TIR Application in the Community 1 Basic Principles

TIR Application in the Community 1

Basic Principles • European Community law: – Council Regulation 2913/92 (the Customs Code): • Article 91, paragraph 2 (external transit) • Article 163 (internal transit) – Commission Regulation 2454/93 (the Customs Code Implementing Provisions): • Articles 451 to 457 b 2

Basic principles • European Community is a Contracting Party to the TIR Convention 1975 • Council Regulation 2112/78 – Entered into force 20 June 1983 3

Basic principles • Community competence: – Commission has the authority to conclude agreements with international organisations (eg the United Nations), and – Is responsible for speaking on behalf of the Community (Article 300 of the Treaty) • Community has exclusive competence in the areas covered by the TIR Convention • Member states responsible for “the implementation of Community law” 4

Basic principles • TIR in the Community: – TIR procedure may only be used where: • the movement either begins or ends outside the Community, or • the movements is between to two points in Community via a 3 rd country – There are no internal borders - the Community is a single territory for TIR – Yet, each Member state is a Contracting Party to the TIR Convention – And each MS has at least one guarantee 5 association (GA)

Approval of TIR holders • • No EC law, therefore no standard procedure Apply Annex 9, Part II of TIR Convention Typical procedure Initial application sent to national guarantee association (GA) • GA will perform certain checks, namely: – proven experience (para 1(a)) – financial standing (para 1(b)) – proven knowledge (para 1 (c)) 6

• If satisfied, GA will refer application to Customs • Customs check: – financial standing (para 1(b)) – offence record (para 1 (d)) • If satisfied, Customs will issue authorisation. • Close partnership between GA and Customs 7

Application of Article 38 • Reinforced by Community law - Article 457 a of CCIP • EC single territory, so when one Member state excludes a holder, this decision applies to whole Community 8

Office of destination/exit • Termination of procedure: – Office will perform necessary checks – If satisfied, will issue certificate of termination – Complete boxes 24 and 28 of Voucher No 2 – Return counterfoil of Voucher No 2 to office departure/entry “without delay” – Article 455 CCIP states “within 1 month” – Input of Safe. TIR data 9

Authorised Consignee status 1. Following an application by the consignee, Customs authorities may grant the status of authorised consignee. 2. This authorisation shall be granted only to persons who: – – – Are established in the Community Regularly receive goods under TIR procedure, or whose customs authorities know that they can meet the obligations under that procedure Have not committed any serious or repeated offences against customs or tax legislation. 10

The authorisation shall apply: • Solely in the Member State where the authorisation was granted. • Only to TIR operations that have as the final place of unloading the premises specified in the authorisation 11

Authorised consignee’s obligations • Inform customs at the office of destination of the arrival of the goods • Immediately inform customs of any broken seals, and of any other irregularities such as excess quantities, deficits, or substitutions • Without delay, enter the results of the unloading into his records • Without delay, present to customs an advice indicating the particulars and condition of any seals affixed and the date of entry into the records 12

Date of termination • The date of the entry into the records of the results of the unloading • In case of irregularities, the date of the endorsement of the TIR carnet 13

Termination The termination of a TIR operation within the meaning of point (d) of Article 1 of the TIR Convention shall have ocurred when the requirements of article 454 b (1) and (2) have been met. 14

Office of departure/entry • Discharge of procedure: – To facilitate speedy return of Voucher No 2, record return address in “Official Use” box – Record expected office destination/exit in box 22 of Voucher No 1 – Compares information on Voucher No 1 with that recorded on returned Voucher No 2 – A posteriori controls 15

Enquiry procedure • Office of departure/entry initiates when: – Voucher No 2 not returned within 2 months – Send request to office destination/exit – Interrogate Safe. TIR – Inform GA of possible non termination – If Voucher No 2 still not returned after 4 months: – Send reminder to Office of departure/exit (to higher authority) 16

Enquiry procedure – If Voucher No 2 still not returned after 7 months: – Notify GA and Holder of non termination – If Voucher No 2 still not returned after 10 months: – Initiative debt recovery 17

Debtors and debt recovery • Articles 201, 202, 203 and 204 Code refer – The debtor has to be identified within 10 months – The identification of person or persons directly liable for the payment under Article 8. 7 of the TIR Convention is determined as follows: – Person(s) who • unlawfully removed the goods from Customs control, or • knowingly participated in the unlawful removal, or • knowingly acquired or held the goods so removed, or • required to fulfil the obligations of the TIR 18 procedure

– For example, the driver may be liable under the first or second bullet – The Holder could be liable under the fourth bullet – The GA would only become liable if it proved impossible to identify the true debtor – Send request for payment to GA 19

Liability of guarantee associations • Community has no internal borders • May be difficult to establish the actual place where the irregularity (debt) was incurred • Legislation required to hold all the GAs potentially liable 20

Sensitive goods • Goods which present a high risk of fraud • Use of CT comprehensive guarantee banned for certain “sensitive”goods (April 1996) • TIR guarantees withdrawn at same time • Partially restored in April 2000 • CT/Common transit used for these goods 21

Dispute • Community law (Article 243 Code) provides an appeal procedure • Not all situations are covered by appeal procedure • National legislation (civil law) applied 22