1. Activity processes of brokers in carrying out operations on the customs clearance of goods Activity processes of brokers in carrying out operations on the customs clearance of goods Baku, April 7, 2016 TAIEX Workshop on the Functioning of the Customs Broker System

2. Types of Simplified Procedure Where certain documents required to effect clearance of goods are not available, import declarations on a Single Administrative Document (SAD) may be accepted in certain circumstances. Prohibition and restriction issues must be satisfied and the SAD declaration must contain at least the information required for an incomplete declaration at import. In addition, a high quality description of the goods must be provided from which the relevant tariff code for the goods in question can be determined immediately and precisely. Incomplete Declaration at Import Incomplete Declaration at Export Simplified Declaration Procedure at Import Simplified Declaration Procedure at Export Local Clearance Procedure at Import Local Clearance Procedure at Export

3. Duties of customs brokers within customs clearance of goods ENTRY SUMMARY DECLARATION (ENS) The EU legislation requires, as a general principle, that all goods brought into the customs territory of the EU, regardless of their final destination, shall be covered by an ENS, which should be lodged at the customs office of first entry, i.e. the first intended port of call within the customs territory of the Community. In general, the EU legislation requires that the ENS „...shall be lodged by the person who brings the goods, or who assumes responsibility for the carriage of the goods into the customs territory of the Community ‟.

4. Duties of customs brokers within customs clearance of goods ENTRY SUMMARY DECLARATION (ENS) ENS can be lodged also by customs broker but it does not relieve the carrier of the responsibility. In the end it is the carrier that must ensure that an ENS is made, and within the time limits. Therefore, the ENS may be lodged by a person other than the carrier only with the carrier’s knowledge and consent. The legislation requires that the ENS for deep-sea containerized shipments must be lodged at least 24 hours before commencement of loading in each foreign load port.

5. Duties of customs brokers within customs clearance of goods ENTRY SUMMARY DECLARATION (ENS) Data are introduced into the system and risk analysis is performed. This analysis is focused on the security risks for the EU. The result is sent to the person who filed ESN. The result can be: goods shall not be loaded - banning or, the goods will be checked upon arrival at the customs territory of the EU, or, upon arrival in the EU will be carried out documentary control, no identified risk factors for EU.

6. Duties of customs brokers within customs clearance of goods CUSTOMS PROCEDURES (from 1 May 2016, UCC) Release for free circulation Transit Customs warehousing Inward processing (PCC and destruction included in inward processing) Temporary admission Outward processing Export Free zone Re-export Abandonment Temporary storage

7. Duties of customs brokers within customs clearance of goods CUSTOMS GUARANTEE (from 1 May 2016, UCC) A guarantee will be needed for any actual and potential debts. The guarantees against a customs authorization or approval (e.g. customs warehouse) must be enough to cover the maximum amount of customs duty applicable to the goods held in the regime or procedure at any in time.

8. Duties of customs brokers within customs clearance of goods CUSTOMS DECLARATION The declaration is to be lodged with the customs office where the goods were or will shortly be presented electronically, according to the specifications in authorization in writing, on a Single Administrative Document (SAD) orally

9. ELECTRONIC COMMUNICATION The Czech Customs Administration has been actively involved in the process of modernizing and computerizing customs proceedings arising from the Modernized Customs Code of the EU, which is closely linked to the program of unified computer treatment of customs procedures, known as e-Customs. The result of this system is the massive use of the electronic form of customs declarations not only regarding the transit procedure (using the NCTS system) and export procedure (using e-Export), but also regarding all of the import customs procedures (using e-Import). At the end of 2012 the fact that electronic filing is used for 99.9% of customs declarations under the transit and export procedures and over 93% under the import procedure proves the high level of the modernization and computerization of customs proceedings in the Czech Republic.

10. Communication between Customs office and Customs brokers codingdecoding Transmission line Feedback

11. STUDY CASE - SIMPLIFIED DECLARATION PROCEDURE AT IMPORT Customs broker Customs office Lodging customs declaration Errors in customs declaration New customs declaration Registration Check of declaration, documents, guarantee for customs debt Release of the goods and notification of the customs debt Notification of acceptance

12. STUDY CASE - SIMPLIFIED DECLARATION PROCEDURE AT IMPORT  Customs broker sends e-customs declaration (message) via Automated Electronic System to customs office that has issued authorization for electronic communication. If the customs declaration is valid, the customs office accepts the declaration, issues a registration number (Movement Reference Number (MRN) and sends message about acceptance of customs declaration to customs broker. In this stage, goods are only registered in customs system and not released to the customs regime. From registration till decision on release of goods into customs regime can customs broker cancel, amend or modify registered data. Customs office informs customs broker about acceptance of proposed changes.  If customs office identifies some irregularities or gaps in customs declaration sends message with specification of errors back to customs broker. Customs office has to explain reasons why customs declaration has not been accepted and provides a deadline to remedy the shortcomings.

13. STUDY CASE - SIMPLIFIED DECLARATION PROCEDURE AT IMPORT  If customs broker within the stipulated time does not send corrected customs declaration, customs office terminates the process of processing of the customs declaration and informs customs broker about this fact.  If all legal and formal requirements are fulfilled, customs office can decides on release of goods into proposed customs regime. Decision contains also information about amount of the customs debt and bank details for payment.  Customs broker has to confirm via e-communication to the customs office the decision on release of goods into proposed customs regime as well as amount of the customs debt.

14. STUDY CASE - SIMPLIFIED DECLARATION PROCEDURE AT IMPORT  In case, that customs office decides to carry out physical check of the goods, informs customs broker to ensure delivering of goods at a specified place. Customs broker is obliged to provide necessary cooperation.  In case, that customs office needs present specific documents within customs proceeding, informs customs broker to ensure delivering of documents to customs office. Customs broker is obliged to provide all requested documents.  All communication between customs office and customs broker form registration of goods till release of goods into proposed customs regime is done via Automated Electronic System. Customs broker is obliged to provide all requested information within the prescribed deadlines.

15. THANK YOU FOR YOUR ATTENTION PETR SCHUMMER CUSTOMS DEPARTMENT GENERAL DIRECTORATE OF CUSTOMS CZECH REPUBLIC mail.: p.schummer@cs.mfcr.cz