Instruction Manual

on
Customs End-Use Procedure
Date of Issue 14/03/2013
Queries: Email: revcep@revenue.ie
This Manual provides a guide to the interpretation of the law governing all aspects of the End-use
Customs Procedure. This is set out in Council Regulation (EC) No. 2913/92 (the Customs Code)
and Commission Regulation (EC) No. 2454/93 (the Implementing Provisions) and this Manual
should be read in conjunction with these regulations Customs Code, Implementing Provisions.
Published by Customs Procedures Branch (Economic Procedures Section), Nenagh.
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Table of Contents
1 Introduction .....................................................................................................................................4
1.1 What is End-use? ........................................................................................................................4
1.2 How End-use works ....................................................................................................................4
1.3 What goods qualify for End-use relief? ..................................................................................4
1.4 Persons Eligible for End-use relief .............................................................................................5
1.5 Exclusions from relief.................................................................................................................5
2. Application for Authorisation.......................................................................................................5
2.1 Application Procedure................................................................................................................5
2.2 Region/LCD Report on New Applications. ...............................................................................6
2.3 Security ......................................................................................................................................6
2.4 Rate of Yield...............................................................................................................................6
3 Types of Authorisations ..................................................................................................................7
3.1 National Authorisation...............................................................................................................7
3.2 Single Authorisation. .................................................................................................................7
3.3 Integrated Authorisation ............................................................................................................8
3.4 Retrospective Authorisation.......................................................................................................9
3.5 Simplified Authorisation............................................................................................................9
4. Issue of an Authorisation.............................................................................................................10
4.1 Issue of a New Authorisation...................................................................................................10
4.2 Renewal of an Authorisation....................................................................................................10
4.3 Amendment to an Authorisation..............................................................................................11
5. Entry of goods to the procedure.................................................................................................11
5.1 Declaration on SAD.................................................................................................................11
6. Obligations of Authorisation holders .........................................................................................11
6.1 Time Limits...............................................................................................................................11
6.2 Records......................................................................................................................................11
6.3 Satisfying End-use Conditions..................................................................................................12
7. Transfer of end-use goods other than aircraft parts................................................................13
7.1 General ......................................................................................................................................13
7.2 Simplified Transfer Procedures ...............................................................................................13
7.3 Transfer of Goods Within Ireland............................................................................................13
7.4 Transfers to or from Other Member States ...............................................................................13
7.5 Transfer of Obligations ............................................................................................................14
8. Transfer of aircraft parts.............................................................................................................14
8.1 Goods for the Maintenance and Repair of an Aircraft.............................................................14
8.2 Contents of air waybill .............................................................................................................14
8.3 Responsibilities of Airline .......................................................................................................15
8.4 Passing of End-use Obligations ...............................................................................................15
9. Goods which cannot fulfil end-use conditions ..........................................................................15
9.1 Approval to Export from the Community.................................................................................15
9.2 Approval to Destroy under Customs Supervision.................................................................15
9.3 Approval to Divert to Home Use ..............................................................................................16
9.4 Petroleum Products ..................................................................................................................16
9.5 Waste or Scrap ..........................................................................................................................16
9.6 Customs Duty Debt ...................................................................................................................16
10 Monitoring/Checking of Authorisations ..................................................................................16
10.1 Control Measures ....................................................................................................................16
10.2 Storage of Goods.....................................................................................................................17
10.3 Where End-use Obligations are not fulfilled. ........................................................................17
10.4 Cases of doubt or difficulty.....................................................................................................18
Appendix 1 .........................................................................................................................................19
Report on End-use application........................................................................................................19
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APPENDIX 2 .....................................................................................................................................23
General conditions to be observed by persons authorised ............................................................23
to engage in an End-use Arrangement. ...........................................................................................23
Appendix 3 .........................................................................................................................................26
Notes on Completion of Form T5...................................................................................................26
Appendix 4 .........................................................................................................................................27
Tariff headings for weapons and military equipment on which import duties are suspended........27
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1 Introduction
1.1 What is End-use?
End-use is a Customs procedure whereby goods entered for free circulation in the European Union
(EU) may be given favourable tariff treatment at a reduced or zero rate of duty on condition they are
put to a prescribed use. This procedure is designed to facilitate trade and ease of movement of
goods within the EU.
1.2 How End-use works
In order to obtain End-use relief, the importer must be the holder of an End-use Authorisation. The
goods must be put to a prescribed use within a certain period of time. The importer must also keep
records on the goods and their treatment. If the goods are not put to the prescribed End-use, duty
will be due.
The relief applies to customs duty only and does not extend to any anti-dumping duty, value-added
tax or excise duty that may be payable.
1.3 What goods qualify for End-use relief?
(i) Goods eligible for End-use identified by their Tariff classification.
(Provision is made under Regulations (dealing with suspension of duties in the
Tariff) to have the suspension of duty made dependent on the end use of the goods.
For example, Council Regulation (EU) No 1344/2011 of 19 December 2011
(suspending the autonomous Common Customs Tariff) makes the granting of some
suspensive rates subject to end use control while Council Regulation (EU) No
3050/95 of 22 December 1995 (temporarily suspending the autonomous Common
Customs Tariff duties on a number of products intended for the construction,
maintenance and repair of aircraft) also makes the granting of the suspensive rate
subject to End Use control).
(ii) Products intended for aircraft, ships, boats and for drilling platforms as set out in Part
I, Section II of the Combined Nomenclature.
(A listing of Tariff headings/codes for these products is given in the annual
Regulation introducing the succeeding years Tariff ( The Regulation introducing the
Tariff for 2013 is set out in Commission Implementing Regulation (EU) No
927/2012 of 9 October 2012)
(iii) Weapons and military equipment certified by a Competent Authority.
Council Regulation No. 150/2003 suspends import duties on a number of military
weapons and equipment on condition that the goods are being used by or on behalf of
the military forces of a Member State for the defence of the Member State or for
international peacekeeping or support operations. Duty is suspended for importation
of goods under this regulation subject to the application of End-use controls and the
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issue of the appropriate certificate by the competent authority, which in Ireland is the
Department of Defence. Businesses importing such goods on behalf of the
Department of Defence must be authorised for End-use and must hold the
appropriate certificate issued by that Department (or by the equivalent competent
authority in another Member State) covering the goods they wish to import.
Appendix 4 contains a list of 4-digit Tariff headings covering weapons and military
equipment on which import duties are suspended.
1.4 Persons Eligible for End-use relief
To benefit from End-use relief, a trader must be established in the EU. Persons who may qualify
include:
(i) Importers who, themselves, put the goods to the prescribed End-use; or
(ii) Importers who partly process the End-use goods and transfer these partly processed
goods to another person (or other persons) authorised to carry on the End-use process;
or
(iii) Importers of End-use goods who, themselves, do not carry out any End-use processing
but merely distribute the goods to other authorised persons who put the goods to the
prescribed End-use
1.5 Exclusions from relief
(i) Goods Not in Free Circulation
The provisions of this Manual do not apply to goods on entry to another Customs
Procedure (such as Inward Processing, Warehousing or Free Zone). However, on
discharge from another customs procedure End-use relief may be claimed.
(ii) CAP Goods
The provisions of this Manual do not apply to CAP goods subject to control provisions
derived from CAP Regulations or to intervention goods or goods removed from
intervention.
2. Application for Authorisation
(Article 292, Code Implementing Provisions)
2.1 Application Procedure.
(Article 292(2), Code Implementing Provisions)
Application forms are available on the Revenue website at www.revenue.ie under Customs,
Businesses and Customs, Economic Procedures or can be obtained from Economic Procedures
Section, Customs Division. All applications, including those for renewal or amendment to existing
Authorisations, must be submitted in writing to that Section.
On receipt of an application Economic Procedures Section will then carry out the following steps:
(i) Check that all the necessary information to process the application has been supplied
by the trader;
(ii) Forward a copy of the application to the relevant Region/LCD with a request for a
report on the suitability of the importer to use the End-use procedure. A standard
template for the report is provided See Appendix 1.
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2.2 Region/LCD Report on New Applications.
On receiving a copy of the application from Economic Procedures Section, the Region/LCD office
should establish who the Control Officer will be for this applicant. The Control Officer should
establish the bona fides of the trader, examine the traders accounting procedures and, if relevant to
the particular end-use procedure, examine the applicants premises. The Control Officer should
advise the trader of their obligations under the End-use system and should establish that the trader
has a copy of the Trader Guidelines on End-use or has access to them on the Revenue website.
Where the trader is a company, a senior executive in charge should be consulted to ensure that
management are aware of their obligations. In the case of an individual importing the goods (e.g.
private aircraft), the applicant should be interviewed to ensure s/he is aware of his/her obligations.
A report should then be completed including a recommendation as to whether or not the
Authorisation should be granted. Additional notes may be attached to the report if required. In
complex cases the finalisation of the report may involve an additional visit to the trader. Completed
reports should be sent to Economic Procedures Section as soon as possible and, in this regard, it
should be borne in mind that an Authorisation must generally issue within 30 days of receipt of the
application.
2.3 Security
The granting of an Authorisation is usually subject to the lodging of security and the signed
acceptance by the applicant of certain conditions. [Note however that where the trader is an
Authorised Economic Operator (AEO), it will be possible to consider the possibility of not requiring
security. In such a case the Control Officer should discuss with Customs Division as to whether or
not security should be sought]. Note also that security is not normally required in the case of fully
built civil aircraft. When required the security will normally take the form of a bond. (See also
security provisions relating to simplified Authorisations in paragraph 3.5). The Control Officer
should emphasise the importance of putting security in place at the first meeting. The amount
secured by the bond is referred to as the bond penalty and is determined by the Control Officer
during the course of the meeting with the importer. It is calculated on the amount of duty due on
the average stock-holding. The following is an example of a bond calculation:
Annual imports: 500,000
Turnover period: Seven months
Imports during turnover
Period taken as seven
Twelfths of annual imports: 291,667
Duty @ 9% on 291,667: 26,250
Bond penalty:- 27,000
Bond penalties should be rounded up to the nearest thousand euro and a minimum penalty of 7,000
should be applied in all cases.
While the bond is being arranged the trader must provide a cover note, which is a document issued
by an insurance company or bank securing the duty at risk on an interim basis, until the bond is
ready. There is a strict legal wording for cover notes and this is available from Economic
Procedures Section.
2.4 Rate of Yield
The rate of yield is the quantity of manufactured/processed products made from a given quantity of
imported goods. If the application covers more than one process or more than one category of
goods, the rate of yield for each processing operation and the method by which the End-use goods
will be identified in the processed goods should be given. It is important that the rate of yield is
accurate. If it is too low, the goods could be improperly diverted to an ineligible use.
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In cases where the rate of yield is not known at the time of application or where the rate may vary,
the application should be noted to the effect that production records will be used as the basis for
establishing the rate. If the rate of yield entered on the application form and Authorisation
subsequently changes, the applicant should immediately notify Revenue.
3 Types of Authorisations
3.1 National Authorisation
A national Authorisation allows the holder to avail of End-use in this State only.
3.2 Single Authorisation.
(Article 292(5), Code Implementing Provisions)
A single Authorisation may be issued which will enable the trader benefit from the End-use
provisions in more than one Member State. An application for a single Authorisation on the
standard application form is generally submitted in the Member State where the importers
main accounts are held. A company whose main accounts are held in Ireland will apply to
Revenue to have another Member State or States included in their Irish Authorisation. In the
same way a company whose accounts are held in another Member State will apply to the
Customs Authorities in the other Member State to have Ireland included in their
Authorisation.
3.2.1 Main accounts held in Ireland
All applications for single Authorisations in Ireland should be made to Economic
Procedures Section.
Economic Procedures Section will liaise with the Customs Administration in the relevant
Member State(s).
The application will be referred to the relevant Region/LCD for recommendation as will all
information received from the Member State(s) involved.
The designated Control Officer should ensure that any controls required at a local level in
any other Member State are clearly established at this stage.
The Control Officer should complete a report on the application as at para 2.2. Care should
be taken to ensure that transfer arrangements between the different traders mentioned in the
application are acceptable to both Administrations.
On receipt of a positive recommendation from the Control Officer, Economic Procedures
Section will prepare a draft Authorisation which is immediately copied to the authorities in
the Member State(s) in which processing will be carried out. This draft will include the
controls required by the Irish Administration.
Economic Procedures Section will issue the Authorisation on receipt of agreement by the
other Member State(s) or after 30 days if no objections are received.
Responsibility for control of the Authorisation rests with the Irish Administration.
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Bills of discharge or equivalent documentation and duty payments for all of the Member
States involved must be returned to the Control Officer in the Region/LCD in which the
trader is located.
Economic Procedures Section will keep in contact with the Administration(s) in the other
Member State(s) regarding amendments or other issues throughout the lifetime of the
Authorisation.
3.2.2 Main accounts held in another Member State
In the case of applications for single Authorisations in other Member States, the draft
Authorisation is forwarded by the Member State to Economic Procedures Section.
This draft is forwarded to the Region/LCD where the Irish trader is based. This draft should
be examined in a timely fashion as the Authorisation may be issued by the other Member
State if no objection is received within 30 days.
The designated Control Officer should contact the trader and arrange a meeting to examine
the premises where the procedure will be carried out, the accounting procedures used and to
explain to the trader their obligations with regard to this Authorisation.
Economic Procedures Section will liaise with the issuing Member State regarding any
controls that the Control Officer deems necessary.
On receipt of a positive recommendation from the Control Officer, Economic Procedures
Section will inform the Member State that Ireland has no objection to the issuing of the
Authorisation.
Economic Procedures Section will be kept informed by the Administration(s) in the Member
State which issued the Authorisation regarding any amendments or other issues throughout
the lifetime of the Authorisation.
Any issues that arise will be notified to the Control Officer in Ireland without delay.
3.3 Integrated Authorisation
(Code Implementing Provisions, Annex 67)
An integrated Authorisation may be issued where the trader wishes to be authorised for End-use and
another customs procedure (such as Inward Processing, Outward Processing or Customs
Warehousing). The application is made on the standard application form to Economic Procedures
Section in the normal way and the Region/LCD will be requested to confirm that the goods under
each procedure can be tracked at all times and that goods are discharged through the correct
procedure. The trader must indicate in the application what goods will be entered to each procedure
and this information will be specified on the Authorisation.
Where goods are discharged from both End-use and another procedure it will be necessary (for
validation purposes within the AEP system) for Economic Procedures Section to issue a second
Authorisation number to facilitate this process.
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3.4 Retrospective Authorisation
(Article 294, Code Implementing Provisions)
An Authorisation will normally take effect on the date of issue or at any later date specified in the
Authorisation. However, a retrospective Authorisation may be issued in exceptional circumstances.
Such retrospective Authorisations are only possible where:
(i) A proven economic need exists;
(ii) The application is not related to attempted deception or to obvious negligence;
(iii) The applicants accounts confirm that all the requirements of the arrangements have
been met and, if necessary, in order to avoid substitution, the goods can be identified
for the period involved and the accounts allow the arrangements to be verified; and
(iv) All the formalities necessary to regularise the situation of the goods can be carried out,
including the invalidation of the declaration.
All requests for retrospective Authorisation should be made to Economic Procedures
Section, and will be referred to the relevant Region/LCD for recommendation as at para. 2.2.
If retrospection is allowed, it will be necessary for the trader to amend the relevant SADs for
the retrospection period as the goods in question will have been imported originally with full
duty paid. The Control Officer should examine these amendments carefully as they will
create a refund situation.
Note: In practice the reduction in the customs duty payable will likely also give rise to
a refund of import Value-Added Tax.
In the case of non-VAT registered traders any such refund of import VAT is to
be allowed.
In the case of VAT registered traders the VAT re-credited by the amended
SAD should be re-debited by way of a short CI. This is necessary as VAT
registered traders claim any VAT refund due to them on their VAT 3.
3.5 Simplified Authorisation
(Article 292(3), Customs Code Implementing Provisions)
In certain cases importers may avail of a simplified Authorisation arrangement approved by
Revenue at the point of importation where goods are being imported for a particular End-use:
(i) On a one-off basis e.g. to facilitate a trader who is not a regular importer; or
(ii) Where the importation is a straightforward operation, the nature of the intended End-
use is simple and the Revenue supervision required is uncomplicated (e.g. importation
of a civil aircraft where the End-use can be verified simply by reference to a certificate
of registration in the public records).
Applications for such simplified Authorisation arrangements are made at point of import. The
SAD declaration constitutes an application for simplified end-use and must be supported by
accompanying documentation containing at least the following information:
(i) The name(s) and address (es) of the applicant, the importer and the operator;
(ii) The nature of the End-use;
(iii) The technical description of the goods, the products resulting from their End-use and
the means of identifying them;
(iv) The estimated rate of yield from the goods or the method by which that rate is to be
determined;
(v) The estimated period for assigning the goods to their End-use; and
(vi) The place where the goods are to be put to the End-use.
Where staff at the point of importation consider that particular elements of the above information
are not absolutely necessary to enable them to satisfy themselves that the goods will be put to the
intended End-use, or where any elements of the information are already contained on the SAD
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declaration, the accompanying documentation may be accepted without those particular elements
of information.
The following general conditions also apply to the issue of a simplified Authorisation:
(i) Clearance for free circulation and assigning of the goods to the prescribed End-use
must be carried out solely within Ireland, this procedure cannot be used for single
Authorisations;
(ii) The applicant must use the ordinary SAD declaration procedure (as opposed to a
simplified declaration procedure);
(iii) The applicant must be solely responsible for assigning the goods to the prescribed
End-use.
Due to the risks associated with the simplified Authorisation arrangement, its use should be
restricted to situations where there is a low risk of diversion to alternative uses (because of the
nature of the goods).
Security is not normally required for the importation of civil aircraft where staff at the point of
importation consider that there is no risk. In the case of one-off importations where the traders
compliance history is not known to staff at the point of importation, they may request a bank
guarantee to cover the duties at risk, should the goods not be put to the prescribed End-use.
4. Issue of an Authorisation
(Article 293, Code Implementing Provisions)
4.1 Issue of a New Authorisation
When Economic Procedures Section has received all necessary reports and documentation,
an Authorisation, based on the model in Annex 67 of the Implementing Provisions, is drawn
up. Authorisations are generally valid for a period of three years from the date of receipt of
the application.
If security is required, the Control Officer must obtain a cover note (see para. 2.3) from the
trader and send it to Economic Procedures Section. Following acceptance of the cover note,
Economic Procedures Section will send the original Authorisation to the Control Officer for
delivery to the trader. The Control Officer must deliver the Authorisation to the trader by
hand. Before receiving the Authorisation, the trader must accept and sign a standard set of
conditions (see Appendix 2), which specify the traders responsibilities regarding the use of
the Authorisation. A signed copy of the conditions must be returned to Economic
Procedures Section, while the Control Officer should retain a copy in the trader file.
In the case of newly authorised traders, when imports under End-use begin the Control
Officer should check to ensure that the tariff classifications codes, quantities and values
being declared are in accordance with the Authorisation.
4.2 Renewal of an Authorisation
(Article 292(2), Code Implementing Provisions)
Economic Procedures Section maintains a database of all current Authorisations. The Section sends
a reminder to all traders three months in advance of the expiry of their Authorisation. When an
application for renewal is received in Economic Procedures Section, it is checked for any changes
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from the previous Authorisation and if there are none a renewed Authorisation with a new number
is issued directly to the trader.
If there are any changes from the previous Authorisation, the Control Officer is requested to
examine the application and provide a recommendation as to whether or not the renewal
should be granted. In those circumstances the Control Officer will also be requested to
review the bond penalty.
4.3 Amendment to an Authorisation
(Article 292(2), Code Implementing Provisions)
All requests for amendments to current Authorisations must be submitted to Economic
Procedures Section. The Section will forward the request to the Control Officer for a
recommendation and a request to review the bond penalty.
5. Entry of goods to the procedure
5.1 Declaration on SAD
When traders are entering goods to the End-use procedure they should complete the SAD as
follows:
Enter the procedure codes 115 (other) or 140 (aircraft) in Box 36;
Enter the Authorisation number in Box 44;
Enter the invoice numbers or range of numbers in Box 44;
An invoice showing the total value and quantity of goods in the consignment must be retained by
the trader, and be readily available to the Control Officer if requested. Traders must retain copies of
the import SADs and supporting documentation for a minimum period of three calendar years after
the year in which the goods are no longer subject to End-use control by Revenue.
6. Obligations of Authorisation holders
6.1 Time Limits
An Authorisation holder must put the goods to the prescribed End-use within the time limit stated in
the End-use Authorisation. However, the specified time limits may be extended by Revenue if the
goods have not been assigned to the prescribed End-use within the time limit in question due either
to unforeseen circumstances or to exigencies inherent in the working or processing of the goods.
Any application for extension of a time limit or any case where the time limit is exceeded should be
referred to Economic Procedures Section for consideration.
6.2 Records
The holder of an Authorisation is required to keep adequate records to enable Revenue to carry out
any checks considered necessary to ensure that the goods are actually put to the prescribed End-use.
The records should show the Customs import entry (SAD) number and date. There must be an
adequate audit trail with locations, dates, values, quantities etc from receipt of goods, through
process and final disposal and including any by-products resulting from processing. The Control
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Officer should ensure that the records kept by the holder meet these requirements. These records
must be available for inspection by Revenue at all reasonable times. Revenue Officials must be
facilitated in checking the accuracy of the records as and when necessary. The records in question
must be preserved for a minimum period of three calendar years after the year in which the goods
are no longer subject to End-use control by Revenue. An End-use Authorisation holder must
submit to any other control measures deemed necessary by Revenue to verify compliance with End-
use conditions and must provide any information requested for that purpose.
6.3 Satisfying End-use Conditions
Goods are considered to have been assigned to the End-use in question when:
(i) In the case of goods which can be used only once, they have been assigned to the
prescribed End-use within the time limits laid down in the Authorisation (see section
6.1); or
(ii) In the case of goods which may be put to repeated use, two years after they are first
assigned to the prescribed End-use in accordance with the time-limits laid down; the
date of such first assignment is to be entered in the records referred to in section 6.2.
In certain cases End-use is deemed to be completed in specific circumstances:
(i) Materials used by airlines for the maintenance and repair of aircraft either under the
terms of exchange agreements or for their own needs are considered to have been
assigned to that End-use at the time of their first assignment to the prescribed use.
Note: The materials in question refer to:
(a) Goods referred to in Part 1, Section II B of the Combined Nomenclature and
(b) Goods intended for use in the construction, maintenance and repair of
aircraft, covered by the autonomous Community tariff suspensions.
(ii) Vehicle parts for assembly are considered to have been assigned to End-use when
assembly of the vehicle is complete and the vehicle has left the assembly line.
(iii) Goods (referred to in note (i) immediately above) intended for certain classes of
aircraft for the purposes of their construction, maintenance, conversion or equipping
are considered to have been assigned to that End-use when the aircraft is transferred to
a person other than the holder of the Authorisation or is again made available to its
owner, e.g. following maintenance, repair or conversion.
(iv) Goods (referred to in Part 1, Section II A of the Combined Nomenclature) intended for
certain classes of vessel or for drilling or production platforms for the purposes of their
construction, repair, maintenance, conversion, fitting or equipping are considered to
have been assigned to that End-use when the vessel or drilling platform is transferred
to a person other than the holder of the Authorisation or again made available to its
owner, e.g., following maintenance, repair or conversion.
Note: The suspension only applies to goods intended for incorporation in the various
categories of eligible vessels or platforms, for their construction, repair, maintenance
or conversion and to goods intended for fitting to or equipping them. It does not apply
to plant or tools, or to machinery or equipment for use in a shipbuilding yard or other
manufacturing premises. Consumable goods are also excluded.
(v) Goods (referred to in Part 1 , Section II A of the Combined Nomenclature) supplied
directly on board a vessel for the purposes of equipping it are considered to have been
put to the End-use at the time of such supply (see note to (iv) above).
(vi) Civil aircraft are considered to have been put to End-use when they are registered in
the public records prescribed for that purpose in an EU Member State or in a third
country. Evidence of such registration must be produced to Revenue before End-use
requirements are met.
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7. Transfer of end-use goods other than aircraft parts
(Article 296, Implementing Provisions)
7.1 General
The transfer of End-use goods may take place between different places named in an Authorisation
without Revenue formality.
In addition, goods under End-use control may be transferred from one Authorisation holder (the
transferor) to another holder of an Authorisation (the transferee). All the goods transferred must be
assigned to the prescribed End-use in accordance with the time limits specified in the Authorisation.
However, the period may be extended by Revenue in certain circumstances (see paragraph 6.1).
The transfer of goods between two Authorisation holders within Ireland may take place without any
formalities under a simplified transfer procedure using commercial documentation (see paragraph
7.3). However, where goods are being transferred between an Authorisation holder in Ireland and
an Authorisation holder in a different Member State and where a simplified transfer procedure (see
paragraph 7.4) has not been agreed by Revenue, the T5 (Transit) control procedure is to be used.
The method by which goods are to be transferred will be set out in the Authorisation.
The details required to be included on the T5 are set out at Appendix 3. The documentary flow for
such transfers is set out in paragraph 7.4.
The obligations relating to compliance with the conditions for End-use relief is transferred from the
transferor to the transferee on the date the latter receives the goods (see also section 7.5). Suitable
records showing evidence of transfer and receipt of the goods must be retained by the trader
concerned for examination by Revenue as required.
7.2 Simplified Transfer Procedures
Where Revenue considers that the proper conduct of operations is safeguarded, they may agree that
a transfer of goods between two Authorisation holders established in two different Member States
may be made without using the T5 control copy i.e. using commercial documentation. Applications
for use of this Simplified Transfer Procedure are to be referred to Economic Procedures Section for
consideration.
7.3 Transfer of Goods Within Ireland
Goods subject to End-use can be transferred from one Authorisation holder to another within
Ireland without any formalities under a simplified transfer procedure using commercial
documentation. However, the responsibility lies with the transferor to check, before any items are
dispatched, that the transferee has a valid End-use Authorisation for the goods. At this point the
transferor should determine from the local Revenue Office supervising the End-use arrangements,
what equivalent office deals with the transferee, so that copies of the commercial documents used
may be forwarded for information to that Office.
7.4 Transfers to or from Other Member States
As with transfers within Ireland, the responsibility lies with the transferor to ensure the transferee
holds a valid End-use Authorisation before any items are dispatched. If simplified transfer
procedures are not in place the T5 control copy must be used.
(i) The transferor must prepare one original and 2 copies of the T5 Control Copy. The
copies of the T5 must be numbered 1 to 3. Notes on the details required to be included
on the T5 are set out at Appendix 3.
The documentary flow for such transfers is as follows:
Transferor - Completes original T5 and two copies and forwards them to the
Transferee.
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Transferee - Attaches related commercial documentation to original T5 and sends all copies
to the Revenue office responsible for End-use control specified in his End-use
Authorisation.
Revenue Control Office of transferee
(a) Verifies details of commercial documentation and completes Box J on the original
T5;
(b) Date stamps Box J on the original T5 and Box E on the two copies;
(c) Retains copy 2 of T5; and
(d) Forwards certified original T5 plus copy 1 to transferee.
Transferee - Retains certified copy 1 T5 and forwards original T5 to transferor.
Transferor - Retains certified original T5 in records. Liability is discharged.
(ii) The transferors obligations under End-use pass to the transferee on the date of receipt
by the latter of the goods. Control of the goods is now with the transferees Control
Office. In the course of their transfer, goods consigned under this procedure are not
required to be presented at the Revenue office of departure or destination;
(iii) These arrangements apply equally to goods which, in the course of transport between
two points within the Community, cross the territory of an EFTA country and are
reconsigned from that country; and
(iv) The Customs authorities of the Member States of departure and destination are
required to carry out periodic checks to ensure adequate records are being maintained
of the transfer and receipt of goods at the premises of the transferor and the transferee
respectively. The Assistant Principal is to determine the frequency of these checks on
a risk analysis basis. The transferor and transferee are required to co-operate in this
and to provide any information requested.
7.5 Transfer of Obligations
The transferor is discharged from his/her obligations where the following conditions are fulfilled:
(i) The transferee has received the goods and has been informed by the transferor that
they are subject to End-use supervision by the National Competent Authority (in
Ireland, the Revenue Commissioners); and
(ii) Control has been taken over by the transferees National Competent Authority. Unless
otherwise provided this will be when the transferee has entered the goods in his/her
records.
8. Transfer of aircraft parts
(Article 297, Implementing Provisions)
8.1 Goods for the Maintenance and Repair of an Aircraft
A simplified system applies in the case of goods for the maintenance and repair of aircraft
consigned from one Member State to another by airlines engaged in international traffic under the
terms of exchange agreements or for the airlines own needs. Form T5 need not be used in the case
of goods which qualify under this arrangement, and they need not be presented at the Revenue
office of departure or destination. In this case, the goods are required to be carried under an air
waybill or equivalent document, a copy of which should be retained in the records of both the
consigning and receiving airline and a further copy of which should be made available to both the
Revenue office of departure and destination.
8.2 Contents of air waybill
The air waybill or equivalent document must contain at least the following particulars:
(i) The name of the consigning airline;
(ii) The name of the airport of departure;
14
(iii) The name of the receiving airline;
(iv) The name of airport of destination;
(v) The description of the End-use materials; and
(vi) The number of articles.
The particulars may be given in coded form or by reference to an attached document.
In addition the air waybill or equivalent document must include the words END-USE written in
large block capitals.
8.3 Responsibilities of Airline
The intact End-use materials and the copies of the air waybill or equivalent document are to be
delivered to the receiving airline in the places specified by the Customs authorities in the airlines
Member State of residence. On receipt of the transferred materials the receiving airline must
immediately enter them in its records in accordance with the requirements of paragraph 6.2.
8.4 Passing of End-use Obligations
End-use obligations pass from the consigning airline to the receiving airline at the time when the
intact materials and copies of the air waybill or equivalent document are delivered to the latter.
9. Goods which cannot fulfil end-use conditions
(Articles 298/299 code implementing provisions)
If goods under End-use control cannot be put to the prescribed End-use because of their condition
or because of some other valid reason the trader may apply, to the Control Officer,
to export them from the Community
to destroy them under customs supervision or
divert them to home use.
9.1 Approval to Export from the Community
The trader must apply to the Control officer for permission to export the goods which cannot be put
to the prescribed End-use. If permission is granted the goods may then be exported. Where End-use
goods are being exported, they are considered to be non-EU goods from the time of acceptance of
the export declaration. Upon exportation no charges will apply. Copies of the conditions laid down
by the Control Officer should be forwarded to Economic Procedures Section for information.
Where agricultural End-use products are being exported, the following note is to be made on the
Single Administrative Document (in Box 44) or on any other document used in lieu thereof:
ARTICLE 298 REGULATION (EEC) No 2454/93 END-USE: GOODS DESTINED FOR
EXPORTATION AGRICULTURAL REFUNDS NOT APPLICABLE.
9.2 Approval to Destroy under Customs Supervision
The trader must apply to the Control officer for permission to destroy under customs supervision
the goods which cannot be put to the prescribed End-use. If permission is granted the goods may
then be destroyed under customs supervision without the creation of a customs debt. Copies of the
conditions laid down by the Control Officer should be forwarded to Economic Procedures Section
for information.
15
9.3 Approval to Divert to Home Use
The trader must apply to the Control officer for permission to divert the goods which cannot be put
to the prescribed End-use to home use. This diversion of the goods will give rise to a customs debt.
9.4 Petroleum Products
Where application is made to export or destroy petroleum products, which are stored in a mixture,
the application should not be allowed except where the whole mixture is exported or destroyed.
9.5 Waste or Scrap
Where Revenue approval is granted for the destruction of End-use goods (as described in para. 9.2),
the provisions of Article 182(5) of the Code apply viz. waste or scrap resulting from destruction
should be assigned a Revenue-approved treatment or use prescribed for non-Community goods (i.e.
the placing of the goods under a customs procedure, entry into a free zone or warehouse, re-
exportation, or abandonment to the exchequer). The waste and scrap should remain under customs
supervision until it has been assigned such Revenue-approved treatment or use.
9.6 Customs Duty Debt
The Authorisation specifies the end-use to which the goods imported may be assigned. If the
importer puts the goods to another use, other than export or destruction, a customs debt is created
and the original entry must be amended. The Control Officer is responsible for the collection of the
customs duty. The amount of customs duty paid (if any) when the goods were originally entered is
to be deducted from the Customs debt incurred. The uncollected duty must be collected and
brought to account by post entry.
10 Monitoring/Checking of Authorisations
10.1 Control Measures
The Control Officer's initial report is the primary element in the decision to grant an Authorisation.
The checking of the trader's imports, entries/SADs and the overall monitoring of the Authorisation
by the Control Officer is essential to the control of End-use. It is a matter for each Control Officer
to ensure consistency in relation to this checking, having regard to risk strategy rather than
resources. There are several aspects to an Authorisation, which must be monitored by the Control
Officer. These include:
Ensuring that the terms and conditions are being adhered to;
Ensuring that the quantities and values as identified in the Authorisation are not exceeded or
likely to be exceeded. This should involve monitoring of bills of discharge or equivalent
documentation on a regular basis. If quantities or values are exceeded, this may result in
customs debts arising;
Ensuring that period of discharge is being adhered to;
Ensuring that only the goods specified on the Authorisation are declared under End-use;
Ensuring that goods can be tracked/traced through the process;
Ensuring that an authorised trader is subject to regular compliance checks having regard to
the frequency of importations . The level of detail that these compliance checks involve can
be decided by the Region/LCD but should involve at least the points above;
16
Ensuring that all authorised traders are considered for audit in the normal way. The
fact that these traders are visited for compliance checks on a regular basis should not
exclude them from any audit program being undertaken by the Region/LCD. An
audit during the lifetime of the Authorisation (usually three years) is desirable,
although final decisions on which traders to audit will be driven by the level of risk
involved.
10.1.1 Petroleum Products
In the case of petroleum products qualifying for End-use treatment the Control Officer
should ensure that the Authorisation holders records are sufficient to allow for the
tracing of these goods throughout their processing.
10.1.2 Parts for Aircraft or Sea Vessels
In the case of parts destined for End-use in the repair, maintenance, etc. of aircraft or
sea vessels, the Control Officer should ensure records of their use, for example,
engineers and mechanics reports of work done, are available for Revenue inspection.
10.1.3 Land-based Operational Bases
In the case of goods listed in Part 1, Section IIA of the Combined Nomenclature,
Revenue may, at the request of the Authorisation holder, approve places known as
land-based operational bases, where goods intended for incorporation in drilling or
production platforms, benefiting from duty suspension, may be stored or subjected to
operations of any kind. Such conditions as Revenue may determine shall apply to such
approvals. Requests received for such approvals are to be forwarded to Economic
Procedures Section for consideration.
The movement of such goods whether from platform to platform, base to platform or
point of shipment to platform, and vice versa, are not subject to Revenue formalities
other than the appropriate entry in the records pertaining to such goods. This applies
to platforms whether inside or outside territorial waters. These records should be
available for inspection by Revenue.
10.2 Storage of Goods
Any application to allow the common storage of End-use goods entered under the provisions of this
Manual with goods of the same type and quality and having the same technical and physical
characteristics not so entered (non-End-use goods) may be allowed by the Control Officer provided
that he/she is satisfied that the necessity for such storage exists. In such cases putting an equivalent
quantity of the common stock to the prescribed End-use will satisfy requirements.
However, in the case of qualifying (End-use) petroleum products storage may be allowed in a
mixture with other petroleum products or with crude petroleum oils of Tariff Heading No. 2710 11
11. Mixed storage of such goods which are not of the same kind and quality and do not have the
same technical or physical characteristics may be allowed only if the whole mixture is intended to
undergo one of the treatments referred to in Additional Notes 5(n) and 6 to Chapter 27 of Part 2 of
the Combined Nomenclature.
10.3 Where End-use Obligations are not fulfilled.
It may be discovered during routine checks, when completing the annual bond review or possibly
when reporting on the application for renewal of an Authorisation, that the importer is not
complying with the End-use conditions as listed in their Authorisation. The Control Officer and
local management should decide whether or not duty should be collected on the import goods in any
such case. Own Resources Section may be consulted if it is unlikely to be possible to collect the
17
duty and the issue of foregoing or writing off the duty therefore arises. The Control Officer and
local management should also decide if it is necessary to refer the case to Investigations and
Prosecutions Division where there is any suspicion of fraud. Any instances of non-compliance
should be reported to Economic Procedures Section.
10.4 Cases of doubt or difficulty
In cases of doubt or difficulty Economic Procedures Section should be contacted - Telephone Nos.
(067) 63204/63237 Fax: (067) 32373, email: revcep@revenue.ie
18
Appendix 1
Report on End-use application
(To be completed in accordance with Article 86 of Council Regulation 2913/92 and returned to
Economic Procedures Section)
FILE REFERENCE: ________________________________________________
Name and Address of Trader:
________________________________________________________________________
________________________________________________________________________
Registered Address:
(if different)
________________________________________________________________________
________________________________________________________________________
Company Registration No.: ___________________________
TAN No: __________________________________________
VAT Registration No.: ___________________________
EORI No: __________________________________________
Is the Trader aware of the End Use Guidelines for Traders notice? _________
Date of Visit(s): ______________________
(1) Is trader already under audit?_____________
If so, in what context?___________________________________________________
_____________________________________________________________________
(2) To what end-use will the goods be put and where will this take place?
_____________________________________________________________________
_____________________________________________________________________
(3) Are the accounts satisfactory?_______________
19
(4) Method of Identification______________________
(5) Are you in agreement with the rate of yield as stated on the traders application
form?_______________
If not, please agree rates of yield and report accordingly.
(6) Estimated time within which the goods will be put to End-Use?_______________
(7) Does the trader have a satisfactory record in complying with Customs
requirements?____________
Does the trader have AEO status? ____________
(8) Will the company require a deferred payment arrangement?_________________
(9) What is the amount of the bond penalty recommended?_____________
Is a cover note proposed as temporary security pending execution of the
bond?___________
Name of approved Guarantee Society:____________________________
If the trader has AEO status is the bond penalty to be waived? ___________
(10) What is the current address for each of the following Revenue offices?
(a) Supervising Revenue office:
______________________________________________________________
______________________________________________________________
(b) Office(s) of entry for the procedure:
______________________________________________________________
______________________________________________________________
(11) Are there any special control arrangements envisaged?
____________________________________________________________________
____________________________________________________________________
(Please give details)
(12) At entry to or discharge from the arrangements, are the goods transferred to or from
another holder? ____________
20
If yes please tick procedure as appropriate
Without customs formalities between different places designated in the
Authorisation (Article 296 (1))__________
Transfer between two Authorisation holders established in different Member
States in accordance with Annex 63 i.e. using T5 Control copy (Article 296
(2)).__________
Transfer between two Authorisation holders established in different Member States
using a simplified procedure i.e. using Commercial documentation (Article 296
(3))______________
Transfer between two Authorisation holders established in Ireland using
commercial documentation (Article 296 (4))______________
(13) Simplified Procedures.
Entry for the Procedure:
Should the trader be authorised to enter goods for the procedure using:
(a) Incomplete SAD _______________________________________________
(b) Commercial Documents __________________________________________
Discharge from the Procedure:
Should the trader be authorised to discharge goods for the procedure using:
(a) Incomplete SAD ______________________________________________
(b) Commercial Documents ________________________________________
(14) Has the trader been approved for any other simplified procedures?
___________________________________________________________________
If so, please give details:
___________________________________________________________________
(15) Has the trader given ten-digit Tariff codes for the goods to be put to End-use?
___________
(16) Has the trader provided an undertaking allowing Revenue right of entry
to any transferees premises? __________________________________________
If not, please request undertaking.
(17) Are there any other observations relevant to this matter which have
come to light as a result of enquiries carried out? _________________________
___________________________________________________________________
21
___________________________________________________________________
(18) Recommendation:
___________________________________________________________________
___________________________________________________________________
__________________________
NAME
(BLOCK CAPITALS)
__________________________
SIGNATURE REGION/LCD STAMP
22
APPENDIX 2
General conditions to be observed by persons authorised
to engage in an End-use Arrangement.
1. The Authorisation is issued by the Revenue Commissioners and may be revoked for non-
compliance with Community legislation governing End-use.
2. Acceptance of these conditions does not relieve the Authorisation holder from compliance
with the law and regulations for the time being in force relating to End-use or to the
importation, transhipment, exportation, warehousing or entry for free circulation of goods
including the submission of Intrastat and/or VIES declarations.
3. The goods must be put to the prescribed end-use as indicated in the Customs & Excise Tariff
within a period of from the date of entry for customs purposes or the date of receipt
of transferred goods.
4. The Authorisation holder is responsible for ensuring that the tariff code(s) quoted on the
Authorisation are correct.
5. The Authorisation holder is agreeable to the transmission by the Revenue Commissioners of
statistical information relating to goods imported under the arrangement to the EU
Commission.
6. The Authorisation must be available in support of the customs entry or other declaration
placing the goods under the arrangement. It must also be produced at any time (if so
required) for inspection by any Officer of the Revenue Commissioners.
7. Each consignment of goods imported under End-use must be entered in the Automated
Entry Processing (AEP) System, in accordance with the AEP Trader Guide. The appropriate
procedure code must be inserted in box 36 of the SAD. The Authorisation number must be
quoted in box 44.
8. Civil Aircraft are considered to have fulfilled the requirement of End-
use when they are registered in the Public records prescribed for that purpose
9. In the case of goods imported through the parcel post, the words "Imported under End-use
arrangements" must form part of the sender's declaration affixed to the parcel.
10. Records must be kept by the holder of the Authorisation at its principal place of business in
the State showing, as regards each import consignment:
(i) the stock on hands as at the date of Authorisation;*
(ii) the serial number of the consignment;
(iii) the date of receipt of the goods;
(iv) the number and date of customs entry and where applicable the date of receipt of the
goods on transfer from another authorised user;
(v) the value of the goods;
(vi) particulars of the quantities of the goods:
(a) used for the purpose for which imported
(b) accounted for as scrap or waste
23
(c) transferred to another holder of end-use Authorisation.
* Required only where the importer is already importing End-use goods.
The accounts must contain adequate detail to enable each transaction to be traced and
checked against inward and outward movements of materials approved under the
arrangement.
Particulars of each consignment received must be recorded under a unique sequential
reference and include the internal materials control references allocated by the trader. This
record must include the import SAD reference for imports and other recognised references
for other receipts.
11 The Authorisation holder is responsible for ensuring that s/he complies with the provisions
for the time being in force in relation to the payment of Value Added Tax.
12. The Authorisation holder must co-operate fully with Revenue in all necessary enquiries
undertaken in relation to the customs valuation of goods imported under the arrangement.
13. All necessary assistance and co-operation must be provided to Revenue in exercising control
of the arrangements and in establishing agreement between official records and the records
of the Authorisation holder.
14. In the event of the goods being transferred to another authorised person either in Ireland or
elsewhere in the Community advance notification of the transfer must be given. Where
goods are transferred the date of transfer and the name and address of the transferee, who
must also be authorised to import or receive similar goods under End-use, should be quoted
in the notification.
15. Where the Authorisation issued by the Revenue Commissioners provides for use of a local
clearance procedure, such procedure applies only to goods held under End-use and provides
strictly for the receipt of goods/products from other Authorisation holders. It does not
provide for the receipt of other goods at the Authorisation holders premises. The trader is
obliged to notify their local Revenue Office of the receipt of goods from other Authorisation
holders and to enter such goods in their records.
16. Revenue reserves the right to vary or add to the conditions set out above.
24
25
I/We . hereby certify
that the conditions (1) to (16) set out above are accepted and I/we
undertake to comply with them.
Signed*: ______________________________________
Designation of Signatory:
____________________________________________
on behalf of: ___________________________________
(Name of holder of Authorisation)
Date:_____________________
*When the Authorisation is issued to an individual, the signatory
should be that individual. In the case of a limited company, the
Signatory should be the Secretary or Managing Director or General
Manager, and in the case of any other trading entity, the owner or
partner. A responsible official other than those mentioned may also
sign provided he/she is duly authorised in writing to accept liability.
In the case of a non-resident individual, limited company or other
trading entity the signatory should be the lawfully appointed
Attorney of the holder of the Authorisation, resident in the State.
Appendix 3
Notes on Completion of Form T5
Form T5 is to be used for End-use goods that are being transferred between an Authorisation holder
in one Member State and an Authorisation holder in a different Member State.
The T5 Control Copy is to be completed as follows:
(a) The transferor is to complete the T5 control copy in triplicate (one original and
two copies). The copies are to be numbered 1 to 3.
(b) The T5 control copy must include:
- In box A, (Office of departure) the address of the competent Revenue office specified in the
transferors Authorisation;
- In box 2, the name or trading name, full address and Authorisation number of the transferor;
- In box 8, the name or trading name, full address and Authorisation number of the transferee;
- In the box Important note and in box B, the text is to be crossed out;
- In box 31 and 33, respectively, the description of the End-use goods as at the time of transfer,
including the number of items and the relevant CN Code;
- In box 38, the net mass of the goods in Kgs;
- In box 103, the net quantity of the goods in words;
- In box 104, a tick in the box Other (specify) and in block capitals the following note:
END-USE: GOODS FOR WHICH THE OBLIGATIONS ARE TRANSFERRED TO THE
TRANSFEREE (REGULATION (EEC) No. 2454/93, ARTICLE 296);
- In box 106,
- The taxation elements (viz. value, rate(s) of duty etc.) of the End-use goods being imported;
and
- The registered number and date of the declaration for release for free circulation and the
name and address of the Revenue office where the declaration was made.
(c) The transferor must send the complete set of T5 control copies to the transferee;
(d) The transferee will attach the original of the commercial document (showing the date
of receipt of the goods) to the set of T5 control copies and submit all documents to the
Revenue office designated in his Authorisation. He/she must also immediately notify
this Revenue office of any excess, shortfall, substitution or other irregularity;
(e) The Revenue office specified in the transferees Authorisation is required to fill in box
J, including the date of receipt by the transferee, on the original T5 after having
verified the corresponding commercial documents and is then to date and stamp Box J
on the original T5 and Box E on the two copies. The Revenue office concerned is to
retain the second copy of the T5 in its records and return the original and the first copy
to the transferee;
(f) The transferee is to retain the first T5 copy in his/her records and forward the original
to the transferor;
(g) The transferor must retain the original T5 in his/her records.
26
Appendix 4
Tariff headings for weapons and military equipment on which import duties are suspended
(COUNCIL REGULATION (EC) NO. 150/2003)
2804
2825
3601
3602
3603
3604
3606
3701
3702
3703
3705
3707
3824
3926
4202
4911
5608
6116
6210
6211
6217
6305
6307
6506
7308
7311
7314
7326
7610
8413
8527
8528
8531
8535
8536
8539
8543
8544
8701
8703
8704
8705
8709
8710
8711
8716
8801
8802
8804
8805
8901
8903
8906
8907
9004
9005
9006
9008
9013
9014
27
8414
8415
8418
8419
8421
8424
8427
8472
8479
8502
8516
8518
8521
8525
8526
9015
9020
9022
9025
9027
9030
9031
9302
9303
9304
9306
9307
9404
9406
28