Part 9 Suspensions from customs duty

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1 Suspensions from customs duty N /3 73

2 1.4.18/3 74

3 Section 1: Background Scope Under directly applicable EU legislation certain goods benefit from a temporary suspension or reduction of customs duty. This Part explains the background to, the scope and coverage of these temporary suspensions Purpose Temporary tariff suspensions are designed to allow manufacturing industries within the EU to compete on equal terms with non-eu producers of finished products. This is achieved by permitting the complete or partial suspension of import duties on components or raw materials for further processing which are not available - or not in sufficient quantity - within the EU. In the absence of the availability within the EU of competing equipment, duty suspension may be provided for in the case of manufacturing equipment. Duty suspensions can also be granted for parts which on importation do not require major modification and could be classed as finished products provided the added value of the assembly operation is sufficiently high Publicity 6The EU7 publishes details of new requests for duty suspensions submitted by Member States67. This information appears on the 6DIT7 website Time limits The expiry date of all temporary suspensions is now 31 December 2008 from an exercise by the European Commission aimed at reducing the amount of suspensions that currently exist. All measures will automatically be renewed for a further three years from 1 January 2009 unless they no longer meet the criteria. Requests for existing measures to be withdrawn or amended from 1 January or 1 July each year need to be submitted by 15 March or 15 September respectively as it takes approximately nine months for these requests to be actions. Changes to the status of duty suspensions and new duty suspensions coming into force on either 1 January or 1 June are published in the Official Journal of the European Union (O.J.) Copies of these publications can be purchased from The Stationery Office67. Traders may find it helpful to obtain these documents for reference purposes and to aid Customs clearance Other duties/taxes It should be borne in mind that goods to which temporary suspensions apply remain chargeable with other EU duties (for example, anti-dumping duty) or with UK taxes (such as value added tax) Role of the Union The decision on whether a particular product is granted suspension or whether a suspension measure should continue is taken by the Member States of the EU on the basis of a proposal from the EU Commission. In preparing its proposal for a Regulation the Commission, in co-operation with Member States, will take account of the economic criteria applying to each individual request/ renewal Responsibility in the UK Requests for information on duty suspension should be made to the 6Department for International Trade (DIT)7, except in the case of fishery products which should be addressed to the Department for Environment, Food and Rural Affairs (DEFRA). 6DIT7 publicises information on non-fishery suspensions and deals with enquiries other than classification issues6 concerning this regime7. Classification questions should be put to HM Revenue and Customs. Importers seeking the introduction of duty suspensions should contact 6DIT7 or look upon their website, the address of which can be found at paragraph Similarly, if any UK traders already produce or will be producing in the near future competing goods for which a temporary suspension has been granted or is the subject of a new request, 67 they should make representations to the DTI. The contact details are as follows: 6grant.mosedalewtrade.gsi.gov.uk or phil.walkerwtrade.gsi.gov.uk7 67 Mr Simon Doggett (Fisheries suspensions only) Department for Environment, Food and Rural Affairs Fishing Industry Management Division Area 7E 3-8 Whitehall Place London SW1A 2HH Tel Fax: simon.doggettwdefra.gsi.gov.uk Categories of suspensions There are three main categories of suspension and these are described in Sections 2-4 below. In addition Section 5 gives information about goods imported from Turkey and Section 6 draws attention to special conditions which apply to some suspensions. Section 2: General temporary suspensions Coverage These customs measures cover goods in the chemicals and related sectors, the micro electronics and related sectors, certain fisheries products and a few agricultural products which are used by the food processing industry. The goods which benefit from a temporary suspension are specifically identified against this description in Volume 2 by the symbol S together with the reduced rate of duty. Where necessary, further details are included either as a footnote or in the Additional Information at the end of the particular Tariff Chapter concerned. Section 3: Goods imported for use in particular aircraft Coverage This category covers certain goods imported for use in two ways: For use in the construction, maintenance and repair of aircraft of an unladen weight exceeding 2,000 kg. Helicopters of an unladen weight exceeding 15,000 kg may not benefit from these suspensions For use in the construction, maintenance and repair of aircraft built within the EU or for use in aircraft imported duty-free Traders should also be aware of the special concessions available under Inward Processing Relief (IPR) which are available for the import of parts and components for civil aircraft. IPR may be available for a wider range of items than duty suspension without the normal export criteria which normally applies with IPR. Further details are available from HM Revenue and Customs Advice Centres. N /3 75

4 9.3.2 Identification within Volume 2 The goods which benefit from this category of temporary suspension are identified in Volume 2 by a reference in column 1 and footnotes. Note: The end-use Tariff heading 8803 is not to be used for goods excluded by Notes 2 and 3 to Section XVII of the Tariff. In general, the heading only applies to airframe parts, undercarriages and undercarriage parts, propellors and transmissions and rotors of helicopters. However, goods not proper to 8803 may be eligible for a suspension under their correct subheading Enquiries concerning scope Not allocated Other reliefs from duty Where goods are indicated for use in the construction, repair or maintenance of aircraft but are not eligible for suspension of duty under this section, they may be eligible for suspension under general temporary suspensions or may be entitled to a preferential rate of duty (see Part 7 of this Volume). Code number Description (89.03) Yachts and other vessels for pleasure or sports; rowing boats and canoes: Other Sailing boats, with or without auxiliary motor: Sea-going Motorboats, other than outboard motorboats: Sea-going (89.04) Tugs and pusher craft: Tugs Pusher craft: Sea-going (89.05) Light-vessels, fire floats, dredgers, floating cranes, and other vessels the navigability of which is subsidiary to their main function; floating docks, floating or submersible drilling or production platforms: Dredgers: Sea-going Other: Sea-going (89.06) Other vessels, including warships and lifeboats other than rowing boats: Warships Other Sea-going Section 4: Goods for certain categories of ships, boats and other vessels (shipwork goods) (including goods for drilling or production platforms) Coverage Customs duties are suspended for goods which are intended to be incorporated in ships, boats or other vessels listed in the tariff subheadings below, for the purposes of their construction, repair, maintenance or conversion; and for goods intended for fitting to or equipping such ships, boats or other vessels: Code number Description (89.01) Cruise ships, excursion boats, ferry boats, cargo ships, barges and similar vessels for the transport of persons or goods: Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferry boats of all kinds: Sea-going Tankers: Sea-going Refrigerated vessels, other than those of subheading : Sea-going Other vessels for the transport of goods and other vessels for the transport of both persons and goods: Sea-going (89.02) Fishing vessels; factory ships and other vessels for processing or preserving fishery products: Sea-going Of a gross tonnage exceeding 250 tons (GRT) Of a gross tonnage not exceeding 250 tons (GRT) Coverage (drilling/production platforms) Customs duties are suspended on goods intended for incorporation in fixed drilling or production platforms (within subheading ) operating offshore and for incorporation in floating or submersible drilling or production platforms (of subheading ); for the purposes of their construction, repair, maintenance, conversion or equipping Goods such as motor fuel, lubricants and gas, which are necessary for the operation of machines and apparatus which do not affect permanently, and are not integral parts of the platforms and which are used on board for their construction, repair, maintenance, conversion or equipping may nevertheless be regarded as being imported for incorporation in drilling and production platforms and may therefore also benefit from the customs duty suspension Customs duties are suspended for tubes, pipes, cables and their connection pieces linking these drilling or production platforms to the mainland All goods imported under this relief are subject to the end-use controls described in Section 6 below Any enquiries concerning the application of this suspension are to be addressed to Trade Policy Group Suspensory Relief Team, HM Revenue and Customs at the address in paragraph below. Section 5: Reduced rates and tariff quotas Goods from Turkey Certain goods referred to under the terms of Section 2 above which originate in or are in free circulation in Turkey may additionally benefit from a lower or nil suspended rate. For further details see Notice /3 76

5 9.5.2 Reduced rates and tariff quotas In addition to the arrangements referred to in paragraph above, reduced or nil rates of duty may also apply to certain goods under the arrangements mentioned in Parts 7 (Preferences) and 8 (Tariff quotas and ceilings) of this Volume. unserviceable parts which are imported for repair When more than one tariff concession applies Importers will wish to ensure that their goods are entered at the most advantageous rate. Where goods are potentially eligible for both suspension of customs duty and preference at equally beneficial rates, importers should be alert to the possibility that a claim to suspension may be easier to substantiate than eligibility to preference, since the former generally requires no supporting documentation. Similarly, eligibility to suspension of customs duty may be easier to substantiate than relief from duty under a tariff quota Eligible certificates Any certificate of airworthiness issued by a party authorised by European aviation authorities or aviation authorities of a third country will be valid to enter goods under this procedure Presenting the certificate of airworthiness Section 6: End-use relief (control by HM Revenue and Customs) End-use relief End-use relief is designed to assist particular industries and trades within the EU by provision of a favourable rate of customs duty and/or levy on certain goods imported from non-eu countries provided those goods are put to a prescribed use End-use control All aircraft and shipwork duty suspensions (referred to in Sections 3 and 4 above) and certain temporary duty suspensions (referred to in Section 2 above) are granted subject to the fulfilment of a condition concerning the final use of the goods. In order to satisfy a claim to that suspension from duty, goods in these circumstances are subject to control by HM Revenue and Customs, after importation or release from customs warehouse, to confirm that the goods are put to the use declared at the time of importation Further information Detailed information is in Part 11 of this Volume (End use relief: goods for a prescribed use). Queries which cannot be resolved with local customs and excise staff should be addressed to The certificate should be presented to Customs when the goods are declared for release to free circulation. However, in some instances the certificate may not be available or packed in the container etc. In these instances you will have the following options: a commercial invoice or a document annexed to such invoice and signed by the seller of the goods should be endorsed: For the following goods of (this invoice)/(invoice no... of... )* the following airworthiness certificates (see column 2) have been issued by the company shown in column 3 authorised by the aviation authority shown in column 4 of the country shown in column 5. Position No of air- Issuer of Name of Name of No on worthiness the the the the certificate certificate authorising country invoice aviation country (1) (2) (3) (4) (5) N Section 7: Aircraft parts imported with a certificate of airworthiness Council Regulation No 1147/2002 suspended customs duties on parts, components and other goods of a kind incorporated in or used for civil aircrafts for which an airworthiness certificate was issued by a party authorised by European Aviation authorities or aviation authorities of a third country falling within chapters of the Common Customs Tariff. There is no requirement to use either end-use relief or a suspensory relief ie IPR. The scheme does not cover semi-manufactured parts, parts imported with a certificate of conformity or raw materials Eligible parts Parts, components and other goods falling within chapters of the Tariff of a kind to be incorporated in or used in the manufacture, repair, maintenance, rebuilding, modification or conversion of civil aircraft imported with a certificate of airworthiness may be entered to this procedure. It does not cover: semi-manufactured parts or components or raw materials which have a manufacturers certificate of conformity; or * when the declaration is annexed on a separate sheet, invoice no and date should be inserted. where simplified procedures are approved (CFSP, SDP, LCP), the certificate does not need to be presented when the goods are released for free circulation, but must be available to be verified when the supplementary declaration is submitted. You should keep the certificate with your records and make it available to our officers, if requested, at audit Import of parts under the certificates of airworthiness procedure The Tariff Volume 3 Part 3 tells you how to complete Form C 88 (SAD) in full /3 77

6 You should complete the C 88 (SAD) with the following information: Box Description 31 Description of the goods 36 Enter code 119 tariff suspension subject to airworthiness certificates 37 CPC (if the commodity code is subject to end-use control) or (if the commodity code is not subject to end-use relief) 44 Enter Document Code Identifier A119 Document Status AE or GE Declare import with airworthiness certificate as an A10100 AI Statement. For CPC ONLY Enter AWC as the SPOFF A1 statement in all fields apart from the country code which should be entered as GB. Document code N990 Authorisation number EU 9999/999/99 You must apply for the entry to be amended as soon as you become aware of the error. If you wish to make a Non Revenue amendment you should send the original C88 entry together with a substitute C88 entry completed with the amendments required. The entry number of the original entry should be written in box 40 of the substitute entry to provide an audit trail. Include any supporting documentation you have to show evidence of why the amendment is required to: The Post Clearance Amendments Team Custom House Furness Quay Salford Greater Manchester M50 3XN The substitute entry will be given a new entry number. This new stamped C88 entry will be sent to you and provides you with evidence of your amendment Imports of mixed consignments If you import mixed consignments of goods, some of which may be entered to the Certificate of Airworthiness scheme and others to different customs procedures or free circulation you must complete a separate declaration for each procedure (see volume 3 part 3 of the Tariff) Amending an entry Goods entered to Free circulation in error If goods are entered in error to free circulation instead of under the certificate of airworthiness scheme you may be allowed to amend the entry providing: you apply for the entry to be amended as soon as you become aware of the error; a certificate of airworthiness was available and you were eligible to use the scheme when the goods were entered; and the goods will immediately be entered to duty suspension under the scheme. If you wish to amend an entry you should send the original C88 entry together with a substitute C88 entry completed with the amendments required. The entry number of the original entry should be written in box 40 of the substitute entry to provide an audit trail. Include any supporting documentation you have to show evidence of why the amendment is required, for example a copy of the airworthiness certificate relevant to the goods must be included. These documents must be sent to the CIE (Customs Input Entry) Seat: The CIE Seat National Clearance Hub Custom House Furness Quay Salford Greater Manchester M5 2XX The original entry will be invalidated and the substitute entry will be given a new entry number. This new C88 entry is the document which provides you with evidence of your entitlement to relief on these goods. Please any enquiries to: nchciewhmrc.gsi.gov.uk Non Revenue Amendments Where there is no change to Customs procedure or any other change to an entry which does not result in any monetary impact this is a Non Revenue amendment /3 78

6.1 Community Status. Other Documents and Procedures

6.1 Community Status. Other Documents and Procedures : Other Documents and Procedures 6.1 Community Status 6.1.1 Introduction The terms Community status or Community goods are applied to both goods originating in an EU Member State and goods imported into