Goods placed under the customs warehousing procedure can be temporarily moved from a customs warehousing facility. This requires permission in advance from Customs, unless it is due to exceptional circumstances (e.g. a fire or other force majeure situation). The permission can be granted in the customs warehousing authorisation or, if it concerns a single occasion, it can be applied for from the customs office supervising the operational activity.
During the move, the goods can undergo a usual form of handling.
Example: William’s Warehouse has deposited a car into storage. The car has received superficial scratches during the sea voyage. The car cannot be repaired in William’s Warehouse, but Kenny’s Repairs Ltd offers the service needed. William sends an email to the customs office that supervises the operational activity of the warehouse. In the email he states which repairs will be done and were, as well as the dates for when the car will be moved and returned. After receiving a positive reply from Customs, William moves the car to Kenny’s Repairs and makes an entry in the records of the move and the handling. The paintwork is repaired and the car is returned to the warehouse. William enters into the records that the car has returned to the warehouse.
Equivalent goods are Union goods, which are stored instead of the goods placed under the customs warehousing procedure. Equivalent goods must have the same eight-digit CN code, the same commercial quality and the same technical characteristics as the goods which they are replacing. An authorisation to use equivalent goods can be applied for from the Customs Authorisation Centre when applying for the customs warehousing authorisation. Using equivalent goods is restricted, for example, regarding some agricultural products and organically produced goods.
Equivalent goods can be stored together with other Union goods or undeclared goods. Using equivalent goods must not jeopardise the normal functioning of the procedure or customs supervision. Customs may require special procedures for identification of the goods to enable a clear distinction between them. If it is impossible to identify the goods the whole time or if disproportionate costs are involved, then a separation of the goods in the records may be permitted. The records have to be up-to-date all the time.
When equivalent goods are used to replace undeclared goods, this must be entered into the records. The usage does not require any customs formalities. Under the customs warehousing procedure, equivalent goods become undeclared goods and the goods that they are replacing become Union goods. Value added tax upon import must be paid for undeclared goods, which become Union goods based on the use of equivalent goods.
Example: The operator has an authorisation for customs warehousing, which allows the use of equivalent goods. The operator has two customs warehouses if which one is located in Kotka, the other in Rovaniemi. There are 1,000 car tires in the warehouse in Rovaniemi and they have been place under the customs warehousing procedure. The warehouse in Kotka contains 600 tires with Union status (in free circulation). These tires have been entered into the records as equivalent goods. There are also 400 tires placed under the warehousing procedure.
Car tires, warehouse situation 12.4.20XX | Kotka | Rovaniemi | Total |
---|---|---|---|
Under customs warehousing procedure | 400 | 1000 | 1400 |
Union goods, entered into the records as equivalent goods |
600 | 0 | 600 |
Total | 1000 | 1000 | 2000 |
The operator receives an order on 15 April from Russia for 1,000 tires. The tires are delivered on 16 April from the warehouse in Kotka, since it is geographically closest to the delivery address. The 400 tires with status as undeclared goods under customs warehousing procedure are declared for re-exportation. The 600 tires with Unions status are declared for export as equivalent goods. The tires leave the customs territory of the Union on 17 April.
Meanwhile, as the 600 tires used as equivalent goods are placed under the export procedure, a customs import declaration for the tires stored in Rovaniemi is made with procedure code 4071 + the national procedure code 7EM. In this case the Customs system does not collect import duties, only value added tax on import and other possible costs. The decision on release upon import works as a document for the customs warehouse keeper, who uses it to move the 600 car tires from the records of the customs warehouse in Rovaniemi to the Union goods records.
Car tires, warehouse transactions 16 – 17.4.20XX |
Kotka 15.4. | Kotka 16.4. |
Balance Kotka |
Rovaniemi 15.4. | Rovaniemi 16.4. | Balance Rovaniemi |
---|---|---|---|---|---|---|
Under customs warehousing procedure |
400 | -400 | 0 | 1000 | -600 | 400 |
Union goods, entered into the records as equivalent goods | 600 | -600 | 0 | 0 | +600 | 600 |
Total | 1000 | -1000 | 0 | 1000 | 1000 |
Usual forms of handling:
Removing goods temporarily from a customs warehouse:
Authorisation for the use of equivalent goods:
The use of equivalent goods is not authorised: