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General Customs Rules and Procedures 1. Customs Code – Council Regulation (EEC) 2913/92 Regulation laying down provisions for the implementation of Council.

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Presentation on theme: "General Customs Rules and Procedures 1. Customs Code – Council Regulation (EEC) 2913/92 Regulation laying down provisions for the implementation of Council."— Presentation transcript:

1 General Customs Rules and Procedures 1

2 Customs Code – Council Regulation (EEC) 2913/92 Regulation laying down provisions for the implementation of Council Modernized Customs Code (MCC): EP and Council Regulation No 450/2008 Regulation (EEC) No 2913/92 establishing the Community Customs Code – Commission Regulation (EEC) 2454/93 Relevant Acquis 2

3 Customs Act nr. 88/2005 Regulation No 630/2008, on preferential customs treatment of various type Regulation on the custody and customs clearance of goods No 1100/2006 Administrative Procedures Act No 37/1993 Legal Environment 3

4 Customs Territory Country, islands and skerries as boundary in accordance with well as twelve nautical mile Icelandic customs territory also includes the airspace above the aforementioned land 12 miles Hafnarfjörður Officers 101 Other Personnel 213 Employees

5 The general rule is that importers are responsible for declaring goods and for the payment of import charges Importers may grant to customs brokers authority to act on their behalf before the customs authorities Customs Representation 5

6 Directorate of Customs grants operating licenses for Customs brokers Strict conditions are for granting licenses: Certification of financial competence and a criminal record certificate Description of the activities containing information on the proposed working arrangements and where and how the proposed activities will be conducted, including information on accounting, safeguarding of data, internal control and names of the employees Customs Brokers 6

7 Whoever imports goods for resale, for delivery without remuneration or for own use, or who becomes responsible for the payment of duties is liable for duty All goods imported are subject to duty according to the Customs Tariff in Annex to the Customs Act Customs Debt 7

8 Import charges fall due when a permit has been given for their release for domestic use Import charges shall fall due not later than six months from the date of arrival of the transport vessel to the country Import charges on goods which have been placed in a bonded warehouse, free zone, duty free supplies or a duty free shop fall due when a permit has been given for their release for domestic use Incurrence Debt 8

9 Importer of goods is liable for the payment of import charges Customs broker can also act before the customs authorities on behalf of an importer with regard to the customs treatment of goods Together with the importer the broker shall be fully responsible for the payment of import charges Liability of the customs broker is cancelled if import charges have been debited to the importers account Recovery/Payment of Import Duty 9

10 Parties recorded in the VAT register shall enjoy deferment of payment on import charges provided they are not in arrears with payments to the State Treasury Each period of settlement shall be two months: January and February, March and April, May and June, July and August, September and October and November and December Deferred Payment 10

11 Deferment of Payment Period of Settlement and Due Dates Vehicles Alcohol January February March April Importers in General Due Date Excise Duties VAT Due Date of Payment is the second workday after the 15 th of each month 11 If paper declaration is used VAT payment must follow immediately and excise duty on registration

12 The due date of payment for express consignments shall be seven days after customs clearance of a consignment When goods are delivered from the custody of a transporter or from a storage area for uncleared goods without proper permit from the Directorate the import charges shall fall due Deferred Payment – cont. 12

13 The Directorate is in charge of customs auditing Customs auditing covers any kind of inspection as to the correctness of information submitted in declarations to the Directorate according to law and any kind of inspection as to the correctness of payment of import charges after their levy Customs auditing covers, inter alia, comparison of information submitted to by electronic means with accounting records, including relevant supporting documentation The police is obliged to render necessary assistance Customs Auditing 13

14 Importer who holds a permit for EDI customs clearance must keep in his custody all computer data concerning customs clearance for six years from the date of customs clearance Directorate is authorized to reassess import charges payable by an importer on consignments which the importer has electronically cleared through customs during the last six years If an importer submits incorrect information on paper documents, reassessment of import charges is only possible within 60 days of the customs clearance Reassessment of Import Duties 14

15 In case of a dispute concerning decisions made by the Directorate, a written complaint supported by arguments and necessary documentation can be filed The time limit for complaints is 60 days from the date of customs clearance A ruling on a complaint shall be made as soon as possible and no later than within 30 days from the procurement of data Appeal Procedure 15

16 The ruling of the Directorate can be appealed to the State Customs Board within 60 days from the date when a ruling or decision was mailed An appeal to the State Customs Board does not delay the judicial effect of the ruling A ruling by the State Customs Board is a conclusive decision at the administrative level Appeals to general courts ruled on by the Board do not delay or alter the conclusions of the Board until judgement has been passed Appeals to the State Customs Board 16

17 Appeals Process seems to be similar in Iceland and the European Union Deferred Payment: Iceland – Main rule, deferred payment 2 months EU: 1 month or maximal up to approx 6 weeks Time limit for storing goods in a warehouse without paying duties is six months in Iceland Gap Analysis 17

18 All imported and exported goods shall be recorded in a manifest Excluded are goods stored in a vessel and the luggage of passengers and crew Uncleared goods which are not recorded in the manifest must not be removed from a vessel unless they are at the same time produced before the customs and a permit received for their removal from the vessel Goods shall be manifested electronically to the customs port which is their destination Entry of Goods 18

19 Importation of Goods 19 Arriving Vessel Manifest submitted Importer (Broker) Arrival Clearance Arrival Date Customs Clearance Delivery Permit Customs Clearance Delivery Permit Customs Customs Declaration Temporary storage Transporter, broker, postal storage or bonded warehouse Deferred Payment or Cash Payment

20 All provisions in the Customs Act 88/2005 regarding importation also apply to exportation and transit as far as applicable except otherwise provided for in the act Professional exporters shall submit export documents electronically to the Directorate Icelandic fishing ships shall report their catch, transported for sale on foreign markets, in the first port where the ship docks in Iceland on its return from abroad Export of Goods 20

21 In order to monitor and control the import of goods, because of import restrictions and prohibitions as well as import duty evasion, certain tariff heading numbers are filtered in the IT system Due to this control all shipments, that are correctly classified, are detained and are subject to inspection Other parameters are also controlled in the IT system, e.g. personal identification numbers of companies or individuals (existing for all legal entities in Iceland, natural persons as well as legal persons), country of origin etc. Parameters in the IT System 21

22 A close and effective co-operation exists between the customs authorities and many other governmental agencies Customs, Police and other government agencies exchange information and intelligence concerning investigations and observations This co-operation of Police and Customs is underlined with provisions both in the Customs and the Police Act Cooperation with other Agencies 22

23 Several co-operation agreements have been made between the Directorate of Customs and other agencies concerning customs control at the borders Several Co-operation Projects are already in progress Goods that are subject to prohibition or restrictions do require a license number on the import declaration before being cleared through the customs system Cooperation with other Agencies cont. 23

24 All shipments on a manifest get a Consignment number that is used during the Customs Clearance: E BRU DE HAM W001 EName of shipping company BRUFirst three letters of the name of a vessel 10Date of vessels arrival 11Month of arrival 0Year of arrival DECountry of export (LOCODE standard) HAMHarbour of Export W001 Bill of lading number Consignment Reference Number – Vessel 24

25 All shipments on a manifest get a Consignment number that is used during the Customs Clearance: F DK CPH 1234 FIdentifier of an Airline 502Flight Number 12Date of aircrafts arrival 10Month of arrival 0Year of arrival DKCountry of export ( LOCODE standard) CPHAirport of Export 1234Consecutive Numbers Consignment Reference Number – Aircraft 25

26 Import Declaration 26

27 Goods arriving in Iceland have to be manifested and consequently submitted electronically to Customs (Excluded are goods stored in a vessel and luggage of passengers and crew members) Iceland has not implemented the SAD document Consignment Reference Numbers only exist in Iceland Iceland has not implemented Pre Declarations Gap Analysis 27

28 Simplified Declarations are not applied in Iceland However, provisional customs clearance is possible, when one or several supporting documents are missing (against a monetary deposit) Verification (examination of declaration, request for documents, examination of goods, samples) seems similar Gap Analysis 28

29 Coffee Break 29

30 General Customs Rules and Procedures 30

31 Storage of uncleared goods is authorized in the following facilities: Clearance warehouses of transporters and licensed customs brokers Bonded warehouses Warehouses for duty free supplies Duty free shops and warehouses for their duty free stock Free zones (not in use at the moment) Transit warehouses Temporary Storage 31

32 It is prohibited to store uncleared goods in places other than the facilities mentioned before It is authorized, when justified by special circumstances, to permit the storage of uncleared goods in other facilities than those mentioned before The Director of Customs may subject the permit to such conditions as he deems necessary Temporary Storage – cont. 32

33 Directorate of Customs can grant to legal persons an operating license for the operation of duty free shops in airports and seaports A license also covers the operation of duty free stockrooms for uncleared goods, customs cleared goods and domestic products Duty Free Shops 33

34 Duty free shops are only authorized to sell goods to departing passengers and crew of vessels engaged in international journeys A sale shall only be permitted against presentation of a boarding card Directorate can authorize the licensee to sell goods from a duty free shop to arriving passengers and crew of vessels engaged in international journeys Such shops shall be specially demarcated and only accessible to passengers and crew upon arrival to this country Sale from a Duty Free Shop 34

35 Directorate can grant to legal persons a license for the operation of free zone where uncleared goods and domestic products may be processed beyond the processing permitted in a bonded warehouse A license shall be granted solely to those engaged in providing to others the services consistent with the operation of a free zone Licensees themselves are not permitted to engage in industrial production, commerce, commission sale, wholesale or retail sale in the free zone Only specifically registered companies are permitted to operate a free zone Free Zones 35

36 Directorate of Customs can grant to legal persons a license for the operation of transit warehouses A license shall be granted solely to those engaged in providing to others the services consistent with the operation of a transit warehouse The licensees themselves are not permitted to store goods or engage in the processing of goods, commerce, commission sale, wholesale or retail sale in the transit warehouse Uncleared goods may be placed in a transit warehouse from a vessel or a clearance warehouse Transit Warehouses 36

37 Goods subject to import licenses may be placed in a transit warehouse although the license is not on hand Domestic goods may be placed in a transit warehouse when they are intended for use in processing permitted in the warehouse in order to preserve their condition or prevent their damage Transportation of goods from a transit warehouse to other facilities for undeclared goods is impermissible Releasing of goods from a transit warehouse for use in the country is not permitted Transit Warehouses 37

38 Transporters, licensees of storage areas and agents of foreign parties who transport goods to this country shall be liable for the payment of import charges on goods which they have delivered or taken into use The property of those liable for the payment of charges may be attached covering import charges, penal interest and costs, without prior court ruling or accord Responsibility/Liability of the Custodian 38

39 Before goods are removed from a vessel or clearance warehouse to a bonded warehouse, a warehouse for duty free supplies, a duty free shop, transit warehouse or free zone the licensee shall notify the Director of Customs about the intended movement of goods The same shall apply when goods are delivered from the custody of a transporter to the clearance warehouse of a customs broker or another transporter Movement of Undeclared Goods 39

40 Director of Customs must declare whether such delivery is permitted or whether the goods shall be detained for further inspection immediately and no later than 24 hours after verifiably receiving notification The aforementioned provision does not apply to goods transported to a warehouse for duty free supplies from a vessels stores Movement of Undeclared Goods 40

41 Uncleared goods may be transported between storage areas without a special permission from the Director of Customs The custodian must notify the Director of Customs about the transport of the goods before the transport takes place Transport of goods from a warehouse for duty free supplies or a duty free shop to other storage areas for uncleared goods is prohibited unless specially permitted by the Director of Customs Transport of Uncleared Goods Between Storage Areas 41

42 Transport of goods between storage areas for uncleared goods results in the transfer of responsibility from one custodian to another when a licensee receiving goods certifies their receipt Operator of a customs warehouse, a warehouse for duty free supplies, a transit warehouse or free zone shall post security to the State Treasury corresponding to 3% of the customs value of goods that may be expected to be stored in the storage area in question Transfer of the Responsibility – Security 42

43 All warehouse types seem to be similar as in the EU; however the EU legislation is more complex and comprehensive than in Iceland Gap Analysis 43

44 Transit is well defined in the Customs law No 88/2005, § 1 – Point 28: The transportation of goods within the country under customs control from an arriving vessel on board an exporting vessel, provided the destination of the goods was originally a country other than Iceland Customs Status of Goods/Transit 44

45 Further definitions are to be found in in regulation No. 1100/2006 on the custody and customs clearance of goods: § 48 For the purpose of this Chapter transit means the transportation of goods within the country from an arriving vessel on board an exporting vessel under customs control, provided the original destination of the goods is a country other than Iceland § 48 A carrier shall notify the director of customs of the transport and custody of goods before the transit takes place Customs Status/Transit – Cont. 45

46 Regulation No. 1100/2006 § 50 Transfer of the responsibility of a custodian The transit of a consignment is at the responsibility of the carrier who transported the consignment to the country. The carrier is permitted to deliver the consignment to another carrier for exportation against certification of its receipt. Responsibility for the export of the consignment is then transferred to that carrier. § 51 The custody of transit documents Carriers and customs brokers shall keep in their accounts transit notifications and other documents relating to the transit, inter alia cargo manifests.. Customs Status/Transit – Cont. 46

47 To the right: Icelandic document for Transit SAD document not in use for transit out of the country Customs Status/Transit – Cont. 47

48 When the same shipping company is responsible for the transport through the country, transit declarations are made electronically HS tariff number is used for EDI system Customs Authorities have the possibility to monitor all manifests that are electronically transmitted Thereby focusing their attention on surveillance and intelligence led targeted intervention of higher risk shipments Customs Status/Transit – Cont. 48

49 Most of the goods moved in transit through Iceland are from the USA and Canada destined for Europe and vice versa Spare parts and provision for foreign vessels ATA (transit) possible, but is very seldom used (Greenland and Faroe Islands) Importer is obliged to pay customs duty if the goods are not exported and cleared out of the country Example of Transit Goods 49

50 6500 transit shipments cleared in 2010 through Customs in Iceland Foreign fishing vessels that offload fish in Iceland, and the final destination is outside the country, the cargo is cleared through the transit system out of the county Iceland a member of the SAD Transit Convention Linked through the NCTS system in Norway, only for goods arriving from EU destined for Iceland Customs Status of Goods/Transit 50

51 NCTS - Shipments YearNumber of Shipments

52 Country Belgium France Germany Italy Netherlands Sweden Other Total NCTS - Shipments

53 Even if Iceland is a member of SAD convention, we are still only linked through the NCTS system through Norway Gap Analysis 53

54 Temporary importation is possible in the following cases: Goods which are sent to the country temporarily for exhibition or transport, provided they will not be used otherwise Machinery, equipment and other gear sent to the country for a short trial period Equipment, tools and other gear which scientists, scientific expeditions, artists, contractors, rescue missions Temporary Import 54

55 Goods sent to this country temporarily for repairs or other processing Goods temporarily imported to this country in order that they may receive necessary processing to prevent their shrinkage or other damage Equipment and other gear which are imported to the country temporarily for meetings, conferences or festivals. Temporary Import – cont. 55

56 Transporters or other parties storing uncleared goods may be authorized to deliver under their own responsibility consignments of goods, provided there is urgent need for their delivery Bearer of an emergency permit is responsible for the payment of import charges for a consignment in the case of the importer's default of payment Emergency Permit 56

57 Iceland member of ATA Carnet for the Temporary Admission of Goods (ATA Convention) since 1970: Professional Equipment Convention Exhibitions and Fairs Convention Commercial Samples Convention ATA Carnet frequently used as temporary importation document in Iceland ATA Carnet 57

58 Thank you for your attention Merci de votre attention Vielen Dank für Ihre Aufmerksamkeit Grazie per la vostra attenzione Dziękuję za uwagę Takk fyrir athyglina 58


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