example,
established a Contact Committee at which Customs and postal experts meet to discuss
and find internationally acceptable solutions to problems which cannot be resolved
nationally or bilaterally.
                                          Definitions
For the purposes of this Annex:
(a) the term "postal items" means letter-post and postal parcels;
(b) the term "letter-post items" means letters, postcards, printed papers, literature for
      the blind and small packets described as letter-post items in the Acts of the Universal
      Postal Union currently in force;
      Note
      According to the Acts of the Universal Postal Union certain letter-post items are
      required to be accompanied by a Customs declaration form C 1 and/or form C 2/CP
      3 as appropriate;
                                             \l
 ---pagebreak--- (c) the term "postal parcels" means items called postal parcels within the meaning of the
     Acts of the Universal Postal Union currently in force.
     Note
     According to the Acts of the Universal Postal Union postal parcels are required to
     be accompanied by a Customs declaration form C 2/CP 3;
(d) the term "the Universal Postal Union" means the inter-governmental organization
     founded in 1874 by the Treaty of Berne as the General Postal Union which, in 1878,
     was renamed the Universal Postal Union (UPU) and which since 1948 has been a
     specialized agency of the United Nations (with headquarters in Berne);
(e) the term "import duties and taxes" means Customs duties and all other duties, taxes,
     fees or other charges which are collected on or in connexion with the importation of
     goods but not including fees and charges which are limited in amount to the
     approximate cost of services rendered;
(f) the term "export duties and taxes" means Customs duties and all other duties, taxes,
     fees or other charges which are collected on or in connexion with the exportation of
     goods but not including fees and charges which are limited in amount to the
     approximate cost of services rendered;
(g) the term "Goods declaration" means a statement made in the form prescribed by the
     Customs by which the persons interested indicate the Customs procedure to be
     applied to the goods and furnish the particulars which the Customs require to be
     declared for the application of that procedure;
(h) the term "clearance" means the accomplishment of the Customs formalities necessary
     to allow goods to be exported, to enter for home use or to be placed under another
     Customs procedure;
(ij) the term "clearance for home use" means the Customs procedure which provides
     that imported goods may remain permanently in the Customs territory. This
     procedure implies the payment of any import duties and taxes chargeable and the
     accomplishment of all the necessary Customs formalities;
(k) the term "examination of postal items" means the physical inspection of goods in
     postal items by the Customs to ascertain their nature, origin, condition, quantity and
     value;
(1) the term "goods in free circulation" means goods which may be disposed of without
     Customs restriction;
(m) the term "Customs control" means the measures applied to ensure compliance with
     the laws and regulations which the Customs are responsible for enforcing;
(n) the term "release" means the action by the Customs to permit goods undergoing
     clearance to be placed at the disposal of the persons concerned;
                                          _m-
 ---pagebreak--- (o) the term "person" means both natural and legal persons, unless the context otherwise
     requires.
                                         Principles
1.                                                                   Standard
The Customs formalities in respect of postal items shall be governed by the provisions of
this Annex.
2.                                                                   Standard
National legislation shall specify the conditions to be fulfilled and the formalities to be
accomplished for Customs purposes in respect of postal items.
3                                                                     Standard
The clearance of postal items shall be carried out as rapidly as possible and Customs
control shall be restricted to the minimum necessary to ensure compliance with the laws
and regulations which the Customs are responsible for enforcing.
                  Relations between the Customs and postal authorities
4.                                                                   Standard
National legislation shall specify the respective responsibilities and obligations of the
Customs and of the postal authorities in connexion with the Customs treatment of postal
items.
Notes
1. The postal authorities have certain obligations and responsibilities which derive
     directly from the Acts of the Universal Postal Union. Other responsibilities and
     obligations of the postal authorities and those of the Customs may be decided upon
     by mutual agreement between the two authorities.
2.   The postal authorities are usually responsible for the conveyance, storage and
     production to the Customs authorities of postal items and, at the request of the
     Customs authorities, may open them for the purposes of Customs control. However,
     in some countries the actual conveyance, storage and production to the Customs
     authorities of postal parcels is undertaken, by agreement, not by the postal
     authorities themselves but by railway authorities and other approved enterprises.
     Such practical arrangements would mean that in these countries certain of these
     obligations may become the responsibility of the approved enterprise.
3.   Whilst not accepting responsibility for the accuracy of Customs declarations (e.g.
     form C 2/CP 3), postal authorities in the country of departure in principle check that
     Customs declarations on postal items are, where appropriate, present, and as far as
     possible take steps to ensure that they are correctly and fully completed. When a
     Customs declaration is obviously incomplete, postal authorities generally draw the
     attention of senders to the relevant Customs regulations and may refuse to accept
     the postal item in question.
                                            i£
 ---pagebreak---      When a consignment consists of a number of items, particularly in the case of
     commercial consignments, the postal authorities usually advise the sender of the
     need to attach separate documents (such as certificates of origin) to each item.
5.                                                                    Standard
The Customs authorities, with any necessary agreement of the postal authorities, shall
designate the Customs offices or other places at which postal items may be cleared.
Notes
 1. Joint Customs/post offices may be set up, or Customs officers may be stationed
     permanently or for certain hours of the day at post offices; in these latter
     circumstances the postal authorities may provide the Customs with office
     accommodation.
2.   Customs offices may be set up at exchange post offices, which are post offices
     responsible for exchanging postal consignments with the appropriate foreign postal
     authorities.
                                Exportation of postal items
(a)     Customs status of goods
6.                                                                    Standard
The exportation of goods in postal items shall be allowed regardless of whether they are
in free circulation or are under a Customs procedure such as Customs warehousing or
temporary admission, provided that, when they are under a Customs procedure, all the
formalities prescribed for that procedure are complied with.
Note
The exportation by post of certain goods, including narcotics, explosives, inflammable
and other dangerous substances, is closely regulated and in many instances is prohibited
by the Acts of the Universal Postal Union.
(b)     Production to the Customs
7.                                                                    Standard
The Customs authorities shall designate the postal items which shall be produced to them
at exportation for the purposes of Customs control.
Note
Under the documentary clearance system used in some countries for postal parcels, only
the documents and not the items themselves are submitted to the Customs in the first
instance; the Customs then indicate to the postal authorities which items must be
produced to them for Customs control.
                                        -IC -
 ---pagebreak--- 8.                                                                    Recommended
Practice
The Customs should not as a general rule require postal items to be produced to them at
exportation for the purposes of Customs control unless they contain goods the
exportation of which must be certified, goods which are subject to export prohibitions or
restrictions or export duties and taxes, or goods having a value exceeding an amount
specified in national legislation, or they are selected for Customs control on a selective or
random basis.
Notes
1. There are various cases in which the exportation of goods may have to be certified,
     such as when goods are being exported temporarily or are being exported on
     drawback or after temporary admission.
2.   Goods being exported by post may be cleared either before or after posting. In
     countries where the usual procedure is clearance before posting, the Customs may
     mark consignments with special stamps or labels, may seal them or may authorize
     exportation on an accompanying document such as the despatch note (CP 2). In
     countries where they are normally cleared after posting, clearance may be carried out
     at an exchange post office or at another post office provided with Customs services,
     where necessary the goods being transferred to such a post office for control
     purposes.
3.   Goods which are subject to export duties and taxes are usually cleared by the
     Customs before posting, the export duties and taxes being paid before the goods are
     passed to the postal authorities for exportation. In some countries, however, the
     postal authorities may collect the export duties and taxes, the accounts being settled
     and payment made as at importation.
(c)      Documents
9.                                                                    Recommended
Practice
A Goods declaration should not be required in respect of the exportation of postal items
unless the item contains goods the exportation of which must be certified, goods which
are subject to export prohibitions or restrictions or subject to export duties and taxes, or
goods having a value exceeding an amount specified in national legislation.
(d) Examination of postal items
10.                                                                   Standard
The Customs authorities shall not as a matter of course examine all postal items at
exportation but shall confine themselves to the carrying out of examinations on a
selective or random basis.
                                         -W
 ---pagebreak---  11.                                                                 Recommended
Practice
Where the Customs authorities exercise their right to examine postal items at
exportation, they should limit the extent of the examinatiori to that deemed necessary to
ensure compliance with the laws and regulations which the Customs are responsible for
enforcing.
                                   Postal items in transit
 12.                                                                 Standard
Postal items shall not be subject to Customs formalities whilst they are being conveyed in
international traffic.
                                 Importation of postal items
(a)     Goods which may be admitted
 13.                                                                 Standard
The importation of goods in postal items shall be allowed irrespective of whether they
are intended to be cleared for home use or for another Customs procedure.
(b)     Production to the Customs authorities
 14.                                                                 Standard
The Customs authorities shall designate the imported postal items which they require to
be produced for the purposes of Customs control.
Note
Under the documentary clearance system used in some countries for postal parcels, only
the documents and not the items themselves are submitted to the Customs in the first
instance; the Customs then indicate to the postal authorities which items must be
produced to them for Customs control.
15.                                                                  Recommended
Practice
The Customs authorities should not, as a general rule, require the following categories of
imported letter-post items to be produced
(i)     postcards, and letters containing personal messages only;
(ii)    literature for the blind;
(iii)   printed papers not subject to import duties and taxes.
16.                                                                  Standard
When imported postal items are produced to the Customs, the latter shall require only
such documents as are necessary for clearance.
                                        -r&
 ---pagebreak--- Notes
 1. The documents involved? may vary from case to case according to the nature of the
     item and its contents, value, etc. They will normally include Customs declaration
     form C 1 or C 2/ CP 3, as appropriate, despatch note CP 2 in the case of postal
     parcels and any necessary certificates of origin, invoices, and so forth.
2.   Various methods may be used for transmitting Customs declaration form C 2/CP 3.
     The form may be attached to the despatch note, glued to the item or tied to it or may
     be enclosed in the item the country of destination so requires. The form may also be
     despatched separately from the item under certain agreed arrangements.
17.                                                                    Standard
Where a Customs declaration form C 2/CP 3 is provided in respect of imported postal
items, the Customs authorities shall require not more than one copy.
(c)     Clearance against Customs declaration forms C 1 and C 2/ CP 3 or against
        a Goods declaration
18.                                                                    Recommended
Practice
When all the information required by the Customs authorities is available from the
relevant Customs declaration form C 1 or C 2/CP 3 and supporting documents, postal
items should be cleared against those documents and no separate Goods declaration
should be required except in the case of commercial consignments having a value
exceeding an amount specified in national legislation and in the case of goods intended to
be cleared under a Customs procedure other than home use.
19.                                                                    Standard
When goods contained in postal items are to be cleared under a Customs procedure other
than home use, a Goods declaration shall be lodged on the form and in the number of
copies prescribed for the Customs procedure in question and the other formalities
required for that procedure shall be complied with.
Note
The Goods declaration may be a national document or it may be an international
document such as an ATA carnet.
20.                                                                    Standard
When a Goods declaration is required in respect of postal items to be cleared for home
use, the form for the Goods declaration to be used shall conform to the official model
laid down by the competent authorities and the other formalities required for that
procedure shall be complied with.
                                              iS
 ---pagebreak--- Notes
 1. The Goods declaration form for home use may be the same as that prescribed for
     importations by other means or it may be a form specially designed for importations
     by post.
2.   The Goods declaration may be completed by the postal authorized, by the addressee
     or by an authorized agent.
(d)     Examination of postal items
21.                                                                   Standard
The Customs authorities shall not as a matter of course examine all imported postal items
but shall confine themselves to the carrying out of examinations on a selective or random
basis.
22.                                                                   Recommended
Practice
Where the Customs authorities exercise their right to examine imported postal; items
they should limit the extent of their examination to that deemed necessary to ensure
compliance with the laws and regulations which the Customs are responsible for
enforcing.
(e)     Assessment and collection of import duties and taxes.
23.                                                                   Recommended
Practice
A system of flat-rate assessment should be applied to goods imported for home use in
postal items, provided that the importation is of a non-commercial nature and that the
aggregate value of the goods does not exceed a figure which should not be less than
US$100. The flat-rate system:
     should lay down rates that cover all types of import duties and taxes;
     should not deprive the goods of the benefit of any duty-free admission facilities to
    which they are otherwise entitled;
     should provide that goods may, if the addressee is present at clearance and so
     requests, be charged at their own appropriate rates of import duties and taxes, in
     which case, however, the Customs authorities may require that all the dutiable and
    taxable goods shall be so charged; and
     should not rule out the possibility for Customs authorities to determine special rates
     for high-duty goods or even to exclude some goods from the benefit of the flat-rate
     system.
                                         -lo
 ---pagebreak--- Note
An importation is usually considered to be of a non-commercial nature when it is
occasional and consists only of goods for personal use or consumption by the addressee
or his family and where there is no suggestion, by their nature or quantity, that they are
imported for commercial purposes.
24.                                                                   Recommended
Practice
Admission free of import duties and taxes should be granted in respect of consignments
containing only personal gifts(l (excluding alcohol, alcoholic beverages or tabacco
goods) the aggregate value of which, determined on the basis of the retail prices in the
country of despatch, does not exceed 30 SDRs. Where several consignments are
despatched at the same time by the same sender to the same addressee, the aggregate
value should be taken to be the total value of all those consignments. The formalities for
obtaining admission free of import duties and taxes should be as simple as possible. It
should be possible to admit such gifts free of economic import prohibitions and restric-
tions.
Notes
 1. A gift is usually considered to be personal if it:
     (a)is sent to a private person by or on behalf of another private person resident
        abroad;
     (b)is occasional; and
     (c) consists only of goods for personal use by the addressee or his family, and the
        nature and quantity of the goods imported are such that the consignment is
         obviously not of commercial nature.
2.   To facilitate the speedy clearance of gift consignments at importation, the sender
     generally indicates on the Customs declaration form C 1 or C 2/CP 3 that the
     consignment is a gift, and states its contents and value.
2 5.                                                                  Recommended
Practice
When imported postal items are released by the Customs authorities to the postal
authorities or an authorized enterprise for delivery to the addressee prior to the payment
of any import duties and taxes chargeable, the Customs authorities should make the
simplest possible arrangements for the collection of such duties and taxes.
Notes
1.   The postal authorities normally collect the import duties and taxes from the
     addressee at the time of delivery and make periodic payment to the Customs, for
     example at the end of each quarter. However, the postal authorities may pay the
     import duties and taxes to the Customs on behalf of the addressee when an item is
     released to them for delivery.
2.   Under certain optional provisions in the Acts of the Universal Postal Union the
     sender of a postal item may, in some cases, undertake to pay all charges including
     import duties and taxes, to which the item is subject on delivery.
                                              2i
 ---pagebreak---                   Repayment or remission of import duties and taxes
26.                                                                    Standard
Where postal items are not delivered to or are refused by the addressee, repayment or
remission of import duties and taxes shall be granted upon request in respect of goods
contained therein provided that the goods are:
(a) re-exported; or
(b) destroyed or abandoned without expense to the Revenue, as the Customs authorities
     may decide.
        Information concerning Customs formalities in respect of postal traffic
27.                                                                    Standard
The Customs authorities shall ensure that all relevant information regarding the Customs
formalities in their country in respect of postal traffic is readily available to any person
interested.
Note
Such information may be made available through the normal media used by the Customs
and also by means of the information services of the postal authorities.
                                       -a -
 ---pagebreak---                                    Appendix I to Annex II
              Reservations and notifications to be entered by the Community
                  in respect of Annex F.4 to the International Convention
             on the Simplification and Harmonization of Customs Procedures
1.   General reservation (general observation)
Community legislation does not cover all of the provisions of this Annex. In areas not
covered by Community legislation, Member States may, if necessary, enter their own
reservations.
2.    Standard 19
Community legislation on the ATA carnet does not cover postal traffic.
3.   Recommended Practice 23
Community legislation does not provide for flat-rate assessment in respect of value-
added tax or excise duty.
4.   Recommended Practice 24
Community legislation provides that goods to an aggregate value not exceeding ECU 45
sent in small non-commercial consignments free of chargefromone private individual to
another within the customs territory of the Community may be admitted free of import
duties and taxes.
In addition to restrictions on alcohol, alcoholic beverages and tobacco goods,
Community legislation sets the following limits on the amounts of certain products which
can be admitted free of import duties and taxes:
Tax-free allowances:
(a) coffee                                         500 grammes
      or
      extracts and essences of coffee              200 grammes
(b) tea                                            100 grammes
      or
      extracts and essences of tea                 40 grammes
Duty- and tax-free allowances:
                                         -U
 ---pagebreak--- (c) perfumes                                      50 grammes
     or
     toilet waters                               0.25 litre
5.   Recommended practice 25
Community legislation provides for duty-free admission of consignments of goods sent
directfroma third country to an addressee in the Community up to an aggregate intrinsic
value of ECU 22 per consignment.
Imports of goods to an aggregate value not exceeding ECU 10 are admitted free of
value-added tax. Member States may extend VAT relief to imports of goods with a value
greater than ECU 10 but not exceeding ECU 22.
Member States may, however, exclude imports of mail order goods from VAT relief
Some Member States have introduced a system for imports of periodicals sold by
subscription which allows third-country publishers to pay on behalf of their subscribers in
the importing Member State the VAT due on the imported periodicals.
6.   Standard 26
Community legislation provides for goods to be abandoned to the Revenue where this is
allowed under national law.
Under the temporary admission rules, however, in duly substantiated exceptional cases
goods may always be abandoned to the Revenue, with the customs authorities' consent.
Procedures for the repayment or remission of excise duties are the responsibility of the
EC Member States.
                                           ?U-
 ---pagebreak---                                                                        ISSN 0254-1475
                                                                COM(94) 325 final
                                                       DOCUMENTS
EN                                                                           1102
                                 Catalogue number : CB-CO-94-337-EN-C
                                                              ISBN 92-77-71796-3
Office for Official Publications of the European Conraunities
Lr2985 Luxembourg
                                                -z<>