EU Territory Goods & Customs

• Goods enter/leave EU territory via maritime, air, road, or rail transport.
• This must occur through customs areas authorized by a member state.
• These authorized areas are called temporary storage facilities.
• Goods are under customs control from this point.
• Failure to present goods leads to charges of smuggling.

Customs Areas

• These spaces are defined as airports, ports, transit terminals, free zones, customs warehouses, and authorized business premises.

Temporary Storage Types

• Two types depend on the goods' status.
• EU goods are for export.
• Non-EU goods are for import.

LAME

• Local Authorized for Export Goods, is private premises authorized for goods awaiting export declaration.
• Entry into these premises is controlled via a Receipt Certificate that is indicated in Box 44 code 1217 of the Single Administrative Document (SAD)/DUA form.

ADT

• Temporary Storage Warehouse, is private premises authorized for goods awaiting import declaration.
• Entry is controlled via a notice to the customs office where the ADT is located.

Public Customs Area

• In public customs areas, distinctions are not based on the assigned space, as temporary storage does not distinguish between export or import.
• Document control is the same for both.
• Every temporary storage area has a code composed of the 4 digits of the customs office location and 6 digits that uniquely identify area.
• The Zaisa-Irún public customs area is coded as 2045IRU001, with 2045 representing the Zaisa-Irún customs office and IRU001 indicating space location.
• The CAU sets a 90-day limit for temporary storage.
• This period begins from the date of export declaration or arrival at the ADT for private premises.
• For public customs areas, the limit is 90 days from entry.
• This period can not be extended.
• Goods must be assigned a customs destination before deadline.
• All goods presented to customs for exit/entry must receive a customs destination.

Customs Destinations

• The Union Customs Code (CAU) classifies them into four categories.
• Introduction to a customs procedure: This is a set of operations to give specific customs destination following the declaration by the party concerned or their representative using the SAD/DUA.
• Re-exportation: applies to non-EU that were temporarily imported or placed in a customs warehouse pending a final destination.
• The formalities for the exit of the goods, including trade policy measures, will be applied.

Abandonment

• Goods are declared abandoned if they exceed the 90-day temporary storage period without destination.
• National guidelines must be followed to make term that aligns with national rules without harming public finances.
• Non-EU goods can be abandoned to the State with customs authorities’ approval.
• Express Abandonment: involves a written waiver of goods to the customs administrator.
• Tacit Abandonment: is inferred from actions indicating intention, such as the death of the consignee, non-compliance with storage deadlines, failure to pay duties, or concealing goods.

Destruction

• Before release, customs services may allow destruction of said goods under their control, with costs borne by the declarant.
• Destruction releases from duty payment but not sanctions.
• Resulting waste must receive a non-EU customs destination.
• Request for destruction must be in writing from the party concerned, who has to communicate how, where, and when to the authorities.

Free Zone Status

• Free zone is no longer a customs destination in the new Customs Code.
• Free zone is now a customs procedure, subject to customs supervision unlike when it was a destination.

Customs Procedures

• All goods entering a customs procedure (except free zones) require a customs declaration.
• This declaration is fulfillment of the SAD/DUA form.
• The consignee expresses intention to include goods under a specific customs procedure.
• Customs procedures include general and special categories.
• If final destination is unknown or goods need transformation, duty payment is suspended.
• Request for authorization through the SAD/DUA form is required.
• Must have customs authorization and a new customs destination request, with tax settlement if applicable.

General Procedures

• Become final, not pending another destination once completed.
• Goods are not subject to customs control as no duty payment is outstanding.

Simplification of Procedures

• Export and import under free practice are concentrated within general procedures.
• Export is the dispatch of goods from the EU to a third country.
• Import under free practice is the entry of goods into the Union Customs Territory (TAU) from a third country.

Special Procedures

• Are used when the procedure is unknown when goods are included or if inclusion in general procedures is not preferred.
• Goods are subject to customs control due to outstanding duties or taxes, which are suspended under these arrangements.
• These encompass transit, warehousing, special destinations for temporary import and final use, and processing (both inward and outward).
• Must request authorization for inclusion in these procedures, which must be granted by the administration.
• Duties must be paid when goods receive a new customs procedure.

Temporary Importation

• It is entry of non-EU goods intended for re-export to their origin country without transformation but for depreciation.
• Exemption from tariff duties can be full or partial.
• For example, 3% of the goods' value per month of stay.
• Term is capped at 24 months.
• It ends when re-export, free practice, or consumption occurs.

Transit Regime

• Is to avoids customs controls within the EU territory.
• Facilitates the movement of goods across the Union.
• Involves a dispatch office and destination office.
• Internal transit: EU goods move from one point to another within the customs territory, and may pass through a third country without altering their status.
• The DUA with T2 indicator is used.
• External transit: non-EU goods can pass through countries within the customs territory without tariffs or trade policy measures, and are subject to providing a guarantee.
• Required documentation is the Export Accompanying Document (EAD) with minimum control.

Unique Administrative Transit Document

• It has the indicator T1 for major control.
• The TIR or ATA carnets facilitate free movement of goods in transport

Customs Warehousing

• Are premises approved by the authorities for storing goods until they receive a final destination.
• These can be public or private.
• Non-EU goods are exempt from import duties and trade policy measures.
• Indirect taxes such as excise duties or VAT do not apply.
• EU goods have domestic indirect taxes reimbursed.
• There is no time limit for non-agriculture goods.
• Permissible activities include sales, conservation, handling, and transfers to other warehouses.
• Goods leaving this arrangement for export, both EU and non-EU, are exported.
• If released for free circulation, tariffs must be settled.
• Storage costs do not contribute to the customs value.

Inward Processing

• It is the temporary import of non-EU goods for processing to make compensatory products for re-export to the country of origin or introduction into an EU customs procedure.
• Requires unavailability of equivalent EU-produced goods or a price difference.
• Non-EU goods are not subject to import duties.
• The customs authority sets a performance coefficient based on the amount of import that is regarded as exported for each unit of product.
• General authorization lasts two years.

Outward Processing

• Is temporary export of EU goods for processing outside.
• Upon return, they are released with full/partial exemption of import duties.
• When exporting these goods to third countries, the same requirements apply as for exporting an EU good.

Prior Authorization

• Both types of processing arrangements require prior authorization before declaration.
• Release will not occur if permission is not granted (within max of 120 days).
• Timing to conduct the transformation will be specified in the approvals.

Free Zone

• The Free zone is also known as a free economic area.
• Goods brought considers as if they are outside the EU customs for tax and trade policy measures.
• Member countries can designate parts of their territory.
• They should define access and exit points.
• Entries/exits are supervised by customs.
• Importers do not need to provide any customs documents to customs at entry.
• However, they must report goods’ destination by providing a copy of the transport document.
• As well, they must register the entry in a computer system.
• No limit to how long it may remain.
• Permitted procedures are inward processing, transformation, destruction, abandonment, and general handling.
• Customs authorities may allow any sort of industrial, commercial, or service sector activity.

End-Use Relief

• Refers to import under free practice where rights are not paid.
• It can also be a reduced rate because of its specific destination.
• Goods stay under customs control until their final usage.
• Goods eligible for this arrangement are listed in the combined nomenclature, determining the clearance.

Authorization for End Use

• Usually occurs at the time of DUA import clearance.
• In exceptional cases, authorization is sought from Department of Customs and Special Taxes (II. EE) with a 120-day resolution.
• Article 163 of the CAU Delegated Regulation allows special procedure use at the customs clearance of goods for specific processing.
• Must complete a series of documents, attach them to clearance applications, and code that application in box 44 of the DUA.
• Authorization for special system utilization will be in the shape of a release of the goods.

Customs Procedures Overview

• The provided material only lists briefly the customs procedures but is expanded up in the Union Customs Code.

Introduction to General Customs Procedure: Export

• Export is defined as the exit of goods originating from the EU destined for a third country.
• Export regime applies to the Peninsula, Balearic Islands, and Canary Islands.
• Exports from Ceuta and Melilla.

Customs Clearance

• Customs clearance is required for all exports.
• Customs services oversee the exported goods.
• Exporters must present a signed export declaration (DUA), along with the commercial invoice, transport document, and other relevant files.
• Customs is primarily concerned with document presentation and processing in export.
• Taxation aspects such as tariffs or domestic indirect taxes (VAT and excise duties) are not the importance.

Fundamental Principle

• All exports operate under commercial freedom.

Single Administrative Document (SAD) for Export

• It is the export document.
• The Department of Customs and Special Taxes publishes a resolution each year, in the Official State Gazette (BOE), and describes how the document should be filled out.

Documents needed for an Declaration

• Copy No. 1: for the dispatch customs office.
• Copy No. 3: for the applicant.
• Copy No. 4: is necessary to prove community status of the goods through an T2LF/T2L document before the office of destination in the Community, Andorra, or San Marion.

Formalized operations for full document

• Definite or temporary export of goods outside the EU customs territory includes sales of fish caught by national vessels, shipping directly without passing through national territory.
• Re-exportation of non-Community goods outside the customs region of the Union.
• Shipping goods from the Peninsula and Balearic Islands to the Canary Islands, etc., that are not included in Directive 2006/112/EC.
• Export of goods from the Peninsula and Balearic Islands or from the Canary Islands to Ceuta and Melilla.
• Export of goods from Ceuta and Melilla.
• Shipping goods from the Canary Islands to the rest of the EU customs territory.
• Converting temporary dispatches/exports into permanent ones.
• Supplying and equipping vessels, aircraft, and seabed exploration platforms.
• Entry of Community goods into a supply warehouse to claim refund.
• Export of EU goods stored in a warehouse other than a customs warehouse, a REF warehouse, or in a free zone.
• Export of EU agricultural goods that were tied to the warehousing scheme.

Codes

• Green codes are for goods that are released.
• Orange and red codes are for goods that the customs face within clearance of goods.

Completing Single Administrative Document (SAD)

• Fill out the document.
• The export declaration must be filed electronically.
• Locate this document by looking in the Official State Gazette in January.
• Those filling it out should be familiar with Annex XII.

Exportation Indicators

• OEA (Authorized Economic Operator) should be listed in the following codes.
  • Y022 - OEA is the exporter/sender.
  • Y023 - OEA is destination.
  • Y024 - OEA is the declarant.
  • Y025 - OEA party representative.
  • Y026 - OEA is the primary liable person.
  • Y027 - OEA is the warehouse keeper.

Indirect Export

• Indirect exports are exports of goods leaving the EU customs area through a customs office other than export customs office.
• For example, export is cleared at the Alicante customs office, but the goods depart from Barcelona airport.
• Also example, departure through another EU country such as the port of Rotterdam.
• Goal to build up a notice system between the custom department of export and departure to let the custom department of export know that the goods of the EU have been created.
• This allows an export control system(ECS).
• It is suggested that they all utilize for indirect exports between customs office between various member countries, so its implementation is optional for indirect national customs.

Process

• The operator makes the export in the regular office of the custom department.
• The system can make a MRN value.
• After the goods have been dispatched, the export's office of the custom department sends a notice to the office of output and expects the goods to be present.

Documentation

• A goods accompany of export notice must create with an office to give to the custom system.
• Along what had arrived to the output location, it can transmit it to the distribution office to tell it that the goods have safely left the Community land.

Export Customs Office

• The export location is the one that gives the export a certified form.
• Person bound to it has to follow whatever procedure has to be present and provide some type of security.

Transit

• Customs acts as starting point that will take request with number #1 which will consider the transport and its accompanying file will be a good copy.
• Must follow two weeks to get done, the person can chose their time too.
• In it the process to complete will have a series of indicators and numbers as followed in file.
• #2 exporter number.
• #3a and #3b file numbers with it.
• #5 the amount of products in file.
• #6 all packages .
• #8 destination.
• #15a destination of travel.
• #17a country to send
• #18 which way the goods got delivered.
• #29 The leaving spot from office of EU.
• #31 size of product.
• #33 amount of products.
• #35 amount of grams.
• #37 what's the file being done
• #38 nets.
• #44 files that will need, numbering and date
• #46 value of items.
• Important that the column 9 should have the code where to deliver the goods at and if have a second spot has to mark again to follow it right.