Simplified Procedures
Revenue Guidance
Instruction Manual
On
End-Use
Procedure
August 2016
1.1 What is End-use?
The End Use Procedure is provided for in the Union Customs Code (UCC), Articles 210-225 and
254, the Delegated Act (DA) Articles 161-183 and 239, and the Implementing Act (IA) Articles
258-271.
End-use is a Customs procedure whereby goods entered for free circulation into the European
Union (EU) may be given favourable tariff treatment at a reduced or zero rate of duty on condition
they are put to a prescribed use. This procedure is designed to facilitate trade and ease of movement
of goods within the EU.
1.2 How End-use works
In order to obtain End-use relief, the importer must be the holder of an End-use Authorisation. The
goods must be put to a prescribed use within a certain period of time. The importer must also keep
records on the goods and their treatment. If the goods are not put to the prescribed End-Use, duty
will be due.
The relief applies to customs duty only and does not extend to any anti-dumping duty, value-added
tax or excise duty that may be payable.
1.3 What goods qualify for End-use relief?
(i) Goods eligible for End-use are identified by their tariff classification:
Provision is made under Regulations dealing with suspension of duties in the Tariff
to have the suspension of duty made dependent on the end use of the goods. For
example, Council Regulation (EU) No 1344/2011 of 19 December 2011 (suspending
the autonomous Common Customs Tariff) makes the granting of some suspensive
rates subject to end use control while Council Regulation (EU) No 3050/95 of 22
December 1995 (temporarily suspending the autonomous Common Customs Tariff
duties on a number of products intended for the construction, maintenance and repair
of aircraft) also makes the granting of the suspensive rate subject to End Use control.
(ii) Products intended for aircraft, ships, boats and for drilling platforms as set out in Part
I, Section II of the Combined Nomenclature. A listing of tariff headings/codes for
these products is given each year in the Combined Nomenclature.
(iii) Weapons and military equipment certified by a competent authority:
Council Regulation No. 150/2003 suspends import duties on a number of military
weapons and equipment on condition that the goods are being used by, or on behalf
of, the military forces of a Member State for the defence of the Member State or for
international peacekeeping or support operations. Duty is suspended for importation
of goods under this regulation subject to the application of End-use controls and the
issue of the appropriate certificate by the competent authority, which in Ireland is the
Department of Defence. Businesses importing such goods on behalf of the
Department of Defence must be authorised for End-use and must hold the
appropriate certificate issued by that Department (or by the equivalent competent
authority in another Member State) covering the goods they wish to import.
Appendix IV contains a list of 4-digit Tariff headings covering weapons and military
equipment on which import duties are suspended.
3
1.4 Persons Eligible for End-use relief
To benefit from End-use relief, the applicant must be established in the EU. Persons who may
qualify include importers:
(i) who, themselves, put the goods to the prescribed End-use; or
(ii) that partly process the End-use goods and transfer these partly processed goods to
another person (or other persons) authorised to carry on the End-use process; or
(iii) of End-use goods who, themselves, do not carry out any End-use processing but
merely distribute the goods to other authorised persons who put the goods to the
prescribed End-use
1.5 Exclusions from relief
Goods Not in Free Circulation; the provisions of this Manual do not apply to goods on entry to
another Customs Procedure (such as Inward Processing, Warehousing or Free Zone). However, on
discharge from another customs procedure End-use relief may be claimed.
2. Application for Authorisation
(UCC Article 211)
2.1 Application Procedure.
(UCC Article 22)
Application forms are available on the Revenue website at www.revenue.ie under Customs,
Businesses and Customs, Economic Procedures. All applications, including those for renewal or
amendment to existing authorisations, must be submitted in writing to Authorisations & Reliefs
Unit.
On receipt of an application Authorisations & Reliefs Unit will carry out the following tasks:
check that all of the necessary information to process the application has been supplied by
the trader;
where additional information is found to be required the trader will be contacted to provide
same.
The application is formally accepted upon receipt of all relevant information.
2.2 Region/LCD Report on New Applications.
The Control Officer should establish the bona fides of the applicant, examine the accounting
procedures and, if relevant to the particular end-use procedure, examine the applicant’s premises.
The Control Officer should advise the applicant of their obligations under the End-use system and
should establish that the applicant has a copy of the Trader Guidelines on End-use or has access to
them on the Revenue website. Where the applicant is a company, a senior executive in charge
should be consulted to ensure that management are aware of their obligations.
A report should then be completed including a recommendation as to whether or not the
authorisation should be granted. Additional notes may be attached to the report if required. In
complex cases the finalisation of the report may involve an additional visit to the trader. Completed
reports should be sent to Authorisations & Reliefs Unit as soon as possible and, in this regard, it
should be borne in mind that an authorisation must generally issue within 30 days of acceptance of
the application.
4
2.3 Guarantee
(Union Code Articles 211 (3)(c), and 89 )
An Authorisation for End use cannot issue until an appropriate guarantee is in place. The purpose of
the guarantee is to secure duties suspended on goods imported under End use.
End use allows for a preferential rate of duty to be applied to the imported goods on condition that
the goods will be put to the specific end use. For the calculation of the guarantee the non
preferential duty rate must be used, as this is the duty liability if the goods are not put to the end
use.
Example: Airplane CN code 8802400010 (Civil Use ) can be imported with a 0% duty rate if the
trader has an End Use Authorisation, however if the trader does not have an End Use Authorisation
he cannot use this CN code therefore he must use CN code 8802400090 (Other) which has a duty
rate of 2.7%. This 2.7% must be used in the calculation for the guarantee reference amount.
There are two new guarantee options – Individual or Comprehensive. An Individual Guarantee
covers an individual SAD or operation whilst a Comprehensive Guarantee covers all SADs entered
to the procedure. Therefore, while in theory, there are two options, in reality for a special procedure
the most feasible option is the Comprehensive Guarantee. The operator must apply, and be
authorised, for Comprehensive Guarantee. The guarantee may take the form of either a cash deposit
or a guarantee of undertaking from a surety provider. Material on Comprehensive Guarantees is
available on the Revenue website http://www.revenue.ie/en/customs/comprehensiveguarantee/index.html.
The application for a Comprehensive Guarantee should be submitted at the same time as the
application for End use so that the Revenue assessment can be carried out simultaneously.
List of Key Data Elements required for the calculation:
Total value of goods to be placed under the End use procedure during the lifespan of the
authorisation
Non preferential duty rate
Period of discharge
Maximum value of goods which may be under End use at a given point in time
The control officer will establish from the company records the maximum value of goods under
End use at a given point in time over the previous 12 month period. The given point in time to be
used for the calculation of the reference amount for special procedures will be the last day of the
calendar month, therefore only these 12 days in the previous 12 month period need to be examined
to determine the amount of stock on hands. The highest stock record of these 12 days will be used
to determine the guarantee reference amount. The graph below takes the last day of every month
and determines that the highest value of stock on hand under the End Use procedure is €50,000 on
the 31st May.
5
Total value of good which may be placed
under End Use during 3 years (see data field
7 of the application €600,000
Non preferential duty rate 2.7%
Period of Discharge 6 months
Maximum value of goods which may be
under End Use at a given point in time
according to business acitvities* (see graph
below)
€50,000
Calculation of the reference amount
regarding import duty
€50,000 x 2.7% = €1,350
Guarantee reference amount is determined as €1,350
31.01 31.03 31.05 31.07 30.09 30.11 31.01
Estimated value of goods under IP
2.4 Rate of Yield
(UCC Article 254(5) and 255)
The rate of yield is the quantity of manufactured/processed products made from a given quantity of
imported goods. If the application covers more than one process or more than one category of
goods, the rate of yield for each processing operation and the method by which the End-use goods
will be identified in the processed goods should be given. It is important that the rate of yield is
accurate. If it is too low, the goods could be improperly diverted to an ineligible use.
In cases where the rate of yield is not known at the time of application or where the rate may vary,
the application should be noted to the effect that production records will be used as the basis for
establishing the rate. If the rate of yield entered on the application form and authorisation
subsequently changes, the applicant should immediately notify Revenue.
6
3. Type of Authorisations
3.1 Authorisation covering one Member State.
This Authorisation allows the holder to avail of End-use in Ireland only.
3.2 Authorisation covering more than one Member State.
(Article 260 IA)
An Authorisation may be issued which will enable the trader benefit from the End-use
provisions in more than one Member State. An application for such an authorisation is
generally submitted in the Member State where the applicant’s main accounts are held. A
company whose main accounts are held in Ireland will apply to Revenue to have another
Member State or States included in their Irish authorisation. In the same way a company
whose accounts are held in another Member State will apply to the Customs Authorities in
the other Member State to have Ireland included in their authorisation.
3.2.1 Main accounts held in Ireland
All applications for authorisations relevant to Ireland should be made to Authorisations &
Reliefs Unit.
Authorisations & Reliefs Unit will liaise with the Customs Administration in the relevant
Member State(s).
The application will be referred to the relevant Region/LCD for recommendation as will all
information received from the Member State(s) involved.
The designated Control Officer should ensure that any controls required at a local level in
any other Member State are clearly established at this stage.
The Control Officer should complete a report on the application as at para 2.2. Care should
be taken to ensure that transfer arrangements between the different traders mentioned in the
application are acceptable to both Member States. .
On receipt of a positive recommendation from the Control Officer, Authorisations & Reliefs
Unit will prepare a draft authorisation which is immediately communicated to the authorities
in the Member State(s) in which processing will be carried out. This draft will include the
controls required by the Irish Customs.
Authorisations & Reliefs Unit will issue the authorisation on receipt of agreement by the
other Member State(s) or after 30 days if no objections are received.
Responsibility for control of the authorisation rests with the Irish Customs.
Bills of discharge and duty payments for all of the Member States involved must be returned
to the Control Officer in the Region/LCD in which the trader is located.
Authorisations & Reliefs Unit will keep in contact with the Administration(s) in the other
Member State(s) regarding amendments or other issues throughout the lifetime of the
Authorisation.
3.2.2 Main accounts held in another Member State
7
In the case of applications for Authorisations in other Member States concerning operators
in Ireland, the draft authorisation is forwarded by the Member State to Authorisations &
Reliefs Unit.
This draft is forwarded to the Region/LCD where the Irish trader is based. This draft should
be examined in a timely fashion as the authorisation may be issued by the other Member
State if no objection is received within 30 days.
The designated Control Officer should contact the trader and arrange a meeting to examine
the premises where the procedure will be carried out, the accounting procedures used and to
explain to the trader their obligations with regard to this authorisation.
Authorisations & Reliefs Unit will liaise with the issuing Member State regarding any
controls that the Control Officer deems necessary.
On receipt of a positive recommendation from the Control Officer, Authorisations & Reliefs
Unit will inform the Member State that Ireland has no objection to the issuing of the
authorisation.
Authorisations & Reliefs Unit will be kept informed by the Administration(s) in the Member
State which issued the authorisation regarding any amendments or other issues throughout
the lifetime of the authorisation.
Any issues that arise will be notified to the Control Officer in Ireland without delay.
3.3 Retrospective Authorisation
(UCC Article 211(2) Art 172 DA)
A retrospective authorisation may only be issued in exceptional circumstances. Details of these
circumstances must be submitted by the trader and examined before any retrospection can be
considered. The period of retrospection, either for a new authorisation or amendment to an existing
authorisation, may not extend beyond one year before the date that the application for authorisation
or amendment was lodged.
Retrospective authorisations are only possible where all of the following conditions are met;
(a) there is a proven economic need;
(b) the application is not related to attempted deception;
(c) the applicant has proven, on the basis of accounts or records, that:
(i) all the requirements of the procedure are met;
(ii) where appropriate, the goods can be identified for the period involved;
(iii) such account or records allow the procedure to be controlled;
(d) all the formalities necessary to regularise the situation of the goods can be
carried out, including, where necessary, the invalidation of the customs
declarations concerned;
(e) no authorisation with retroactive effect has been granted to the applicant within
three years of the date on which the application was accepted;
(f) an examination of the economic conditions is not required (except where an
application concerns renewal of an authorisation for the same kind of operation
and goods – see point (h)
8
(g) the application does not concern the operation of storage facilities for the
customs warehousing of goods,
(h) where an application concerns renewal of an authorisation for the same kind of
operation and goods, the application is submitted within three years of expiry of
the original authorisation.
With regard to point (e) retrospection will only be allowed once for the same procedure, e.g.
if a trader applies for an IP and an End use procedure the 3 year period will apply to each of
the applications.
All requests for retrospective authorisation should be made to Authorisations & Reliefs Unit, and
will be referred to the relevant Region/LCD for recommendation.
If retrospection is allowed, it will be necessary for the trader to amend the relevant SADs for
the retrospection period as the goods in question will have been imported originally with full
duty paid. The Control Officer should examine these amendments carefully as they will
create a refund situation.
Note: In practice the reduction in the customs duty payable will likely also give rise to
a refund of import Value-Added Tax.
In the case of non-VAT registered traders any such refund of import VAT is to
be allowed.
In the case of VAT registered traders the VAT re-credited by the amended
SAD should be re-debited by way of a short CI. This is necessary as VAT
registered traders claim any VAT refund due to them on their VAT 3.
3.4 Application for an authorisation based on a customs declaration (simplified authorisation)
(Article 163 DA)
In certain cases importers may avail of a Simplified Authorisation arrangement approved by
Revenue at the point of importation where goods are being imported for a particular End-use:
(i) On a one-off basis e.g. to facilitate a trader who is not a regular importer; or
(ii) Where the importation is a straightforward operation, the nature of the intended Enduse
is simple and the Revenue supervision required is uncomplicated (e.g. importation
of a civil aircraft where the End-use can be verified simply by reference to a certificate
of registration in the public records).
Applications for such Simplified Authorisation arrangements are made at point of import. The
SAD declaration constitutes an application for simplified end-use and must be supported by
accompanying documentation containing at least the following information the:
(i) name(s) and address (es) of the applicant, the importer and the operator;
(ii) nature of the End-use;
(iii) technical description of the goods, the products resulting from their End-use and the
means of identifying them;
(iv) estimated rate of yield from the goods or the method by which that rate is to be
determined;
(v) estimated period for assigning the goods to their End-use; and
(vi) place where the goods are to be put to the End-use.
Where staff at the point of importation consider that particular elements of the above information
are not absolutely necessary to enable them to satisfy themselves that the goods will be put to the
intended End-use, or where any elements of the information are already contained on the SAD
9
declaration, the accompanying documentation may be accepted without those particular elements of
information.
The following general conditions also apply to the issue of a Simplified Authorisation:
(i) Clearance for free circulation and assigning of the goods to the prescribed End-use
must be carried out solely within Ireland.
(ii) The applicant must use the ordinary SAD declaration procedure (as opposed to a
Simplified Declaration Procedure);
(iii) The applicant must be solely responsible for assigning the goods to the prescribed
End-use.
Due to the risks associated with the Simplified Authorisation arrangement, its use should be
restricted to situations where there is a low risk of diversion to alternative uses (because of the
nature of the goods).
4. Issue of an Authorisation
(UCC Article 211)
4.1 Issue of a New Authorisation
When Authorisations & Reliefs Unit has received all necessary reports and documentation, an
authorisation is drawn up. Authorisations can be valid for a period of up to five years from the date
of acceptance of the application. Before the authorisation can issue the guarantee must be in place.
Authorisations & Reliefs Unit will send the original authorisation to the Region/LCD for delivery to
the holder. A copy is also sent for the trader file held in the Region/LCD. The Region/LCD must
deliver the authorisation to the holder by hand. Before receiving the authorisation the holder must
accept and sign a standard set of conditions (see Appendix II). A signed copy of the conditions
must be returned to Authorisations & Reliefs Unit, while the Region/LCD should retain a copy in
the trader file.
In the case of newly authorised operators, when imports under End-use begin the Control Officer
should check to ensure that the tariff classifications codes, quantities and values being declared are
in accordance with the authorisation.
4.2 Renewal of an Authorisation
(Article 164 DA)
Authorisations & Reliefs Unit maintains a database of all current authorisations. The Section sends
each authorisation holder a renewal letter three months in advance of the expiry of the authorisation.
When an application for renewal is received in Authorisations & Reliefs Unit, it is checked for any
changes from the previous authorisation. The Region/LCD will be requested to examine the
renewal application and provide a recommendation as to whether or not the renewal should be
granted. In those circumstances the Region/LCD should review the guarantee reference amount for
the renewal period and, where relevant, ensure that the applicant is authorised for a Comprehensive
Guarantee.
4.3 Amendment to an Authorisation
(Article 164 DA)
10
All requests for amendments to current authorisations must be submitted to Authorisations
& Reliefs Unit. The Section will forward the request to the Control Officer for a
recommendation and a request to review the guarantee reference amount.
5. Entry of goods to the procedure
5.1 Declaration on SAD
When traders are entering goods to the End-use procedure they should complete the SAD as
follows:
Enter the procedure codes 115 or 140 in Box 36• (115 if there is an autonomous tariff
suspension under end-use, or 140 if there is only end-use on the tariff code).
Enter the Authorisation number in Box 44;
Enter the invoice numbers or range of numbers in Box 44;
An invoice showing the total value and quantity of goods in the consignment must be retained by
the holder, and be readily available to the Control Officer if requested. Authorisation holders must
retain copies of the import SADs and supporting documentation for a minimum period of three
calendar years after the year in which the goods are no longer subject to End-use control by
Revenue.
6. Obligations of Authorisation holders
6.1 Time Limits
An authorisation holder must put the goods to the prescribed End-use within the time limit stated in
the authorisation. However, the specified time limits may be extended by Revenue if the goods have
not been assigned to the prescribed End-use within the time limit in question due either to
unforeseen circumstances or to exigencies inherent in the working or processing of the goods. Any
application for extension of a time limit or any case where the time limit is exceeded should be
referred to Authorisations & Reliefs Unit for consideration.
6.2 Records
(UCC Article 214)
The holder of the authorisation is required to keep adequate records to enable Revenue to carry out
any checks considered necessary to ensure that the goods are actually put to the prescribed End-use.
The records should show the Customs import entry (SAD) number and date. There must be an
adequate audit trail with locations, dates, values, quantities etc from receipt of goods, through
process and final disposal and including any by-products resulting from processing. The Control
Officer should ensure that the records kept by the holder meet these requirements. These records
must be available for inspection by Revenue. The records in question must be preserved for a
minimum period of three calendar years after the year in which the goods are no longer subject to
End-use control by Revenue.
6.3 Period of Discharge
The period of discharge is from the time the goods are entered to the procedure until they
have been put to the prescribed end use. The Region/LCD will determine the period of
discharge based on the stock turn over period plus any time the goods are held under the
procedure. This time frame should be no more than 6 months, but may, in exceptional
11
circumstances, be longer. Discharge of the procedure by means of the goods either being
put to the end use, exported or destroyed releases the suspended duty liability.
The period of discharge cannot include time when the goods are in storage. Where
goods are being held in storage rather than being processed/put to end use then authorisation
for storage must be considered.
6.4 Bill of discharge
From the 1
st May 2016 under the UCC, a bill of discharge for the End-use procedure must be drawn
up by the holder and must be lodged in the Region/LCD within the timeframe agreed within the
authorisation. The Region/LCD, in consultation with Authorisations & Reliefs Unit, may extend
these periods in special circumstances.
On receipt of the bill of discharge, the Region/LCD should examine the details without delay and
any liability established should be entered into the accounts within 14 days from receipt of the bill
of discharge
The Bill of Discharge shall contain at least the following details:
authorisation reference number;
period for discharge
quantity of each type of import goods in respect of which discharge, repayment or
remission is claimed;
CN code of the import goods;
customs value and the rate of import duties to which the goods which were placed
under the special procedure are liable. This is the actual value declared on the SAD,
not a standard or any other form of value used by the company.
particulars of the customs declarations entering the import goods to End-use;
the established rate of yield;
type and quantity of the processed product;
CN code and the value of the processed product;
the customs approved treatment or use assigned to the processed products as well as
particulars of the relevant declarations or other documents used to discharge the goods
or products from IP;
amount of customs duty to be paid on any import goods released for free circulation.
quantities and values from the authorisation used and balance carried forward to next
period for discharge.
Failure to return Bills of Discharge or to return them on time should be taken up immediately by the
Region/LCD with the holder as this is considered a non compliance issue
6.5 Satisfying End-use Conditions
Goods are considered to have been assigned to the End-use in question when:
12
(i) In the case of goods which can be used only once, they have been assigned to the
prescribed End-use within the time limits laid down in the Authorisation (see section
6.1); or
(ii) In the case of goods which may be put to repeated use, two years after they are first
assigned to the prescribed End-use in accordance with the time-limits laid down; the
date of such first assignment is to be entered in the bill of discharge referred to in
section 6.4.
(iii) Goods (referred to in note (i) above) intended for certain classes of aircraft for the
purposes of their construction, maintenance, conversion or equipping are considered to
have been assigned to that End-use when the aircraft is transferred to a person other
than the holder of the authorisation or is again made available to its owner, e.g.
following maintenance, repair or conversion.
(iv) Goods (referred to in Part 1, Section II A of the Combined Nomenclature) intended for
certain classes of vessel or for drilling or production platforms for the purposes of their
construction, repair, maintenance, conversion, fitting or equipping are considered to
have been assigned to that End-use when the vessel or drilling platform is transferred
to a person other than the holder of the authorisation or again made available to its
owner, e.g., following maintenance, repair or conversion.
The duty preference rate only applies to goods intended for incorporation in the
various categories of eligible vessels or platforms, for their construction, repair,
maintenance or conversion and to goods intended for fitting to or equipping them. It
does not apply to plant or tools, or to machinery or equipment for use in a shipbuilding
yard or other manufacturing premises. Consumable goods are also excluded.
(v) Goods (referred to in Part 1 , Section II A of the Combined Nomenclature) supplied
directly on board a vessel for the purposes of equipping it are considered to have been
put to the End-use at the time of such supply.
(vi) Civil aircraft are considered to have been put to End-use when they are registered in
the public records prescribed for that purpose in an EU Member State or in a third
country. Evidence of such registration must be produced to Revenue before End-use
requirements are met.
7. Movement of goods under End-use.
(UCC Art 219, Art 267 IA, Art 178 (1) (e) & Art179 DA)
The T5 movement document used to transfer goods between End use holders can no longer be used
from 1
st May 2016. Movement of goods may take place between different places in the customs
territory of the Union by transferring the rights and obligations of the holder of the authorisation to
assign the goods to their End use to an operator who will then be responsible for assigning the
goods to their End use. All operators receiving End use goods must be set down in the
authorisation in advance of any movement. The records of the authorisation holder must show the
following information:
the name and address of the operator to whom the goods are to be transferred to and who
will then assign the goods to their End use.
details of the Transfer of Rights and Obligations Authorisation and customs supervising
office;
an invoice or a commercial document indicating that the goods are transferring under the
End use procedure.
invoice or commercial documentary evidence from that operator confirming receipt of the
goods.
Once proof is provided that the goods have been received by the operator and put to the end use the
liability is discharged.
13
Movement of goods to the customs office of exit shall be subject to the provisions that would have
been applicable had the goods been placed under the export procedure. The goods shall remain
under the end use procedure until they have been taken out of the customs territory of the Union.
8. Goods which cannot fulfil end-use conditions
(Articles 254)
If goods under End-use control cannot be put to the prescribed End-use because of their condition
or because of some other valid reason the holder may;
export them from the EU
destroy them under customs supervision or,
abandon to the exchequer.
9. Destruction under Customs Supervision
The trader must make the Control officer aware in advance that goods are going to be destroyed.
The goods may then be destroyed under customs supervision without the creation of a customs debt.
9.1 Waste or Scrap
Waste and scrap which result from the working or processing of goods according to the prescribed
end use and losses due to natural wastage shall be considered as goods assigned to the prescribed
end use. Waste and scrap resulting from the destruction of goods placed under the end use
procedure shall be deemed to be placed under the customs warehousing procedure.
9.2 Customs Duty Debt
The Authorisation specifies the end-use to which the goods imported may be assigned. If the
importer puts the goods to another use, other than export or destruction, a customs debt is created
and the original entry must be amended. The Control Officer is responsible for the collection of the
customs duty. The amount of customs duty paid (if any) when the goods were originally entered is
to be deducted from the Customs debt incurred. The uncollected duty must be collected and
brought to account by post entry.
10. Monitoring/Checking of Authorisations
10.1 Control Measures
The Control Officer’s initial report is the primary element in the decision to grant an authorisation.
The checking of the trader’s imports, entries/SADs and the overall monitoring of the authorisation
by the Control Officer is essential to the control of End-use. It is a matter for each Control Officer
to ensure consistency in relation to this checking, having regard to risk strategy rather than
resources. There are several aspects to an authorisation, which must be monitored by the Control
Officer. These include ensuring that:
14
the terms and conditions are being adhered to;
quantities and values as identified in the authorisation are not exceeded or likely to be
exceeded. This should involve monitoring of bills of discharge or equivalent documentation
on a regular basis. If quantities or values are exceeded, this may result in customs debts
arising;
the period of discharge is being adhered to;
only the goods specified on the Authorisation are declared under End-use;
goods can be tracked/traced through the process;
the holder is subject to regular compliance checks having regard to the frequency of
importations. The level of detail that these compliance checks involve can be decided by the
Region/LCD but should involve at least the points above;
all authorised traders are considered for audit in the normal way. The fact that these
traders are visited for compliance checks on a regular basis should not exclude them
from any audit program being undertaken by the Region/LCD. An audit during the
lifetime of the Authorisation (usually three years) is desirable, although final
decisions on which traders to audit will be driven by the level of risk involved.
10.1.1 Parts for Aircraft or Sea Vessels
In the case of parts destined for End-use in the repair, maintenance, etc. of aircraft or
sea vessels, the Control Officer should ensure records of their use, for example,
engineers’ and mechanics’ reports of work done, are available for Revenue inspection.
10.1.2 Land-based Operational Bases
In the case of goods listed in Part 1, Section IIA of the Combined Nomenclature,
Revenue may, at the request of the Authorisation holder, approve places known as
“land-based operational bases”, where goods intended for incorporation in drilling or
production platforms, benefiting from duty suspension, may be stored or subjected to
operations of any kind. Such conditions as Revenue may determine shall apply to such
approvals. Requests received for such approvals are to be forwarded to Authorisations
& Reliefs Unit for consideration.
The movement of such goods whether from platform to platform, base to platform or
point of shipment to platform, and vice versa, are not subject to Revenue formalities
other than the appropriate entry in the records pertaining to such goods. This applies
to platforms whether inside or outside territorial waters. These records should be
available for inspection by Revenue.
10.2 Common storage of goods
Any application to allow the common storage of End-use goods entered under the provisions of the
End-use procedure with goods of the same type and quality and having the same technical and
physical characteristics not so entered (non-End-use goods) may be allowed by the Control Officer
provided that he/she is satisfied that the necessity for such storage exists. In such cases putting an
equivalent quantity of the common stock to the prescribed End-use will satisfy requirements.
11. Equivalence
(UCC Article 223, Art 268 IA, 169 of DA)
15
11.1 What is equivalence?
Equivalence is a new facility in the end use procedure that allows holders to use identical Union
goods in place of non-Union goods for end use.
The equivalent goods must fall within the same subheading of the Common Customs Tariff, be of
the same commercial quality and have the same technical characteristics as the non-Union goods.
Equivalent goods may be at a more advanced stage of manufacture than the non-Union goods
provided the essential part of the processing is carried out by or on behalf of the trader.
Equivalence can be granted either for specific products or for all products covered by an
authorisation.
11.2 Application for equivalence
Applications to use equivalence are normally made at the time of the application for end use on the
standard application form. Applications for equivalence can also be dealt with by way of
amendment to a current authorisation.
Any trader who is issued with an authorisation, which provides for the use of equivalence must sign
a specific set of conditions (see Appendix III). Authorisations & Reliefs Unit will issue a copy of
these conditions to the Region/LCD with the authorisation.
11.3 Restrictions to the use of equivalence
The use of equivalent goods shall not be authorised;
for goods or products that have been genetically modified or contain elements that have
undergone genetic modification; or
where it would lead to an unjustified import duty advantage; or
where provided for in Union legislation.
16
Appendix 1 – Report on End-use application
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
Part one: to be completed for all Procedures.
Part two: additional information for inward processing applications
Part three: additional information for outward processing applications.
Part one
File reference:
Special Procedure:
(Indicate the type of procedure applied for e.g. IP/OP/EU)
(1)Name and Address of trader
(1a)Registered Address (if different to above):
(2) Applicant EORI number (3)VAT Registration number:
(4)Company Registration number (5)TAN Number
(6) Has the trader a copy of the Traders Guidelines
on Revenue Website?
(7) Does the trader hold a VAT 56(a) Authorisation?
(8)Has the trader AEO status? (9) Will the company require a deferred payment
arrangement?
(10) Has the trader been approved for any simplified procedures?
If so, please give details
(see Annex 1)
17
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(11) Are the trader’s accounts satisfactory?
(12)Is the trader under audit?
If so, in what context?
(13) Does the trader have a satisfactory record in complying with Custom’s requirements?
(14) Are fiscal goods involved?
(CAP goods or goods involving export refunds)
Complete this question for End-use only (for IP see question 29 and for OP see question 32)
(15) What is the nature of the end-use?
(15a) At what point are the goods considered to be put to their end use?
Note: Goods must be capable of being put to their end-use on importation. Goods under end-use cannot be repaired; for repair an IP
authorisation is needed.
(16) Can applicant prove an economic need for the procedure?
(17) Where will the processing/end use operation be carried out?
If not at the premises of the applicant indicate the operators that will be involved in the processing in question 18.
(18)Name and address of Operators
VAT no EORI no
Name and address of Operators
VAT no EORI no
18
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(18a) Indicate what type of processing/end use will be carried out by these operators;
(18 b)Has the trader provided an undertaking allowing Revenue right of entry to any Operators premises?
(if not please request undertaking)
(19) Has the trader applied for a retrospective authorisation?
If yes, is retrospections recommended?
State the exceptional circumstances under which retrospection was approved
Note: retrospection cannot be allowed if the trader has had an application for retrospection granted within 3 years from date of acceptance of the
application. The maximum period allowable is twelve months prior to the date of acceptance of the application or, 3 months in the case of Annex
71-02 goods.
(20) Is separate storage of goods under the procedure necessary?
If so, what are the arrangements?
(21) Is equivalence requested?
If so, do the goods have the same eight-digit CN code and the same commercial quality and the same
technical characteristics as the goods which they are replacing?
Note: Equivalence is not permitted in cases where the Non-Union goods imported into the procedure would be subject to a provisional or definitive
anti-dumping, countervailing, safeguard duty or an additional duty resulting form a suspension of concessions if they were declared for release for
free circulation.
(22) Is prior exportation required?____________________________
If yes, is the trader familiar with the requirements to use the INF 5 form?(see Annex 2)
19
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(23) Is triangulation envisaged?______________________________
If yes;
name the importer authorised to enter the goods:
_____________________________________________________
Place where the goods are to be imported:
_____________________________________________________
Customs authority empowered to check on the import goods:
_______________________________________________________
(24) Has the trader given the correct ten-digit CN codes for goods entering the procedure and eight-digit CN
codes for the processed products?
Note: trader should be encouraged to obtain BTI.
(25) What is the means of identification of the raw materials and the processed product?
(26) Are you in agreement with the stated “rate of yield”?__________________
If not, please agree rates of yield and set down below:
(27)Period of discharge?__________________(months)
Justification:
(if over 6 months)
Note: standard period of discharge is set at 6 months. Period can be less but if an extended period is requested, then the justification must be set
down. The period of discharge must be for the processing operations and cannot include storage.
(28) Is movement of goods under the procedure envisaged?
If so, are the records sufficient to show the details of the movement and location of goods?
(a) Between the trader and the named operator
(b) To other Authorisation holders
20
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(29) Address for each of the following responsible Revenue offices:
(a) Supervising Revenue office:
__________________________________________________________________________________
__________________________________________________________________________________
(b) Office(s) of entry for the procedure:
__________________________________________________________________________________
__________________________________________________________________________________
(c) Office of discharge
__________________________________________________________________________________
__________________________________________________________________________________
(30) Time period for presentation of the Bill of Discharge:______________ months
(31) What is the reference amount needed for the duty liability: (this must be calculated even if the trader
has AEO status: €___________________________________ (for OP see Part Three)
(32) What form will the guarantee take: Cash or guarantee?
(33) Are there any special control arrangements envisaged?
(34) Date of visit(s)________________________________
(35) Are there any other observations relevant to this application which has come to light as a result of
enquiries carried out?
PART TWO: INWARD PROCESSING
21
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(36) What operation will be carried out under the Inward Processing Procedure;
Repair________________________________________________________
Destruction ____ _______________________________________________
Processing:(all goods must be identified in the processed product with the exception of production
accessories___________________________________________
Production accessories: the use of which are not be found in processed products, but which allow for or
facilitate the production of those products, even if they entirely or partially used up in the
process.________________________________________________
Goods intended to undergo operations to ensure their compliance with technical requirements for their
release to free circulation_______________________
Goods which have to undergo usual forms of handling__________________
Description of the specific operations to be carried out:
(36a) If more than one operation is involved, please specify the Annex 1 goods for each operation.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
(37) Is the trader releasing goods to free circulation?
If yes, state below method of release. (If both methods are used state the percentage of each method).
Processed product released to free circulation under Art 85(1) UCC
Originally imported raw material released to free circulation under Art 86 (3) UCC.
(See Annex 2 for UCC Articles.)
(38) Are there goods to be re-exported?
If so please state what proportion will be:
Exported without preferential origin documentation, to preferential trade agreement countries where the
“No Drawback “rule applies.
__________
Exported to other non-EU countries___________
PART THREE: OUTWARD PROCESSING
22
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(39) What time period is required to process/repair and re-import the goods?
(40) In the case of repair indicate that the goods are actually in need of repair (that they are faulty or
broken as this procedure cannot be used to improve the technical performance of the goods)
(41) Is the Standard Exchange system with prior importation required?__________________
If yes,
What time period is required to subsequently export the defective goods?
__________(maximum period is 2 months)
Amount of guarantee required for imported goods until defective goods are exported
€________________________________
Is the use of INF 2 envisaged? (see Annex 3)_______________
If not what other form of exchange of information is to be used?
______________________________________________________
(42) At entry or discharge from the arrangements, are the goods transferring from or to other Authorisation
holders?__________________________________________________________
Name of other holder’s __________________________________________________________
_______________________________________________________________________________
________________________________________________________________________________
RECOMMENDATION
23
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(43) Please state any relevant information pertaining to your recommendation:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_____________________________________. STAMP
Name
(Block Capitals)
Annex 1- SIMPLFIED PROCEDURES
Simplified Procedures
EU legislation including the UCC established the concept of Simplified Procedures for import and export of
goods from/to non EU Countries.
Additional information on the various national import and export simplifications, which are available
together with the relevant application forms, including guides to completion, is provided from the links
below.
Types of Simplified Procedure
Under these simplified procedures, a number of different facilitation methods are available which permit
imports and exports to be cleared through Customs more quickly and more easily that would otherwise be
permitted. The types of simplified procedures available at import and export include
Incomplete Declaration at Import
Incomplete Declaration at Export
Simplified Declaration Procedure at Import
Simplified Declaration Procedure at Export
Local Clearance Procedure at Import
Local Clearance Procedure at Export
ANNEX 2 – ARTICLES 85(1) AND 86(3)
24
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
ARTICLE 85 (1)
General rules for calculating the amount of import or export duty
1.The amount of import or export duty shall be determined on the basis of those rules for calculation of
duty which were applicable to the goods concerned at the time at which the customs debt in respect of
them was incurred.
ARTICLE 86(3)
Special rules for calculating the amount of import duty
3. Where a customs debt is incurred for processed products resulting from the inward processing
procedure, the amount of import duty corresponding to such debt shall, at the request of the declarant, be
determined on the basis of the tariff classification, customs value, quantity, nature and origin of the goods
placed under the inward processing procedure at the time of acceptance of the customs declaration
relating to those goods.
Annex 3 – INF INFORMATION SHEETS
INF 1 is used for the communication of information on duty amounts, security and commercial policy
measures under Inward Processing.
INF 2 is used in order to communicate information on temporary export goods in triangular traffic, in
order to obtain partial or total relief for processed products under Outward Processing.
INF 5 is used to communicate information in order to obtain duty relief for import goods, on prior
exportation in triangular traffic, under Inward Processing.
INF 9 is used to communicate information on processed products to be assigned another customs
approved treatment or use in triangular traffic, under Inward Processing.
25
Appendix II – General conditions to be observed by persons authorised to engage in an Enduse
Arrangement.
1. The Authorisation is issued by the Revenue Commissioners and may be revoked for noncompliance
with EU legislation governing End-use.
2. Acceptance of these conditions does not relieve the Authorisation holder from compliance
with the law and regulations for the time being in force relating to End-use or to the
importation, transhipment, exportation, warehousing or entry for free circulation of goods
including the submission of Intrastat and/or VIES declarations.
3. The goods must be put to the prescribed end-use as indicated in the Customs & Excise Tariff
within a period of ……… from the date of entry for customs purposes or the date of receipt
of transferred goods.
4. The Authorisation holder is responsible for ensuring that the tariff code(s) quoted on the
Authorisation are correct.
5. The Authorisation holder is agreeable to the transmission by the Revenue Commissioners of
statistical information relating to goods imported under the arrangement to the EU
Commission.
7. Each consignment of goods imported under End-use must be entered in the Automated
Entry Processing (AEP) System, in accordance with the AEP Trader Guide. The appropriate
procedure code must be inserted in box 36 of the SAD. The Authorisation number must be
quoted in box 44.
8. Civil Aircraft are considered to have fulfilled the requirement of Enduse
when they are registered in the Public records prescribed for that purpose
9. Records must be kept and a Bill of Discharge submitted by the holder of the Authorisation at
its principal place of business in the State. The following information is required:
the authorisation reference number;
The periods for discharge
the quantity of each type of import goods in respect of which discharge is claimed;
the CN code of the import goods;
the customs value and the rate of import duties to which the goods which were placed
under the special procedure are liable. This is the actual value declared on the SAD,
not a standard or any other form of value used by the company.
the particulars of the customs declarations entering the import goods to End use
the established rate of yield;
if relevant, the type and quantity of the processed product;
if relevant, the CN code and the value of the processed product;
the customs approved treatment or use assigned to the processed products as well as
particulars of the relevant declarations or other documents used to discharge the goods
or products from End use.
26
Quantities and values from the authorisation used and balance carried forward to next
period for discharge
10 The Authorisation holder is responsible for ensuring that s/he complies with the provisions
for the time being in force in relation to the payment of Value Added Tax.
11. The Authorisation holder must co-operate fully with Revenue in all necessary enquiries
undertaken in relation to the customs valuation of goods imported under the arrangement.
12. All necessary assistance and co-operation must be provided to Revenue in exercising control
of the arrangements and in establishing agreement between official records and the records
of the Authorisation holder.
13. In the event of the goods being transferred to another authorised person either in Ireland or
elsewhere in the EU advance notification of the transfer must be given. Where goods are
transferred the date of transfer and the name and address of the transferee, who must also be
authorised to import or receive similar goods under End-use, should be quoted in the
notification.
14. Revenue reserves the right to vary or add to the conditions set out above.
27
28
I/We ………………………………………………. hereby certify
that the conditions (1) to (16) set out above are accepted and I/we
undertake to comply with them.
Signed*: ______________________________________
Designation of Signatory:
____________________________________________
on behalf of: ___________________________________
(Name of holder of Authorisation)
Date:_____________________
*When the Authorisation is issued to an individual, the signatory
should be that individual. In the case of a limited company, the
Signatory should be the Secretary or Managing Director or General
Manager, and in the case of any other trading entity, the owner or
partner. A responsible official other than those mentioned may also
sign provided he/she is duly authorised in writing to accept liability.
In the case of a non-resident individual, limited company or other
trading entity the signatory should be the lawfully appointed
Attorney of the holder of the Authorisation, resident in the State.
Appendix III – conditions to be observed by persons authorised to operate equivalence
1. In these conditions
“import goods” means the non-Union goods placed under end use,
“equivalent goods” means the equivalent Union goods which, under the equivalent
compensation arrangement, replace the import goods,
“equivalent processed products” means the processed products processed from equivalent
goods.
2. Importation of import goods and exportation of equivalent processed products may be carried
out only by the holder of the end use Authorisation.
3. Equivalence is not permitted for import goods that are subject to an agricultural or a
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.
4. A separate account must be kept showing disposal of the import goods and exportation of the
equivalent processed products.
5. A time limit of ____ months for completion of the arrangement applies commencing
* on the date of the placing of the import goods on the Union Market.
* on the date of the export of the equivalent processed products under the arrangement.
6. A SAD export declaration must be presented to Revenue or an appropriate entry must be
made to the AEP system in respect of each consignment of equivalent processed products
exported under the arrangement.
7. The time when equivalent processed/prior exportation is considered to have taken place will
be determined by a Revenue Official in accordance with the relevant EU legislative
provisions.
8. Samples of the equivalent processed products, of the equivalent goods from which processed,
and of the import goods must be supplied free of charge on demand by a Revenue Official.
9. The account referred to in condition 4 must be kept accessible to and open to inspection by
any Revenue Official and such Official must be afforded every facility for satisfying
themselves as to its accuracy.
10. These conditions apply to an equivalent processed/prior exportation (*) arrangement relating
to products imported under an end use arrangement.
11. Adherence to these conditions does not remove the obligation from the authorisation holder to
comply with EU law and regulations governing Inward Processing.
12. The Revenue Commissioners reserve the right to vary or to add to the conditions set out
above.
29
* Delete as appropriate
I/We……………………………..(Name in block letters) hereby certify that
the conditions (1) to (14) set out above are accepted and undertake
that they will be complied with.
Signed*: _______________________________
Designation of Signatory:
__________________________________
on behalf of: ______________________________
(Name of holder of Authorisation)
Date: _____________________
When the Authorisation is issued to an individual the signatory
should be that individual. In the case of a limited company the
signatory should be the Secretary or Managing Director, and in the
case of any other trading entity, the owner or partner. A responsible
official other than those mentioned may also sign provided he/she is
duly authorised in writing to accept liability.
In the case of a non-resident individual, limited company or other
trading entity the signatory should be the lawfully appointed Attorney
of the holder of the Authorisation, resident in the State.
30
Appendix IV – Tariff headings for weapons and military equipment on which import duties
are suspended
Manual on Inward Processing
Updated July 2016
3
Definitions
In the context of this Notice:
(i) “Main Processed Products”;means the processed products for which the
authorisation for inward processing has been granted;
(ii) “Secondary Processed Products” means processed products which are a necessary
by-product of the processing operation other than the main processed products;
(iii) “goods in the unaltered state” means goods in the same condition as when they were
placed under the IP procedure;
(iv) “import duties” means
– Customs duties;
– charges having equivalent effect to Customs duties;
– import charges provided for under the common agricultural policy or under
specific arrangements applicable to certain goods resulting from the
processing of agricultural products;
(v) “import goods” means the non Union goods which have been placed under an IP
arrangement;
(vi) “processing operations” means any of the following:
(a) the working of goods, including erecting or assembling them or fitting them to other
goods;
(b) the processing of goods;
(c) the destruction of goods;
(d) the repair of goods, including restoring them and putting them in order;
(e) the use of goods which are not to be found in the processed products, but which allow or
facilitate the production of those products, even if they are entirely or partially used up in
the process (production accessories);
(vii) “usual forms of handling” means such handling operations as are needed to ensure
preservation of goods or to improve packaging or marketable quality. A list of such
handling operations is contained in annex 71-03 of the Delegated Act;
(viii) “release for free circulation” means released on to the EU market for sale and
consumption in the Union;
(ix) “Customs approved treatment or use” means any use to which goods are put which is
approved by Customs e.g. re-export, entry into warehouse, destruction, release for
free circulation, entry to another Inward Processing Procedure etc;
(x) “Union Code” refers to EU Council Regulation 952/2013 establishing the Union
Customs Code;
(xi) “ IA or Implementing Act “ refers to the to EU Commission supplementing
Regulation 2015/2447 laying down certain provisions for the implementation of the
Union Customs Code;
(xii) “DA or Delegated Act” refers to EU Commission supplementing Regulation
2015/2446 laying down certain provisions for the implementation of the Union
Customs Code;
(xii) “CAP” common agricultural policy.
(xii) “Period for discharge” means the time by which goods placed under a special procedure or
the processed products, must be placed under a subsequent customs procedure (eg. exported,
released to free circulation, destroyed).
4
1. Introduction
The Inward Processing (IP) procedure is provided for in the Union Customs Code (UCC), Articles
210-225 and 255-258, the Delegated Act (DA) Articles 161-183 and 240-241, and the
Implementing Act (IA) Articles 258-271 and 324-325.
From the 1
st May 2016 the IP procedure incorporates both the inward processing and the processing
under customs control regimes that had previously operated independently under the Customs Code
Council Regulation 2913/92. The new legislation amalgamates these two procedures and provides
for a transitional period for the development of electronic systems, for exchange and storage of
information, that will be necessary for the full application of the Code.
The main changes in the procedure introduced in the UCC are:
The Processing under Customs Control (PCC) procedure has been amalgamated with the IP
suspension procedure;
Under the new IP procedure the re-exportation of the goods is no longer a prerequisite;
The IP drawback system is no longer available; and
The requirement to provide a Comprehensive Guarantee to cover a potential or existing
customs debt.
To facilitate a smooth transition for holder of PCC authorisations their authorisations will continue
to be valid until they reach their expiry dates. The period of validity for PCC is three years and all
such authorisation will have expired by 1
st May 2019. All new applications or renewals will be
dealt with under the new IP rules. This means, in practical terms, that from 1
st May 2016 the import
procedure code 9100 is no longer valid and has been replaced by code 5100.
IP is aimed at promoting and facilitating manufacturing and certain processing operations in the
Union by enabling the importation of non-Union goods to be used in one or more qualifying
operations with suspension of import duties or certain commercial policy measures. An
authorisation from the customs authorities is required for the use of the IP procedure (UCC Article
211) and it is one of a number of procedures provided for in EU legislation and referred to as
Special Procedures.
As a rule products imported under the IP arrangements are destined for processing operations such
as:
(a) working of goods, including erecting or assembling them or fitting them to other goods:
(b) processing of goods;
(c) destruction of goods;
(d) repair of goods; including restoring them and putting them in order;
(e) use of goods which are not to be found in the processed products, but which allow or
facilitate the production of those products even if they are entirely or partially used up in the
process (production accessories).
5
The IP arrangements are discharged when processed products or import goods are declared for
another customs approved use or treatment at the office of discharge and relevant conditions are
fulfilled. The methods for discharging the procedure are set out in paragraph 5.2.
2. Application for authorisation
(UCC Article 211(1)).
2.1 Application Procedure
Application forms are available on the Revenue website at www.revenue.ie under “Customs”. All
applications, including those for renewal or amendment of existing authorisations, must be
submitted in writing by the trader to Authorisations & Reliefs Unit, who will then carry out the
following steps:
check that all of the necessary information to process the application has been supplied by
the trader;
where additional information is found to be required the trader will be contacted to provide
same.
The application is formally accepted upon receipt of all relevant information.
Once all the relevant information has been supplied and the application formally accepted, the time
frame for taking a decision begins. Under the UCC a decision, whether favourable or negative,
must be made within 30 days from date of acceptance of the application. The application is
forwarded to the relevant Region/LCD with a request for an examination of the eligibility of the
trader to use IP. A control officer’s report with a recommendation, whether positive or negative,
must be returned to Authorisations & Reliefs Unit in keeping with the above timeframe. A standard
template for the report is provided – see Appendix I.
2.2 Control Officer’s assessment
On receiving a copy of the application from Authorisations & Reliefs Unit, the Region/LCD should
contact the trader as soon as possible and arrange a meeting to examine such matters as the;
processing operation that will be carried out;
premises where the processing will be carried out;
accounting procedures used;
obligations which must be fulfilled by the applicant for the use of IP;
importance of observing the authorised limits for quantities and values;
time limit discharging the procedure;
method that will be used to discharge the procedure and
the reference amount for the guarantee
6
It should be established that the trader has a copy of the Trader Guidelines on Inward
Processing or has access to them on the Revenue website at www.revenue.ie. Where the
trader is a company, a senior executive in charge should be consulted to ensure that
management are aware of their obligations.
The report should then be completed including a recommendation as to whether or not the
authorisation should be granted. Additional notes may be attached if required. In complex cases,
the finalisation of the report may involve an additional visit to the trader. Completed reports are to
be sent to Authorisations & Reliefs Unit as soon as possible and, in keeping with the 30 day time
frame.
2.3 Guarantee
(UCC Articles 211 (3)(c), and 89 )
An Authorisation for IP cannot issue until an appropriate guarantee is in place. The purpose of the
guarantee is to secure duties suspended on goods imported under an IP authorisation. In Ireland
cover notes/bonds have always been put in place for this procedure, however the UCC introduces a
new means of guarantee and a new method for calculating such guarantees.
There are two new guarantee options – Individual or Comprehensive. An Individual Guarantee
covers an individual SAD or operation whilst a Comprehensive Guarantee covers all SADs entered
to the procedure. Therefore, while in theory, there are two options, in reality for a special procedure
the most feasible option is the Comprehensive Guarantee. The operator must apply, and be
authorised, for Comprehensive Guarantee. The guarantee may take the form of either a cash deposit
or a guarantee of undertaking from surety provider. Material on Comprehensive Guarantees is
available on the Revenue website http://www.revenue.ie/en/customs/comprehensiveguarantee/index.html
The application for a Comprehensive Guarantee should be submitted at the same time as the
application for IP so that the Revenue assessment can be carried out simultaneously.
There are two methods of calculation of the reference amount depending on whether the
authorisation covers Ireland only or,
authorisation covers more than one Member State.
In the calculation of the guarantee reference amount for an authorisation covering Ireland only, the
amount may be calculated on the import duty liability only. However where there is more than one
Member State involved, all import charges must be included (e.g. VAT, excise). An example of
both methods is set down below:
List of Key Data Elements required for the calculation:
Total value of goods to be placed under the IP procedure during the lifespan of the
authorisation
Average duty rate or possibly actual duty rate
Period of discharge
Maximum value of goods which may be under IP at a given point in time
The control officer will establish from the company records the maximum value of goods under IP
at a given point in time over the previous 12 month period. The given point in time for the
calculation of the reference amount for special procedures will be the last day of the calendar
month, therefore only these 12 days in the previous 12 month period need to be examined to
determine the amount of stock on hands. The highest stock record of these 12 days will determine
7
the guarantee reference amount. The graph below takes the last day of every month and determines
that the highest value of stock on hand under the IP procedure is €50,000 on the 31st May.
(a) Authorisation covering Ireland only:
Total value of Goods which may be placed under Inward
Processing during 3 years
(see data field 7 of the application)
€600,000
Duty Rate
10%
Period of Discharge
6 months
Maximum value of goods which may be under inward processing at
a given point in time according to business activities* (see graph
below)
€50,000
Calculation of the reference amount regarding import duty
€50,000 x 10% = €5,000
Guarantee reference amount is determined as
€5000
0
10000
20000
30000
40000
50000
60000
31.01 31.03 31.05 31.07 30.09 30.11 31.01
Estimated value of goods under IP
Authorisation covering more than one Member State:
Total value of Goods which may be placed under Inward
Processing during 3 years
(see data field 7 of the application)
€600,000
Duty Rate
10%
VAT rate *
(Highest VAT rate of the Member States involved). 23%
Period of Discharge
6 months
Maximum value of goods which may be under inward processing at
a given point in time according to business activities (see graph
below)
€50,000
Calculation of the reference amount regarding import duty
8
€50,000 x 10% = €5,000
The other charges are calculated as follows
€55,000 x 23%(VAT) = €12,650
Guarantee reference amount is determined as
€17,650
0
10000
20000
30000
40000
50000
60000
31.01 31.03 31.05 31.07 30.09 30.11 31.01
Estimated value of goods under IP
2.4 Authorisation covering more than one Member State
(Article 260,261 of IA)
An authorisation may be issued which will allow goods to be entered to IP in more than one
Member State. An application for this type of authorisation is submitted in the Member State where
the trader’s main accounts are held. All applications for these authorisations in Ireland should be
made to Authorisations & Reliefs Unit, and will be referred to the relevant Region/LCD for a
recommendation. The Region/LCD should complete a report on the application as at 2.1. Care
should be taken to ensure that transfer arrangements between the different traders mentioned in the
application are satisfactory to the Region/LCD. The Region/LCD should ensure that any controls
required at a local level in any other Member State are clearly established at this stage. On receipt
of a positive recommendation from the Region/LCD, Authorisations & Reliefs Unit prepares a draft
authorisation which is immediately copied to the authorities in the Member States in which
processing will be carried out. This draft will include the controls required by the Region/LCD.
Authorisations & Reliefs Unit issues the authorisation on receipt of agreement by the other Member
States or after 30 days if no objections are received. Responsibility for control of the authorisation
rests with the Irish Administration. Bills of discharge and duty payments for processing in all of the
Member States involved must be returned to the Region/LCD in which the trader is located unless
otherwise agreed with Authorisations & Reliefs Unit.
In the case of applications where the main accounts are held in another Member State, the draft
authorisation is forwarded by the Member State to Authorisations & Reliefs Unit. This draft is
forwarded to the Region/LCD where the Irish trader is based. This draft should be examined in a
timely fashion as the authorisation may be issued by the other Member State if no objection is
received within 30 days. The Region/LCD should contact the trader and arrange a meeting to
examine such matters as the premises where the procedure will be carried out, the accounting
procedures used and to explain to the trader their obligations with regard to this IP authorisation.
The Region/LCD may, if they consider it necessary, require that security be put in place with
separate conditions agreed in respect of the Irish trader. However, responsibility for control of the
authorisation rests with the issuing Member State. The Region/LCD should liaise with the issuing
Member State through Authorisations & Reliefs Unit regarding any necessary controls. On receipt
of a positive recommendation from the Region/LCD, Authorisations & Reliefs Unit will inform the
Member State that Ireland has no objection to the issuing of the authorisation.
9
It is vitally important that direct contact between Revenue and any other administration involved in
controlling this type of authorisation be initiated at the beginning and maintained throughout the
lifetime of the authorisation. Proper control cannot be achieved without this cornerstone being in
place. This applies equally to Irish controlled authorisations and those controlled from other
member states.
2.5 Retrospective authorisation
(UCC Article 211(2) Art 172 DA )
A retrospective authorisation may only be issued in exceptional circumstances. Details of these
circumstances must be submitted by the trader and examined before any retrospection can be
considered. The period of retrospection, either for a new authorisation or amendment to an existing
authorisation, may not extend beyond one year before the date that the application for authorisation
or amendment was accepted. Certain sensitive goods can only receive retrospection for three
months, these goods are set down in Appendix II to this manual.
Retrospective authorisations are only possible where all of the following conditions are met:
(a) there is a proven economic need;
(b) the application is not related to attempted deception;
(c) the applicant has proven on the basis of accounts or records that:
(i) all the requirements of the procedure are met;
(ii) where appropriate, the goods can be identified for the period involved;
(iii) accounts or records allow the procedure to be controlled;
(d) all the formalities necessary to regularise the situation of the goods can be carried
out, including, where necessary, the invalidation of the customs declarations
concerned;
(e) no authorisation with retroactive effect has been granted to the applicant within
three years of the date on which the application was accepted;
(f) an examination of the economic conditions is not required (except where an
application concerns renewal of an authorisation for the same kind of operation
and goods – see point (h));
(g) the application does not concern the operation of storage facilities for the
customs warehousing of goods; and
(h) where an application concerns renewal of an authorisation for the same kind of
operation and goods, the application is submitted within three years of expiry of
the original authorisation.
With regard to point (e) retrospection will only be allowed once for the same procedure, e.g.
if a trader applies for an IP and an OP procedure the 3 year period will apply to each of the
applications.
All requests for retrospective authorisation should be made to Authorisations & Reliefs Unit, and
will be referred to the relevant Region/LCD for recommendation.
10
2.6 Application for an authorisation based on a customs declaration (simplified authorisation)
(Article 163 DA)
Traders who only occasionally enter goods to IP may opt for a simplified authorisation in place of
the standard authorisation. Under this arrangement, lodgement of the declaration entering the goods
constitutes an application. To facilitate the efficient operation of this system, Form IPsim should be
completed and lodged with the import SAD – see Appendix III. Copies of the form are available
from Authorisations & Reliefs Unit or from the Revenue website.
The simplified authorisation may not be used where equivalence is involved, where sensitive goods
included in Annex 71-02 DA are concerned, or where processing will take place in more than one
Member State. In order to enter goods to IP under this simplified system, the full amount of duty
must be paid on deposit. In box 44 of the SAD the code 00100 must be used followed by the words
“simplified Inward Processing”. When the goods have been properly discharged from the
procedure the deposit will be refunded. In order to ensure adequate control of the system, a copy of
the import SAD accompanied by the form referred to above must be submitted to the Region/LCD
within two days of the goods having been entered. The period for discharge shall not exceed six
months.
3. Issue of the Authorisation
3.1 Issue of a new Authorisation
When Authorisations & Reliefs Unit has received all necessary reports and documentation, an
authorisation is drawn up. Authorisations can be valid for a period of up to five years from the date
of acceptance of the application. For certain sensitive goods the authorisation will be valid for a
period of three years (see Appendix II). Before the authorisation can issue the guarantee must be in
place.
Authorisations & Reliefs Unit will send the original authorisation to the Region/LCD for delivery to
the trader. A copy is also sent for the trader file held in the Region/LCD. The Region/LCD must
deliver the authorisation to the trader by hand. Before receiving the authorisation the trader must
accept and sign a standard set of conditions (see Appendix IV) A signed copy of the conditions
must be returned to Authorisations & Reliefs Unit, while the Region/LCD should retain a copy in
the trader file.
3.2 Renewal of an authorisation
Authorisations & Reliefs Unit maintains a database of all current authorisations. The section sends
each authorised trader a renewal letter two months in advance of the expiry of the authorisation.
When an application for renewal is received in Authorisations & Reliefs Unit, it is checked to
ensure that all the required information is included. Once checked the application is sent to the
Region/LCD.
The Region/LCD’s role will be;
to examine the renewal application
ensure all conditions are being met.
confirm the CN codes set down are correct
the quantities and values are in line with the proposed business activities,
check that BOD’s are in the correct format and the timeframe for lodging with Customs is
being met.
review the guarantee reference amount needed.
provide a recommendation as to whether or not the renewal should be granted.
For renewal of authorisations issued prior to 1
st May 2016 a new Control Officers report is
required and a new set of conditions must be signed by the trader.
11
3.3 Amendment to an authorisation
All requests for amendments to current authorisations must be submitted to Authorisations &
Reliefs Unit. The section will forward the request to the Region/LCD for a recommendation and a
request to review the guarantee reference amount. An application for an amendment to the
Authorisation for Comprehensive Guarantee will also need to be submitted and assessed. If the
Region/LCD recommends the amendment, Authorisations & Reliefs Unit will issue the amended
authorisation direct to the trader and a copy to the Region/LCD.
4. Entry of goods to the procedure
4.1 How are goods entered to IP
When entering goods to IP the trader is required to do the following:
The appropriate procedure code should be inserted in Box 37 – first two digits will be 51
The authorisation number should be inserted in Box 44. The invoice numbers or range of
numbers should be inserted in Box 44;
An invoice showing the total value and quantity of goods in the consignment must be
available and retained by the trader;
In the case of goods imported through the parcel post the words “Imported under inward
processing” must form part of the sender’s declaration affixed to the parcel;
Where the goods imported for IP are liable to ad-valorem duty and it is intended to place
some or all of the goods on the EU market, the import declaration must be supported by the
appropriate valuation declaration form.
Traders must retain copies of the import SADs and supporting documentation in their records for a
period of three years from the end of the year in which the goods to which they relate are released
from the procedure.
4.2 Automatic verification through AEP
The AEP system has an automatic verification process for authorised IP traders. This process
verifies a trader’s ability to use the procedure code 5100 and the CN codes listed on Annex 1 of the
authorisation by cross-referencing this data against the authorisation data stored in CRS. Any
deviation from the data included on a trader’s authorisation will result in AEP rejecting the entry. It
is vital therefore that Authorisations & Reliefs Unit is immediately made aware of any amendment
needed to an authorisation.
The quantities and values on the authorisation are not checked by this verification process
5. Discharge of goods from the procedure
(UCC Art 215, Art 264 IA)
5.1 Period of Discharge/ Stock turn over period
The period of discharge is from the time the goods are entered to the procedure until either
they or the processed product is discharged. The Region/LCD will determine the period of
discharge based on the stock turn over period plus any time the goods are held under the
procedure pending either entry to processing or awaiting discharge of the procedure. This
time frame should be no more than 6 months, but can, in exceptional circumstances, be
12
longer. Discharge of the procedure releases the suspended duty liability, the stock turn over
period will not release the duty liability, the goods must be discharged from the procedure
by one of the methods listed below. A period of discharge cannot be used for storage of
goods. Where goods are being held in storage rather than being processed then
authorisation for storage must be considered.
5.2 How are goods discharged from IP
The discharge of goods from IP is regarded as complete when all conditions for use of the
procedure have been complied with and the processed products or goods in the unaltered
state are:
Exported from the Union
Transferred to another customs procedure or to another operator authorised to use one of
those procedures e.g. Customs Warehousing, Temporary Importation;
Transferred to another Member State to be entered to another customs procedure in that
Member State;
Transferred to a customs approved use such as export shops, armed forces, embassies, ships
stores;
Used for the first time in the manufacture, repair, modification or conversion of aircraft or
spacecraft or parts thereof or related equipment;
Released for free circulation in the Union with payment of duty, import;
Destroyed with no waste remaining,
Abandoned to the exchequer.
When goods are exported after IP the procedure code 3151 must be inserted in box 37. The method
of discharge should be identified in the standard conditions, as should the method of verification
(commercial documentation, SAD, modified SAD or T1).
5.3 Bill of discharge
A bill of discharge must be lodged in the Region/LCD within the timeframe agreed with the trader.
The Region/LCD in consultation with Authorisations & Reliefs Unit may extend these periods in
special circumstances.
On receipt of the bill of discharge, the Region/LCD should examine the details without delay and
any liability established should be entered into the accounts within 14 days from receipt of the bill
of discharge
The Bill of Discharge shall contain at least the following details:
the authorisation reference number;
The periods for discharge;
the quantity of each type of import goods in respect of which discharge, repayment or
remission is claimed;
the CN code of the import goods;
the customs value and the rate of import duties to which the goods which were placed
under the special procedure are liable. This is the actual value declared on the SAD,
not a standard or any other form of value used by the company.
13
the particulars of the customs declarations entering the import goods to IP;
the established rate of yield;
the type and quantity of the processed product;
the CN code and the value of the processed product;
the customs approved treatment or use assigned to the processed products as well as
particulars of the relevant declarations or other documents used to discharge the goods
or products from IP;
the amount of customs duty to be paid on any import goods released for free circulation
and
Quantities and values from the authorisation used and balance carried forward to next
period for discharge.
Failure to return Bills of Discharge or to return them on time should be taken up immediately by the
Region/LCD with the trader as this is considered a non compliance issue.
5.4 Monitoring/Checking of authorisations
Checking of authorisations ensures compliance on the part of these authorised traders. It is a matter
for each Regional Office/LCD to ensure consistency in relation to this checking, having regard to
risk strategy rather than resources.
There are several aspects to an authorisation, which must be monitored by the Region/LCD. These
include:
Ensuring that the terms and conditions are being adhered to;
Ensuring that the quantities and values as identified in the authorisation are not exceeded or
likely to be exceeded. This should involve monitoring of bills of discharge on a regular
basis. If quantities or values are exceeded, this may result in customs debts arising;.
Ensuring that only tariff codes included on the authorisation are used. The automatic
verification process in AEP should restrict importations to those on the authorisation.
However, movements from warehousing into Inward Processing can take place outside of
AEP using commercial documentation under local clearance, so checking of tariff code
eligibility should continue;
Ensuring that an authorised trader is subject to ordinary compliance checks at least once
every six months. These compliance checks should not take place as a result of risk profiling
or strategy but should be over and above any risk related visits. The level of detail that these
compliance checks involve can be decided by the Region/LCD but should involve at least
the four points above; and
14
Ensuring that all authorised traders are audited on a regular basis. The fact that these traders
are visited for compliance checks on a regular basis should not exclude them from any audit
program being undertaken by the Region/LCD. The Region/LCD should ensure that every
authorised trader is audited at least once during the lifetime of an authorisation (The
maximum term for an authorisation is five years).
5.5 Proof of exportation
The Region/LCD can verify that the export formalities have been carried out from the export
declaration data available in AEP.
There is provision for the application of a simplified export procedure under which the export
declaration may be replaced by a commercial or administrative document. Any applications for
approval to operate under the simplified export procedure must be approved by the Region/LCD in
advance.
5.6 Destruction
In any case where it is claimed IP goods have been destroyed by accident or force majeure, the
trader must report the incident to the Region/LCD. If the Region/LCD are satisfied with the facts as
presented by the trader it may be accepted that the procedure has been discharged.
If a trader plans to destroy goods, the Region/LCD must be informed in advance and given the
following details:
the type of goods concerned;
the amount of duties or other charges liable;
the reason for destruction; and
the method of destruction;
If the Region/LCD is satisfied that the destruction is justified, and there are no environmental
concerns, it may be accepted that the procedure has been discharged on completion of the
destruction with no waste remaining.
6. Release of IP goods to Free Circulation
6.1 Request for release under Article 85(1) or 86(3) UCC.
Goods can be released to free circulation from the IP procedure in two ways:
Article 85(1)
1. Processed products can be released to free circulation (Old PCC procedure) with duty and
VAT applicable on the finished product. Or
Article 86(3)
2. The processed product can be released to free circulation with duty and VAT applicable to
the originally imported raw materials (old IP diversion). This method must be applied for in
advance by the trader, and must be set down in the authorisation.
See Appendix IX for the wording of these Articles.
15
6.2 Payment of duty
(UCC Article 104,)
The Region/LCD will enter in the accounts the amount of import duty payable as established in the
bill of discharge within 14 days from the date on which the bill of discharge was received.
Form 1034 – Appendix V – must be submitted by the trader to the Region/LCD with all duty and
VAT due at the time of release. If the trader has a deferred payment arrangement, all duties on
goods released in a particular month must reach the Region/LCD on or before the fifteenth day of
the following month.
Each form 1034 must contain the following:
the authorisation number;
reference to the deferred payment arrangement if relevant;
a declaration that it accounts for all of the goods released for free circulation.
The form must be accompanied by a summary account of the goods released for free circulation.
6.3 Arrears
The Region/LCD is responsible for the on-going receipt of duty payments. The Region/LCD must
pursue outstanding bills of discharge and/or payments as considered appropriate. In the event of
continued failure by the trader to submit timely and correct bills of discharge and or timely
payments Authorisations & Reliefs Unit should be contacted with a view to withdrawing the
authorisation.
6.4 Use of INF Forms
(Article 271 IA, and 176 & 181 DA, Annex 71-05 DA)
The Commission is to develop an electronic system for the use of all INF forms. Until this
system is ready transitional arrangements allow all INF forms to be submitted in paper form.
6.5 INF 1 Form
An INF1 form is a prescribed document used for determining the amounts of customs duty, and any
other charges due where processed products or goods in the unaltered state are released for free
circulation in a Member State other than the one in which the IP authorisation was issued.
If an Irish trader wishes to release IP goods for free circulation, which were entered to IP in another
Member State, a completed form INF1 must be presented to the Region/LCD together with Form
1034. The INF1 must be endorsed by customs in the other Member State. Similarly, if an IP trader
in Ireland is sending goods to another Member State for subsequent release to free circulation, the
trader must present the Region/LCD with an INF1 for endorsement and forward it with the goods.
Member State authorities may agree other methods of exchange of information.
During the transitional arrangement the existing INF 1 can be used in conjunction with the co
relation table at Appendix VI
16
7. Equivalence
(UCC Article 223 , Art 268 IA, 169 of DA)
7.1 What is equivalence
Equivalence is a facility within IP that allows traders to use identical Union goods in place of
import goods for processing and export, when approved to do so.
The equivalent goods must fall within the same subheading of the Common Customs Tariff, be of
the same commercial quality and have the same technical characteristics as the import goods.
Equivalent goods may be at a more advanced stage of manufacture than the import goods provided
the essential part of the processing is carried out by or on behalf of the trader. Equivalence can be
granted either for specific products or for all products covered by an authorisation. In the case of
repair, equivalence is allowed for new goods instead of used goods or goods in a better condition
than the non-Union goods placed under the IP procedure. It cannot be used with the simplified
authorisation arrangement.
7.2 Application for equivalence
Applications to use equivalence are normally made at the time of the application for IP on the
standard application form. Applications for equivalence can also be dealt with by way of
amendment to a current authorisation. Any application for equivalence must include the following:
the nature, quantity and value of the processed products in respect of which the application
is made;
the nature, tariff subheading, commercial quality and quantity of the goods being imported;
any information necessary to establish the relationship between the goods exported and the
replacement import goods.
Any trader who is issued with an authorisation, which provides for the use of equivalence must sign
a specific set of conditions (see Appendix VII). Authorisations & Reliefs Unit will issue a copy of
these conditions to the Region/LCD with the authorisation .
7.3 Restrictions to the use of equivalence
The use of equivalent goods shall not be authorised where;
the non-Union goods place under the IP procedure would be subject to a provisional or
definitive anti-dumping, countervailing, safeguard duty or an additional duty resulting from
a suspension of concessions if they were declared for release for free circulation.
The authorisation is issued for the usual forms of handling only.
Where a prohibition of drawback of, or exemption from, import duty applies to nonoriginating
goods used the manufacture of processed products for which a proof of origin is
issued in the framework of a preferential arrangement between the Union and certain
countries or territories outside the Union.
Where it would lead to an unjustified import duty advantage, or where provided for in Union
legislation.
17
The use of equivalent goods shall also not be authorised for goods or products that have been
genetically modified or contain elements that have undergone genetic modification.
7.4 Prior exportation
This is an arrangement which allows the trader to manufacture products from equivalent goods and
export the products before the import of the replacement goods i.e. export before import EX/IM.
Prior exportation cannot be used unless specifically provided for in the trader’s authorisation.
7.5 Special equivalence rules for agricultural goods
(Annex 71-04 to DA)
The use of equivalence in respect of specified agricultural goods i.e. rice, wheat, sugar, live animals
and meat, maize, olive oil and milk and milk products, is subject to special provisions, which are set
down in Appendix VIII.
7.6 Information Form INF5
(Article 271 IA, and 176 & 181 DA, Annex 71-05 DA)
An INF5 form is a prescribed document use for the exchange of information between Member
States where processed products manufactured from equivalent goods are exported from one
Member State (e.g. Ireland) prior to the import of the replacement goods to a different Member
State (e.g. France). This is known as triangular traffic. The Member State authorities concerned
may agree other methods of exchange of information.
8. Movement of goods under Inward Processing
(UCC Art 219, Art 267 IA, Art 178 (1) (e) & Art179 DA)
Movement of goods may take place between different places in the customs territory of the Union
without customs formalities, but the records of the trader shall show the location of the goods and
all information regarding the movement.
Movement of goods to the customs office of exit with a view to discharging the IP procedure shall
be carried out under the cover of the re-export procedure, however the goods will remain under the
IP procedure until they have been taken out of the customs territory of the Union.
8.1 Transfer from the point of entry
Transfer of the goods from the point of entry to the premises of the trader or operator is covered by
the entry declaration which declares the goods entered to the IP procedure and the liability is
covered by the trader’s guarantee.
8.2 Transfer to an approved operator
An operator is someone who has been authorised to process IP goods in their own premises on
behalf of the authorised trader. The goods may be transferred to the operator’s premises for
processing without any customs formalities. The trader retains responsibility for the goods at all
times and all movements of the goods must be recorded in the trader’s accounts.
If the operator is located in another Member State, Authorisations & Reliefs Unit will contact the
customs authorities in that Member State and, if they are in agreement, the trader’s authorisation
will be amended to an Authorisation covering more than one Member State.
18
9. The “No Drawback” rule
(UCC Article 78)
Certain Preferential Trade Agreements concluded between the EU and third countries include a
provision known as the “No Drawback” rule. Under this provision goods do not qualify for
preferential tariff treatment on entry to the agreement country where materials used in their
manufacture have benefited from “a drawback (refund) of customs duty or exemption from customs
duty of whatever kind”. Therefore, a Movement Certificate EUR1 or Invoice Declaration may not
be issued for goods containing any materials which have benefited from duty suspension under IP.
However, if a trader wishes to use an EUR 1/Invoice Declaration, then the originally imported
goods must be released out of the Inward Processing arrangements and all duties/VAT etc must be
paid before the EUR 1/Invoice Declaration can be used.
The “No Drawback” rule currently applies to the following countries:
Algeria
Chile
Egypt
Faroe Islands
Iceland
Israel
Jordan
Lebanon
Liechtenstein
Macedonia (F.Y.R.)
Mexico
Morocco
Norway
Palestinian Authority of the West Bank & the Gaza Strip
Switzerland
Syria
Tunisia
Turkey
South Korea
For further information on the “No Drawback rule” please contact Origin & Valuation Section.
19
10. Sensitive Goods (Annex 71-02 DA)
The use of non-Union sensitive goods in IP is restricted. Regions/LCD may consider that, given the
sensitivity of these goods within the EU market, additional monitoring of these authorisations is
necessary. The following are the broad headings of the goods concerned:
Beef and Veal
Pigmeat
Sheepmeat
Poultry
cereals
rice
sugar
olive oil
milk and milk products
wines
certain alcohols
goods for which export refunds are fixed
eggs
fishery products
The period of validity of the authorisation in respect of such goods will be for a maximum of three
years.
20
APPENDIX I : Control Officers Report on Inward Processing
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
Part one: to be completed for all Procedures.
Part two: additional information for inward processing applications
Part three: additional information for outward processing applications.
Part one
File reference:
Special Procedure:
(Indicate the type of procedure applied for e.g. IP/OP/EU)
(1)Name and Address of trader
(1a)Registered Address (if different to above):
(2) Applicant EORI number (3)VAT Registration number:
(4)Company Registration number (5)TAN Number
(6) Has the trader a copy of the Traders
Guidelines on Revenue Website?
(7) Does the trader hold a VAT 56(a)
Authorisation?
(8)Has the trader AEO status? (9) Will the company require a deferred payment
arrangement?
21
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(10) Has the trader been approved for any simplified procedures?
If so, please give details
(see Annex 1)
(11) Are the trader’s accounts satisfactory?
(12)Is the trader under audit?
If so, in what context?
(13) Does the trader have a satisfactory record in complying with Custom’s requirements?
(14) Are fiscal goods involved?
(CAP goods or goods involving export refunds)
Complete this question for End-use only (for IP see question 29 and for OP see question 32)
(15) What is the nature of the end-use?
(15a) At what point are the goods considered to be put to their end use?
Note: Goods must be capable of being put to their end-use on importation. Goods under end-use cannot be repaired; for repair an IP authorisation is
needed.
(16) Can applicant prove an economic need for the procedure?
(17) Where will the processing/end use operation be carried out?
If not at the premises of the applicant indicate the operators that will be involved in the processing in question 18.
22
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(18)Name and address of Operators
VAT no EORI no
Name and address of Operators
VAT no EORI no
(18a) Indicate what type of processing/end use will be carried out by these operators;
(18 b)Has the trader provided an undertaking allowing Revenue right of entry to any Operators
premises?
(if not please request undertaking)
(19) Has the trader applied for a retrospective authorisation?
If yes, is retrospections recommended?
State the exceptional circumstances under which retrospection was approved
Note: retrospection cannot be allowed if the trader has had an application for retrospection granted within 3 years from date of acceptance of the
application. The maximum period allowable is twelve months prior to the date of acceptance of the application or, 3 months in the case of Annex 71-02
goods.
(20) Is separate storage of goods under the procedure necessary?
If so, what are the arrangements?
23
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(21) Is equivalence requested?
If so, do the goods have the same eight-digit CN code and the same commercial quality and the same
technical characteristics as the goods which they are replacing?
Note: Equivalence is not permitted in cases where the Non-Union goods imported into the procedure would be subject to a provisional or definitive antidumping,
countervailing, safeguard duty or an additional duty resulting form a suspension of concessions if they were declared for release for free
circulation.
(22) Is prior exportation required?____________________________
If yes, is the trader familiar with the requirements to use the INF 5 form?(see Annex 2)
(23) Is triangulation envisaged?______________________________
If yes;
name the importer authorised to enter the goods:
_____________________________________________________
Place where the goods are to be imported:
_____________________________________________________
Customs authority empowered to check on the import goods:
_______________________________________________________
(24) Has the trader given the correct ten-digit CN codes for goods entering the procedure and eightdigit
CN codes for the processed products?
Note: trader should be encouraged to obtain BTI.
(25) What is the means of identification of the raw materials and the processed product?
(26) Are you in agreement with the stated “rate of yield”?__________________
If not, please agree rates of yield and set down below:
(27)Period of discharge?__________________(months)
Justification:
(if over 6 months)
Note: standard period of discharge is set at 6 months. Period can be less but if an extended period is requested, then the justification must be set down.
The period of discharge must be for the processing operations and cannot include storage.
24
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(28) Is movement of goods under the procedure envisaged?
If so, are the records sufficient to show the details of the movement and location of goods?
(a) Between the trader and the named operator
(b) To other Authorisation holders
(29) Address for each of the following responsible Revenue offices:
(a) Supervising Revenue office:
__________________________________________________________________________________
__________________________________________________________________________________
(b) Office(s) of entry for the procedure:
__________________________________________________________________________________
__________________________________________________________________________________
(c) Office of discharge
__________________________________________________________________________________
__________________________________________________________________________________
(30) Time period for presentation of the Bill of Discharge:______________ months
(31) What is the reference amount needed for the duty liability: (this must be calculated even if the
trader has AEO status: €___________________________________ (for OP see Part Three)
(32) What form will the guarantee take: Cash or guarantee?
(33) Are there any special control arrangements envisaged?
(34) Date of visit(s)________________________________
25
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(35) Are there any other observations relevant to this application which has come to light as a result of
enquiries carried out?
PART TWO: INWARD PROCESSING
(36) What operation will be carried out under the Inward Processing Procedure;
Repair________________________________________________________
Destruction ____ _______________________________________________
Processing:(all goods must be identified in the processed product with the exception of production
accessories___________________________________________
Production accessories: the use of which are not be found in processed products, but which allow for
or facilitate the production of those products, even if they entirely or partially used up in the
process.________________________________________________
Goods intended to undergo operations to ensure their compliance with technical requirements for their
release to free circulation_______________________
Goods which have to undergo usual forms of handling__________________
Description of the specific operations to be carried out:
(36a) If more than one operation is involved, please specify the Annex 1 goods for each operation.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
26
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(37) Is the trader releasing goods to free circulation? Yes/No
If yes, state below method of release and indicate percentage of each method.
Processed product released to free circulation under Art 85(1) UCC_______________%
Processed product released to free circulation where the duty due is on the originally imported raw
material, Art 86(3) ______________%
NOTE: Any goods released to free circulation in the same state as imported (unaltered/unprocessed) will
apply Article 85(1).
(See Annex 2 for UCC Articles.)
(38) Are there goods to be re-exported? Yes/No
If yes please indicate below the percentage that will be:
Exported without preferential origin documentation, to preferential trade agreement countries where
the “No Drawback “rule applies. __________________%
Exported to other non-EU countries______________%
PART THREE: OUTWARD PROCESSING
(39) What time period is required to process/repair and re-import the goods?
(40) In the case of repair indicate that the goods are actually in need of repair (that they are faulty or
broken as this procedure cannot be used to improve the technical performance of the goods)
(41) Is the Standard Exchange system with prior importation required?__________________
If yes,
What time period is required to subsequently export the defective goods?
__________(maximum period is 2 months)
Amount of guarantee required for imported goods until defective goods are exported
€________________________________
Is the use of INF 2 envisaged? (see Annex 3)_______________
If not what other form of exchange of information is to be used?
______________________________________________________
27
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
(42) At entry or discharge from the arrangements, are the goods transferring from or to other
Authorisation holders?__________________________________________________________
Name of other holder’s __________________________________________________________
_______________________________________________________________________________
________________________________________________________________________________
RECOMMENDATION
(43) Please state any relevant information pertaining to your recommendation:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_____________________________________. STAMP
Name
(Block Capitals)
Annex 1- SIMPLFIED PROCEDURES
28
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
Simplified Procedures
EU legislation including the UCC established the concept of Simplified Procedures for import and
export of goods from/to non EU Countries.
Additional information on the various national import and export simplifications, which are available
together with the relevant application forms, including guides to completion, is provided from the
links below.
Types of Simplified Procedure
Under these simplified procedures, a number of different facilitation methods are available which
permit imports and exports to be cleared through Customs more quickly and more easily that would
otherwise be permitted. The types of simplified procedures available at import and export include
Incomplete Declaration at Import
Incomplete Declaration at Export
Simplified Declaration Procedure at Import
Simplified Declaration Procedure at Export
Local Clearance Procedure at Import
Local Clearance Procedure at Export
ANNEX 2 – ARTICLES 85(1) AND 86(3)
ARTICLE 85 (1)
General rules for calculating the amount of import or export duty
1.The amount of import or export duty shall be determined on the basis of those rules for calculation
of duty which were applicable to the goods concerned at the time at which the customs debt in respect
of them was incurred.
ARTICLE 86(3)
Special rules for calculating the amount of import duty
3. Where a customs debt is incurred for processed products resulting from the inward processing
procedure, the amount of import duty corresponding to such debt shall, at the request of the declarant,
be determined on the basis of the tariff classification, customs value, quantity, nature and origin of the
goods placed under the inward processing procedure at the time of acceptance of the customs
declaration relating to those goods.
29
CONTROL OFFICERS REPORT FOR SPECIAL PROCEDURES
Annex 3 – INF INFORMATION SHEETS
INF 1 is used for the communication of information on duty amounts, security and commercial
policy measures under Inward Processing.
INF 2 is used in order to communicate information on temporary export goods in triangular traffic, in
order to obtain partial or total relief for processed products under Outward Processing.
INF 5 is used to communicate information in order to obtain duty relief for import goods, on prior
exportation in triangular traffic, under Inward Processing.
INF 9 is used to communicate information on processed products to be assigned another customs
approved treatment or use in triangular traffic, under Inward Processing.
30
APPENDIX II: Sensitive goods and products (annex 71-02 da)
The following goods are covered by this Annex:
(1) The following agricultural products falling under one of the following sectors of the
common market organization (CMO):
Beef and veal sector: products referred to in Regulation (EU) No 1308/2013, Article 1(2)(o) and
listed in Annex I Part XV;
Pigmeat sector: products referred to in Regulation (EU) No 1308/2013, Article 1(2)(q) and listed in
Annex I Part XVII;
Sheepmeat and goatmeat sector: products referred to in Regulation (EU) No 1308/2013, Article
1(2)(r) and listed in Annex I Part XVIII;
Eggs sector: products referred to in Regulation (EU) No 1308/2013, Article 1(2)(s) and listed in
Annex I Part XIX;
Poultrymeat sector: products referred to in Regulation (EU) No 1308/2013, Article 1(2)(t) and listed
in Annex I Part XX;
Agriculture products: products referred to in Regulation (EU) No 1308/2013, Article 1(2)(v) and
listed in Annex I Part XXII;
Cereals sector: products referred to in Article 1(2)(a), Annex I Part I of Regulation (EU) No
1308/2013;
Rice sector: products referred to in Article 1(2)(b), Annex I Part II of Regulation (EU) No
1308/2013;
Sugar sector: products referred to in Article 1(2)(c), Annex I Part III of Regulation (EU) No
1308/2013;
Olive oil sector: products referred to in Article 1(2)(g), Annex I Part VII of Regulation (EU) No
1308/2013;
Milk and milk-products sector: products referred to in Article 1(2)(p), Annex I Part XVI of
Regulation (EU) No 1308/2013;
Wine sector: products referred to in Article 1(2)(l), Annex I Part XII of Regulation (EU) No
1308/2013 and falling under CN codes:
0806 10 90
2009 61
2009 69
2204 21 (quality wine PDO and PGI excepted)
2204 29 (quality wine PDO and PGI excepted)2204 30
31
Ethyl alcohol and spirit products falling under CN codes:
2207 10
2207 20
2208 40 39 – 2208 40 99
2208 90 91 – 2208 90 99
ex 2401 unmanufactured tobacco
Products other than those under points 1 and 2 subject to agricultural export refund.
Fishery products listed in Annex I to Council Regulation (EC) No 1379/2013 on the common
organization of the markets in fishery and aquaculture products and products listed in
Annex V to this regulation subject to a partial autonomous suspension.
All fishery products subject to an autonomous quota.
32
APPENDIX III – Form: IPsim
Application for Inward Processing Simplified Procedure – Commission Reg. No. 952/2013.
1. Name or Business Name and Address:
(a) of the applicant/Declarant/Operator _____________________________
_____________________________________________________________
VAT No.: ______________ Tan No: ________________________
2. Goods to Be Processed/repaired:
Trade or technical description: ______________________________
Tariff Code Number: ______________________________________
Quantity and Value: _______________________________________
3. Processed/repaired Goods:
Trade or technical description:_______________________________
Tariff Code Number_______________________________________
4. Suggested method of identifying the import goods in the finished products:
_____________________________________________________________
5. Nature/Place of Processing Operation: ____________________________
6. Estimated Rate of Yield: ________________________________________
7. Estimated period for discharge (processing and re-export): ___________
8. Proposed Office of discharge:____________________________________
9. Proposed Transfer Formalities: __________________________________
10. Entry Reference Number (SAD): _________________________________
11. Declaration:
I undertake to comply with the conditions of Inward Processing Relief as laid down in Council
Regulation (EC) No. 952/2013 Union Customs Code.
Signed: ________________________Status in Company ______________________
Copies of these conditions and guidelines for Inward Processors are available on
request from Authorisations & Reliefs Unit, Revenue Commissioners, St Conlon’s
Road, Nenagh, Co. Tipperary, Tel: 067 63204/63462 or on the Revenue website at
www.revenue.ie
FOR OFFICIAL USE ONLY
This declaration and 2 copies should be
presented to customs at the point of entry
Original: For Trader
Copy 1: For Import station
Copy 2: For Region/LCD
Goods imported? Yes/No
33
Signed: _________________
Date: ____________________
Stamp:
APPENDIX IV: General conditions to be observed by persons authorised to engage in an
Inward Processing arrangement.
1. The authorisation is issued by the Revenue Commissioners and may be revoked for noncompliance
with Union legislation governing Inward Processing.
2. Acceptance of these conditions does not relieve the Authorisation holder from compliance
with the law and regulations for the time being in force relating to Inward Processing or to the
importation, transhipment, exportation, warehousing or entry for free circulation of goods
including the submission of Intrastat and/or VIES declarations.
3. The Authorisation holder shall inform the customs authorities without delay of any factor
arising after the decision was taken, which may influence its continuation or content.
4. The Authorisation holder is responsible for ensuring that the tariff code numbers quoted on
the Authorisation are correct.
5. To make an amendment or modification, or to increase the quantities and values of the goods
already authorised, an application should be make to the Revenue Commissioners in advance
of importation. Failure to do so may result in a Customs liability.
6. The Authorisation holder is agreeable to the transmission by the Revenue Commissioners of
statistical information relating to goods imported under the arrangement to the E.U.
Commission.
7. Each consignment of goods imported under inward processing must be entered in the
Automated Entry Processing (AEP) system, in accordance with the AEP Trader Guide. The
appropriate procedure code (first two digits 51) must be inserted in box 37. The Authorisation
number must be quoted in box 44. The entry must bear a declaration that the goods entered
thereon are being imported for the purpose of undergoing a process of manufacture in
accordance with an Authorisation issued by the Revenue Commissioners. The entry must be
supported by an invoice(s), in duplicate, showing the total value and quantity of goods in the
consignment
8. In the case of goods imported through the parcel post, the words “Imported under I.P” must
form part of the sender’s declaration affixed to the parcel.
9. Accounts must be kept at the premises of the Authorisation holder showing the quantity of all
the goods: –
a. imported or otherwise received under the arrangement,
b. used in manufacture,
c. exported outside the EU after having undergone the process of manufacture, the
quantity of the processed products concerned being also given,
d. released to free circulation.
e. destroyed under customs supervision, or otherwise accounted for as waste,
34
f. transferred to other approved regimes,
g. remaining on hands at the end of any approved period.
The accounts must contain adequate detail to enable each transaction to be traced and checked
against inward and outward movements of materials approved under the arrangement.
In the case of (a), particulars of each consignment received must be recorded under a unique
sequential reference and include the internal materials control references allocated by the
trader. The records must include the import SAD reference for imports and other recognised
references for other receipts.
In the case of (c), particulars of each dispatch of processed products must be recorded under a
unique sequential reference number and include the business commercial reference numbers.
The records must include the export SAD reference for goods for export and other recognised
references for other deliveries and transfers.
In the case of (d), where any of the imported goods are liable to excise duties, separate
accounts must be kept in respect of the quantities released to free circulation.
10. Bills of discharge must be provided to the local Revenue office showing, in respect of each
type of product to be manufactured, the quantity of each description of goods imported under
the arrangement, which is required to complete the finished product, or a specified number of
such products. The Authorisation holder must notify their local Revenue Office of any
material change in the rate of yield impacting on duty liability.
11. The accounts referred to in the condition 10 must be kept accessible to and open for
inspection by any Revenue Official, and such officials must be afforded every facility for
satisfying themselves as to their accuracy. These accounts, including details required on bills
of discharge may be subject to review by a Revenue Audit and the authorisation holder may
be requested to present a new accounting system.
12. Samples of the goods imported and of the processed products in which they are used must be
provided to any Revenue Official if so requested.
13. In respect of each period of ____ months, commencing from the first day of each quarter, a
summary of the accounts required under condition 10 must be furnished in the form of a Bill
of Discharge / balanced statement to the relevant Revenue Office within ten days from the
termination of such period, and each such return must be certified by the Secretary or by a
duly authorised official to be a full and true account of all transactions related to the
arrangement which took place during the period in question.
14. Where goods/processed products are exported a SAD entry must be made to the AEP system
in accordance with the AEP Trader Guide. The appropriate procedure code (last two digits
51) must be inserted in box 37. The Authorisation number must be quoted in box 44 together
with the invoice/serial number of the export consignment as shown in the Authorisation
holder’s accounts. The entry must be supported by the export documents required by the
regulations.
15. Dutiable goods not used in manufacture, and also any waste material resulting from the
manufacturing operations, must be exported, destroyed without delay in the presence of a
Revenue Official or otherwise accounted for to the satisfaction of the Revenue
Commissioners and any duty or other like charge due on exportation or otherwise must be
paid thereon.
35
16. Duty must be paid on demand on any dutiable goods, which at any time are not shown to have
been exported under these conditions or not to have been otherwise accounted for to the
satisfaction of the Revenue Commissioners.
17. The authorisation holder is responsible for ensuring that they comply with the provisions for
the time being in force in the relevant member state(s) in relation to the payment of Value
Added Tax.
18. Where the import goods or processed products are placed on the EU Market the Authorisation
holder must co-operate fully with Revenue in all necessary enquiries undertaken in relation to
the customs valuation of goods imported under the arrangement and, in particular, a valuation
declaration form (C&E G563, or alternative as appropriate) must be completed at the time of
entry of the goods concerned to the arrangement. Where the declared value is not accepted,
pending investigation and adjustment as found necessary, processed products or goods in the
unaltered state may not, in any circumstances, be placed on the EU market except on payment
of a deposit sufficient to cover the proper amount of duty payable thereon.
19. Where the authorisation issued provides for use of a local clearance procedure under point 14
(a), such procedure provides strictly for the receipt of Inward Processing goods/products from
other authorisation holders and does not provide for the receipt of other goods at the
authorisation holder’s premises. The trader is obliged to notify their local Revenue Office of
the receipt of Inward Processing goods from other authorisation holders and to enter such in
their Inward Processing records.
20. All necessary assistance and co-operation must be provided to any Revenue Official in taking
stock of goods held under the arrangement and in establishing agreement between official
stock records and the records of the Authorisation holder.
21. Revenue reserves the right to vary or add to the conditions set out above.
36
I/We……………………………..(Name in block letters) hereby certify that
the conditions (1) to (21) set out above are accepted and undertake
that they will be complied with.
Signed*: _______________________________
Designation of Signatory:
__________________________________
on behalf of: ______________________________
(Name of holder of Authorisation)
Date: _____________________
*When the Authorisation is issued to an individual the signatory
should be that individual. In the case of a limited company the
signatory should be the Secretary or Managing Director or General
Manager, and in the case of any other trading entity, the owner or
partner. A responsible official other than those mentioned may also
sign provided he/she is duly authorised in writing to accept liability.
In the case of a non-resident individual, limited company or other
trading entity the signatory should be the lawfully appointed Attorney
of the holder of the Authorisation, resident in the State.
37
APPENDIX V: Inward Processing return and periodic payment Form 1034
8. Inward Processor VAT No. 1. DECLARATION A. No. and Date
DIV.
Collection
Station
Period to which payment relates
31. Description of goods 32. Item 33. Commodity Code 47. CALCULATION OF TAXES
No. Type Tax base Rate Amount MP
34. Country origin Code 37. Procedure
a. b.
38. Net mass (kg)
41. Supplementary units
46. Statistical value
31. Description of goods 32. Item no. 33. Commodity Code 47. CALCULATION OF TAXES
Type Tax base Rate Amount MP
34. Country origin Code 37. Procedure
a. b.
38. Net mass (kg)
41. Supplementary units
46. Statistical value
31. Description of goods 32. Item 33. Commodity Code 47. CALCULATION OF TAXES
No. Type Tax base Rate Amount MP
34. Country origin Code 37. Procedure
a. b.
38. Net mass (kg)
41. Supplementary units
46. Statistical value
31. Description of goods 32. Item 33. Commodity Code 47. CALCULATION OF TAXES
No. Type Tax base Rate Amount MP
34. Country origin Code 37. Procedure
a. b.
38. Net mass (kg)
41. Supplementary units
46. Statistical value
31. Description of goods 32. Item 33. Commodity Code 47. CALCULATION OF TAXES
No. Type Tax base Rate Amount MP
34. Country origin Code 37. Procedure
a. b.
38. Net mass (kg)
41. Supplementary units
46. Statistical value
I hereby declare that the above particulars are a true and complete account of the TOTAL
charges payable on the goods released from inward processing during the stated period and I request FOR OFFICIAL USE
that the attached summary(ies) of accounts be accepted as the basis of change.
Signature……………………………………………………………………………………………………………….. Payment received and records noted
Date …………………………………………………………………………………….. 20………………………. Cashier
38
APPENDIX VI: Standardised Exchange of Information (Inf) Annex 71-05 Da)
Section A
Standardised exchange of information (INF) between customs authorities is not yet required
but the supervising customs office shall make available the relevant INF data elements in the
electronic system relating to INF
The supervising customs office shall make available the following data elements in accordance with
Article 181(1). Where a customs declaration or re-export declaration/notification refers to an INF,
the competent customs authorities shall provide additional data elements in accordance with Article
181(3).
The holder of an authorisation for inward processing IM/EX which involves one Member State may
request the supervising customs office to make the relevant INF data elements available via the
electronic system relating to INF in order to prepare the standardised exchange of information
between customs authorities, if the responsible customs authority has requested such INF.
Note:
(M) means mandatory and (O) means optional
Common data elements Comments
Authorisation number (M)
Person making the request (M) EORI number used for identification purposes
INF number (M) Unique number given by the supervising customs office
[e.g. IP EX/IM/123456/GB + authorisation no]
Supervising customs office (M) COL code would be used for identification purposes
Customs office using the INF data
elements (O)
COL code would be used for identification purposes.
This data element will be provided if the INF data
elements are actually used.
Description of the goods which are
covered by the INF (M)
CN Code, net quantity, value (M)
of processed products
These data elements are related to the total net quantity
of goods for which the INF is requested.
Description of the processed
products which are covered by the
INF (M)
CN Code, net quantity, value of
processed products (M)
These data elements are related to the total net quantity
of processed products for which the INF is requested.
39
Particulars of the customs
declaration(s) placing goods under
the special procedure (O)
Where a customs declaration refers to the INF, this data
element shall be provided by the customs office of
placement.
MRN (O) This data element may be provided if the INF data
elements are actually used.
Remarks (O) Any additional information may be entered
Specific data elements IP Comments
If a customs debt is incurred, the
amount of import duty shall be
calculated in accordance with
Article 86(3) of the Code (O)
–
Equivalent goods (O) –
Prior exportation (O) –
Business case IP IM/EX
Customs declaration of placement
under inward processing was
accepted (O)
Where a customs declaration refers to the INF, this data
element shall be provided by the customs office of
placement.
Particulars necessary for
application of commercial policy
measures (O)
–
Last date for discharge (O) Where a customs declaration refers to the INF, this data
element shall be provided by the customs office of
placement.
CN Code, net quantity, value (M) Indicate the quantity of goods which were placed under
IP. This data element shall be provided by the customs
office of placement.
The declaration of discharge was
accepted (O)
Where a customs declaration refers to the INF, this data
element shall be provided by the customs office of
discharge.
CN Code, net quantity, value (M) In case of discharge, indicate the quantity of processed
products which is available. This data element shall be
provided by the customs office of discharge.
Date of exit and exit result (O) These data elements shall be provided by the customs
office of exit.
Business case IP EX/IM
Export declaration under IP
EX/IM was accepted (O)
Where an export declaration refers to the INF, this data
element shall be provided by the customs office of
export.
40
Particulars necessary for
application of commercial policy
measures (O)
Last date of placement of nonUnion
goods, which are replaced
by equivalent goods, under inward
processing (O)
Where a customs declaration refers to the INF, this data
element shall be provided by the customs office of
export.
CN Code, net quantity, value (M) Indicate the quantity of goods which can be placed
under IP. This data element shall be provided by the
customs office of export.
Date of exit and exit result These data elements shall be provided by the customs
office of exit.
Date of placement of non-Union
goods, which are replaced by
equivalent goods, under inward
processing (O)
Where a customs declaration refers to the INF, this data
element shall be provided by the customs office of
placement.
CN Code, net quantity, value (M) In case of placement of non-Union goods under inward
processing, indicate the quantity available. This data
element shall be provided by the customs office of
placement.
Specific data elements OP Comments
Business case OP EX/IM
Country of processing (O) –
Member State of re-importation
(O)
–
Equivalent goods (O) –
Customs declaration OP number
(M)
Where a customs declaration for OP refers to the INF,
this data element shall be provided by the customs
office of export/placement.
Identification of goods (M) (M) unless equivalent goods may be used.
Where a customs declaration refers to the INF, this data
element shall be provided by the customs office of
export/placement.
CN Code, net quantity (M) In case of placement of Union goods under outward
processing, indicate the quantity available. This data
element shall be provided by the customs office of
export/placement.
Last date of re-importation of
processed products (M)
Where a customs declaration refers to the INF, this data
element shall be provided by the customs office of
export/placement.
Exit result (M) Where a customs declaration refers to the INF, this data
41
element shall be provided by the customs office of exit.
Date of re-importation of
processed products (M)
Where a customs declaration refers to the INF, this data
element shall be provided by the customs office for
release for free circulation.
Particulars of the customs
declaration(s) for release for free
circulation (O)
Where a customs declaration for release for free
circulation refers to the INF, this data element shall be
provided by the customs office for release for free
circulation.
CN Code, net quantity, value (M) In case of re-importation of processed products,
indicate the quantity of processed products which can
be re-imported under outward processing. This data
element shall be provided by the customs office for
release for free circulation.
Business case OP IM/EX
Prior importation of processed
products (O)
This data element shall be provided by the customs
office for release for free circulation. (guarantee must
be provided)
Last date of placement of Union
goods, which are replaced by
equivalent goods, under outward
processing (O)
Where a customs declaration refers to the INF, this data
element shall be provided by the customs office for
release for free circulation.
Date of placement of Union goods,
which are replaced by equivalent
goods, under outward processing
(M)
Where a customs declaration refers to the INF, this data
element shall be provided by the customs office of
export/placement.
CN Code, net quantity, value (M) In case of placement of Union goods, which are
replaced by equivalent goods, under outward
processing, indicate the quantity of Union goods which
must be placed under outward processing. Where a
customs declaration refers to the INF, this data element
shall be provided by the customs office of
export/placement.
Exit result (M) Where a customs declaration refers to the INF, this data
element shall be provided by the customs office of exit.
Section B
Standardised exchange of information (INF) between customs authorities is required but the
INF data elements are not yet available in the electronic system relating to INF
(2) The responsible customs authority as referred to in Article 101(1) of the Code has
requested an INF between customs authorities in accordance with Article 181(2) because a
customs debt is incurred in accordance with Articles 77(1)(a) or 79(1) of the Code for
processed products which were obtained under inward processing IM/EX. The calculation
of the amount of import duty shall be made in accordance with Article 86(3) of the Code
42
but the responsible customs authority does not have information on the goods which were
placed under inward processing IM/EX.
The responsible customs authority as referred to in Article 101(1) of the Code has
requested an INF between customs authorities in accordance with Article 181(2) because a
customs debt is incurred in accordance with Articles 77(1)(a) or 79(1) of the Code for
processed products which were obtained under inward processing IM/EX and Commercial
Policy Measures are applicable.
In situations covered by points 1 or 2 above the responsible customs authority shall provide
the following data elements:
Common data elements Comments
Type of request (M) Procedure needs to be identified (IP or IP CPM). The
data element ‘Type of request’ is needed only in cases
where the customs declaration does not refer to an INF.
The responsible customs authority
as referred to in Article 101(1) of
the Code (M)
COL code would be used for identification purposes
Authorisation number (M) –
CPM (O)
Supervising customs office
receiving the request (M)
COL code would be used for identification purposes
Description of the goods or
processed products for which the
INF is requested (M)
–
CN Code, net quantity, value (M)
MRN (O)
Remarks (O) Any additional information may be entered
The supervising customs office receiving the request shall make available the following data
elements:
Specific data elements IP IM/EX Comments
The amount of import duty to be
entered in the accounts and
notified to the debtor in
accordance with Article 86(3) of
the Code (O)
–
Particulars necessary for
application of commercial policy
measures (O)
–
INF number (M) Unique number given by the supervising customs office
[e.g. IP/123456/GB + authorisation no (EORI no is
43
part of the authorisation no) ]
MRN (O)
–
44
APPENDIX VII: Conditions to be observed by persons authorised to operate equivalence
1. In these conditions
“import goods” means the non-Union goods placed under inward processing,
“equivalent goods” means the equivalent Union goods which, under the equivalent
compensation arrangement, replace the import goods,
“equivalent processed products” means the processed products processed from equivalent
goods.
2. Importation of import goods and exportation of equivalent processed products may be carried
out only by the holder of the inward processing Authorisation.
3. Equivalence is not permitted for import goods that are subject to an agricultural or a
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.
4. A separate account must be kept showing disposal of the import goods and exportation of the
equivalent processed products.
5. For prior exportation a time limit of ____ months for completion of the arrangement applies
commencing on the date of the export of the equivalent compensating products under the
arrangement.
6. A SAD export declaration must be presented to Revenue or an appropriate entry must be
made to the AEP system in respect of each consignment of equivalent processed products
exported under the arrangement.
7. An INF 5 must be stamped showing the quantity of equivalent goods contained in the
exported processed products. This stamped INF 5 starts the time period set down in point 5.
8. Samples of the equivalent processed products, of the equivalent goods from which processed,
and of the import goods must be supplied free of charge on demand by a Revenue Official.
9. The account referred to in condition 4 must be kept accessible to and open to inspection by
any Revenue Official and such Official must be afforded every facility for satisfying
themselves as to its accuracy.
10. These conditions apply to an equivalent processed/prior exportation arrangement relating to
products imported under an inward processing arrangement.
11. Adherence to these conditions does not remove the obligation from the authorisation holder to
comply with EU law and regulations governing Inward Processing.
12. The Revenue Commissioners reserve the right to vary or to add to the conditions set out
above.
45
I/We……………………………..(Name in block letters) hereby certify that
the conditions (1) to (12) set out above are accepted and undertake
that they will be complied with.
Signed*: _______________________________
Designation of Signatory:
__________________________________
on behalf of: ______________________________
(Name of holder of Authorisation)
Date: _____________________
When the Authorisation is issued to an individual the signatory
should be that individual. In the case of a limited company the
signatory should be the Secretary or Managing Director, and in the
case of any other trading entity, the owner or partner. A responsible
official other than those mentioned may also sign provided he/she is
duly authorised in writing to accept liability.
In the case of a non-resident individual, limited company or other
trading entity the signatory should be the lawfully appointed Attorney
of the holder of the Authorisation, resident in the State.
46
APPENDIX VIII : special provisions concerning equivalent goods (Annex 71-04-DA)
I. Customs warehousing, inward and outward processing
Conventionally produced goods and organic goods
It is not permitted to replace:
organic goods by conventionally produced goods; and
conventionally produced goods by organic goods.
II. Inward processing
(i) Rice
Rice classified under CN code 1006 shall not be deemed equivalent unless it falls within the same
eight-digit CN code of the Combined Nomenclature. Nevertheless, for rice with a length not
exceeding 6,0 mm and a length/width ratio equal to or more than 3 and for rice with a length equal
to or less than 5,2 mm and a length/width ratio equal to or more than 2, equivalence shall be
established by determination of the length/width ratio only. The measurement of the grains shall
be done in accordance with Annex A(2)(d) to Regulation (EC) No 3072/95 on the common
organisation of the market in rice.
(ii) Wheat
Equivalent goods may be used only between wheat harvested in a third country and already
released for free circulation and non-Union wheat, of the same eight-digit CN code, having the
same commercial quality and the same technical characteristics.
However:
derogations from the ban on use of equivalent goods may be adopted in respect of wheat on the
basis of a communication from the Commission to the Member States, after examination by the
Committee,
the use of equivalent goods is permitted between Union durum wheat and durum wheat of thirdcountry
origin, provided it is for the production of pasta falling within CN codes 1902 11 00 and
1902 19.
(iii) Sugar
Recourse to the use of equivalent goods is permitted between non-Union raw cane sugar (CN codes
1701 13 90 and/or 1701 14 90) and sugar beet (CN code 1212 91 80) under the condition that
processed products falling within CN code 1701 99 10 (white sugar) are obtained.
The equivalent quantity of raw cane sugar of standard quality as defined in point III of Part B of
Annex III to Regulation (EU) No 1308/2013 shall be calculated by multiplying the quantity of
white sugar with the coefficient 1.0869565.
The equivalent quantity of raw cane sugar not of standard quality shall be calculated by multiplying
the quantity of white sugar with a coefficient obtained by dividing 100 by the yield of raw cane
sugar. The yield of raw cane sugar shall be calculated as set out in point III of Part B of Annex IIĪ
to Regulation (EU) No 1308/2013.
47
(iv) Live animals and meat
Equivalent goods may not be used for inward-processing operations on live animals or meat.
Derogation from the ban on the use of equivalent goods can be made for meat which has been made
subject of a communication by the Commission to the Member States, after an examination carried
out by a body composed of representatives of the customs administrations of the Member States if
the applicant can prove that equivalence is economically necessary and if the customs authorities
transmit the draft of the procedures foreseen to control the operation.
(v) Maize
The use of equivalent goods between Union and non-Union maize is possible only in the
following cases and subject to the following conditions:
In the case of maize for use in animal feed, the use of equivalent goods is possible
provided that a customs control system is set up to ensure that the non-Union maize
is in fact used for processing into animal feed.
In the case of maize used in the manufacture of starch and starch products, the use of
equivalent goods is possible between all varieties with the exception of maizes rich
in amylopectin (wax-like maize or ‘waxy’ maize) which are only equivalent between
themselves.
In the case of maize used in the manufacture of meal products, the use of equivalent goods
is possible between all varieties with the exception of maizes of the vitreous type
(‘Plata’ maize of the ‘Duro’ type, ‘Flint’ maize) which are only equivalent between
themselves.
(vi) Olive oil
A. Recourse to the use of equivalent goods is permitted only in the following cases and under
the following conditions:
virgin olive oil
between Union extra virgin olive oil falling within CN code 1509 10 90 which corresponds
to the description in Point 1(a) of Part VIII of Annex VII to Regulation (EU) No
1308/2013 and non-Union extra virgin olive oil of the same CN code, provided that
the processing operation produces extra virgin olive oil falling within the same CN
code and satisfying the requirements of the said Point 1(a);
between Union virgin olive oil falling within CN code 1509 10 90 which corresponds to
the description in Point 1(b) of the Part VIII of Annex VII to Regulation (EU) No
1308/2013 and non-Union virgin olive oil of the same CN code, provided that the
processing operation produces virgin olive oil falling within the same CN code and
satisfying the requirements of the said Point 1(b);
between Union lampante virgin olive oil falling within CN code 1509 10 10 which
corresponds to the description in Point 1(c) of the Part VIII of Annex VII to
Regulation (EU) 1308/2013 and non-Union lampante virgin olive oil of the same CN
code, provided that the processed product is:
refined olive oil falling within CN code 1509 90 00 which corresponds to the description in
Point 2 of Part VIII of the abovementioned Annex VII, or
olive oil falling within CN code 1509 90 00 which corresponds to the description in Point 3
of Part VIII of the said Annex VII and is obtained by blending with Union virgin olive
oil falling within CN code 1509 10 90.
olive-pomace oil
48
between Union unrefined olive-pomace oil falling within CN code 1510 00 10 which corresponds to
the description in Point 4 of Part VIII of Annex VII to Regulation (EC) No 1234/2007 and nonUnion
unrefined olive-pomace oil of the same CN code, provided that the olive-pomace oil
processed product falling within CN code 1510 00 90 and corresponding to the description in Point
6 of Part VIII of the said Annex VII is obtained by blending with Union virgin olive oil falling
within CN code 1509 10 90.
B. The blendings referred to in Point A.1(c) second indent and Point A.2, with non-Union
virgin olive oil, used in an identical manner, are authorised only where the arrangements for
supervision of the procedure are organized in a manner that makes it possible to identify the
proportion of non-Union virgin olive oil in the total quantity of blended oil exported.
C. The processed products must be put into immediate packaging of 220 litres or less. By way
of derogation, in the case of agreed containers of 20 tonnes maximum, the customs authorities may
allow the exportation of the oils found in the preceding Points on condition that there is systematic
control of the quality and quantity of the exported product.
D. Equivalence shall be checked by using commercial records to verify the quantity of oils used
for blending and, for the purpose of verifying the quality concerned, by comparing the technical
characteristics of samples of the non-Union oil taken when it was entered for the procedure with the
technical characteristics of the samples of the Union oil used taken when the processed product
concerned was processed against the technical characteristics of the samples taken at the time of
actual exportation of the processed product at the point of exit. Samples shall be taken in
accordance with international standards EN ISO 5555 (sampling) and EN ISO 661 (sending of
samples to laboratories and preparation of samples for tests). The analysis shall be carried out with
reference to the parameters in Annex I to Commission Regulation (EEC) No 2568/911
.
(7) Milk and milk products
Recourse to the use of equivalence is permitted under the following conditions:
The weight of each component of milk dry matter, milk fat matter and milk protein of the import
goods shall not exceed the weight of each of these components in the equivalent goods.
However, where the economic value of the goods to be placed under inward processing is
determined by only one or two of the above mentioned components, the weight may be calculated
on the basis of this or these component(s). The authorisation shall specify the details, notably the
reference period for which the total weight has to be calculated. The reference period shall not
exceed 4 months.
The weight of the relevant component(s) of the goods to be placed under inward processing and of
the equivalent goods shall be indicated in the relevant customs declarations and INF, to enable the
customs authorities to control the equivalence on the basis of those elements.
III. Outward processing
The use of equivalent goods is not permitted for goods which are covered by Annex 71-02.
1 OJ L 248, 5.9.1991, p. 1.
49
APPENDIX IX: UCC Articles 85(1) And 86(3)
ARTICLE 85 (1)
General rules for calculating the amount of import or export duty
1. The amount of import or export duty shall be determined on the basis of those rules for
calculation of duty which were applicable to the goods concerned at the time at which the customs
debt in respect of them was incurred.
ARTICLE 86(3)
Special rules for calculating the amount of import duty
3. Where a customs debt is incurred for processed products resulting from the inward processing
procedure, the amount of import duty corresponding to such debt shall, at the request of the
declarant, be determined on the basis of the tariff classification, customs value, quantity, nature and
origin of the goods placed under the inward processing procedure at the time of acceptance of the
customs declaration relating to those goods.
50