CELEX: 51973PC1240
Language: en
Date: 1973-07-25 00:00:00
Title: RECOMMANDATION FOR A COUNCIL DECISION to conclude an International Convention for the simplification and harmonization of customs procedures (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1240
Vol. 1973/0232
 ---pagebreak--- Disclaimer
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                             COM(73)1240   final
                                                             Brussels , 25 July 1973
                       RECOMMANDATION FOR A COUNCIL DECISION
                 to conclude an International Convention for the
                         simplification and harmonization
                               of customs procedures
                   ( submitted to the Council "by the Commission)
  COI.î(73 ) 1240 final
 ---pagebreak---                   He commendation for a Council Decision
                  to conclude an International Convention
                  for the simplification and hairmonisation
                            of customs procedures
EXPLANATORY MEMORANDUM
1 , Introduction
              A draft International Convention for the simplification and
    harmonisation of customs - procedures has been prepared by the Customs
    Co-operation Council ( C.C.C. ). Within the Comnunity this Convention has
    been the subject of a Recommendation for a Council Decision ( doc .
    C0M(73 ) 4-60 final of 28 March 1973 , R/977/73 ( COMER 1^6 ) of 12 April
    1973 ).
              The C.C.C. decided on 18 May 1973i at their meeting in KYOTO ,
    that the Convention would be open for signature by the contracting
    parties until 30 June 197^-, at their offices in Brussels . After that
    date it would be open for their accession ,
2# Principal-characteristics of the draft Convention
              First , reference 'must be made - to .documents COM ( 73 ), .^0 ,
    R/977/73 mentioned above . Also , in relation to ,£he situation . prior
    to the KYOTO meeting , there has been the following development :
    - the notion of a single customs' territory t for the. purposes of
      a customs or economic union formed by the contracting parties ,
      has been confirmed by the C.C.C# ;
                                       -■ κ
    - the C.C.C. has decided to add to Article 11 of the Convention
      the following paragraph :
 ---pagebreak---              "The provisions of paragraph 1 of this Article shall
             also apply to the Customs and. Economic Unions referred
             to in Article 9 of this Convention insofar as the obli­
            gations arising from the instruments establishing such
            Customs ar Economio Unions require the competent bodies t
            thereof to contract in their own name . However , such
            bodies shall not have the right to vote ,"
It follows that the Community may become a contracting party to the
Convention .
Scope of action to be talcen by the Community in concluding the Convention
3.1 The draft Convention is a direct result of the Common Commercial
    Policy ( cf, doc , COM ( 73 ) ^60 final , R/977/73 )* Under the pro­
    visions of Articles 113 and 11 ^ of the EEC Treaty only the
    Community has the competence to conclude this Convention .
    Nevertheless , the Committee of Permanent Representatives ( 685th
    meeting of 8/9 Hay 1973 ) decided that the Convention should be
    signed by Member States and by the . Community concomitantly. The
    Commission representative has noted this decision . He endorsed ,
    however , the point of view espressed by his institution in the
    Recommendation for a Council Decision on the negotiation of an
    International Convention for the simplification and harmonisation
    of customs procedures ( doc , COM ( 73 ) ^60 final , and which appears
    to him to be the onlyone in conformity with the Treaty , from a
    legal viewpoint , and the most valid from a practical standpoint
    ( vide . Summary Report dated 10 May 1973 °f "the COREPER meeting ),
3.2 The Community may become a contracting party to the said Convention
    under the terms of Article 11 thereof :
    - by signing it without reservation of ratification ;
    - by lodging an instrument of ratification after having signed
       it subject to reservation of ratification     or
    - by acceding to it.
 ---pagebreak--- 3.3 Each of the contracting pscrtiss must specify at . the . time , of '
       signature ( or of ratification ) of the Convention ( or of accession
       thereto ), the Annex or Annexes which it accepts , it being understood
       that it must accept at least one Annex* It may later motify the
      Secretary General of the C.C.G. that it' accepts one or several
      further Annexes .
      For reasons enumerated in document COM(73 ) ^60 final , ( R/977/73 ) ,
      and in particular in the Annex thereto at point 2 , the Annex
      concerning customs warehouses may' be accepted and in consequence
      appears in the Annex of this document .             !  >
   '- On the other hand , tH is' Annex relating to drawback - ( cf. doc , COM
      ( 73 ) ^-60 final , Annex I C = Annex V of C.C,C . doc , 19.^10 ) appears
      to be not acceptable by the Community for reasons given in the
      abovementioned document .
      As far the Annex on temporary admission is concerned ( cf . doc .
      COM ( 73 ) ^60 final , Annex X d = Annex IV of C.C.C , doc , 19.^10 ),
      at the present time this text is in line with options taken in
      the first draft of a proposal for a Council Directive concerning
      the harmonisation of provisions laid down by law , regulation or
      administrative action in respect of a temporary admission procedure
      ( doc , GUD/867/72 Rev. 2 of 2k May 1973 )* However , a General re­
      servation must be maintained at this stage until the time of the
      adoption of the Community Directive by the Council in order to
      avoid undertaking , from now onwards , Community commitments in
      this sphere .
3 .^ The contracting parties which form a customs or economic union shall
      motify the Secretary General of the C.C.C. that , for the application
      of an Annex specified in the Convention , their territories shall be
      considered as a single territory ( Article 9 of the Convention ).
      Although such a notification may not seem in the first instance to
      be indiepensible for the application of the Annex concerning customs
      warehouses, it must nevertheless be emphasised that this procedure
      is applicable throughout the whole of the Community customs
      territory.
                                                                     ./•
 ---pagebreak--- Conclusion
The Commission recommends to the Council , by virtue of Articles
113 and llVof the ESC Treaty ,
- the conclusion , in the name of the Community , of the International
  Convention for the simplification and harmonisation of customs
  procedures ( including the Annex concerning customs warehouses )
  the text . of which is annexed to this document ,
- the notification , to the Secretary General of the C.C,C « ,, that ,
  for the application of the Annex concerning customs warehouses ,
  the customs territories of the Member States of the European
       /
  Economic Community shall be considered as a single territory .
 ---pagebreak---                         Recommendation for a Council Decision*
                        to conclude an International Convention
                        for the simplification and harmonisation
                             of customs procedures#
The Council of the European Communitiesj
Having regard to the Traty establishing the European Economic Community ,
aad in particular Article 113 thereof ,
Having regard •feo: the Recommendation' of the Commission j
          ■                            ■ ■  .  V.            s
Whereas the conclusion of 'an' International Convention negotiated by the
Customs Cooperation Council must perrriit of a simplification' an:S a "Har­
monisation of Customs procedures and iaay efficaciously contribute to: the
development of International trade#
Whereas it is thus considered opportune to conclude such a Convention
HAS DECIDED :
                               Article 1
                  \
     There shall be concluded , in the name of the Community , the
International Convention for the simplification and harmonisation
of customs prooedureSa the text of which is annexed to this Decision#
 ---pagebreak---                                      – 2 *•
                                 Article 2
    The President of the Council shall be authorised to designate the
-persons competent to sign the Convention referred to in Article 1 ,
 and to confer on their the necessary powers to effect the participation
 of the Commission .
                                 Article 3
    The Secretary General of the Customs Cooperative Council shall be n
 notified that , for the application of the Annex of the Convention referred
 to in Article 1 concerning customs warehouses , the customs territories
 of the Member States of the European Economic Community shall be con­
 sidered as a single territory .
    Done at Brussels ,                  By the Council
                                        Président
 ---pagebreak---                           INTERNATIONAL CONVENTION
                  ON THE SIMPLIFICATION  AND HARMONIZATION
                          OF CUSTOMS  PROCEDURES
                                  PREAMBLE
        The CONTRACTING PARTIES to the present Convention ,
established under the auspices of the Customs Co-operation Council
Noting that divergences between national Customs procedures can
        hamper international trade and other international exchanges
Considering that it is in the interests of all countries to promote
        such trade and exchanges and to foster international
        co-operation ,
Considering that simplification and harmonization of their Customs
        procedures can effectively contribute to the development of
        international trade and of other international exchanges ,
Convinced that an international instrument proposing provisions
        which countries undertake to apply as soon as they are able
        to do so would lead progressively to a high degree of
        simplification and harmonization of Customs procedures , which
        is one of the essential aims of the Customs Co-operation
        Council ,
Have agreed as follows :
                                 CHAPTER I
                                Definitions
                                 Article 1
        For the purposes of this Convention :
( a ) the term " the Council " means the Organization set up by the
      Convention establishing a Customs Co-operation Council , done
      at Brussels on 15 December 1950 ;
( b ) the term " Permanent Technical Committee " means the Permanent
      Technical Committee of the Council ;
( c ) the term " ratification " means ratification , acceptance or
      approval .
                                                                   1/ 1 .
 ---pagebreak---                                    APPENDIX 1
                                 CHAPTER   II
                           Scope of the Convention
                       and structure   of the Annexes
                                  Article 2
         Each Contracting Party undertakes to promote the simplifica­
tion and harmonization of Customs procedures and , to that end , to
conform , in accordance with the provisions of this Convention , to
the Standards and Recommended Practices in the Annexes to this
Convention .     However , nothing shall prevent a Contracting Party
from granting facilities greater than those provided for therein ,
and each Contracting Party is recommended to grant such greater
facilities as extensively as possible .
                                  Article 3
         The provisions of this Convention shall not preclude the
application of prohibitions or restrictions imposed under national
legislation .
                                  Article 4
         Each Annex to this Convention consists , in principle , of :
( a ) an introduction summarizing the various matters dealt with in
       the Annex ;
( b ) definitions of the main Customs terms used in the Annex ;
( c ) Standards , being those provisions the general application of
       which is recognized as necessary for the achievement of
       harmonization and simplification of Customs procedures ;
( d ) Recommended Practices , being those provisions which are
       recognized as constituting progress towards the harmonization
       and the simplification of Customs procedures , the widest
       possible application of which is considered to be desirable :
( e ) Notes , indicating some of the possible courses of action to
       be followed in applying the Standard or Recommended Practice
       concerned .
1/ 2 .
 ---pagebreak---                             APPENDIX 1
                              Article 5
        Any Contracting Party which accepts an Annex shall be
deemed to accept all the Standards and Recommended Practices
therein unless at the time of accepting the Annex or at any
time thereafter it notifies the Secretary General of the
Council of the Standard(s ) and Recommended Practice(s ) in
respect of which it enters reservations , stating the differences
existing between the provisions of its national legislation and
those of the Standard(s ) and Recommended Practice(s ) concerned .
Any Contracting Party which has entered reservations may with­
draw them , in whole or in part , at any time , by notification to
the Secretary General specifying the date on which such with­
drawal takes effect .
        Each Contracting Party bound by an Annex shall at least
once every three years review the Standards and Recommended
Practices therein in respect of which it has entered reserva­
tions , compare them with the provisions of its national legisla­
tion and notify the Secretary General of the Council of the
results of that review .
                             CHAPTER III
                  Role of the Council    and of the
                   Permanent Technical Committee
                              Article 6
        The Council shall , in accordance with the provisions of
this Convention , supervise the administration and development
of this Convention . It shall , in particular , decide upon the
incorporation of new Annexes in the Convention .
        To these ends the Permanent Technical Committee shall ,
under the authority of the Council , and in accordance with any
directions given by the Council , have the following functions :
( a ) to prepare new Annexes and to propose to the Council their
      adoption with a view to their incorporation in the
      Conventions
                                                           1/3 .
 ---pagebreak---                                     APPENDIX 1
     ( b ) to submit to the Council proposals for such amendments to
           this Convention or to its Annexes as it may consider
           necessary and , in particular , proposals for amendments to
           the texts of the Standards and Recommended Practices and
           for the upgrading of Recommended Practices to    Standards ;
    ( c ) to furnish opinions on any matters concerning the applica­
           tion of the Convention ;
    ( d ) to perform such tasks as the Council may direct in relation
           to the provisions of the Convention .
                                  Article 7
          For the purposes of voting in the Council and in the
Permanent Technical Committee each Annex shall be taken to be a
separate Convention .
                                 CHAPTER   IV
                          Miscellaneous   provisions
                                  Article 8
          For the purposes of this Convention , any Annex or Annexes
to which a Contracting Party is bound shall be construed to be an
integral part of the Convention , and in relation to that Contract­
ing Party any reference to the Convention shall be deemed to
include a reference to such Annex or Annexes .
                                  Article 9
          Contracting Parties which form a Customs or Economic Union
may state by notification to the Secretary General of the Council
that for the application of a given Annex to this Convention their
territories are to be taken as a single territory . In each
instance where , as a result of such notification , differences
exist between the provisions of that Annex and those of the
legislation applicable to the territories of the Contracting
Parties , the States concerned shall enter a reservation to the
Standard or Recommended Practice in question under Article 5 of
the Convention .
1/4 .
 ---pagebreak---                                APPENDIX 1
                                 .CHAPTER  V
                             Final provisions
                                  Article 10
1.         Any dispute between two or more Contracting Parties
   concerning the interpretation or application of this Convention
   shall so far as possible be settled by negotiation between them .
2.         Any dispute which is not settled by negotiation shall be
   referred by the Contracting Parties in dispute to the Permanent
   Technical Committee which shall thereupon consider the dispute
   and make recommendations for its settlement .
3.         If the Permanent Technical Committee is unable to settle
   the dispute , it shall refer the matter to the Council which
   shall make recommendations in conformity with Article 111(e )
   of the Convention establishing the Council .
4.         The Contracting Parties in dispute may agree in advance
   to accept the recommendations of the Permanent Technical
   Committee or Council as binding .
                                 Article 11
1.         Any State Member of the Council and any State Member of
   the United Nations or its specialized agencies may become a
   Contracting Party to this Convention :
   ( a ) by signing it without reservation of ratification ;
   ( b ) by depositing an instrument of ratification after signing
         it subject to ratification ; or
   ( c ) by acceding to it .
2*         This Convention shall be open until 30 <June 1974
   for signature at the Headquarters of the Council in Brussels
   by the States referred to in paragraph 1 of this Article .
   Thereafter , it shall be open for their accession .
3.         Any State , not being a Member of the Organizations
   referred to in paragraph 1 of this Article , to which an
   invitation to that effect has been addressed by the Secretary
   General of the Council at the Council 's request , may become a
   Contracting Party to this Convention by acceding thereto after
   its entry into force .
                                                               1/ 5 .
 ---pagebreak---                                     APPENDIX 1
4.           Each State referred to in paragraph 1 or 3 of this
     Article shall at the time of signing , ratifying or acceding to
     this Convention specify the Annex or Annexes it accepts , it
     being necessary to accept at least one Annex . It may
     subsequently notify the Secretary General of the Council that
     it accepts one or more further Annexes .
5. •         The instruments of ratification or accession shall be
     deposited with the Secretary General of the Council .
6.           The Secretary General of the Council shall notify the
     Contracting Parties to . this Convention , the other signatory
     States , those States Members of the Council that are not
     Contracting Parties to the Convention , and the Secretary
     General of the United Nations of any new Annex that the Council
     may decide to incorporate in this Convention . Contracting
     Parties accepting such a new Annex shall notify the Secretary
     General of the Council in accordance with paragraph 4 of this
     Article .
7.           The provisions of paragraph 1 of this Article shall also
     apply to the Customs and Economic Unions referred to in
     Article 9 of this Convention insofar as the obligations arising
     from the instruments establishing such Customs or Economic
     Unions require the competent bodies thereof to contract in their
     own name . However , such bodies shall not have the right to vote .
                                 Article 12
1.           This Convention shall enter into force three months after
     five of the States referred to in paragraph 1 of Article 11
     thereof have signed the Convention without reservation of
     ratification or have deposited , their instruments of ratification
     or accession .
2.           For any State signing without reservation of ratification ,
     ratifying or acceding to this Convention after five States have
     signed it without reservation of ratification or have deposited
     their instruments of ratification or accession , this Convention
     shall , enter into force three months after the said State has
     signed without reservation of ratification or deposited its
     instrument of ratification or accession .
3.           Any Annex to this Convention shall enter into force three
     months after five Contracting Parties have accepted that Annex .
4 ..         For any State which accepts an Annex after five States
     have accepted it , that Annex shall enter into force three months
     after the said State has notified its acceptance .
1/ 6 .
 ---pagebreak---                               APPENDIX 1
                              Article 13
1.        Any State may , at the time of signing this Convention
   without reservation of ratification cr of depositing its
   instruments of ratification or accession , or at any time
   thereafter , declare by notification given to the Secretary
   General of the Council that this Comment ion shall extend to all
   or any of the territories for whose international relations it
   is responsible . Such notification shall take effect three
   months after the date of the receipt thereof by the Secretary
   General of the Council . However , the Convention shall not
   apply to the territories named in the not if ication before the
   Convention has entered into force for the State concerned .
2,        Any State which has made a notification under paragraph 1
   of this Article extending this Convention to any territory for
   whose international relations it is responsible may n^tjLfQp., the
   Secretary General of the Council , under the procedure of w      ^
   Article 14 of this Convention , that the territory in question
   will no longer apply the Convention .
                              Article 14
1.        This Convention is of unlimited duration but any
   Contracting Party may denounce it at any time after the date
   of its entry into force under Article 12 thereof .
2.        The denunciation shall be notified by an instrument in
   writing , deposited with the Secretary General of the Council .
3.        The denunciation shall take effect six months after the
   receipt of the instrument of denunciation by the Secretary
   General of the Council .
4.        The provisions of paragraphs 2 and 3 of this Article
   shall also apply in respect of the Annexes tdf this Convention ,
   any Contracting Party being entitled , at any time after the
   date of their entry into force under Article 12 of the Conven­
   tion , to withdraw its acceptance of one or more Annexes . Any
   Contracting Party which withdraws its acceptance of all the
   Annexes shall be deemed to have denounced the Convention .
                              Article   15
1.        The Council may recommend amendments to this Convention .
   Every Contracting Party shall be invited by the Secretary
   General of the Council to participate in the discussion of
   proposals for amendment of this Convention .
                                                             1/ 7 .
 ---pagebreak---                                        APPENDIX 1
2.             The text of any amendment so recommended shall be
     communicated by the Secretary General of the Council to all
     Contracting Parties to this Convention , to the other signatory
     States and to those States Members of the Council that are not
     Contracting Parties to this Convention .
3o             Within a period of six months from the date on which the
     recommended amendment is so communicated , any Contracting Party
     or , if the amendment affects an Annex in force , any Contracting
     Party bound by that Annex , may inform the Secretary General of
     the Council      :
     ( B.) that it has an objection to the recommended amendment , or
     ( b ) that , although it intends to accept the recommended
           amendment , the conditions necessary for such acceptance are
           rot yet fulfilled in its country .
4.             If a Contracting Party sends the Secretary General of the
     Council a communication as provided for in paragraph 3 ( b ) of
     this Article , it may , so long as it has not notified the
     Secretary General of its acceptance of the recommended amend­
     ment , submit an objection to that amendment within a period of
     nine months following the expiry of the six-month period
     referred to in paragraph 3 of this Article .
5.             If an objection to the recommended amendment is stated in
     accordance with the terms of paragraph 3 or 4 of this Article ,
     the amendment shall be deemed not to have been accepted and
     shall be of no effect .
6.             If no objection to the recommended amendment in accordance
     with paragraph 3 or 4 of this Article has been stated , the
     amendment shall be deemed to have been accepted as from the
     date specified below :
     ( a ) if no Contracting Party has sent a communication in
           accordance with paragraph 3 ( b ) of this Article , on the
           expiry of the period of six months referred to in
           paragraph 3 ;
     ( b ) if any Contracting Party has sent a communication in
           accordance with paragraph 3 ( b ) of this Article , on the
           earlier of the following two dates :
             ( i ) the date by which all the Contracting Parties which
                   sent such communications have notified the Secretary
                   General of the Council of their acceptance of the
                   recommended amendment , provided that , if all the
                   acceptances were notified before the expiry of the
                   period of six months referred to in paragraph 3 of
                   this Article , that date shall be taken to be the date
                   of expiry of the said six-month period ;
           ( ii ) the date of expiry of the nine-month period referred
T /0               to in paragraph 4 of this Article .
 ---pagebreak---                             APPENDIX 1
7.        Any amendment deemed to be accepted shall enter into
   force either six months after the date on which it was deemed
   to be accepted or , if a different period is specified in the
   recommended amendment , on the expiry of that period after the
   date on which the amendment was deemed to be accepted .
8.        The Secretary General of the Council shall , as soon as
   possible , notify the Contracting Parties to this Convention
   and other signatory States of any objection to the recommended
   amendment made in accordance with paragraph 3 ( a ), and of any
   communication received in accordance with paragraph 3 ( b ), of
   this Article . He shall subsequently inform the Contracting
   Parties and other signatory States whether the Contracting
   Party or Parties which have sent such a communication raise an
   objection to the recommended amendment or accept it .
                             Article 16
1.        Independently of the amendment procedure laid down in
   Article 15 of this Convention any Annex , excluding its defini­
   tions , may be modified by a decision of the Council . Every
   Contracting Party to this Convention shall be invited by the
   Secretary General of the Council to participate in the dis­
   cussion of any proposal for the amendment of an Annex . The
   text of any amendment so decided upon shall be communicated by
   the Secretary General of the Council to the Contracting Parties
   to this Convention , the other signatory States and those
   States Members of the Council that are not Contracting Parties
   to this Convention .
2.        Amendments decided upon under paragraph 1 of this Article
   shall enter into force six months after their communication by
   the Secretary General of the Council . Each Contracting Party
   bound by an Annex forming the subject of such amendments shall
   be deemed to have accepted those amendments unless it enters a
   reservation under the procedure of Article 5 of this Convention .
                             Article 17 .
1.        Any State ratifying or adceding to this Convention shall
   be deemed to have accepted any amendments thereto which have
   entered into force at the date of deposit of its instrument of
   ratification or accession .
                                                             1/ 9 .
 ---pagebreak---                                         APPENDIX 1
                 Any State which accepts an Annex shall be deemed , unless
        it enters reservations under Article 5 of this Convention , to
        have accepted any amendments to that Annex which have entered
        into force at the dat® on which it notifies its acceptance to
        the Secretary General of the Council .
                                     Article 18
             The Secretary   General of the Council shall notify the
  Contracting Parties        to this Convention , the other signatory States ,
  those States Members       of the Council that are not Contracting Parties
  to this Convention ,       and the Secretary General of the United Nations
  of     :
   ( a ) signatures , ratifications and accessions under Article 11 of
           this Convention ;
   ( b ) the date of entry into force of this Convention and of each
           of the Annexes in accordance with Article 12 ;
   ( c ) notifications received in accordance with Articles 9 and 13 ;
  ( d ) notifications and communications received in accordance with
           Articles 5 , 16 and 17;'
  ( e ) denunciations under Article 14 ;
  ( f ) any amendment deemed to have been accepted in accordance with
           Article 15 and the date of its entry into force ;
  ( g ) any amendment to the Annexes adopted by the Council in
           accordance with Article 16 and the date of its entry into
           force .
                                     Article 19
             In accordance with Article 102 of the Charter of the United
  Nations , this Convention shall be registered with the Secretariat
  of the United Nations at the request of the Secretary General of
  the Council .
             In witness whereof the undersigned , being duly authorized
  thereto , have signed this Convention .
1 / 10 .
 ---pagebreak---                               APPENDIX 1
      Dene at Kyoto , this eighteenth day of May nineteen hundred
and seventy- three , in the English and French languages , both texts
being equally authentic , in a single original which shall be deposited
with the Secretary General of the Council who shall transmit
certified copies to all the States referred to in paragraph 1 of
Article 11 of this Convention .
                                   x
                                X     X
                                                                   1 / 11 .
 ---pagebreak---                     ANNEX CONCERNING CUSTOMS WAREHOUSES
INTRODUCTION
      It is in the nature of international trade practice that in
a great many cases it is not known at the time of importation how
imported goods will finally be disposed of . This means that the
importers are obliged to store the goods for more or less long
periods .
      Where it is intended to re-export the goods , it is in the
importer 's interest to place them under a Customs procedure which
obviates the need to pay import duties and taxes .
      When goods are intended for outright importation , it is
again in the importer 's interest to be able to delay payment of
the import duties and taxes until the goods are actually taken
into home use .
      In ordet to make these facilities available to importers ,
most countries have provided in their national legislations for
the Customs warehousing procedure .
      However , imported goods are not the only goods which may
qualify for Customs warehousing .
      For example , some countries allow goods that are liable to ,
or have borne , internal duties and taxes ( whether of national
origin or previously imported against payment of import duties
and taxes ) to be stored in Customs warehouses in order that the^
may qualify for exemption from , or repayment of , such internal
duties and taxes .
      Similarly , the deposit in a Customs warehouse of goods that
have previously been dealt with under another Customs procedure
or that may qualify , upon exportation , for repayment of import
duties and taxes , makes it possible for the Customs authorities
to grant discharge of such other Customs procedure or to repay
the import duties and taxes , as the case may be , before the goods
are actually re-exported .
      The provisions of this Annex do not apply to :
- the storage of goods in temporary store ( locked premises and
  enclosed or unenclosed spaces approved by the Customs , in which
  goods may be stored pending clearance );
- the storage of goods in free ports and free zones :
                                                           III/ 1 .
 ---pagebreak---                                   APPENDIX 2
- the processing or manufacturing , under Customs supervision , of
    goods conditionally relieved from import duties and taxes in
    premises approved by the Customs ( inward processing warehouses )
DEFINITIONS
        For the purposes of this Annex :
( a ) the term "Customs warehousing procedure " means the Customs
      procedure under which imported goods are stored under Customs
      control in a designated place (a Customs warehouse ) without
      payment of import duties and taxes ;
( b ) the term " import duties and taxes " means Customs duties and
      all other duties , taxes , fees or other charges which are
      collected on or in connection with the importation of godds ,
      but not including fees and charges which are limited in
      amount to the approximate cost of services rendered ;
( c ) the term "Customs control " means measures applied to ensure
      compliance with the laws and regulations which the Customs
      are responsible for enforcing ;
( d ) the term " security " means that which ensures to the satisfac­
      tion of the Customs , that an obligation to the Customs will
      be fulfilled . Security is described as "general " when it
      ensures that the obligations ar"isincf from several operations
      will be fulfilled ;
( e ) the term "person " means, both natural and legal persons , unless
      the context otherwise requires .
PRINCIPLE
1.                                                          Standard
        The Customs warehousing procedure shall be governed by the
provisions of this Annex
CLASSES OF WAREHOUSES
2.                                                          Standard
        National legislation shall provide for Customs warehouses
open to all importers ( public Customs warehouses ) .
                                                            III/ 2 .
 ---pagebreak---                            APPENDIX 2
Note
       In accordance with the provisions of national legislation ,
public Customs warehouses may be managed either by the Customs
authorities or by other authorities or by natural or legal
persons .
3.                                                        Standard
       The right to store imported goods in public Customs ware­
houses shall not be restricted only to importers but shall be
extended to any other persons interested .
4.                                                        Standard
       National legislation shall provide for Customs warehouses
to be used solely by specified persons ( private Customs ware­
houses ) when this is necessary to meet the special requirements
of trade or industry .
ETABLISHMENT OF WAREHOUSES
5.                                                        Standard
       The requirements as regards the construction and layout of
Customs warehouses and the arrangements for Customs control shall
be laid down by the Customs authorities .
Note
       For the purpose of control , the Customs authorities . may , in
particular :
- require that Customs warehouses be double-locked ( secured by
   the lock of the person concerned and by the Customs lock );
- keep the premises under permanent or intermittent supervision ;
- keep , or require to be kept , accounts of goods warehoused ( by
   using either special registers or the relevant declarations ),
   and
- take stock of the goods in the warehouse from time to time .
MANAGEMENT OF WAREHOUSES
6.                                                        Standard
       National legislation shall specify the person or persons
held responsible for the payment of any import duties and taxes
chargeable on goods placed under the Customs warehousing procedure
that are not accounted for to the satisfaction arfTthe Customs
authorities .
                                                           III/ 3 .
 ---pagebreak---                                 APPENDIX 2
7•                                                        Standard
       When security is required to ensure that the obligations
arising from several operations will be fulfilled , the Customs s
authorities shall accept a general security .
8.                                       .    Recommended Practice
       The amount of any security should be set as low as possible
having regard to the import duties and taxes potentially
chargeable .
9.                                            Recommended Practice
       The Customs authorities should waive security where the
warehouse is under adequate Customs supervision , in particular
where it is Customs-locked .
10 .                                                      Standard
       The Customs authorities shall lay down the requirements
as regards the management of Customs warehouses , and arrangements
for storage of goods in Customs warehouses and for stock-keeping
and accounting shall be subject to the approval of the Customs
authorities .
GOODS ALLOWED TO BE WAREHOUSED
11 .                                          Recommended Practice
       Storage m public Customs warehouses should be allowed
for all kinds of imported goods liable to import duties and taxes
or to restrictions or prohibitions other than those imposed on
grounds of public morality or order , public security , public
hygiene or health , or for veterinary or phytopathological
considerations , or relating to the protection of patents , trade
marks and copyrights , irrespective of quantity , country of
origin , country whence arrived or country of destination .
       Goods which constitute a hazard , which are likely to affect
other goods or which require special installations should be
accepted only by Customs warehouses specially designed to receive
them .
12 .                                                      Standard
       The kinds of goods which may be stored in private Customs
warehouses shall be specified by the competent authorities in
the authority granting the benefit of the Customs warehousing
procedure or in an appropriate provision .
                                                          III/ 4 .
 ---pagebreak---                              APPENDIX 2
13 .                                           Recommended Practice
        Storage in Customs warehouses should be allowed for goods
which are entitled to repayment of import duties and taxes when
exported , so that they may qualify for such repayment immediately ,
on condition that they are to be exported subsequently .
14                                             Recommended Practice
        Storage in Customs warehouses , with a view to subsequent
exportation or other authorised disposal , should be allowed for
goods under the temporary admission procedure , the obligations
under that procedure thereby being discharged .
15                                             Recommended Practice
        Storage in Customs warehouses should be allowed for goods
intended for exportation that are liable to , or have borne ,
internal duties or taxes , in order that they may qualify for
exemption from , or repayment of , such internal duties and taxes ,
on condition that they are to be exported subsequently .
ADMISSION INTO WAREHOUSES
16 .                                                       Standard
        National legislation shall specify the conditions under
which goods for warehousing shall be produced at the competent
Customs office and a Goods declaration shall be lodded .
AUTHDBISED OPERATIONS
17 .                                                       Standard
        Any person entitled to dispose of the warehoused goods
shall be allowed :
( a ) to inspect them ;
( b ) to take samples , against payment of the import duties and
      taxes where appropriate ;
( c ) to carry out operations necessary for their preservation .
18 .                                                       Standard
        Warehoused goods shall be allowed to undergo usual forms of
handling to improve their packaging or marketable quality or to
prepare them for shipment , such as breaking bulk , grouping of
packages , sorting and grading , and repacking .
                                                            III/ 5 .
 ---pagebreak---                                  APPENDIX 2
DURATION OF WAREHOUSING
19 »                                                      Standard
        The authorised maximum duration of storage in a Customs
warehouse shall be fixed with due regard to the needs of trade
and shall be not less than one year .
TRANSFER OF OWNERSHIP
20 .                                                      Standard
        The transfer of ownership of warehoused goods shall be
allowed .
DETERIORATION ,  LOSS OR DESTRUCTION OF GOODS
21 *                                                      Standard
        Goods deteriorated or spoiled by accident or force majeure
before leaving the warehouse shall be allowed to be cleared for
home use as if they had been imported in their deteriorated or
spoiled state .
22 .                                                      Standard
        Warehoused goods destroyed or irrecoverably lost by
accident or force majeure shall not be subjected to import duties
and taxes , provided that such destruction or loss is duly
established to the satisfaction of the Customs authorities .
        Any waste or scrap remaining after destruction shall be
liable , if-taken into home use , to the import duties and taxes
that would be applicable to such waste and scrap imported in
that state .
23 .                                                      Standard
        At the request of the person entitled to dispose of them ,
any warehoused goods shall be allowed to be abandoned , in whole
or in part , to the Revenue or to be destroyed or rendered
commercially valueless under Customs control , as the Customs
authorities may decide . Such abandonment or destruction shall not
entail any cost to the Revenue .
        Any waste or scrap remaining after destruction shall be
liable , if taken into home use , to the import duties and taxes
that would be applicable to such waste and scrap imported in that
state .
                                                          III/ 6 .
 ---pagebreak---                              APPENDIX 2
REMOVAL FROM WAREHOUSE
24 .                                                      Standard
      Any person entitled to dispose of the goods shall be
authorised to remove all or part of them from warehouse for re-
exportation , home use , removal to another Customs warehouse or
assignment to any other Customs procedure , subject to compliance
with the conditions and formalities applicable in each case .
GOODS TAKEN INTO HOME USE
25 .                                                      Standard
      National legislation shall specify the point in time to be
taken into consideration for the purpose of determining the value
and quantity of goods removed from Customs warehouse for home use
and the rates of the import duties and taxes applicable to them .
GOODS NOT REMOVED FROM WAREHOUSE
26 .                                                      Standard
      National legislation shall specify the procedure to be
followed where goods are not removed from Customs warehouse within
the period laid down .
27 .                                          Recommended Practice
      When goods not removed from Customs warehouse are sold by
the Customs , the proceeds of the sale , after deduction of the
import duties and taxes and all other , charges and expenses
incurred , should either be made over to the person(s ) entitled
to receive them , when this is possible , or be held at their
disposal for a specified period .
INFORMATION CONCERNING WAREHOUSES
28 .                                                      Standard
      The Customs authorities shall ensure that all relevant
information regarding the Customs warehousing procedure is readily
available to any person interested .
                                    χ
                                 X      X
                                                          III/ 7 .