Warehousing
Customs Code
SPECIAL PROCEDURES
CHAPTER 1
General provisions
Article 210
Scope
Goods may be placed under any of the following categories of special procedures:
(a)
transit, which shall comprise external and internal transit;
(b)
storage, which shall comprise customs warehousing and free zones;
(c)
specific use, which shall comprise temporary admission and end-use;
(d)
processing, which shall comprise inward and outward processing.
Article 211
Authorisation
1. An authorisation from the customs authorities shall be required for the following:
(a)
the use of the inward or outward processing procedure, the temporary admission procedure or the end-use procedure;
(b)
the operation of storage facilities for the customs warehousing of goods, except where the storage facility operator is the customs authority itself.
The conditions under which the use of one or more of the procedures referred to in the first subparagraph or the operation of storage facilities is permitted shall be set out in the authorisation.
2. The customs authorities shall grant an authorisation with retroactive effect, where all of the following conditions are fulfilled:
(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 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;
(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.
Customs authorities may grant an authorisation with retroactive effect also where the goods which were placed under a customs procedure are no longer available at the time when the application for such authorisation was accepted.
3. Except where otherwise provided, the authorisation referred to in paragraph 1 shall be granted only to persons who satisfy all of the following conditions:
(a)
they are established in the customs territory of the Union;
(b)
they provide the necessary assurance of the proper conduct of the operations; an authorised economic operator for customs simplifications shall be deemed to fulfil this condition, insofar as the activity pertaining to the special procedure concerned is taken into account in the authorisation referred to in point (a) of Article 38(2);
(c)
where a customs debt or other charges may be incurred for goods placed under a special procedure, they provide a guarantee in accordance with Article 89;
(d)
in the case of the temporary admission or inward processing procedure, they use the goods or arrange for their use or they carry out processing operations on the goods or arrange for them to be carried out, respectively.
4. Except where otherwise provided and in addition to paragraph 3, the authorisation referred to in paragraph 1 shall be granted only where all of the following conditions are fulfilled:
(a)
the customs authorities are able to exercise customs supervision without having to introduce administrative arrangements disproportionate to the economic needs involved;
(b)
the essential interests of Union producers would not be adversely affected by an authorisation for a processing procedure (economic conditions).
5. The essential interests of Union producers shall be deemed not to be adversely affected, as referred to in point (b) of paragraph 4, except where evidence to the contrary exists or where the economic conditions are deemed to be fulfilled.
6. Where evidence exists that the essential interests of Union producers are likely to be adversely affected, an examination of the economic conditions shall take place at Union level.
Article 214
Records
1. Except for the transit procedure, or where otherwise provided, the holder of the authorisation, the holder of the procedure, and all persons carrying on an activity involving the storage, working or processing of goods, or the sale or purchase of goods in free zones, shall keep appropriate records in a form approved by the customs authorities.
The records shall contain the information and the particulars which enable the customs authorities to supervise the procedure concerned, in particular with regard to identification of the goods placed under that procedure, their customs status and their movements.
2. An authorised economic operator for customs simplifications shall be deemed to comply with the obligation laid down in paragraph 1 insofar as his or her records are appropriate for the purpose of the special procedure concerned.
Article 215
Discharge of a special procedure
1. In cases other than the transit procedure and without prejudice to Article 254, a special procedure shall be discharged when the goods placed under the procedure, or the processed products, are placed under a subsequent customs procedure, have been taken out of the customs territory of the Union, or have been destroyed with no waste remaining, or are abandoned to the State in accordance with Article 199.
2. The transit procedure shall be discharged by the customs authorities when they are in a position to establish, on the basis of a comparison of the data available to the customs office of departure and those available to the customs office of destination, that the procedure has ended correctly.
3. The customs authorities shall take all the measures necessary to regularise the situation of the goods in respect of which a procedure has not been discharged under the conditions prescribed.
4. The discharge of the procedure shall take place within a certain time-limit, unless otherwise provided.
Article 218
Transfer of rights and obligations
The rights and obligations of the holder of a procedure with regard to goods which have been placed under a special procedure other than transit may be fully or partially transferred to another person who fulfils the conditions laid down for the procedure concerned.
Article 219
Movement of goods
In specific cases, goods placed under a special procedure other than transit or in a free zone may be moved between different places in the customs territory of the Union.
Article 220
Usual forms of handling
Goods placed under customs warehousing or a processing procedure or in a free zone may undergo usual forms of handling intended to preserve them, improve their appearance or marketable quality or prepare them for distribution or resale.
Article 221
Delegation of power
The Commission shall be empowered to adopt delegated acts in accordance with Article 284:
(a)
laying down the cases and the conditions for the movement of goods placed under a special procedure other than transit or in a free zone in accordance with Article 219;
(b)
determining the usual forms of handling for goods placed under customs warehousing or a processing procedure or in a free zone as referred to in Article 220.
Article 223
Equivalent goods
1. Equivalent goods shall consist in Union goods which are stored, used or processed instead of the goods placed under a special procedure.
Under the outward processing procedure, equivalent goods shall consist in non-Union goods which are processed instead of Union goods placed under the outward processing procedure.
Except where otherwise provided, equivalent goods shall have the same eight-digit Combined Nomenclature code, the same commercial quality and the same technical characteristics as the goods which they are replacing.
2. The customs authorities shall, upon application, authorise the following, provided that the proper conduct of the procedure, in particular as regards customs supervision, is ensured:
(a)
the use of equivalent goods under customs warehousing, free zones, end-use and a processing procedure;
(b)
the use of equivalent goods under the temporary admission procedure, in specific cases;
(c)
in the case of the inward processing procedure, the export of processed products obtained from equivalent goods before the import of the goods they are replacing;
(d)
in the case of the outward processing procedure, the import of processed products obtained from equivalent goods before the export of the goods they are replacing.
An authorised economic operator for customs simplifications shall be deemed to fulfil the condition that the proper conduct of the procedure is ensured, insofar as the activity pertaining to the use of equivalent goods for the procedure concerned is taken into account in the authorisation referred to in point (a) of Article 38(2).
3. The use of equivalent goods shall not be authorised in any of the following cases:
(a)
where only usual forms of handling as defined in Article 220 are carried out under the inward processing procedure;
(b)
where a prohibition of drawback of, or exemption from, import duty applies to non-originating goods used in the manufacture of processed products under the inward processing procedure, for which a proof of origin is issued or made out in the framework of a preferential arrangement between the Union and certain countries or territories outside the customs territory of the Union or groups of such countries or territories;
(c)
where it would lead to an unjustified import duty advantage or where provided for in Union legislation.
4. In the case referred to in point (c) of paragraph 2, and where the processed products would be liable to export duty if they were not being exported in the context of the inward processing procedure, the holder of the authorisation shall provide a guarantee to ensure payment of the export duty should the non-Union goods not be imported within the period referred to in Article 257(3).
Storage
Section 1
Common provisions
Article 237
Scope
1. Under a storage procedure, non-Union goods may be stored in the customs territory of the Union without being subject to any of the following:
(a)
import duty;
(b)
other charges as provided for under other relevant provisions in force;
(c)
commercial policy measures, insofar as they do not prohibit the entry or exit of goods into or from the customs territory of the Union.
2. Union goods may be placed under the customs warehousing or free zone procedure in accordance with Union legislation governing specific fields, or in order to benefit from a decision granting repayment or remission of import duty.
3. The customs authorities may, where an economic need exists and customs supervision will not be adversely affected, authorise the storage of Union goods in a storage facility for customs warehousing. Those goods shall not be regarded as being under the customs warehousing procedure.
Article 238
Duration of a storage procedure
1. There shall be no limit to the length of time goods may remain under a storage procedure.
2. In exceptional circumstances, the customs authorities may set a time-limit by which a storage procedure must be discharged in particular where the type and nature of the goods may, in the case of long-term storage, pose a threat to human, animal or plant health or to the environment.
Customs warehousing
Article 240
Storage in customs warehouses
1. Under the customs warehousing procedure non-Union goods may be stored in premises or any other location authorised for that procedure by the customs authorities and under customs supervision (‘customs warehouses’).
2. Customs warehouses may be available for use by any person for the customs warehousing of goods (‘public customs warehouse’), or for the storage of goods by the holder of an authorisation for customs warehousing (‘private customs warehouse’).
3. Goods placed under the customs warehousing procedure may be temporarily removed from the customs warehouse. Such removal shall, except in case of force majeure, be authorised in advance by the customs authorities.
Article 241
Processing
1. The customs authorities may, where an economic need exists and customs supervision is not adversely affected, authorise the processing of goods under the inward processing or end-use procedure to take place in a customs warehouse, subject to the conditions provided for by those procedures.
2 The goods referred to in paragraph 1 shall not be regarded as being under the customs warehousing procedure.
Article 242
Responsibilities of the holder of the authorisation or procedure
1. The holder of the authorisation and the holder of the procedure shall be responsible for the following:
(a)
ensuring that goods under the customs warehousing procedure are not removed from customs supervision; and
(b)
fulfilling the obligations arising from the storage of goods covered by the customs warehousing procedure.
2. By way of derogation from paragraph 1, where the authorisation concerns a public customs warehouse, it may provide that the responsibilities referred to in points (a) or (b) of paragraph 1 devolve exclusively upon the holder of the procedure.
3. The holder of the procedure shall be responsible for fulfilling the obligations arising from the placing of the goods under the customs warehousing procedure.
Section 3
Free zones
Article 243
Designation of free zones
1. Member States may designate parts of the customs territory of the Union as free zones.
For each free zone the Member State shall determine the area covered and define the entry and exit points.
2. Member States shall communicate to the Commission information on their free zones which are in operation.
3. Free zones shall be enclosed.
The perimeter and the entry and exit points of the area of free zones shall be subject to customs supervision.
4. Persons, goods and means of transport entering or leaving free zones may be subject to customs controls.
Article 244
Buildings and activities in free zones
1. The construction of any building in a free zone shall require the prior approval of the customs authorities.
2. Subject to the customs legislation, any industrial, commercial or service activity shall be permitted in a free zone. The carrying on of such activities shall be subject to notification, in advance, to the customs authorities.
3. The customs authorities may impose prohibitions or restrictions on the activities referred to in paragraph 2, having regard to the nature of the goods in question, or the requirements of customs supervision, or security and safety requirements.
4. The customs authorities may prohibit persons who do not provide the necessary assurance of compliance with the customs provisions from carrying on an activity in a free zone.
Article 245
Presentation of goods and their placing under the procedure
1. Goods brought into a free zone shall be presented to customs and undergo the prescribed customs formalities in any of the following cases:
(a)
where they are brought into the free zone directly from outside the customs territory of the Union;
(b)
where they have been placed under a customs procedure which is ended or discharged when they are placed under the free zone procedure;
(c)
where they are placed under the free zone procedure in order to benefit from a decision granting repayment or remission of import duty;
(d)
where legislation other than the customs legislation provides for such formalities.
2. Goods brought into a free zone in circumstances other than those covered by paragraph 1 shall not be presented to customs.
3. Without prejudice to Article 246, goods brought into a free zone are deemed to be placed under the free zone procedure:
(a)
at the moment of their entry into a free zone, unless they have already been placed under another customs procedure; or
(b)
at the moment when a transit procedure is ended, unless they are immediately placed under a subsequent customs procedure.
Article 246
Union goods in free zones
1. Union goods may be entered, stored, moved, used, processed or consumed in a free zone. In such cases the goods shall not be regarded as being under the free zone procedure.
2. Upon application by the person concerned, the customs authorities shall establish the customs status as Union goods of any of the following goods:
(a)
Union goods which enter a free zone;
(b)
Union goods which have undergone processing operations within a free zone;
(c)
goods released for free circulation within a free zone.
Article 247
Non-Union goods in free zones
1. Non-Union goods may, while they remain in a free zone, be released for free circulation or be placed under the inward processing, temporary admission or end-use procedure, under the conditions laid down for those procedures.
In such cases the goods shall not be regarded as being under the free zone procedure.
2. Without prejudice to the provisions applicable to supplies or to victualling storage, where the procedure concerned so provides, paragraph 1 shall not preclude the use or consumption of goods of which the release for free circulation or temporary admission would not entail application of import duty or measures laid down under the common agricultural or commercial policies.
In the case of such use or consumption, no customs declaration for the release for free circulation or temporary admission procedure shall be required.
Such declaration shall, however, be required if such goods are subject to a tariff quota or ceiling.
Article 248
Taking goods out of a free zone
1. Without prejudice to legislation in fields other than customs, goods in a free zone may be exported or re-exported from the customs territory of the Union, or brought into another part of the customs territory of the Union.
2. Articles 134 to 149 shall apply to goods taken out of a free zone into other parts of the customs territory of the Union.
Article 249
Customs status
Where goods are taken out of a free zone into another part of the customs territory of the Union or placed under a customs procedure, they shall be regarded as non-Union goods unless their customs status as Union goods has been proven.
However, for the purposes of applying export duty and export licences or export control measures laid down under the common agricultural or commercial policies, such goods shall be regarded as Union goods, unless it is established that they do not have the customs status of Union goods.