Temporary storage of goods and the problematic with liquid bulks

Transcription

1 (No firm logos) Temporary storage of goods and the problematic with liquid bulks By: VLM Luna Macías, Virginia Mrs. Post-Master EU Customs Law European Fiscal Studies Erasmus University Rotterdam

2 Table of contents Table of contents Introduction and new legal framework Scope of this thesis New regulation in force Has the UCC simplified the entry of goods and the procedures regarding the temporal storage? Maritime terminals within the UCC Arrival of goods to the customs territory of the EU Conveyance to the appropriate place Presentation, unloading and examination of goods Temporary storage of goods Definition Temporary storage declaration Conditions and responsibilities for the temporary storage of goods Is the combined storage of Union goods with non-union goods allowed in the Temporary Storage warehouse? Is it possible to use equivalents goods in the temporary storage? Is it possible to blend goods in the temporary storage? Technical characteristics Responsibilities and obligations Authorization Problems arised since May 1st Proposed solutions Literature list

3 Abbreviations UCC: Regulation (EU) N 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code UCCDA : 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 UCCIA Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code CCC: Council Regulation (EEC) 2913/92 of 12 October 1992 establishing the Community Customs Code [ CCIP: COMMISSION REGULATION (EEC) 2454/93 of 2 July 1993laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code EU: European Union ECJ: European Court of Justice AG: Advocate General of the European Court of Justice VAT: Value Added Tax SAMANCTA: Sampling Manual for Customs and Taxation Authorities AEO: Authorised Economic Operator MRN: Movement reference number MS: Member State WCO: World Customs Organisation HS: Harmonised System CN: Combined Nomenclature EN: European Standards IPR: Inward Processing Procedure 2

4 ENS: Entry Summary declaration. TDSD: Temporary Deposit Summary Declaration. TSD: Temporary Storage Declaration. TSW:Temporary Storage Warehouses. 3

5 1. Introduction and new legal framework. 1.1 Scope of this thesis The main objective of this work is to expose what is settle down by the UCC a for the arrival and temporary storage of goods and how it works in practice for the liquid bulks. The problems arising, the current solutions provided by customs authorities and the proposition of feasible solutions to solve out the current issues and for the streamlining of resources and procedures. 1.2 New regulation in force The last May 1 st came into force the Regulation (EU) nº 952/2013 of the of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (UCC). This regulation among the following is the legal framework of the Customs Union, exclusive policy of the EU. Delegated act: Regulation (EU) No 2015/2446; Implementing act: Regulation (EU) No 2015/2447; Delegated /Transitional Rules: (EU) 2016/341; Implementing Decision (Work Programme UCC):(EU) 2016/578 This new legal frame work means the derogation of the following rules: Council Regulation (EEC) No 2913/92; Commission Regulation (EEC) No 2454/93. Council Regulation (CE) No 450/2008 As the regulation lays down the facilitation of legitimate trade and the fight against fraud require simple, rapid and standard customs procedures and processes. It is therefore appropriate, to simplify customs legislation, to allow the use of modern tools and technology and to promote further the uniform application of customs legislation and modernised approaches to customs control, thus helping to ensure the basis for efficient and simple clearance procedures. The completion of the internal market, the reduction of barriers to international trade and investment and the reinforced need to ensure security and safety at the external borders of the Union have transformed the role of customs authorities giving them a leading role within the supply chain and, in their monitoring and management of international trade, making them a catalyst to the competitiveness of countries and companies. The customs legislation should therefore reflect the new economic reality and the new role and mission of customs authorities. Use of information and communication technologies should be accompanied by harmonised and standardised application of customs controls by the Member States, to ensure an equivalent level of customs control throughout the Union so as not to give rise to anti-competitive behaviour at the various Union entry and exit points. 4

6 1.3 Has the UCC simplified the entry of goods and the procedures regarding the temporary storage? In the introduction of the UCC, written by the Commission, it is established 1 that the main objective of the UCC and the Commission Acts is to improve the working of the Customs Union of the EU as a unit and maximizing the uniform application of the customs legislation within the whole customs territory of the EU by the national customs services of the member States. In this new legal frame it is regulated in a very specific way the locations where non EU goods can be presented and the places where such goods can be stored in temporary storage.. Also the regulation specifies the operations that non EU goods can be subject to while in temporary storage. With this legal framework customs authorities of each Member State must apply and established procedures to ensure the duly application of the rules settled down. This means that even the Regulation is the same, each Member State implements and make their own interpretation of the EU Regulation producing different treatment and applying different procedures in Spain and The Netherlands, per instance. Unfortunately the customs background and expertise of the operators and authorities differs from one country to another and deals to a different implementation of the EU law. It should not be like this but in practise is what is happening. 2. Maritime terminals within the UCC. Following the logical flow of foreign trade, on an import operation the following steps must be followed: 1. Conveyance to the appropiate place ( 135UCC). The person who brings goods into the customs territory of the Union shall convey them without delay, by the route specified by the customs authorities and in accordance with their instructions, if any, to the customs office designated by the customs authorities, or to any other place designated or approved by those authorities, or into a free zone. 2. Presentation of goods to customs (139UCC ) Goods brought into the customs territory of the Union shall be presented to customs immediately upon their arrival at the designated customs office or any other place designated or approved by the customs authorities or in the free zone by one of the following persons... 1 Guía rápida para entender las principales novedades del Código Aduanero de la Unión., Jose Muñoz Barón y otros, Ateia,

7 3. Unloading and examination of goods. (140UCC) Goods shall be unloaded or trans-shipped from the means of transport carrying them solely with the authorisation of the customs authorities in places designated or approved by those authorities. 4. Goods in temporary storage (144UCC) Non-Union goods shall be in temporary storage from the moment they are presented to customs. 5. Conditions and responsibilities for the temporary storage of goods (147UCC) Goods in temporary storage shall be stored only in temporary storage facilities in accordance with Article 148 or, where justified, in other places designated or approved by the customs authorities. 6. Authorisation for the operation of temporary storage facilities (148UCC) An authorisation from the customs authorities shall be required for the operation of temporary storage facilities. Such authorisation shall not be required where the operator of the temporary storage facility is the customs authority itself. 7. Approval of a place for the presentation of goods to customs and temporary storage UCCDA As per the regulation mentioned (147 UCC and UCDDA) the maritime terminals could have the following legal qualification: Customs consideration: In this case all non EU goods received should be declared for a customs approved treatment at the same moment of arrival. A transit declaration is needed to move goods to a TSW. Places other than temporary storage authorised to store goods: It is a legal qualification subject to the same requirements than the temporary storage with the only difference there is no obligation for the maintenance of records. In this case all non EU goods received should be declared for a customs approved treatment at the latest the day after their arrival. Movements of goods out of the port zone must be done with transit subject to security provided by the main obligor. 6

8 Temporary storage: This legal qualification is subject to all requirements stated by article 148 UCC: authorisation required (can be used in more than 1 member state) persons holding such authorisation must be established in the Union should provide assurance of the proper conduct of operations must provide a guarantee must keep appropriate records can be authorised to move/transfer goods between temporary storage facilities using transit procedure, or with G5 message provided both facilities are A.E.O. Goods could be stored for 90 days until they are declared for a customs approved treatment. 3. Arrival of goods to the customs territory of the EU. The arrival at any Community port of a vessel initiates a complex process in which customs and other administrative bodies conduct checks on the goods intended to be introduced in order to ensure the compliance with the rules governing our economic area. In order for customs, and other administrative bodies involved, to be able to carry out their duties properly, customs legislation establishes multiple obligations for operators involved in this process of entering goods. The first step in customs will be to analyse the EU safety and security risk that could be caused by the goods that will be introduced in the EU territory. It is, therefore, an analysis of a quasipolice nature, aimed at detecting drug shipments, explosives, weapons, etc. This risk analysis will be based on the information communicated by carriers in the Entry Summary Declaration (ENS) which is the most common term in the EU. After this first analysis, customs will analyse the "customs status" or legal regime of the merchandise that transports the ship i.e. whether the merchandise is Union or non-union: Union goods are those which can circulate freely in EU because they have been manufactured in the EU or because they are third-country goods for which import duties have already been paid and have complied with all necessary controls according to EU standards. Non-Union goods are those from third countries which have not yet been subjected to this process of "communitarisation" by payment of duties and verification or controls established by Union legislation. When it is determined that a good is a Union product, the power of control of the customs will be ceased on the same, which is therefore limited to the control of the non-union goods. This second check will be based on data included in the second information declaration to be submitted to Customs during the introduction of goods: the TDSD Together with the fundamental obligation to submit these two informative declarations Entry Summary Declaration (ENS) and TDSD, operators will have to fulfil several secondary obligations: arrival notice, transfer of the merchandise to an authorized area, presentation of the goods before customs, obtaining of an Authorization for the unloading and movement of 7

9 the merchandise before its dispatch, some of which will be subsumed in the two informative declarations mentioned. From the unloading of the merchandise until its final customs clearance, it will be in a legal situation called Temporary storage that entails a series of limits to dispose of it. The process of introduction of goods will culminate with the presentation of the customs declaration (Single Administrative Document, SAD) by means of which the importer declares his will to destine the goods to a specific customs procedure (being the most common the release for free circulation or import ), And it communicates to the customs the elements so that it can calculate the customs duties derived from that declaration Thus, this new legal framework is regulated in detail: The places where goods not belonging to the Union and can be stored in temporary storage. The place of presentation of the goods shall no longer be the same as the temporary storage of the expedition. The sequence no longer has to be "introduction -> presentation ->Temporary storage In fact, there may be goods presentation without the temporary storage of the same, such as would occur in the case of an import under a "pre-sad".( 171UCC) The place to present goods and the place to store in temporary storage does not need to match. place to present CUSTOMS place to temporary storage TEMPORARY STORAGE TEMPORARY STORAGE authorised to present without an express approval OTHER PLACES AUTHORISED OTHER PLACES AUTHORISED A place other than the competent customs office may be approved where certain requiremntes are fullfileld 8

10 As we can see in the picture below the procedure by which the goods enter the Community have changed. INTRODUCTION OF GOODS IN THE EU CCC ENS UCC NOTIFICATION OF ARRIVAL TDSD SEQUENCES ASSOCIATION: They are simultaneous. The admission of TDSD assumes both the presentation of the goods and the discharge authorization TEMPORARY STORAGE 45 DAYS FOR CUSTOMS PROCEDURE EU goods shall remain under customs surveillance until their status is defined ENS NOTIFICATION OF ARRIVAL (G2) PRESENTATION OF GOODS (G3) TDD (G4) TEMPORARY STORAGE 90 DAYS FOR CUSTOMS PROCEDURE SEQUENCES DISSEMINATION Independent messages. Not developed yet. On an operative basis the former situation remains as a transitional measure. OTHER PLACE 90 DAYS FOR CUSTOMS PROCEDURE 3.1 Conveyance to the appropriate place As indicated before the person who brings goods into the customs territory of the Union shall convey them without delay, by the route specified by the customs authorities and in accordance with their instructions, if any,: either to the customs office designated by the customs authorities or to any other place designated or authorized by those authorities or to a free zone. 9

11 3.2 Presentation, unloading and examination of goods As per article 139 UCC goods brought into the customs territory of the Union shall be presented to customs immediately upon their arrival at the designated customs office or any other place designated or approved by the customs authorities or in the free zone by one of the following persons: (a) the person who brought the goods into the customs territory of the Union; (b) the person in whose name or on whose behalf the person who brought the goods into that territory acts; (c) the person who assumed responsibility for carriage of the goods after they were brought into the customs territory of the Union. Goods presented to customs shall not be removed from the place where they have been presented without the permission of the customs authorities. Article 115 (1) UCCDA states that a place other than the competent customs office may be approved, but where the place is already authorized for the purpose of operating the temporary storage warehouse, such approval shall not be necessary. So in the new legal frame, it is regulated in detail Where non-union goods can be presented The places where goods can be stored in temporary storage The place approved for the presentation of goods as referred to in Article 139 UCC could coincide with the place approved for temporary storage but is not necessarily the same. As per article 140 UCC goods shall be unloaded or trans-shipped from the means of transport carrying them solely with the authorisation of the customs authorities in places designated or approved by those authorities. Goods may only be unloaded from the means of transport in which they are under prior authorization from the customs authorities, except in the case of imminent danger requiring the immediate discharge The granting of authorization is linked to the Temporal Deposit Summary Declaration (TDSD. In accordance with article 4.4. fourth paragraph of Order EHA / 1217/2011 of 9 May (Order 9780/2011 of the Spanish Ministry of Economics and Tax), the activation of the TDSD in maritime traffic and the admission of the TDSD in air transport, are equivalent to the authorization for the discharge of the commodity. This means that in the maritime transport, the authorization of discharge is actually granted by the port authorities as TDSD is activated on the arrival of the ship 10

12 4. Temporary storage of goods. 4.1 Definition As per Article 5(17) UCC temporary storage' means the situation of non-union goods temporarily stored under customs supervision in the period between their presentation to customs and their placing under a customs procedure or re-export. So temporary storage refers to a legal situation. It starts from the time of the presentation of goods to customs and could last up to no more than 90 days, without a possibility of further extension. At the latest at the presentation of the goods to customs a TSD is to be lodged. A breach of this obligation may incur a customs debt for non-compliance. As per article 144 UCC non-union goods shall be in temporary storage from the moment they are presented to customs. Non-Union goods in temporary storage shall be placed under a customs procedure or re-exported within 90 days. So the period of goods in temporary storage has been extended and unified for all kind of goods. With the former CCC the periods were: 45 days for goods transported by maritime means 20 days for goods transported by means other than maritime means So in principle this change seems to be a simplification or a benefit so the operator has more time to decide what to do with its goods but in practice we will see that for liquid bulks this is not exactly the situation. 11

13 The temporary storage is characterized by the customs must know at all times where the merchandise is. Such merchandise may only be located in the customs premises or in premises specifically authorized by customs for this purpose: These premises are the Temporary Storage Warehouses. (TSW) It is also characteristic of this customs situation that a guarantee can be demanded from the person responsible for the goods and that the goods can only be subjected to the usual manipulations to maintain their conservation. The provisions of a guarantee become mandatory for authorisations to operate temporary storage facilities that are new, including those that are granted after a reassessment. There is a possibility to move goods between temporary storage facilities without declaring them for another customs procedure. 4.2 Temporary storage declaration Non-Union goods presented to customs shall be covered by a TSD containing all the particulars necessary for the application of the provisions governing temporary storage. The TSD shall be lodged at the latest at the time of the presentation of the goods to customs. Lodgment of TSD remains possible by means other than electronic methods in accordance with the requirements that are in force in MS by 1 May While the issuance of an MRN under the UCC becomes mandatory for the registration of TSD it is not mandatory on 1 May 2016 before the expiry of the transitional period. TSD could be lodged by one of the following persons: the person who brings the goods into the customs territory of the Union; the person in whose name or on whose behalf the person who brings the goods into that territory acts; the person who assumes responsibility for carriage of the goods after they were brought into the customs territory of the Union; any person who immediately places the goods under a customs procedure; the holder of an authorization for the operation of storage facilities or any person who carries out an activity in a free zone. These are the different forms of lodgment of TSD as per Article 145 (5) UCC a submission of the particulars of TSD; a reference to the ENS followed by a supplementary submission of the missing elements of the TSD such as the exact location of the goods in temporary storage. a cargo manifest or another commercial document submitted before arrival can be used as a TSD provided that it contains the required particulars of the TSD and is made available to customs authorities. Data elements included in this document, for example data pertaining to the location of the goods should be sufficient to 12

14 identify the holder of the temporary storage authorization to whom contact may be made by customs authorities to determine the precise location of the goods; Customs authorities may accept that commercial, port or transport information systems are used to lodge a TSD provided that they contain the necessary particulars for such a declaration. Data elements included in this document, for example data pertaining to the location of the goods should be sufficient to identify the holder of the temporary storage authorization to whom contact may be made by customs authorities to determine the precise location of the goods. Current data requirements for the TSD remain applicable during the transitional period. Following the deployment or upgrade of the relevant national IT systems the UCC DA harmonized TSD data set as provided in Annex B to UCC DA will become applicable. During the relevant transitional period there are no common data requirements. Pursuant to the third subparagraph of Article 2 (4) UCC DA MS must ensure that the respective data requirements are such as to warrant that the provisions governing the TSD can be applied. In particular, the TSD must always contain a reference to the ENS when it is lodged for the same goods and the lodgment of ENS is required. During the relevant transitional period MS should decide whether to apply the requirements for the application and authorizations for the operation of temporary storage facilities as defined in Annex B to the UCC DA or to use either: the data requirements established under the legislation preceding the UCC, UCC DA and UCC IA, or other alternative data requirements. 4.3 Conditions and responsibilities for the temporary storage of goods Goods in temporary storage shall be stored only in temporary storage facilities in accordance with article 148 or, where justified, in other places designated or approved by the customs authorities. Places other than temporary storage can be authorized to store goods No storage at customs is allowed. In case of presentation of goods in customs such goods must be immediately included in a customs regime, they must be assigned a customs procedure. In the event that the goods are presented in a TSW, they can remain in temporary storage situation for 90 days. If the goods are presented in "another place authorized as a temporary warehouse" they must be declared for a customs procedure on the day following their presentation, WORKING OF PLACES OTHER THAN TEMPORARY STORAGE FACILITY 115(2) UCCDA WORKING OF TEMPORARY STORAGE 148 UCC 13

15 The declaration for a customs procedure must be submitted "the day after its presentation" Period for temporary storage: 90 days Retail sales are prohibited Usual forms of handing only for conservation No combined storage No need of records Obligations of the holder: No subtraction from surveillance Comply with obligations arising from storage combined storage Need to keep records Obligations of the holder: No subtraction from surveillance Comply with obligations arising from storage Summary declaration is to be submitted. Movement of goods only by transit T Movement of goods only by transit or with G5 (between AEO TSW) Is the combined storage of Union goods with non-union goods allowed in the Temporary Storage warehouse? As per article 148(6) UCC The customs authorities may, where an economic need exists and customs supervision will not be adversely affected, authorize the storage of Union goods in a temporary storage facility. Those goods shall not be regarded as goods in temporary storage.. Combined storage of Union and non-union goods in a facility which is authorised to be used as a temporary storage facility, is possible only where Union goods can be identified. This identification is not possible, for instance, where non-union gasoil and Union gasoil are stored in one tank because this would require accounting segregation which is allowed only for customs warehousing. Where Union goods are stored together with non Union Goods in a storage facility for customs warehousing and it is impossible or would only be possible at disproportionate costs to identify at all times each type of goods, the authorization as referred to in article 211(1)(b) UCC shall establish that accounting segregation shall be carried out with regard to each type of goods, customs status and, when appropriate, origin of goods, as per Informa Criteria published on the AEAT website. (Spanish National Agency of Tax Administration). ( 14

16 So the legal conditions to storage of Union goods together with non union goods in a customs warehouse are the following: Combined storage in customs or other places approved for the presentation of goods is not allowed. It is not allowed to store Union and non Union goods Combined storage in other place approved as a temporary storage facility is not allowed Combined storage in a temporary storage facility is allowed. Union and non Union goods can be stored together if physical identification is possible Is it possible to use equivalents goods in the temporary storage? As per article 223.1UCC equivalent goods shall consist in Union goods which are stored, used or processed instead of the goods placed under a special procedure. Temporary storage is not a special procedure. Paragraph 2 of the same article defines the cases in which the use of equivalent merchandise is allowed, and the storage of temporary storage is not found in any of them Is it possible to blend goods in the temporary storage? As per article 147(2) UCC del CAU Without prejudice to Article 134(2), goods in temporary storage shall be subject only to such forms of handling as are designed to ensure their preservation in an unaltered state without modifying their appearance or technical characteristics. Due to the limitation provided by the regulations in terms of possible manipulations, mixtures of goods are not allowed in TSW Technical characteristics What shall be understood as technical characteristics? The simple coincidence in the CN code? To share the same product sheet? Same commercial specifications? A clear explanation of this concept is missing in the regulation and due to this is subject to multiple interpretations. A biding information from Customs should be applied in order to clarify this point. Also the Real Decreto 61/2006, of January 31, Determining the Specifications of gasolines, gas oils, fuel oils and liquefied gases of oil and regulates the use of certain biofuels is being applied in order to interpret this concepts. 15

17 4.3.5 Responsibilities and obligations The holder of the authorization referred to in Article 148 UCC or the person storing the goods in the cases where the goods are stored in other places designated or approved by the customs authorities, shall be responsible for all of the following: ensuring that goods in temporary storage are not removed from customs supervision fulfilling the obligations arising from the storage of goods in temporary storage. keeping records. Where, for any reason, goods cannot be maintained in temporary storage, the customs authorities shall without delay take all measures necessary to regularize the situation of the goods in accordance with Articles 197, 198 and 199 UCC. Where the holder of the temporary storage facility on arrival or departure of the goods does not comply with the requirements to inform the competent customs office where the facility is located, a customs debt for non-compliance could incur pursuant to Article 79 UCC. Penalties that are provided under the national law remain applicable. 4.5 Authorization The presentation of the goods on arrival in the customs territory of the Union and the temporary storage of goods should as a general rule take place in the premises of the competent customs office or in temporary storage facilities operated exclusively by the holder of an authorisation granted by the customs authorities. However, in order to achieve additional flexibility for economic operators and customs authorities, it is appropriate to provide for the possibility to approve, a place other than the competent customs office for the purposes of the presentation of goods or a place other. An authorization from the customs authorities shall be required for the operation of temporary storage facilities. Such authorization shall not be required where the operator of the temporary storage facility is the customs authority itself. The conditions under which the operation of temporary storage facilities is permitted shall be set out in the authorization. The authorization referred before shall be granted only to persons who satisfy all of the following conditions: they are established in the customs territory of the Union; they provide the necessary assurance of the proper conduct of the operations; an authorized economic operator for customs simplifications shall be deemed to fulfil that condition insofar as the operation of temporary storage facilities is taken into account in the authorization referred to in point (a) of Article 38(2) UCC; they provide a guarantee in accordance with Article 89 UCC. Where a comprehensive guarantee is provided, compliance with the obligations attached to that guarantee shall be monitored by appropriate audit. 16

18 The authorization referred shall be granted only where the customs authorities are able to exercise customs supervision without having to introduce administrative arrangements which are disproportionate to the economic needs involved. The holder of the authorization shall keep appropriate records in a form approved by the customs authorities. The records shall contain the information and the particulars which enable the customs authorities to supervise the operation of the temporary storage facilities, in particular with regard to the identification of the goods stored, their customs status and their movements. An authorized economic operator for customs simplifications shall be deemed to comply with the obligation referred to in the first and second subparagraphs, insofar as his or her records are appropriate for the purpose of the operation of temporary storage. Requirements for a place other than temporary storage authorization (art UCCDA) Requirements for a temporary storage authorization (Art. 148 UCC) To be established in the customs territory of the Union Provide necessary security with regard to the proper execution of operations. Provide guarantee To be established in the customs territory of the Union Provide necessary security with regard to the proper execution of operations Provide guarantee Do not be disproportionate administrative cost Do not be disproportionate administrative cost No records required To keep records in the way approved by customs authorities. Exclusive operation of the installation by the owner Dangerous goods or those requiring special installation: the necessary conditions must be fulfilled 5. Problems arised since May 1st Even though the entry into force of UCC was expected as a modernisation and simplification of customs procedures, let me remind that the UCC was designed as part of the modernisation of customs and would: streamline customs legislation and procedures; 17

19 offer greater legal certainty and uniformity to businesses; increase clarity for customs officials throughout the EU; simplify customs rules and procedures and facilitate more efficient customs transactions in line with modern-day needs; complete the shift by Customs to a paperless and fully electronic environment; reinforce swifter customs procedures for compliant and trustworthy economic operators (Authorised Economic Operators). The real situation is that in this area ( liquid bulks) and from the 1st of May procedures have became slower and more complicated than they use to be, resting agility to the business and competitiveness to companies. The new regulation as interpreted by Spanish customs authorities has lead us to the following situation with these consequences: 1. Maritime Terminals need to become Temporary storage facilities 2. and be granted with the corresponding authorisation. All Terminals have a clear need, in order to store non Union goods, to have an authorization as Temporary storage facility, while being aware of the obligations inherent therein (keeping records) and of the responsibilities that are required of them (ensuring that goods are not abducted from customs supervision and from complying with the obligations arising from storage. This involves that a guarantee needs to be in place and should cover the whole potential customs debt which in most cases is huge and difficult to be effectively provided. As these terminals are AEO thy have the possibility to apply for an exemption of this provision but in order to be granted so they need to apply for a comprehensive guarantee as per article...ucc. Currently they are immerse in this process and they are receiving strong requirements accrediting they fulfil with all the necessary requirements even though they are AOE. This leads us to the situation that in practice no comprehensive guarantee has been granted yet. The calculation of the reference amount (article 84 UCCDA) for this customs debt and the means to control the customs debt does not over pass this reference amount seems to be the main goal to be controlled by customs offices. 3. In the temporary storage facilities no equivalents goods are permitted. This means that in he same tank terminals cannot store non Union and Union products together with the practical difficulties it involves. So if a vessel arrives in Terminal with a certain product and this same product is already stored in a tank but with Union goods the vessel can not discharge in the mentioned tank but in a new one. From a practical and economic point of view this is not feasible as Maritime Terminals do not have an unlimited number of shore tanks 4. Goods in temporary storage may only be kept in an unaltered state without modifying their appearance or technical characteristics. In accordance with art. 134(2) UCC it is possible to sample or examine the goods. (art. 147(2) UCC). The consequence of this is that during goods are in this situation they can not be stored with other goods even if they have they same CN code, technical characteristics, 18

20 commercial quality and status. Liquid bulks must be discharge, in consequence, in a empty tank in order to fulfil with this and as said before from a practical and economic point of view this is not feasible as Maritime Terminals and operators do not have an unlimited number of shore tanks. So no blending operation in temporary storage is allowed. 5. The trading business of liquid bulks (specially hydrocarbons) demands agility in all the processes of loading, unloading, transfers, logistics and customs procedures and all the provisions stated for this procedures have been reinforced since May 1st making them slower and in some situations lack of sense. 6. Once of the solutions provided by customs offices to avoid the impossibility of discharging a no Union product due to the undisposal of an empty tank, is to permit the discharging in a tank wit the same product (Union or non Union ), submitting immediately after a customs declaration to link the product to the customs warehouse, where the storage of equivalent goods is permitted and some commingled storage be done. The entry into the records of the customs warehouse is mandatory, Of this practice we can draw the following conclusions (?): This is just a documentary fiction (to register the product in the customs warehouse books instead of the temporary storage one) as product is physically discharge commingled with another product in the same tank. The period of 90 days to have a product in temporary storage and decide what to do with it prior to place it in any customs procedure becomes meaningless as goods must be placed in a customs warehouse immediately. Some offices understand this term as just after the outturn figures are known while others understand it as just after the summary declaration is activated and before unloading the product, using the manifested quantities. Again we see another example of how UCC does not fulfil with the scope of the harmonisation and the offering a greater legal certainty and uniformity to businesses. The uniform application of the Regulation is not followed not only in different member states but neither in the different customs offices of the same member state. Duplicity of the work to be done as regardless of the real wanted destination of the goods they necessarily need to be linked in advance to the customs warehouse with all the paper work, time and cost that this involves. For instance if a non Union product need to be discharged, there is not an empty tank available a customs declaration to link to customs warehouse need to be submitted even if in advance it is known the product will be re-exported or imported. Before: Temporary Storage Re-exportation: Exit Summary Declaration to be submitted by shipping agent. Imported: customs declaration to release for free circulation/ consumption. Period: 45 days, Now: Temporary Storage 19

21 Re-exportation: customs declaration to link to customs warehouse + customs declaration to re-export. ( 2 customs declarations!!) Imported: customs declaration to link to customs warehouse + customs declaration to release for free circulation/consumption. ( 2 customs declarations!!) Period: in theory 90 days, in practice 1 day. Other serious issues arise from the blending operations regarding the difficulty to draw the line between the usual form of handling according Annex and the Inward processing procedure, IPR, but I will not enter to analyse this topic as this subject is not the scope of this thesis. 6.Proposed solutions After the above exposition I would like to finalize this document exposing some possible solutions to deal with the situation explained that would lead to a simplification of procedures without diminishing the proper control customs is aim to exercise and facilitating trade, business and the competitiveness of business which at the end results in benefit for the whole Union: 1. To allow the use of equivalent goods in the temporary storage of goods provided they have the same CN code, technical characteristics and commercial quality. As commented above in practice with the current situation the product is discharged in the same tank, the only difference is the administrative work of submitting different declarations and doing the entries in the proper book records. 2. To take samples on board the vessel. In order for customs to exercise its control samples can be taken before the discharging of the goods so there is a certain and proof of the product that is entering the Community. So the control by customs is granted 3. To allow the customs clearing on board. A different operation is proposed from the current one and that, apparently, it is carried out in other installations of the EU, that would allow the holders of these facilities to assume their business and their commitments with better chances of success: presentation of a customs declaration ex Article 171 UCC with a provisional amount. presentation of the goods (article 139 UCC in relation to article 172 UCCDA regarding their admission) on board. presentation of a customs declaration. samples taken on board by a surveyor. 20

22 unloading of the product in the tank with other product Union and non Union products/goods provided they have the same CN code, technical characteristics and commercial quality. Literature list Guía rápida para entender las principales novedades del Código Aduanero de la Unión, José Muñoz Barón, Ateia 2016 Los regímenes especiales. Tratamiento en el código aduanero de la Union y sus normas de desarrollo. Asociación española de concesionarios de zonas y depósitos francos, Código aduanero de la Unión: Gestión aduanera, áreas exentas y O.E.A. José Muñoz Barón, Ateia