International Trade

Customs Export Procedures Customs procedures apply upon the export of goods to places outside the European Union. The purposes are to enforce restrictions and prohibitions; ensure licensing requirements are met; collect statistics; ensure exporter relief schemes are properly operated; ensure safety and security requirements have been adhered to enforce VAT and in particular ensure the exit and prevent the re-entry export of goods which have qualified for duty-free VAT zero rate. Goods exported must be placed under the export procedure. A customs declaration must be lodged electronically in the requisite form. Upon export, the goods cease to be Community goods. Direct exports of goods are those exported directly outside the EU. Exports which leave Ireland under a single transport contract is deemed to be a direct export. Indirect exports are those which travel through another state before leaving the EU. These is an export and transit procedure involving the office of export and the office of transit.… Read the rest

Export Issues

Local Clearance Procedure I Export procedures may be simplified for traders who fulfil certain conditions. This may involve the use of a simplified SAD or entry of goods in the trader’s records followed by a monthly declaration. Simplified declarations may be used by authorised traders. Traders normally present a supplementary monthly declaration of all of its exports to Customs. The local clearance procedures may be used by an authorised trader. They may export goods without presenting them to customs. They notify customs of each export and enter the transaction in their records. The trader presents monthly supplementary declarations of all exports to Customs. Traders must receive Customs authorisation to use the simplified declaration procedure. The simplified declaration must contain sufficient information to enable the goods to be identified. The supplemental declaration is presented by the last day of the month, covering all exports during the period using the declaration. The date of acceptance of the initial declaration is the operative date.… Read the rest

Administration

Overview Customs Duties are taxes on the import of goods. They are one of the oldest forms of taxation. Prior to joining the European Union, Ireland and the UK each had their own separate customs duties which applied on imports into each country. On joining the European Economic Community in 1973, Ireland and the UK abolished their own customs duties. Custom duties arise when goods are imported into the European Union or when they are released into free circulation from a customs control process. There are no customs duties on good passing between European Union Member States. The European Economic Community and the European Union into which it evolved, is a customs union. It has exclusive competence in relation to customs matters and the related commercial policy. The EU Customs Regulations also provide the export procedures for goods exported from the EU. The exporter or its agents must make a declaration.… Read the rest

Enforcement

Customs Legislation Upon establishment of the Irish Free State, regulations were made to adapt the existing United Kingdom’s Customs Acts to apply to the Irish Free State frontier with Northern Ireland. Since accession to the European Union, Ireland has been part of the Customs Union with the other member states. Since 1993, the internal customs frontiers with Northern Ireland were dismantled. Until recently, the procedural and criminal aspects of customs legislation was regulated by the Customs Consolidation Act 1876, as amended on numerous occasions both before and since independence. The Customs Act, 2015 repeals and has replaced the legislation with a more modern scheme of legislation. Customs Offences I It is an offence to import or export any goods prohibited or restricted by customs law or related provisions. Any person who imports or exports any goods in contravention of legislation; attempts to do so; brings or sends goods to a place for the purpose of unlawful exportation; attempts to do so; keeps such goods for the purpose of facilitating exportation; aids or abets any of the above is guilty of a customs offence.… Read the rest

GATT/ WTO

GATT Basic Principles The General Agreement on Tariffs and Trade (GATT 1994) sets out the basic rules governing international trade in goods. Almost all countries are members The Agreement provides a number of basic principles. The most important principles are the most-favoured-nation treatment and the principle of non-discrimination. Member countries of the WTO (World Trade Organisation) must accord to products of other states, treatment no less favourable than that applied to the goods of another country. This is the most favoured nation (MFN) principle. It means that a concession or favourable treatment afforded to one country must be afforded to all other countries. Under the non-discrimination principle, taxation and internal regulation treatment should be no less favourable than that accorded to products of national origin or other imports. Once subject to any applicable customs duties and procedures, they must be treated in the same way as domestic goods. Exceptions There is a number is an important exception to these important general principles.There… Read the rest

Controlled Exports

Quotas The EU applies tariffs and quotas on certain products originating outside the EU. The Schedule of Customs Duties indicate the quotas and eligibility for preferential tariff for the relevant goods. There are annual limits on the amounts that may be imported or may be imported at preferential rates (either reduced or zero). They apply to the EU as a whole. When the quota limit is reached, the full duty is payable on other goods imported in the period. Quotas are generally managed on a first-come-first-served basis or by import licence. Under the AEP system, a request for a first-come-first-served quota is transmitted to the Commission. The quotas for agricultural products are managed by the Department of Agriculture. Other licence-based quotas are managed by the Department of Enterprise, Trade and Employment. Ceilings are annual limits provided by EU regulations by which certain a quantity of a specified goods may be imported at reduced or nil rate. … Read the rest

Controlled Imports

Various Controls The importation of some goods of certain goods is subject to prohibitions, restrictions or licensing. The reasons for the restrictions and prohibitions vary. Agricultural products The Common Agricultural Policy provides that most imports of agricultural products require a licence. The Department of Agriculture issues import licences. Different sections of the Department deal with licences in respect of meat, dairy products, cereals, fruit and vegetables. The goods concerned include those covered by the common organization of the market. One purpose of the licensing system is to ensure the effective operation of the price and market controls under the policy. See the section on the CAP. The price and market control aspects are now much less prominent than in earlier decades. EU wide food safety laws require that animal products and fish imported into the EU must be presented for veterinary inspection at an EU border post. The import of animal products and live animals must be notified in advance to the border inspection post.… Read the rest

Intra-EU Controls

Intra-EU trade Generally, there is free movement of goods and services throughout the EU. Border posts have been largely dismantled since 1992. The European Union Treaties allow limited exceptions that can be justified on public policy, health and security grounds. EU states may maintain restrictions on free movement that are objectively necessary on these grounds. The restrictions must be no more than are strictly necessary. They are interpreted very narrowly as they are an exception to the principle of free movement of goods, which is a basic principle of EU law. The concept of public policy in this context is very narrow. Many of the below restriction are justified on this basis. The movement of goods inwards or outwards to and from the EU are “dispatches”. The EU is a single customs territory, so such movements are not subject to customs control. However, some licensing and consent requirements, such as CAP controls, arise under the EU scheme of legislation itself.… Read the rest

Import Issues

Automated Entry Processing System Revenue’s automated entry processing system (AEP) undertakes validation, processing, duty accounting, calculation and clearance of customs declarations. It verifies data format, validations, preferential rates, prohibitions and restrictions. It verifies that sufficient credit is available on the trader’s account to cover import liability. Traders may be approved for direct trader input by the AEP bureau. A digital certificate is furnished or authentication. Under the direct trader input (DTI) system, accompanying documents must continue to be lodged in the case of red routed, and orange routed declarations. Where the DTI declaration is green routed, the declarant must retain the accompanying documents for [three] years and produce them if requested by Revenue. Copies of inward processing authorisations and VAT free authorisations are to be retained as accompanying documents. The declarant may use any filing system, provided that the document can be produced to the Revenue on request. A list of particulars to be given on declarations is prescribed in the regulations. … Read the rest

Import Procedures

Stages of Import There are six stages in the import process by sea or air; the advance provision of information; the report of the arrival of means of transport; the presentation of the goods; the declaration of the goods; the examination of the goods; the release of the goods; Entry Declaration and Presentation Ships and aircraft arriving in the EU must give details of their arrival. An entry summary declaration is submitted to the customs authority (the customs branch of the Revenue) at the port or airport of arrival. Vessels arriving in an Irish port from an EU port must also report their arrival. Both regular and non-regular vessel arrivals from other EU states must present a cargo manifest. A ship’s report comprises a declaration and manifest including declarations in relation to store, crews and passenger list. Similarly, an aircraft arriving from a non-EU country must present copies of the cargo manifest.… Read the rest

Tariff Issues

The EU Common Customs Tariff The European Unions Common Customs Tariff sets out the rules and the rates of duty applicable to imports into the European Union. The EU Common Customs tariff is a three volume guide setting out custom duties and other relevant information applicable to the import and export of goods. It enables importers and exporters to comply with their legal obligations. Volume 1 of the tariff sets out a range of general information for importers and exporters including restrictions, VAT relief schemes and anti-dumping duties. Volume 2 sets out the commodity codes for each type of product. It contains thousands of commodity codes. It lists duty rates and important information such as import licensing and preferential duties applicable to the goods. This is a 10 digit reference number for imports and an 8 digit code for consignments trading within the EU. With the correct commodity code, the tariff can be used to ascertain the current duty and import VAT rate.… Read the rest

Valuation

Customs Duty Valuation. Customs duties are usually charged ad valorem, that is value-based. Common customs tariff duties are based on a valuation of the goods. The rate is specified by the code in the tariff. EU Regulations encompassing the Code sets out the rules on valuation. They accord with the General Agreement on Trade and Tariffs rules for valuation. The value of imported goods for VAT purposes is the value for customs purposes, increased by the amount of any duty or other tax, but not including VAT or Vehicle Registration Tax payable in relation to their importation; and any transport, handling and insurance costs between the place of introduction into the EU / State and onward transport cost if known at the time of importation to the final destination within the EU. The primary method of valuation is the invoice price. Where the value is based on the invoice price, certain deductions are allowed, provided that they are clearly distinguished in the documents. … Read the rest

Warehousing

Types of Warehouse Customs warehousing is a procedure by which non-EU goods may be stored in EU territory without being subject to import duties. Duty becomes payable when the goods are released into free circulation. A warehouse may also be authorised as a tax warehouse. If it is not both a customs and tax warehouse, excise duty will become payable when the goods are brought into the warehouse. A public warehouse is used to store goods on behalf of any trader. A private warehouse is reserved for the use of an authorised trader who is also the depositor of the goods. Customs warehouses are places authorised and under the supervision of the Customs authorities where goods may be stored subject to conditions, pending payment of customs and excise duties. Warehouses must be specifically authorised. CAP goods may be placed in a customs warehouse. The relevant entry of the goods must be made. … Read the rest

AEOs

Authorised Economic Operators The (EU) Community Customs Code provides for Authorised Economic Operators. They are traders who are deemed low risk and compliant with customs obligations. As AEOs they may qualify for and may enjoy certain relaxations from standard customs controls. Persons may be approved as AEOs at all levels in the international supply chain. They may include exporters, freight forwarders, warehouse keepers, customs agents, importers, carriers and manufacturers. They must be engaged in the course of their business, in an activity covered by customs legislation. An AEO certificate may be given to an operator with an appropriate record of compliance with customs requirements, satisfactory systems of managing commercial and transport records where applicable which allow customs controls; financial solvency requirements; appropriate security and safety standards. Group companies must each apply and obtain their own certificate. AEO Certificates There are three types of AEO certificates. An AEO Customs Simplification certificate entitles the holder to easier admission to customs simplifications procedures; fewer physical and document-based controls; priority treatment, if selected for controls; greater choice in the place where physical controls may be carried out.… Read the rest

Simplified Procedures

Simplified customs procedure Simplified procedures are available for both imports and exports. The principal procedures are the Simplified Declaration Procedure and the Local Clearance Procedure, now Entry in the Declarant’s Records. An authorisation is required from Revenue to operate the procedure. Authorised Economic Operators are deemed to have the necessary qualifications, subject to any additional conditions relevant to the simplification in question. The data which must be supplied at clearance is that required to identify the goods and allow customs to assess the risks. The formal customs declaration is made afterwards within a set timeframe. There are a number of procedures which facilitate simplified and speedier customs clearance. Local Clearance Procedure I The goods are released into free circulation by entry into the business’s records. The procedure is available for the following types of goods goods in transit procedures; goods previously placed under customs procedures; goods which having been presented to customs are consigned to a premises in accordance with transit procedure; goods brought into the EU with an exemption from the requirement that they be presented to customs.… Read the rest

Reliefs

Relief from Duties There are various categories of goods which are relieved from customs duties personal property of persons transferring their residence to the EU for at least 12 months goods imported on marriage; personal goods inherited by persons resident in the EU; household goods and furnishings imported by persons outside the EU to furnish a secondary residence in the EU; clothing materials furniture of students coming to study in the EU; consignments whose value is less than €22 (except alcohol, tobacco, toiletries and perfumes; small consignments of a non-commercial nature sent by private persons outside the EU to private persons within the EU with a value of less than €45; capital goods of a firm moving its base / establishing activities within the EU and ending them in a third country; non-commercial goods in the personal luggage of travellers; there are quantitative limits for alcohol, tobacco and perfume; other goods are limited to €1,750; agricultural, beekeeping, horticultural and forestry products obtained by EU citizens; laboratory animals and biological chemical substances for research; therapeutic substances of human origin; instruments for medical research, diagnosis and treatment; pharmaceuticals imported at the time of international sports events; educational scientific and cultural materials; goods for charitable and philanthropic organisations; articles intended for blind or disabled persons; honorary decorations, gifts and award; goods for trade promotion goods for examination and analysis or testing certain consignments to organisations charged with protecting intellectual property rights Personal Baggage and Importation There is a Commission proposal for the exemption of goods imported in personal luggage, below €200 (€430 in the case of persons travelling by sea) as exempt from VAT and excise duty.… Read the rest

Postal Imports

Arrival by Post Customs law applies to goods arriving by post. Postal authorities must hand over suspicious packages to the Revenue. Items may be searched and seized. A postal service must designate depots to deal with mail from outside the EU. They must be approved by Revenue. Importations of non-EU mail must be declared in its broad description Non-EU mail is to be moved to an approved depot without delay. There must be arrangements to ensure that no diversion or interference can take place. Non-EU mails is subject to external or internal examination of goods and documents. A part may be checked to verify the accuracy of the declared contents. This is done on the basis of profiling and risk management. Parcels are opened only where there is a reasonable suspicion based on profiling, that they contain prohibited or restricted goods, or that false declaration has been made in respect of them.… Read the rest

Export Issues

Transit Procedures

Transit Procedures Transit procedures facilitate the free movement of goods through the EU and third countries, by temporarily suspending duties and charges until they reach their final destination. There are three types of transit procedures. Community Transit applies to movement of goods within the EU territories only. Common Transit, covers movements between the Community and one or more EFTA countries. TIR Transports Internationaux Routiers applies in respect of movement through the EU and one or more of the Non-EU Countries, a party to the TIR Convention 1975. Community transit is given effect by EU Regulation. TIR is the subject of the TIR Convention, 1975. The Community Transit System provides for the movement under customs control through the EU, of goods that are not in free circulation and for the movement of free circulation goods in certain circumstances. External / Internal Community Transit The External Community Transit Procedure facilitates the movement of non-Community goods within the customs territory of the EU, under a system of customs control.… Read the rest

Controlled Exports