Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code

The first sub-paragraph shall apply only provided that the conditions laid down in Article 55(2)(a), (c) and (d) have been fulfilled.

Article 45

Sufficiently worked or processed products

(Article 64(3) of the Code)

Article 46

Averages

(Article 64(3) of the Code)

However, where the relevant rule is based on compliance with a maximum content of non-originating materials, in order to take into account fluctuations in costs and currency rates, the value of the non-originating materials may be calculated on an average basis as set out in paragraph 2.

Article 47

Insufficient working or processing

(Article 64(3) of the Code)

• (a) preserving operations to ensure that the products remain in good condition during transport and storage;

• (b) breaking-up and assembly of packages;

• (c) washing, cleaning; removal of dust, oxide, oil, paint or other coverings;

• (d) ironing or pressing of textiles and textile articles;

• (e) simple painting and polishing operations;

• (f) husking and partial or total milling of rice; polishing and glazing of cereals and rice;

• (g) operations to colour or flavour sugar or form sugar lumps; partial or total milling of crystal sugar;

• (h) peeling, stoning and shelling, of fruits, nuts and vegetables;

• (i) sharpening, simple grinding or simple cutting;

• (j) sifting, screening, sorting, classifying, grading, matching (including the making-up of sets of articles);

• (k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;

• (l) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;

• (m) simple mixing of products, whether or not of different kinds; mixing of sugar with any material;

• (n) simple addition of water or dilution or dehydration or denaturation of products;

• (o) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;

• (p) slaughter of animals ;

• (q) a combination of two or more of the operations specified in points (a) to (p).

Article 48

General tolerance

(Article 64(3) of the Code)

• (a) 15 % of the weight of the product for products falling within Chapters 2 and 4 to 24 of the Harmonized System, other than processed fishery products of Chapter 16;

• (b) 15 % of the ex-works price of the product for other products, except for products falling within Chapters 50 to 63 of the Harmonized System, for which the tolerances mentioned in Notes 6 and 7 of Part I of Annex 22-03, shall apply.

Article 49

Unit of qualification

(Article 64(3) of the Code)

Article 50

Accessories, spare parts and tools

(Article 64(3) of the Code)

Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle which are part of the normal equipment and included in the ex-works price thereof, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 51

Sets

(Article 64(3) of the Code)

Sets, as defined in General Interpretative rule 3(b) of the Harmonized System, shall be regarded as originating when all the component products are originating products.

When a set is composed of originating and non-originating products, the set as a whole shall however be regarded as originating, provided that the value of the non-originating products does not exceed 15 % of the ex-works price of the set.

Article 52

Neutral elements

(Article 64(3) of the Code)

In order to determine whether a product is an originating product, no account shall be taken of the origin of the following which might be used in its manufacture:

• (a) energy and fuel;

• (b) plant and equipment;

• (c) machines and tools;

• (d) any other goods which do not enter, and which are not intended to enter, into the final composition of the product.

Subsection 3 Rules on cumulation and management of stocks of materials applicable within the framework of the GSP of the Union

Article 53

Bilateral cumulation

(Article 64(3) of the Code)

Bilateral cumulation shall allow products originating in the Union to be considered as materials originating in a beneficiary country when incorporated into a product manufactured in that country, provided that the working or processing carried out there goes beyond the operations described in Article 47(1).

Articles 41 to 52 of this Regulation and Article 108 of Implementing Regulation (EU) 2015/2447 shall apply mutatis mutandis to exports from the Union to a beneficiary country for the purposes of bilateral cumulation.

Article 54

Cumulation with Norway, Switzerland or Turkey

(Article 64(3) of the Code)

Article 55

Regional cumulation

(Article 64(3) of the Code)

• (a) group I: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar/Burma, Philippines, Thailand, Vietnam;

• (b) group II: Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Peru, Venezuela;

• (c) group III: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka;

• (d) group IV: Argentina, Brazil, Paraguay and Uruguay.

• (a) the countries involved in the cumulation are, at the time of exportation of the product to the Union, beneficiary countries for which the preferential arrangements have not been temporarily withdrawn in accordance with Regulation (EU) No 978/2012;

• (b) for the purpose of regional cumulation between the countries of a regional group the rules of origin laid down in Subsection 2 apply;

• (c) the countries of the regional group have undertaken:
• (i) to comply or ensure compliance with this subsection, and
• (ii) to provide the administrative cooperation necessary to ensure the correct implementation of this subsection both with regard to the Union and between themselves;

• (d) the undertakings referred to in point (c) have been notified to the Commission by the Secretariat of the regional group concerned or another competent joint body representing all the members of the group in question.

For the purposes of point (b), where the qualifying operation laid down in Part II of Annex 22-03 is not the same for all countries involved in cumulation, the origin of products exported from one country to another country of the regional group for the purpose of regional cumulation shall be determined on the basis of the rule which would apply if the products were being exported to the Union.

Where countries in a regional group have already complied with points (c) and (d) of the first subparagraph before 1 January 2011, a new undertaking shall not be required.

• (a) the tariff preference applicable in the Union is not the same for all the countries involved in the cumulation; and

• (b) the materials concerned would benefit, through cumulation, from a tariff treatment more favourable than the one they would benefit from if directly exported to the Union.

Where the condition laid down in the first subparagraph is not fulfilled, the country to be stated as country of origin on the proof of origin issued or made out for the purposes of exporting the products to the Union shall be the country of the regional group where the highest share of the value of the materials used in the manufacture of the final product originates.

• (a) the conditions laid down in paragraph 2(a) and (b) are met; and

• (b) the countries to be involved in such regional cumulation have undertaken and jointly notified to the Commission their undertaking:
• (i) to comply or ensure compliance with this Subsection, Subsection 2 and all other provisions concerning the implementation of the rules of origin; and
• (ii) to provide the administrative cooperation necessary to ensure the correct implementation of this Subsection and Subsection 2 both with regard to the Union and between themselves.

The request referred to in the first sub-paragraph shall be supported with evidence that the conditions laid down in that sub-paragraph are met. It shall be addressed to the Commission. The Commission will decide on the request taking into account all the elements related to the cumulation deemed relevant, including the materials to be cumulated.

Where the condition laid down in the first subparagraph is not fulfilled, the country to be stated as country of origin on the proof of origin for the purposes of exporting the products to the Union shall be the country participating in the cumulation where the highest share of the value of the materials used in the manufacture of the final product originates.

Article 56

Extended cumulation

(Article 64(3) of the Code)

• (a) the countries involved in the cumulation have undertaken to comply or ensure compliance with this Subsection, Subsection 2 and all other provisions concerning the implementation of the rules of origin, and to provide the administrative co-operation necessary to ensure the correct implementation of this subsection and Subsection 2 both with regard to the Union and also between themselves;

• (b) the undertaking referred to in point (a) has been notified to the Commission by the beneficiary country concerned.

The request referred to in the first sub-paragraph shall contain a list of the materials concerned by the cumulation and shall be supported with evidence that the conditions laid down in points (a) and (b) of the first sub-paragraph are met. It shall be addressed to the Commission. Where the materials concerned change, another request shall be submitted.

Materials falling within Chapters 1 to 24 of the Harmonized System shall be excluded from extended cumulation.

In order for the obtained product to acquire originating status, it shall not be necessary that the materials originating in a country with which the Union has a free-trade agreement and used in a beneficiary country in the manufacture of the product to be exported to the Union have undergone sufficient working or processing, provided that the working or processing carried out in the beneficiary country concerned goes beyond the operations described in Article 47(1).

Article 57

Application of bilateral cumulation or cumulation with Norway, Switzerland or Turkey in combination with regional cumulation

(Article 64(3) of the Code)

Where bilateral cumulation or cumulation with Norway, Switzerland or Turkey is used in combination with regional cumulation, the product obtained shall acquire the origin of one of the countries of the regional group concerned, determined in accordance with the first and the second sub-paragraphs of Article 55(4) or, where appropriate, with the first and the second sub-paragraphs of Article 55(6).

Article 58

Accounting segregation of Union exporters’ stocks of materials

(Article 64(3) of the Code)

The authorisation shall be granted only if by use of the method referred to in paragraph 1 it can be ensured that, at any time, the quantity of products obtained which could be considered as ‘originating in the Union’ is the same as the number that would have been obtained by using a method of physical segregation of the stocks.

If authorised, the method shall be applied and the application thereof shall be recorded on the basis of the general accounting principles applicable in the Union.

They may withdraw the authorisation in the following cases:

• (a) the holder makes improper use of the authorisation in any manner whatsoever, or

• (b) the holder fails to fulfil any of the other conditions laid down in this subsection, Subsection 2 and all other provisions concerning the implementation of the rules of origin.

Subsection 4 Definition of the concept of originating products applicable within the framework of the rules of origin for the purposes of preferential tariff measures adopted unilaterally by the Union for certain countries or territories

Article 59

General requirements

(Article 64(3) of the Code)

• (a) products wholly obtained in that beneficiary country or territory within the meaning of Article 60;

• (b) products obtained in that beneficiary country or territory, in the manufacture of which products other than those referred to in point (a) are used, provided that those products have undergone sufficient working or processing within the meaning of Article 61.

Article 60

Wholly obtained products

(Article 64(3) of the Code)

• (a) mineral products extracted from its soil or from its seabed;

• (b) vegetable products harvested there;

• (c) live animals born and raised there;

• (d) products from live animals raised there;

• (e) products from slaughtered animals born and raised there;

• (f) products obtained by hunting or fishing conducted there;

• (g) products of sea-fishing and other products taken from the sea outside the territorial waters by its vessels;

• (h) products made on board its factory ships exclusively from the products referred to in (g);

• (i) used articles collected there, fit only for the recovery of raw materials;

• (j) waste and scrap resulting from manufacturing operations conducted there;

• (k) products extracted from the seabed or below the seabed which is situated outside its territorial waters but where the beneficiary country or territory or a Member State has exclusive exploitation rights;

• (l) goods produced there exclusively from products specified in (a) to (k).

• (a) they are registered or recorded in the beneficiary country or territory or in a Member State;

• (b) they sail under the flag of a beneficiary country or territory or of a Member State;

• (c) they are owned to the extent of at least 50 % by nationals of the beneficiary country or territory or of Member States or by a company with its head office in that beneficiary country or territory or in one of the Member States, of which the manager or managers, chairman of the board of directors or of the supervisory board, and the majority of the members of such boards are nationals of that beneficiary country or territory or of the Member States and of which, in addition, in the case of companies, at least half the capital belongs to that beneficiary country or territory or to the Member States or to public bodies or nationals of that beneficiary country or territory or of the Member States;

• (d) the master and officers of the vessels and factory ships are nationals of the beneficiary country or territory or of the Member States;

• (e) at least 75 % of the crew are nationals of the beneficiary country or territory or of the Member States.

Article 61

Sufficiently worked or processed products

(Article 64(3) of the Code)

For the purposes of Article 59, products which are not wholly obtained in a beneficiary country or territory or in the Union shall be considered to be sufficiently worked or processed provided that the conditions set out in the list in Annex 22-11 are fulfilled.

Those conditions indicate, for all products covered by this Subsection, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials.

If a product which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.

Article 62

Insufficient working or processing

(Article 64(3) of the Code)

• (a) preserving operations to ensure that the products remain in good condition during transport and storage;

• (b) breaking-up and assembly of packages;

• (c) washing, cleaning; removal of dust, oxide, oil, paint or other coverings;

• (d) ironing or pressing of textiles and textile articles;

• (e) simple painting and polishing operations;

• (f) husking, partial or total milling, polishing and glazing of cereals and rice;

• (g) operations to colour or flavour sugar or form sugar lumps; partial or total milling of sugar;

• (h) peeling, stoning and shelling, of fruits, nuts and vegetables;

• (i) sharpening, simple grinding or simple cutting;

• (j) sifting, screening, sorting, classifying, grading, matching (including the making-up of sets of articles);

• (k) simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;

• (l) affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;

• (m) simple mixing of products, whether or not of different kinds; mixing of sugar with any material;

• (n) simple addition of water or dilution or dehydration or denaturation of products;

• (o) simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;

• (p) slaughter of animals;

• (q) a combination of two or more of the operations specified in points (a) to (p).

Article 63

Unit of qualification

(Article 64(3) of the Code)

Accordingly, it follows that:

• (a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonised System in a single heading, the whole constitutes the unit of qualification;

• (b) when a consignment consists of a number of identical products classified under the same heading of the Harmonised System, each product must be taken individually when applying the provisions of this Subsection.

Article 64

General tolerance

(Article 64(3) of the Code)

Where, in the list, one or several percentages are given for the maximum value of non-originating materials, such percentages must not be exceeded through the application of the first subparagraph.

Article 65

Accessories, spare parts and tools

(Article 64(3) of the Code)

Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 66

Sets

(Article 64(3) of the Code)

Sets, as defined in general interpretative rule 3 of the Harmonised System, shall be regarded as originating when all the component products are originating products. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating provided that the value of the non-originating products does not exceed 15 % of the ex-works price of the set.

Article 67

Neutral elements

(Article 64(3) of the Code)

In order to determine whether a product is an originating product, it shall not be necessary to determine the origin of the following which might be used in its manufacture:

• (a) energy and fuel;

• (b) plant and equipment;

• (c) machines and tools;

• (d) goods which do not enter, and which are not intended to enter, into the final composition of the product.

Subsection 5 Territorial requirements applicable within the framework of the Rules of Origin for the purposes of preferential tariff measures adopted unilaterally by the Union for certain countries or territories

Article 68

Principle of territoriality

(Article 64(3) of the Code)

'The conditions set out in Subsection 4 and in this subsection for acquiring originating status must continue to be fulfilled at all times in the beneficiary country or territory or in the Union.

If originating products exported from the beneficiary country or territory or from the Union to another country are returned, they shall be considered as non-originating unless it can be demonstrated to the satisfaction of the competent authorities that the following conditions are fulfilled:

• (a) the returned products are the same as those which were exported;

• (b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

Article 69

Direct transport

(Article 64(3) of the Code)

• (a) products transported without passing through the territory of any other country;

• (b) products constituting one single consignment transported through the territory of countries other than the beneficiary country or territory or the Union, with, should the occasion arise, transhipment or temporary warehousing in those countries, provided that the products remain under the supervision of the customs authorities in the country of transit or warehousing and they do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition;

• (c) products which are transported by pipeline without interruption across a territory other than that of the exporting beneficiary country or territory or of the Union.

• (a) a single transport document covering the passage from the exporting country through the country of transit;

• (b) a certificate issued by the customs authorities of the country of transit:
• (i) giving an exact description of the products;
• (ii) stating the dates of unloading and reloading of the products and, where applicable, the names of the ships, or the other means of transport used, and
• (iii) certifying the conditions under which the products remained in the country of transit;

• (c) or, failing these, any substantiating documents.

Article 70

Exhibitions

(Article 64(3) of the Code)

• (a) an exporter has consigned the products from the beneficiary country or territory directly to the country in which the exhibition is held and has exhibited them there;

• (b) the products have been sold or otherwise disposed of by that exporter to a person in the Union;

• (c) the products have been consigned during the exhibition or immediately thereafter to the Union in the state in which they were sent for exhibition;

• (d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.

CHAPTER 2 Value of goods for customs purposes

Article 71

Simplification

(Article 73 of the Code)

• (a) the application of the procedure referred to in Article 166 of the Code would, in the circumstances, represent disproportioned administrative costs;

• (b) the customs value determined, will not significantly differ from that determined in the absence of an authorisation.

• (a) he complies with the criterion laid down in Article 39(a) of the Code;

• (b) he maintains an accounting system which is consistent with the generally accepted accounting principles applied in the Member State where the accounts are held and which will facilitate audit-based customs control. The accounting system shall maintain a historical record of data that provides an audit trail from the moment the data enters the file;

• (c) he has an administrative organisation which corresponds to the type and size of business and which is suitable for the management of the flow of goods, and have internal controls capable of detecting illegal or irregular transactions;

TITLE III CUSTOMS DEBT AND GUARANTEES

CHAPTER 1 Incurrence of a customs debt

Section 1 Provisions common to customs debts incurred on import and export

Subsection 1 Rules for calculation of the amount of import or export duty

Article 72

Calculation of the amount of import duty on processed products resulting from inward processing

(Article 86(3) of the Code)

• (a) where only one kind of processed products is derived from the processing operations;

• (b) where different kinds of processed products are derived from the processing operations and all constituents or components of the goods placed under the procedure are found in each of those processed products.

• (a) the percentage which the processed products for which a customs debt is incurred constitute of the total quantity of the processed products of the same kind resulting from the processing operation;

• (b) the percentage which the total quantity of the processed products of the same kind, irrespective of whether a customs debt is incurred, constitutes of the total quantity of all processed products resulting from the processing operation.

The quantity of the goods placed under the inward processing procedure considered to be present in processed products for which a customs debt is incurred shall be determined by applying, to the total quantity of the goods placed under the inward processing procedure, a percentage calculated by multiplying the following factors:

• (a) the percentage which the processed products for which a customs debt is incurred constitute of the total value of the processed products of the same kind resulting from the processing operation;

• (b) the percentage which the total value of the processed products of the same kind, irrespective of whether a customs debt is incurred, constitute of the total value of all processed products resulting from the processing operation.

For the purposes of applying the value scale method, the value of the processed products shall be established on the basis of current ex-works prices in the customs territory of the Union or, where such ex-works prices cannot be determined, the current selling prices in the customs territory of the Union for identical or similar products. Prices between parties which appear to be associated or to have a compensatory arrangement with each other may not be used for the determination of the value of the processed products unless it is determined that the prices are unaffected by the relationship.

Where the value of the processed products cannot be determined pursuant to the third subparagraph, it shall be determined by any reasonable method.

Article 73

Application of the provisions on end-use procedure to processed products resulting from inward processing

(Article 86(3) of the Code)

• (a) an authorisation to place the goods under the end-use procedure could have been issued, and

• (b) the conditions for the duty exemption or the reduced rate of duty on account of specific use of those goods would have been fulfilled at the time of acceptance of the customs declaration for placing goods under the inward processing procedure.

Article 74

Application of the preferential tariff treatment to goods placed under inward processing

(Article 86(3) of the Code)

For the purposes of the application of Article 86(3) of the Code, where, at the time of the acceptance of the customs declaration for placing goods under the inward processing procedure the imported goods fulfil the conditions to qualify for preferential tariff treatment within tariff quotas or ceilings, those goods shall be eligible for any preferential tariff treatment provided for in respect of identical goods at the time of acceptance of the declaration of release for free circulation.

Article 75

Specific import duty on processed products resulting from outward processing or replacement products

(Article 86(5) of the Code)

Where a specific import duty is to be applied in relation to processed products resulting from the outward processing procedure or replacement products, the amount of the import duty shall be calculated on the basis of the customs value of the processed products at the time of acceptance of the customs declaration for release for free circulation minus the statistical value of the corresponding temporary export goods at the time when they were placed under outward processing, multiplied by the amount of import duty applicable to the processed products or replacement products, divided by the customs value of the processed products or replacement products.

Article 76

Derogation for the calculation of the amount of import duty on processed products resulting from inward processing

(Article 86(3) and 86(4) of the Code)

• (a) the processed products resulting from the inward processing procedure are imported directly or indirectly by the relevant holder of the authorisation within a period of one year after their re-export;

• (b) the goods would, at the time of the acceptance of the customs declaration for placing the goods under the inward processing procedure, have been subject to an agricultural or 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 had they been declared for release for free circulation;

• (c) no examination of the economic conditions was required in accordance with Article 166.

Subsection 2 Time-limit for establishing the place where the customs debt is incurred

Article 77

Time-limit for establishing the place where the customs debt is incurred under Union transit

(Article 87(2) of the Code)

For goods placed under the Union transit procedure, the time-limit referred to in Article 87(2) of the Code shall be either of the following:

• (a) seven months from the latest date on which the goods should have been presented at the customs office of destination, unless before the expiry of that time limit a request to transfer the recovery of the customs debt was sent to the authority responsible for the place where, according to the evidence obtained by the customs authority of the Member State of departure, the events from which the customs debt arises occurred, in which case that time-limit is extended by a maximum of one month;

• (b) one month from the expiry of the time-limit for the reply by the holder of the procedure to a request for the information needed to discharge the procedure, where the customs authority of the Member State of departure has not been notified of the arrival of the goods and the holder of the procedure has provided insufficient or no information.

Article 78

Time-limit for establishing the place where the customs debt is incurred under transit in accordance with the TIR Convention

(Article 87(2) of the Code)

For goods placed under transit in accordance with the Customs Convention on the international transport of goods under cover of TIR carnets, including any subsequent amendments (TIR Convention), the time-limit referred to in Article 87(2) of the Code shall be seven months from the latest date on which the goods should have been presented at the customs office of destination or exit.

Article 79

Time-limit for establishing the place where the customs debt is incurred under transit in accordance with the ATA Convention or the Istanbul Convention

(Article 87(2) of the Code)

For goods placed under transit in accordance with the Customs Convention on the ATA Carnet for the Temporary Admission of Goods done at Brussels on 6 December 1961, including any subsequent amendments (ATA Convention) or with the Convention on Temporary Admission, including any subsequent amendments (Istanbul Convention) the time-limit referred to in Article 87(2) of the Code shall be seven months from the date on which the goods should have been presented at the customs office of destination.

Article 80

Time-limit for establishing the place where the customs debt is incurred in cases other than transit

(Article 87(2) of the Code)

For goods placed under a special procedure other than transit or for goods which are in temporary storage, the time-limit referred to in Article 87(2) of the Code shall be seven months from the expiry of any of the following periods:

• (a) the prescribed period for discharge of the special procedure;

• (b) the prescribed period for ending the customs supervision of end-use goods;

• (c) the prescribed period for ending the temporary storage;

• (d) the prescribed period for ending the movement of goods placed under the warehousing procedure between different places in the customs territory of the Union where the procedure was not discharged.

CHAPTER 2 Guarantee for a potential or existing customs debt

Section 1 General provisions

Article 81

Cases where no guarantee shall be required for goods placed under the temporary admission procedure

(Article 89(8)(c) of the Code)

The placing of goods under the temporary admission procedure shall not be subject to the provision of a guarantee in the following cases:

• (a) where the customs declaration may be made orally or by any other act as referred to in Article 141;

• (b) in the case of materials used in international traffic by airlines, shipping or railway companies or providers of postal services provided that those materials are distinctively marked;

• (c) in the case of packings imported empty, provided that they carry indelible non-removable markings;

• (d) where the previous holder of the authorisation for temporary admission has declared the goods for the temporary admission procedure in accordance with Article 136 or Article 139 and those goods are subsequently placed under temporary admission for the same purpose.

Article 82

Guarantee in the form of an undertaking by a guarantor

(Article 94, 22(4) and 6(3)(a) of the Code)

Article 83

Forms of guarantee other than a cash deposit or an undertaking given by a guarantor

(Article 92(1)(c) of the Code)

• (a) the creation of a mortgage, a charge on land, an antichresis or other right deemed equivalent to a right pertaining to immovable property;

• (b) the cession of a claim, the pledging, with or without surrendering possession, of goods, securities or claims or a savings bank book or entry in the national debt register;

• (c) the assumption of joint contractual liability for the full amount of the debt by a third party approved for that purpose by the customs authorities or the lodging of a bill of exchange the payment of which is guaranteed by such third party;

• (d) a cash deposit or means of payment deemed equivalent thereto other than in euro or the currency of the Member State in which the guarantee is required;

• (e) participation, subject to payment of a contribution, in a general guarantee scheme administered by the customs authorities.

Section 2 Comprehensive guarantee and guarantee waiver

Article 84

Reduction of the level of the comprehensive guarantee and guarantee waiver

(Article 95(2) of the Code)

• (a) the applicant maintains an accounting system which is consistent with the generally accepted accounting principles applied in the Member State where the accounts are held, allows audit-based customs control and maintains a historical record of data that provides an audit trail from the moment the data enters the file;

• (b) the applicant has an administrative organisation which corresponds to the type and size of business and which is suitable for the management of the flow of goods, and has internal controls capable of preventing, detecting and correcting errors and of preventing and detecting illegal or irregular transactions;

• (c) the applicant is not subject to bankruptcy proceedings;

• (d) during the last three years preceding the submission of the application, the applicant has fulfilled his financial obligations regarding payments of customs duties and all other duties, taxes or charges which are collected on or in connection with the import or export of goods;

• (e) the applicant demonstrates on the basis of the records and information available for the last three years preceding the submission of the application that he has sufficient financial standing to meet his obligations and fulfil his commitments having regard to the type and volume of the business activity, including having no negative net assets, unless where they can be covered.

• (a) the applicant maintains an accounting system which is consistent with the generally accepted accounting principles applied in the Member State where the accounts are held, allows audit-based customs control and maintains a historical record of data that provides an audit trail from the moment the data enters the file;

• (b) the applicant has an administrative organisation which corresponds to the type and size of business and which is suitable for the management of the flow of goods, and has internal controls capable of preventing, detecting and correcting errors and of preventing and detecting illegal or irregular transactions;

• (c) the applicant ensures that relevant employees are instructed to inform the customs authorities whenever compliance difficulties are discovered and establishes procedures for informing the customs authorities of such difficulties;

• (d) the applicant is not subject to bankruptcy proceedings;

• (e) during the last three years preceding the submission of the application, the applicant has fulfilled his financial obligations regarding payments of customs duties and all other duties, taxes or charges which are collected on or in connection with the import or export of goods;

• (f) the applicant demonstrates on the basis of the records and information available for the last three years preceding the submission of the application that he has sufficient financial standing to meet his obligations and fulfil his commitments having regard to the type and volume of the business activity, including having no negative net assets, unless where they can be covered.

• (a) the applicant maintains an accounting system which is consistent with the generally accepted accounting principles applied in the Member State where the accounts are held, allows audit-based customs control and maintains a historical record of data that provides an audit trail from the moment the data enters the file;

• (b) the applicant allows the customs authority physical access to its accounting systems and, where applicable, to its commercial and transport records;

• (c) the applicant has a logistical system which identifies goods as Union or non-Union goods and indicates, where appropriate, their location;

• (d) the applicant has an administrative organisation which corresponds to the type and size of business and which is suitable for the management of the flow of goods, and has internal controls capable of preventing, detecting and correcting errors and of preventing and detecting illegal or irregular transactions;

• (e) where applicable, the applicant has satisfactory procedures in place for the handling of licences and authorisations granted in accordance with commercial policy measures or relating to trade in agricultural products;

• (f) the applicant has satisfactory procedures in place for the archiving of its records and information and for protection against the loss of information;

• (g) the applicant ensures that relevant employees are instructed to inform the customs authorities whenever compliance difficulties are discovered and establishes procedures for informing the customs authorities of such difficulties;

• (h) the applicant has appropriate security measures in place to protect the applicant's computer system from unauthorised intrusion and to secure the applicant's documentation;

• (i) the applicant is not subject to bankruptcy proceedings;

• (j) during the last three years preceding the submission of the application, the applicant has fulfilled his financial obligations regarding payments of customs duties and all other duties, taxes or charges which are collected on or in connection with the import or export of goods;

• (k) the applicant demonstrates on the basis of the records and information available for the last three years preceding the submission of the application that he has sufficient financial standing to meet his obligations and fulfil his commitments having regard to the type and volume of the business activity, including having no negative net assets, unless where they can be covered.

3a. When verifying if the applicant has sufficient financial standing for the purpose of granting of an authorisation to use a comprehensive guarantee with a reduced amount or a guarantee waiver as required by paragraphs 1(e), 2(f) and 3(k), the customs authorities shall take into account the ability of the applicant to fulfil his obligations of paying his customs debts and other charges which may be incurred, not covered by that guarantee.

If justified, the customs authorities may take into account the risk of incurrence of those customs debts and of other charges having regard to the type and volume of the customs related business activities of the applicant and to the type of goods for which the guarantee is required.

3b. When the condition on sufficient financial standing has already been assessed as a modality for the application of the criterion referred to in Article 39(c) of the Code, the customs authorities shall verify only if the financial standing of the applicant justifies the granting of an authorisation to use a comprehensive guarantee with a reduced amount or a guarantee waiver.

Section 3 Provisions for the Union transit procedure and the procedure under the Istanbul and the ATA Convention

Article 85

Release of the guarantor's obligations under the Union transit procedure

(Articles 6(2), 6(3)(a) and 98 of the Code)

The common data requirements for the notification as referred to in paragraph 2 are set out in Annex 32-05.

Article 86

Claim for payment against a guaranteeing association for goods covered by ATA carnet and notification of the non-discharge of CPD carnets to a guaranteeing association under the procedure of the ATA Convention or Istanbul Convention

(Articles 6(2), 6(3)(a) and 98 of the Code)

CHAPTER 3 Recovery and payment of duty and repayment and remission of the amount of import and export duty

Section 1 Determination of the amount of import or export duty, notification of the customs debt and entry in the accounts

Subsection 1

Articles 87

Means of notification of the customs debt

(Article 6(3)(a) of the Code)

The notification of the customs debt in accordance with Article 102 of the Code may be made by means other than by electronic data-processing techniques.

Article 88

Exemption from notification of the customs debt

(Article 102(1)(d) of the Code)

Section 2 Payment of the amount of import or export duty

Article 89

Suspension of the time-limit for payment in case of application for remission

(Article 108(3)(a) of the Code)

• (a) where an application for remission pursuant to Article 118, 119 or 120 of the Code has been presented, the conditions laid down in the relevant Article are likely to be met;

• (b) where an application for remission pursuant to Article 117 of the Code has been presented, the conditions laid down in Article 117 and Article 45(2) of the Code are likely to be met.

Article 90

Suspension of the time-limit for payment in the case of goods that are to be confiscated, destroyed or abandoned to the State

(Article 108(3)(b) of the Code)

The customs authorities shall suspend the time-limit for payment of the amount of import or export duty corresponding to a customs debt where the goods are still under customs supervision and they are to be confiscated, destroyed or abandoned to the State and the customs authorities consider that the conditions for confiscation, destruction or abandonment are likely to be met, until the final decision on their confiscation, destruction or abandonment is taken.

Article 91

Suspension of the time-limit for payment in the case of customs debts incurred through non-compliance

(Article 108(3)(c) of the Code)

• (a) at least one other debtor has been identified in accordance with Article 79(3)(b) or (c) of the Code;

• (b) the amount of import or export duty concerned has been notified to the debtor referred to in point (a) in accordance with Article 102 of the Code;

• (c) the person referred to in Article 79(3)(a) of the Code is not considered a debtor in accordance with Article 79(3)(b) or (c) of the Code and no deception or obvious negligence may be attributed to that person;

• (a) a guarantee covering the whole amount of import or export duty at stake already exists and the guarantor has not been released from his obligations;

• (b) it is established, on the basis of a documented assessment, that the requirement of a guarantee would be likely to cause the debtor serious economic or social difficulties.

Section 3 Repayment and remission

Subsection 1 General provisions and procedure

Article 92

Application for repayment or remission

(Articles 6(3)(a), 22(1) and 103 of the Code)

Article 93

Supplementary information where goods are situated in another Member State

(Articles 6(2) and 6(3)(a) of the Code)

The common data requirements for the request of supplementary information where goods are situated in another Member State are set out in Annex 33-06.

The request for supplementary information referred to in the first subparagraph may be made by means other than electronic data-processing techniques.

Article 94

Means of notification of the decision on repayment or remission

(Article 6(3)(a) of the Code)

The decision on repayment or remission of import or export duty may be notified to the person concerned by means other than electronic data-processing techniques.

Article 95

Common data requirements related to formalities where goods are located in another Member State

(Article 6(2) of the Code)