Authorisation applied for and granted with a customs declaration

Contents:

 

1. Terminology

The terminology is defined based on the instructional viewpoint.

Special use refers to end-use and the temporary admission procedure.

Processing refers to the procedures of inward and outward processing.

In these instructions, agricultural products in Annex 71‒refer to goods under categories 1‒24 of the customs tariff nomenclature.

Main processed product refers to goods whose manufacturing process requires an inward processing authorisation.

Inward processing EX/IM, i.e. so called prior export, always means that equivalent goods were used in the procedure. In this case, Union goods are processed into products that are exported from the EU before non-Union goods are imported there and placed under the inward processing procedure within six month of exportation. The procedure is discharged when the import goods are placed under the inward processing procedure and the status of non-Union goods changes to that of Union goods.

Inward processing IM/EX is the so-called “normal version” of inward processing. First, goods are brought to the customs territory of the Union for processing. When goods are placed under the procedure, they are not subject to import duties, import VAT or other charges. After goods are processed, they can re-exported, placed under a customs procedure (release for free circulation, placing them again under the inward processing procedure, placing them under the temporary admission procedure or the transit procedure), handed over to the state, or destroyed. It is possible to use replacement goods, that is, to process Union goods instead of non-Union goods placed under a procedure. However, this is subject to permission.

Secondary processed products are inevitable by-products resulting from manufacture taking place under the inward processing procedure.

Customs declaration means the act whereby a person indicates in the prescribed form and manner a wish to place goods under a given customs procedure, with an indication, where appropriate, of any specific arrangements to be applied. A customs declaration can be submitted in standard format (in which case, full information content is provided at a single time) or in simplified format (in which case, only a specific part of information content is provided, or the declaration is submitted as an entry into the declarant’s bookkeeping). In certain special situations, a customs declaration can also be given verbally, or with separately determined measures that are regarded as submitting a customs declaration.

Outward processing EX/IM is the so-called normal version of outward processing. First, Union goods are taken outside the customs territory of the Union under the outward processing procedure. Processed products are brought to the customs territory of the Union and released for free circulation using the preferential customs treatment for outward processing.

Outward processing using the standard exchange system involves only repairs of broken products. The standard exchange system allows the replacement of a broken product sent for repair with an equivalent product (use of replacement goods). However, a precisely equivalent product sent for outward processing will not be imported back. For example, the serial number or ID number of the product is different. It is possible to implement the standard exchange system also through prior import, in which case replacement goods can be imported into the Union before broken products are exported from the customs territory of the Union. Broken goods must be exported within two months of the prior import of replacement goods.

An authorisation involving more than one Member State refers to the following situations:

- the customs declaration for placing the goods under the procedure and the customs declaration for discharging the procedure are submitted to different Member States

or

- the location of processing or use is in a Member State other than one to which the customs declaration serving as an application for authorisation is submitted.

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2. Applying for authorisation for processing or special use

Authorisation for processing or special use can be applied for with

  • a standard authorisation procedure (processing and special use)
  • a customs declaration, in which case the following serve as the application for authorisation:
    • standard customs declaration (processing and special use)
    • oral customs declaration (only for temporary admission)
    • measure considered as a customs declaration (only for temporary admission)

When a customs declaration submitted in writing (on a SAD form or electronically) serves as an application for authorisation, it must be submitted in standard format. This means that it must not be submitted in simplified format, as a declaration concerning centralised customs clearance, or as an entry into the declarant’s bookkeeping.

When authorisation for using the procedure is applied for with a customs declaration, authorisation is granted by placing the goods under the customs procedure in question. The authorisation is valid only for the time that it takes to place the goods under the procedure. Once the goods have been placed under the procedure, the time limit for discharging begins.

As a rule, the authorisation can only be granted to a person established in the customs territory of the Union. A natural person is considered established in the customs territory of the Union when their place of residence is inside that territory. A legal person (business) is considered established in the customs territory of the Union, when it has its registered office, central headquarters or a permanent business establishment in the customs territory of the Union. Exceptions to this main rule are explained in these instructions specifically for each procedure.

Regular authorisation for using a special procedure is applied for online in the Authorisation Service

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3. Temporary admission

 

Products under a temporary admission procedure as entirely exempt from customs duty are not subject to import duty or value added tax. Products to be placed under a temporary admission procedure as party exempt from import duty are not yet subject to import duty or value added tax when they are placed under the procedure, but only after the procedure is discharged. Goods to be placed under a temporary admission procedure are only subject to trade policy measures prohibiting the arrival of goods into the customs territory of the Union or their exit from that territory.

In temporary admission, the authorisation holder is a person established outside the customs territory of the Union.

Under most articles, the authorisation holder can also be established in the customs territory of the Union. However, authorisation cannot be granted to a person established in that territory in the following cases: 

  • Means of transport provided for in Article 212 of the Delegated Act (Commission Delegated Act 2015/2446) with certain exceptions provided for in Articles 214-216
  • Personal effects and goods for sports purposes imported by travellers as provided for in DA Article 219
  • Goods for use in frontier zones as provide for in DA Article 224 and paragraph a) of that Article
  • Sound-, image- or data-carrying media and publicity material as provided for in DA Article 225
  • Professional equipment provided for in DA Article 226 (except portable musical instruments imported by travellers)
  • Other goods under DA Article 236 paragraph a).

 Unlike with other procedures, authorisation for temporary admission can be applied for with a customs declaration and granted by releasing the goods under the procedure also when the application for authorisation concerns more than one Member State.

Authorisation for temporary admission cannot be applied for with a customs declaration when

  • the applicant wishes to use equivalent goods in its operations (àregular application for authorisation)
  • the authorisation to be applied for is a retroactive authorisation.

When an application for authorisation can be submitted with a measure that can be considered as providing a customs declaration or with an oral customs declaration, the goods to be placed under temporary admission are not subject to liability guarantee as concerns the import duties (and other duties and fees, when necessary) that are not levied when the goods are placed under temporary admission.

Authorisations applied for with a standard customs declaration and regular authorisations require a liability guarantee, except in the following circumstances:

  • Materials used by airlines, shipping companies, rail companies or providers of postal services in international traffic that must be marked clearly.
  • This concerns packages imported as empty that must bear permanent markings that cannot be detached.
  • The previous holder of the temporary admission authorisation has declared the goods under the temporary admission procedure with an oral customs declaration, or with a measure that can be considered as submitting a customs declaration,
  • and the goods are subsequently placed under the temporary admission procedure for the same purpose. The holder of the procedure can also be a different operator.

As a rule, the time limit for discharging the temporary admission procedure for goods placed under that procedure is at most 24 months. However, this does not mean that a time limit of 24 months for discharging the procedure is granted for each item of goods in every situation. Customs may also prescribe a shorter time limit, as long as it is sufficient for the intended purpose of use.

The following goods are subject to a time limit for discharging which is shorter than the usual 24 months:

  • means of rail transport: 12 months
  • for commercially used means of transport other than rail transport: the time required for carrying out the transport operations;
  • for means of road transport privately used:
    • by students: the period they stay in the customs territory of the Union for the sole purpose of pursuing their studies;
    • by persons fulfilling assignments of a specified duration: the period they stay in the customs territory of the Union for the sole purpose of fulfilling their assignment;
    • in other cases, including saddle or draught animals and the vehicles drawn by them: 6 months
  • for privately used means of air transport: 6 months;
  • for privately used means of sea and inland waterway transport: 18 months;
  • for containers, their equipment and accessories: 12 months.
  • for professional leasing and a related leasing and sub-letting agreement: 6 months, 3 weeks or 8 days
  • goods used in testing and meant to be tested, used in tests, experiments or demonstrations without the purpose of financial gain: 6 months
  • goods meant for events or for sale in specific situations, delivered for inspection by the owner to a person in the Union who is entitled to purchasing the goods after inspection: 6 months
  • animals owned by a person established outside the Union: the minimum time limit of 12 months must be given for discharging the procedure, but it is possible to discharge the procedure before that time expires.

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3.1. Acts deemed to be a customs declaration:

The easiest way to submit a customs declaration that serves as an authorisation application for placing goods under temporary admission is to carry out an act deemed to be a customs declaration.

 The following goods can be placed under the temporary admission procedure with a measure deemed as submitting a customs declaration that also serves as an authorisation application (DA Article 139):

  1. pallets, containers, means of transport and accessories and equipment referred to in Articles 208–216
  1. personal effects and goods for sports purposes referred to in Article 219
  1. welfare material for seafarers used on a vessel engaged in international maritime traffic referred to in Article 220(a)
  1. medical, surgical and laboratory equipment referred to in Article 222
  1. disaster relief material used in connection with measures taken to counter the effects of disasters or similar situations affecting the customs territory of the Union
  1. portable musical instruments temporarily imported by travellers and intended to be used as professional equipment
  1. goods under NATO form 302 or EU form 302.

More information on using the form is in the instructions on Use of form 302 for military purposes.

Situations where a measure regarded as submitting a customs declaration is considered an authorisation application for temporary admission (Commission Delegated Act 2015/2446):

  • going through the green or ‘nothing to declare’ channel in a customs office where the two-channel system is in operation
  • going through a customs office which does not operate the two-channel system
  • affixing a “nothing to declare” sticker or customs declaration disc to the windscreen of passenger vehicles where this possibility is provided for in national provisions
  • the sole act of crossing the frontier of the customs territory of the Union in the following circumstances:
    • exception from the requirement to transport the goods to an appropriate location is based on special circumstances referred to in Article 135(5) of the Union Customs Code
    • when goods are considered as declared for re-export in accordance with DA Article 139(2)
    • when goods are considered as declared for export in accordance with DA Article 140(1)
    • when means of transport referred to in Article 212 are considered as declared for temporary admission in accordance with DA Article 139(1)
    • when non-Union means of transport that meet the conditions in UCC Article 203 are imported to the customs territory of the Union in accordance with DA Article 138(c).

However, the following cannot be placed under the procedure with a measure regarded as submitting a customs declaration:

  • goods under a prohibition or restriction
  • goods under a specific formality as laid down in Union legislation which customs authorities must apply.

However, goods transferred or used under NATO form 302 or EU form 302 comprise an exception.

Please note: Instead of declaration through a de facto measure, Customs may require for goods to be placed under the procedure with a standard customs declaration when the case involves means of transport and their spare parts, accessories or equipment. A standard declaration is also required when customs authorities decide that a serious risk of non-compliance with an obligation accordant with customs legislation may occur.

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3.2. Submitting an oral customs declaration

 

A customs declaration for placing goods under the temporary admission procedure can be submitted orally. An oral customs declaration is considered an authorisation application for temporary admission in the following circumstances (Commission Delegated Act 2015/2446 DA, Article 136(1):

  1. pallets, containers and means of transport, and spare parts, accessories and equipment for those pallets, containers and means of transport, as referred to in Articles 208 to 216
  1. personal effects and goods for sports purposes referred to in Article 219
  1. welfare material for seafarers used on a vessel engaged in international maritime traffic referred to in Article 220(a)
  1. medical, surgical and laboratory equipment referred to in Article 222
  1. animals referred to in Article 223 provided that they are intended for transhumance or grazing or for the performance of work or transport
  1. equipment referred to in Article 224(a)
  1. instruments and apparatus necessary for a doctor to provide assistance for a patient awaiting an organ transplant satisfying the conditions laid down in Article 226(1)
  1. disaster relief material used in connection with measures taken to counter the effects of disasters or similar situations affecting the customs territory of the Union
  2. portable musical instruments temporarily imported by travellers and intended to be used as professional equipment
  3. packings which are imported filled and are intended for re-export, whether empty or filled, bearing the permanent, indelible markings identifying a package imported from outside the customs territory of the Union
  4. radio and television production and broadcasting equipment and vehicles specially adapted for use for the purposes of radio and television production and broadcasting and their equipment, imported by public or private organisations established outside the customs territory of the Union and approved by the customs authorities issuing the authorisation for the temporary admission of such equipment and vehicles
  5. other goods, where this is authorised by the customs authorities.
    • Please note that you can be authorised to provide an oral customs declaration only in exceptional cases.

In all the above situations, goods can be placed under the temporary admission procedure with an oral customs declaration. Note that some cases are of the type referred to above involving goods that can be placed under the temporary admission procedure through an act regarded as a customs declaration. This means that the customer can choose between placing goods under the temporary admission procedure through an act regarded as a customs declaration and providing an oral customs declaration. Sections 5, 6, 7, 10, 11 and 12 concern circumstances where goods cannot be placed under the temporary admission procedure through an act regarded as a customs declaration, which means that the goods must always be placed under the procedure at least through an oral customs declaration or a written customs declaration.

However, to support the oral declaration for temporary admission, customs form 613s/r/e is always required. 

However, the following cannot be placed under the procedure with an oral declaration:

  • goods under a prohibition or restriction
  • goods under a specific formality as laid down in Union legislation which customs authorities must apply.

Please note: Instead of an oral declaration, Customs may require for goods to be placed under the procedure with a standard customs declaration when the case involves means of transport and their spare parts, accessories or equipment. A standard declaration is also required when customs authorities decide that a serious risk of non-compliance with an obligation accordant with customs legislation may occur.

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3.3. Standard written customs declaration

A standard written customs declaration can be submitted on goods when the authorisation application for placing goods under the temporary admission procedure cannot be lodged through a measure regarded as a customs declaration or with an oral customs declaration. In such instances, customs declarations must be supplemented with additional information required for applying the procedure. During the so-called transition period, i.e. until the Customs Clearance Service (UTU) is deployed, additional information must be provided in the Import Declaration Service for Businesses; special procedures (ITU). 

Please note: When goods are imported in special situations with no economic impact in the Union, i.e. when the importer appeals to DA Article 236b “national procedure D28”, customs authorities have the right to disqualify the authorisation application based on a customs declaration, and required for a standard authorisation to be applied. 

 

3.4. Authorisation granted by Customs’ Authorisation Centre

A written authorisation is not required for the temporary admission procedure under any circumstances. If the same type of goods are often placed under the procedure for the same purpose, applying for an authorisation makes it easier to submit a customs declaration concerning the procedure. In such circumstances, it is recommendable to apply for a written authorisation from Customs’ Authorisation Centre via the online Authorisation Service (in Finnish and Swedish)

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4. End-use

Authorisation for placing the goods under an end-use procedure may be applied for with a standard customs declaration by providing additional certain additional information where the applicant intends to wholly assign the goods to their prescribed end-use.

In occasional cases of end-use, where it is considered justified, authorisation may also be granted to a person established outside the customs territory of the Union. In practice, granting an authorisation may to a person established outside the customs territory of the Union can be considered only regarding a private person when the case is not considered being of any great economic importance.

An authorisation concerning end-use cannot be applied for with a customs declaration when

  • the applicant wishes to use equivalent goods in its operations (àstandard application for authorisation)
  • the authorisation to be applied for involves more than one Member State (àstandard authorisation)
  • a retrospective authorisation is applied for, i.e. the goods have either been (incorrectly) placed under another customs procedure, or a customs declaration has not been submitted at all (àstandard application for authorisation)

The time limit for discharging the procedure for end-use goods is to be prescribed as sufficiently long, considering the intended activity.

Usually, 12 months is a sufficiently long time limit for indicating end-use. However, the time limit for discharging the procedure can be at most 36 months, i.e. the general post-clearance period.                                                                    

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5. Inward processing

Products to be placed under the inward processing procedure are not subject to import duties, import VAT or other charges when they are placed under the procedure. The said charges are collected only when the procedure is discharged when the discharging takes place either by releasing the goods placed under the procedure or processed products for free circulation and consumption in the customs territory of the Union. Goods to be placed under the inward processing procedure are only subject to trade policy measures prohibiting the arrival of goods into the customs territory of the Union or their exit from that territory.

Goods subject to 0% import duty can also be placed under the inward processing procedure. The customs procedure can be used because of the delay in value added taxation that is due to importation, or because the goods must be processed so that they meet technical requirements for released into free circulation.

An authorisation application for placing goods under the inward processing procedure can be submitted on a standard customs declaration by providing certain additional information when both of the following requirements are met:

- the goods to be placed under the procedure comprise goods other than those listed in Annex 71-02 of the Delegated Act (agricultural products under customs tariff categories 1-24 cannot be placed under the procedure with an authorisation applied for with a customs declaration), apart from the exception referred to below (see declaration of financial requirements and code 19, XTH, destruction);

- the applicant’s economic conditions are fulfilled.

When the procedure is discharged, customs debt can be incurred either according to UCC Article 85 (i.e. based on factors that apply at the time of debt incurrence such as quantity, value and commodity code), or according to UCC Article 86(3) (i.e. based on factors that apply at the time of placing the goods under the inward processing procedure such as quantity, value and commodity code).

The prerequisite for examining financial requirements is that there is no perceived harm to the essential interests of EU manufacturers. The burden of proof lies with EU manufacturers, i.e. they are to prove their claims should they regard any granted inward processing authorisations as detrimental to their activities.

Authorisation for inward processing can be applied for with a customs declaration when the code for financial requirements is one of the following (in brackets, the numerical value of the code and the corresponding additional statement code):

  1. processing of goods other than those listed in Annex 71-02 (1, XBG)
  2. b) repair (2, XAU)
  3. the processing of goods directly or indirectly put at the disposal of the holder of the authorisation, carried out according to specifications on behalf of a person established outside of the customs territory of the Union, generally against payment of processing costs alone (=processing under contract) (3, XAS)
  4. the processing of goods to ensure their compliance with technical requirements for their release for free circulation (10, XTA)
  5. the processing of goods of a non-commercial nature (for example, goods placed under the procedure by a private person) (11, XAR)
  6.  the processing of goods obtained under a previous authorisation, the issuing of which was subject to an examination of the economic conditions (12, XAV)
  7. the processing of solid and fluid fractions of palm oil, coconut oil, fluid fractions of coconut oil, palm kernel oil, fluid fractions of palm kernel oil, babassu oil or castor oil into products which are not destined for the food sector (13, XTB)
  8.  the processing into products to be incorporated in or used for civil aircraft for which an airworthiness certificate has been issued, i.e. an EASA 1 form or a corresponding certificate referred to in Article 2 of Council Regulation (EU) 2018/581 (14, XTC)
  9. the processing into products benefitting from the autonomous suspension of import duty on certain weapons and military equipment in accordance with Council Regulation (EC) No 150/2003 (2) (15, XTD)
  10. the processing of goods into samples (16, XTE)
  11. the processing of any electronic type of components, parts, assemblies or any other materials into information technology products (17, XTF)
  12. the processing of goods falling within CN codes 2707 or 2710 into products falling within CN codes 2707, 2710 or 2902 (18, XTG)
  13. the reduction to waste and scrap, destruction, recovery of parts or components (19, XTH)
  14. usual forms of handling referred to in Article 220 of the Code (21, XAT)
  15. inward processing (22, XTI) when the aggregate value of goods to be placed under the inward processing procedure per applicant and calendar year for each eight-digit CN code does not exceed EUR 150 000 with regard to goods which are covered by Annex 71-02 and EUR 300 000 for other goods, except where the goods intended to be placed under the inward-processing procedure would be subject to a provisional or definitive anti-dumping duty, a countervailing duty, a safeguard measure or an additional duty resulting from a suspension of concessions if they were declared for release for free circulation.

As a rule, the codes listed above cannot be used in an authorisation to be applied for with a customs declaration if the goods to be placed under the procedure are agricultural products referred to in Annex 71-02, even when they are subject to previously detailed processing (e.g. paragraph m; processing of goods into samples). An exception to this is code 19, XTH (destruction) which can also be used for products for agricultural products referred to in Annex 71-02 in exceptional and appropriately justified conditions when the customs value of the goods does not exceed 150 000 €.

For example, a consignment of bananas worth under 150 000 euros that has rotted because of a broken heating system in a customs warehouse can be placed under the inward processing procedure for destruction through a so-called simplified authorisation procedure.  Heating system breakdowns are considered exceptional conditions that can be appropriately justified by an operator.

On the other hand, it would be prohibited for an operator to purposefully purchase a rotten consignment of bananas worth under 150 000 euros from a third country, and to place it under the inward processing procedure through a so-called simplified authorisation procedure. In this case, the situation would not be exceptional, as the business activity of the operator would be based on the disposal of bio-degradable waste. In this situation, the standard authorisation procedure is to be used.

Sub-paragraphs d, e, f and q can only concern agricultural products, which means that they cannot be cited for an authorisation to be applied for with a customs declaration. Therefore, the said sub-paragraphs are not included in the above list (sub-paragraphs are listed in DA 2015/2446 Article 167).

The selected customs debt article and the intended processing activity affect the weighing of financial requirements as shown in the two charts below.

  • The customer includes additional code XTK in their customs declaration, indicating that they wish to apply UCC Article 86(3) in determining any possible incurred customs debt.

Example 1: The customer has selected UCC Article 86(3) for possible customs debt in the authorisation application. There is no proof of any detriment to the essential interests of EU manufacturers. As the financial requirements code, the customer indicates sub-paragraph b) “repair” (2) in accordance with DA Article 167(1).  à Financial requirements are met, which means that an authorisation can be granted.

Example 2: The customer has selected UCC Article 86(3) for possible customs debt in the authorisation application. There is proof of detriment to the essential interests of EU manufacturers. As the financial requirements code, the customer indicates sub-paragraph b) “repair” (2) in accordance with DA Article 167(1). Financial requirements are met based on sub-paragraph b), meaning that the case falls under sub-paragraphs a‒f of DA Article 167(1) à Financial requirements are met, and an authorisation can be granted.

Example 3: The customer has selected UCC Article 86(3) for possible customs debt in the authorisation application. As the financial requirements code in the authorisation application, the customer indicates k) “the processing into products to be incorporated in or used for civil aircraft for which an airworthiness certificate has been issued, i.e. an EASA 1 form or a corresponding certificate referred to in Article 2 of Council Regulation (EU) 2018/581” (14). There is no proof of any detriment to the essential interests of EU manufacturers. à Financial requirements are met, which means that an authorisation can be granted.

Example 4: The customer has selected UCC Article 86(3) for possible customs debt in the authorisation application. There is proof of detriment to the essential interests of Union manufacturers. As the financial requirements code in the authorisation application, the customer has indicated k) “the processing into products to be incorporated in or used for civil aircraft for which an airworthiness certificate has been issued, i.e. an EASA 1 form or a corresponding certificate referred to in Article 2 of Council Regulation (EU) 2018/581” (14). The case does not fall under sub-paragraphs a-f of DA Article 167(1). à Financial requirements must be examined. An authorisation cannot be granted without examining the financial requirements.

When UCC Article 86(3) is selected as the customs debt article and there is no proof of detriment to the essential interests of Union manufacturers, the financial requirements for the authorisation application are always regarded as being met. The financial requirements code in the authorisation application is significant only if there is a perceived detriment to the essential interests of EU manufacturers. The permanent prerequisite is that there is no perceived harm to the essential interests of EU manufacturers.

  • The customer includes additional code XTJ in their customs declaration, indicating that they wish to apply UCC Article 85 in determining any possible incurred customs debt.

Example 1: The customer has selected UCC Article 85 for possible customs debt in the authorisation application. The goods to be placed under the procedure are not subject to any trade policy measures or agricultural measures. There is no proof of any detriment to the essential interests of EU manufacturers. à Financial requirements are met, which means that an authorisation can be granted.

Example 2: The customer has selected UCC Article 85 for possible customs debt in the authorisation application. The goods to be placed under the procedure are not subject to any trade policy measures or agricultural measures. However, there is proof of detriment to the essential interests of EU manufacturers. As the financial requirements code, the customer indicates sub-paragraph b) “repair” (2) in accordance with DA Article 167(1). This means that the case does not fall under sub-paragraphs g–s of DA Article 167(1). à Financial requirements are not met, which means that an authorisation cannot be granted.

Example 3: The customer has selected UCC Article 85 for possible customs debt in the authorisation application. The goods to be placed under the procedure are subject to trade policy measures or agricultural measures. As the financial requirements code, the customer indicates sub-paragraph b) “repair” (2) in accordance with DA Article 167(1). This means that the case does not fall under sub-paragraphs h), i), m) or p) of DA Article 167(1). à Financial requirements are not met, which means that an authorisation cannot be granted.

Example 4: The customer has selected UCC Article 85 for possible customs debt in the authorisation application. The goods to be placed under the procedure are subject to trade policy measures or agricultural measures. As the financial requirements code, the customer indicates sub-paragraph b) “the reduction to waste and scrap, destruction, recovery of parts or components” (19) in accordance with DA Article 167(1). This means that the case falls under sub-paragraphs h), i), m) or p) of DA Article 167(1). à Financial requirements are met, which means that an authorisation can be granted.

If an authorisation cannot be granted with a customs declaration because of the need to examine financial requirements, the customer will be notified of this (DA Article 163(2)(f)). The customer can contact the Customs Authorisation Centre in order to apply for a standard authorisation so that financial requirements can be examined at the EU level.

An authorisation concerning inward processing cannot be applied for when

  1. the applicant wishes to use equivalent goods in its operations (-> standard application for authorisation) In other words, inward processing EX/IM is never possible based on an application for authorisation done on a customs declaration.
  2. the authorisation to be applied for involves more than one Member State (-> standard authorisation)
  3. a retrospective authorisation is applied for, i.e. the goods have either been placed under another customs procedure (incorrectly) or a customs declaration has not been submitted at all (-> standard authorisation) 

The time limit for discharging the procedure for goods placed under the inward processing procedure IM/EX must be sufficient with a view to the intended activity. Usually, 12 months is a sufficiently long time limit for carrying out processing, as the inward processing procedure is not intended to serve as a warehousing procedure for goods placed under the procedure or for manufactured products. However, the time limit for discharging the procedure cannot usually exceed 36 months, i.e. the general post-clearance period.

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6. Outward processing

The import duty on the products that will be manufactured of the products that are placed under the outward processing procedure (procedure code 21) must be higher than zero when they are imported into the Union. For products with 0 % import duty (due to their origin, tariff classification or other such circumstances), temporary admission can be applied instead of outward processing when the case involves outward processing under procedure code 22 which is of a type other than that prescribed by the Union Customs Code. Procedure 22 is not subject to authorisation, which makes it easier for the customer to use in comparison to procedure 21.

An application for authorisation to place goods under outward processing can be submitted on a standard customs declaration by providing specific additional information when the goods to be placed under the procedure are not those listed in Annex 71-02. Agricultural products from customs tariff chapters 1–24 cannot therefore be placed under the procedure with an authorisation applied for with a customs declaration.

When the outward processing procedure is used for repair purposes, the products under outward processing must be repairable. The procedure cannot be used for enhancing the technical performance of goods.

An authorisation concerning inward processing cannot be applied for with a customs declaration when
 

  • 1)    the intention is to apply the use of corresponding goods, i.e. the new customs procedure IM/EX ( standard authorisation).
  • 2)    the authorisation to be applied for involves more than one Member State (standard authorisation)


Authorisation for outward processing cannot usually be applied for with a customs declaration when a retrospective authorisation is applied for, i.e. the goods have either been (incorrectly) placed under another customs procedure, or a customs declaration has not been submitted at all (->standard application for authorisation). 

Only in the following exceptional circumstances can a retrospective authorisation be applied for with a customs declaration upon re-importation:

1)    Authorisation for the outward processing procedure has been granted either as a standard authorisation or as an authorisation applied for with a customs declaration, and the replacement products are to be released into free circulation through the standard exchange system not covered by the authorisation. 
In most cases, this involves a situation where a company or a natural person has sent a broken product for outward processing either with a standard authorisation or with an authorisation applied for with a customs declaration. 

Example: A repairer in a third country has only concluded in that country that a sent broken product cannot or will not be repaired, and decides to send a replacement product, i.e. the repairer does not return the exact product in a state of repair. If the outward processing authorisation does not allow the standard exchange system, i.e. the use of replacement products, it must however be accepted upon re-importation by approving the customs declaration, which in a way constitutes granting authorisation to use the standard exchange system. In this situation, it is regarded that the holder of the outward processing procedure had no say in the emerged need to use the standard exchange system, and could not have prepared for that event by applying for an authorisation that would have covered the standard exchange system.

2)    Processed products are to be released into free circulation after outward processing, and the processing concerns goods of non-commercial nature.
Most cases of this kind involve operators who are natural persons.

Example: A natural person has sent a watch for repair to a third country, unaware that they should have submitted a customs declaration for outward processing already upon exportation for seeking authorisation to use the outward processing procedure, in which case they would have benefited from a more advantageous calculation of import duties.

The time limit for discharging the procedure for goods placed under the outward processing procedure EX/IM must be sufficient with a view to the intended activity. 
Usually, 12 months is sufficient for carrying out processing, but for substantiated reasons a longer time limit for discharging the procedure can be applied.
 
When the case involves the standard exchange system for outward processing, the time limit for discharging the procedure must be sufficient with a view to the intended exchange measure. When the standard exchange system is implemented with prior import (procedure 48xx), any defective goods must be imported within two months of the date when the replacement products were imported.
 
The maximum time limit for discharging the procedure for goods under the outward processing procedure IM/EX is six months, as confirmed in the standard authorisation concerning the procedure.

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