CELEX: 51993PC0610
Language: en
Date: 1993-11-26
Title: Proposal for a COUNCIL DECISION concerning the amendments to the reservations entered by the EC in respect of some provisions of certain Annexes to the international Convention on the simplification and harmonization of customs procedures

COMMISSION OF THE EUROPEAN COMVIUNITIES
                                                                                      C0MC93) 610 final
                                                                                      Brussels, 26 November 1993
                                                                       Proposal for a
                                                                      COUNCIL DECISION
                                         concerning the amendments to the reservations entered by the EC in respect
                                         of some provisions of certain Annexes to the international Convention on the
                                         simplification and harmonization of customs procedures
                                                               (presented by the Commission)
                        "7'i^j
1
  w_s#^s'-«*-flarf'11 J i ï p i f f ï ^
 ---pagebreak---                         EXPLANATORY MEMORANDUM
                                                                                 Z
 1.  By the terms of Council Decision 75/199/EEC 1 the Community became a
     Contracting Party to the international Convention on the simplification
     and harmonization of customs procedures, known as the 'Kyoto
     Convention'.
 2.  Since this initial Decision the     Council has adopted further Decisions
    accepting eighteen Annexes to        the said Convention, the list of adopted
     Annexes comprising: A . 1 , A . 2 ,  B . 1 , B.2, B.3, C . 1 , D . 1 , D.2, E.1, E.3,
     E.4, E.5, E.6, E.8, F.1, F.2, F.3   and F.6.
 3.  Under the provisions of Article 5(1) of the Kyoto Convention, any
    Contracting Party which accepts an Annex is deemed to have accepted
    all its provisions unless, at the time of accepting or at any time
    thereafter, the Party enters reservations stating the differences existing
    between the provisions of its national legislation and those of the
    Standards and Recommended Practices of the Annex concerned.
 4. By the provisions of Article 5(2) of the Convention, each Contracting
    Party bound by an Annex is required to review, at least once every three
    years, the Standards and Recommended Practices in respect of which is
    has entered reservations. It is understood that, following such
    examination, a Contracting Party may lift or amend its earlier
    reservations or formulate new ones where it considers this necessary.
 5. The Commission departments and Member State representatives
    constituted as the Commission's Customs Legislation Committee
    (International Organizations), have conducted such a review taking into
    account the changes that had been made to the Community's customs
    legislation - particuarly the Community Customs Code 2 - since
    acceptance of the various Annexes.
6.  The outcome of the examination is set out in the Annex attached to this
    proposal for a Council Decision.
7.  The Council's adoption of the Decision will have no repercussions on the
    Community budget.
1   OJ No L 100, 21.4.1975. p. 1.
2   OJ No L 302, 19.10.1992, p. 1
 ---pagebreak--- CONCLUSION
                                                                                3
The Commission proposes that the Council should:
     adopt the amendments to the reservations entered by the Community in
     respect of Annexes A . I , A . 2 , B . 1 , B.2, B.3, C . 1 , D . 1 , D.2, E . I , E.3,
     E.4, E.5, E.6, E.8, F.1, F,2, F.3 and F.6 to the international Convention
    on the simplification and harmonization of customs procedures;
    designate the person authorized to notify the Secretary General of the
    Customs Cooperation Council of the outcome of the examination
    conducted in accordance with the provisions of Article 5(2) of the
    abovementioned Convention.
 ---pagebreak---                                                                   7
                           Proposal for a Council Decision
                                        of ...
 concerning the amendments to the reservations entered by the EC in respect
 of some provisions of certain Annexes to the international Convention on the
 simplification and harmonization of customs procedures
 THE COUNCIL OF THE EUROPEAN COMMUNITIES,
 having regard to the Treaty establishing the European Community, and in
 particular Article 113 thereof,
 having regard to the proposal from the Commission,
 whereas by Council Decision 75/199/EEC 1 the Community became a
 Contracting Party to the international Convention on the simplification and
 harmonization of customs procedures;
 whereas by the above Decision and Council Decisions 77/415/EEC 2 ,
 78/528/EEC^, 80/391/EEÇ 4 , 85/204/EEC 5 . 86/103/EEC 6 , 87/593/EEC 7 ,
87/594/EEC 8 , 88/355/EEC 9 and 88/356/EEC 1 0 , the Community has accepted
eighteen Annexes to the said Convention so far;
whereas under Article 5(1) of the said Convention the Community has
entered reservations on some Standards and Recommended Practices defined
in these Annexes in order to cover the special requirements of the customs
union;
whereas under Article 5(2) of the said Convention, the Community is required
to review, once every three years at least, the Standards and Recommended
Practices in respect of which it has entered reservations and Article 5(1) of
the Convention allows Contracting Parties to enter reservations even after an
Annex has been accepted,
1      OJ No L 100, 21.4.1975, p. 1.
2      OJ No L 166, 4.7.1977, p. 1.
3      OJ No L 160, 17.6.1978, p. 13.
4      OJ No L 100, 17.4.1980, p. 27.
5      OJ No L 87, 27.3.1985, p. 8.
6      OJ No L 88, 3.4.1986, p. 42.
I     OJ No L 362, 22.12.1987, p. 1.
8      OJ No L 362, 22.12.1987, p. 8.
9      OJ No L 161, 28.6.1988, p. 3.
10    OJ No L 161, 28.6.1988, p. 12.
 ---pagebreak---                                                                            -T
HAS DECIDED AS FOLLOWS:
                                        Article 1
The reservations entered by the Community in respect of Annexes A . 1 , A.2,
B.1, B.2, B.3, C . 1 , D . 1 , D.2, E.1, E.3, E.4, E.5, E.6, E.8, F.1, F.2, F.3 and
F.6 of the international Convention on the simplification and harmonization of
customs procedures shall be amended as a result of the review the outcome
of which is set out in the Annex to this Decision.
                                        Article 2
The President of the Council shall designate the person authorized to notify
the Secretary-General of the Customs Cooperation Council of the outcome of
the review referred to in Article 1.
Done at Brussels, ...
                                                      For the Council
                                                      The President
 ---pagebreak---                                     ANNEX
Outcome of the review, conducted by the European Community (EÇ) ir\
accordance with the requirements of Article 5(2) of __the_ international
Convention on the simplification and harmonization..of customs procedures, of
the reservations entered by the EC in respect of the Annexes to the said
Convention
1.    Annex A . 1
      concerning customs formalities prior to the lodgement of the goods
      declaration
1.1   The reservation in respect of Standard 11 shall be lifted.
1.2   The existing reservation in respect of Standard 21 shall be maintained.
2.    Annex_A.2
      concerning the temporary storage of goods
2.1  The present general reservation shall be maintained.
2.2   A reservation worded as        follows shall be   entered    in  respect of
      Recommended Practice 10:
      "Community legislation provides that the customs authority may require
     the person holding the goods to lodge a security w i t h a view to ensuring
     payment of any customs debt which may arise."
2.3  The present wording of the reservation entered               in  respect  of
     Recommended Practice 13 shall be replaced by:
     "Community legislation authorizes goods in temporary storage to be
     subject only to such forms of handling as are designed to ensure their
     preservation in an unaltered state, without modifying their appearance or
     the technical characteristics."
3.   Annex B.1
     concerning clearance for home use
3.1  The present wording of the second paragraph of the general reservation
     shall be replaced by:
     "Community legislation distinguishes between releasing goods for free
     circulation and releasing them for home use. To obtain the release of
     goods for free circulation simply requires customs duty to be paid
     whereas for goods to be released for home use, various other
     provisions, e.g. on taxation, also have to be applied.
     It should also be pointed out that release for free circulation and release
     for home use in the Community generally occur at the same time and in
     the territory of the same Member State."
 ---pagebreak---                                                                      1-
3.2   The existing reservations in respect of Recommended Practices 19 and
      52 shall be maintained.
3.3   The first sentence of the present wording of the reservation in respect
      of Standard 28 shall be replaced by the following sentence:
    • "The Community also applies the provisions of this Standard             if
      declarations are incomplete." (Second sentence unchanged).
4.   Annex B.2
      concerning relief from import duties and taxes in respect of        goods
     declared for home use
4.1  The present general reservation and the present reservations in respect
     of Recommended Practices 20, 27, 32 and 33 and of Standard 34 shall
    . be maintained.
4.2  The present wording of the reservation in respect of Standard 3 shall be
     replaced by:
      "Community legislation only grants the exemption to consignments of
     negligible value if they are dispatched directly from a third country to a
     consignee in the Community."
4.3  In the last sentence of the present wording of the reservation in respect
     of Recommended Practice 10, the words "is accompanied" shall be
     replaced by the words "may be accompanied" (remainder unchanged).
4.4  The present wording of the reservation in respect of        Recommended
     Practice 16 shall be replaced by:
     "The exemption is granted to the substances concerned if they are to be
     used exclusively for non-commercial, medical or scientific purposes."
4.5  A second paragraph worded as follows shall be added to the present
     wording of the reservation in respect of Recommended Practice 18:
     "Member States have the option of excluding dual-use vehicles which
     are used for commercial or professional purposes from the relief granted
     on value added tax."
4.6  The present wording of the reservation in respect of        Recommended
     Practice 19 shall be replaced by:
     "Relief from import duties and taxes on goods covered by Standard 17
     may be made subject to the condition that any customs duties or taxes
     to which the goods are normally liable in their country of departure or
     origin have actually been levied. The period for which the beneficiary
     must continue to o w n or possess the goods after importing them is set
     at twelve months."
 ---pagebreak---  4.7      The present wording of the reservation in respect of Standard 21 shall
          be replaced by:
          "Member States have the option of making relief from value added tax
          on trousseaux and movable property belonging to the person
          transferring his or her residence subject to the condition that any
          customs duties and/or taxes to which the goods are normally liable in
          their country of departure or. origin have actually been levied. The
          exemption ... (remainder unchanged)."
 4.8      The wording of the first subsection of the reservation in respect of
          Recommended Practice 23 should read as follows:
                not earlier than t w o months before the date fixed for the wedding.
                In this case, the relief shall be subject to the lodging of an
                appropriate security for the customs duties whereas this security is
                optional as far as tax exemption is concerned, and ... (remainder
                unchanged)"
4.9      The present wording of the second paragraph and the table in the
         reservation in respect of Standard 28 shall be replaced by:
          "... In addition to the quantitative restrictions on tobacco, alcohol and
         alcoholic beverages, Community legislation lays d o w n , in respect of the
         products listed below, the maximum tax, or duty and tax, allowances
         and the maximum quantities shown opposite each product:
         Exemption from:
         taxes
               (a)coffee                                 500 grams
                    or
                    coffee extracts and essences         2 0 0 grams
               (b) tea                                   100 grams
                    or
                    tea extracts and essences             4 0 grams
        duties and taxes
               (c) perfumes                               50 grams
                    or
                    toilet waters             t           0.25 litre."
4 . 1 0 The beginning of the first sentence of the present reservation in respect
        of Recommended Practice 29 should read as follows:
         "The goods referred to in the Recommended Practice are admitted free
        of import duties and taxes ... (remainder unchanged)."
4.11 The present wording of the reservation in respect of              Recommended
        Practice 35 shall be replaced by:
        "Community legislation provides for the relief referred to in this
        Recommended Practice subject to the materials in question not normally
        being reusable. Relief from duty on these materials is granted subject to
        the further condition that their value is included in the tax base for the
        goods carried."
 ---pagebreak---  5.  Annex B.3
     concerning reimportation in the same state
5.1  The present general reservation and the present reservations in respect
     of Recommended Practices 8 and 24 shall be maintained.
5.2  The reservation in respect of Recommended Practice 11 shall be lifted.
6.   Annex C.I
     concerning outright exportation
6.1  The present reservations (general reservation and in respect           of
     Recommended Practice 10 and Standard 21 ) shall be maintained.
7.   Annex D.I
     concerning rules of origin
7.1  The present reservations in respect of Standard 7 and Recommended
     Practice 10 shall be maintained.
7.2  In the second paragraph of the present wording of the reservation in
     respect of Standard 8, the words "CCC Nomenclature" shall be replaced
     by "Nomenclature of the Harmonized System" (remainder unchanged).
8.  Annex D.2
    concerning documentary evidence of origin
8.1 The present reservations (in respect of Recommended Practices 3. 10
    and 1 2) shall be maintained.
9.  Annex E.1
    concerning customs transit
9.1 The present wording of the general reservation shall be replaced by:
    "Although the Member States of the Community constitute a single
    territory, each Member State has the option to set up simplified transit
    procedures applicable in certain circumstances to goods which are not
    intended to move through the territory of another Member State.
    Member States also have the option to establish amongst themselves,
    via bilateral or multilateral arrangements, simplified procedures which
    comply with criteria established as necessary and are applicable to
    certain traffic or to specific enterprises,"
 ---pagebreak---   10.   Annex E 3
        concerning customs warehouses
  10.1 The present general reservation shall be maintained.
  10.2 A reservation worded as         follows shall be entered   in respect  of
        Recommended Practice 9:
        "Community legislation requires 'appropriate customs surveillance' to be
        ensured within the warehousing procedure.         Independently of the
       surveillance methods used, Member States have the option of requiring
       a security."
  10.3 A reservation worded as follows         shall be entered  in  respect  of
        Recommended Practice 11 :
        "Normally the Community applies the provisions of this Recommended
       Practice but it reserves the right not to do so in exceptional
       circumstances."
  10.4 A reservation worded as        follows  shall be entered  in  respect  of
       Recommended Practice 13:
\       "This Recommended Practice does not apply to value added tax.
       The Member States of the Community are free to decide whether or not
       to allow the repayment of customs duties."
  10.5 A reservation worded as        follows  shall be entered  in  respect  of
       Recommended Practice 15:
       "Whether or not the goods in question are to be exported subsequently,
       Community legislation does not provide for the storage in customs
       warehouses of goods that are liable to, or have borne, internal duties or
       taxes."
  10.6 The present wording of the reservation in respect of Standard 18 shall
       be replaced by:
       "In the Community, import goods may undergo the usual forms of
       handling to ensure their preservation or marketable quality or prepare
       them for distribution or resale.
       In certain circumstances, goods governed by the common agricultural
       policy may be handled only in those ways specifically provided for in
       their case."
  10.7 The present wording of the reservation in respect of Standard 19 shall
       be replaced by:
       "Community legislation on customs warehouses does not fix the
       maximum duration of storage. Nevertheless, in exceptional cases the
       period may be less than one year."
 ---pagebreak---                                                                     1 1
11.   Annex E.4
      concerning drawback
11.1 The present reservations (general reservation and in respect of Standard
      5) shall be maintained.
12.   Annex E.5
      concerning temporary admission subject to re-exportation in the same
      state
12.1 The present general reservation and the present reservations in respect
      of Standard 14 and Recommended Practices 33 and 37 shall be
      maintained.
12.2 A reservation worded as follows shall be entered in respect of Standard
      4:
      "Community legislation does not grant temporary admission for goods
      which, for the purposes of discharging the temporary admission or
      inward processing procedures, have been entered under the customs
      warehouse or free zone procedures prior to being re-exported (free
      zones have been created in Denmark, Germany, Greece, Spain, Ireland,
      Italy, Portugal and the United Kingdom)."
12.3 A reservation worded as        follows  shall be entered  in respect   of
      Recommended Practice 5:
      "Normally the Community applies the provisions of this Recommended
      Practice, but it reserves the right not to do so in exceptional
     circumstances."
12.4 The present wording of the reservation in respect of Standard 23 shall
     be replaced by:
      "In the Member States where free zones exist (Denmark, Germany,
     Greece, Spain, Ireland, Italy, Portugal and the United Kingdom) this
     Standard is applicable only if the goods are introduced into the zones
     with a view to subsequent exportation from the customs territory of the
     Communities."
12.5 Four EC reservations, one each on packings, commercial vehicles,
     containers and pallets, shall be entered in respect of Recommended
     Practice 36. The reservations shall be worded as follows:
     Reservation on packings
     "Community legislation authorizes temporary admission on the basis of
     an oral declaration accompanied by an inventory, for packings bearing
     indelible, non-detachable marks and imported full by a person
     established outside the customs territory of the Community.      Written
     declarations are required for all other types of packings entered under
     the temporary admission arrangements.
     Where reexportation is not in doubt because of commercial usage,
     Community legislation also allows temporary admission without a
     security for mackings imported empty and bearing indelible, non-
     detachable markets.
 ---pagebreak---                                                                          1 e.
      Provision is also made for granting exemptions from the requirement to
      provide a security in respect of packings imported full and subject to a
      verbal declaration accompanied by an inventory, unless an express
      request to the contrary is made to the competent authorities."
      Reservation on commercial road vehicles
      "Community legislation provides that, where there is a serious risk of
      failure to comply with the obligation to re-export a commercial road
     vehicle, the temporary admission procedure applies subject to the
     production of a document of a type laid d o w n in an international
     convention or the lodging of a declaration, and the customs authority
     has the option of requiring a security when the declaration is lodged."
     Reservation on containers
      "For all containers, whether or not approved for carrying goods under
     customs seal, Community legislation authorizes temporary admission
     without formalities from the time of entry into Community customs
     territory, provided that the containers bear durably applied markings in
     an appropriate, clearly visible position identifying the owner or operator
     and giving the marks and identification numbers used by the owner or
     operator, the tare weight of the container (except in the case of swap
     bodies used in combined road-rail transport) and the country of
     registration of the container (except in the case of air transport).
     Containers not fulfilling these conditions may be granted temporary
     admission to Community customs territory once a written application
     has been submitted, an authorization issued and, where there are well-
     founded or serious doubts regarding the obligation to re-export, a list
     has been produced and/or a security constituted."
     Reservation on pallets
     "As long as pallets are identifiable, Community legislation authorizes
     their temporary admission without formalities from the time of entry into
     Community customs territory. Where they are not identifiable, a written
     application has to be submitted and an authorization issued.
     In both cases a written declaration and, where necessary, a security,
     may be required if the customs consider that there is a serious risk of
     failure to comply with the obligation to re-export."
12.6 The beginning of the second sentence of the present reservation in
     respect of Recommended Practice 38 shall read as follows:
     "Temporary admission with partiaf relief from import duties is not applied
     to consumable products and goods whose ...." (remainder unchanged).
13.  Annex E.6
     concerning temporary admission for inward processing
13.1 The present general reservation and the present reservation in respect of
     Standard 19 shall be maintained.
 ---pagebreak---                                                                         13
 13.2 The wording of the present reservation in respect of       Recommended
       Practice 5 shall be replaced by:
       "Normally the Community applies the provisions of this Recommended
       Practice, but it reserves the right not to do so in exceptional
      circumstances."
 13.3 A reservation worded as        follows  shall be  entered in  respect   of
       Recommended Practice 16:
       "Where the customs authority requires a security, the type and amount
      of security shall be fixed by the customs authority of each Member
      State."
13.4 The present wording of the reservation in respect of Standard 34 shall
      be replaced by:
      "In Member States where free zones exist (Denmark, Germany, Greece,
      Spain, Ireland, Italy, Portugal and the United Kingdom) this Standard
      shall be applicable when the compensatory products enter the zones
      with a view to their subsequent exportation from the customs territory
      of the Community."
13.5 The present wording of the reservation in respect of        Recommended
      Practice 39 shall be replaced by:
      "Community legislation does not provide for any limitation similar to that
      mentioned in this Recommended Practice. If a customs debt relating to
      the compensating products or to the goods in their unaltered state
      occurs, it gives rise to the payment of compensatory interest on the
      amount of the import duties due."
14.   Annex E.8
      concerning temporary exportation for outward processing
14.1 The present general reservation and the present reservation in respect of
      Standard 20 shall be maintained.
14.2 The present wording of the reservation in respect of       Recommended
      Practice 3 shall be replaced by:
      "Normally the Community applies the provisions of this Recommended
      Practice, but it reserves the right not to do so in exceptional
      circumstances."
15.  Annex F.I
     concerning free zones
15.1 The present wording of the general reservation shall be replaced by:
     "Community legislation allows Member States the option of constituting
     certain areas of Community customs territory as free zones. So far free
     zones of this type have been set up by Denmark, Germany, Greece,
     Spain, Ireland, Italy, Portugal and the United Kingdom.
 ---pagebreak---                                                                            1H
      In addition Community legislation provides for a particular type of tree
      zone called a 'free warehouse', to which exactly the same rules apply as
      those governing the free zones. So far, free warehouses have been set
      up in Spain, France, Italy, the Netherlands and Portugal.
      Moreover Community legislation covers only part of the procedures dealt
      with in this Annex. In respect of areas not covered by Community
      legislation, the Member States shall enter their o w n reservations if
      necessary."
15.2 The present wording of the reservation in respect of Standard 21 shall
      be replaced by:
      "Community legislation does not lay d o w n a maximum storage period.
      Nevertheless, in exceptional cases, the period may be less than one
     year."
16   Annex F.2
     concerning processing of goods for home use
16.1 The present reservations (general reservation           and   in  respect of
     Recommended Practice 7) shall be maintained.
17.  Annex F.3
     concerning customs facilities applicable to travellers
17.1 The present general reservation and the present reservations in respect
     of Standards 2 1 , 38 and 4 4 and Recommended Practice 45 shall be
     maintained.
17.2 A reservation worded as         follows  shall be   entered    in respect of
     Recommended Practice 18:
     "Community legislation does not provide for a system of flat-rate
     assessement as far as value added tax and excise duties are
     concerned."
17.3 A reservation worded as         follows  shall be   entered    in respect of
     Recommended Practice 31 :
     "Community legislation provides that when there is a serious risk of
     failure to comply with the obligation to re-export the means of transport
     for private use, the temporary adjrrission procedure applies subject to
     the production of a document of a type laid d o w n in an international
     convention or the lodging of a declaration, and the customs authority
     has the option of requiring a security when the declaration is lodged."
18.  Annex F.6
     concerning the repayment of import duties and taxes
18.1 The present reservations (general         reservation   and   in  respect of
     Standard 7) shall be maintained.
 ---pagebreak--- f                                          U
                                   ISSN 0254-1475
                            COM (93) 610 final
                     DOCUMENTS
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       Catalogue number : CB-CO-93-655-EN-C
                           ISBN 92-77-61896-5
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