LegalizeCommission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code
COMMISSION DELEGATED REGULATION (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code
TITLE I
GENERAL PROVISIONS
CHAPTER 1
Scope of the customs legislation, mission of customs and definitions
Article 1
Definitions
For the purposes of this Regulation, the following definitions shall apply:
(1) 'agricultural policy measure' means the provisions related to import and export activities for products which are covered by Annex 71-02, points 1, 2 and 3.;
(2) 'ATA Carnet' means an international customs document for temporary admission issued in accordance with the ATA Convention or the Istanbul Convention;
(3) 'ATA Convention' means the Customs Convention on the ATA carnet for the temporary admission of goods done at Brussels on 6 December 1961;
(4) 'Istanbul Convention' means the Convention on temporary admission done at Istanbul on 26 June 1990;
(5) 'baggage' means all goods carried by whatever means in relation to a journey of a natural person;
(6) 'Code' means Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code;
(7) 'Union airport' means any airport situated in the customs territory of the Union;
(8) 'Union port' means any sea port situated in the customs territory of the Union;
(9) 'Convention on a common transit procedure' means the Convention on a common transit procedure (1);
(10) 'common transit country' means any country, other than a Member State of the Union that is a contracting party to the Convention on a common transit procedure;
(11) 'third country' means a country or territory outside the customs territory of the Union;
(12) 'CPD Carnet' means an international customs document used for temporary admission of means of transport issued in accordance with the Istanbul Convention;
(13) 'customs office of departure' means the customs office where the customs declaration placing goods under a transit procedure is accepted;
(14) 'customs office of destination' means the customs office where the goods placed under a transit procedure are presented in order to end the procedure;
(15) 'customs office of first entry' means the customs office which is competent for customs supervision at the place where the means of transport carrying the goods arrives or, where applicable, is destined to arrive, in the customs territory of the Union from a territory outside that territory;
(16) 'customs office of export' means the customs office where the export declaration or the re-export declaration is lodged for goods being taken out of the customs territory of the Union;
(17) 'customs office of placement' means customs office indicated in the authorisation for a special procedure as referred to in Article 211(1) of the Code, empowered to release goods for a special procedure;
(18) ‘Economic Operators Registration and Identification number' (EORI number) means an identification number, unique in the customs territory of the Union, assigned by a customs authority to an economic operator or to another person in order to register him for customs purposes;
(19) ‘exporter’ means: (a) a private individual carrying goods to be taken out of the customs territory of the Union where these goods are contained in the private individual's personal baggage; (b) in other cases, where (a) does not apply: (i) a person established in the customs territory of the Union, who has the power to determine and has determined that the goods are to be taken out of that customs territory; (ii) where (i) does not apply, any person established in the customs territory of the Union who is a party to the contract under which goods are to be taken out of that customs territory.
(20) 'generally accepted accounting principles' means the principles which are recognised or have substantial authoritative support within a country at a particular time as to which economic resources and obligations should be recorded as assets and liabilities, which changes in assets and liabilities should be recorded, how the assets and liabilities and changes in them should be measured, what information should be disclosed and how it should be disclosed, and which financial statements should be prepared;
(21) 'goods of a non-commercial nature' means (a) goods contained in consignments sent by one private individual to another, where such consignments: (i) are of an occasional nature; (ii) contain goods exclusively for the personal use of the consignee or his family, which do not by their nature or quantity reflect any commercial interest; and (iii) are sent to the consignee by the consignor free of payment of any kind; (b) goods contained in travellers’ personal baggage, where they: (i) are of an occasional nature; and (ii) consist exclusively of goods for the personal use of the travellers or their families, or of goods intended as presents; the nature and quantity of such goods must not be such as might indicate that they are being imported or exported for commercial reasons;
(22) 'Master Reference Number' (MRN) means the registration number allocated by the competent customs authority to declarations or notifications referred to in Article 5(9) to (14) of the Code, to TIR operations or to proofs of the customs status of Union goods;
(23) 'period for discharge' means the time by which goods placed under a special procedure, except transit, or processed products must be placed under a subsequent customs procedure, must be destroyed, must have been taken out of the customs territory of the Union or must be assigned to their prescribed end-use. In case of outward processing the period for discharge means the period within which goods temporarily exported may be re-imported into the customs territory of the Union in the form of processed products and placed under release for free circulation, in order to able to benefit from total or partial relief from import duties;
(24) 'goods in postal consignment' means goods other than items of correspondence, contained in a postal parcel or package and conveyed under the responsibility of or by a postal operator in accordance with the provisions of the Universal Postal Union Convention adopted on 10 July 1984 under the aegis of the United Nations Organisation;
(25) 'postal operator' means an operator established in and designated by a Member State to provide the international services governed by the Universal Postal Convention;
(26) 'items of correspondence' means letters, postcards, braille letters and printed matter not liable to import or export duty;
(27) ‘outward processing IM/EX’ means the prior import of processed products obtained from equivalent goods under outward processing before the export of the goods they are replacing, referred to in Article 223(2)(d) of the Code;
(28) ‘outward processing EX/IM’ means the export of Union goods under outward processing before the import of processed products;
(29) ‘inward processing EX/IM’ means the prior export of processed products obtained from equivalent goods under inward processing before the import of the goods they are replacing, referred to in Article 223(2)(c) of the Code;
(30) ‘inward processing IM/EX’ means the import of non-Union goods under inward processing before the export of processed products;
(31) 'private individual' means natural persons other than taxable persons acting as such as defined by Council Directive 2006/112/EC ;
(32) 'public customs warehouse type I' means a public customs warehouse where the responsibilities referred to in Article 242(1) of the Code lie with the holder of the authorisation and with the holder of the procedure;
(33) 'public customs warehouse type II' means a public customs warehouse where the responsibilities referred to in Article 242(2) of the Code lie with the holder of the procedure;
(34) 'single transport document' means in the context of customs status a transport document issued in a Member State covering the carriage of the goods from the point of departure in the customs territory of the Union to the point of destination in that territory under the responsibility of the carrier issuing the document;
(35) 'special fiscal territory' means a part of the customs territory of the Union where the provisions of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax or Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC do not apply;
(36) 'supervising customs office' means (a) in case of temporary storage as referred to in Title IV of the Code or in case of special procedures other than transit as referred to in Title VII of the Code, the customs office indicated in the authorisation to supervise either the temporary storage of the goods or the special procedure concerned; (b) in case of simplified customs declaration, as referred to in Article 166 of the Code, centralised clearance, as referred to in Article 179 of the Code, entry in the records, as referred to in Article 182 of the Code the customs office indicated in the authorisation to supervise the placing of the goods under the customs procedure concerned;
(37) 'TIR Convention' means the Customs Convention on the International Transport of Goods under cover of TIR carnets done at Geneva on 14 November 1975;
(38) 'TIR operation' means the movement of goods within the customs territory of the Union in accordance with the TIR Convention;
(39) 'transhipment' means the loading or unloading of products and goods on board a means of transport to another means of transport;
(40) 'traveller' means any natural person who: (a) enters into the customs territory of the Union temporarily and is not normally resident there, or (b) returns to the customs territory of the Union where he is normally resident, after having been temporarily outside this territory, or (c) temporarily leaves the customs territory of the Union where he is normally resident, or (d) leaves the customs territory of the Union after a temporary stay, without being normally resident there;
(41) 'waste and scrap' means either of the following: (a) goods or products which are classified as waste and scrap in accordance with the Combined Nomenclature; (b) in the context of end-use or inward processing, goods or products resulting from a processing operation, which have no or low economic value and which cannot be used without further processing.
(42) ‘pallet’ means a device on the deck of which a quantity of goods can be assembled to form a unit load for the purpose of transporting it, or of handling or stacking it with the assistance of mechanical appliances. This device is made up of two decks separated by bearers, or of a single deck supported by feet; its overall height is reduced to the minimum compatible with handling by fork lift trucks or pallet trucks; it may or may not have a superstructure;
(43) 'Union factory ship' means a vessel which is registered in a part of a Member State's territory forming part of the customs territory of the Union, flies the flag of a Member State and does not catch products of sea-fishing but does process such products on board;
(44) 'Union fishing vessel' means a vessel which is registered in a part of a Member State's territory forming part of the customs territory of the Union, flies the flag of a Member State, catches products of sea-fishing and, as the case may be, processes them on board;
(45) ‘regular shipping service’ means a service which carries goods in vessels that ply only between Union ports and does not come from, go to or call at any points outside the customs territory of the Union or any points in a free zone of a Union port;
(46) ‘express consignment’ means an individual item conveyed by or under the responsibility of an express carrier;
(47) ‘express carrier’ means an operator providing integrated services of expedited/time-definite collection, transport, customs clearance and delivery of parcels whilst tracking the location of, and maintaining control over, such items throughout the supply of the service;
(48) ‘intrinsic value’ means (a) for commercial goods: the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are included in the price and not separately indicated on the invoice, and any other taxes and charges as ascertainable by the customs authorities from any relevant document(s); (b) for goods of a non-commercial nature: the price which would have been paid for the goods themselves if they were sold for export to the customs territory of the Union;
(49) ‘goods to be moved or used in the context of military activities’ means any goods to be moved or used: (a) in activities arranged by or under the control of the relevant military authorities of one or more Member State(s) or of a third country with which one or more Member State(s) has (have) concluded an agreement to carry out military activities within the customs territory of the Union; or (b) in the context of any military activities undertaken: — under the Common Security and Defence Policy of the European Union (CSDP), or — under the North Atlantic Treaty, signed in Washington D.C. on 4 April 1949.
(50) ‘NATO form 302’ means a document for customs purposes as provided for in the relevant procedures implementing the Agreement between the Parties to the North Atlantic Treaty regarding the Status of their Forces, signed in London on 19 June 1951;
(51) ‘EU form 302’ means a document for customs purposes set out in Annex 52-01 and issued by or on behalf of the national competent military authorities of a Member State for goods to be moved or used in the context of military activities;
(52) ‘waste from ships’ means waste from ships within the meaning of point 3 of Article 2 of Directive (EU) 2019/883 of the European Parliament and of the Council (2);
(53) ‘maritime National Single Window’ means a maritime National Single Window within the meaning of point 3 of Article 2 of Regulation (EU) 2019/1239 of the European Parliament and of the Council (3);
(54) ‘third country postal operator’ means an operator established in and designated by a third country to provide the international services governed by the Universal Postal Convention;
(55) ‘trusted trader’ means an economic operator that is authorised in accordance with Articles 9 to 11 of Decision No 1/2023 (4) of the Joint Committee established by the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (5) (‘Decision No 1/2023’);
(56) ‘authorised carrier’ means an economic operator moving parcels, including the United Kingdom designated postal operator, authorised in accordance with Article 12 of Decision No 1/2023 to bring goods in parcels into Northern Ireland from another part of the United Kingdom by direct transport.
CHAPTER 2
Rights and obligations of persons with regard to the customs legislation
Section 1
Provision of information
Subsection 1
Common data requirements for data exchange and storage
Article 2
Common data requirements
(Article 6(2) of the Code)
The exchange and storage of information required for declarations, notifications and proof of customs status shall be subject to the data requirements set out in Annex 9 to Delegated Regulation (EU) 2016/341, as follows:
(a) until the date of deployment of the UCC Automated Export System set out in the Annex to Implementing Decision (EU) 2019/2151, for the cases covered by the columns A1, A2, B1, B4 and C1 of Annex B to this Regulation;
(b) until the date of deployment of Component 1 of the UCC Special Procedures electronic system set out in the Annex to Implementing Decision (EU) 2019/2151, for the cases covered by the columns B2 and B3 of Annex B to this Regulation;
(c) until the date of deployment of phase 5 of the UCC New Computerised Transit System as set out in the Annex to Implementing Decision (EU) 2019/2151, for the cases covered by column D1 of Annex B to this Regulation;
(d) until the date of deployment of phase 1 of the UCC Proof of Union Status set out in the Annex to Implementing Decision (EU) 2019/2151, for the cases covered by column E1 of Annex B to this Regulation;
(e) until the date of deployment of release 2 of the UCC Import Control System as set out in the Annex to Implementing Decision (EU) 2019/2151, for the cases covered by the columns F20 and F30 of Annex B to this Regulation and for the diversion notification of aircrafts;
(f) until the date of deployment of release 3 of the UCC Import Control System as set out in the Annex to Implementing Decision (EU) 2019/2151, for the cases covered by the columns F10, F50 and F51 of Annex B to this Regulation and for the diversion notification of sea-going vessels;
(g) until the upgrade of the National Import Systems as set out in the Annex to Implementing Decision (EU) 2019/2151, for the cases covered by the columns H1 to H4 and I1 of Annex B to this Regulation.
Where data requirements for the exchange and storage of information required for declarations, notifications and proof of customs status are not set out in Annex 9 to Delegated Regulation (EU) 2016/341, Member States shall ensure that the respective data requirements are such as to warrant that the provisions governing those declarations, notifications and proof of customs status can be applied.
Until the dates of deployment of the UCC Automated Export System (AES) or of the upgrading of the National Import Systems as set out in the Annex to Implementing Decision (EU) 2019/2151, where an application for an authorisation is based on a customs declaration in accordance with Article 163(1) of this Regulation, the customs declaration shall also contain the following data:
(a) Data requirements common to all procedures: — Nature of the processing or use of the goods; — Technical descriptions of the goods and/or processed products and means of identifying them; — Estimated period for discharge; — Proposed office of discharge (not for end-use); and — Place of processing or use.
(b) Specific data requirements for inward processing: — Codes of economic conditions referred to in the Appendix to Annex 12 of Delegated Regulation (EU) 2016/341; — Estimated rate of yield or method by which that rate is to be determined; and — Whether the calculation of the amount of import duty should be made in accordance with Article 86(3) of the Code (indicate ‘yes’ or ‘no’).
Subsection 2
Registration of persons with the customs authorities
Article 3
Data content of EORI record
(Article 6(2) of the Code)
At the time of registration of a person, the customs authorities shall collect and store the data laid down in Annex 12-01 concerning that person. That data shall constitute the EORI record.
By way of derogation from the first paragraph, until the date of the upgrading of the EORI system provided for in the Annex to Implementing Decision 2014/255/EU, the common data requirements set out in Annex 12-01 shall not apply.
Until the date of the upgrading of the EORI system, Member States shall collect and store the following data as set out in Annex 9, Appendix E to Delegated Regulation (EU) 2016/341, which shall constitute the EORI record:
(a) data listed in points 1 to 4 of Annex 9, Appendix E to Delegated Regulation (EU) 2016/341;
(b) where required by national systems, the data listed in points 5 to 12 of the Annex 9, Appendix E to Delegated Regulation (EU) 2016/341.
Member States shall upload the data collected in accordance with the third paragraph of this Article on a regular basis to the EORI system.
By way of derogation from the second and third paragraph of this Article, it shall be optional for Member States to collect the data element listed in Title I, Chapter 3, Point 4 to Annex 12-01. Where that element is collected by Member States, it shall be uploaded to the EORI system as soon as possible after the upgrading of that system.
Article 4
Submission of particulars for EORI registration
(Article 6(4) of the Code)
Customs authorities may allow persons to submit the particulars necessary for the EORI registration by means other than electronic data-processing techniques.
Article 5
Economic operators not established in the customs territory of the Union
(Article 22(2) and 9(2) of the Code)
An economic operator not established in the customs territory of the Union shall register before:
(a) lodging a customs declaration in the customs territory of the Union other than the following declarations: (i) a customs declaration made in accordance with Articles 135 to 144; (ii) a customs declaration for placing goods under the temporary admission procedure or a re-export declaration to discharge that procedure; (iii) a customs declaration made under the Convention on a common transit procedure (7) by an economic operator established in a common transit country; (iv) a customs declaration made under the Union transit procedure by an economic operator established in Andorra or in San Marino;
(b) lodging an exit or entry summary declaration in the customs territory of the Union or in a third country where a customs security agreement between the Union and the third country concerned provides for the use of an EU electronic system;
(c) lodging a temporary storage declaration in the customs territory of the Union;
(d) acting as a carrier for the purposes of transport by sea, inland waterway or air;
(e) acting as a carrier who is connected to the customs system and wishes to receive any of the notifications provided for in the customs legislation regarding the lodging or amendment of entry summary declarations;
(f) requesting registration and endorsement of proof of customs status of Union goods.
Article 6
Persons other than economic operators
(Article 9(3) of the Code)
Persons other than economic operators shall register with the customs authorities where one of the following conditions is met:
(a) such registration is required by Union legislation or by the legislation of a Member State;
(b) the person engages in operations for which an EORI number must be provided pursuant to Annex A and Annex B.
Article 7
Invalidation of an EORI number
(Article 9(4) of the Code)
The customs authorities shall invalidate a EORI number in any of the following cases:
(a) upon request by the registered person;
(b) when the customs authority is aware that the registered person has ceased the activities requiring the registration.
Section 2
Decisions relating to the application of the customs legislation
Subsection 0
Means for the exchange of information used for applications and decisions for which the relevant data requirements are not set out in Annex A
Article 7a
Applications and decisions made by means other than electronic data-processing techniques
(Article 6(3)(a) of the Code)
Customs authorities may allow the use of means other than electronic data-processing techniques in relation to applications and decisions for which the relevant data requirements are not set out in Annex A and in relation to any subsequent applications and acts relating to the management of those decisions.
Subsection 1
Right to be heard
Article 8
Period for the right to be heard
(Article 22(6) of the Code)
Article 9
Means for the communication of the grounds
(Article 6(3)(a) of the Code)
Where the communication referred to in the first subparagraph of Article 22(6) of the Code is made as part of the process of verification or control, the communication may be made using means other than electronic data-processing techniques.
Where the application is submitted or the decision is notified using means other than electronic data-processing techniques, the communication may be made using the same means.
Article 10
Exceptions to the right to be heard
(Article 22(6), 2nd subparagraph of the Code)
The specific cases where the applicant is not given an opportunity to express his point of view shall be the following:
(a) where the application for a decision is not accepted in accordance with Article 11 of this Regulation or with the second subparagraph of Article 12(2) of Commission Implementing Regulation (EU) 2015/2447 (8);
(b) where the customs authorities notify the person who lodged the entry summary declaration that the goods are not to be loaded in the case of containerised maritime traffic and of air traffic;
(c) where the decision concerns a notification to the applicant of a Commission decision as referred to in Article 116(3) of the Code;
(d) where an EORI number is to be invalidated.
Subsection 2
General rules on decisions taken upon application
Article 11
Conditions for the acceptance of an application
(Article 22(2) of the Code)
An application for a decision relating to the application of the customs legislation shall be accepted provided that the following conditions are met:
(a) where required under the procedure which the application concerns, the applicant is registered in accordance with Article 9 of the Code;
(b) where required under the procedure which the application concerns, the applicant is established in the customs territory of the Union;
(c) the application has been submitted to a customs authority designated to receive applications in the Member State of the competent customs authority referred to in the third subparagraph of Article 22(1) of the Code;
(d) the application does not concern a decision with the same purpose as a previous decision addressed to the same applicant which, during the one year period preceding the application, was annulled or revoked on the grounds that the applicant failed to fulfil an obligation imposed under that decision.
Article 12
Customs authority competent to take the decision
(Article 22(1) of the Code)
Where it is not possible to determine the competent customs authority in accordance with the third subparagraph of Article 22(1) of the Code, the competent customs authority shall be that of the place where the applicant's records and documentation enabling the customs authority to take a decision (main accounts for customs purposes) are held or accessible.
Article 13
Extension of the time-limit for taking a decision
(Article 22(3) of the Code)
Article 14
Date of effect
(Article 22(4) and (5) of the Code)
The decision shall take effect from a date which is different from the date on which the applicant receives it or is deemed to have received it in the following cases:
(a) where the decision will favourably affect the applicant and the applicant has requested a different date of effect, in which case the decision shall take effect from the date requested by the applicant provided it is subsequent to the date on which the applicant receives the decision or is deemed to have received it;
(b) where a previous decision has been issued with a limitation of time and the sole aim of the current decision is to extend its validity, in which case the decision shall take effect from the day after the expiry of the period of validity of the former decision;
(c) where the effect of the decision is conditional on the completion of certain formalities by the applicant, in which case the decision shall take effect from the day on which the applicant receives, or is deemed to have received, the notification from the competent customs authority stating that the formalities have been satisfactorily completed.
Article 15
Re-assessment of a decision
(Article 23(4)(a) of the Code)
The customs authority competent to take the decision shall re-assess a decision in the following cases:
(a) where there are changes to the relevant Union legislation affecting the decision;
(b) where necessary as a result of the monitoring carried out;
(c) where necessary due to information provided by the holder of the decision in accordance with Article 23(2) of the Code or by other authorities.
Article 16
Suspension of a decision
(Article 23(4)(b) of the Code)
The customs authority competent to take the decision shall suspend the decision instead of annulling, revoking or amending it in accordance with Articles 23(3), 27 or 28 of the Code where:
(a) that customs authority considers that there may be sufficient grounds for annulling, revoking or amending the decision, but does not yet have all necessary elements to decide on the annulment, revocation or amendment;
(b) that customs authority considers that the conditions for the decision are not fulfilled or that the holder of the decision does not comply with the obligations imposed under that decision, and it is appropriate to allow the holder of the decision time to take measures to ensure the fulfilment of the conditions or the compliance with the obligations;
(c) the holder of the decision requests such suspension because he is temporarily unable to fulfil the conditions laid down for the decision or to comply with the obligations imposed under that decision.
Article 17
Period of suspension of a decision
(Article 23(4)(b) of the Code)
However, where the customs authority considers that the holder of the decision may not fulfil the criteria set out in Article 39(a) of the Code, the decision shall be suspended until it is established whether a serious infringement or repeated infringements, including a serious criminal offence, have been committed by any of the following persons:
(a) the holder of the decision;
(b) the person in charge of the company which is the holder of the decision concerned or exercising control over its management;
(c) the employee in charge of customs matters in the company which is the holder of the decision concerned.
The period of suspension may be further extended by the period of time needed by the competent customs authority to verify that those measures ensure fulfilment of the conditions or compliance with the obligations. That period of time shall not exceed 30 days.
Article 18
End of the suspension
(Article 23(4)(b) of the Code)
A suspension of a decision shall end at the expiry of the period of suspension unless before the expiry of that period any of the following situations occurs:
(a) the suspension is withdrawn on the basis that, in the cases referred to in Article 16(1)(a), there are no grounds for the annulment, revocation or amendment of the decision in accordance with Articles 23(3), 27 or 28 of the Code, in which case the suspension shall end on the date of withdrawal;
(b) the suspension is withdrawn on the basis that, in cases referred to in Article 16(1)(b) and (c), the holder of the decision has taken, to the satisfaction of the customs authority competent to take the decision, the necessary measures to ensure fulfilment of the conditions laid down for the decision or compliance with the obligations imposed under that decision, in which case the suspension shall end on the date of withdrawal;
(c) the suspended decision is annulled, revoked or amended, in which case the suspension shall end on the date of annulment, revocation or amendment.
Subsection 3
Decisions relating to binding information
Article 19
Application for a decision relating to binding information
(Article 22(1), 3rd subparagraph and Article 6(3)(a) of the Code)
Article 20
Time-limits
(Article 22(3) of the Code)
That extended period referred to in subparagraph 1 shall not exceed 10 months, but in exceptional circumstances an additional extension not exceeding 5 months may be applied.
Article 21
Notification of BOI decisions
(Article 6(3)(a) of the Code)
Where an application for a BOI decision has been submitted using means other than electronic data-processing techniques, the customs authorities may notify the applicant of the BOI decision using means other than electronic data-processing techniques.
Article 22
Limitation of application of rules on re-assessment and suspension
(Article 23(4) of the Code)
Articles 15 to 18 concerning the re-assessment and suspension of decisions shall not apply to decisions relating to binding information.
Section 3
Authorised economic operator
Subsection 1
Benefits resulting from the status of authorised economic operator
Article 23
Facilitations regarding pre-departure declarations
(Article 38(2)(b) of the Code)
Article 24
More favourable treatment regarding risk assessment and control
(Article 38(6) of the Code)
That notification shall be made available also to the carrier if different from the AEOS referred to in the first subparagraph, provided that the carrier is an AEOS and is connected to the electronic systems relating to the declarations referred to in the first subparagraph.
That notification shall not be provided where it may jeopardise the controls to be carried out or the results thereof.
That notification shall not be provided where it may jeopardise the controls to be carried out or the results thereof.
On request from an AEO the controls may be carried out at a place other than the place where the goods have to be presented to customs.
Article 25
Exemption from favourable treatment
(Article 38(6) of the Code)
The more favourable treatment referred to in Article 24 shall not apply to any customs controls related to specific elevated threat levels or control obligations set out in other Union legislation.
However, customs authorities shall carry out the necessary processing, formalities and controls for consignments declared by an AEOS as a matter of priority.
Subsection 2
Application for the status of authorised economic operator
Article 26
Conditions for the acceptance of an application for the status of AEO
(Article 22(2) of the Code)
Article 27
Competent customs authority
(Third subparagraph of Article 22(1) of the Code)
Where the competent customs authority cannot be determined in accordance with the third subparagraph of Article 22(1) of the Code or Article 12 of this Regulation, the application shall be submitted to the customs authorities of the Member State where the applicant has a permanent business establishment and where the information about its general logistical management activities in the Union is kept or is accessible as indicated in the application.
Article 28
Time-limit for taking decisions
(Article 22(3) of the Code)
Article 29
Date of effect of the AEO authorisation
(Article 22(4) of the Code)
By way of derogation from Article 22(4) of the Code, the authorisation granting the status of AEO (‘AEO authorisation’) shall take effect on the fifth day after the decision is taken.
Article 30
Legal effects of suspension
(Article 23(4)(b) of the Code)
Where a decision relating to a person who is both an AEOS and an AEOC is suspended in accordance with Article 16(1) due to non-fulfilment of the conditions laid down in Article 39(e) of the Code, his AEOS authorisation shall be suspended, but his AEOC authorisation shall remain valid.
TITLE II
FACTORS ON THE BASIS OF WHICH IMPORT OR EXPORT DUTIES AND OTHER MEASURES IN RESPECT OF TRADE IN GOODS ARE APPLIED
CHAPTER 1
Origin of goods
Section 1
Non-preferential origin
Article 31
Goods wholly obtained in a single country or territory
(Article 60(1) of the Code)
The following goods shall be considered as wholly obtained in a single country or territory:
(a) mineral products extracted within that country or territory;
(b) vegetable products grown and harvested only there;
(c) live animals born and raised there;
(d) products derived from live animals raised there;
(e) products of hunting or fishing carried on there;
(f) products of sea fishing and other products taken by vessels registered in the country or territory concerned and flying the flag of that country or territory from the sea outside any country’s territorial waters;
(g) goods obtained or produced on board factory ships from the products referred to in point (f) originating in that country or territory, provided that such factory ships are registered in that country or territory and fly its flag;
(h) products taken from the seabed or subsoil beneath the seabed outside the territorial waters provided that that country or territory has exclusive rights to exploit that seabed or subsoil;
(i) waste and scrap products derived from manufacturing operations and used articles, if they were collected there and are fit only for recovery of raw materials;
(j) goods produced there exclusively from products specified in points (a) to (i).
Article 32
Goods the production of which involves more than one country or territory
(Article 60(2) of the Code)
Goods listed in Annex 22-01 shall be considered to have undergone their last substantial processing or working, resulting in the manufacture of a new product or representing an important stage of manufacture, in the country or territory in which the rules set out in that Annex are fulfilled or which is identified by those rules.
Article 33
Processing or working operations which are not economically justified
(Article 60(2) of the Code)
Any processing or working operation carried out in another country or territory shall be deemed not to be economically justified if it is established on the basis of the available facts that the purpose of that operation was to avoid the application of the measures referred to in Article 59 of the Code.
For goods covered by Annex 22-01, the Chapter residual rules for those goods shall apply.
For goods not covered by Annex 22-01, where the last working or processing is deemed not to be economically justified, the goods shall be considered to have undergone their last substantial, economically justified processing or working, resulting in the manufacture of a new product or representing an important stage of manufacture, in the country or territory where the major portion of the materials originated. Where the final product is to be classified under Chapters 1 to 29 or 31 to 40 of the Harmonized System, the major portion of the materials shall be determined on the basis of the weight of the materials. Where the final product is to be classified under Chapters 30 or 41 to 97 of the Harmonized System, the major portion of the materials shall be determined on the basis of the value of the materials.
Article 34
Minimal operations
(Article 60(2) of the Code)
The following shall not be considered as substantial, economically justified processing or working for the purposes of conferring origin:
(a) operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, removal of damaged parts and similar operations) or operations facilitating shipment or transport;
(b) simple operations consisting of the removal of dust, sifting or screening, sorting, classifying, matching, washing, cutting up;
(c) changes of packing and the breaking-up and assembly of consignments, the simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards, and all other simple packaging operations;
(d) putting up of goods in sets or ensembles or putting up for sale;
(e) affixing of marks, labels or other similar distinguishing signs on products or their packaging;
(f) simple assembly of parts of products to constitute a complete product;
(g) disassembly or change of use;
(h) a combination of two or more operations specified in points (a) to (g).
For goods covered by Annex 22-01, the Chapter residual rules for those goods shall apply. For goods not covered by Annex 22-01, where the last working or processing is deemed to be a minimal operation, the origin of the final product is the country or territory where the major portion of the materials originated. Where the final product is to be classified under Chapters 1 to 29, or 31 to 40 of the Harmonized System, the major portion of the materials shall be determined on the basis of the weight of the materials. Where the final product is to be classified under Chapters 30 or 41 to 97 of the Harmonized System, the major portion of the materials shall be determined on the basis of the value of the materials.
Article 35
Accessories, spare parts or tools
(Article 60 of the Code)
For the purposes of this article, essential spare parts shall mean parts which are:
(a) components without which the proper operation of a piece of equipment, machine, apparatus or vehicle which has been put into free circulation cannot be ensured; and
(b) characteristic of those goods; and
(c) intended for their normal maintenance and to replace parts of the same kind which are damaged or have become unserviceable.
Article 36
Neutral elements and packing
(Article 60 of the Code)
In order to determine whether goods originate in a country or territory, the origin of the following elements shall not be taken into account:
(a) energy and fuel;
(b) plant and equipment;
(c) machines and tools;
(d) materials which neither enter into the final composition of the goods nor are intended to do so.
Section 2
Preferential origin
Article 37
Definitions
For the purposes of this Section, the following definitions shall apply:
(1) 'beneficiary country' means a beneficiary country of the generalised system of preferences (GSP) listed in Annex II to Regulation (EC) No 978/2012 of the European Parliament and of the Council (10);
(2) 'manufacture' means any kind of working or processing including assembly;
(3) 'material' means any ingredient, raw material, component or part, etc., used in the manufacture of the product;
(4) 'product' means the product being manufactured, even if it is intended for later use in another manufacturing operation;
(5) 'goods' means both materials and products;
(6) 'bilateral cumulation' means a system that allows products which originate in the Union, to be considered as materials originating in a beneficiary country when they are further processed or incorporated into a product in that beneficiary country;
(7) 'cumulation with Norway, Switzerland or Turkey' means a system that allows products which originate in Norway, Switzerland or Turkey to be considered as originating materials in a beneficiary country when they are further processed or incorporated into a product in that beneficiary country and imported into the Union;
(8) 'regional cumulation' means a system whereby products which according to this Section originate in a country which is a member of a regional group are considered as materials originating in another country of the same regional group (or a country of another regional group where cumulation between groups is possible) when further processed or incorporated in a product manufactured there;
(9) 'extended cumulation' means a system, conditional upon the granting by the Commission, on a request lodged by a beneficiary country and whereby certain materials, originating in a country with which the Union has a free-trade agreement in accordance with Article XXIV of the General Agreement on Tariffs and Trade (GATT) in force, are considered to be materials originating in the beneficiary country concerned when further processed or incorporated in a product manufactured in that country;
(10) 'fungible materials' means materials that are of the same kind and commercial quality, with the same technical and physical characteristics, and which cannot be distinguished from one another once they are incorporated into the finished product;
(11) 'regional group' means a group of countries between which regional cumulation applies;
(12) 'customs value' means the value as determined in accordance with the 1994 Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on Customs Valuation);
(13) 'value of materials' means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the country of production; where the value of the originating materials used needs to be established, this point should be applied mutatis mutandis;
(14) 'ex-works price' means the price paid for the product ex-works to the manufacturer in whose undertaking the last working or processing is carried out, provided that the price includes the value of all the materials used and all other costs related to its production, minus any internal taxes which are, or may be, repaid when the product obtained is exported. Where the actual price paid does not reflect all costs related to the manufacturing of the product which are actually incurred in the country of production, the ex-works price means the sum of all those costs, minus any internal taxes which are, or may be, repaid when the product obtained is exported; Where the last working or processing has been subcontracted to a manufacturer, the term ‘manufacturer’ referred to in the first sub-paragraph may refer to the enterprise that has employed the subcontractor.
(15) 'maximum content of non-originating materials' means the maximum content of non-originating materials which is permitted in order to consider a manufacture as working or processing sufficient to confer originating status on the product. It may be expressed as a percentage of the ex-works price of the product or as a percentage of the net weight of these materials used falling under a specified group of chapters, chapter, heading or sub-heading;
(16) 'net weight' means the weight of the goods themselves without packing materials and packing containers of any kind;
(17) 'chapters', 'headings' and ‘sub-headings’ mean the chapters, the headings and sub-headings (four- or six-digit codes) used in the nomenclature which makes up the Harmonized System with the changes pursuant to the recommendation of 26 June 2004 of the Customs Cooperation Council;
(18) 'classified' refers to the classification of a product or material under a particular heading or sub-heading of the Harmonized System;
(19) 'consignment' means products which are either: (a) sent simultaneously from one exporter to one consignee; or (b) covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such document, by a single invoice
(20) 'exporter' means a person exporting the goods to the Union or to a beneficiary country who is able to prove the origin of the goods, whether or not he is the manufacturer and whether or not he himself carries out the export formalities;
(21) ‘registered exporter’ means: (a) an exporter who is established in a beneficiary country and is registered with the competent authorities of that beneficiary country for the purpose of exporting products under the scheme, be it to the Union or another beneficiary country with which regional cumulation is possible; or (b) an exporter who is established in a Member State and is registered with the customs authorities of that Member State for the purpose of exporting products originating in the Union to a country or territory with which the Union has a preferential trade arrangement; or (c) a re-consignor of goods who is established in a Member State and is registered with the customs authorities of that Member State for the purpose of making out replacement statements on origin in order to re-consign originating products elsewhere within the customs territory of the Union or, where applicable, to Norway or Switzerland (‘a registered re-consignor’);
(22) 'statement on origin' means a statement made out by the exporter or the re-consignor of the goods indicating that the products covered by it comply with the rules of origin of the scheme.
Subsection 1
Issue or making out of proofs of origin
Article 38
Means for applying for and the issuing of Information Certificates INF 4
(Article 6(3)(a) of the Code)
Article 39
Means for applying for and the issuing of approved exporter authorisations
(Article 6(3)(a) of the Code)
Application for the status of approved exporter for the purpose of making out proofs of preferential origin may be submitted and approved exporter authorisation may be issued by means other than electronic data-processing techniques .
Article 40
Means for applying to become a registered exporter and for exchanging information with registered exporters
(Article 6(3)(a) of the Code)
Means other than electronic data-processing techniques may be used for all communications and exchanges of information in relation to applications and decisions concerning the status of a registered exporter and in relation to any subsequent applications and acts relating to the management of those decisions.
Subsection 2
Definition of the concept of originating products applicable within the framework of the GSP of the union
Article 41
General principles
(Article 64(3) of the Code)
The following products shall be considered as originating in a beneficiary country:
(a) products wholly obtained in that country within the meaning of Article 44;
(b) products obtained in that country incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing within the meaning of Article 45.
Article 42
Principle of territoriality
(Article 64(3) of the Code)
If originating products exported from the beneficiary country to another country are returned, they shall be considered as non-originating unless it can be demonstrated to the satisfaction of the competent authorities that the following conditions are fulfilled:
(a) the products returned are the same as those which were exported, and
(b) they have not undergone any operations beyond that necessary to preserve them in good condition while in that country or while being exported.
Article 43
Non-manipulation
(Article 64(3) of the Code)
Article 44
Wholly obtained products
(Article 64(3) of the Code)
The following shall be considered as wholly obtained in a beneficiary country:
(a) mineral products extracted from its soil or from its seabed;
(b) plants and vegetable products grown or harvested there;
(c) live animals born and raised there;
(d) products from live animals raised there;
(e) products from slaughtered animals born and raised there;
(f) products obtained by hunting or fishing conducted there;
(g) products of aquaculture where the fish, crustaceans and molluscs are born and raised there;
(h) products of sea fishing and other products taken from the sea outside any territorial sea by its vessels;
(i) products made on board its factory ships exclusively from the products referred to in point (h);
(j) used articles collected there that are fit only for the recovery of raw materials;
(k) waste and scrap resulting from manufacturing operations conducted there;
(l) products extracted from the seabed or below the seabed which is situated outside any territorial sea but where it has exclusive exploitation rights;
(m) goods produced there exclusively from products specified in points (a) to (l).
The terms ‘its vessels’ and ‘its factory ships’ in paragraph 1(h) and (i) shall apply only to vessels and factory ships which meet each of the following requirements:
(a) they are registered in the beneficiary country or in a Member State;
(b) they sail under the flag of the beneficiary country or of a Member State;
(c) they meet one of the following conditions: (i) they are at least 50 % owned by nationals of the beneficiary country or of Member States, or (ii) they are owned by companies: — which have their head office and their main place of business in the beneficiary country or in Member States, and — which are at least 50 % owned by the beneficiary country or Member States or public entities or nationals of the beneficiary country or Member States.
The first sub-paragraph shall apply only provided that the conditions laid down in Article 55(2)(a), (c) and (d) have been fulfilled.
Article 45
Sufficiently worked or processed products
(Article 64(3) of the Code)
Article 46
Averages
(Article 64(3) of the Code)
However, where the relevant rule is based on compliance with a maximum content of non-originating materials, in order to take into account fluctuations in costs and currency rates, the value of the non-originating materials may be calculated on an average basis as set out in paragraph 2.
Article 47
Insufficient working or processing
(Article 64(3) of the Code)
Without prejudice to paragraph 3, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 45 are satisfied:
(a) preserving operations to ensure that the products remain in good condition during transport and storage;
(b) breaking-up and assembly of packages;
(c) washing, cleaning; removal of dust, oxide, oil, paint or other coverings;
(d) ironing or pressing of textiles and textile articles;
(e) simple painting and polishing operations;
(f) husking and partial or total milling of rice; polishing and glazing of cereals and rice;
(g) operations to colour or flavour sugar or form sugar lumps; partial or total milling of crystal sugar;
(h) peeling, stoning and shelling, of fruits, nuts and vegetables;
(i) sharpening, simple grinding or simple cutting;
(j) sifting, screening, sorting, classifying, grading, matching (including the making-up of sets of articles);
(k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
(l) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;
(m) simple mixing of products, whether or not of different kinds; mixing of sugar with any material;
(n) simple addition of water or dilution or dehydration or denaturation of products;
(o) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;
(p) slaughter of animals ;
(q) a combination of two or more of the operations specified in points (a) to (p).
Article 48
General tolerance
(Article 64(3) of the Code)
By way of derogation from Article 45 and subject to paragraphs 2 and 3 of this Article, non-originating materials which, according to the conditions set out in the list in Annex 22-03 are not to be used in the manufacture of a given product may nevertheless be used, provided that their total value or net weight assessed for the product does not exceed:
(a) 15 % of the weight of the product for products falling within Chapters 2 and 4 to 24 of the Harmonized System, other than processed fishery products of Chapter 16;
(b) 15 % of the ex-works price of the product for other products, except for products falling within Chapters 50 to 63 of the Harmonized System, for which the tolerances mentioned in Notes 6 and 7 of Part I of Annex 22-03, shall apply.
Article 49
Unit of qualification
(Article 64(3) of the Code)
Article 50
Accessories, spare parts and tools
(Article 64(3) of the Code)
Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle which are part of the normal equipment and included in the ex-works price thereof, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.
Article 51
Sets
(Article 64(3) of the Code)
Sets, as defined in General Interpretative rule 3(b) of the Harmonized System, shall be regarded as originating when all the component products are originating products.
When a set is composed of originating and non-originating products, the set as a whole shall however be regarded as originating, provided that the value of the non-originating products does not exceed 15 % of the ex-works price of the set.
Article 52
Neutral elements
(Article 64(3) of the Code)
In order to determine whether a product is an originating product, no account shall be taken of the origin of the following which might be used in its manufacture:
(a) energy and fuel;
(b) plant and equipment;
(c) machines and tools;
(d) any other goods which do not enter, and which are not intended to enter, into the final composition of the product.
Subsection 3
Rules on cumulation and management of stocks of materials applicable within the framework of the GSP of the Union
Article 53
Bilateral cumulation
(Article 64(3) of the Code)
Bilateral cumulation shall allow products originating in the Union to be considered as materials originating in a beneficiary country when incorporated into a product manufactured in that country, provided that the working or processing carried out there goes beyond the operations described in Article 47(1).
Articles 41 to 52 of this Regulation and Article 108 of Implementing Regulation (EU) 2015/2447 shall apply mutatis mutandis to exports from the Union to a beneficiary country for the purposes of bilateral cumulation.
Article 54
Cumulation with Norway, Switzerland or Turkey
(Article 64(3) of the Code)
Article 55
Regional cumulation
(Article 64(3) of the Code)
Regional cumulation shall apply to the following four separate regional groups:
(a) group I: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar/Burma, Philippines, Thailand, Vietnam;
(b) group II: Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Peru, Venezuela;
(c) group III: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka;
(d) group IV: Argentina, Brazil, Paraguay and Uruguay.
Regional cumulation between countries within the same group shall apply only where the following conditions are fulfilled:
(a) the countries involved in the cumulation are, at the time of exportation of the product to the Union, beneficiary countries for which the preferential arrangements have not been temporarily withdrawn in accordance with Regulation (EU) No 978/2012;
(b) for the purpose of regional cumulation between the countries of a regional group the rules of origin laid down in Subsection 2 apply;
(c) the countries of the regional group have undertaken: (i) to comply or ensure compliance with this subsection, and (ii) to provide the administrative cooperation necessary to ensure the correct implementation of this subsection both with regard to the Union and between themselves;
(d) the undertakings referred to in point (c) have been notified to the Commission by the Secretariat of the regional group concerned or another competent joint body representing all the members of the group in question.
For the purposes of point (b), where the qualifying operation laid down in Part II of Annex 22-03 is not the same for all countries involved in cumulation, the origin of products exported from one country to another country of the regional group for the purpose of regional cumulation shall be determined on the basis of the rule which would apply if the products were being exported to the Union.
Where countries in a regional group have already complied with points (c) and (d) of the first subparagraph before 1 January 2011, a new undertaking shall not be required.
The materials listed in Annex 22-04 shall be excluded from the regional cumulation provided for in paragraph 2 in the case where:
(a) the tariff preference applicable in the Union is not the same for all the countries involved in the cumulation; and
(b) the materials concerned would benefit, through cumulation, from a tariff treatment more favourable than the one they would benefit from if directly exported to the Union.
Where the condition laid down in the first subparagraph is not fulfilled, the country to be stated as country of origin on the proof of origin issued or made out for the purposes of exporting the products to the Union shall be the country of the regional group where the highest share of the value of the materials used in the manufacture of the final product originates.
At the request of the authorities of a Group I or Group III beneficiary country, regional cumulation between countries of those groups may be granted by the Commission, provided that the Commission is satisfied that each of the following conditions is met:
(a) the conditions laid down in paragraph 2(a) and (b) are met; and
(b) the countries to be involved in such regional cumulation have undertaken and jointly notified to the Commission their undertaking: (i) to comply or ensure compliance with this Subsection, Subsection 2 and all other provisions concerning the implementation of the rules of origin; and (ii) to provide the administrative cooperation necessary to ensure the correct implementation of this Subsection and Subsection 2 both with regard to the Union and between themselves.
The request referred to in the first sub-paragraph shall be supported with evidence that the conditions laid down in that sub-paragraph are met. It shall be addressed to the Commission. The Commission will decide on the request taking into account all the elements related to the cumulation deemed relevant, including the materials to be cumulated.
Where the condition laid down in the first subparagraph is not fulfilled, the country to be stated as country of origin on the proof of origin for the purposes of exporting the products to the Union shall be the country participating in the cumulation where the highest share of the value of the materials used in the manufacture of the final product originates.
Article 56
Extended cumulation
(Article 64(3) of the Code)
At the request of any beneficiary country’s authorities, extended cumulation between a beneficiary country and a country with which the Union has a free-trade agreement in accordance with Article XXIV of the General Agreement on Tariffs and Trade (GATT) in force, may be granted by the Commission, provided that each of the following conditions is met:
(a) the countries involved in the cumulation have undertaken to comply or ensure compliance with this Subsection, Subsection 2 and all other provisions concerning the implementation of the rules of origin, and to provide the administrative co-operation necessary to ensure the correct implementation of this subsection and Subsection 2 both with regard to the Union and also between themselves;
(b) the undertaking referred to in point (a) has been notified to the Commission by the beneficiary country concerned.
The request referred to in the first sub-paragraph shall contain a list of the materials concerned by the cumulation and shall be supported with evidence that the conditions laid down in points (a) and (b) of the first sub-paragraph are met. It shall be addressed to the Commission. Where the materials concerned change, another request shall be submitted.
Materials falling within Chapters 1 to 24 of the Harmonized System shall be excluded from extended cumulation.
In order for the obtained product to acquire originating status, it shall not be necessary that the materials originating in a country with which the Union has a free-trade agreement and used in a beneficiary country in the manufacture of the product to be exported to the Union have undergone sufficient working or processing, provided that the working or processing carried out in the beneficiary country concerned goes beyond the operations described in Article 47(1).
Article 57
Application of bilateral cumulation or cumulation with Norway, Switzerland or Turkey in combination with regional cumulation
(Article 64(3) of the Code)
Where bilateral cumulation or cumulation with Norway, Switzerland or Turkey is used in combination with regional cumulation, the product obtained shall acquire the origin of one of the countries of the regional group concerned, determined in accordance with the first and the second sub-paragraphs of Article 55(4) or, where appropriate, with the first and the second sub-paragraphs of Article 55(6).
Article 58
Accounting segregation of Union exporters’ stocks of materials
(Article 64(3) of the Code)
The authorisation shall be granted only if by use of the method referred to in paragraph 1 it can be ensured that, at any time, the quantity of products obtained which could be considered as ‘originating in the Union’ is the same as the number that would have been obtained by using a method of physical segregation of the stocks.
If authorised, the method shall be applied and the application thereof shall be recorded on the basis of the general accounting principles applicable in the Union.
They may withdraw the authorisation in the following cases:
(a) the holder makes improper use of the authorisation in any manner whatsoever, or
(b) the holder fails to fulfil any of the other conditions laid down in this subsection, Subsection 2 and all other provisions concerning the implementation of the rules of origin.
Subsection 4
Definition of the concept of originating products applicable within the framework of the rules of origin for the purposes of preferential tariff measures adopted unilaterally by the Union for certain countries or territories
Article 59
General requirements
(Article 64(3) of the Code)
For the purposes of the provisions concerning preferential tariff measures adopted unilaterally by the Union for certain countries, groups of countries or territories (hereinafter referred to as ‘beneficiary country or territory’), with the exception of those referred to in Subsection 2 of this section and the overseas countries and territories associated with the Union, the following products shall be considered as products originating in a beneficiary country or territory:
(a) products wholly obtained in that beneficiary country or territory within the meaning of Article 60;
(b) products obtained in that beneficiary country or territory, in the manufacture of which products other than those referred to in point (a) are used, provided that those products have undergone sufficient working or processing within the meaning of Article 61.
Article 60
Wholly obtained products
(Article 64(3) of the Code)
The following shall be considered as wholly obtained in a beneficiary country or territory or in the Union:
(a) mineral products extracted from its soil or from its seabed;
(b) vegetable products harvested there;
(c) live animals born and raised there;
(d) products from live animals raised there;
(e) products from slaughtered animals born and raised there;
(f) products obtained by hunting or fishing conducted there;
(g) products of sea-fishing and other products taken from the sea outside the territorial waters by its vessels;
(h) products made on board its factory ships exclusively from the products referred to in (g);
(i) used articles collected there, fit only for the recovery of raw materials;
(j) waste and scrap resulting from manufacturing operations conducted there;
(k) products extracted from the seabed or below the seabed which is situated outside its territorial waters but where the beneficiary country or territory or a Member State has exclusive exploitation rights;
(l) goods produced there exclusively from products specified in (a) to (k).
The terms ‘its vessels’ and ‘its factory ships’ in paragraph 1(g) and (h) shall apply only to vessels and factory ships which fulfil the following conditions:
(a) they are registered or recorded in the beneficiary country or territory or in a Member State;
(b) they sail under the flag of a beneficiary country or territory or of a Member State;
(c) they are owned to the extent of at least 50 % by nationals of the beneficiary country or territory or of Member States or by a company with its head office in that beneficiary country or territory or in one of the Member States, of which the manager or managers, chairman of the board of directors or of the supervisory board, and the majority of the members of such boards are nationals of that beneficiary country or territory or of the Member States and of which, in addition, in the case of companies, at least half the capital belongs to that beneficiary country or territory or to the Member States or to public bodies or nationals of that beneficiary country or territory or of the Member States;
(d) the master and officers of the vessels and factory ships are nationals of the beneficiary country or territory or of the Member States;
(e) at least 75 % of the crew are nationals of the beneficiary country or territory or of the Member States.
Article 61
Sufficiently worked or processed products
(Article 64(3) of the Code)
For the purposes of Article 59, products which are not wholly obtained in a beneficiary country or territory or in the Union shall be considered to be sufficiently worked or processed provided that the conditions set out in the list in Annex 22-11 are fulfilled.
Those conditions indicate, for all products covered by this Subsection, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials.
If a product which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.
Article 62
Insufficient working or processing
(Article 64(3) of the Code)
Without prejudice to paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 61 are satisfied:
(a) preserving operations to ensure that the products remain in good condition during transport and storage;
(b) breaking-up and assembly of packages;
(c) washing, cleaning; removal of dust, oxide, oil, paint or other coverings;
(d) ironing or pressing of textiles and textile articles;
(e) simple painting and polishing operations;
(f) husking, partial or total milling, polishing and glazing of cereals and rice;
(g) operations to colour or flavour sugar or form sugar lumps; partial or total milling of sugar;
(h) peeling, stoning and shelling, of fruits, nuts and vegetables;
(i) sharpening, simple grinding or simple cutting;
(j) sifting, screening, sorting, classifying, grading, matching (including the making-up of sets of articles);
(k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;
(l) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;
(m) simple mixing of products, whether or not of different kinds; mixing of sugar with any material;
(n) simple addition of water or dilution or dehydration or denaturation of products;
(o) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;
(p) slaughter of animals;
(q) a combination of two or more of the operations specified in points (a) to (p).
Article 63
Unit of qualification
(Article 64(3) of the Code)
Accordingly, it follows that:
(a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonised System in a single heading, the whole constitutes the unit of qualification;
(b) when a consignment consists of a number of identical products classified under the same heading of the Harmonised System, each product must be taken individually when applying the provisions of this Subsection.
Article 64
General tolerance
(Article 64(3) of the Code)
Where, in the list, one or several percentages are given for the maximum value of non-originating materials, such percentages must not be exceeded through the application of the first subparagraph.
Article 65
Accessories, spare parts and tools
(Article 64(3) of the Code)
Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.
Article 66
Sets
(Article 64(3) of the Code)
Sets, as defined in general interpretative rule 3 of the Harmonised System, shall be regarded as originating when all the component products are originating products. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating provided that the value of the non-originating products does not exceed 15 % of the ex-works price of the set.
Article 67
Neutral elements
(Article 64(3) of the Code)
In order to determine whether a product is an originating product, it shall not be necessary to determine the origin of the following which might be used in its manufacture:
(a) energy and fuel;
(b) plant and equipment;
(c) machines and tools;
(d) goods which do not enter, and which are not intended to enter, into the final composition of the product.
Subsection 5
Territorial requirements applicable within the framework of the Rules of Origin for the purposes of preferential tariff measures adopted unilaterally by the Union for certain countries or territories
Article 68
Principle of territoriality
(Article 64(3) of the Code)
'The conditions set out in Subsection 4 and in this subsection for acquiring originating status must continue to be fulfilled at all times in the beneficiary country or territory or in the Union.
If originating products exported from the beneficiary country or territory or from the Union to another country are returned, they shall be considered as non-originating unless it can be demonstrated to the satisfaction of the competent authorities that the following conditions are fulfilled:
(a) the returned products are the same as those which were exported;
(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.
Article 69
Direct transport
(Article 64(3) of the Code)
The following shall be considered as transported directly from the beneficiary country or territory to the Union or from the Union to the beneficiary country or territory:
(a) products transported without passing through the territory of any other country;
(b) products constituting one single consignment transported through the territory of countries other than the beneficiary country or territory or the Union, with, should the occasion arise, transhipment or temporary warehousing in those countries, provided that the products remain under the supervision of the customs authorities in the country of transit or warehousing and they do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition;
(c) products which are transported by pipeline without interruption across a territory other than that of the exporting beneficiary country or territory or of the Union.
Evidence that the conditions set out in paragraph 1(b) are fulfilled shall be supplied to the competent customs authorities by the production of any of the following:
(a) a single transport document covering the passage from the exporting country through the country of transit;
(b) a certificate issued by the customs authorities of the country of transit: (i) giving an exact description of the products; (ii) stating the dates of unloading and reloading of the products and, where applicable, the names of the ships, or the other means of transport used, and (iii) certifying the conditions under which the products remained in the country of transit;
(c) or, failing these, any substantiating documents.
Article 70
Exhibitions
(Article 64(3) of the Code)
Originating products, sent from a beneficiary country or territory for exhibition in another country and sold after the exhibition for importation into the Union, shall benefit on importation from the tariff preferences referred to in Article 59, provided that they meet the requirements of Subsection 4 and this subsection entitling them to be considered originating in that beneficiary country or territory and provided that it is shown to the satisfaction of the competent Union customs authorities that:
(a) an exporter has consigned the products from the beneficiary country or territory directly to the country in which the exhibition is held and has exhibited them there;
(b) the products have been sold or otherwise disposed of by that exporter to a person in the Union;
(c) the products have been consigned during the exhibition or immediately thereafter to the Union in the state in which they were sent for exhibition;
(d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.
CHAPTER 2
Value of goods for customs purposes
Article 71
Simplification
(Article 73 of the Code)
The authorisation referred to in Article 73 of the Code may be granted where the following conditions are met:
(a) the application of the procedure referred to in Article 166 of the Code would, in the circumstances, represent disproportioned administrative costs;
(b) the customs value determined, will not significantly differ from that determined in the absence of an authorisation.
The grant of the authorisation is conditional to the fulfilment, by the applicant, of the following conditions:
(a) he complies with the criterion laid down in Article 39(a) of the Code;
(b) he maintains an accounting system which is consistent with the generally accepted accounting principles applied in the Member State where the accounts are held and which will facilitate audit-based customs control. The accounting system shall maintain a historical record of data that provides an audit trail from the moment the data enters the file;
(c) he has an administrative organisation which corresponds to the type and size of business and which is suitable for the management of the flow of goods, and have internal controls capable of detecting illegal or irregular transactions;
TITLE III
CUSTOMS DEBT AND GUARANTEES
CHAPTER 1
Incurrence of a customs debt
Section 1
Provisions common to customs debts incurred on import and export
Subsection 1
Rules for calculation of the amount of import or export duty
Article 72
Calculation of the amount of import duty on processed products resulting from inward processing
(Article 86(3) of the Code)
The quantitative scale method laid down in paragraphs 3 and 4 shall be applied in the following cases:
(a) where only one kind of processed products is derived from the processing operations;
(b) where different kinds of processed products are derived from the processing operations and all constituents or components of the goods placed under the procedure are found in each of those processed products.
In the case referred to in paragraph 2(b), the quantity of the goods placed under the inward processing procedure considered to be present in the processed products for which a customs debt is incurred shall be determined by applying, to the total quantity of the goods placed under the inward processing procedure, a percentage calculated by multiplying the following factors:
(a) the percentage which the processed products for which a customs debt is incurred constitute of the total quantity of the processed products of the same kind resulting from the processing operation;
(b) the percentage which the total quantity of the processed products of the same kind, irrespective of whether a customs debt is incurred, constitutes of the total quantity of all processed products resulting from the processing operation.
The quantity of the goods placed under the inward processing procedure considered to be present in processed products for which a customs debt is incurred shall be determined by applying, to the total quantity of the goods placed under the inward processing procedure, a percentage calculated by multiplying the following factors:
(a) the percentage which the processed products for which a customs debt is incurred constitute of the total value of the processed products of the same kind resulting from the processing operation;
(b) the percentage which the total value of the processed products of the same kind, irrespective of whether a customs debt is incurred, constitute of the total value of all processed products resulting from the processing operation.
For the purposes of applying the value scale method, the value of the processed products shall be established on the basis of current ex-works prices in the customs territory of the Union or, where such ex-works prices cannot be determined, the current selling prices in the customs territory of the Union for identical or similar products. Prices between parties which appear to be associated or to have a compensatory arrangement with each other may not be used for the determination of the value of the processed products unless it is determined that the prices are unaffected by the relationship.
Where the value of the processed products cannot be determined pursuant to the third subparagraph, it shall be determined by any reasonable method.
Article 73
Application of the provisions on end-use procedure to processed products resulting from inward processing
(Article 86(3) of the Code)
Paragraph 1 shall apply where the following conditions are fulfilled:
(a) an authorisation to place the goods under the end-use procedure could have been issued, and
(b) the conditions for the duty exemption or the reduced rate of duty on account of specific use of those goods would have been fulfilled at the time of acceptance of the customs declaration for placing goods under the inward processing procedure.
Article 74
Application of the preferential tariff treatment to goods placed under inward processing
(Article 86(3) of the Code)
For the purposes of the application of Article 86(3) of the Code, where, at the time of the acceptance of the customs declaration for placing goods under the inward processing procedure the imported goods fulfil the conditions to qualify for preferential tariff treatment within tariff quotas or ceilings, those goods shall be eligible for any preferential tariff treatment provided for in respect of identical goods at the time of acceptance of the declaration of release for free circulation.
Article 75
Specific import duty on processed products resulting from outward processing or replacement products
(Article 86(5) of the Code)
Where a specific import duty is to be applied in relation to processed products resulting from the outward processing procedure or replacement products, the amount of the import duty shall be calculated on the basis of the customs value of the processed products at the time of acceptance of the customs declaration for release for free circulation minus the statistical value of the corresponding temporary export goods at the time when they were placed under outward processing, multiplied by the amount of import duty applicable to the processed products or replacement products, divided by the customs value of the processed products or replacement products.
Article 76
Derogation for the calculation of the amount of import duty on processed products resulting from inward processing
(Article 86(3) and 86(4) of the Code)
Article 86 (3) of the Code shall apply without a request from the declarant where all of the following conditions are fulfilled:
(a) the processed products resulting from the inward processing procedure are imported directly or indirectly by the relevant holder of the authorisation within a period of one year after their re-export;
(b) the goods would, at the time of the acceptance of the customs declaration for placing the goods under the inward processing procedure, have been subject to an agricultural or commercial policy measure, a provisional or definitive anti-dumping duty, a countervailing duty, a safeguard measure or an additional duty resulting from a suspension of concessions had they been declared for release for free circulation;
(c) no examination of the economic conditions was required in accordance with Article 166.
Subsection 2
Time-limit for establishing the place where the customs debt is incurred
Article 77
Time-limit for establishing the place where the customs debt is incurred under Union transit
(Article 87(2) of the Code)
For goods placed under the Union transit procedure, the time-limit referred to in Article 87(2) of the Code shall be either of the following:
(a) seven months from the latest date on which the goods should have been presented at the customs office of destination, unless before the expiry of that time limit a request to transfer the recovery of the customs debt was sent to the authority responsible for the place where, according to the evidence obtained by the customs authority of the Member State of departure, the events from which the customs debt arises occurred, in which case that time-limit is extended by a maximum of one month;
(b) one month from the expiry of the time-limit for the reply by the holder of the procedure to a request for the information needed to discharge the procedure, where the customs authority of the Member State of departure has not been notified of the arrival of the goods and the holder of the procedure has provided insufficient or no information.
Article 78
Time-limit for establishing the place where the customs debt is incurred under transit in accordance with the TIR Convention
(Article 87(2) of the Code)
For goods placed under transit in accordance with the Customs Convention on the international transport of goods under cover of TIR carnets, including any subsequent amendments (TIR Convention), the time-limit referred to in Article 87(2) of the Code shall be seven months from the latest date on which the goods should have been presented at the customs office of destination or exit.
Article 79
Time-limit for establishing the place where the customs debt is incurred under transit in accordance with the ATA Convention or the Istanbul Convention
(Article 87(2) of the Code)
For goods placed under transit in accordance with the Customs Convention on the ATA Carnet for the Temporary Admission of Goods done at Brussels on 6 December 1961, including any subsequent amendments (ATA Convention) or with the Convention on Temporary Admission, including any subsequent amendments (Istanbul Convention) the time-limit referred to in Article 87(2) of the Code shall be seven months from the date on which the goods should have been presented at the customs office of destination.
Article 80
Time-limit for establishing the place where the customs debt is incurred in cases other than transit
(Article 87(2) of the Code)
For goods placed under a special procedure other than transit or for goods which are in temporary storage, the time-limit referred to in Article 87(2) of the Code shall be seven months from the expiry of any of the following periods:
(a) the prescribed period for discharge of the special procedure;
(b) the prescribed period for ending the customs supervision of end-use goods;
(c) the prescribed period for ending the temporary storage;
(d) the prescribed period for ending the movement of goods placed under the warehousing procedure between different places in the customs territory of the Union where the procedure was not discharged.
CHAPTER 2
Guarantee for a potential or existing customs debt
Section 1
General provisions
Article 81
Cases where no guarantee shall be required for goods placed under the temporary admission procedure
(Article 89(8)(c) of the Code)
The placing of goods under the temporary admission procedure shall not be subject to the provision of a guarantee in the following cases:
(a) where the customs declaration may be made orally or by any other act as referred to in Article 141;
(b) in the case of materials used in international traffic by airlines, shipping or railway companies or providers of postal services provided that those materials are distinctively marked;
(c) in the case of packings imported empty, provided that they carry indelible non-removable markings;
(d) where the previous holder of the authorisation for temporary admission has declared the goods for the temporary admission procedure in accordance with Article 136 or Article 139 and those goods are subsequently placed under temporary admission for the same purpose.
Article 82
Guarantee in the form of an undertaking by a guarantor
(Article 94, 22(4) and 6(3)(a) of the Code)
Article 83
Forms of guarantee other than a cash deposit or an undertaking given by a guarantor
(Article 92(1)(c) of the Code)
The forms of guarantee other than a cash deposit or an undertaking given by a guarantor shall be the following:
(a) the creation of a mortgage, a charge on land, an antichresis or other right deemed equivalent to a right pertaining to immovable property;
(b) the cession of a claim, the pledging, with or without surrendering possession, of goods, securities or claims or a savings bank book or entry in the national debt register;
(c) the assumption of joint contractual liability for the full amount of the debt by a third party approved for that purpose by the customs authorities or the lodging of a bill of exchange the payment of which is guaranteed by such third party;
(d) a cash deposit or means of payment deemed equivalent thereto other than in euro or the currency of the Member State in which the guarantee is required;
(e) participation, subject to payment of a contribution, in a general guarantee scheme administered by the customs authorities.
Section 2
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