Notice No. 1193 - Regulations on Customs Warehouses
Notice by the Revenue Commissioners
Notice No. 1193 (Rev. 3). - European Union Regulations on Customs Warehouses
1. Introduction
The customs warehousing procedure is governed by the provisions of Council Regulation (EEC) No. 2913/92 (the Customs Code) and its Implementing Commission Regulation (EEC) No. 2454/93.
This is not a legal document and is intended for general information only.
2. Scope of the procedure
The customs warehousing procedure provides for storage in a customs warehouse of:
- non-Community goods without such goods being subject to import duties or commercial policy measures,
- Community goods (principally CAP goods entitled to payment of export refunds) which are subject to particular export arrangements by virtue of being warehoused.
The customs warehousing procedure does not preclude the imposition of normal import or export prohibitions or restrictions on the goods.
3. Types of customs warehouses
A customs warehouse means any place approved by and under the supervision of Revenue where goods may be stored under the prescribed conditions. A customs warehouse may be either a public or a private warehouse. A public warehouse is a customs warehouse available for use by any trader for the warehousing of goods. A private warehouse is a customs warehouse reserved for the warehousing of goods by the warehousekeeper. Revenue will accept applications for the following types of customs warehouses:
Type "A": A public customs warehouse available to any trader for the warehousing of goods where the authorised warehouse-keeper is responsible for ensuring that the goods remain under Revenue supervision and that all conditions attached to the customs warehouse authorisation are being complied with. The duty is assessed on the basis of the value of the goods at the time of release for free circulation. This type of warehouse has its physical location defined.
Type "C": A private customs warehouse reserved for the warehousing of goods by the authorised trader. The trader must be the depositor of the goods but does not have to be the owner of the goods. The duty is assessed on the basis of the value of the goods at the time of release for free circulation. This type of customs warehouse has its physical location defined.
Type "D": A private customs warehouse with the same conditions as type C but the trader has the option of having the goods assessed for duty either on the basis of their value at the time they were placed in the customs warehouse or at the time of release for free circulation. This type of customs warehouse has its physical location defined.
Type "E": A private warehouse in which the authorised trader and his commercial accounting and stock control systems are authorised rather than a defined physical location. However the address of all the facilities in which goods are to be stored must be noted on the authorisation. The methods for charging duty are the same as those applied to Type D.
4. Authorisation to operate a customs warehouse
A person wishing to operate a customs warehouse must apply in writing for approval to the local Revenue Office. The official application form will be provided by that office and must be accompanied by:
- a professional drawing of the premises,
- proof that an economic need for warehousing exists,
- evidence that the applicant is established in the Community and can provide the necessary guarantees to cover the risk associated with the storage of goods.
Conditions of approval will apply. The procedure must be capable of being supervised and monitored without disproportionate official cost.
5. Placing of goods under the customs warehousing procedure
A declaration is required for all goods intended to be placed under the customs warehousing procedure. Where the goods are being declared for the customs warehousing procedure at point of importation, Procedure Code 7100 must be used in Box 37 of the SAD. The goods must be entered in the stock records as soon as they are brought into the customs warehouse.
6. Stock records
The warehousekeeper must keep stock records of all goods deposited in the customs warehouse. These records must contain all the information necessary for the proper application and control of the warehousing procedure. The stock record system must be approved by Revenue in advance of authorisation and must ensure control of stock movements and provide sufficient detail to facilitate assessment of customs duty and enable checks to be carried out by Revenue. All customs warehouse transactions are subject to Revenue audit.
7. Usual forms of handling
Goods placed under the customs warehousing procedure may undergo the usual forms of handling necessary to ensure preservation, marketable quality, or to prepare them for distribution or resale. Usual forms of handling must conform to those listed at Annex 72 of the Implementing Provisions Regulation No. 2454/93. Prior approval must be obtained before any forms of handling are carried out.
8. Temporary removal of goods from customs warehouse
Goods under customs warehousing control may be temporarily removed from the customs warehouse. A written application, in duplicate , must be made by the warehousekeeper to the local Revenue office for authorisation to remove the goods. Alternatively, where a warehouse keeper intends to remove goods regularly on a temporary basis, the customs warehouse authorisation may indicate approval for temporary removal of the goods.
The normal provisions will apply where "usual forms of handling" are carried out while the goods are temporarily removed from the customs warehouse.
9. Transfer of goods between customs warehouses
Transfer of goods between customs warehouses is allowed subject to prior approval of the local Revenue office.
10. Common storage of goods in a customs warehouse
Subject to prior approval being given by Revenue, Community and non-Community goods may be stored in the same storage areas provided that specific ways of distinguishing between both categories are available.
11. Discharge of the customs warehousing procedure
The customs warehousing procedure may be discharged by any of the following:-
- release for free circulation or placing under another customs procedure;
- placing in a free zone;
- re-exportation;
- abandonment to the State;
- destruction under official supervision.
12. Valuation of goods for duty purposes
Where a liability to customs duty arises, the customs value is determined under the provisions of Council Regulation (EEC) No. 2913/92 and Commission Regulation (EEC) No. 2454/93. Where the customs value is based on a price actually paid or payable which includes the cost of the warehousing and of preserving goods while they remain in the warehouse, such costs need not be included in the customs value if they are shown separately from the price actually paid or payable for the goods.
13. Rate of duty chargeable
The rate of duty normally chargeable is that applicable on the date the liability to import duty arises.
14. Release for free circulation
Goods leaving the customs warehousing arrangements for free circulation must be entered on a SAD declaration, accompanied by any necessary documentation and relevant customs charges must be paid. However, where a deferred payment arrangement has been entered into, a periodic entry may be lodged not later than the last working day of the month in which the goods are delivered for free circulation, payment being made not later than the 15th day of the month following that of delivery. Where goods are entered for the customs warehousing arrangements following the inward processing procedure and are subsequently released for free circulation, the indication "I.P. goods" must be entered in Box 31 of the SAD.
15. Re-exportation of goods from a customs warehouse
A SAD declaration must be presented in respect of goods being re-exported. Evidence that the goods have left the customs territory of the Community is to be kept at the disposal of Revenue by the warehousekeeper.
16. Processing in a customs warehouse
Where an economic need exists and the operation can be supervised, Revenue may allow processing to take place in a customs warehouse in accordance with the rules applying to the inward processing(IP) regime or to the processing under customs control(PCC) regime. Applications for authorisation to use IP or PCC should be submitted to Economic Procedures Section, Nenagh.
17. Warehousing of goods subject to the common agricultural policy (CAP)
Special provisions govern the procedures to be complied with and the documentation required in respect of CAP goods entered for the customs warehousing procedure.
18. Simplified procedures
Provisions exist for simplified procedures for declaration and presentation of goods at import, export, entry for free circulation, processing in a customs warehouse and on transfer of goods between warehouses. Applications for simplified procedures should be made to the local Revenue office.
19. Security
A bond is required to cover the risk associated with the storage of goods in a customs warehouse. The amount of the bond is assessed on the basis of the value of the goods warehoused, stock turnover and rates of duty applicable.
20. Further information
Further information may be obtained from any local Revenue office or from Economic Procedures Section, St Conlons Road, Nenagh, Co Tipperary, Tel. 067-63204/63237, Fax 067-32373 or email: revcep@revenue.ie
Last Updated: November 2009