Changes from plenary report to adopted text

AddedSection 2 Inward processing

AddedArticle 137 Scope

Added1. Without prejudice to Article 109, under the inward processing procedure non-Union goods may be used in the customs territory of the Union in one or more processing operations without such goods being subject to any of the following:

Added(a) import duty or other charges including anti-dumping duties, countervailing duties or safeguard measures;

Added(b) commercial policy measures, insofar as they do not prohibit the entry or exit of goods into or from the customs territory of the Union.

Added2. The conditions for placing goods under the inward processing procedure shall be the following:

Added(a) where required, an authorisation has been granted in accordance with Article 102, for one of the uses referred to in paragraph 3 of this Article;

Added(b) the minimum data has been provided or made available to customs, which must include at least the importer responsible for the goods, the seller, the buyer, the manufacturer, the value, the origin, the tariff classification and a description of the goods and their location, and the list of relevant other legislation applied by the customs authorities;

Added(c) the goods have arrived to the customs territory of the Union.

Added3. Importers may use the inward processing procedure for any of the following:

Added(a) repairing the goods that are intended to be placed under inward processing;

Added(b) destroying the goods that are intended to be placed under inward processing;

Added(c) producing processed products in which the goods placed under inward processing can be identified, without prejudice to the use of production accessories;

Added(d) undergoing operations on the goods placed under inward processing to ensure their compliance with technical requirements for their release for free circulation;

Added(e) subjecting the goods placed under the inwards processing to usual forms of handling in accordance with Article 108;

Added(f) producing processed products with goods equivalent to the goods placed under the inward processing procedure, in accordance with Article 109.

AddedArticle 138 Period for discharge

Added1. The customs authorities shall specify the period within which the inward processing procedure is to be discharged, in accordance with Article 105.

AddedThat period shall run from the date on which the non-Union goods are placed under the procedure and shall take account of the time required to carry out the processing operations and to discharge the procedure.

Added2. The customs authorities may grant an extension, of reasonable duration, of the period specified pursuant to paragraph 1, upon justified application by the holder of the authorisation.

AddedThe authorisation may specify that a period which commences in the course of a month, quarter or semester shall end on the last day of a subsequent month, quarter or semester respectively.

Added3. In the case of prior export in accordance with Article 109(2), point (c), the authorisation shall specify the period within which the non-Union goods shall be declared for the inward processing procedure, taking account of the time required for procurement and transport to the customs territory of the Union.

AddedThe period referred to in the first subparagraph shall be set in months and shall not exceed 6 months. It shall run from the date of acceptance of the export declaration relating to the processed products obtained from the corresponding equivalent goods.

Added4. At the request of the holder of the authorisation, the period of 6 months referred to in paragraph 3 may be extended, even after its expiry, provided that the total period does not exceed 12 months.

AddedArticle 139 Temporary export for further processing

AddedUpon application, the customs authorities may authorise some or all of the goods placed under the inward processing procedure, or the processed products, to be temporarily exported for the purpose of further processing outside the customs territory of the Union, in accordance with the conditions laid down for the outward processing procedure.

AddedSection 3 Outward processing

AddedArticle 140 Scope

Added1. Under the outward processing procedure Union goods may be temporarily exported from the customs territory of the Union in order to undergo processing operations. The processed products resulting from those goods may be released for free circulation with total or partial relief from import duty upon application by the holder of the authorisation or by any other person established in the customs territory of the Union, provided that that person has obtained the consent of the holder of the authorisation and the conditions of the authorisation are fulfilled.

Added2. The conditions for placing goods under outward processing shall be the following:

Added(a) where required, an authorisation has been granted in accordance with Article 102 and this Article;

Added(b) the minimum data has been provided or made available to customs, which must include at least the exporter responsible for the goods, the seller, the buyer, the value, the origin, the tariff classification and a description of the goods;

Added(c) any export duty or other charges due are paid or guaranteed;

Added(d) the goods comply with the relevant other legislation applied by the customs authorities;

Added3. The customs authorities shall not grant an authorization for an outward processing procedure for any of the following Union goods:

Added(a) goods the export of which gives rise to repayment or remission of import duty;

Added(b) goods which, prior to export, were released for free circulation under a duty exemption or at a reduced rate of duty by virtue of their end-use, for as long as the purposes of such end-use have not been fulfilled, unless those goods have to undergo repair operations;

Added(c) goods the export of which gives rise to the granting of export refunds;

Added(d) goods in respect of which a financial advantage other than refunds as referred to in point (c) is granted under the common agricultural policy by virtue of the export of those goods.

Added4. The customs authorities shall specify the period within which goods temporarily exported must be re-imported into the customs territory of the Union in the form of processed products, and released for free circulation, in order to be able to benefit from total or partial relief from import duty. They may grant an extension, of reasonable duration, of that period, upon justified application by the holder of the authorisation.

AddedArticle 141 Goods repaired or replaced free of charge

Added1. Where it is established to the satisfaction of the customs authorities that goods have been repaired or replaced free of charge, either because of a contractual or statutory obligation arising from a guarantee or because of a manufacturing or material defect, or because the goods did not meet the specifications requested by the buyer to the seller of the goods, they shall be granted total relief from import duty.

Added2. Paragraph 1 shall not apply where account was taken of the manufacturing or material defect at the time when the goods in question were first released for free circulation.

AddedArticle 142 Goods repaired or altered in the context of international agreements

Added1. Total relief from import duty shall be granted to processed products resulting from goods placed under the outward processing procedure where it is established to the satisfaction of the customs authorities that:

Added(a) those goods have been repaired or altered in a third country with which the Union has concluded an international agreement providing for such relief; and

Added(b) the conditions for the relief from import duty laid down in the agreement referred to in point (a) are fulfilled.

Added2. Paragraph 1 shall not apply to processed products resulting from equivalent goods as referred to in Article 109 and to replacement products as referred to in Articles 143 and 144.

AddedArticle 143 Standard exchange system

Added1. Under the standard exchange system an imported product (‘replacement product’) may, in accordance with paragraphs 2 to 5, replace a processed product.

Added2. The customs authorities shall, upon application, authorise the standard exchange system to be used where the processing operation involves the repair of defective Union goods other than those subject to measures laid down under the common agricultural policy or to the specific arrangements applicable to certain goods resulting from the processing of agricultural products.

Added3. Replacement products shall have the same eight-digit Combined Nomenclature code, the same commercial quality and the same technical characteristics as the defective goods had the latter undergone repair.

Added4. Where the defective goods have been used before export, the replacement products must also have been used.

AddedThe customs authorities shall, however, waive the requirement set out in the first subparagraph if the replacement product has been supplied free of charge, either because of a contractual or statutory obligation arising from a guarantee or because of a material or manufacturing defect.

Added5. The provisions which would be applicable to the processed products shall apply to the replacement products.

AddedArticle 144 Prior import of replacement products

Added1. The customs authorities shall, under the conditions they lay down, upon application by the person concerned, authorise replacement products to be imported before the defective goods are exported.

AddedIn the event of such prior import of a replacement product, a guarantee shall be provided, covering the amount of the import duty that would be payable should the defective goods not be exported in accordance with paragraph 2.

Added2. The defective goods shall be exported within a period of 2 months from the date of acceptance by the customs authorities of the declaration for the release for free circulation of the replacement products.

Added3. Where, in exceptional circumstances, the defective goods cannot be exported within the period referred to in paragraph 2, the customs authorities may grant an extension, of reasonable duration, of that period, upon justified application by the holder of the authorisation.