Simplified customs procedure
Simplified procedures are available for both imports and exports. The principal procedures are the Simplified Declaration Procedure and the Local Clearance Procedure, now Entry in the Declarant’s Records. An authorisation is required from Revenue to operate the procedure.
Authorised Economic Operators are deemed to have the necessary qualifications, subject to any additional conditions relevant to the simplification in question.
The data which must be supplied at clearance is that required to identify the goods and allow customs to assess the risks. The formal customs declaration is made afterwards within a set timeframe. There are a number of procedures which facilitate simplified and speedier customs clearance.
Local Clearance Procedure I
The goods are released into free circulation by entry into the business’s records. The procedure is available for the following types of goods
- goods in transit procedures;
- goods previously placed under customs procedures;
- goods which having been presented to customs are consigned to a premises in accordance with transit procedure;
- goods brought into the EU with an exemption from the requirement that they be presented to customs.
Businesses authorised to operate the procedure must submit prior notification notices. The notification may be by electronic means to the Revenue. Certain particulars are required including
- authorisation details;
- goods types;
- country of export;
- country of import;
- consignor details;
- route details;
- tariff numbers;
- duty rate;
- manifest type.
Local Clearance Procedure II
Businesses holding authorisations to use the LCP must comply with the conditions of their authorisation. Control plans must be put in place. There are sanctions for non-compliance with the terms of an authorisation. An authorisation may be suspended and revoked for abuse. Administrative penalties may be applied.
The data must be entered in the undertaker’s electronic systems on the date of entry. This is to facilitate Revenue making the requisite checks
A supplementary declaration must be made, by the fifth day of the month following the date of entry. The declarations may cover multiple importations or consignments. Certain data is required if the Revenue take steps to verify compliance
Simplified Declaration Procedure
The same broad principles apply to the simplified declaration procedure. The simplified declaration is made electronically. The date of acceptance of this notification fixes the duties.
A supplementary declaration must be as furnished. The supplementary declaration may cover multiple consignments. It must be filed by the fifth day of the month following the release of the goods for import. The procedure is also available in respect of export declarations
The business must meet certain requirements including relating financial solvency, compliance and record keeping. A holder of Authorised Economic Operator status is deemed to fulfil the requirements subject to compliance with the necessary conditions specific to the simplification procedure concerned.
The authorisation for the use of the process requires the business to have the requisite financial, procedural and technical capacities. The authorisation may be revoked or suspended for breach of conditions. There must be control plans in place for all businesses authorised to use the simplified declaration procedure.
There is a single authorisation / qualification for the simplified procedure. It is an EU wide authorisation. The place where the business is established determines the supervising member state. The application procedure is simplified where the applicant holds Authorised Economic Operators status
Outward Processing I
Outward processing is a customs procedure which allows goods to be exported out of the EU for processing and then re-imported, with relief granted from import duties on the EU content of the goods. The process can vary from packaging to more complicated processing and manufacture of goods.
An application must be made by a business to qualify for outward processing. It is not available for some categories of goods, including certain agricultural goods. An authorisation may be issued by the national authority. A single EU wide authorisation is also available. There is a simplified authorisation for traders who use outward processing only occasionally.
Goods are entered into the outward processing procedure by the return of a declaration, with the relevant code. The AEP system allows automatic a verification process for authorised OP traders.
Outward Processing II
Goods are discharged from OP when all of the conditions of the procedure have been complied with, and the compensating products are then re-imported into the EU. The export declaration and reimportation declaration must be retained
There are two methods of calculating duty relief for goods exported under outward processing. By the added value method, duty is charged on the cost of processing export goods and transportation back to the EU. Costs are added to the value of the exported products to arrive at the customs value of the compensating product. Duty is charged on the difference between the customs value and the value of the exported product
The duty differential method is based on the amount of duty that would have been due on the export goods. The import duty is calculated on the full customs value of the compensating products, and there is deducted the import duty that would have been payable on the exported goods if they have been imported at the same time.
Processing Under Customs Control
Processing under customs control is a customs procedure. It allows goods to be imported from outside the EU without being subject to import duties. Duty is payable on the finished goods which are released for free circulation. The rate is that which would have applied if the goods had been imported directly.
Businesses authorised to use PCC may import goods with customs duties suspended. They may process them at their premises or elsewhere.
Goods are entered into PCC by entering the appropriate code on the SAD. The requisite invoices and commercial documents must be retained. The goods may be entered automatically through the AEP. The process verifies the trader’s authorisation to use the process
Authorisation is required to use the processing under customs control procedure. Security is required in connection with the authorisation, by way of a bond. There is provision for national authorisation and single EU wide authorisation. Authorisations must be renewed. They may be suspended or revoked if abused. The authorisation is subject to terms and conditions.
PCC may be authorised where
- the rules regarding quotas and origin are not affected;
- processing is permitted in the EU without harming the essential interests of Community producers of similar goods;
- the imported goods can be identified in the processed product;
- it would not be viable to restore the processed goods to their original condition;
- the duty on the finished goods is less than that applicable to the imported goods.
Discharge from PCC
Goods are discharged and regarded as complete when all conditions have been complied with and compensating goods or products are.
- released into circulation;
- exported from the EU;
- transferred to another procedure;
- transferred to another state to be entered in a procedure in that state;
- given up to Revenue.
A bill of discharge must be issued within 30 days of the expiry of the period of discharge. The bill of discharge is a summary report giving certain details of the goods declaration, the imported goods and compensating products, together with details of values.
The customs value of the imported goods plus processing costs may be used to calculate the duty on the compensating products. Alternatively, the transactional value of identical or similar goods for export to the Community or exported at the time may be used to determine value.
PCC is available only a limited extent in respect of agricultural products subject to the CAP.
Inward processing is a customs procedure. There are two methods by which relief is available. Under the suspension system, the duties payable is suspended on importation with security being provided in the form of a bond. Under the drawback. system, the import duties are paid and reclaimed on export. In order to qualify for inward processing, the trader must intend to export some or all of the processed goods.
As with other customs procedures, the trader must be authorised. Security is required. There is provision for national authorisations or single trans-EU authorisation. There is provision for simplified authorisation for those who use the process only occasionally.
Goods are entered into inward processing by entering the requisite code in the SAD with details of the goods concerned. The invoice must be retained by the trader. The AEP system allows automatic verification process for authorised IP businesses.
Inward processing is restricted in relation to CAP goods.
Discharge from OP
Goods are discharged from the outward processing procedure by
- export from the EU;
- transfer to another procedure;
- transfer to another EU state to be entered into another customs procedure in that EU state;
- released to free circulation with the payment of duty, VAT and compensatory interest;
- destruction of the goods.
A bill of discharge is lodged with the customs within 30 days of discharge. The Revenue examines the bill on a risk analysis basis to verify that it is in accordance with the trader’s underlying trading patterns.
When goods are released into free circulation on a regular basis, a deferred payment arrangement for duty liability may be put in place. The duty is calculated as that appropriate to the imported goods at the date of entry. Duty and any compensatory interest are payable at the time of release into free circulation in the EU.
Relief is available in some cases in respect of the temporary importation of goods. Such goods would be otherwise subject to customs duty, import VAT and in some cases, anti-dumping countervailing and excise duties
The reliefs are available principally for goods temporarily imported with a view to being re-exported. They extend on certain imports for the purpose of a prospective sale.
Security must be provided by way of bond or otherwise, to cover the suspended charges. In certain cases, security is not required, including where goods move under an ATA carnet, traveller’s personal effects, means of transport, pallets and containers and certain agricultural products.
A temporary import authorisation is required. An import declaration claiming the exemption may be accepted as an authorisation once duly stamped by Revenue. There is provision for a single EU wide authorisation. Persons who are authorised are subject to terms and conditions and are inspected by Revenue
The maximum period of temporary importation is 24 months. Shorter periods apply in respect of certain goods. The period of importation is fixed at the date of authorisation. The date of expiry must be shown on the authorisation before it is issued. Exceptionally, the period may be extended.
The temporary importation is discharged when the goods are
- exported outside the EU;
- placed in a customs warehouse, free zone or transit;
- released for free circulation on payment of import charges;
- destroyed or placed under another customs treatment.
On export, Revenue must be satisfied that the terms of the temporary importation have been complied with.
Goods which are temporarily imported may be subsequently released into free circulation on payment of the charges plus interest. The amount of import duty charged on temporarily imported goods is the amount applicable when they were introduced into the temporary importation arrangements. Compensatory interest is paid if goods which are temporarily imported, are released into free circulation.
TI Qualifying Goods
There are various categories of goods which qualify for a temporary importation relief. They include
- certain professional equipment owned by a person outside the EU and used by the importer or under his supervision;
- goods for exhibition at a public event;
- teaching aids and scientific equipment for research and teaching;
- medical, surgical and laboratory equipment;
- goods for use in production for export;
- goods imported for the purposes of tests;
- commercial samples, films tapes, suitable for advertising and publicity;
- traveller’s personal effects;
- publicity material;
- goods imported for sports purposes;
- publicity material
Temporary importation relief is available for certain classes of goods, which are imported with a view to a possible sale. This includes goods other than e newly manufactured goods imported with a view for sale by action, works of art and antiques and consignment on approval
Importation relief is available in respect sea, and inland waterway means of transport. The maximum possible period is 24 months. In the case of private use, it is six months. Means of transport imported for commercial use must be used by a person established outside the EU.
References and Sources
Customs Law of the European Union 4th ed 2012 M Fabio
EC Customs Law (Oxford European Community Law Library) 2nd Edition 2008 Timothy Lyons
Customs Code of the European Union Hardcover (1996) Tom Walsh Damian McCarthy
European Union Customs Code 2015 Tom Walsh
The Union Customs Code Regulation (EU) No 952/2013 of the European Parliament and of the Council.
amended by Regulation 2016/2339
The UCC Delegated Act Commission Delegated Regulation No 2015/2446.
The UCC Implementing Act Commission Implementing Regulation No 2015/2447.
The UCC Transitional Delegated Act wCommission Delegated Regulation No 2016/341.
Copyright (Customs) Regulations 1964, S.I. No. 231 of 1964443
Customs Act 2015
Customs-Free Airport Act 1947
Customs-free Airport Order 1947 (and numerous amendement)
Transport Customs-Free Airport (Amendment) Act 1958
Free Ports Act 1986
Customs and Excise (Mutual Assistance) Act 2001
ustoms and Excise (Mutual Assistance) Act, 2001
(Commencement) Order 2002, S.I. No. 59 of 20022996
Customs and Excise (Mutual Assistance) Act 2001 (Section 8)
(Protection of Manual Data) Regulations 2004, S.I. No. 254 of 2004
Customs (Electronic Filing of Returns) Order 2014, S.I. No. 474 of 2014
Customs and Excise (Provision of Information relating to Persons, Conveyances and Goods) Regulations 2011, S.I. No.
410 of 2011
European Communities (Customs) Regulations 1972, S.I. No. 334 of 1972
European Communities (Customs) (Amendment) Regulations, S.I. No. 211 of 1980
European Communities (Customs) (No.2) Regulations, S.I. No. 202 of 1982
European Communities (Customs) Regulations, S.I. No. 78 of 1983
European Communities (Customs) Regulations, S.I. No. 365 of 1984
European Communities (Customs) (No.2) Regulations, S.I. No. 366 of 1984
European Communities (Customs) (Revocation of Statutory Instruments) Regulations
European Communities (Customs and Excise) Regulations 1991, S.I. No. 57 of 19913925
European Communities (Customs and Excise) (Amendment) Regulations 1991, S.I. No. 174 of 1991
European Communities (Customs and Excise) (Amendment) (No. 2) Regulations 1991, S.I.No. 368 of 1991
European Communities (Customs and Excise) Regulations 1992, S.I. No. 394 of 1992
European Communities (Customs) (No. 2) Regulations 1992, S.I. No. 431 of 1992
European Communities (Customs) (No. 3) Regulations 1992, S.I. No. 432 of 1992
European Communities (Community Transit) Regulations 1992, S.I. No. 433 of 1992
European Communities (Tir Carnet and Ata Carnet Transit) Regulations 1993, S.I. No. 61 of 1993
European Communities (Customs Appeals) Regulations 1995, S.I. No. 355 of 1995
European Communities (Customs Declarations) Regulations 1996, S.I. No. 114 of 1996
European Communities (Customs Action against Goods suspected of Infringing certain Intellectual Property Rights) (Amendment) Regulations 2013, S.I. No. 309 of 2013
European Union (Customs enforcement of Intellectual Property Rights) Regulations 2013, S.I.No. 562 of 2013