EUROPEAN COM DIRECTORATE-GENERAL TAXATION AND CUSTOMS UNION Customs Policy Customs Procedures

Brussels, 6 January 2009 TAXUD ML/JS/2046/2008-EN-Rev. 1 Working document

CUSTOMS CODE COMMITTEE Section for General Customs Rules

DRAFT Guidelines in the context of Regulation (EC) No 648/2005

This working document is intended to explain the application of Regulation (EC) 648/2005 and the implementing Regulation. It is based on the documents TAXUD 2008/2008, TAXUD 1674/2006, TAXUD 1206/2005 and on a draft by the informal working group on ENS guidelines and will be discussed in forthcoming meetings of the Customs Code Committee, General Rules Section and in the Working group on implementation of ECS. It is subject to review cycles.

Commission européenne, B-1049 Bruxelles B-1049 Brussel Telephone: (32-2) 299 11 11 Index

Part A – Issues concerning both entry and Export/exit 1. Introduction 2. Definition of the roles and responsibilities of the different customs offices 3. EORI Numbers 4. MRN 5. [Transitional measures]

Part B – Goods brought into the Customs Territory of the Community 1. Entry Summary Declaration (ENS) 1.1. Obligation to lodge an ENS, exceptions 1.1.1. Obligation 1.1. 2. Exceptions 1.2. Place where the declaration must be lodged and where the security-related risk analysis takes place 1.3. Person responsible 1.4. Unintentional double filing of an ENS 1.5. Content, accuracy and completeness of the ENS filing 1.6. Reduced data - Authorised Economic Operators (AEO) 1.7. Amendments of ENS 1.8. Risk analysis following an amendment 1.9 Time limits 1.10. The link between ENS or customs declaration and the subsequent summary declaration for temporary storage 2. Practical scenarios 2.1. Road transport 2.2. Combined transport 2.2.1. Truck on a Ro-Ro ferry 2.2.2. Truck on a ferry to with further voyage to 2.3. Maritime transport 2.3.1. Deep sea containerised traffic 2.3.2. Vessel sharing arrangement 2.3. 3. Bulk cargo 2.4. Air transport 2.4.1. Single carrier 2.4.2. Interline arrangement 2 2.4.3. Code share arrangement 2.4.4. Transhipment 2.5. Amendment 2.5.1. Introduction 2.5.2. Deep sea traffic containerised traffic 2.5.3. Non-containerised traffic 2.5.4. Goods short shipped 2.5.5. Goods off-loaded in a non-Community port 2.6. Diversion 2.6.1. Conveyance diversion 2.6.2. Cargo diversion 3. Import Control System (ICS)

Part C – Goods leaving the Customs Territory of the Community 1. Pre-departure declaration 1.1. Obligation to lodge a pre-departure declaration, exceptions 1.1. 1.Obligation 1.1. 2. Exceptions 1.2. Place where the declaration must be lodged and where the security-related risk analysis takes place 1.3. Responsible person 1.4. Reduced data - AEO 1.5. Amendments of exit summary declarations - Article 182d (4) CC 1.6. Time limits for lodging a pre-departure declaration 1.7. Specific codes and rules for air and ship supplies 1.7.1. Introduction 1.7.2. The situation in respect of security 1.7.3. The situation in respect of external trade statistics 1.7.4. List of codes 1.7.5. Scenario – ship supplies 1.8. Information on the exit of goods 1.9. Information of exit to fiscal authorities 1.10. Single transport contract (Article 793 (2) (b) CCIP) 1.10.1. Introduction 1.10.2. Exports by air 1.10.3. Exports by sea 1.10.4. Exports by rail 3 1.10.5. Export by freight forwarders acting as carriers 2. Place where goods are packed or loaded for export shipment 3. Export and transit 3.1. Goods carried by road 3.2 Goods carried by rail 4. Export of excise goods under duty suspension 5. Derogation from an exit summary declaration in case of transhipment and short term storage (Article 841a CCIP) 5.1. Introduction 5.2. Relevant provisions 5.3. Definitions 5.4. Declaration and removal 5.5. Examination and identification of goods 5.6. Time limits, failures 5.7. Authorized operations 6. Export Control System (ECS) PART E - ANNEXES Annex I - Practical examples concerning Article 793(2) (b) CCIP Annex II - FREQUENTLY ASKED QUESTIONS on ENS 1. Basic principles 2. Different scenarios

3. Alternative 3rd party ENS filing 4. Diversion 5. Amendments to ENS 6. Do not load messages 7. Import Control System 8. Economic Operator Registration & Information (EORI) 9. Miscellaneous ENS matters Annex III - FREQUENTLY ASKED QUESTIONS on EXS 1. Basic principles 2. Different scenarios 3. Amendments to ENS 4. Release messages Annex IV - Types of open export movements

A - ISSUES CONCERNING BOTH ENTRY AND EXPORT/EXIT

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1. Introduction The aim of these guidelines is to explain the application of the Community Customs Code (CC) as amended by Regulation (EC) 648/2005 and the implementing Regulation (CCIP), and in particular safety and security declarations at entry and export/exit. The guidelines are divided into three main parts – general, entry and export/exit. The annexes contain in particular some frequently asked questions and answers (FAQs).

2. Definition of the roles and responsibilities of the different customs offices In the context of the security and safety requirements the roles and responsibilities of the border and inland customs offices have been re-defined. The following guidelines give an overview.

2.1. Customs office of entry This is the customs office designed by the customs authorities in accordance with the customs rules to which goods brought into customs territory of the Community must be conveyed without delay and at which they will be subject to appropriate risk-based controls, primarily for safety and security purposes. The customs office of entry is the customs office geographically competent for the place where the goods are brought into the customs territory of the Community. Where goods dispatched from the third country are moved between different Community ports or airports and leave the customs territory of the Community temporarily, safety and security risk analysis is only performed at the customs office of entry where the goods are brought into this territory for the first time. Where the customs office of the first port or airport of entry identifies a risk for goods to be unloaded at a subsequent port or airport, it passes on the results of the risk analysis to the subsequent ports or airports via the Import Control System (ICS); it takes prohibitive action in the case of a consignment identified as posing such a serious threat that immediate intervention is required.

2.2. Customs office of import This is the customs office designed by the customs authorities in accordance with the customs rules where the formalities for assigning goods brought into customs territory of the Community to a customs-approved treatment or use are to be carried out and where risk-based controls, primarily for safety and security purposes, are performed. All non- Community goods must be assigned within 20 or – if they have been carried by sea – 45 days upon their arrival to a customs approved treatment or use. This means that the function of the customs office of import is normally, albeit at a later stage, to be performed by the customs office of entry. However, where non-Community goods – enter directly into a control type I free zone, they are already under a customs- approved treatment or use so that no further formalities are needed as long as the goods stay in the free zone; – are not released for free circulation at the customs office of entry/import but moved (for example under the external transit or customs warehousing procedure) to another place for which another customs office is competent, this other customs office has

5 also perform the role of a customs office of import until the goods are released for free circulation, re-exported, or moved to a place for which another customs office is competent (which then has to perform the function of a customs office of import). Typical formalities to be completed at the customs office of import include – the lodging and acceptance of a customs declaration (for release for free circulation, transit, customs warehousing, inward processing, processing under customs control or temporary admission), – the verification of the declaration and the goods, – taking measures allowing the identification of the goods, – controls on whether the goods are subject to prohibitions or restrictions, – the payment of import duties and other charges (e.g. VAT, excise duties) or the lodgement of a guarantee, where required, – the release of goods for the customs procedure concerned.

2.3. Customs office of export This is the customs office designed by the customs authorities in accordance with the customs rules where the formalities for goods destined to leave the customs territory of the Community are to be completed. Typical formalities to be completed at the customs office of export include: – the lodging and acceptance of a customs declaration for export, outward processing or, following a customs procedure with economic impact, for re-exportation, – the lodging and acceptance of an exit summary declaration where non-Community goods are re-exported in other cases (i.e. following external transit, storage in a control type I free zone or under temporary storage), – the verification of the declaration and the goods, – taking measures allowing the identification of the goods, – controls on whether the goods are subject to prohibitions or restrictions, – the release of goods for the customs procedure concerned. It can occur that the customs office of export is also a customs office of exit, for example, because – the goods are declared for export or re-export at a customs office at the point of exit from the customs territory of the Community, – the goods are declared for export or re-export at the same customs office than that where they are taken over under a single transport contract for transport out of the customs territory of the Community (see Part C, point 1.10), – the goods are declared for export or re-export and transit at the same customs office (see Part C, point 3). Apart from ensuring that the prescribed formalities for goods leaving the customs territory of the Community are completed and any prohibition and restriction are respected, the customs office of export has to perform appropriate risk-based controls, both for safety and security and for other purposes.

6 Which customs office has to perform the function of customs office of export depends to some extent on the choice the exporter. Customs declaration for export, outward processing and re-export must, in principle, be lodged at the customs office responsible for supervising the place – either where the exporter is established, or – where the goods are packed or loaded for export shipment (for export refund goods only this option is available). Special rules cover declarations lodged - by subcontractors (Art. 789 CCIP), - at another place because of administrative or duly justified reasons (Art. 790, 791 CCIP and the Administrative Arrangement thereto), - for goods of a value not exceeding 3 000 EUR (Art. 794(1) CCIP), - orally (Art. 794(2) CCIP), - retroactively (Art. 795(1) CCIP), - for re-exportation covered by an ATA-carnet (Art. 841(2) CCIP). Besides accepting customs declarations or exit summary declarations, the customs office of export has to perform, inter alia, the following functions: - verification of the declaration and the goods, - taking measures allowing the identification of the goods, - controls on whether the goods are subject to prohibitions or restrictions, - ensuring that a guarantee is lodged where required, - release of the goods for moving to the customs office of exit (if the customs office of export is not identical with the customs office of exit).

2.4. Customs office of exit This is the customs office designated by the customs authorities in accordance with the customs rules to which goods must be presented before they leave the customs territory of the Community and at which they will be subject to exit formalities and appropriate risk-based controls. These controls focus in particular on whether goods - are missing, - are in excess, - do not correspond to those declared or have been substituted. Where no discrepancies are identified, the customs office of exit releases the goods for exit. The customs office of exit is normally the customs office competent for the place where the goods leave the customs territory of the Community. However, under Article 793(2)(b) CCIP, the customs office competent for the place where goods are taken over under a single transport contract for their transport out of the customs territory of the Community can also be the customs office of exit (see part C, point 1.10.). Special rules exist also for cases where goods are brought out of the customs territory under – a transit procedure (Art. 793b CCIP, see part C, point 3), 7 – excise duty arrangements (Art. 793c CCIP, see part C, point 4).

3. EORI Numbers The filer of a safety and security declaration must include his own Economic Operator Registration and Identification (EORI) number in the ENS and, if he is not the carrier, also the carrier’s EORI number. If the EORI number (or numbers) is (are) not included, the declaration will be rejected. The fields “Consignor”, “Consignee” and “Notify party” must also be declared in the ENS using those parties’ EORI numbers where such numbers are available to the declarant. A declarant who does not already have an EORI number (which can be an existing Trader Identification Number or TIN) needs to obtain an EORI number. Application for an EORI number should be done before the filing of the first declaration but can also be done during the first filing. The EORI application process differs according to whether the declarant is established in or outside the customs territory of the Community: – a declarant established in the customs territory of the Community must apply for an EORI number at the customs authority or, if different, the designated authority of the Member State in which the declarant is established. – a declarant not established in the customs territory of the Community must apply for an EORI number at the customs authority or, if different, the designated authority of the Member State where the declarant first will lodge a safety and security declaration. – 4. Movement reference Number (MRN) The MRN is a unique number that is automatically allocated by the Customs office that receives the declaration. The MRN must be issued immediately upon receipt and validation of the declaration. It contains 18 digits and is composed of following elements:

Field Content Field type Examples 1 Last two digits of Numeric 2 07 year of formal acceptance of import/export movement (YY) 2 Identifier of the Alphabetic 2 IT country from (ISO alpha 2 which the country code) movement originates. 3 Unique identifier Alphanumeric 13 9876AB8890123 for import movement 8 per year and country 4 Check digit Alphanumeric 1 5

5. Transitional measures [To be completed later]

B - Goods brought into the customs territory of the Community

1. Entry Summary Declarations (ENS) 1.1. Obligation to lodge an ENS, exceptions 1.1.1. Obligation Without prejudice to transitional rules and the exceptions, with effect from 1 July 2009, Community legislation requires that an ENS must be lodged before the arrival of goods in the customs territory of the Community or before loading containerised cargo in deep sea traffic (cases referred to in Article 184a (1) (a) CCIP) at the first point of entry into the customs territory of the Community. The customs office of entry may waive the lodging of an entry summary declaration in respect of goods for which an electronic customs declaration is lodged within the time limits for an ENS, provided the customs declaration contains the particulars of an ENS. A practical example would be the lodging of a transit declaration. In accordance with Article 183 (1) CCIP the ENS shall be lodged electronically. It shall contain the particulars laid down for such declaration in Annex 30A CCIP and shall be completed in accordance with the explanatory notes in that Annex. The ENS shall be authenticated by the person making it. 1.1.2. Exceptions No ENS is required in the cases laid down in Article 181c CCIP. Furthermore, no ENS is required where goods are dispatched directly to a territory belonging to the customs territory of the Community but not to its fiscal territory and the rules on importation apply in accordance with Article 274-277 of Directive 2006/112/EC (OJ 2006 No L 347 p. 1). 1.2. Place where the declaration must be lodged and where the security-related risk analysis takes place In principle an ENS must be lodged at the customs office of entry, but another customs office can accept it if an electronic link with the customs office of entry is available. Nevertheless, the customs office of entry remains responsible for risk analysis.

1.3. Person responsible 1.3.1. Carrier Article 36b CC establishes that the operator of the active means of transport on or in which the goods are brought into the customs territory of the Community is responsible 9 for the filing of an ENS. The operator (or “the carrier”) is the person who brings, or who assumes responsibility for the carriage of, the goods into the customs territory of the Community. There are some types of transport arrangements where the ENS filing obligation lies with another person than the operator of the active means of transport: In the case of maritime or air traffic involving vessel sharing or similar contracting agreements between the involved carriers, the obligation to file an ENS lies with that carrier who has contracted, and issued a bill of lading or an air waybill, for the carriage of the goods into the customs territory of the Community on the vessel or aircraft subject to the arrangement. In the case of “combined transport” (e.g. a truck carried on a ferry) where the means of transport entering the customs territory of the Community (the ferry) is only transporting another means of transport which, after entry into the customs territory of the Community, will move by itself as an active means of transport (the truck), the obligation to file an ENS lies with the operator of that other active means of transport (the trucking company).

1.3.2. Filing by a third party This involves the following steps: (a) The 3rd party declarant and the carrier must contractually agree that the third party is to file the ENS instead of the carrier. How the carrier’s consent to the 3rd party ENS filing is to be evidenced and under which conditions and terms, e.g. time for submission of the ENS, the shipments involved, and the duration of the filing arrangement, are subject to contractual agreement between the commercial parties. Except where there is evidence to the contrary, the customs authorities may assume that the carrier has given its consent under contractual arrangements and that the 3rd party’s lodging of the ENS is made with the carrier’s knowledge. (b) The data elements that the 3rd party declarant must include in its ENS filing are set out in Annex 30A CCIP. The carrier’s EORI number and the carrier’s transportation document number (e.g. ocean (master) bill of lading or (master) air waybill number) must always be included in any 3rd party ENS filings. Among other required data elements are several that the 3rd party would need to obtain from the carrier prior to lodging the ENS. These include: - Mode of transport at the border; - Expected date and time at first place of arrival/entry in the Community; - First place of arrival/entry code; - Country code of the declared first office of arrival/entry; - The IMO vessel number (in the case of maritime shipments); the flight number; the wagon number (in the case of rail shipments); or the truck registration number (in the case of road transport); - The nationality of the active means of transport entering the customs territory;

10 - Voyage or trip number: in the case of code-share arrangements in air transport, the code-share partners’ flight numbers. (This data element is not required for road transport). The carrier will need to make such data elements available to the 3rd party declarant preferably at the time of booking or as logically required for a timely submission of that party’s ENS filing. (c) Once the 3rd party, with the carrier’s knowledge and consent, undertakes the responsibility of making the ENS filing, the content, accuracy and completeness of the ENS filing is the third party’s responsibility. (d) Immediately upon registration of the ENS, the customs authorities shall notify the 3rd party declarant of the MRN. The MRN is a customs computer system generated receipt for the ENS filing. The customs authorities shall also notify immediately the carrier of the MRN issued upon receipt of the 3rd party filing provided that the carrier is electronically connected to the Customs authorities, and provided that the carrier has been identified by its EORI number in the 3rd party ENS filing. An ENS filing can be made to the customs office of first entry or – where Member States bilaterally have agreed to such an arrangement – to a customs office in another Member State than where the customs office of first entry is located (“Office of Lodgement”). In the latter case, the MRN will be issued to the 3rd party by the office of lodgement. However, the carrier would not need to be electronically connected to this office in order to receive the MRN for the third party ENS filing as long as it is electronically connected to the customs office of first entry. Notification of the carrier of the MRN, which also includes a reference to its transportation document number, will provide evidence for the carrier that an ENS has been accepted and validated by customs and that the carrier’s obligation under Article 36b (3) CC has been met. (e) If the carrier has contractually agreed that a 3rd party will file the ENS instead of it, the carrier may not make its own ENS filing for that same shipment. Nor may a 3rd party file an ENS for a shipment without the carrier’s prior contractual agreement and knowledge. Ad hoc numbers cannot be used in the ENS (f) In cases where dual filings for the same shipment nonetheless occur, i.e. the carrier and a 3rd party both file an ENS for the same shipment, Customs authorities may decide to use both filings for their safety and security risk analysis. Otherwise they will consider that the ENS lodged by the carrier is the valid one. Dual filings would in any case not affect compliance with the legal requirement that an ENS is made, and within the specified time limits.

1.4. Unintentional double filing of ENS This can occur in the following situations: – an ENS is lodged by a freight forwarder and subsequently by the carrier, – an ENS is lodged by the importer and subsequently by the carrier or freight forwarder,

11 – a customs declaration containing the ENS data is lodged by the importer or, in the case of transit, the principal, and subsequently an ENS is lodged by the carrier or freight forwarder. Proposed solution for the national IT systems which can handle only one ENS per consignment: The ENS data first declared are disregarded, as the knowledge and consent of the carrier is required if another person lodges the ENS data. The ENS lodged by the carrier prevails also in the cases where it is lodged before the declaration of the other person. The information from both ENS can nevertheless be used for the purposes of risk analysis.

1.5. Content, accuracy and completeness of the ENS filing Customs authorities and economic operators must be able to identify the person (or persons) responsible for compliance with this requirement. However, the declarant is only obliged to provide the information known to it at the time of lodgement of the ENS. Thus, the declarant is entitled to base his ENS filing on data provided by its trading or contracting parties, and the declarant would not have to ascertain the accuracy of the data provided to him. However, all the data elements prescribed in Annex 30A CCIP for the particular mode of transport or for express consignments that are covered by the ENS filing must be contained in the ENS filing. The filing must be completed in accordance with the Explanatory Notes in Annex 30A CCIP If the declarant learns later that one or more particulars contained in the ENS filing have been incorrectly declared, the CCIP provisions on amendments apply. Without prejudice to the possible application of any sanction, the lodging with a customs office of a declaration signed by the declarant or his representative shall render him responsible under the provisions in force for: – the accuracy of the information given in the declaration, – the authenticity of the documents attached, and – the compliance with all the obligations relating to the entry of the goods in question under the procedure concerned.

1.6. Reduced data - Authorised Economic Operators (AEO) Holders of an AEO certificate referred to in Article 14a (1) points (b) or (c) CCIP importing goods may lodge ENS comprising the reduced data requirements set out in Table 5 of Annex 30A CCIP. Carriers, freight forwarders or customs agents who are holders of an AEO certificate referred to in point (b) or (c) of Article 14a (1) CCIP, and are involved in the importation of goods on behalf of holders of AEO certificate referred to in point (b) or (c) of Article 14a (1) CCIP may also lodge entry and exit summary declarations comprising the reduced data requirements set out in Table 5 of Annex 30A. The following persons need to be an AEO (holders of an AEO certificate -Security and Safety or of an AEO certificate – Customs Simplifications/Security and Safety) in order to submit an ENS containing the reduced security data set: – the person lodging the ENS and all consignees declared in that ENS;

12 – in case the ENS is sent by a representative of the person lodging the ENS, the representative and all consignees declared in that ENS.

1.7. Amendments of ENS The person referred to in paragraphs 3 and 4 of Article 36b CC shall, at his request, be authorised to amend one or more particulars of the summary declaration after it has been lodged (Article 36b (5) CC). From a legal point of view, in the CC or the CCIP there is no restriction to amend one or more particulars of the entry summary declaration. However, the particulars concerning the person lodging the ENS, the representative and the declared customs office of first entry should not be amended in order to avoid technical problems. When the particulars concerning the person lodging the ENS or the representative are not correct, a new ENS should be lodged, and the time limits laid down in Article 184a CCIP should wherever possible be respected in the case of the new ENS. If at the time of amendment, the ship has left the port of departure, a "no load" message is no longer possible.

1.8. Risk analysis following an amendment Risk analysis is performed on the basis of the ENS. Where an amendment is made, risk analysis is performed again with regard to the amended particulars. This will have an impact on the release of the goods only where the amendment is made so shortly before the arrival of the goods, that the customs authorities need additional time for their risk analysis.

1.9 Time limits The time limits for the lodging of the ENS vary according to the transportation mode and duration of transportation carrying the goods in to the customs territory of the Community: TRANSPORTATION MODE TIME LIMITS Containerised maritime cargo (except short sea containerised At least 24 hours before shipping) commencement of loading in each foreign load port Bulk/ break bulk maritime cargo (except short sea bulk/ break At least 4 hours before arrival at bulk shipping) the first port in the Community Short sea shipping: Movements between Greenland, Faroe Islands, Ceuta, Melilla, , , ports on the Baltic Sea, ports on the North Sea, ports on the At least 2 hours before arrival at Black Sea or ports on the Mediterranean the first port in the Community and The Community except French overseas department, Azores, Madeira and Canary Islands

13 Short sea shipping: Movements with a duration of less than 24 hours between A territory outside the customs territory of the Community At least 2 hours before arrival at the first port in the Community and The French overseas departments, Azores, Madeira and Canary Islands

Short haul flights (less than 4 hours duration) At least by the time of the actual take off of the aircraft Long haul flights (more than 4 hours duration) At least 4 hours before arrival at the first airport in the Community

Rail and inland waterways At least 2 hours before arrival at the customs office of entry in the Community Road traffic At least 1 hour before arrival at the customs office of entry in the Community Apart from ENS lodged before loading, the time limits refer to the arrival at the port, airport etc. for which the customs office of entry is geographically competent. However, customs authorities may allow the ENS to be lodged at another customs office, provided that this office immediately communicates or makes available electronically the necessary particulars to the customs office of entry. The permission to lodge the declaration at a customs office other than the customs office of entry is dependent on the possibility to transmit the particulars of the declaration to the customs office of entry. Where this possibility does not exist (e.g. due to lack of a corresponding interface between Member States), the lodging of the ENS at another customs office cannot be allowed. On the other hand, where an electronic link exists and the ENS is accepted by another customs office, the time limits for lodging the declaration (Article 184a CCIP) are not affected, given that the person lodging the declaration has no control over the treatment of his declaration by the customs authorities. Therefore the time limits of Article 184a CCIP apply also in cases where the ENS is lodged at a customs office other than the customs office of entry.

1.10. The link between ENS or customs declaration and the subsequent summary declaration for temporary storage Regulation (EC) No 648/2005 has amended the rules on (entry) summary declarations by requiring that ENS are lodged before – instead of after – the arrival of the goods in the customs territory of the Community. However, Article 49 CC laying down the time limits for assigning the goods a customs-approved treatment or use has not been amended accordingly. Article 186CCIP stipulates therefore that these time limits start to run when the goods are presented to customs,

14 The link between the ENS and the subsequent summary or customs declaration is to be established at the moment when the relevant summary or customs declaration is accepted by the customs authorities. The interface between the systems for ENS and customs declarations is to be organised by the MS (national domain).

2. Practical scenarios 2. 1. Road transport While this scenario relates to road traffic, the same principles may be applied to similar arrangements between carriers and third parties, e.g. freight forwarders, importers, for rail and other modes of transport. A lorry, operated by Company H, leaves with goods destined for . The place of entry to the EU is Koroszczyn, . The lorry carries goods destined for several different importers, Company I, Company J, Company K and Company L. The goods are not covered by a transit procedure. The ENS for part of the goods is, with the knowledge and consent of the carrier, to be lodged by, or on behalf of (i.e. by an agent), the importers, i.e. Company K and Company L. An ENS must be lodged electronically, for all goods carried by the lorry, at the customs office of Koroszczyn not later than one hour before the goods are brought into the customs territory of the Community.[Article 184a (4) CCIP applies]. The responsibility, under Article 36b (3) of the Code, for the lodgement of the ENS for all of the goods on the lorry lays with Company H, the 'carrier'. Article 5 CC allows any other person to lodge the ENS on behalf of Company H, i.e. as a representative, e.g. a customs agent. Article 36b (4) CC, also provides that another person may lodge the ENS instead of Company H (e.g. Company K or L) , but as the carrier, Company H, is obliged by law to see that this is done, those other Companies must have the consent of Company H to lodge the ENS instead of it. This will be part of the contractual arrangements between the Company H and the other companies. The customs office to which the ENS is made may assume that consent has been given unless there is evidence to the contrary. Where an ENS is lodged by another person instead of Company H, it must include, as well as the identity [EORI No.] of Company H, a reference to the transport document issued to him by Company X The lodgement of the ENS for the goods on the truck by a person instead of the carrier, i.e. other than on his behalf, will render the person making it liable for its accuracy and relevance to the goods it is intended to cover [Articles 183 (1) & 199 CCIP]. At least one hour prior to the arrival of the goods at Koroszczyn, Company H, or its agent/representative, will lodge at the customs office at Koroszczyn an ENS for the goods destined for Company I and Company J. Before the same deadline, Company K and Company L, or their agents, will lodge at the customs office at Koroszczyn an ENS for the goods destined for them. [Article 36b(4) CC]. Company K and Company L will be responsible for the accuracy and relevance of their declarations. The customs office at Koroszczyn will, immediately upon receipt, validate each ENS and notify the declarant, electronically, of the MRN.

15 Where the ENS is lodged by Company K and Company L instead of Company H, the notification will also be sent electronically to Company H, provided that Company H has been identified with its EORI number in the ENSs lodged by Company K and Company L, and has an electronic interface with the customs office of entry. Otherwise, Company K and Company L must advise Company H of the MRNs for the ENSs lodged by them. This includes the MRN of any ENS lodged on behalf of or instead of those companies by any other person. Under contractual arrangements, it is probable that Company H will require this advice before the loading of the goods to the lorry. The customs office at Koroszczyn will perform risk analysis on the ENSs, in accordance with Article 184d CCIP. If, at any time after lodgement, Company K or Company L makes an amendment to the ENS, a notification that an amendment has been made will also be sent electronically to Company H, provided that Company H has requested the customs authorities that it is advised of any such amendment and has an electronic interface with the customs office of entry [Article 183 (8) CCIP]. The notification will contain only data directly associated with the transport arrangements. Immediately upon arrival of the lorry at Koroszczyn, Company H must notify the customs office of Koroszczyn that the lorry has arrived, by the use of an arrival notification made in a manner acceptable to that customs office [Article 184g CCIP]. The arrival notification must contain a list of all the MRNs for the ENSs covering all of the goods carried on the lorry. Available methods of notification of arrival may be used, provided they are approved by the customs authorities. All of the goods must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. This summary declaration must be lodged with the customs authority no later than at the time of presentation of the goods. Any available commercial or transport inventory systems may be used, provided that they are approved by the customs authorities. The summary declaration for temporary storage will consist of a reference to the ENSs, supplemented by whatever additional information is required by the customs office of Koroszczyn. Also, if acceptable to that customs office, it may take the form of a transport document and can be combined with, or contain, the arrival notification. If goods are presented for which an ENS has not been lodged, the customs office of Koroszczyn shall require Company H to lodge such a declaration immediately [Article 184c CCIP applies]. Separate notification is not necessary in such cases. In the case of diversion of the lorry to another entry point in the same Member State no advice of change of route is required under the Community regulations. Advice to and between the border posts is left to national systems/surveillance. If the diversion is to an entry point in a different Member State, e.g. , Company H [the operator of the active means of transport entering the customs territory], or its representative, will, immediately upon the change of its route, Either notify the customs office at Koroszczyn of the diversion, by use, where practical, of the ‘diversion notification’ message set out in Annex 30A CCIP.

16 The ‘diversion notification’1 must include a list of all the MRNs for all of the goods carried on the lorry, including those provided by Company K and Company L, to allow identification by the customs authorities of all the ENSs lodged for those goods. The customs office at Koroszczyn will notify the Slovakian customs authorities, and pass on any positive risk information. Or submit a new ENS to the customs office at the point of entry in Slovakia for all of the goods carried on the lorry. All of the goods must be presented to the Slovakian customs office and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. Whether there has been a diversion or not, the goods need to be assigned within 20 days to a customs-approved treatment or use. As the goods are destined for Germany, the most practical solution would be to use a transit procedure. In NCTS the ENS data can be included in the transit declaration, so that no separate ENS and no summary declaration for temporary storage would be necessary.

2.2. Combined transport The scenarios below specifically address the ‘combined transport’ arrangement referred to in Article 183b CCIP. While the examples below involve lorries on a ferry, they would apply mutatis mutandis to other combined transport situations, e.g. lorries on railway wagons. 2.2.1. Truck on a Ro-Ro ferry A Ro-Ro ferry, operated by Company A, loads containers, trailers, railway wagons and lorries in Tunis, Tunisia for carriage to Salerno, . The vessel will proceed directly to Salerno. The lorries are operated by Company B and Company C. The ferry is the ‘active means of transport entering the customs territory of the Community...’ referred to in the first of Article 183b CCIP. The lorries will move by themselves as active means of transport after having been brought into the Community and discharged in Salerno.2 An ENS must be lodged electronically, for all cargo carried by the vessel, at the customs office of Salerno [Article 184a (1) (c) CCIP applies]. However, the obligation to see that this is done rests with different parties in ‘combined transport’ cases:

1 The Community legislation uses the term “diversion request”. This does not mean that the customs authorities may overrule the lorry driver’s decision to divert the lorry. However, the “Diversion Request” must include a number of specified data elements. If those data elements are not included, it will be rejected and a new, complete request must be lodged.

2 A “...means of transport which, after having been brought into the customs territory of the Community, will move by itself as an active means of transport" is a means of transport which can, upon unloading from the means of transport carrying it, continue its journey under its own power . This includes a tractor unit towing a trailer, provided that these were carried together as a single unit. Excluded from this definition are e.g. containers, trailers and railway wagons that are not able, upon unloading, to continue their journey under their own power.

17 (a) The responsibility, under Article 36b (3) of the Code, for the lodgement of the ENS for the containers, trailers and railway wagons [inactive means of transport] lays with Company A, the 'carrier'. Any other person may lodge the ENS for the containers, trailers and railway wagons on behalf of Company A as a representative (e.g. by ship's agents) [Article 5 CC]. Article 36b (4) CC also provides that another person (e.g. freight forwarder, importer) may lodge the ENS instead of Company A. However, as Company A is obliged by law to see that this is done, it must be with the knowledge and consent of Company A. This consent will be part of the contractual arrangements between Company A and the other person. The customs office to which the ENS is made may assume that consent has been given unless there is evidence to the contrary. Where an ENS is lodged by another person instead of Company A, it must include, as well as the identity [EORI No.] of Company A, a reference to the bill of lading or other transport document issued to him by Company A. The lodgement of the ENS for the containers, trailers and railway wagons will render the person making it liable for its accuracy and relevance [Articles 183 (1) & 199 CCIP]. (b) The responsibility, under Article 36b(3) of the Code, to lodge the ENS for the lorries3 lays with Companies B and C, who, in respect of the lorries, are deemed to be the 'carriers', i.e. '…the person who will operate the means of transport which, after having been brought into the customs territory of the Community, will move by itself as an active means of transport' .[ Article 183b CCIP]. This does not prevent any other person (e.g. agent) lodging the ENS for the lorries on behalf of Company B or C [Article 5 CC], or another person (e.g. freight forwarder, importer, Company A) lodging the ENS instead of Company B or Company C, [Article 36b (4) CC], but the obligation to see that this is done rests with these 'carriers'. Whoever lodges the ENS for the lorries is liable for its accuracy and relevance [Articles 183 (1) & 199 CCIP]. The time limit for the lodging of the ENSs remains the same for both (a) and (b). This is because the time limit is determined by the mode of transport (the ferry) that carries the other means of transport which, after having been brought into the customs territory of the Community, will move by themselves as active means transport (the lorries): For the containers, trailers, and railway wagons, at least 2 hours before arrival of the vessel in Salerno, Company A must lodge (or have lodged on its behalf) at the customs office of Salerno an ENS for all of the inactive means of transport carried. For the lorries, Company B and Company C must, independently, lodge (or have lodged on their behalf) ENSs for each of the lorries operated by themselves, but before the deadline applicable to the vessel on which they are carried, i.e. at least 2 hours before arrival of the vessel in Salerno. The customs office of Salerno will, immediately upon receipt, validate each ENS and notify the declarant, electronically, of MRN.

3 This includes a tractor unit towing a trailer, provided that these are carried together as a single unit.

18 If the declarant for the containers, trailers and railway wagons is another person than the ferry, Company A, notification will also be sent electronically to Company A, provided that it has been identified with its EORI number in the ENSs lodged by the declarant, and has an electronic interface with the customs office of entry. If this is not the case, notification of the MRN will not be sent to the carrier. If the declarant for the lorries is another person than Company B and C, these two companies will also be notified electronically by the customs office in Salerno of the MRNs, provided that they have been identified with their EORI numbers in the ENSs lodged by the declarant, and have an electronic interface with the customs office of entry. In any event, and in order to provide for diversion and notification of arrival of the vessel, Company B and Company C, not the customs office in Salerno, must notify Company A, the ferry, of the MRNs for the ENSs for the goods in each of the lorries. This includes the MRN of any ENS lodged on behalf of or instead of those companies by another person. Under contractual arrangements, it is probable that Company A will require this information before loading the lorries on its vessel. Where the ENS has been lodged by a another person instead of Company A, B or C, and an amendment to the ENS is made by the declarant, a notification that an amendment has been made will be sent electronically to the carrier (Company A, B or C) named in the ENS, provided that that Company has requested the customs authorities that it is advised of any such amendment and has an electronic interface with the customs office of entry [Article 183 (8) CCIP]. The notification will contain only data directly associated with the transport arrangements. Risk analysis is performed by the customs office of Salerno on the ENSs. Immediately upon arrival of the vessel at Salerno, Company A or its representative must notify the customs office of Salerno that the vessel has arrived, by the use of an arrival notification made in a manner acceptable to that customs office [Article 184g]. The arrival notification shall contain information to allow identification by the customs authorities of all the ENSs lodged for the inactive means of transport (the containers, trailers and railway wagons). This identifying information can take the form of either an “Entry Key” (i.e. mode of transport at the border; the IMO vessel number; and the expected date of arrival at the first place of arrival in the Community as declared in the ENS)4 or a list of all the MRNs for the ENSs covering the inactive means of transport. Whichever form is chosen, it must be complemented with a list of the MRNs for all the ENSs covering the lorries as provided to Company A by Company B and C pursuant to contractual arrangements. All of the goods unloaded must be presented5 to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. This summary declaration must be lodged with the customs authority no later than at the time of presentation of the goods. Any available

4 The term Entry key cannot be found in the Community legislation. It is used in the Application Guidelines as a facilitatory "entry key" measure provided for in the Community legislation to simplify the reporting requirements for arrival notifications and diversion notifications in the maritime and air environments.

5 Normally, goods will be presented by the carrier, i.e. Company A, B or C as appropriate, or on their behalf. The goods may, however, be presented instead by the person who takes responsibility for the onward carriage of the goods’. This may be an agent by the holder of the temporary storage, forwarder or another carrier.

19 commercial, port or transport inventory systems may be used, provided that they are approved by the customs authorities. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office of Salerno. Also, if acceptable to that customs office, it may take the form of a manifest or other transport document and can be combined with, or contain, the arrival notification. If goods are presented for which an ENS has not been lodged, the customs office of entry shall require the relevant 'carrier', i.e. Company A for the containers/trailers/wagons, or Company B or C for the lorries, to lodge such a declaration immediately [Article 184c CCIP applies]. In the case of diversion of the vessel to another port in the same Member State e.g. to Naples, no advice of change of route is required under the Community regulations. Advice to and between the ports is left to national systems/surveillance. If the diversion is to a new first port in a Member State not declared in the ENS, e.g. Marseilles, , Company A [the operator of the active means of transport entering the customs territory] must, immediately upon the change of its route, notify the customs office at Salerno of the diversion, by use of the ‘diversion notification’ message set out in Annex 30A CCIP. The ‘diversion notification’6 shall include the same information as the arrival notification, i.e. either the ‘Entry Key’ for the ferry or a list of all the MRNs for the ENSs covering the inactive means of transport lodged by, on behalf of or instead of Company A, plus a list of all the MRNs provided to company A by Company B and Company C pursuant to contractual arrangements. The customs office at Salerno will notify the customs office at Marseilles, and pass on any risk information. If, however, Marseilles is a planned call or the ferry route includes a different port in France, then no diversion notification is necessary. The French customs authorities will already have been advised by Salerno of any risk. No ENS needs to be lodged with the customs office in Marseilles. Nor is an ENS required to be lodged in any subsequent port(-s) in the Community on the ferry’s itinerary. However, if the ferry after having called in Marseilles makes a call at a non- Community port (e.g. Algiers) and then calls at a Community port (e.g. Malaga), an ENS must be lodged with the customs office in Malaga. The new ENSs must cover all cargo carried on the ferry, not just the cargo loaded in Algiers; the responsibilities and procedures for lodging the new ENS are the same as those described above for the lodgement of ENSs with the customs office in Salerno. Goods to be unloaded in Marseilles must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by

6 The Community legislation uses the term “diversion request”. This does not mean that the customs authorities may overrule the master’s decision to divert the ship. However, the “Diversion Request” must include a number of specified data elements. If those data elements are not included, it will be rejected and a new, complete request must be lodged.

20 the customs office at Marseilles. (The same requirement applies to goods unloaded in any subsequent port(-s) in the Community, e.g. Malaga).

2.2.2. Truck on a ferry to Finland with further voyage to Estonia In St. Petersburg goods are loaded on a truck which is loaded on a ferry bound for a port in Finland. The ferry with the truck arrives at the Finnish port. The ferry departs bound for Tallinn, Estonia. At the port in Tallinn, the ferry with the truck arrives, the truck is unloaded and the goods are placed under NCTS. The truck departs under NCTS towards an EU office of destination. In accordance with Article 183b CCIP the obligation for providing the ENS lies on the carrier of the truck. An ENS is presented for a truck, including the references to the truck (not to the ferry) to the customs office of the first entry in FI. The customs office in Finland performs the safety and security analysis. If a risk is identified it takes the necessary action. As the ENS concerns a truck, the next customs office of entry (Tallinn) does not need to be declared in the ENS as a subsequent port. Therefore the customs office in Finland cannot take the decision that the truck has to be checked with regard to safety and security upon arrival in Tallinn.

2.3. Maritime transport 2.3.1. Deep sea containerised traffic This scenario sets out the principles for deep sea containerised traffic and addresses the carrier/forwarder relationship specifically (Article 184a (1) (a) CCIP). A vessel, operated by Company X, the 'carrier', loads containers in Lagos, Nigeria for carriage to EU ports. The vessel's first EU port of call is Le Havre, France. Company X issue bills of lading to shippers for those containers for which it enters into a contract directly with them for carriage of the goods on the vessel. Company X also issues (master) bills of lading to a freight forwarder, Company Y, as a shipper. Company Y will have issued its own (house) bills of lading, e.g. to exporters as shippers. An ENS must be lodged electronically, for all cargo carried by the vessel, at the customs office of Le Havre, [Article 184a (1)(a) CCIP applies]. The ENS must also include all goods remaining on board the vessel in the port of Le Havre for discharge at subsequent ports in the EU or beyond. The responsibility, under Article 36b (3) of the Code, for the lodgement of the ENS for the containers lays with Company X, the carrier. Company Y, the forwarder, is not, for the purposes of this provision, deemed to be the carrier. Article 5 CC allows any other person to lodge the ENS on behalf of Company H, i.e. as a representative, e.g. a customs agent. Article 36b (4) CC, however, also provides that Company Y may lodge the ENSs, instead of Company X, for the shipments Company Y controls. However, as Company X is obliged by law to see that this is done, Company Y can only lodge the ENS instead of Company X with the knowledge and consent of Company X. At least 24 hours before commencement of loading in Lagos, the carrier, Company X, must lodge (or have lodged on its behalf by a representative, e.g. ship’s agents) an ENS to the customs authorities at the port of Le Havre for all of the containers for which it has 21 issued master bills of lading for carriage on the vessel, i.e. including those containers carried for Company Y. Company X may, however, consent that the forwarder, Company Y, is to lodge the ENS for those containers for which it, Company Y, has issued house bills of lading. This consent will be part of the contractual arrangements between Company X and Company Y. The customs office to which the ENS is made may assume that consent has been given unless there is evidence to the contrary. Where an ENS is lodged by Company Y instead of Company X, it must include, as well as the identity (EORI No.) of Company X [Carrier], a reference to the master bill of lading issued to him by Company X. It is anticipated that, under the contractual arrangements between them, Company X will require Company Y to lodge the ENS by a reasonable time before the time limit of 24 hours before commencement of loading. The lodgement of the ENS will render Company Y liable for its accuracy and relevance to the goods it is intended to cover. [Articles 183(1) & 199 CCIP]. The customs office of La Havre will, immediately upon receipt, register each ENS and notify the declarant, electronically, of MRN. For the ENSs lodged by Company Y, notification of the MRNs will also be sent electronically to Company X provided that the ocean carrier has been identified with its EORI number in the ENSs lodged by Company Y, and has an electronic interface with the customs office of entry. If this is not the case, notification of the MRN will not be sent to Company X. Notification of the MRN will provide evidence for Company X that an ENS has been lodged and its obligations under Article 36b(3) of the Code have been met. Where Company X has requested the customs authorities to send such notifications, it will also be notified electronically if Company Y subsequently makes an amendment to its ENS (again, provided that Company X has been identified with its EORI number in the ENSs lodged by Company Y, and has an electronic interface with the customs office of entry) [Article 183 (8) CCIP]. The amendment notification will contain only data directly associated with the transport arrangements.7 The customs office at Le Havre will carry out risk analysis on the ENSs upon their receipt, in accordance with Article 184d CCIP. Any 'Do not Load' notification, under Article 184d (2), related to a container for which the ENS was lodged by Company Y, will be sent electronically both to Company Y, the declarant, and to Company X, the carrier (again, provided that Company X has been identified with its EORI number in the ENSs lodged by Company Y, and has an electronic interface with the customs office of entry). Immediately upon arrival of the vessel in Le Havre, Company X as the operator of the active means of transport, the vessel, must lodge with customs office at Le Havre an arrival notification in a manner acceptable to that customs office [Article 184g CCIP]. The arrival notification must contain information to allow identification by the customs authorities of all the ENSs lodged for all cargo on the vessel. This identifying

7 Company X, the carrier, will also receive electronically the MRNs for the entry summary declarations it itself has lodged. Similarly, it will receive electronically an “amendment acceptance message” for any amendments it may make to its entry summary declarations.

22 information can take the form of either an “Entry Key” (i.e. mode of transport at the border; the IMO vessel number; and the expected date of arrival at the first place of arrival in the Community as declared in the ENS) or a list of all the MRNs for all the ENSs. All of the goods to be unloaded at Le Havre must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. This summary declaration must be lodged with the customs authority no later than at the time of presentation of the goods. Any available commercial, port or transport inventory systems may be used, provided that they are approved by the customs authorities. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office of Le Havre. Also, if acceptable to that customs office, it may take the form of a manifest or other transport document and can be combined with, or contain, the arrival notification. Goods remaining on board the vessel for discharge at subsequent ports, in the EU or beyond, need not be presented to customs at Le Havre [Article 189 CCIP]. If goods are presented at Le Havre for which no ENS has been lodged, the customs office shall require the operating 'carrier', i.e. Company X, to lodge such a declaration immediately [Article 184c CCIP applies]. In the case of diversion of the vessel to another port in the same Member State e.g. to Marseilles, no advice of change of route is required under the Community regulations. Advice to and between the ports is left to national systems/surveillance. If the diversion is to a new first port in a Member State that was not declared in the ENS, e.g. Algeciras, , Company X as the operator of the active means of transport entering the customs territory or its representative shall, immediately upon the change of its route, advise the customs office at Le Havre of the diversion, by use of the ‘diversion notification’ message set out in Annex 30A CCIP. The ‘diversion notification’8 shall include the same information as the arrival notification, i.e. either the ‘Entry Key’ for the vessel or a list of all the MRNs for all of the ENSs lodged by, on behalf of or instead of Company X for all of the goods carried on the vessel. The customs office at Le Havre will notify the customs office at Algeciras, and pass on any positive risk information. If, however, Algeciras is a planned port of call for the vessel, then no diversion notification is necessary. Algeciras will already have been advised by Le Havre of any risk. No ENS need to be lodged with the customs office in Algeciras. Nor is an ENS required to be lodged in any subsequent port(-s) in the Community on the vessel’s itinerary. However, if the vessel after having called in Algeciras makes a call at a non-Community port (e.g. Tangiers, Morocco) and then calls at a Community port (e.g. Valetta, ), a

8 The Community legislation uses the term “diversion request”. This does not mean that the customs authorities may overrule the lorry driver’s/master’s/captain’s decision to divert the lorry /ship/air craft. However, the “Diversion Request” must include a number of specified data elements. If those data elements are not included, it will be rejected and a new, complete request must be lodged.

23 new ENS must be lodged with the Customs office in Valetta The new ENS must cover all cargo carried on the vessel, not just the cargo loaded in Tangiers; the responsibility and procedures for lodging this new ENS are the same as described above for the lodgement of ENSs with the customs office in Le Havre. Goods unloaded in Algeciras must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office of Algeciras. (The same requirement applies to goods unloaded in any subsequent port(-s) in the Community, e.g. Valetta).

2.3.2. Vessel sharing arrangement This scenario specifically addresses the ‘ship sharing’ arrangements referred to in Article 183c CCIP. A vessel, operated by Company D, loads containers in Far East ports for carriage to EU ports. The vessel's first EU port of call is Gioia Tauro, Italy. Company D issues ocean bills of lading only for those containers for which it enters into a contract for carriage of the goods on the vessel. Company D operates a vessel sharing arrangement with Company E, Company F and Company G, under which these companies issue ocean bills of lading for those containers they are having carried on the vessel operated by Company D. Company E, Company F and Company G are treated in the same way as Company D, i.e. as if the vessel was operated by them, and are deemed to be ‘ocean carriers' i.e. '…the person who assumes responsibility for the carriage of the goods into the customs territory of the Community'. An ENS must be lodged electronically, for all cargo carried by the vessel, at the customs office of Gioia Tauro, [Article 184a (1) (a) CCIP applies]. The ENS must also include all goods that will remain on board the vessel in the port of Gioia Tauro for discharge at subsequent ports in the EU or beyond. The responsibility, under Article 36b(3) of the Code, implemented by Article 183c CCIP, for the lodgement of the ENS for the containers lays with each company, i.e. the companies which issue the ocean bill of lading for carriage of the containers on the vessel. At least 24 hours before commencement of loading in each port of loading in the Far East, each company must ensure that an ENS is lodged with the customs authorities at the port of Gioia Tauro, for all of the containers for which it has issued ocean bills of lading for carriage on the vessel.9 Each company can either lodge these declarations itself or have them lodged on its behalf, e. g. by its agent or representative [Article 5 CC].

9 I.e., the main haul vessel that will make calls at ports in the Community. This means that entry summary declarations are not required to be lodged for the containers on feeder vessels in intra-Asian traffic that bring the containers to the Far East load ports of the main haul vessel.

24 Article 36b (4) CC also provides that the person responsible for lodging the ENS may allow that another person (e.g. freight forwarder, importer) lodge the ENS instead of the ocean carrier. However, as the ocean carrier is obliged by law to see that this is done, this lodgement by another person instead must be with the knowledge and consent of the ocean carrier. This will be part of the contractual arrangements between the ocean carrier and the other person. The customs office to which the ENS is made may assume that consent has been given unless there is evidence to the contrary. Where an ENS is lodged by a person other than the ocean carrier instead of that carrier, it must include, as well as the identity (EORI No.) of the ocean carrier, a reference to the ocean bill of lading issued to him by the ocean carrier. The lodgement of the ENS will render the person making it liable for its accuracy and relevance to the goods it is intended to cover [Articles 183 (1) & 199 CCIP]. The customs office of Gioia Tauro will, immediately upon receipt, validate and register each ENS and notify the declarant, electronically, of the MRN. Where an ENS is lodged by a person other than the ocean carrier, the notification will also be sent electronically to the ocean carrier that issued the ocean bill of lading for the goods covered by the particular ENS provided that the ocean carrier has been identified with its EORI number in the ENSs lodged by the declarant, and has an electronic interface with the customs office of entry. If this is not the case, notification of the MRN will not be sent to the carrier. Notification of the MRN will provide evidence for the ocean carrier that an ENS has been accepted and his obligations under Article 36b(3) of the Code have been met. 10 Where the ocean carrier has requested the customs authorities to send such notifications and has an electronic interface with the customs office of entry, it will also be notified electronically if a declarant subsequently makes an amendment to his ENS [Article 183 (8) CCIP]. The amendment notification will contain only data directly associated with the transport arrangements. The customs office at Gioia Tauro will carry out risk analysis on the ENSs upon their receipt, in accordance with Article 184d CCIP. Any 'Do not Load' notification, under Article 184d (2) CCIP, will be made to the declarant and, where different, also sent electronically to the ocean carrier which issued the ocean bill of lading for those goods (again, provided that the ocean carrier has been identified with its EORI number in the ENSs lodged by the declarant, and has an electronic interface with the customs office of entry). The customs office at Gioia Tauro will also pass on all positive risk results to all subsequent ports of call within the EU declared in the ENS. Immediately upon arrival of the vessel at Gioia Tauro, Company D or its representative as the operator of the active means of transport, the vessel, must lodge with the customs office in Gioia Tauro an arrival notification in a manner acceptable to that customs office [Article 184g CCIP]. The arrival notification must contain information to allow identification by the customs authorities of all the ENSs lodged for all cargo on the vessel. This identifying information can take the form of either an “Entry Key” (i.e. mode of transport at the border; the IMO vessel number; and the expected date of arrival

10 Each ocean carrier will also receive electronically the MRNs for the entry summary declarations it itself has lodged. Similarly, it will receive electronically an “amendment acceptance message” for any amendments it may make to its entry summary declarations.

25 at the first place of arrival in the Community as declared in the ENS) or a list of all the MRNs for all the ENSs. As Company D may not have all the MRNs of Company E, F and G - its vessel sharing partners - and the MRNs for any ENSs that they may consented be lodged by 3rd parties, Company D or its representative quite likely would choose to include the “entry key” information in his arrival notification. All of the goods unloaded at Gioia Tauro must be presented11 to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. This summary declaration must be lodged with the customs authority no later than at the time of presentation of the goods. Any available commercial, port or transport inventory systems may be used, provided that they are approved by the customs authorities. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office of Gioia Tauro. Also, if acceptable to that customs office, it may take the form of a manifest or other transport document and can be combined with, or contain, the arrival notification. Goods remaining on board the vessel for discharge at subsequent ports, in the EU or beyond, need not be presented to customs at Gioia Tauro. (Article 189 CCIP) If goods are presented at Gioia Tauro for which no ENS has been lodged, the customs office shall require the operating 'carrier', i.e. Company D, to lodge such a declaration immediately [Article 184c CCIP applies]. In the case of diversion of the vessel to another port in the same Member State e.g. to Naples, no advice of change of route is required under the Community regulations. Advice to and between the ports is left to national systems/surveillance. If the diversion is to a new first port in a Member State that was not included in the ENS, e.g. Marseilles, France, Company D (the operator of the vessel entering the customs territory) or its representative shall, immediately upon the change of its route, notify the customs office at Gioia Tauro of the diversion, by use of the ‘diversion notification’ message set out in Annex 30A CCIP. The ‘diversion notification’12 shall include the same information as the arrival notification as the arrival notification, i.e. either the ‘Entry Key’ for the vessel or a list of all the MRNs for all of the ENSs lodged by, on behalf of or instead of Company D, E,. F and G for all of the goods carried on the vessel. As explained above, Company D or its representative most likely will chose to include the “Entry Key” information in its diversion notification. The customs office at Gioia Tauro will notify the customs office at Marseilles, and pass on any risk information.

11 Normally, goods will be presented by the carrier, i.e. Company D, E, F or G as appropriate, or on their behalf. The goods may, however, be presented instead by the person who takes responsibility for the onward carriage of the goods’. This may be an agent, forwarder or temporary storage operator.

12 The Community legislation uses the term “diversion request”. This does not mean that the customs authorities may overrule the truck driver’s/master’s/captain’s decision to divert the truck/ship/air craft. However, the “Diversion Request” must include a number of specified data elements. If those data elements are not included, it will be rejected and a new, complete request must be lodged.

26 If, however, Marseilles is a planned call, or the vessel’s itinerary as declared in the ENS includes a call at any port in France, then no diversion notification is necessary. The French customs authorities will already have been advised by Gioia Tauro of any risk. No ENS need to be lodged with the customs office in Marseilles. Nor is an ENS required to be lodged in any subsequent port(-s) in the Community on the vessel’s itinerary. However, if the vessel after having called in Marseilles makes a call at a non-Community port (e.g. Agadir, Morocco) and then calls at a Community port (e.g. Barcelona, Spain), new ENSs must be lodged with the Customs office in Barcelona. The new ENSs must cover all cargo carried on the vessel, not just the cargo loaded in Agadir; the responsibilities and procedures for lodging these new ENSs remain the same as described above for the lodgement of ENSs with the customs office in Gioia Tauro. Goods unloaded in Marseilles must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office at Marseilles. (The same requirement applies to goods unloaded in any subsequent port(-s) in the Community, e.g. Barcelona).

2.3.3. Bulk cargo This scenario sets out the principles for maritime bulk cargoes. While this scenario involves deep sea bulk cargoes, it applies equally to short sea bulk cargoes except for the time limits for the lodging of the ENSs. A vessel, operated by Company Z, the 'carrier', loads cargo in bulk in Beira, Mozambique for carriage to Oporto, . Bulk ships will, in principle, transport either a single commodity (e.g. ore) or a limited number of commodities (e.g. ore, stone, cement). Bulk ships will typically call on only one or a couple of ports for discharge of their entire load. Company Z will issue a bill of lading to the shipper (or shippers) with whom it enters into a contract of carriage of the goods on the vessel. An ENS must be lodged electronically, for all cargo carried by the vessel, at the customs office of Oporto, [Article 184a (1)(b) CCIP applies]. The responsibility, under Article 36b (3) of the Code, for the lodgement of the ENS for the bulk cargo or cargoes lays with the company that operates the vessel carrying the goods into the customs territory of the Community. In bulk shipping, the person who will act as operator of the vessel (‘carrier’) and therefore be responsible for the lodgement of the ENS will depend on the contractual arrangement, i.e. the charter party. For the purpose of this example, company Z is pursuant to the charter agreement deemed to be the operator of the vessel. Article 5 CC allows any other person to lodge the ENS on behalf of Company Z, i.e. as a representative, e.g. a ship agent. Article 36b(4) CC, allowing another person (e.g. freight forwarder or importer) to lodge the ENSs instead of Company Z, will, typically, not be of relevance in bulk shipping.

27 At least 4 hours before arrival in Oporto13, the ‘carrier’, Company Z, must lodge (or have lodged on its behalf by a representative, e.g. ship’s agents) an ENS to the customs authorities at the port of Oporto for all of the cargoes for which it has issued bills of lading for carriage on the vessel. The carrier, Company Z, will be liable for the accuracy and relevance of the declaration. The customs office of Oporto will, immediately upon receipt, register the ENS(s) and notify Company Z electronically, of MRN. The customs office at Oporto will carry out risk analysis on the ENS(s) upon their receipt, in accordance with Article 184d CCIP. Immediately upon arrival of the vessel in Oporto, the carrier, Company Z, must lodge with customs office at Oporto an arrival notification in a manner acceptable to that customs office [Article 184g CCIP]. The arrival notification must contain information to allow identification by the customs authorities of all the ENSs lodged for all cargo on the vessel. This identifying information can take the form of either an “Entry Key” (i.e. mode of transport at the border; the IMO vessel number; and the expected date of arrival at the first place of arrival in the Community as declared in the ENS) or a list of all the MRNs for all the ENSs. Because in bulk shipping, there typically will be very few ENSs lodged for the cargoes onboard the bulk ship, most likely Company Z or its representative will elect to lodge the arrival notification in the form of a list of all the MRNs for all of the ENSs filed for all the cargoes carried on the vessel. All of the goods unloaded at Oporto must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. This summary declaration must be lodged with the customs authority no later than at the time of presentation of the goods. Any available commercial, port or transport inventory systems may be used, provided that they are approved by the customs authorities. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office of Oporto. Also, if acceptable to that customs office, it may take the form of a manifest or other transport document and can be combined with, or contain, the arrival notification. Goods remaining on board the vessel for discharge at subsequent ports, in the EU or beyond, need not be presented to customs at Oporto [Article 189 CCIP]. If goods are presented at Oporto for which no ENS has been lodged, the customs office shall require the operating 'carrier', i.e. Company Z, to lodge such a declaration immediately [Article 184c CCIP applies]. In the case of diversion of the vessel to another port in the same Member State e.g. to Lisbon, no advice of change of route is required under the Community regulations. Advice to and between the ports is left to national systems/surveillance. If the diversion is to a new first port in a Member State not declared in the ENS,, e.g. Malaga, Spain, Company D as the vessel operator must, immediately upon the change of its route, notify the customs office at Oporto of the diversion, by use of the ‘diversion

13 For short sea bulk cargoes, the entry summary declaration shall be lodged at the customs office of entry at least two hours before arrival at the first port in the customs territory of the Community.

28 notification’ message set out in Annex 30A CCIP, to identify all of the ENSs lodged by or on behalf of Company Z. While the “Entry Key” for the vessel may be used, in bulk shipping the ‘diversion notification’ may typically include a list of all the MRNs for all the ENSs lodged for the cargoes carried on the vessel. The customs office at Oporto will notify the customs office at Malaga, and pass on any positive risk information. If, however, Malaga is a planned port of call for the vessel, then no diversion notification is necessary. Malaga will already have been advised by Oporto of any risk. No ENS need to be lodged with the customs office in Malaga. Nor is an ENS required to be lodged in any subsequent port(s) in the Community on the vessel’s itinerary. However, if the vessel after having called in Malaga makes a call at a non-Community port (e.g. Tunis, Tunisia) and then calls at a Community port (e.g. Palermo, Italy), a new ENS must be lodged with the Customs office in Palermo. The new ENS must cover all cargo carried on the vessel, not just the cargo loaded in Tunis; the responsibility and procedures for lodging this new ENS remain the same as described above for the lodgement of ENSs with the customs office in Oporto. Goods unloaded in Malaga must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office of Malaga. (The same requirement applies to goods unloaded in any subsequent port(s) in the Community, e.g. Palermo).

2. 4. Air transport 2.4.1. Single carrier This example relates to air cargo and describes possible arrangements between carriers and third parties, e.g. freight forwarders and importers. An aircraft, operated by Carrier A, operates from Sydney, Australia. Carrier A loads the aircraft with consignments of cargo at Sydney Mascot Airport for carriage to EU ports. The aircraft’s first EU port of call is Amsterdam, (Schiphol Airport). Flight routing is Sydney, Singapore, Amsterdam, and London Heathrow. Additional consignments will be loaded in Singapore. Carrier A issues master air waybills to shippers for those consignments for which it enters into a contract. The master air waybill is the means of reference to this consignment and is the ‘primary’ reference for contract between Carrier A and its customer. Carrier A also issues master air waybills to a freight forwarder, Company Z, as a consolidator. Company Z will issue its own ‘house’ air waybills to its customers who may be exporters, shippers or freight forwarders. The house air waybill is the contract between company Z and its customers. An ENS must be lodged electronically, for all consignments carried on the aircraft, at the customs office at Schiphol Airport. [Article 184a (2) (a) and (b) CCIP applies]. The ENS must also include all goods that will remain on board the aircraft in Schiphol for discharge at subsequent airports in the EU or beyond.

29 The responsibility, under Article 36b (3) of the Code, for the lodgement of the ENS for all of the consignments lays with the carrier (Carrier A). Company Z, the forwarder, is not, for the purposes of this provision, deemed to be the carrier. Article 5 CC allows any other person to lodge the ENS on behalf of Company A, i.e. as a representative, e.g. a ground handling agent. Article 36b (4) CC also provides, that the forwarder, Company Z, may lodge the ENS instead of Carrier A. However, as Carrier A is obliged by law to see that this is done, Company Z can only lodge the ENS instead of Carrier A with the knowledge and consent of Carrier A. For flights of more than four hour duration, Carrier A must ensure that an ENS is lodged with the customs authorities at the airport of Schiphol at least 4 hours prior to arrival for all of the consignments carried on the aircraft, i.e. including those consignments carried for Company Z. Carrier A may either lodge (or have lodged on its behalf) these ENSs itself, or allow that Company Z can do so instead. For flights or under four hour duration, the ENS must be lodged at least at aircraft departure. The process and arrangements remain the same for ensuring the ENSs are lodged by Carrier A or by Company Z Carrier A may, however, have an arrangement whereby Company Z is to lodge the ENS for those consignments for which it, Company Z, has issued house air waybills. As the Carrier A is obliged by law to see that this is done, this lodgement by Company Z instead of the Carrier A must be with the knowledge and consent of the Carrier A. This will be part of the contractual arrangements between the air carrier and the other person. The customs office to which the declaration is made may assume that consent has been given unless there is evidence to the contrary. Where an ENS is lodged by Company Z instead of Carrier A, it must include, as well as the identity (EORI No.) of Carrier A, a reference to the master air waybill issued to him by Carrier A It is anticipated that, under the contractual arrangements between them, Carrier A will require Company Z to lodge the ENS by a reasonable time before the time limit of 4 hours before arrival at Schiphol. The lodgement of the ENS will render Company Z liable for its accuracy and relevance to the goods it is intended to cover [Articles 183 (1) & 199 CCIP]. The customs office of Schiphol will, immediately upon receipt, register each ENS and notify the declarant, electronically, of MRN. For the ENSs lodged by Company Z, notification will also be sent electronically to Carrier A provided that it has been identified with its EORI number in the ENSs lodged by Company Z, and has an electronic interface with the customs office of entry. If this is not the case, notification of the MRN will not be sent to the carrier. Notification of the MRN will provide evidence for Carrier A that an ENS has been lodged and its obligations under Article 36b(3) of the Code have been met. Where Carrier A has requested the customs authorities to send such notifications, it will also be notified electronically if Company Z subsequently makes an amendment to its ENS (again, provided that Carrier A has been identified with its EORI number in the ENSs lodged by Company Z, and has an electronic interface with the customs office of

30 entry) [Article 183 (8) CCIP]. The amendment notification will contain only data directly associated with the transport arrangements.14 The customs office at Schiphol will carry out risk analysis on the ENSs upon their receipt, in accordance with Article 184d CCIP. Immediately upon arrival of the aircraft in Schiphol, the carrier, Carrier A, or its representative must, as the operator of the active means of transport, lodge with the customs office at Schiphol an arrival notification in a manner acceptable to that customs office [Article 184g CCIP]. The arrival notification must contain information to allow identification by the customs authorities of all the ENSs lodged for all cargo carried on the aircraft. This identifying information can take the form of either an “Entry Key” (i.e. mode of transport at the border; the flight identification number; and the expected date of arrival at the first place of arrival in the Community as declared in the ENS) or a list of all the MRNs for all the ENSs. All of the goods unloaded at Schiphol must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. This summary declaration must be lodged with the customs authority no later than at the time of presentation of the goods. Commercial, airport or transport inventory systems may be used, provided that they are approved by the customs authorities. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office of Schiphol. Also, if acceptable to that customs office, it may take the form of a manifest or other transport document and can be combined with, or contain, the arrival notification. Goods remaining on board the aircraft for discharge at subsequent ports, in the EU or beyond, need not be presented to customs at Schiphol [Article 189 CCIP]. If goods are presented at Schiphol for which no ENS has been lodged, the customs office shall require the operating 'carrier', i.e. Carrier A, to lodge such a declaration immediately [Article 184c CCIP applies]. In the case of diversion of the aircraft to another airport in the same Member State e.g. to Rotterdam, no advice of change of route is required under the Community regulations. Advice to and between the airports is left to national systems/surveillance. If the diversion is to a new first airport in a Member State that was not declared in the ENS, e.g. Brussels, Carrier A [the operator of the active means of transport entering the customs territory] or its representative shall, immediately upon the change of its route, advise the customs office at Schiphol of the diversion, by use of the ‘diversion notification’ message set out in Annex 30A CCIP. The ‘diversion notification’15 shall include the same information as the arrival notification, i.e. either the ‘Entry Key’ for the aircraft or a list of all the MRNs for all of

14 Carrier A will also receive electronically the MRNs for the entry summary declarations it itself has lodged. Similarly, it will receive electronically an “amendment acceptance message” for any amendments it may make to its entry summary declarations.

15 The Community legislation uses the term “diversion request”. This does not mean that the customs authorities may overrule the captain’s decision to divert the air craft. However, the “Diversion Request” must include a number of specified data elements. If those data elements are not included, it will be rejected and a new, complete request must be lodged.

31 the ENSs lodged by, on behalf of or instead of Carrier A for all of the goods carried on the aircraft. The customs office at Schiphol will notify the customs office at Brussels, and pass on any positive risk information. If, however, Brussels airport is a planned stopping point for the aircraft, then no diversion notification is necessary. Brussels will already have been advised by Schiphol of any risk. No ENS need to be lodged with the customs office in Brussels. Nor is an ENS required to be lodged in any subsequent port(-s) in the Community on the aircrafts itinerary, e.g. London Heathrow. However, if the aircraft after its stop in Brussels makes a stop at a non-Community airport (e.g. Kiev, ) before flying to London Heathrow, a new ENS must be lodged with the Customs office in Heathrow. The new ENS must cover all cargo carried on the aircraft, not just the cargo loaded in Kiev; the responsibility and procedures for lodging this new ENS remains the same as described above for the lodgement of ENSs with the customs office at Schiphol. Goods unloaded in Brussels must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office at Brussels. (The same requirement applies to goods unloaded in any subsequent port(-s) in the Community, e.g. London Heathrow). Same rules apply for the cargo loaded in Singapore.

2.4.2. Interline arrangement This scenario specifically addresses the ‘interline’ arrangements that exist between many airlines. IATA members can participate in Multilateral Interline Traffic Agreements (MITA) for cargo. Under such an agreement airlines use a standard traffic document (i.e. the air waybill) to transport cargo on various carriers involved in a routing in order to reach a final destination. Carrier A operates an aircraft with flight identification number AA1234 from Sydney to Amsterdam (Schiphol Airport). Carrier A has an interline arrangement with Carrier B. For manifest purposes, Carrier A’s flight identification number AA1234 is used for all Carrier B consignments. In the described interline arrangement between Carrier A and Carrier B, it will be carrier A who takes responsibility to ensure that ENSs are lodged for all consignments for flight AA1234. Carrier A will lodge ENSs for its own air waybill consignments as described in the “Single carrier” scenario (2.4.1.). Carrier B has an arrangement with Company Z, e.g. a freight forwarder, whereby Carrier B will undertake all ENSs for those consignments for which it has issued its own ‘air waybills’ to Company Z. The flight number provided on the ENSs lodged by Carrier B will be AA1234. Carrier A remains, however, responsible that all consignments with AA1234 are covered by ENSs.

32 Where an ENS is lodged by Carrier B instead of Carrier A, i.e. other than on his behalf, the lodgement of that declaration will render Carrier B, as the declarant, liable for its accuracy and relevance to the goods its is intended to cover. [Articles 183 (1) & 199 CCIP]. In its ENS, Carrier B must identify Carrier A as the “carrier” with Carrier A’s EORI number. The customs office at Schiphol will, immediately upon receipt, validate and register each ENS and notify Carrier B (the declarant) electronically of the MRN. The notification will also be sent electronically to Carrier A provided that Carrier A has been identified with its EORI number in the ENSs lodged by Carrier B and has an electronic interface with the customs office of entry. If this is not the case, notification of the MRN will not be sent to Carrier A. Notification of the MRN will provide evidence for Carrier A that an ENS has been lodged and his obligations under Article 36b(3) of the Code have been met. 16 Where Carrier A has requested the customs authorities to send such notifications, it will also be notified electronically if Carrier B subsequently makes an amendment to its ENS (again, provided that Carrier A has been identified with its EORI number in the ENSs lodged by Carrier B, and has an electronic interface with the customs office of entry) [Article 183 (8) CCIP]. The notification will contain only data directly associated with the transport arrangements. The customs office at Schiphol Airport will carry out risk analysis on the ENSs lodged by Carrier A and Carrier B upon their receipt, in accordance with Article 184d CCIP. On arrival of the aircraft at Schiphol Airport, the Carrier A or his representative, e.g. ground handling agent, shall as the operator of the active means of transport lodge with customs office at Schiphol Airport an arrival notification [Article 184g CCIP] containing the ‘Entry Key’ reference to enable identification of all of the ENSs for flight AA1234 and for which the ENSs have been lodged by Carrier A and Carrier B. Arrival notification, presentation of goods to customs and potential diversion procedures are the same as those depicted in the “SINGLE CARRIER” scenario.

2.4.3. Code share arrangement This scenario specifically addresses the ‘code share’ arrangements referred to in Article 183c CCIP. Carrier A operates an aircraft with flight identification number AA1234 from Sydney to Amsterdam (Schiphol Airport). Carrier A has a code share arrangement with Carrier B. For manifest purposes, Carrier B’s flight identification number is BB4567. In the described code share arrangement between Carrier A and Carrier B, it will be carrier B who takes responsibility to ensure that ENSs are lodged for all consignments for flight BB4567. Carrier A is responsible that ENSs are lodged for all consignments for flight AA1234.

16 Carrier A will also receive electronically the MRNs for the entry summary declarations it itself has lodged. Similarly, it will receive electronically an “amendment acceptance message” for any amendments it may make to its entry summary declarations.

33 Carrier B has an arrangement with Company Z, e.g. a freight forwarder, whereby Company Z will undertake all ENSs for those consignments for which it has issued its own ‘house’ air waybills. The flight number provided on the ENSs lodged by Company Z will be BB4567. Carrier B remains, however, responsible that all consignments with BB4567 are covered by ENSs. Where an ENS is lodged by Company Z instead of Carrier B, it must include, as well as the identity (EORI No.) of Carrier B, a reference to the master air waybill issued to him by Carrier B. The lodgement of the declaration will render Company Z, as the declarant, liable for its accuracy and relevance to the goods it is intended to cover. [Articles 183 (1) & 199 CCIP]. The customs office at Schiphol will, immediately upon receipt, validate and register each ENS and notify the declarant electronically of MRN. For the ENSs lodged by Company Z, notification will also be sent electronically to Carrier B provided that Carrier B has been identified with its EORI number in the ENSs lodged by Company Z and has an electronic interface with the customs office at Schiphol. If this is not the case, notification of the MRN will not be sent to the carrier. Notification of the MRN Notification of the MRN will provide evidence for Carrier B that an ENS has been lodged and his obligations under Article 36b(3) of the Code have been met. 17 Where Carrier B has requested the customs authorities to send such notifications, it will also be notified electronically if Company Z subsequently makes an amendment to its ENS (again, provided that Carrier B has been identified with its EORI number in the ENSs lodged by Company Y, and has an electronic interface with the customs office of entry) [Article 183 (8) CCIP]. The amendment notification will contain only data directly associated with the transport arrangements. The customs office at Schiphol Airport will carry out risk analysis on the ENSs lodged by Carrier A, Carrier B and Company Z upon their receipt, in accordance with Article 184d CCIP. On arrival of the aircraft at Schiphol Airport, the Carrier A or his representative, e.g. ground handling agent, shall as the operator of the active means of transport lodge an arrival notification18 with the Customs office at Schiphol in a manner acceptable to that customs office [Article 184g CCIP]. It will be up to the national customs authorities to decide if an arrival notification for code share arrangements must be lodged for each flight identification number or a single arrival notification may include multiple flight identification numbers. In any event, Carrier A or its representative is the party responsible for lodging the arrival notification (-s). If a single arrival notification is required to be lodged by Carrier A or its representative, it must contain information to allow identification by the customs authorities of all the ENSs lodged for all the cargo that Carrier A and Carrier B are having carried on the

17 Carrier B (and A) will also receive electronically the MRNs for the entry summary declarations it itself has lodged. Similarly, it will receive electronically an “amendment acceptance message” for any amendments it may make to its entry summary declarations.

18 The Community legislation assumes the lodgement of a single Arrival Notification. However, individual Member States may require the lodgement of multiple Arrival Notifications in the case of code share arrangements. Air carriers are strongly urged to contact the authorities of the EU countries that they serve to confirm the requirements for compliance purposes.

34 aircraft. This identifying information can take the form of either an “Entry Key” (i.e. mode of transport at the border; the flight identification number; and the expected date of arrival at the first place of arrival in the Community as declared in the ENS) or a list of all the MRNs for all the ENSs. If the “Entry Key” identification information is used – which it most likely will be as Carrier A may not know the MRNs for the ENSs lodged by, on behalf or instead of Carrier B - then both flight identification numbers, i.e. AA1234 and BB4567, must be included in the single arrival notification. If two arrival notifications are required to be lodged by Carrier A or its representative, each of the arrival notifications must contain information to allow identification by the customs authorities of all the ENSs lodged for the cargo that each of the two carriers are having carried on the aircraft. If the “Entry Key” is used, one of the arrival notifications should include flight identification number AA 1234, and the other arrival notification should include flight identification number BB 4567 Again, if acceptable to the customs office at Schiphol, the arrival notification(-s) may be in the form of a cargo manifest, provided that it contains the necessary particulars required by the customs authorities. Alternatively, it may be in the form of an electronic report filed through the airport inventory or community system. All of the goods unloaded at Schiphol must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. This summary declaration must be lodged with the customs authority no later than at the time of presentation of the goods. Any available commercial, port or transport inventory systems may be used, provided that they are approved by the customs authorities. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office at Schiphol. Also, if acceptable to that customs office, it may take the form of a manifest or other transport document and can be combined with, or contain, the arrival notification. Goods remaining on board the aircraft for discharge at subsequent airports, in the EU or beyond, need not be presented to customs at Schiphol [Article 189 CCIP]. If goods are presented at Schiphol for which no ENS has been lodged, the customs office shall require Carrier A as the operator of the active means of transport entering the customs territory of the Community, to lodge such a declaration immediately [Article 184c CCIP applies]. In the case of diversion of the aircraft to another airport in the same Member State e.g. to Rotterdam, no advice of change of route is required under the Community regulations. Advice to and between the airports is left to national systems/surveillance. If the diversion is to a new first airport in a Member State that was not declared in the ENS, e.g. Brussels, Carrier A [the operator of the active means of transport entering the customs territory] or its representative e.g. ground handling agent, must advise the customs office at Schiphol of the diversion, by use of the ‘diversion notification’ message set out in Annex 30A (CCIP).

35 Two ‘diversion notifications’19 will be required to be lodged by Carrier A or its representative at the Customs office at Schiphol – one for flight identification number AA 1234 and one for flight identification number BB 4567. Each of the diversion notifications shall include information to allow the customs office at Schiphol to identify all the ENSs lodged by, on behalf of or instead of Carrier A and Carrier B for all the consignments on flight AA 12334 and BB 4567, respectively. This can be done, in each diversion notification, by including either the “Entry Key” information (i.e. mode of transport at the border; the flight identification number; and the expected date of arrival at the first place of arrival in the Community as declared in the ENS) or, for either flight, a list of all the MRNs for all of the ENSs for the consignments carried on that flight. The customs office at Schiphol will notify the customs office at Brussels, and pass on any positive risk information. If, however, Brussels airport is a planned stopping point for the aircraft, then no diversion notification is necessary. Brussels will already have been advised by Schiphol of any risk. No ENS need to be lodged with the customs office in Brussels. Nor is an ENS required to be lodged in any subsequent port(s) in the customs territory of the Community on the aircrafts itinerary. However, if the aircraft after its stop in Brussels makes a stop at a non-Community airport (e.g. Kiev, Ukraine) before flying to London Heathrow, new ENSs must be lodged with the customs office in Heathrow. The new ENSs must cover all consignments for flight AA 1234 and flight BB 4567, not just the cargo loaded in Kiev; the responsibilities and procedures for lodging these new ENS remain the same as described above for the lodgement of ENSs with the customs office at Schiphol. Goods unloaded in Brussels must be presented to the customs authorities and must, unless a declaration for a customs procedure, or proof of Community status, is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage. The summary declaration for temporary storage will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office at Brussels. (The same requirement applies to goods unloaded in any subsequent port(-s) in the Community, e.g. London Heathrow).

2.4.4. Transhipment Carrier A issues a master air waybill to company B, who acts as a consolidator, for the transport of goods from Santiago de Chile to Madrid. Company B has issued its own air waybills for the transport of the goods from Santiago de Chile to Brussels (final destination). He contracts with company A the transport from Santiago to Madrid and uses its own plane for the transport from Madrid to Brussels. The ENS and arrival notification must be lodged in Madrid (first point of entry), while the summary declaration for temporary storage should be lodged in Brussels. The latter declaration should make reference to the previous ENS, but the person lodging the

19 The Community legislation uses the term “diversion request”. This does not mean that the customs authorities may overrule the captain’s decision to divert the aircraft. However, the “Diversion Request” must include a number of specified data elements. If those data elements are not included, it will be rejected and a new, complete request must be lodged.

36 summary declaration for temporary storage may not know the Entry Key because the means of transport has changed, unless Company B lodges both declarations (which is an option but not an obligation). [Practical solution to be inserted]

2.5. Amendment 2.5.1. Introduction The specifications for the ICS do not make allowance for any need to cancel an ENS. Indeed there is no requirement for goods declared on ENS to arrive in the customs territory of the Community. Ordinarily if goods do not appear the ENS would, after a period of time (200 days), be simply purged from the ICS. Provisions are however made for the ENS to be amended in certain circumstances. The purpose of this section is to consider a number of potential scenarios and clarify the expected actions to be undertaken. It should be stressed that the declarant of an ENS always has the option to lodge a new ENS instead of amending the original ENS. There are a small number of restrictions on what can be amended within the ENS and when the amendment can take place: – From a legal point of view, there is no restriction in the CC or the CCIP. However, the particulars concerning the person lodging the ENS, the representative and the customs office of first entry should not be amended in order to avoid technical problems. – The time limits for the lodging of the ENS do not start again after the amendment since it is the initial declaration that sets them. – Risk analysis is performed on the basis of the ENS. Where an amendment is made, risk analysis is performed again with regard to the amended particulars. This will have an impact on the release of the goods only where the amendment is made so shortly before the arrival of the goods, that the customs authorities need additional time for their risk analysis. Additionally, the Article 36b (5) CC sets out that an amendment request cannot be accepted if one of the following conditions is met: – the person lodging the original ENS has been informed that the office of first entry intend to examine the goods; – the customs authorities have established that the particulars in question are incorrect; or – the office of first entry, upon presentation of the goods, has allowed their removal. Amendments shall be lodged by the same person that lodged the original ENS or its representative. However as amendments can only be lodged at the customs office of first entry the filer – or its representative – would need to be IT connected to that office.

37

2.5. 2. Deep sea containerised traffic An ENS for containerised goods to be moved on a deep sea maritime vessel is submitted to an office of first entry no later than 24 hours before commencement of loading. It is subsequently established that some of the details are incorrect or can be supplemented.20 Is the amendment made before commencement of loading? If yes, go to a). Is the amendment made after commencement of loading and before arrival at the customs office of first entry? If yes, go to b). a) If the amendment is made before commencement of loading, i.e. within the 24 hour “window” that was opened when the original ENS was lodged, it must be sent to the office of first entry which will validate and accept, as appropriate, the revised information. The amendment message must include, and the original ENS will retain, the original MRN. The declarant and, provided it has requested to receive such notifications, also the carrier will be advised of the successful update to the ENS. The amended ENS information will again be sent for risk assessment and messages exchanged as required. As the consignment is a deep sea maritime movement, the amended ENS information may result in the issuing of a Do Not Load message but only as long as any such message is issued within the 24 hour period from the lodgement of the original ENS. Lodgement of an amendment will not re-start that 24 hour time period. A business process will therefore be required of the customs office of first entry to ensure that the officer taking the decision to issue a Do Not Load message is aware that this is an amendment and that it will be necessary to check whether 24 hours have passed since the original ENS was submitted. b) If the amendment is made at any time between commencement of loading and arrival at the office of first entry the amendment must be sent to the customs office of first entry which will validate and accept, as appropriate, the revised information. The amendment message must include, and the original ENS will retain, the original MRN. The declarant and, provided it has requested to receive such notifications, also the carrier will be advised of the successful update to the ENS. The ENS information will again be sent for risk assessment and messages exchanged as required. As the amendment has been lodged after the expiration of the 24 hour time period since the lodging of the original ENS, and as the amendment does not result in a re-start of that time period, the issuing of a Do Not Load message is not possible. A business process will be required of the customs office of first entry to ensure that its risk assessment process recognizes that this is an amendment lodged at least 24 hours since the original ENS was lodged. If, based on the amended ENS, it is determined that the shipment represents a risk, the customs office of first entry would need to determine if the risk can appropriately be addressed at the actual port of discharge (Risk Type C) or whether it represents such a significant threat that it otherwise would have a resulted in a Do Not Load message and therefore must be addressed already at the first port of entry (Risk Type B).

20 The Community legislation allows that an ENS can be lodged at another customs office (“office of lodgement”) than the customs of first entry provided that the Member States concerned bilaterally agree to such an arrangement. However, any amendments to the originally lodged ENS must be made to the customs office of first entry; they cannot be lodged with the customs office of lodgment. Therefore, the amendment processes described in this and subsequent sections do equally apply to situations where the ENS was originally lodged with a customs office of lodgment.

38 If, for whatever reason, the Customs office of first entry is unable to address a Risk Type B shipment at the actual port of discharge, it should immediately notify the customs offices at subsequent ports accordingly.

2.5. 3. Non-containerised traffic An ENS for non-containerised deep sea shipments is submitted to a customs office of first entry. It is subsequently established that some of the details are incorrect or can be supplemented. For all shipments other than containerised deep sea maritime shipments, there is only one relevant amendment situation, i.e. an amendment made before arrival at the Office of First Entry. The amendment must be sent to the customs office of first entry which will validate and accept, as appropriate, the revised information. The amendment message must include, and the original ENS will retain, the original MRN. The declarant and, provided it has requested to receive such notifications, also the carrier will be advised of the successful update to the ENS. The ENS information will again be sent for risk assessment and messages exchanged as required. A business process will be required by the Customs office of first entry to ensure that the risk assessment process recognizes that this is an amendment; it will also be necessary to check whether the goods have already arrived at the office of first entry. The new risk assessment may result in a determination to intercept the shipment at the first port of arrival/entry (Risk Type B) or – in the case of maritime and air shipments - at the actual (air-)port of discharge (Risk Type C). Any risks identified must be communicated by the customs office of first entry to subsequent ports, if any. If, for whatever reason, the customs office of first entry is unable to address a Risk Type B shipment at the actual (air)port of discharge, it should immediately notify the Customs offices at subsequent (air)ports accordingly.

2.5.4. Goods short shipped An ENS is submitted to a customs office of first entry. It is subsequently established that goods covered by the ENS were short shipped. The goods are then loaded on to another conveyance that will arrive in the customs territory of the Community. Does the affected consignment only form part of an ENS? If yes, go to a). Does the affected consignment form the totality of the ENS and the new conveyance’s itinerary includes the same customs office of first entry? If yes go to b). Does the affected consignment form the totality of the ENS but the new conveyance’s itinerary includes a different customs office of first entry? If yes, go to a). a) If the affected consignments only form part of an ENS, then the ENS may be amended to remove the short shipped items. The amendment must be sent to the customs office of first entry which will validate and accept, as appropriate, the revised information. The amendment message must include, and the original ENS will retain, the original MRN. The declarant and, provided it has requested to receive such notifications, also the carrier will be advised of the successful update to the ENS. The ENS information will again be sent for risk assessment and messages exchanged as required. b) As noted, the declarant may lodge an amendment to purge the short shipped goods from the original ENS. However, the declarant must in any event lodge a new ENS for 39 the cargo that was short shipped if that cargo is subsequently loaded onto another conveyance that is to arrive in the Community. The new ENS must be sent to the customs office of first entry where the other (new) conveyance is to arrive at in the Community, and whether or not that office of first entry is different from the office of first entry declared in the original ENS before the cargo was short shipped. Where only part of a consignment is short-shipped and it is not possible to determine which specific items are in that part, then the new ENS will contain details for all the items. The new ENS must be lodged in accordance with the timeframes set down in the legislation. The customs office of first entry will undertake a risk assessment based on the new ENS.21 If the affected consignments form the totality of the ENS and the new conveyance’s itinerary includes the same customs office of first entry, then the original ENS can be updated with the actual details. . Alternatively, a new ENS may be lodged in accordance with the timeframes set down in the legislation. The customs office of first entry will undertake a risk assessment based on the new ENS∗. c) If the affected consignments form the totality of the ENS but the new conveyance’s itinerary includes a different customs office of first entry, then a new ENS must be lodged. A new ENS will be required for the cargo since ICS precludes changing the customs office of first entry on the ENS. This will need to be sent to the actual, new customs office of first entry in accordance with the timeframes set down in the legislation. The actual, new customs office of first entry will undertake a risk assessment based on the new ENS.

2.5.5. Goods off-loaded in a non-Community port An ENS is submitted to a customs office of first entry. It is subsequently established that goods covered by the ENS were off-loaded in a non-Community port before the conveyance arrives in the Community. Goods that never show up in the customs territory of the Community do not constitute a security risk for the Community. Thus, even though such goods were included in the originally submitted ENS, there is no requirement to file an amendment to purge these goods from the ENS. However, the declarant may, for other reasons, choose to amendment the original ENS in which case the same procedure applies as described in previous scenarios.

2.6. Diversion 2.6.1. Conveyance diversion An ENS is submitted to a customs office of first entry. It is subsequently established that the goods are on-board a vessel (or aircraft) that no longer will call at its declared Office of First Entry but is diverted to an alternative port (or airport) instead. An amendment is not appropriate in such conveyance diversion situations. a) The new customs office of first entry in a Member State is not declared in the ENS:

21Which in the case of deep sea containerized shipments may result in the issuance of "Do Not Load" messages.

∗ See footnote above

40 If the vessel (or aircraft) calls at a customs office of first entry situated in a Member State that was not on the itinerary as declared in the ENS then a Diversion request should be submitted to the original customs office of first entry. This office will ensure that any identified positive risks are forwarded to the changed customs office of first entry and remove the need for the carrier to re-submit all the ENSs. b) The new customs office of first entry in a Member State is declared in the ENS: If the vessel calls at a customs office of first entry situated in a Member State that was on the original itinerary then a Diversion request is not needed as the Member State responsible for the new customs office of first entry will have already received details of the positive risks.

2.6.2. Cargo diversion Quite often goods, but not the conveyance itself, may be diverted to another (air-)port of discharge. Such cargo diversion may, for example, happen if the goods are sold in transit. Or an importer may direct that the goods be discharged in another (air-)port than originally intended due to changes in its inventory supply and demand. The ENS may be amended to reflect such cargo diversions. The amendment process would in that case be the same as described in the scenarios above. The goods that have been diverted to another (air)port of discharge must be included in the manifest lodged at arrival in the discharge (air)port. They must also, unless a declaration for a customs procedure or proof of Community status is lodged immediately with the customs authorities, be covered by a summary declaration for temporary storage that will consist of a reference to the ENS, supplemented by whatever additional information is required by the customs office at the (air)port of discharge.

3. The Import Control System (ICS) The ICS is systems architecture developed by the Community and Member States for the lodging and processing of ENS, and for the exchange of messages between national Customs administrations, between them and economic operators, and with the European Commission. ICS will form part of the Automated Import System (AIS) whose objective it is to ensure that import operations starting in one Member State can be completed in another Member State without re-submission of the same information. ICS is made up of three “domains”: (a) The “common domain” for exchanges between the EU Member States and the European Commission; (b) The “national domain” made up of the national Customs computer systems and the associated risk management processes; and (c) The “external domain” being the interface between economic operators and the national Customs administrations for the lodging of ENS, issuance of MRN as receipt for the ENS filing, any "Do Not Load" (DNL) messages etc. It is through the “external domain” that the ENS normally would be filed according to nationally determined technical specifications, message formats and structures etc. ICS will be implemented in phases. Phase 1 will start on 1 July 2009. It covers the lodging, handling and processing of ENS; exchange of safety and security risk analysis results between Member States; and the handling of international diversions.

41 ICS Phase 1 will not cover arrival notifications, the presentation of goods and the handling of customs declarations; these activities will remain national matters. However, it should be noted that the arrival notification to be lodged with the customs office of first entry in accordance with Community legislation will need to include a reference, where applicable, to the previously lodged ENS. Similarly the summary declaration for temporary storage must also include a reference, where applicable, to the previously lodged ENS.

PART C – GOODS LEAVING THE CUSTOMS TERRITORY OF THE COMMUNITY

1. Pre-departure declaration 1.1. Obligation to lodge a pre-departure declaration, exceptions 1.1.1 Obligation Without prejudice to transitional rules and exceptions, with effect from 1 July 2009, Community legislation requires that an export/re-export declaration or an exit summary declaration must be lodged before departure/before loading containerised cargo in deep sea traffic (cases referred to in Article 592b(1)(a)(i) CCIP). In accordance with Articles 787(1), 841(1), 841a(1) and 842b(1) CCIP, the export/re- export or exit summary declaration shall be lodged electronically. It shall contain the particulars laid down for such declaration in Annex 30A CCIP and shall be completed in accordance with the explanatory notes in that Annex. The declaration shall be authenticated by the person making it. 1.1.2 Exceptions No pre-departure is required in the cases laid down in Article 592a and 841a CCIP. Furthermore, an export declaration without the EXS data is required where Community goods are dispatched directly to a territory belonging to the customs territory of the Community but not to its fiscal territory and the rules on exportation apply in accordance with Articles 278 - 280 of Directive 2006/112/EC (OJ 2006 No L 347, p.1).

1.2. Place where must the declaration be lodged and where the security-related risk analysis takes place The place where the pre-departure declaration can or must be lodged is described in Part A under point 2.3. This is also the place where the security-related risk analysis takes place. If a customs office of lodgement is used, the risk analysis is nevertheless performed at the customs office of export or exit. 1.3. Responsible person 1.3.1. Where a customs declaration is required The person responsible or allowed to lodge the customs declaration such as: - the exporter or holder of the outward processing procedure (export, outward processing), - the principal (transit, use of safety and security data is optional; alternative: a separate EXS, see point 1.3.2.),

42 - the person re-exporting non-Community goods after use of a customs procedure with economic impact (customs warehousing, inward processing, temporary admission, processing under customs control). Any of those persons may use a representative. 1.3.2. Where a customs declaration is not required This concerns exit from free zones and temporary storage, movement of Community goods via a third country, and external transit ending at a customs office of exit: the carrier (exit summary declaration). He may use a representative. 1.4. Reduced data – AEO Holders of an AEO certificate referred to in Article 14a (1) points (b) or (c) CCIP exporting goods may lodge pre-departure declarations comprising the reduced data requirements set out in Table 5 of Annex 30A CCIP. Carriers, freight forwarders or customs agents who are holders of an AEO certificate referred to in point (b) or (c) of Article 14a (1), and are involved in the importation or exportation of goods on behalf of holders of AEO certificate referred to in point (b) or (c) of Article 14a (1) may also lodge pre-departure declarations comprising the reduced data requirements set out in Table 5 of Annex 30A CCIP. Which persons need to be an AEO (holders of an AEO certificate -Security and Safety or of an AEO certificate – Customs Simplifications/Security and Safety) in order to submit a declaration containing the reduced security data set: – Exit summary declaration: The person lodging the exit summary declaration and all consignors declared in the exit summary declaration. In case the exit summary declaration is lodged by a representative of the person responsible for lodging the exit summary declaration, the representative and all consignors declared in the exit summary declaration.

– Export declaration: Article 182b CC specifies that, in case the goods leaving the Community are covered by a customs declaration, this customs declaration shall contain the data elements of an exit summary declaration. – The declarant in case he lodges himself the export declaration. - If the export declaration is lodged by the representative of the declarant, the representative (using the code "2" or "3" in box 14 of the SAD for indicating the representation) and all consignors/exporters (box 2 of the SAD) declared in the export declaration. 1.5. Amendments of exit summary declarations - Article 182d (4) CC The person referred to in paragraphs 3 and 4 of Article 36b CC shall, at his request, be authorised to amend one or more particulars of the summary declaration after it has been lodged. From a legal point of view, in the CC or the CCIP there is no restriction to amend one or more particulars of the summary declaration. However, the particulars concerning the person lodging the ENS, the representative and the customs office of first entry should not be amended in order to avoid technical problems. 43 If at the time of amendment, the ship has left the port of departure, a "No load" message is no longer possible.

1.6. Time limits for lodging a pre-departure declaration TRANSPORTATION MODE TIME LIMITS Containerised maritime cargo (except short sea containerised At least 24 hours before shipping) commencement of loading in each foreign load port Bulk/ break bulk maritime cargo (except short sea bulk/ break At least 4 hours before arrival at the bulk shipping) first port in the Community Short sea shipping: Movements between Greenland, Faroe Islands, Ceuta, Melilla, Norway, Iceland, ports on the Baltic Sea, ports on the North Sea, ports on the At least 2 hours before arrival at the Black Sea or ports on the Mediterranean first port in the Community and The Community except French overseas department, Azores, Madeira and Canary Islands Short sea shipping: Movements with a duration of less than 24 hours between A territory outside the customs territory of the Community At least 2 hours before arrival at the first port in the Community and The French overseas departments, Azores, Madeira and Canary Islands

Short haul flights (less than 4 hours duration) At least by the time of the actual take off of the aircraft Long haul flights (more than 4 hours duration) At least 4 hours before arrival at the first airport in the Community

Rail and inland waterways At least 2 hours before arrival at the customs office of entry in the Community Road traffic At least 1 hour before arrival at the customs office of entry in the Community

1.7. Specific codes and rules for air and ship supplies 1.7.1. Introduction 44 Annex 30A CCIP provides that "a specific simplified goods nomenclature will be published by the Commission" in respect of exit summary declarations for ship and aircraft supplies. The following guidelines contain this nomenclature. 1.7.2. The situation in respect of security Discussions in preparation to the adoption of Regulation 1875/06 have clearly indicated that all exports from the Community should be subject to pre-departure declarations. However, air and ship stores and supplies and spare parts for planes and ships being by essence used or consumed on board the aircraft or the vessel and not being destined to be imported in another country, should benefit from special provisions. These provisions feature a specific dataset, and the request for a simplified goods nomenclature. Such a simplified nomenclature already exists in respect of external trade statistics. 1.7.3. The situation in respect of external trade statistics Extrastat Commission Regulation (EC) No 1917/200022 Article 23 and 24 (amended by Commission Regulation (EC) No 1949/200523) deals with goods delivered to vessels and aircraft. This concerns nearly exclusively exports. Goods intended for the consumption (by persons & engine) on board of foreign vessels and aircraft at national harbours or airports are reported with the simplified CN codes. The transmission of these CN codes to Eurostat is mandatory. Intrastat National Statistical authorities request from trade operators to provide data on goods delivered to vessels and aircraft according to the specific CN codes. Extrastat National Statistical authorities have the following possibilities: – Direct collection of the CN codes via Customs in the case the customs authorities allow the declaration of the specific CN codes, – Direct collection of the information via trade operators. In most of the cases, catering, supply companies and warehouses located at national harbours and airports are responsible for providing the information and are well known by the statistical authorities (because they provide also information for Intrastat). In this case the statistical authorities have to ensure that corresponding Customs declarations are exempted. Otherwise double counting of the trade would happen. Specific reporting procedures are applied for deliveries of products for the crew and passengers as well as for the operation of engines, machines and other equipment of vessels or aircraft registered in the partner country. It doesn’t matter whether the vessels or aircraft are managed or used for commercial, military or private purposes. The provisions apply exclusively to goods which will (presumably) not leave anymore the vessel or aircraft because they are consumed during the journey of the vessel or aircraft. It is recommended reporting the delivery of long living goods (equipment) which stay on the vessel or aircraft according to the normal detailed declaration (e.g.

22 http://eur-lex.europa.eu/LexUriServ/site/en/oj/2000/l_229/l_22920000909en00140026.pdf

23 http://eur-lex.europa.eu/LexUriServ/site/en/oj/2005/l_312/l_31220051129en00100017.pdf

45 delivery of bed linen, of musical instruments for the musicians of the ship, TV sets for the cabins and other durable goods). The partner country shall be the country where the ship or aircraft is registered/flying the flag. However, a simplified Q-series country code specific to stores and provisions reporting is possible http://eurlex.europa.eu/LexUriServ/site/en/oj/2006/l_354/l_35420061214en00190028.pd f

1.7.4. List of Codes The codes to be used in respect of pre-departure ship and aircraft supplies summary declarations should be the following codes, as defined in Article 24 of Regulation 1917/200024: – 99302400: goods from CN chapters 1 to 24; – 99302700: goods from CN Chapter 27; – 99309900: goods classified elsewhere.

1.7.5. Scenario – ship supplies Alcohol and tobacco from a customs warehouse (non-Community goods) and from the Polish market in Gdynia (Community goods) are loaded on a ship travelling between Gdynia (PL), Hull (UK) and Felixstowe (UK). The ship does not call any port situated outside the customs territory of the Community.

What type of declaration is required? [Proposed answer: For the non-Community goods a re-export declaration is required; this ends the customs warehousing procedure. For the Community goods an export declaration is required. The safety and security data of Annex 30A CCIP must be included in both cases according to Articles 787 and 841 CCIP. It should be noted however that Article 592a (j) CCIP waives the application of Articles 592a – 592f CCIP, i.e. the rules on time limits and safety and security risk analysis prior to departure. One may wonder however whether goods moving between Community ports and temporarily leaving the customs territory can be considered as (re)exported.] Is an export/re-export declaration required if the goods are transported by a regular shipping service? [Proposed answer: Under the rules for regular shipping services, Community goods maintain their status, non-Community goods are in external transit (this would end the customs warehousing procedure, but transit cannot be discharged through consumption of the goods). This would imply that no export/re-export declaration is required. An exit summary declaration is not necessary either (Article 592a (j) CCIP). ]

24 Where a combined summary/export declaration is concerned (note 3.1 annex 30A), this simplified nomenclature is applicable without prejudice to the possible requirement of more detailed goods code. In particular, if the declaration is also a request for export refund in case of victualling based on Regulation 800/1999, it is necessary to provide the normal CN nomenclature to be eligible for refunds.

46 What is the situation with regard to tax exemptions? [Proposed answer: The exemption for excise goods depends on national legislation (Article 23 (5) Directive 92/12/EEC, OJ 1992 No L 76, p. 1). This legislation must lay down which documents or messages are to be used, at least for cases in which no customs document or message certifying the exit of the goods from the customs territory of the Community is available. The VAT exemption depends on whether vessels moving between Community ports can be considered as "vessels used for navigation on the high sea" (Article 148 a) Directive 2006/112/EC). The types of documents or messages to be used for such purposes where no customs document or message certifying the exit is available needs to be clarified.] 1.8. Information on the exit of goods Article 793a (1) CCIP stipulates that the customs office of exit shall supervise the physical exit of the goods from the customs territory of the Community. How should this be done and who is obliged to provide the necessary information? According to Article 14 CC any person directly or indirectly involved in external trade operations shall provide the customs authorities with the required documents and information, irrespective of medium used. Consequently, persons who are in the possession of information of the exit of goods have to provide such information to the customs authorities. Such persons may be: - port and airport operators, - persons running post or airport systems, - carriers, - temporary storage operators. In an electronic environment, automated exchange of, or access to, such information is the most efficient solution and should therefore be implemented in Members States. 1.8. Information of exit to fiscal authorities According to Article 796e (1) CCIP, upon receipt of the exit results message, the customs office of export shall certify the physical exit of the goods for the declarant, by use of the export notification message or in the form specified by that office for that purpose. Will the tax authorities accept the message IE 599 sent from the customs office of export to the declarant/exporter? The Specimen Management System (SMS) domain export will provide specimen of export notification messages with possible access to tax authorities. It is up to Member States to ensure that export notification messages are accepted by the fiscal authorities for the purposes of exemption from VAT and excise duties. This can be achieved by an electronic link between customs and VAT authorities in the Member States where the export declaration was lodged.

1.10. Single transport contract (Article 793(2) (b) CCIP) Article 793(2) (b) CCIP determines the customs office of exit in the context of a 'single transport contract for transport of goods out of the customs territory of the Community'

47 1.10. 1. Introduction Article 793(1) CCIP provides that Copy 3 of the single administrative document (or the accompanying document referred to in Article 792(2) CCIP) and the goods released for export must be presented together to customs at the customs office of exit. By virtue of Article 841 CCIP these rules apply also to re-export declarations. Article 793 (2) (b) CCIP allows railway companies, postal authorities, airlines, shipping companies to complete the above-mentioned formalities at the customs office competent for the place where these economic operators take over the goods under a single transport contract for transport out of the customs territory of the Community by rail, post, air or sea. Transport by road by these operators is permitted, as long as the goods do not leave the customs territory of the Community by road, i.e. they are carried out of this territory by rail, post, air or sea. The export/re-export declaration must comply with Article 787 (1) CCIP, i.e. be lodged using a data processing technique and contain the required data elements. When goods arrive at the customs office from where they will leave the customs territory of the Community by rail, post, air or sea, this customs office needs information that the requirements of the export procedure have already been complied with. In order to inform the customs office competent for the actual point of exit, Article 793a (6) CCIP foresees that the customs office which is deemed to be the customs office of exit under Article 793 (2) (b) CCIP endorses copy 3 of the export declaration (or the accompanying document referred to in Article 792(2) CCIP) after making the endorsement "Export" on the transport document and affixing its stamp. It makes reference to the transport document on copy 3 or the accompanying document and vice versa. This allows the customs office at the point of exit to verify that the export/re-export formalities have been fulfilled by the economic operator at the place where the goods were taken over under a single transport contract. The customs authorities may waive the endorsement "Export" and the affixing of the stamp to the transport document for regular shipping lines and direct transport or flights to destinations outside the customs territory of the Community where the operators are able to guarantee the regularity of the operations. It should be noted that these provisions have been introduced for a paper-based environment. They have been maintained beyond 30 June 2009 so that it can be decided on the basis of the experience with ECS whether this system should be used or an electronic alternative allowing the customs office at the point of exit to check that the export formalities have been fulfilled. National administrations have encountered problems concerning the interpretation of Article 793, in particular in relation to the notion of 'single transport contract for transport of goods out of the customs territory of the Community'. The principal question asked, has been whether or not a transport contract should still be considered to be a single transport contract, when the transport company combines different means of transport (hereafter referred to as 'multimodal transport'). An example of a multimodal transport is the use of 'air trucks' (trucks run by an airline) to cover part of the route for goods transported under a contract with an airline company.

1.10.2. Exports by air The principal question raised was whether or not, where goods are covered under a single transport contract for transport of the goods out of the customs territory of the

48 Community by air, airlines25 are obliged to use an aeroplane as the sole means of transport in order to benefit from the provisions of Article 793(2) (b) CCIP. Where goods are carried by an airline under the cover of a single transport contract and part of the route is made by road, the conditions laid down in Article 793(2) (b) CCIP are considered to be fulfilled provided the external border is crossed by air. However, since 26 December 2006, these rules apply only if the declarant (or his representative on his behalf)) makes a request.

1.10.3. Exports by sea By analogy with exports by air, in the case of multimodal transport covered by a single transport contract between an exporter and a shipping company, the conditions of Article 793(2) (b) CCIP are considered to be fulfilled, provided the external border of the customs territory of the Community is crossed by sea. In other terms, in this case, the decisive element for determining the office of exit for exports by sea is the way the external border is crossed: - if by sea, the office of exit is, on request, the customs office competent for the place where the goods are taken over under a single transport contract (commonly the customs office of export), according to Article 793(2)(b) CCIP; - if otherwise, the office of exit is the last office before the goods leave the customs territory of the Community, according to the first subparagraph of Article 793(2) CCIP. The principal conclusion in case of multimodal exports by sea that are not covered by a single transport contract is that, where goods are transported by sea from one Community port (e.g. Rotterdam) via another Community port (e.g. Antwerp) to a third country destination, the customs office of exit is the last customs office before the goods leave the customs territory of the Community, in this case Rotterdam when the transport to Antwerp is not carried out by a regular shipping service (application of the first subparagraph of Article 793(2) CCIP). According to Article 4 (8) CC the goods lose their Community status as soon as they are actually removed from the customs territory of the Community (except where they are carried by a regular shipping service (Article 38(5) CC and Article 313(2) (a) 2nd indent CCIP). This means that the goods arriving at the last Community port (e.g. Antwerp) have already lost their Community status. 1.10.4. Exports by rail Where goods are transported by rail, different types of consignment notes are used, depending mainly on the final destination of the goods exported and on the operation concerned: the CIM consignment note, the SMGS consignment note, the combined CIM/SMGS consignment note, the TR transfer note and consignments notes established under bilateral or multilateral arrangements (e.g. the SAT consignment note). The CIM consignment note is the documentary proof of the transport contract within the meaning of the 'International Convention concerning the Carriage of Goods by Rail (CIM) (Annex B of the new COTIF "99") used by the EU Member States and other States participating in the COTIF26 agreement. Under the new COTIF, the CIM

25 Express couriers (who have their own fleet of aircraft) have been assimilated to airlines.

26 COTIF: Convention concerning international carriage by rail – Convention relative aux Transports Internationaux Ferroviaires.

49 consignment note is to be used and has to accompany the consignment for transport on the customs territory of the Community. The SMGS27 consignment note is the transport contract used by OSZhD members (Organisation for Railways Co-operation – Members are mainly Eurasian countries). The TR transfer note is used in the framework of the simplified transit procedure for goods carried in large containers by railway companies using transport undertakings as intermediaries. The TR transfer note means the document which comprises the contract of carriage by which the transport undertaking arranges for one or more large containers to be carried from a consignor to a consignee in international transport (Article 427(3) CCIP - contract between the carrier Intercontainer/Interfrigo and its customer). The transport itself is carried out by railway companies on the basis of a CIM consignment note and, where appropriate, a SMGS consignment note. In addition, a combination of two separate consignment notes (CIM and SMGS) is also considered to be a single transport contract, provided the place of destination mentioned in the first note (CIM) from the consignor lays down the binding commitment to transport the consignment directly to a State which is a party to the SMGS Agreement and thereby terminates the transport at a destination outside the customs territory of the Community. The basis for this type of single transport contract is the RSM28. Such a combination is required for the movement of goods between an EU Member State and a third country that is an OSZhD-Member unless the railway company of the EU Member State concerned is also a party to the SMGS Agreement. For example, goods exported from Brussels via Poland to Minsk () will be covered first by a CIM (used for the transport from Brussels to Poland) and then, at the Polish eastern border crossing (Malaszewicze/Terespol), by a SMGS which replaces the CIM and is used for the rest of the journey. This combination of transport documents can nevertheless be considered as a single contract, provided it is specified in the CIM that the final destination is Minsk. The same goes for the combined CIM/SMGS consignment note. Accordingly, Brussels would be the customs office of exit in the example given. The SAT consignment note is an example of bi-or multilateral agreements on which single transport contracts could be based. The SAT consignment note is the transport contract used by , accepted by the , Slovakia, Poland and for transport to CIS countries.29 These types of transport contracts fulfil the requirements of single transport contracts for the purposes of Article 793(2) (b) CCIP. Transports covered by a TR transfer note may include the dispatch of consignments by transport undertakings using modes of transport other than rail, to the nearest suitable railway station from the point of loading and from the nearest suitable railway station to the point of unloading, and any transport by sea in the course of the movement between those two stations (Article 426 CCIP).

27 SMGS: Convention concerning international goods traffic by railway.

28 RSM: Recueil des réglementations spéciales pour le trafic international des marchandises/Compendium of special regulations for international goods traffic.

29 CIS: Commonwealth of Independent States (, Armenia, Belarus, , , , , Russia, , , and Ukraine).

50 In the case of multimodal transport, the guidelines concerning exports by air apply mutatis mutandis.

1.10.5. Export by freight forwarders acting as carriers The question has been asked whether the freight forwarders acting as carriers are also covered by Article 793(2) (b) CCIP. Pro: The spirit of this Article takes account of the existence of a single transport contract, the evidence of which is a transport document. There is however a difference between a single transport document assisted by an international convention of carriage, such as the Warsaw-Montreal Convention for air transport, Hague-Visby Convention (or Hamburg Rules) for ocean transport or CIM/COTIF for railway transport, and a document issued by a contractual carrier, which is often a proprietary document (through bills of lading, multimodal bills of lading, FIATA multimodal bill of lading, express carriers’ bills, etc). CLECAT is of the opinion that all contractual carriers should be included in the scope of the derogation. Contractual carriers issue single transport contracts for the carriage of goods, other than the ones referred to in the respective international Conventions, nonetheless they engage in a contractual obligation often more demanding than those referred in the international conventions. CLECAT sees no reason to exclude contractual carriers from the scope of the application. They see no reason either - and believe it would be unfair - to include only particular contractual carriers. Con: Article 793 (2) (b) CCIP refers to railway companies, postal authorities, airlines and shipping companies. Freight forwarders (even if they act as carriers) do not belong to the group of actors who can benefit from this facilitation. Furthermore, these rules will not maintained (at least not as such) under the modernised CC. It does not appear appropriate to extend the interpretation of the scope of this provision at this stage, in particular given the difficulties at the actual point of exit. The arguments under pro can rather be seen as a criticism of the system as such (favouring some actors and others not). These arguments should be taken into account when the new rules are drafted.

2. Place where goods are packed or loaded for export shipment (Article 161(5) CC) Article 161(5) CC lays down which customs office of export has the geographical responsibility for receiving export declarations. The export declaration must be lodged at the customs office responsible for supervising the place where the exporter is established or "where the goods are packed or loaded for export shipment". The question regarding the local responsibility of the customs office of export when "packing" or "loading" the goods for export has been posed frequently by freight forwarding companies, as they increasingly focus on matters concerning storage and transport logistics, seeking in this way to justify the local responsibility of the customs offices. The customs office responsible for the place where the goods are packed or loaded is generally the customs office in the region from where the goods are then transported abroad; i.e. the region where the exporter who takes the decision to export the goods is based.

51 "Packing goods for export" is based on the point in time at which a decision has already been taken to export the goods, so that at least the quantity, type and third country recipient of the goods are known, and concrete steps have been taken to initiate the export procedure. At this early point, the customs administration is able to carry out checks in the most efficient manner possible – also in respect of safety and security risks - without any great effort, since there are no ensuing problems with packing, delays to onward transport and costs. It is in the interests of all parties involved to enable the customs administration to carry out its checks as early as possible to keep the parties' costs as low as possible and to limit possible checks at the Community's external borders to an absolute minimum. Goods have been packed for export, for example, when – they are prepared for shipment (e.g. packed in cardboard boxes) so as to avoid damage during transport in particular, – they are completely repacked by a professional packing company or undergo final packing in boxes specially made for the consignment, or – they are packed in a storage facility, provided that they were delivered there in an unpacked state and/or the exporters in question did not yet know the exact arrangements for the export procedure (e.g. the goods recipient, the quantity of goods - but not, however, the scheduled date of the export) when the goods were delivered to the storage facility. The above comments regarding "packing" also apply for "loading", but the definition for "packing" is more specific, since all packed goods are also loaded. Thus, the only cases not covered are those where the goods are not packed. Consequently this concerns only goods generally transported across the border in an unpacked state (bulk goods, such as gravel or sand, or vehicles). Goods have been loaded for export, for example, when – they are loaded at the factory (e.g. the loading of unpacked bulk goods). There is just as little reason to assume that the goods will be loaded later by the freight forwarding company as to assume that it will become necessary to reload them once their transport is underway; – they have not yet been loaded for export, for example, when the exporter in question does not yet know the exact arrangements for the export transaction (e.g. the goods recipient, the quantity of goods - but not, however, the scheduled date of the export) at the time when the goods are delivered to the storage facility. These explanatory notes leave enough leeway within the legal framework for carrying out exports using the provisions on the local responsibility of the customs office of export to receive the export declaration, especially as Article 791 CCIP and the Administrative Arrangement thereto create even more leeway. The failure to take advantage of the good level of knowledge at the customs office of export regarding the exporter and his products - the admissibility check at "any" customs office of export would take longer and would generally not be able to guarantee that all the expertise existing at the customs office is used. The arbitrary relocation of the "placement of goods under the export procedure" to other Member States as a result of considerations concerning transport logistics, entailing the evasion of the specific prerequisites of the "single authorisation" provisions (Articles 253h – 253m CCIP), which were introduced specifically for this purpose.

52 If the export arrangements were to be arbitrarily relocated, the national export checks would not be effective, and the responsibility for efficiently implementing the Community export restrictions could no longer be fulfilled at national level.

3. Export and transit - Practical scenarios 3.1. Goods carried by road 3.1. 1 Paris-Genoa via (export and NCTS T2) An export declaration and a transit declaration (T2 NCTS) are lodged simultaneously in Paris. The T2 declaration is lodged in order to cover the transit through Swiss territory. The transit operation is realized from Paris to Genoa (exit point). At the end of this operation, it is known that goods have arrived in Genoa. However, the end of the transit operation is not sufficient to conclude that goods have left the customs territory of the Community (it is possible that, after the arrival, goods go back to the hinterland, instead of leaving the Community). In this case, sending goods to a (Community) customs office under the transit procedure is not sufficient to conclude that goods have left the Community (even if this office is located at a port or airport). The end of the transit procedure is different from the physical exit of the goods. How should physical exit be established? [Option A: The customs office in Genoa controls the physical exit of the goods, and notifies this exit in ECS. In fact, Genoa is the actual office of exit - as in the case where goods are sent from Paris to Genoa without crossing Swiss territory. Article 793b CCIP is not contrary to this solution, as it covers only paper-based export procedures. Option B: Article 792b CCIP covers also electronic export procedures with the consequence that the export procedure has already ended and that no proof of physical exit is required.]

3.1.2. Paris-Zürich (export and NCTS T2) An export declaration and a transit declaration (T2 NCTS) are lodged simultaneously in Paris. The T2 transit declaration is lodged in order to cover the part of the transport realized on the Swiss territory. The transit operation allows transporting the goods until Zürich (destination). As a consequence, the end of the transit operation means that goods have left the Community (they are in Switzerland). However, when this takes place under common transit, the goods can be re-consigned under a T2 procedure and return as Community goods into the customs territory of the Community. How should physical exit be established? [Proposed answer: The arrival of goods in a third country customs office (for example in Switzerland) under the transit procedure is sufficient to conclude that goods have left the Community. The end of the transit procedure is sufficient proof of the physical exit of the goods.} When should the exit be established? At the moment of the transit declaration (at that very moment, it is not sure that goods will really leave the customs territory), or when the transit procedure has ended? 53 [Proposed answer: the customs office of export will also play the role of customs office of exit (Paris = office of exit). However, this office will wait for the return of NCTS arrival messages (IE006 and IE018) to notify the exit in ECS. At a later stage, NCTS messages IE006 and IE018 could even be transmitted directly to ECS, in order to indicate the physical exit. In that case, manual intervention of the customs officer would not be required anymore to notify the exit. It should be noted, however, that this solution does not guarantee that the goods will not return to the Community under a T2 procedure. Should the combination of export and common transit lead to a mandatory use of the T1 procedure?]

3.1.3-Paris-Moscow (export and TIR) An export declaration and a TIR declaration are established simultaneously in Paris. The TIR procedure is used to cover the non-Community part of the transport (after the Polish border, until the office of destination in Russia). The TIR transport allows to carry goods until Moscow. As a consequence, the end of the TIR transport means that goods have left the Community (they are in Russia). The arrival of goods at a third country customs office (for example in Russia) under the TIR procedure is sufficient to conclude that goods have left the Community. The end of the TIR transport is synonymous with the physical exit of the goods. When should the exit be established? At the moment of lodging the TIR declaration (at that very moment, it is not sure that the goods will really leave the customs territory), or when the TIR operation has ended? [Option A: the customs office of export will also play the role of customs office of exit (Paris = office of exit). However, this office will wait for the return of NCTS-TIR arrival messages (IE006 and IE018) to notify the exit in ECS (this is the end of the TIR operation on the customs territory of the Community, but not the end of the TIR transport). Remark: A TIR transport consists of several TIR operations (one Contracting party = one TIR operation). So, the office of departure FR is informed when the TIR vehicle has been presented at the customs office of exit in Poland to cross the external border of the Community (end of the Community TIR operation). At that very moment, it is probable that the goods will leave the customs territory of the Community. At a later stage, NCTS messages IE006 and IE018 could even be transmitted directly to ECS, in order to indicate the physical exit. In that case, manual intervention of the customs officer would not be required anymore to notify the exit. Option B: Article 792b CCIP covers also electronic export procedures with the consequence that the export procedure has already ended in Paris and that no proof of physical exit is required.]

3.2. Goods carried by rail 3.2.1. Paris-Genoa via Switzerland by rail An export declaration and transit declaration (T2 NCTS rail) are lodged simultaneously in Paris. The T2 transit declaration is lodged to cover the transport through Swiss territory. The transit operation allows to ship goods until Genoa (exit point). 54 The end of the transit operation is not sufficient to conclude that goods have left the customs territory of the Community (it is possible that, after the arrival, goods go back to the hinterland, instead of leaving the Community). Sending goods to a (Community) customs office under the transit procedure is not sufficient to conclude that goods have left the Community (even it is this office is located at a port or airport). The end of the transit procedure is different from the physical exit of the goods. How should the physical exit be established? [Option A: The customs office in Genoa controls the physical exit of the goods, and notifies this exit in ECS. In fact, Genoa is the actual office of exit, like in the case where goods are sent from Paris to Genoa without crossing the Swiss territory. Option B: Article 792b CCIP covers also electronic export procedures with the consequence that the export procedure has already ended in Paris and that no proof of physical exit is required.]

3.2.2. Paris-Zürich by rail An export declaration and a transit declaration (T2 NCTS rail) are lodged simultaneously in Paris. The T2 transit declaration is lodged to cover the part of the transport realized on the Swiss territory. The transit operation allows to ship goods until Zürich (destination). As a consequence, the end of the transit operation means that goods have left the Community (they are in Switzerland). Sending goods to a third customs office (for example in Switzerland) under the transit procedure is sufficient to conclude that goods have left the Community. However, they may return as T2 goods. The end of the transit procedure is synonymous with the physical exit of the goods from the customs territory of the Community. When should the exit be established? At the moment of the transit declaration (at that very moment, it is not known whether the goods will really leave the customs territory), or when the transit procedure has ended? [Option A: The customs office of export will also play the role of customs office of exit (Paris = office of exit). However, this office will wait for the return of NCTS arrival messages (IE006 and IE018) to notify the exit in ECS. At a later stage, NCTS messages IE006 and IE018 could even be transmitted directly to ECS, in order to indicate the physical exit. In that case, manual intervention of the customs officer would not be required anymore to notify the exit. Remark: in this case, the operation could also be covered by the legislation concerning the single transport contract (CIM consignment note FR-CH). This contract could be used to certify that goods are sent to a third country. So, what should be used to certify the exit: NCTS messages or the single transport contract? NCTS seems a better solution, as it is much more reliable. NCTS allows a constant monitoring of the operation, from the office of departure to the office of destination (with dedicated electronic messages).

55 Option B: Article 792b CCIP covers also electronic export procedures with the consequence that the export procedure has already ended in Paris and that no proof of physical exit is required.] . 3.2.3. Paris-Berlin by road and Berlin-Moscow by rail The export declaration and the single transport contract (combined CIM-SMGS consignment note) are established simultaneously in Paris. The single transport contract allows carrying the goods to Moscow. The operation is covered by the single transport contract, which could be used to conclude that goods will leave the Community customs territory. [Proposed answer: The customs office of export will also play the role of office of exit (Berlin is customs office of exit). The export procedure has already ended in Berlin and no proof of physical exit is required.]

3.2.4. – by sea (non-regular shipping service) and Klaipeida to Russia by rail Community goods are exported from Sweden to Russia. The exportt formalities, including the lodging of the EXS data, are carried out in Sweden and the goods are transported by a vessel which is not a regular shipping service to Klaipėda (Lithuania). After temporary storage in Klaipėda, the goods are placed under external Community transit procedure to cover their movement in the Community and the transport by rail to Russia with a SMGS consignment note, which does not contain the safety and security data. An exit summary declaration must be presented in Lithuania in accordance with Article 841a CCIP.

4. Export of excise goods under duty suspension - Practical scenarios [to be completed later] 5. Derogation from exit summary declaration in case of transhipment and short term storage (Article 841a CCIP) 5.1. Introduction The Customs Code and the CCIP contain several references to the term "transhipment". In some cases, such as in Articles 78 (1) (b), 107 (1) (b) and 326 (1) (a) CCIP, the term is used literally, simply to define the act of unloading of goods from one means of transport and re-loading them to another, at the same place. In general, however, as in Articles 38 (2), 46 (1) and 176 (2) CC and a variety of places in the CCIP, the term "transhipment" relates to non-Community goods, unloaded and reloaded at the same place within the customs territory of the Community under customs supervision. This is the context of the term as it is used in Article 841a CCIP and it is to the supervision of goods in this context that these guidelines apply. The short-term storage of goods is linked with transhipment in Article 841a CCIP, which allows the standard requirements for importation/re- exportation to be simplified. 5. 2. Relevant provisions

56 Provided that an ENS for safety and security purposes is lodged at the time when goods are brought into the customs territory of the Community at the customs office of entry, an exit summary declaration shall not be required for re-exportation of non-Community goods transhipped at the place where they are unloaded from the means of transport which carried them into the customs territory of the Community. The short term storage of goods in connection with such transhipment shall be considered to be an integral part of the transhipment. The control measures shall take account of the special nature of the situation (Article 841a CCIP). Where those goods are reloaded at a port in the customs territory of the Community for discharge at another port in the customs territory of the Community and are carried on a vessel moving between those ports without calling at any port outside the customs territory of the Community, an ENS shall only be required for those goods at the Community port at which they are to be discharged without application of the time limit laid down in Article 184a (1) CCIP. 5.3. Definitions Transhipment means the operation under which non-Community goods are transferred under customs supervision from the importing means of transport to the exporting means of transport within the area of responsibility of one customs office, which is the office of both importation/entry and exportation/exit. Transhipment always implies that goods are unloaded from the importing means of transport and reloaded on the exporting means of transport either immediately or after short-term storage. The exporting means of transport is that on which the goods are to leave the customs territory of the Community. Short term storage means a prescribed period of time within which the act of transhipment must take place and during which the requirement for an exit summary declaration is waived. Principles • Non-Community goods unloaded for transhipment should not be subject to the payment of duties and taxes, provided the conditions laid down in the customs rules and by the customs authorities are complied with. • Transhipment should not be refused solely on the grounds of the country of origin of the goods, the country from which they arrived or their country of destination. • Non-Community goods unloaded at a port/airport for transhipment must be covered by an ENS and presented to customs. Transhipment cargo is, therefore, by definition, placed under temporary storage, from which it is then normally entered to a customs approved treatment or use, either re-exportation from the customs territory of the Community (this includes reloading to a non-regular shipping service) or, if proper, to Community transit (mandatory when reloaded to a regular shipping service). Where the re-loading for re-exportation takes place immediately or within a period of short term storage, and provided that there has been no change to the supply chain information (e.g. consignee, destination) declared in the ENS, this process may be simplified by waiver of the requirement for an exit summary declaration. 5.4. Declaration and removal Only one summary declaration, for safety and security purposes, is required for non- Community goods intended for transhipment. Where the goods in temporary storage were covered by an ENS and are to be transhipped for re-exportation, a request for removal of the goods from temporary storage for transhipment must be made to the customs authorities, in the form laid down by those authorities, in accordance with

57 Articles 46 and 47 CC. The data required should include a reference to the ENS, the identity of the means of transport on which the goods are to be reloaded and the intended place/country of destination/unloading. The request for removal for transhipment should be accepted after the goods intended for transhipment have been presented to customs within the period of short term storage. The customs authorities should accept as request for removal for transhipment any commercial or transport document for the consignment concerned which meets all the customs authorities requirements (this means that as of 1 July 2009 it must normally be submitted in electronic form). The customs authorities should determine the form of permission for removal of the goods (wherever possible by default), taking due account of the place in which the goods are located and of the arrangements for their supervision, such as customs access to trade inventory systems.

5.5. Examination and identification of goods When the customs authorities consider it necessary, they should take action at importation to ensure that the goods to be transhipped will be identifiable at re- exportation and that unauthorized interference will be readily detectable.

5.6. Time limits, failures Short term storage for transhipment should not exceed 14 days from the date when the goods have been presented and are therefore under temporary storage. The customs authorities may, where reasonable grounds exist, fix a shorter period of short term storage for the re-exportation of goods destined for transhipment, provided that it is sufficient for the purposes of that transhipment. The act of transhipment should take place within the period of short term storage. Where the prescribed time limit for short term storage is exceeded, the normal rules for the assignment of the goods in temporary storage to a customs-approved treatment or use, including re-exportation, should apply. Where no customs declaration is required in accordance with Article 841 CCIP, an exit summary declaration must be lodged for re- exportation of non-Community goods destined for transhipment.

5.7. Authorized operations At the request of the person concerned, and subject to the rules applicable for goods in temporary storage and to the conditions specified by the customs authorities, the customs authorities should as far as possible allow goods in transhipment to undergo operations likely to facilitate their re-exportation.

6. Export Control System (ECS) The ECS is systems architecture developed by the Community for the exchange of messages and data relating to the export procedure between national Customs administrations and between them and economic operators and with the European Commission. It provides, in effect, for an electronic ‘Copy 3’, replacing the use of that Copy of the SAD as the control document for the export procedure, notably where more 58 than one Member State is involved in the process, and as the primary means for certification of export from the Community, for VAT and other tax purposes. ECS is made up of three “domains”: (a) The “common domain” for exchanges between the EU Member States and the European Commission; (b) The “national domain” made up of the national customs computer systems and the associated risk management processes; and (c) The “external domain” being the interface between economic operators and the national Customs administrations for the lodging of export Customs declarations, issuance of Movement Reference Numbers (MRNs) as registration of the export declaration filing, and for subsequent confirmation to the economic operator of the actual exit of the goods from the Community. It is through this latter “domain” that the export/re-export declaration must be filed according to nationally determined technical specifications, message formats and structures etc. Though the ECS concerns mostly the exporter or his representative, there are roles within the ECS process that may affect the carrier, most notably the identity of the so called ‘Trader at Exit’. The ‘Trader at Exit’ is the person responsible for informing the customs office of exit that the goods have arrived there, in accordance with Articles 793(1) and 796c CCIP. The obligation to do this, or to ensure that this is done, clearly lies with the holder of the procedure, i.e. the person who lodges the export or re-export declaration. Usually, however, the exporter will delegate this responsibility to the person he contracts to carry the goods. This may be the carrier, but, in the case of loading for onward transport, may more usually be the person who brings the goods to the port, airport etc., e.g. the haulier, river carrier, or a forwarder. The ‘Arrival Notification’ may also be sent to customs by the operator of the storage/loading facility, i.e. the terminal operator or stevedoring company, particularly where port/airport systems are used for export manifesting and control. The Community legislation, however, places no responsibility on the carrier in this matter. The same applies to ‘Exit Notification’ message required for ECS. There is no responsibility under Community legislation for the carrier to confirm that the goods have actually been loaded and have left the Community; in fact, proof of exit, where required, is legally also a matter for the exporter or declarant (Article 792b CCIP). However, national Customs legislation covering export loading is likely to be used to apportion the various responsibilities regarding ‘Arrival Notification’ and ‘Exit notification’, which may involve the carrier.

59

Annex I

[To be updated in the light of a paperless environment]

Means of transport Route Office of exit Document used 1. By air 1.1. Air only Brussels-Berlin- Brussels if single Copy 3 of the export Moscow transport contract declaration

rule requested endorsed in Brussels (with or without (AWB consignment – Endorsement transhipment in note: Brussels – 'Export' and affixing Berlin) Moscow) stamp on transport

30 The endorsement 'Export' and the affixing stamp to the transport document shall not be required where, in the case of regular shipping lines or direct transport or flights to destinations outside the 60 document30

1.2 Multimodal Brussels-Berlin- Copy 3 of the export 1.2.1. Lorry/Air Moscow declaration endorsed in Brussels 1.2.2. Air/Lorry – Endorsement - Brussels if single 'Export' and affixing stamp on transport Brussels-Berlin: transport contract 8 lorry rule requested document - Berlin, if Export declaration otherwise lodged in Brussels - Berlin-Moscow: air Copy 3 endorsed in

Brussels-Berlin: air Terespol Terespol 31

Berlin-Moscow: lorry

customs territory of the Community, the operators are able to guarantee the regularity of operations (CCIP, Art. 793a(6), 2nd subparagraph). 31 Polish customs office at the PL/Belarus border 61

Means of Route Office of Document Comments transport exit used 2. By sea 2.1. Sea only Gdansk (PL)- - Gdansk if Copy 3 of the Hamburg-New single export York (with or transport declaration without contract rule endorsed in transhipment requested Gdansk - in Hamburg) (bill of Endorsement lading: 'Export' and Gdansk – affixing stamp New York) on the transport or when the document8 transport to (ship's Hamburg is manifest) not carried out by a regular shipping service

- Hamburg, if otherwise 2.2.Multimodal 2.2.1. Hamburg- Applicable Lorry/sea Antwerp-New Article: York

- If single Copy 3 Hamburg- transport endorsed in - Art. 793(2)(b) Antwerp: lorry contract rule Hamburg –

Antwerp-NY: requested: Endorsement ship Hamburg 'Export' and affixing stamp on manifest8 - if not : - first Antwerp subparagraph of Art. 793(2) Export declaration lodged in Hamburg – Copy 3 endorsed in Antwerp

62

Means of Route Office of exit Document used Comments transport 2.2.2. Antwerp – Single transport contract rule not Sea/lorry Gdansk – applicable when Minsk (Belarus) goods are brought out of the customs

territory of the Community by road. - Terespol – when the -Antwerp- First subparagraph transport to of Article 793(2) Gdansk: Gdansk is ship carried out by - Gdansk- a regular Minsk: lorry shipping

service – Copy 3 Customs office of endorsed in Antwerp – exit is Antwerp - Antwerp – Endorsement which is when the 'Export' and considered to be transport to affixing stamp the last customs Gdansk is not on manifest8 office before the carried out by goods leave the a regular customs territory shipping - Transport in of the Community service Poland- covered by T1 procedure32 (Gdansk is office of departure; Terespol is office of destination)

32 The T1 procedure is requested only where the goods have lost their Community status. 63

Means of Route Office of exit Document Comments transport used 3. By rail 3.1. Rail only Antwerp- - Antwerp if Copy 3 of CIM 3.1.1. CIM Zürich(CH) single transport export consignment note is contract rule declaration requested endorsed in considered to be a single -If not: the last Antwerp – transport customs office Endorsement contract before the 'Export' and goods leave the affixing stamp 8 customs on CIM territory of the Community

3.1.2 SMGS Warsaw-Minsk - Warsaw if Copy 3 of SMGS single transport export consignment contract rule declaration note is requested endorsed in considered to be -If not: the last Warsaw – a single customs office Endorsement transport before the 'Export' and contract affixing stamp goods leave the 8 customs on SMGS territory of the Community 3.1.3. Brussels- CIM/SMGS Malaszewicze-

Minsk

- Brussels, if Copy 3 of The Brussels- - CIM single transport export combination Malaszewicze contract rule declaration CIM/SMGS is requested and endorsed in considered to be - SMGS Malaszewicze- Minsk Brussels - a single Minsk mentioned as Endorsement transport final destination 'Export' and contract. The on CIM affixing stamp same goes for 8 consignment on CIM the combined note CIM/SMGS – Malaszewicze consignment (PL/Belarus note. frontier), if otherwise

64

Means of Route Office of exit Document used Comments transport 3.1.4. TR Antwerp- - Antwerp if Copy 3 of The TR transfer transfer note Minsk single transport export note is considered contract rule declaration to be a single requested endorsed in transport contract Antwerp – -If not: the last customs office Endorsement before the 'Export' and goods leave the affixing stamp on TR transfer customs 8 territory of the note Community 3.1.5. SAT Wien-Minsk - Wien if single Copy 3 of The SAT transport export consignment note contract rule declaration is considered to requested endorsed in be a single -If not: the last Wien – transport contract Endorsement customs office before the 'Export' and affixing stamp goods leave the 8 customs on SAT territory of the Community

Means of Route Office of exit Document Comments transport used 3.2.Multimodal - Le Havre, if Copy 3 of As in point 1.2, single transport export the decisive contract rule declaration element is the 3.2.1 lorry or Le Havre - requested and endorsed in Le way the external ship/rail Antwerp- when transport Havre – border of the EU Minsk to Antwerp is Endorsement is crossed : not carried out 'Export' and - Le Havre- Antwerp: by a regular affixing stamp shipping on TR transfer - by rail: customs lorry or 8 ship service note ) office of exit = commonly - Antwerp, if - Antwerp- customs office of single transport Minsk: export rail contract rule requested and - otherwise = Minsk = final customs office of destination exit = last mentioned on customs office 65 CIM before the goods consignment leave the note customs territory - If otherwise, of the the last Community= customs office customs office at before the external border goods leave the customs territory of the Community 3.2.2 rail/ship or Antwerp- lorry Gdansk- Minsk - Terespol Export declaration

1. Antwerp- lodged in Gdansk: Antwerp - rail - Copy 3 Gdansk- endorsed in Minsk - Antwerp, if Terespol lorry transport to Gdansk is carried out by a non regular shipping 2. Antwerp- service Gdansk: ship – Gdansk- - Terespol, if Minsk: lorry otherwise

Annex II 66

FREQUENTLY ASKED QUESTIONS

Lodgement of Entry Summary Declaration (ENS): 1. Basic principles 2. Different scenarios rd 3. Alternative 3 party ENS filing 4. Diversion 5. Amendments to ENS 6. Do not load (DNL) messages 7. Import Control System 8. Economic Operator Registration & Information (EORI) 9. Miscellaneous ENS matters

67

1. BASIC PRINCIPLES Q1.1 - When is an ENS required? The Community legislation requires, as a general principle, that all goods brought into the customs territory of the Community, regardless of their final destination, shall be covered by an ENS (ENS), which must be lodged at the customs office of first entry, i.e. the first intended port of call within the customs territory of the Community. This means that all cargo, whether or not consigned to the EU, must be declared, including freight remaining on board (FROB). Q1.2 - Who must lodge the ENS? The Community 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’. This means the operator of the active means of transport on or in which the goods are brought into the customs territory of the Community is responsible for the filing of an ENS. In the deep sea container context, this is held to be the ocean carrier that issues bill of lading for the carriage of the goods into the Community However, in the case of vessel sharing arrangements (VSA), the obligation to file an ENS lies with that carrier who has contracted, and issued a bill of lading or an air waybill, for the carriage of the goods into the Community on the vessel or aircraft subject to the arrangement. So, each party which issues bill of lading for carriage of goods on the vessel is deemed to be the ocean carrier and must file the ENS for the containers it is having carried on the vessel. [For short sea shipping, the same rules normally apply, but in the case of “combined transport” (e.g. a truck carried on a ferry) where the means of transport entering the customs territory of the Community (the ferry) is only transporting another means of transport which, after entry into the customs territory of the Community, will move by itself as an active means of transport (the truck), the obligation to file an ENS lies with the operator of that other active means of transport (the trucking company). The vessel operator must always, however, provide the Arrival Notification (see Q 1.13 below)] Q1.3 - Can other persons lodge the ENSs instead of the carrier? Yes, but this 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 rd consent. [See Section 3 - Alternative 3 party ENS filings- below] Q1.4 - Must the person lodging the ENS have status as an Authorized Economic Operator (AEO)? There is absolutely no requirement that an ENS declarant must be an AEO. However, the person lodging the ENS (“the declarant”) must have an Economic Operator Registration and Identification (EORI) number (See Section 8 below) that must be included in the ENS. If the EORI number is not included, then the ENS is not complete rd and it will be rejected. Similarly, if a 3 party – with its knowledge and consent – files an rd ENS instead of the ocean carrier, the 3 party must in its ENS include both its own EORI number and that of the ocean carrier. If either or both EORI numbers are missing from rd the 3 party ENS, it will be rejected. 68 Q1.5 - When must the ENS be lodged? The legislation requires that the ENS for deep-sea containerized shipments, i.e, for voyages to the EU whose duration is over 24 hours, must be lodged at least 24 hours before 3 commencement of loading in the foreign load port. Other deadlines apply for other shipping services and other modes of transport. Q1.6 - Why must ENS be lodged at the first port of entry 24 before loading? The Community legislation applies the principle that the customs office of first entry shall undertake the cargo risk assessment for all shipments, including FROB, carried on a conveyance due to arrive in the Community and initiate any preventive action against identified risk. Action will based upon three separate categories of risk: Risk Type A: Where a very serious threat to security and safety is identified, a DO NOT LOAD message will be issued to the declarant and, if different, the carrier: Risk Type B: Where a serious risk is identified but action under A is not possible, the Customs office of first entry will take action against the goods upon arrival at the first port of entry and also inform the customs offices in subsequent ports of the risks identified; Risk Type C: the customs office of first entry will inform the Customs offices in subsequent ports of the risks identified so that action may be taken at the port of unloading. Comment: For deep sea containerized shipments that is the only mode with a pre- loading ENS filing requirement, Risk Type B situations should normally not occur as they instead should have been subject to Do Not Load messages (Risk Type A). Q1.7 - Can ENSs be lodged at a customs office different from the first port of entry? Yes, provided that that the customs authorities at that office, the office of lodgement, and the customs authorities of the office of first entry permit this. The office of lodgement must immediately forward the data to the office of first entry. However, this may not be an attractive proposition for ocean carriers for the following reasons: First, not all Member States have bilaterally agreed to allow the office of lodgement filing capability. Second, the customs office of first entry would still be responsible for the risk assessment, including the issuance of any Do Not Load messages, so an ocean carrier would want to be connected to that office in any case. Third, the ocean carrier will for other reasons already have a close relationship with Customs office of first entry (manifest filing etc.), so establishing a connection to an office of lodgement (perhaps in an landlocked country in the EU) solely for the purpose of filing an ENS may not be a resource effective decision. Q1.8 - Which is the foreign load port when goods are transhipped before loading? The ENS filing requirements apply to the main haul vessel, i.e. the vessel that on its itinerary has ports of call in the EU and thus brings goods into the Community. Goods feedered between, for example, a port in Indonesia to Hong Kong to be loaded on to the main haul vessel destined for the EU would not need to be declared to EU customs by the feeder company before loading at the Indonesian port – the reporting requirement applies when the goods are to be loaded on to the main haul vessel. The obligation to file the ENS lies with the ocean carrier issuing B/Ls for goods to be loaded on to the main haul vessel. Q1.9 - Must an ENS be lodged for each port of loading?

69 Yes. The reporting requirements apply to each foreign load port, not just the last foreign port of call before entering the Community. So, in the example above, if the main haul vessel is also to load cargo in e.g. Singapore, then an ENS must be lodged to Customs in the intended first port of entry in the EU no later than 24 hours before commencement of loading in Singapore for the containerized shipments that will be brought in to the Community on the main haul vessel. Q1.10 - What is the definition of first port of entry and subsequent port for entry? The first port of entry is the first port in the Community at which the vessel is scheduled to call when coming from a port outside the Community. Subsequent port (s) mean any port in the Community on the vessel’s itinerary that the vessel will call at after its call at the first port in the Community without an intervening call at any port outside the Community. If the vessel calls at any port outside the Community in between Community ports then the vessel has left the Community and a subsequent arrival at a Community port makes that port the first port of entry, not a subsequent port; a new ENS must be lodged prior to arrival, within the prescribed time limits, for all of the cargo carried. Q1.11 - What happens if the vessel calls at a different Community port first? The ENS must always be lodged at the intended first port of call in the Community within the prescribed deadline. Provided that has been done, the vessel may be diverted to a different first port of call. The automatic passing on of risk information ( See Q1.6 above) to all declared subsequent ports of call within the Community allows that a vessel may divert to any other declared subsequent port of call ( or a non declared port of call in the same Member state as a declared subsequent port of call) without advice to customs. However, if the actual first port of entry is in a Member State that was not included among the declared ports of call in the Community, the vessel operator must advise the intended first port of call of the diversion as soon as diversion is planned, by use of a ‘diversion request’ message. The intended port of first entry will advise the actual port of first entry of any risk information. (See also Section 4 on Diversion below) Q1.12 - Is a first Community port of call the first port of entry even if no containers will be discharged there, e.g. a vessel calls only to load containers, or is the first port of entry the first Community port at which containers are to be unloaded? Even though it would seem highly unlikely, the ENS must be sent to the Customs office of first port of entry whether or not containers are to be discharged in that port, All containers to be loaded on board the vessel for carriage to the Community must be included in the ENS that must be submitted to the Customs office in the first port of entry in the Community no later than 24 hours before commencement of loading at each load port, regardless of to where they are consigned. Q1.13 - What happens when the vessel arrives at the first port of entry? Prior to or upon arrival in the first port of entry, the vessel operator must submit, for all shipments carried on the arriving vessel, a so-called Arrival Notification, allowing Customs to identify all the ENS that were previously lodged for the shipments. For the containers to be discharged in the first port you must – as hitherto – submit a manifest and, if you are the party presenting the goods for temporary storage, also a summary declaration for temporary storage. (This summary declaration can be merged with the manifest and also the Arrival Notification if national Customs legislation in the individual EU Member States allows for this). Q1.14 - Must ENSs be lodged at subsequent ports?

70 No. An ENS, for all of the cargo carried, only needs to be lodged with the Customs office of the first port of entry. However, prior to or upon arrival at each Community port in turn, a manifest – as has always been the case – must be lodged for all of the containers to be unloaded at that port and, if the ocean carrier is the party presenting the goods to for temporary storage, also the summary declaration for temporary storage for those containers. Q1.15 - Will ENS replace the manifest filing? If not, what about the relationship between ENS and manifest? The ENS will not replace the traditional manifest filing in each discharge port. The ENS is for cargo risk assessment purposes, and even though the manifest may include the same information as the ENS, manifests must in addition include data elements prescribed by national legislation in each EU Member State that the vessel is calling at. A national Customs administration may require that the manifest includes a reference to an ENS, where applicable, in order to establish the relationship between the manifest and the ENS. Also, according to Community legislation, the summary declaration for temporary storage must include a reference to the ENS; a summary declaration for temporary storage may take the form of the manifest provided that it contains the particulars of a summary declaration including a reference to any ENS for the goods concerned. Q1.16 - Must CARGO REMAINING ON BOARD for carriage to other ports (FROB) be included in the ENS, in the Arrival Notification and in the manifest? FROB must be included in the ENS and the Arrival Notification to the Customs office of first entry. Whether FROB must also be included in the manifest is up to the national legislation of the individual EU Member States. (At least some Member States require at least some information for FROB to be provided in the manifest). Q1.17 - Do EMPTY CONTAINERS have to be declared in the ENS and the arrival notification? Shipper-owned empties that are being transported pursuant to a contract of carriage shall be treated in the same way as other cargo and thus be included in the ENS and the Arrival Notification. Carrier reposition empties may continue to be reported to Customs as is done today at arrival and are not to be included in the ENS. Q1.18 - Will shipment of EMPTY ROLL TRAILERS be considered the same as empty containers, i.e. only to be included in the ENS if transported under a contract of carriage? Yes. Roll trailers would fall under the category “means of road, rail, air, sea and inland waterway transport”; such means of transport will need to be included in the ENS if they are carried under a transport contract. Q1.19 - How is TRANSHIPMENT CARGO to be handled? Containers to be transhipped in a port in the EU must be included in the ENS to the Customs office of first entry even if the containers are to be transshipped in another (subsequent port). At the actual transshipment port, the existing procedures will continue as hitherto, i.e. lodgement of manifest and presentation to the local Customs office for temporary storage. If the transshipped containers “sit” for more than 14 days in the transshipment port and they are destined for a location outside the EU, an exit summary declaration (EXS) must be lodged for those containers prior to loading in the transhipment port.

71 Q1.20 - Is it possible to describe all of the documents to be submitted by the ocean carrier from the time of 24 hour before commencement of loading to cargo release at destination? First, the bill of lading issuing ocean carrier must in each foreign load port, and no later than 24 hours before commencement of loading to the main haul vessel bound for an EU port, submit an ENS for all shipments to be loaded onboard that vessel even if the shipments are to be discharged in a port outside the EU (= FROB). Next, before arrival at the Customs office of first entry (= the first port of call in the EU), the vessel operator must submit an Arrival Notification (AN) covering all shipments on board the arriving vessel regardless of whether the shipments are to be discharged at the first port, at subsequent EU ports on the vessel’s itinerary or at a port outside the EU (FROB). The AN must either include the MRNs for all the shipments carried on the vessel or include the so-called “Entry Key” data elements (i.e. mode of transport at the border, IMO vessel number, and date of expected arrival at the expected Customs office of first entry). The vessel operator will have discretion in choosing between inclusion of the MRNs or of the “Entry Key”; the latter will likely be the prevalent method in the liner shipping industry as the vessel operator would not necessarily have all the MRNs for all the shipments carried on its vessel. Finally, the bill of lading issuing carrier must - in each EU port where it discharges shipments – submit a manifest according to nationally prescribed rules for the shipments discharged in that particular port. Individual EU Member States may require that the manifest includes the MRNs, where available, for the shipments discharged in the individual ports. The manifest can take the form of the summary declaration for temporary storage if the ocean carrier is the party presenting the goods to Customs. The summary declaration for temporary storage must include the “particulars” necessary to identify the relevant ENS; this could either be the MRNs or the “Entry Key”, but here the party presenting the goods would not necessarily have discretion to choose between the two options as each Member State may prescribe which of the two options (or both) must be used in the summary declaration for temporary storage. The documentation for Customs clearance of import cargo is the responsibility of the importer or its agent, not the ocean carrier. Q1.21 - Are all of these documents to be loaded electronically? ENS must be submitted electronically. So must the Arrival Notification to the Customs office of first entry. Manifests and summary declarations for temporary storage are outside the Community legislation and are instead regulated by national legislation. Today, manifests are filed in paper in the following Member States: Finland, France, , , Lithuania, Poland, Portugal and , and maybe more Member States. These Member States may at some point introduce legislation requiring the submission of manifests electronically. Q1.22 - If the ocean carrier – for whatever reason - failed to lodge an ENS in time, what will the consequences be? Article 184c paragraph 2 of Commission Regulation 1875/2006 provides that: “If an economic operator lodges the [ENS] after the deadlines provided for in Article 184a, this shall not preclude the application of the penalties laid down in the national legislation”. Any such penalties would be imposed according to the national Customs legislation of the Member State acting as the Customs office of first entry.

72 2 - LODGING OF ENS: DIFFERENT SCENARIOS Q2.1 - The Community legislation requires that the ESN should be submitted at the first port of entry in EU. What if a vessel calls an EU port, then a non-EU port (e.g. Izmir, ) and then again an EU port? Do we need to submit an ENS twice, to the first EU port before Turkey and then a second time to the first EU port after Turkey? Yes. The vessel has left the Community and a subsequent arrival at a Community port makes that port the first port of entry, not a subsequent port; an ENS must be lodged prior to arrival, within the prescribed time limits, for all of the cargo carried. Because in the example the vessel is engaged in short sea shipping, the ENS must be filed at least 2 hours before arrival in the (second) EU port after the port of call in Izmir. What would be the difference between the two ENSs? The latter ENS must include cargo that has been loaded on board the vessel in Turkey, and at the previous Community port, but would not include cargo that was discharged in Turkey or at the previous Community port. Q2.2 - Assume the following port rotation: Felixstowe – Le Havre – Port Said – Constanza – Limassol – Piraeus. Is it correct that the only ENS that needs to be lodged is with the Customs office in Constanza? Yes. No ENS is required for goods being transported by vessels sailing between EU ports. However, if a vessel makes an intervening call at one or more non-EU ports (Port Said) an ENS must be lodged at the Customs office of first entry, in this case Constanza, when the vessel returns to the Community. All cargo carried from Port Said to Constanza must be declared, no matter where it was loaded (i.e.including that loaded at previous EU ports) or where it is to be unloaded. Because in the example the vessel is engaged in short sea ship ping, the ENS must be filed at least 2 hours before arrival in Constanza. Q2.3 - Which countries do we need to send the ENS data to in case there are multiple European countries involved? (Example: For vessel port calls New York > Felixstowe (UK) > Rotterdam (NL)) Do we need to send ENS data to both UK and NL? No. The ENS must be sent to the Customs office in the first port of entry, so if Felixstowe is the first port of entry/call then ENS covering all shipments on the vessel, including all cargo intended for Rotterdam (FROB), must be sent to UK Customs, 24 hours before loading in New York. There is no requirement also to send an ENS to Dutch Customs. If final discharge port is NL and Place of Delivery is DE then do we need to send ENS data to DE as well? No. The ENS is only required to be lodged with the Customs office of first entry. The existing Customs procedures for presentation and clearance will continue as hitherto. Q2.4 - For containerized shipments that first are transported by feeder to a foreign hub load port (e.g. Jakarta to Singapore), where the containers then are to be loaded on to the main haul vessel that is to arrive in one or more EU ports, when must the ENS be lodged – no later than 24 hours before commencement of loading on to the feeder vessel in Jakarta or no later than 24 hours before commencement of loading on to the main haul vessel in Singapore?

73 The ENS must be filed no later than 24 hours before commencement of loading on to the main haul vessel in Singapore – see Q1.8 above Q2.5 - Intended vessel schedule: Shanghai - Singapore - Agadir (Morocco) - Fos – Genoa. However, en route the vessel schedule changes to: Shanghai - Singapore - Genoa - Agadir - Fos. Does this mean that there will be two Customs offices of first entry in the Community? Yes. There are now two voyages into the Community – Shanghai/Singapore to Genoa and Agadir to Fos. The first voyage is covered by the 24 hour before loading rule but the second, “short sea”, is not, i.e, ESNs are lodged prior to arrival, not prior to loading The vessel is already en route so the ENS to Genoa cannot be filed within the 24 hour time line to Genoa? The ocean carrier will already have submitted an ENS to Fos, within the deadline (except for the Agadir bound cargo which did not need to be included as the vessel was to call at Agadir before entering the Community – see iii below)). No ENS was required to be lodged in Genoa as it was not the (scheduled) first port of arrival in the Community. Customs in Fos will have done the risk assessment for all the cargo carried (except the Agadir cargo – see below) and, as Genoa was declared as a subsequent port, will already have informed Genoa of any risk identified. No further ENS is required. For the same reason, i.e. as Genoa is a declared subsequent port, there is no need to lodge a Diversion Request (see Q1.11 above). The vessel operator must, however, prior to or upon arrival in Genoa, submit an Arrival Notification for all the cargo carried, which will allow Customs in Genoa to identify all the ENS that were previously lodged in Fos. What about the goods that originally were scheduled to have been discharged in Agadir before arrival in the Community, but which now will be on board the vessel when it arrives in Genoa? As a result of the vessel’s change of itinerary, the Agadir-bound cargo will now be brought in to the Community by the main haul vessel and will need to covered by an ENS and risk assessed. This cargo must be declared in the form of an amendment to the original ENS previously lodged for each port of loading. The amendment, which should also include the changed itinerary identifying Genoa as the actual first port of arrival in the Community, must still be lodged with Fos. Customs in Fos will inform Customs in Genoa of any risks identified for the additional Agadir bound cargo. Because the amendment with the Agadir bound cargo was lodged after vessel departure, no Do Not Load messages can be issued. Instead, Customs in Fos may designate any high risk cargoes to be discharged in Agadir as so-called Risk Type B cargo that will need to be inspected at the actual first port of arrival in the Community, i.e. Genoa. Due to the changed vessel schedule, the Agadir bound cargo was not, and was not required to be, reported in an ENS lodged before commencement of vessel loading. It will be up to Customs in Genoa to decide, pursuant to Italian Customs legislation, whether this may be deemed to constitute non-compliance with the requirement that deep-sea containerized shipments normally must be reported in a pre-vessel loading ENS, taking in to account the circumstances of the changed vessel schedule.

What about the cargo arriving in Fos from Agadir?

74 This is now, for security and safety purposes, a separate voyage into the Community, albeit now covered by ‘short sea’ rules. 2 hours before arrival in Fos, the ocean carrier must submit an entirely new ENS to Customs in Fos for all of the cargo carried, no matter where it was loaded (i.e.including that loaded at previous ports, including Community ports) or where it is to be unloaded, including any cargo loaded in Agadir. [Where goods already covered by previous ESN have remained on board in Agadir, reference to the previous MRN may be included]. Q2.6 - Intended Vessel schedule: Shanghai - Singapore - Genoa - Fos - Agadir (Morocco) - Barcelona- Le Havre. Must we send both ENS from Shanghai to Genoa for all cargo, and ENS to Barcelona for cargo to be discharged there and in Le Havre as we have two first ports of entry in the Community? The answer to the previous question applies. All of the cargo carried on a vessel when it first enters the Community must be covered by ENS, whatever its destination or port of actual unloading. All cargo loaded in Shanghai and Singapore must be declared to Genoa 24 hours before loading in each of those ports, including the cargo to be discharged in Fos, Agadir, Barcelona and Le Havre. Once the vessel has left the Community to call at Agadir, a new voyage into the Community has begun and all cargo, not just that to be unloaded in Barcelona and Le Havre, carried from Agadir to Barcelona must be declared to Barcelona 2 hours before arrival, no matter where it was loaded or where it is to be unloaded. En route, the vessel schedule change as follows: Shanghai - Singapore - Genoa - Fos - Barcelona - Agadir (Morocco) - Le Havre. Will we have to continue sending the ENS's as per original sending (Genoa for all cargo and to Barcelona for Barcelona and Le Havre cargo? The fact that in the changed vessel schedule scenario Barcelona now comes before Agadir must be reported in an amendment to the originally filed ENS with Customs in Genoa. No new ENS would be required. Customs in Barcelona would already have received any positive risk results from Customs in Genoa. Further, this would not constitute a so-called “international diversion” so no diversion Request would be required. After the call in Agadir, a new ENS must be lodged with Customs in Le Havre no later than 2 hours before arrival covering all cargo on the vessel, including any cargo loaded in Agadir. Q2.7 - Must cargo e.g. from Russia to be transhipped in Hamburg destined for Singapore and being transported on a feeder vessel with first port of entry in Sweden be covered by an ENS lodged with Swedish Customs? Yes. All cargo - when it first arrives in the EU - must be risk assessed, so an ENS covering the goods to be transhipped in Hamburg must be lodged with Swedish Customs no later than 2 hours before arrival at the Swedish port by the operator of the feeder vessel. The feeder vessel operator may, however, agree that another party files the ENS instead of it. Q2.8 - Further to the example above, if an ocean carrier – not the operator of the feeder vessel bringing the goods into Sweden - has issued the bill of lading for the cargo to be transshipped in Hamburg, who is responsible for the ENS filing? The ocean carrier or the feeder operator?

75 The Community legislation establishes that the operator of the active means of transport on or in which the goods are brought into the customs territory of the Community is responsible for the filing of an ENS. The operator (or “the carrier”) is the person who brings, or who assumes responsibility for, the carriage of the goods into the customs territory of the Community. There are some types of transport arrangements where the ENS filing obligation lies with another person than the operator of the active means of transport. One of these types is VSAs, where the obligation to file an ENS lies with that carrier who has contracted, and issued a bill of lading , for the carriage of the goods into the Community on the vessel or aircraft subject to the arrangement. Applying these provisions to the example provided, the feeder arrangement is arguably similar to a VSA arrangement, and the ocean carrier is therefore responsible for filing an ENS for those shipments it is having carried on the feeder vessel. Q2.9 - A shipping company may arrange pre- and on-carriages (“carrier haulage”). Please explain who would be responsible for filing the ENS in the following two examples – is it the carrier issuing the transport documents or the party who actually brings the goods in to the Customs territory of the Community?: Place of receipt is in Switzerland, the full container is moved by truck to a rail station in Switzerland from there the container is moved by rail to a loading port in the European Union, all in “carrier haulage”. Carrier haulage situations are not specifically addressed in the Community legislation so the general principles set out in that legislation would apply, i.e. that the operator of the active means of transport on or in which the goods are brought into the customs territory of the Community is responsible for the filing of an ENS. The rail operator is therefore responsible for lodging an ENS at the Swiss/EU border, within the time deadline. The rail operator may, however, consent to another party filing the ENS instead of it (that other party could be the ocean carrier). Place of receipt is in Russia and the laden container is moved to a loading port in the European Union by all truck, again in “carrier haulage”. Similarly, the trucking company is responsible for lodging an ENS at the Russo/EU border, but may consent to another party, e.g. the ocean carrier, filing the ENS instead of it. 3. Alternative 3rd party ENS filing Q3.1 – Can parties other than a freight forwarder that issues its own (house) bills of lading (what in the international liner shipping industry is referred to as NVOCC) file an ENS instead of the ocean carrier? Yes, provided that it is with the knowledge and consent of the ocean carrier. Firstly, European law does not distinguish between “NVOCCs” and forwarders that merely act rd as agents. Second, the European security legislation explicitly allows any 3 party to file – with its knowledge and consent – the ENS instead of the carrier. This follows from Regulation (EC) 648/2005 Article 36b (3) and (4). Para (3) makes the party that brings the goods in to the Community (i.e. the carrier) ultimately responsible that an ENS is filed. Para (4), however, states that “Notwithstanding the obligation [in para 3], the [ENS] may be lodged instead by: (a) the person in whose name the person referred to in paragraph 3 acts; or (b) any person who is able to present the goods in question or to have them presented to the competent customs authority; or (c) a representative of one of the persons referred to in paragraph 3 or points (a) or (b)”. However, as noted, the filing of an ENS by any other party than the ocean carrier always requires the ocean carrier’s knowledge and consent. How the ocean carrier’s consent to a

76 rd 3 party ENS filing is to be evidenced and under which conditions and terms, e.g. time for submission of the ENS, the shipments involved, and the duration of the filing arrangement, are subject to contractual agreement between the commercial parties. Q3.2 - If Carrier A contractually agrees with NVOCC B that B is to lodge the ENS for the shipments B controls, does that mean that then B must always file ENS for all shipments B controls instead of Carrier A? Or is B free to file only ENS for certain shipments B controls? Or should this be part of the contractual arrangement between A and B where it is specified when B can or must file. Issues such as the time of the alternative ENS filing, which shipments to be covered by the alternative filing etc. are to be contractually agreed between the ocean carrier and the rd 3 party. Q3.3 - Are freight forwarders obligated to file ENS for those shipments for which they have issued (house) bills of lading? The EU cargo security legislation is based on the premise that only one ENS may be lodged for each shipment. The ocean carrier is responsible that an ENS filing is made, rd but may give its consent that a 3 party, e.g. a freight forwarder, files instead. In that rd case, the ocean carrier may not make an ENS for the shipment covered by the 3 party’s alternative ENS filing. This may mean that the customs office of first entry will get advance cargo security information for a particular shipment either at the “master” B/L level (ocean carrier) or at the “house” B/L level (freight forwarder), not both. Q3.4 - Please confirm that the ocean carrier in case of a freight forwarder ENS filing is not responsible for the content or correctness of what is filed by the forwarder? In such cases, the ocean carrier’s responsibility is to ensure that it from the competent Customs authority gets the MRN associated with the freight forwarder’s ENS filing. Correct. Whoever lodges the ENS, this person (“the declarant”) is responsible for its content, accuracy and completeness. Therefore, once a 3rd party, e.g. a freight forwarder, with the carrier’s knowledge and consent, undertakes the responsibility of making the ENS filing and thus becomes the declarant, the content, accuracy and completeness of the ENS filing is the third party’s responsibility. Notification to the ocean carrier of the MRN for the freight forwarder filing will provide evidence for the carrier that an ENS has been lodged and that the carrier’s obligation that an ENS filing is made has been met. Q3.5 - What will happen if both the ocean carrier and a freight forwarder file ENS for the same shipment? In cases where dual filings for the same shipment nonetheless occur, i.e. the carrier and a rd 3 party both file an ENS for the same shipment, Customs authorities may decide to use both filings for their safety and security risk analysis. Dual filings would in any case not affect compliance with the legal requirement that an ENS is made, and within the specified time limits, but should, nevertheless, be avoided. Q3.6 - Can the ocean carrier rely on the information in the master B/L to populate the data fields in the ENS? What if a freight forwarder is identified both as the shipper and the consignee in the master B/L? Whoever lodges the ENS, this person (“the declarant”) is responsible for its content, accuracy and completeness. However, the declarant is only obliged to provide the 77 information known to it at the time of lodgment of the ENS. Thus, the declarant is entitled to base its ENS filing on data provided by its trading or contracting parties, and the declarant would not have to investigate the accuracy of the data provided to it. Consequently, an ocean carrier would be able to rely on the information in its master B/L to populate the data fields in the ENS even if this means that a freight forwarder is identified as both the consignor and the consignee. Q3.7 - An ocean carrier may not know the ultimate costumer/consignee as it may have no contractual relationship with that party. What must then be reported in the ENS? The ocean carrier is required to provide the information “known” to it at the time of filing the ENS, meaning that the carrier can rely on the information in the master B/L to fill out the data fields in the ENS. To the ocean carrier, the “ultimate” consignee is the party named in the master B/L as the consignee, i.e. the party to which the carrier has contractually agreed to deliver the goods. Q3.8 - How would the ocean carrier know that a Do Not Load message has been issued for a shipment for which a freight forwarder has made the ENS filing? First, the freight forwarder may only file the ENS with the ocean carrier’s knowledge and consent. Next, in its ENS filing, the freight forwarder must identify the ocean carrier with the ocean carrier’s EORI number. The freight forwarder must also include both the container number and the ocean carrier’s (master) bill of lading number in addition to its own (house) bill of lading number in its ENS filing. Provided these date elements are included in the ENS, and provided that the ocean carrier is IT-connected to the Customs office of first entry that is the only Customs office that may issue an DNL message, the ocean carrier would automatically be notified not only of the MRN for the forwarder fling (which will serve as proof that the carrier’s obligation that an ENS is filed has been met) but also of any DNL messages. Based on the container and transportation document numbers included in the DNL message, the ocean carrier would be able to identify the containerized shipment that may not be loaded. Q3.9 - Annex 30A in the Community security legislation lists in Table 1 the data elements that are required in an ENS for containerized shipments. If a freight forwarder – with its knowledge and consent – files the ENS instead of the ocean carrier, where in the ENS must the forwarder provide the ocean carrier’s EORI number, its own EORI number, and the master and house bill of lading numbers? When a freight forwarder files an ENS instead of the ocean carrier, it becomes “the declarant” and must include its EORI in the “declarant” data field in ENS. The EORI number of the ocean carrier with which the forwarder has contractually agreed to file the ENS must be included in the “carrier” data field -- if the carrier’s EORI number is not included, the forwarder’s ENS filing will be rejected. Both the ocean carrier’s (master) B/L number and the forwarder’s (house) B/L 12 number must be included in the “transportation document number” data field -- ICS does explicitly allow for more than one transportation document number to be included in the ENS message (IE 315). (See Q 7.1 below). rd Q3.10 - If a 3 party – with its knowledge and consent - files the ENS instead of the ocean carrier and the ENS filing is done to an Office of Lodgement, how will the rd ocean carrier know that the 3 party has actually made the filing? rd If the 3 party in its ENS filing has identified the carrier and included the carrier’s EORI number and the carrier is IT-connected to the office of lodgement, then the carrier would 78 get the MRN directly from the office of lodgement. If the carrier is not connected to the office of lodgement, then this office must inform the Customs office of first entry that it did not provide the carrier with the MRN in order that the Customs office of first entry may inform the carrier of the MRN (provided that the carrier is connected to that office). Notification of the carrier of the MRN, which also includes a reference to its transportation document number, will provide evidence for the carrier that an ENS has been lodged and that the carrier’s obligation under the Community legislation to ensure that an ENS filing is made has been met.

Diversion Q4.1 - If, after the lodging of the ENS, the vessel is diverted to a non-EU Member State, what will happen? If the ship diverts to a non-EU Member State, there would not be a requirement pursuant to Community legislation to inform that non-EU Member State. If the ship after the diversion is to call at an EU port (whether the originally foreseen first port of arrival in the EU or another EU port), a new ENS must be lodged with the Customs office in the new, actual first port of entry in the Community. Q4.2 - In case of change of discharge location for FROB, does the carrier need to submit a “Diversion Request“? If, for example, the FROB during transit is being sold to an EU-based importer and thus will be discharged in the first (or subsequent) Community port on the vessel’s itinerary, then an amendment should be made to the originally lodged ENS. “Diversion Requests” only apply in cases where the conveyance (e.g. the ship), not the goods, change destination, and then only if the actual first port of entry is located in a Member State that was not declared in the ENS. Q4.3 - What about a change of destination when a shipment is originally consigned to a specific port of discharge but the shipper subsequently – as happens quite often – requests that the shipment be discharged in another port? This should be treated as an amendment to the ENS, not as a diversion request. Q4.4 - Does the term “Diversion Request” mean that Customs can overrule the master’s decision to divert the ship? No. Request could be read as notification, but a “Diversion Request” must include a number of specified data elements and may, therefore, be rejected if not properly complete. If rejected, a new, complete request must be lodged, but this does not mean the vessel cannot divert. Q4.5 - Is there a time limit to submit a diversion request? No, but it should be submitted as soon as a decision to divert has been made. Q4.6 - Which data elements must be included in a diversion request? There are two versions of the diversion request: The first version makes use of the so-called “Entry Key” data elements: Mode of transport at the border; identification of the means of transport crossing the border, i.e. the IMO vessel identification number (or the ENI number for inland waterways); expected date of arrival at first place of arrival in the customs territory of the Community

79 (as declared in the original ENS); country code of the declared first office of entry; declared first place of arrival code; and actual first place of arrival code. In the second version of the diversion request, a list of all the MRNs for all the ENS for all shipments carried must be lodged together with the following data elements: Mode of transport at the border; country code of declared first office of entry; declared first place of arrival code; and actual first place of arrival code. In VSA arrangements, the vessel operator – who (or its representative) must make the diversion request – would typically not have the MRNs for its VSA partners’ ENS filings rd (including the MRNs for any 3 party filings the VSA partners may have agreed to), so the assumption is that that liner shipping companies would typically use the first version of the diversion request.

Amendments to ENS Q5.1 - What information change in the shipment requires a re-submission of the ENS data to the Customs of first entry? The legal requirement is that the ENS is complete and accurate. There are a number of principles regarding what can be amended in the ENS and when the amendment can take place: From a legal point of view, there is no restriction in the CC or the CCIP. However, the particulars concerning the person lodging the ENS, the representative and the customs office of first entry should not be amended in order to avoid technical problems. The time limits for the lodging of the ENS do not start again after the amendment since it is the initial declaration that sets them. Risk analysis is performed on the basis of the ENS. Where an amendment is made, risk analysis is performed again with regard to the amended particulars. This will have an impact on the release of the goods only where the amendment is made so shortly before the arrival of the goods, that the customs authorities need additional time for their risk analysis. Additionally, an amendment request cannot be accepted by Customs if one of the following conditions is met: The person lodging the original ENS has been informed that the Office of First Entry intend to examine the goods; The Customs authorities have established that the particulars in question are incorrect; The Office of First Entry, upon presentation of the goods, has allowed their removal.

Amendments may be lodged by the same person that lodged the original ENS or its representative. However, amendments can only be lodged at the customs office of first entry so the filer – or its representative – would need to be IT connected to that office. The amendment process and different amendment scenarios are described in more detail in Section F of this ENS Application Guide.

Do Not Load (DNL) messages

80 Q6.1 - How will Customs communicate that a DO NOT LOAD (“hold”) is removed and that the cargo can be safely loaded / released? This will be up to each individual Customs administration to arrange. Regarding holds, nothing will change from existing practice, where Customs – based on the manifest reporting – may have targeted a shipment for inspection at discharge and then, upon inspection, lift the hold. Q6.2 - Are there DO NOT LOAD messages for types of maritime cargo other than containerized cargo covered by the 24hrs prior to loading rule for filing of an ENS? No. The DNL functionality applies only to deep sea containerized cargo; there will not be a DNL message functionality for break bulk cargo, where the carrier only needs to lodge the ENS no later than 4 hours prior to arrival in the first port of entry in the EU., or for short sea cargo, where the deadline is 2 hours before arrival. What actions does the carrier have to take if risk is identified for these other cargoes? Customs must perform its risk assessment for security purposes within the time from the filing of the ENS and the arrival of the ship, i.e. within either four hours (for vessels not deployed in short sea shipping) or two hours (for vessels deployed in short sea shipping). Before arrival, Customs may – but is not obliged to – inform the ocean carrier that it wants to inspect suspect cargo at the first port of arrival (= Risk Type B) or, alternatively, at the actual port of discharge (= Risk Type C). (See Q1.6 above) What will happen if cargo has already been released to the consignee by the time the results of Customs’ risk assessment is received? The results of Customs’ risk assessment for security purposes should be finalized at the time the vessel arrives and discharge of the cargo commences (before vessel loading in the case of deep sea containerized shipments), i.e. before the cargo is actually presented to Customs for a Customs procedure (that can be transit, import, Community status goods or – if no other Customs procedure is declared – temporary storage). If, upon presentation of the goods, Customs does not inform the presenter that the goods cannot be released, the assumption can and should be there that the shipment does not represent a security risk.

Import Control System (ICS) Q7.1 - What is the ICS? The ICS is systems architecture developed by the Community for the lodging and processing of ENS, and for the exchange of messages between national Customs administrations and between them and economic operators and with the European Commission. In certain circumstances in accordance with Article 183a CCIP the NCTS can be used for lodging instead of the ENS. ICS is made up of three “domains”: (a) The “common domain” for exchanges between the EU Member States and the European Commission; (b) The “national domain” made up of the national Customs computer systems and the associated risk management processes; and (c) The “external domain” being the interface between economic operators and the national Customs administrations for the lodging of ENS, issuance of MRNs as 81 receipt for the ENS filing, any Do Not Load (DNL) messages etc. It is through this latter “domain” that the ENS must be filed according to nationally determined technical specifications, message formats and structures etc.

Q7.2 - Is there a team site available where carriers can find latest news, updates, etc. from national Customs administrations regarding ICS or do we have to contact every Customs administration separately for information? A team site per se has not been created. However, the European Commission has provided the Trade Contact Group (TCG) with a survey of the individual Member States’ message formats and structures, communication protocols, connections etc. to be used in their external and national domains. Also, the European Commission has made available to the TCG a list of the Internet addresses where the national Customs administrations will provide the national technical specifications, message implementation guides (MIGs) etc. for their national computer systems, and other updates and news of relevance for ICS and the advance cargo security requirements. A list of the national ICS project managers has also been made available to the TCG. Q7.3. Is there any kind of pilot planned with one or more Member States? No. Each EU Member State is responsible for establishing a test period for the connections in their national computer systems to the economic operators’ computer systems for the lodging of ENS, receipt of MRNs, and any DNL messages etc. Q.7.4 - Is it possible to have further information on the various message formats in ICS? See reply to Q7.2 above. Q7.5 - How is the ocean carrier’s computer system to be connected to the customs system -- through the internet or any other special connection? Is it necessary for the carrier’s system to be connected to all Customs offices in EU ports? Or will there be a single receiver for all EU ENS filings? A single pan-European repository for the lodging of ENS does not exist. Instead, the ENS must be lodged electronically to the Customs office of first entry in accordance with the national technical specifications, formats, connections etc. established by the individual EU Member States. Consequently, ocean carriers would need to establish the necessary IT interfaces with those national Customs administrations that will be acting as the Customs office of first port of entry on their vessel rotations to which the ENS must be sent no later than 24 hours before vessel loading (deep sea containerized shipments) or 4 hours before arrival for other deep sea maritime sectors; for all short sea shipping sectors the dead line is 2 hours before arrival. Q7.6 - Does ICS cover the act of presenting the goods to Customs and Customs’ release of the goods? Presentation of goods and the release of goods are national Customs matters pursuant to national Customs legislation. These activities are not covered by ICS-Phase 1 that commences on July 1, 2009. Nor are lodging of manifests and arrival notifications covered by ICS-Phase 1; also these activities will be pursuant to national Customs legislation. Economic Operator Registration and Identification (EORI) number in ENS

82 Q8.1 - We are a foreign owned and established ocean carrier. Can we obtain an EORI number and, in the affirmative, where? Do we need to have a VAT number to obtain an EORI number? The EORI Regulation prescribes that for an economic operator not established in the Community, it “shall be registered by the customs authority or the designated authority of the Member State where [the economic operator] first performs one of the following: (a) he lodges in the Community a summary or customs declaration….; (b) he lodges in the Community an exit or ENS; (c ) he operates a temporary storage facility…; (d) he applies for [simplified Customs procedures]; (e) he applies for [AEO status]”. So, if the parent company will be filing all the ENS for cargo transported on ships arriving in the EU, the parent company would need to get an EORI number from that Member State where the parent company expects to file its first ENS. The individual EU Member States shall promulgate national rules for where to apply to for an EORI number which may be either the national Customs authority and/or another designated national authority. VAT numbers would only need to be included in the EORI Registration for third country operators where such a VAT number has been assigned by Member State. Q8.2 - Our company will be using a central computer and data centre located outside the Community to file our ENS. Does this data centre also need to obtain an EORI number? No. The central computer system centre would not need to register for an EORI number as it is merely an extension (“a secretary”) of the filer (the ocean carrier). Q8.3 - As the foreign based parent company, do we have to obtain an EORI number or can we instead file our ENS through one or more of our local agents established in the Community? It depends how the company wishes to organize itself. If the parent company wants to arrange that all its ENS filings are done by it, using its global corporate name, the parent company would need to obtain its own EORI number. The parent company then becomes “the declarant” and as such it will receive the MRNs for its own ENS filings and any Do Not Load messages. The ENS filings may instead be done by local agents. Where the agent is merely acting in the name of and behalf of the parent carrier, and is not incorporated as a separate legal entity, the parent company’s EORI number should be used as “the declarant”. Where the agent is acting in its own name but on behalf of the parent company, and is incorporated as a separate legal entity, the agent would as “the declarant” need to have its own EORI number; the parent company will be identified as “the carrier” in the ENS with its own EORI number. In either case, MRNs for the ENS filings and any DNL messages would be communicated both to the agent (as a “representative” or “the declarant”) and to the parent company (as “the declarant” or “the carrier”). rd This distinction may be of importance in cases where a 3 party – with its knowledge and consent – files the ENS instead of the ocean carrier: rd If the ocean carrier wants the MRNs for the 3 party filings and any associated DNL messages to be communicated directly to the parent company (e.g. its global computer rd and data centre), then the parent company’s EORI number should be provided to the 3 party for inclusion in its ENS filing in the “carrier” data field in the ENS.

83 If the ocean carrier instead wants the MRNs and any associated DNL messages to be communicated to the agent that issued the ocean carrier bill of lading in its own name but on behalf of the parent company, then the agent’s EORI number should be provided to rd the 3 party for inclusion in its ENS filing in the “carrier” data field. Q8.4 - We are a foreign owned and established ocean carrier with a European head office. Should the parent company or the European head office obtain an EORI number? Again, this depends how the company wishes to organize itself. As discussed above, the parent company can choose to do all ENS filings itself and would thus need to obtain an EORI number. The ENS filings could instead be done by the European head office(if this office is a person in accordance with Art. 4 (1) Customs code) that then would need to obtain its own EORI number. The decision on which approach to follow may to a large degree depend on who within the company structure should receive the MRNs and act on any DNL messages, rd including where a 3 party – with its knowledge and consent – files the ENS instead of the ocean carrier: If the MRNs and any DNL messages should always go to the parent company (e.g. its global computer and data centre), then the parent company may wish to file all the ocean rd carrier’s own ENS and have its EORI provided to any 3 party ENS filers for inclusion in their ENS filings. If instead the European head office should receive the MRNs and any DNL messages, then it may wish to file all the ocean carrier’s own ENS and have its EORI provided to rd any 3 party ENS filers for inclusion in their ENS filings.

Q8.5 - Our company already has a so-called Trader Identification Number (TIN). Do we need to apply for an EORI number to replace the TIN number in our Customs filings? The changes for existing economic operators will be limited when the Economic Operator Registration and Identification (EORI) Regulation takes effect as of July 1, 2009. Today, economic operators must – in order to do customs business – have a TIN number. So must any of their agents that are separate legal entities and do customs business. The economic operator and, if applicable, its agents may continue to use their TINs after July 1, 2009. Comment: The above answer is based on the European Commission’s briefings of the Trade Contact Group (TCG). However, implementation of the EORI Regulation is left to the EU Member States. It has yet to be confirmed whether they will take a similar approach. Q8.6 - How will we as an ocean carrier know the EORI number of each customer? Will there be an official list published? The EORI Regulation includes a provision empowering the Commission to publish the names and addresses of economic operators together with their EORI numbers of those economic operators that have given their written consent, so the list – when published – may not be complete It will be also possible to check the validity of any EORI number with the same service, although in this case the name and address will not be displayed.

84 However, the EORI numbers of consignors and consignees are only to be provided in the ENS “where available” to the declarant. Consequently, an ENS filing would not be rejected if it does not include those EORI numbers. Miscellaneous ENS matters Q9.1 - Has it been agreed that the ENS is B/L related reflected to include the container no(s) and not by a single container? Recall matter was widely discussed but am not sure what the outcome was. This will be up to each ocean carrier to decide. The overwhelming majority of the WSC Member companies have indicated that they will follow a “one Bill of Lading (B/L) – one ENS” approach. Ocean carriers have absolute discretion in choosing at which level it wants to file its ENS. It may choose to follow a “one Bill of Lading (B/L) – one ENS” approach. It may opt instead for a “one container – one ENS” approach. Or it could choose to include multiple B/Ls in one ENS. Q9.2 - If an ocean carrier follows the “one B/L - one ENS” approach, what about the relationship between ENS and MRN? Is it “one ENS - one MRN” also? Yes

Annex III

FREQUENTLY ASKED QUESTIONS Lodgement of Exit Summary Declarations (EXS) (Article 182 b CC)

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Contents

1. Basic principles 2. Different scenarios 3. Amendments to ENS 4. Release messages

1. BASIC PRINCIPLES

Q1.1 – Why are exit summary declarations now required? The amended Community legislation requires, as a general principle, that all goods brought out of the customs territory of the Community, regardless of their final destination, shall be subject to risk analysis and customs control, primarily for security and safety purposes, before departure or – in the case of containerized maritime shipments – before commencement of vessel loading. All such goods must therefore be covered by a declaration of some kind -- either a customs declaration, e.g. for export (i.e. the Customs treatment of Community goods that are taken out of the customs territory), re-export (i.e. the Customs treatment of non-Community goods that are taken out of the customs territory), transit etc., or, wherever any of the former is not required, an exit summary declaration (EXS). The stated purpose of the new measure is to establish an improved control over exported goods, so that risk to the EU’s trading partners is diminished, with a view to the possible relaxation of their own import controls in respect of EU goods and to the establishment of reciprocal agreements with those countries who adopt similar principles.

Q1.2 – When are exit summary declarations required? Most goods leaving the Community will be covered by either a customs declaration (full or simplified), including transit, for export or re-export. EXS are only required, under Article 842a CCIP, for other goods -- that is all goods, with certain specified exemptions, which are to be brought out of the Community but for which a customs declaration is not required. The Community legislation does not include a provision listing all the instances where an EXS would be required. Instead, based on our interpretation of the legislation, instances where EXS would be required in the instances identified below. We have provided these interpretations to the Commission, and we will advise Members if the Commission has a different view on any of the following:

86 1. Non-Community goods in temporary storage at an EU port loaded for re- export from the Community, where the period of storage has exceeded 14 days Non-Community goods being exported from temporary storage [or from Free Ports] do not require a customs re-export declaration, and therefore Article 824b requires an EXS to be lodged for such goods prior to commencement of vessel loading. There is, however, an exemption, under Article 841a, point (b) for non- Community goods previously covered by an ENS and transhipped at the place where they are unloaded, including where such goods are in ‘short term’ storage. ‘Short term’ storage has been defined, in guidelines, developed by the Commission in cooperation with the Member States, as not exceeding 14 days. (See Q1.14). In summary, an EXS is required to be lodged for non-Community goods being re- exported, unless those goods have been covered by an ENS, are transhipped at the same place where they were unloaded, and have been in storage for less than 14 days.

2. Community export goods loaded as transhipment goods following carriage from another EU Port Community export goods loaded as transhipment goods to an outbound main haul vessel following carriage from another EU Port, although technically deemed to be non-Community goods in temporary storage in the EU transhipment port, are not explicitly covered by the exemptions for short term storage and transhipment mentioned in 1 above (which – according to the plain language of the legislation - apply only to re-export goods, i.e., to non-Community goods previously covered by an ENS when brought into the Community). Article 842b therefore seemingly applies to such transhipped Community export goods, and an EXS is required to be lodged at the EU (transhipment) port of loading onto the main haul vessel which will carry them out of the Community, prior to that loading. Comment: This result would subject Community export goods to two risk assessments – one at the Customs office of export based on the export customs declaration, and another at the Customs office of exit in the EU transhipment port based on the EXS. This can be regarded as discriminatory against Community export goods when compared to e.g. non-community goods being transhipped in an EU port, which – as explained in 1 above – typically would only need to be risk assessed prior to arrival (prior to loading) based on the ENS. WSC staff is therefore seeking the European Commission’s further guidance on this point, and we shall advise WSC Member lines of the Commission’s response.

3. Community goods to be moved between Member States via the territory of a country outside of the EU (including when carried between EU ports on vessels that call at non-EU ports in between). These goods are not exports (or re-exports) and no customs declaration is therefore required. Article 824b therefore applies at the EU port of loading in the Community, and an EXS must be lodged there. It should be noted that the call at a port outside the EU means that the goods lose their Community status and must be covered by an ENS when re-imported into

87 the Community; the Community status will also need to be proven, i.e. by the Customs document typically referred to as “T2L” or other appropriate means. For example, Community goods moved on a vessel from Spain to the U.K. will not require EXS filings if the vessel has no non-EU intermediary port calls. However, if the vessel calls in Morocco after leaving Spain before sailing to the U.K., an EXS would need to be filed with Spanish customs before vessel loading in Spain, and an ENS would need to be filed with U.K. customs two (2) hours before arrival at the UK port.

4. Shipper owned empty containers Shipper-owned empties that are being transported pursuant to a contract of carriage are to be treated in the same way as other cargo and must be covered by an EXS. Carrier repositioned empty containers would not, pursuant to Article 592a (e) and (g), need to be covered by an EXS. (See Q.1.12)

In all of the instances listed in 1-4 where an EXS is required, the ocean carrier may - for certainty of trade flow - decide to lodge the EXS itself. Alternatively, it could arrange for the lodgement of the EXS by another party as part of the contractual arrangement for the carriage of the shipment.

Q1.3 – Are there any exemptions to the requirement for an exit summary declaration?

Yes. The Community legislation lists several types of goods/traffic for which an EXS is not required. Most important among these for the liner shipping industry are the exemptions for carrier repositioned empty containers, intra Community cargo movements (‘feeder’ movements), and cargo ROB, including export cargo loaded in previous Community ports. The regulations also provide for an exemption from EXS for short term storage and transhipments of non-Community goods. (See Q1 14.).

Q1.4 - Where must the exit summary declaration be lodged?

The exit summary declaration must be lodged at the customs office of exit. For maritime traffic, this is the EU port of loading of the goods to the vessel that is to carry them out of the Community even if the vessel is to call at subsequent Community ports before finally leaving the customs territory of the Community. (See Q1.10).

Q1.5 - Who must lodge the exit summary declaration? 88

There is a key difference from imports and ENSs (ENS), in that no legal obligation is placed upon the ocean carrier, or any other particular party, to lodge the exit summary declaration. The Community legislation requires that the EXS shall be lodged either ‘...by the person who brings the goods, or who assumes responsibility for the carriage of the goods out of the customs territory of the Community’, i.e. the carrier, or ‘...any person who is able to present the goods in question or to have them presented to the competent customs authority...’, i.e. the exporter, a forwarder, a terminal operator, or anyone else with a commercial interest in the goods or a representative of any of these. There is, therefore, no legal obligation placed upon the ocean carrier to lodge the EXS, or to ensure that it is lodged, within the time limit. Article 182d (3) CC provides for an option, not an obligation for any specific party. As a practical matter, however, the carrier will, as has always been the case, not be able to load, or remove, the goods without the permission of the customs authorities. If an EXS is required but has not been lodged, then the customs authorities will not release the goods for exit (loading). It is possible, in the outward goods environment, that the exporter or forwarder will seek to be responsible for lodging the EXS, where required, as they control the timing of the movement to the border, as with goods under the export procedure. However, specifically in the maritime environment, it is probable that ocean carriers, in order to ensure that containers will be released for vessel loading, may choose to lodge the EXS themselves. Arrangements for the control, release and loading of outward goods will be governed, as now, by national, rather than Community, legislation. The requirement for export manifests practised in many Member States is an example of this. As it is the ocean carrier, who is primarily affected by those national rules, it may find it in its interest to have full control over compliance with the customs requirements at EU ports of loading. In any event, ocean carriers must, as now, ensure that goods are not loaded or removed without proper release by the relevant customs authority.

Q1.6 - Must the person lodging the EXS have status as an Authorized Economic Operator (AEO)?

No. There is no requirement that an EXS declarant must be an AEO. However, the person lodging the EXS (“the declarant”) must have an Economic Operator Registration and Identification (EORI) number that must be included in the EXS. If the EORI number is not included, then the EXS is not complete, and it will be rejected.

Q1.7 - When must the EXS be lodged?

The Community legislation requires that the EXS for deep-sea containerized shipments on voyages from the EU whose duration is over 24 hours, must be lodged at least 24

89 hours before commencement of loading in the EU load port. Other deadlines apply for other shipping services and other modes of transport, e.g. 4 hours before departure for other non-containerized deep sea maritime sectors; for all short sea shipping sectors the dead line is 2 hours before departure from the EU load port.

Q1.8 – What must be declared in the EXS?

Annex 30A Table 1 of Commission Regulation (EC)1875/2006 as amended sets out the data elements to be included in the EXS.

Whoever lodges the EXS, this person (“the declarant”) is responsible for its content, accuracy and completeness. However, the declarant is only obligated to provide the information known to it at the time of the lodgement of the EXS. An ocean carrier would thus be able to rely on the information in its bill of lading to populate the data fields in the EXS.

Q1.9 - Can exit summary declarations be lodged at a customs office different from the office of exit?

Yes, provided that that the customs authorities at that office, the office of lodgement, and the customs authorities of the office of exit have bilaterally agreed to permit this. However, not all Member States have bilaterally agreed to allow the office of lodgement filing capability; this includes a number of major maritime EU Member States, e.g. the UK and Germany. In any event, there seems to be little benefit for the ocean carrier in this. The Customs office of exit would still be responsible for the risk assessment and for release (or not) of the cargo for loading/exit, so an ocean carrier would want to be connected to that office in any case. The ocean carrier will for other reasons already have a close relationship with the Customs office of exit (manifest filing etc.), so establishing a connection to an office of lodgement (perhaps in an landlocked country in the EU) solely for the purpose of filing an EXS may not be a resource effective decision.

Q1.10 - Is the last EU port of call always the office of exit?

No. The last EU port of call is the office of exit only for goods loaded to the vessel in that port.

This is also the case for vessels with ports of call outside of the Community, i.e. the office of exit is the EU port of loading of the goods to the vessel that is to carry them out of the Community, even if the vessel is to call at subsequent Community ports before finally leaving the customs territory of the Community.

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Q1.11 - Must FREIGHT REMAINING ON BOARD (FROB) for carriage to other ports, inside or outside of the Community, be included in an EXS?

No. The requirement for EXS lodgement applies only to cargo loaded at that EU port. FROB brought into the Community, and cargo loaded at previous Community ports, need not be declared on departure from any subsequent EU port or from the final EU port of call. (See the previous Q. 1.4 and Q1.10).

Q1.12 - Is an EXS required at the last Community port of call if no containers will be loaded there, e.g. a vessel calls only to unload containers?

No. The office of exit is the EU port at which the containers were loaded aboard the vessel. See previous Q1.10 & 1.11.

Q1.13 - Do EMPTY CONTAINERS have to be declared in an exit summary declaration?

Shipper-owned empties that are being transported pursuant to a contract of carriage shall be treated in the same way as other cargo and thus be covered by an EXS. Carrier repositioned empties may continue to be reported to Customs as is done today at loading and are not to be covered by an EXS.

Q1.14 - Will shipment of EMPTY ROLL TRAILERS be considered the same as empty containers, i.e. only to be covered by an EXS if transported under a contract of carriage?

Yes. Roll trailers would fall under the category “means of road, rail, air, sea and inland waterway transport”. Such means of transport will need to be covered by an EXS only if they are to be carried under a transport contract.

Q1.15 - How is TRANSHIPMENT CARGO to be handled?

This will depend on the type of transhipped cargo:

91 (1) Inward non-Community goods to be transhipped in a port in the EU will have been covered by an ENS (ENS) prior to arrival (prior to vessel loading for deep sea containerized maritime shipments) in the Community and will be in temporary storage. Where such goods are loaded to another vessel, for carriage to a destination outside of the customs territory of the Community, i.e. are to be re-exported from the Community, at the same port within 14 days after arrival, no exit summary declaration is required, provided that there has been no change to the supply chain information (e.g. consignee, destination) declared in the ENS. Local arrangements for request for release from temporary storage to/by the customs authorities will continue to apply. If, however, the transhipped cargo for re-export “sits” for more than 14 days in the transhipment port, or the supply chain information has changed, an exit summary declaration (EXS) must be lodged for that cargo prior to loading. Where such goods are loaded to another vessel for direct carriage to another EU port or ports, i.e. without any intervening call at a non-EU port, no exit summary declaration is required, whatever the length of time in temporary storage. Once again, local arrangements for request for release from temporary storage to/by the customs authorities will continue to apply. (2) For outward goods (i.e. Community goods previously covered by an export declaration at the original EU load port from which they have been carried and are unloaded at another EU port for transhipment to the vessel which will carry them out of the Community), the Community legislation appears to require that all such goods must be covered by an EXS, to be lodged at the EU transhipment port of loading of the main haul vessel which will carry them out of the Community, prior to that loading.

Comment: As noted earlier (Q1.2), the WSC staff is seeking the European Commission’s guidance on EXS requirements for Community export goods being transhipped in an EU port, and shall advise WSC Member lines of the Commission’s response

Q1.16 – What happens if the vessel is to call at a free port or free zone within the Community to load cargo? Do the same rules apply?

Yes. The present freedom from customs formalities, particularly for storage and transhipment, is seen by the Community as a ’security loophole’, and the requirements for ENSs and exit summary declarations will apply to cargo brought directly into/ out of free zones from/to ports outside of the customs territory of the Community. The same deadlines for lodging the EXS also apply. As in other cases, goods leaving the Community covered by a customs declaration (full or simplified), via a free zone will not require an EXS. EXS will, however, be required when goods not covered by a customs declaration are brought out of free zone, e.g. for goods transhipped in the free zone (i.e. direct re-export from free zone). The new

92 regulations provide for exemption for transhipment after short term storage (See Q1.15 (1) above) and this will also apply to free zones.

Q1.17 - Will EXS replace the export manifest filing? If not, what about the relationship between EXS and export manifest?

The EXS will not replace the traditional export manifest filing in each load port common to many EU Member States. However, a national Customs administration may waive the requirement to lodge an EXS provided that the export manifest for those shipments contains the relevant EXS data. Such a waiver would be pursuant to national Customs legislation.

A national Customs administration could instead, again pursuant to national legislation, require that the export manifest includes a reference to an EXS, where applicable, in order to establish the relationship between the manifest and the EXS. Such a reference could be the container number, but could also be Customs’ registration number of the EXS or - - in the case of non Community goods in short term transhipments - the registration number (the so-called MRN) of the ENS.

Q1.18 - Are exit summary declarations and export manifests to be lodged electronically?

EXS must be submitted electronically, or may be replaced by a notification to the customs authorities and access to the declarant’s computer system, provided that the necessary information is included. How, i.e. to what system, EXS are to be lodged in each Member State is a matter for the individual customs authorities themselves. (See Q 1.19 below). It is, as noted above, possible that some Member States may allow EXS to be lodged as part of an electronic export manifest, via port inventory systems. Export manifests are outside the Community legislation and are instead regulated by national legislation. Today, several Member States continue to use paper export manifests, but these Member States may at some point introduce legislation requiring the submission of manifests electronically.

Q1.19 - How is the ocean carrier’s computer system to be connected to the Customs office of exit -- through the internet or any other special connection? Is it necessary for the carrier’s system to be connected to all Customs offices of exit in EU ports? Or will there be a single receiver for all EU EXS filings?

A single pan-European repository for the lodging of EXS does not exist. Instead, the EXS must be lodged electronically to the Customs office of exit, via whatever system is established by the individual EU Member States. 93 There is a widely held – but incorrect - belief that the Export Control System (ECS) must be used for exit summary declarations (EXS) as well as for export declarations. As discussed further in Section 5 below, ECS is a message exchange system between Member States, not a data capturing system. Export declarations must be lodged with the individual Member States own export systems, and the data for any exchanges of messages then extracted from those systems using ECS. What is more, ECS need only be used where more than one Member State is involved. EXS, however, must be lodged to the office of exit, and while the ECS message system may be used to provide for the ‘office of lodgement’ facility, whereby it is lodged elsewhere and forwarded to the Customs office of exit (See Q1.9), the lodgement of EXS is likely almost invariably to be direct to the Customs office of exit – in particular if it is done by an ocean carrier. It is therefore highly probable that Member States with existing, well established declaration capture and processing systems will simply require EXS to be lodged to those systems, in accordance with national technical specifications, formats, connections, etc. It is immaterial to ocean carriers – for the purposes of lodging EXS - whether those national systems are part of the wider ECS system or are simply just national communication channels, such as the ’s CHIEF system. Consequently, ocean carriers that are to take responsibility for lodging EXS will need to establish the necessary IT interfaces with those national Customs administrations that will be acting as the Customs office of exit on their vessel rotations. The interfaces with those systems will be laid down in national technical specifications, including the MIGs (Message Implementation Guides), setting forth how lodgment of EXS must be done in each Member State.

WSC Member lines are therefore encouraged to obtain the national technical specifications, MIGs and other supporting material for how Member States acting as customs offices of exit on their various vessel rotations will require the lodgment of EXS to be done and in which format etc.

To that end, attached to these FAQs is a list of the national project managers for ECS in the various Member States (ATTACHMENT 1) as well as a list showing – for the individual Member States – the expected dates of availability of the national technical specifications (while this list pertains to ECS Phase 2 it should be indicative of when the technical specifications for the national systems for the lodgment of EXS should be available) (ATTACHMENT 2).

Q1.20 – Does the EXS system cover the act of presenting the goods to Customs and Customs’ release of the goods?

Presentation of goods for export and the release of goods for exit are national Customs matters pursuant to national Customs legislation. These activities are not covered by the EXS requirements that are currently scheduled to commence on July 1, 2009. Nor is the lodging of export manifests, which will also be pursuant to national Customs legislation. (See Q1.17 & 1.18 above)

94 Q1.21 - If the ocean carrier – for whatever reason - failed to lodge an EXS in time, what will the consequences be?

As is explained in Q1.5 above, there is no legal obligation on any particular party to lodge the EXS. The consequence will normally be that release for loading/ exit will simply not be granted. Article 842d (3) of Commission Regulation 1875/2006 provides that: “If the person lodges an exit summary declaration after the deadlines specified in Articles 592b and 592c, this shall not preclude the application of the penalties laid down in the national legislation”. Any such penalties would be imposed according to the national Customs legislation of the Member State acting as the Customs office of exit; however, it is questionable how this can be applied, given the lack of a specific filing obligation being imposed on any particular party.

It should be noted, however, that Article 842d (3) also prescribes that the customs authorities may, in cases where goods for which an EXS is required are presented for export loading without an EXS having been lodged, require the ocean carrier to lodge one immediately.

Q1.22 – What happens if both the ocean carrier and a third party, e.g. the shipper or a freight forwarder, lodge an EXS for the same goods?

The lack of legal responsibility referred to in Q1.5 and Q1.21 above means, of course, that both the ocean carrier and a third party may file an EXS for the same shipment. This will be a national matter, for the customs authorities to deal with. If there is discrepancy between the two EXS, however, then the consequence may be that the goods will not be released for exit/loading.

2. LODGING OF EXS: DIFFERENT SCENARIOS

Q2.1 - The Community legislation requires that the EXS should be submitted at the office of exit, i.e., the last customs office before the goods leave the Community. What happens if the vessel calls at more than one Community port? Do we need to submit an EXS twice, to the port of loading and then a second time to the last port?

No. For maritime traffic, the office of exit is the EU port of loading of the goods to the vessel that is to carry them out of the Community even if the vessel is to call at subsequent Community ports. The last port of call in the Community is the office of exit only for goods loaded to the vessel there. (See Q1.10 &1.11 above).

95 The above also applies if the vessel calls at non-Community ports before calling at the subsequent Community ports. (See Q.2.2 below).

Q2.2. What if a vessel loads at a Community port (e.g. Stockholm), then calls at a non-EU port (e.g. St. Petersburg, Russia) and then calls to load again at another Community port (e.g. Rotterdam)? Do we need to submit a new EXS in Rotterdam for the cargo loaded in Stockholm? And/or St Petersburg?

No. Cargo remaining on board the vessel need not be covered by an EXS when the vessel leaves Rotterdam (See Q1.10 above). Any EXS need only be lodged for cargo to be loaded at Rotterdam that requires an EXS, i.e. which is not covered by other forms of customs declaration or benefits from the short term transhipment waiver facility (See Q. 1.15) N.B. All the cargo on board the vessel will have been covered by an ENS prior to arrival in Rotterdam, as the voyage from St. Petersburg will constitute a new arrival in the Community. This ENS must include cargo loaded in both Stockholm and in St. Petersburg, whether or not for discharge in Rotterdam.

Q2.3 - Must cargo, e.g., from Russia transported on a feeder vessel to Hamburg to be transhipped onto a vessel destined for Singapore, be covered by an EXS lodged with Hamburg Customs?

In principle, yes, but the short term transhipment waiver facility may apply. The basic rule is that all cargo loaded in Community ports, including free ports, to be brought out of the customs territory of the Community must be covered by a Customs declaration, for risk analysis purposes. As this cargo is not EU export, an EXS will be required to be lodged with Hamburg Customs no later than 24 hours before commencement of loading of the cargo to the Singapore bound vessel. If, however, the goods are to be transhipped within 14 days of their arrival in Hamburg, the requirement for an EXS is waived. (See Q1.14 above).

3. Amendments to EXS

Q3.1 - What information change in the shipment requires a re-submission of the EXS data to the Customs office of exit?

The legal requirement is that the EXS must be complete and accurate. There are a number of principles regarding what can be amended in the EXS and when the amendment can take place: • The CC or the CCIP do not restrict what or when amendments can be lodged. However, the particulars concerning the person lodging the EXS, the

96 representative and the customs office of exit should not be amended in order to avoid technical (systems) problems. • The time limits for the lodging of the EXS do not start again after the amendment since it is the initial declaration that sets them. • Risk analysis is performed on the basis of the exit summary declaration. Where an amendment is made, risk analysis is performed again with regard to the amended particulars. This will have an impact on the release of the goods only where the amendment is made so shortly before the departure (or – in the case of containerized maritime shipments – the commencement of loading) of the goods, that the customs authorities need additional time for their risk analysis. Additionally, an amendment request cannot be accepted by Customs if one of the following conditions is met: • The person lodging the original EXS has been informed that the Office of Exit intend to examine the goods; • The Customs authorities have established that the particulars in question are incorrect; • The Office of Exit has allowed their removal. Amendments may be lodged by the same person that lodged the original EXS or its representative. However, amendments cannot be lodged with an ‘office of lodgement’, only with the customs office of exit so the filer – or its representative – would need to be IT connected to that office.

4. Release messages

Q4.1 - How will Customs communicate that permission to load is granted and that the cargo can be safely loaded / released?

This will be up to each individual Customs administration to arrange pursuant to national legislation. However, nothing is likely to change from existing practice, where Customs – based on the export manifest or other export control mechanisms – may have targeted a shipment for inspection at exit and then, after inspection, allow release for exit from the Community.

Q4.2 - Are there DO NOT LOAD messages for maritime cargo covered by EXS?

The Community legislation only explicitly provides for the issuance of Do Not Load (DNL) messages for deep sea containerized cargo to be brought into the customs territory of the Community. If risk is identified by analysis of an EXS, then the customs authorities will advise the person who lodged the EXS and, where different, the intended ocean carrier, that the goods are not to be released. How this is done will be a matter for each individual customs administration. In reality, a message that the goods cannot be released amounts to a DNL message. As such, the message should be communicated by

97 the Customs office of exit as soon as possible and in no case later than 24 hours after the lodgement of the EXS.

Annex IIII

Types of open export movements [identified so far - to be discussed during the next meeting]

Movements may remain open in ECS due to different reasons and therefore they can be categorised as follows:

1. A movement started in ECS, the goods have not left the Community:

98 a) For practical reasons or facilities the exporter stores the goods for example in a port under temporary storage until receiving a definitive order, until the ship arrives, until the consignee needs the goods (on demand traffic) used regularly for example in steel industry; b) After an export procedure started the contract is cancelled, for whatever reasons, the goods stay under temporary storage until the exporter finds an other buyer, or takes the goods back an has to cancel the export; c) A contract could also be suspended for a certain time period, and depending on the nature of the goods, these stay in a port or airport under temporary storage; d) The fact that goods could be stolen can not be excluded.

2. A movement started in ECS, the goods have left the Community, the movement was neither closed in ECS nor on paper: a) Goods/EAD are not presented to customs; b) Goods/EAD are presented to customs, but no message is send; c) Goods/EAD are presented to customs, an arrival is notified on a paper based procedure, and competent authorities of the office of exit are not informed about the exit of the goods; d) Goods/EAD are presented to customs, arrival is notified in ECS, but the authorities competent to confirm the exit are not informed about the arrival and/ or exit of the goods for example different offices competent.

3. A movement started in ECS, but was closed only on paper at the customs office of exit: a) The accompanying document is not presented to customs for example simplified procedure; b) It is not possible to read the barcode.

4. A movement started in ECS and was followed by transit/use of single transport contract but not closed in ECS: The transit is issued without knowledge about the existence of the ECS movement.

5. A movement started in ECS, and was closed on paper based on alternative proof at the customs office of export but not closed in ECS; 6. A movement started in ECS, and was closed in ECS by the customs office of exit, but message (IE518) is lost and has never reached the office of export; 7. A movement started in ECS, however, after a diversion message IE503 was never received by the actual customs office of exit, movement was only closed on paper; 8. A movement started in ECS and was diverted to another customs office of Exit (IE503 successfully received), movement only closed on paper at the customs office of exit; 99 9. A movement started in ECS, and was diverted to another customs office of exit (IE503 successfully received) and closed in ECS, but message (IE518) is lost and has never reached the customs office of export; 10. A movement arrive in another country (country B) than the declared customs office of exit (country A). The declared office of exit (in country A) will receive an IE524. If there is a diversion after that to the declared customs office or country of exit in country A, it is impossible to register the exit because the reception of the IE524 gives the declaration a final status. In this case it is not possible to register the exit in country A; 11. The arrival is registered at the declared customs office/country (country A) of exit. After this registration there is a diversion to another country (country B) and the declared customs office of exit will receive an IE524 (country A). After that there is a diversion again to the first office or country of exit (country A). It is impossible to register the exit because the reception of the IE524 gives the declaration a final status. In this case it is not possible to register the exit in country A.

General remark applicable for all the cases: A certain number, but certainly not the major part of the open movements, is due to technical problems. Messages are sent but never arrive etc. For example, it seems that if a Member State does not run the latest version of ECS or has not updated his system, this Member State is not able to send or receive a certain number of messages. This has as a consequence that other Member States involved even do not receive error messages, messages sent from another Member State simply disappear in the system. Another problem causing a lot of open movements is the human factor, not all custom officers or traders know how to handle the system correctly.

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