ANNEX E.1.concerning Customs transit

Introduction
　For a variety of reasons it is frequently necessary for goods which are potentially liable to import or export duties and taxes to move from one Customs office to another.

　The legislation of most countries contains provisions under which such movements may take place without payment of the import or export duties and taxes, the goods being transported under Customs control to ensure compliance with the requirements laid down. The procedure under which such movements are made is termed Customs transit.

　To facilitate the international transport of goods which have to pass through a number of Customs territories, arrangements have been made under international agreements for the States concerned to apply standard procedures for the treatment of goods carried in Customs transit through their territories.

　This Annex relates to both national and international Customs transit. It does not apply to goods carried by post or in travellers' baggage.

Definitions
　For the purposes of this Annex:

(a) the term "Customs transit" means the Customs procedure under which goods are transported under Customs control from one Customs office to another;

(b) the term "Customs transit operation" means the transport of goods from an office of departure to an office of destination under Customs transit;

(c) the term "office of loading" means any Customs office under whose authority certain preliminary measures are taken to facilitate commencement of a Customs transit operation at an office of departure;

(d) the term "office of departure" means any Customs office at which a Customs transit operation commences;

(e) the term "office en route" means any Customs office where goods are imported or exported in the course of a Customs transit operation;

(f) the term "office of destination" means any Customs office at which a Customs transit operation is terminated;

(g) the term "Goods declaration" means a statement made in the form prescribed by the Customs by which the persons interested indicate the Customs procedure to be applied to the goods and furnish the particulars which the Customs require to be declared for the application of that procedure;

(h) the term "declarant" means the person who signs a Goods declaration or in whose name it is signed;

(ij) the term "transport-unit" means:

(i) containers having an internal volume of one-cubic metre or more,

(ii) road vehicles, including trailers and semi-trailers,

(iii) railway waggons, and

(iv) lighters, barges and other vessels suitable for use on inland waterways;

(k) the term "import and export duties and taxes" means Customs duties and all other duties, taxes, fees or other charges which are collected on or in connexion with the importation or exportation of goods but not including fees and charges which are limited in amount to the approximate cost of services rendered;

(l) the term "Customs control" means measures applied to ensure compliance with the laws and regulations which the Customs are responsible for enforcing;

(m) the term "security" means that which ensures to the satisfaction of the Customs; that an obligation to the Customs will be fulfilled. Security is described as "general" when it ensures that the obligations arising from several operations will be fulfilled;

(n) the term "person" means both natural and legal persons, unless the context otherwise requires.

Principles
1. Standard

　Customs transit shall be governed by the provisions of this Annex.

2. Standard

　National legislation shall specify the conditions to be fulfilled and the formalities to be accomplished for the purposes of Customs transit.

Scope
3. Standard

　The Customs authorities shall allow goods to be transported under Customs transit in their territory:

(a) from an office of entry to an office of exit;

(b) from an office of entry to an inland Customs office;

(c) from an inland Customs office to an office of exit;

(d) from one inland Customs office to another inland Customs office.

Note 1
　Customs transit movements as described in (a) - (c) above are termed "international Customs transit" when they take place as part of a single Customs transit operation during which one or more frontiers are crossed in accordance with a bilateral or multilateral agreement.

Note 2
　The following expressions may be used to describe the Customs transit movements referred to above:

(a) through transit (office of entry to office of exit);

(b) inward transit (office of entry to inland Customs office);

(c) outward transit (inland Customs office to office of exit);

(d) interior transit (one inland Customs office to another).

4. Standard

　Goods being carried under Customs transit shall not be subject to the payment of import or export duties and taxes provided the conditions laid down by the Customs authorities are complied with.

5. Recommended Practice

　Any person having the right to dispose of the goods, for example the owner, the carrier, the forwarding agent, the consignee or an authorized agent approved by the Customs should be entitled to declare the goods for Customs transit.

Note
　The Customs authorities may require the declarant to establish his right to dispose of the goods.

6. Standard

　The declarant shall be responsible to the Customs authorities for compliance with the obligations incurred under Customs transit; in particular he shall ensure that the goods are produced intact at the office of destination in accordance with the conditions imposed by those Customs authorities.

General provisions
7. Standard

　The Customs authorities shall designate the Customs offices which are competent to perform the functions laid down for the purposes of Customs transit.

8. Recommended Practice

　Where corresponding Customs offices are located on a common frontier, the Customs authorities of the two countries concerned should correlate the business hours and the competence of those offices for the purposes of Customs transit.

9. Recommended Practice

　At the request of the person concerned, and for reasons deemed valid by the Customs authorities, the latter should, so far as administrative circumstances permit, perform the functions laid down for the purposes of Customs transit outside the business hours and outside the promises of the Customs office, it being understood that the expenses entailed may be charged to the person concerned.

10. Standard

　Priority shall be given to the Customs operations relating to live animals, perishable goods and other urgent consignments which are under Customs transit and for which rapid transport is essential.

　Formalities at the office of departure

(a) Goods declaration for Customs transit

11. Standard

　Unless this formality is waived by the Customs authorities a written Goods declaration for Customs transit shall be presented at the office of departure.

Note
　In various countries simplified procedures exist under which certain Customs formalities, including the presentation of a Goods declaration, are waived. These procedures are applicable, for example, to goods carried by rail under cover of an international consignment note, and to goods moving only in the frontier zone.

12. Standard

　Goods declaration forms for Customs transit shall conform to the official model prescribed by the competent authorities.

Note 1
　The declarant is normally required to declare the following items:

　- name and address of consignor;

　- name and address of declarant;

　- name and postal address of consignee;

　- mode of transport;

　- identification of means of transport;

　- seals etc. affixed;

　- place of loading;

　- office of destination;

　- transport-unit (type, identification No.);

　- marks, numbers, number and kind of packages;

　- description of goods;

　- gross weight per consignment in kilos;

　- list of documents attached;

　- place, date and signature of declarant.

Note 2
　When they are considering revision of present forms or preparation of new forms for Goods declarations for Customs transit, the competent authorities may base their forms on the model in Appendix I to this Annex having regard to the Notes in Appendix II. The model is intended as a basis for the designing of Customs transit declaration forms to be used in Customs transit procedures where other forms have not been prescribed by bilateral or multilateral agreements. The model has been designed to be used for national Customs transit operations but can also be used for international Customs transit operations.

13. Recommended Practice

　Any commercial or transport document setting out clearly the necessary particulars should be accepted as the descriptive part of the Goods declaration for Customs transit.

(b)  Security

14. Standard

　The form in which security is to be provided for the purposes of Customs transit shall be laid down in national legislation or determined by the Customs authorities in accordance with national legislation.

15. Recommended Practice

　The choice between the various acceptable forms of security should be left to the declarant.

16. Standard

　The Customs authorities shall determine the amount in which security is to be provided for the Customs transit operation.

17. Standard

　When security is required to ensure that the obligations arising from several Customs transit operations will be fulfilled, the Customs authorities shall accept a general security.

18. Recommended Practice

　The amount of any security should be set as low as possible having regard to the import or export duties and taxes potentially chargeable.

(c)  Examination and identification of consignments

19. Recommended Practice

　Where the Customs authorities exercise their right to examine goods declared for Customs transit, they should limit the extent of the examination to that deemed necessary to ensure compliance with the laws and regulations which the Customs are responsible for enforcing.

20. Standard

　The Customs authorities at the office of departure shall take all necessary action to enable the office of destination to identify the consignment and to detect any unauthorized interference.

21. Standard

　When a consignment is conveyed in a transport-unit, Customs seals shall be affixed to the transport-unit itself provided that the transport-unit is so constructed and equipped that:

(a) Customs seals can be simply and effectively affixed to it;

(b) no goods can be removed from or introduced into, the sealed part of the transport-unit without leaving visible traces of tampering or without breaking the Customs seal;

(c) it contains no concealed spaces where goods may be hidden;

(d) all spaces capable of holding goods are readily accessible for Customs inspection.

　Such transport-units shall also have been approved for the transport of goods under Customs seal.

Note 1
　Transport-units are approved for the transport of goods under Customs seal pursuant to various international agreements such as the Customs Convention on Containers, done at Geneva on 18 May 1956, the Customs Convention on the international transport of goods under cover of TIR carnets, done at Geneva on 15 January 1959, the Unite technique des chemins de fer, concluded at Berne in May 1886, 1960 edition, and the Regulations (21 November 1963 version) of the Central Rhine Commission concerning the sealing of Rhine navigation vessels. They may be approved in the future pursuant to agreements which may supersede the foregoing. Additional arrangements for approval may be made by countries by bilateral or multilateral agreement for transport-units to be used for the purposes of Customs transit solely in their territories, for example in respect of containers which have an internal volume of less than one-cubic metre but which in all other respects qualify for Customs treatment as containers.

Note 2
　In certain circumstances Customs authorities may decide to seal transport-units which have not been approved for the transport of goods under Customs seal when they are satisfied that the units, when sealed, are sufficiently secure.

22. Standard

　When the consignment is conveyed in a transport-unit which cannot be effectively sealed, identification shall be assured and unauthorized interference rendered readily detectable, either by affixing Customs seals to individual packages, by affixing identification marks, by describing the goods, by reference to samples, plans, sketches or photographs attached to the Goods declaration, by full examination of the goods and recording the results thereof on the Goods declaration, or by Customs escort.

Note
　The precise action which the Customs authorities may decide to take when goods are to be transported in a transport-unit which cannot be effectively sealed will depend upon the individual circumstances of each case, taking account of factors such as the nature of the goods and their packing, and the potential import or export duties and taxes involved.

(d)  Additional control measures

23. Standard

　Only when they consider such a measure to be indispensable shall the Customs authorities:

(a) require goods to follow a prescribed itinerary; or

(b) require goods to be transported under Customs escort.

24 Recommended Practice

　When the Customs authorities prescribe a time limit for the production of the goods at a specified Customs office they should take account of the circumstances in which the Customs transit operation will take place.

Customs seals and identification marks
25. Standard

　 Customs seals and fastenings used in the application of Customs transit shall fulfil the minimum requirements laid down in Appendix III to this Annex.

26. Recommended Practice

　Customs seals and identification marks affixed by foreign Customs authorities should be accepted for the purposes of the Customs transit operation unless they are considered not to be sufficient or secure or the Customs authorities proceed to an examination of the goods. When foreign Customs seals and fastenings have been accepted in a Customs territory they should be afforded the same legal protection in that territory as national seals and fastenings.

Termination of Customs transit
27 Standard

　National legislation shall not, in respect of the termination of a Customs transit operation, require more than that the goods and the relevant Goods declaration be presented at the office of destination within any time limit fixed, without the goods having undergone any change and without having been used, and with Customs seals or identification marks intact.

Note 1
　The controls carried out for the purposes mentioned above by the office of destination may vary according to the circumstances of each individual Customs transit operation. The Customs authorities generally, however, satisfy themselves that any seals and fastenings or identification marks are intact, may verify that the transport-unit, if any, is otherwise secure and may carry out either a summary or a detailed examination of the goods themselves. The examination of the goods may take place, for example, in connexion with the placing of the goods under another Customs procedure.

Note 2
　National legislation may provide that accidents and other unforeseen events en route affecting the Customs transit operation be reported to, and verified by, the Customs or other competent authorities closest to the scene of the accident or other event.

28 Standard

　When it has been established to the satisfaction of the competent Customs authorities that the person concerned has fulfilled his obligations, any security given shall be discharged without delay.

29. Recommended Practice

　Failure to follow a prescribed itinerary or to comply with a prescribed time limit should not entail the collection of any import or export duties potentially chargeable provided the Customs authorities are satisfied that all other requirements have been met.

30. Standard

　Exemption form the payment of the import or export duties and taxes normally chargeable shall be granted when it is established to the satisfaction of the Customs authorities that goods being transported under Customs transit have been destroyed or irrecoverably lost by accident or by force majeure, or are short for reasons due to their nature.

Note
　 Remnants of such goods may be:

(a) cleared for home use in their existing state as if they had been imported in that state; or

(b) re-exported; or

(c) abandoned free of all expenses to the Revenue; or

(d) destroyed or rendered commercially valueless under Customs control without expense to the Revenue;

　as the Customs authorities may require.

　International agreements relating to Customs transit

31. Recommended Practice

　Contracting Parties should give careful consideration to the possibility of acceding to:

　- the Customs Convention on the International Transit of Goods (ITI Convention), Vienna, 7 June 1971;

　- the Customs Convention on the International Transport of Goods under cover of TIR carnets (TIR Convention), Geneva, 15 January 1959;

　- the Customs Convention on the ATA carnet for the Temporary Admission of Goods (ATA Convention), Brussels 6 December 1961;

　and of adhering to any international instruments that may supersede them.

Note
　ATA carnets can be accepted for the transit of goods under temporary admission which have to be conveyed to or from their destination under Customs control, either in the country of temporary admission or through a country or countries between those of exportation and importation.

32. Recommended Practice

　Contracting Parties which are not in a position to adhere to the international instruments enumerated in Recommended Practice 31 should, when drawing up bilateral or multilateral agreements with a view to setting up an international Customs transit procedure, take account therein of Standards and Recommended Practices 1 to 30 in the present Annex and, in addition, incorporate in the agreements the following specific provisions:

(1) where goods are transported in a transport-unit meeting the requirements set out in Standard 21, and where the person concerned so requests and gives the assurance that the transport-unit will, at a subsequent stage of the transport operation, be placed under a Customs transit procedure requiring a Customs seal, the Customs authorities at the office of loading should:

　 satisfy themselves of the accuracy of the accompanying documents approved by the bilateral or multilateral agreement and describing the contents of the transport-unit;

　 seal the transport-unit:

　 record on the accompanying documents the name of the office of loading, details of the Customs seals affixed and of the date of affixing.

(2) when the goods are subsequently declared for Customs transit, the Customs authorities at the office of departure should, unless in exceptional circumstances they deem it necessary to examine the goods, accept the seals affixed by the office of loading and the accompanying documents referred to in (1) above;

(3) common Goods declaration forms for Customs transit should be accepted in each Customs territory involved; such forms should be based on the model shown in Appendix I to this Annex taking account of the Notes contained in Appendix II;

(4) security, where required, should be given and accepted in the form of a guarantee valid and enforceable in each Customs territory involved, evidence of the existence of such guarantee being provided either by the Goods declaration form for Customs transit or by another document;

(5) without prejudice to their right to examine the goods, the Customs authorities should, as a rule, limit the extent of the formalities to be carried out at offices en route to the following:

　 at offices where goods are imported into the Customs territory the Customs authorities should satisfy themselves that the Goods declaration is in order, that any Customs seals and fastenings or identification marks previously affixed are intact and, where appropriate, that the transport-unit is secure, and that, where required, a guarantee is in force; they should then endorse the Goods declaration accordingly;

　 at offices where goods leave the Customs territory, the Customs authorities should satisfy themselves that any Customs seals and fastenings or identification marks are intact and, where necessary, that the transport-unit is secure; they should they endorse the Goods declaration accordingly;

(6) when an office en route removes a Customs seal or identification mark, for example, in order to examine the good, it should record details of the new Customs seals or identification marks on the Goods declaration accompanying the goods;

(7) formalities at offices en route should be further reduced, or completely abolished, the discharge of the obligations incurred under Customs transit being given by the competent authorities in respect of the entire Customs transit operation;

(8) arrangements should be made for measures of mutual assistance between the Customs administrations of the countries concerned with regard to verification of the accuracy of the documents describing goods transported under Customs transit and of the authenticity of Customs seals.

Information concerning Customs transit
33. Standard

　 The Customs authorities shall ensure that all relevant information concerning Customs transit is readily available to any person interested.

APPENDIX II Notes

1. The size of the model Goods Declaration for Customs Transit is the international ISO size A4 (210 x 297 mm, 8.27 x 11.69 inches). The form should be provided with a 10 mm top margin and a 20 mm left-hand filing margin. Line spacing should be based on multiples of 4.24 mm (1/6 inch) and width-spacing on multiples of 2.54 mm (1/10 inch).The lay-out should be in conformity with the ECE lay-out key, as illustrated in Appendix I. Minor deviations in the exact size of boxes, etc., are permissible if required for particular reasons in the issuing country, such as the existence of non-metric measurement systems, features of national aligned systems of documents, etc.

2. Countries may determine standards concerning the weight per m2 of the paper, and the use of a machine-turned background to prevent falsification.

3. The guiding words included in the Model Goods Declaration for Customs Transit are intended to indicate the nature of the information which should appear in a given place. In cases where national legislation makes it necessary, each country remains free to replace these words in its national form by such wording as it considers more appropriate provided that this wording does not affect the nature of the information as indicated in the Model Goods Declaration for Customs Transit.

4. In addition it is open to administrations to omit from their forms items which then do not require. the space which thus becomes vacant may be used for official purposes.

5. The Model is so designed that particulars relating only to international Customs transit are placed on the reserve side of the form and thus can be omitted for other applications.

6. The following comments refer to the boxes in the model form:

　Consignor (name and address)

　This box is intended to show the name and address of the sender of goods. If goods from several consignors are covered by a single declaration reference is made to appended documents.

　Consignee (name and postal address)

　The upper part of this box is intended to show the mail address of the consignee of goods; the lower part of it under the heading "Delivery address" is intended to specify the address where the goods are to be delivered, if differing from the mail address.

　Declarant (name and address)

　This term means the natural or legal person who signs the Customs transit declaration or in whose name it is signed.

　Country whence consigned

　This box is intended to show the country from which the goods are sent, viz. the export country.

　Country of destination

　This means the country of final destination of goods, after the Customs transit operation.

　Place of loading (*)

　This means the place of departure where the goods are actually loaded onto the means of transport.

　Pier, warehouse, etc. (*)

　This box is intended to show - when desirable - the place where the goods are stored before being loaded, which is of particular interest if goods are exported from Customs warehouse, etc.

　Via (*)

　Under "Via" is mentioned the places where Customs frontiers are crossed, the places where a change in mode or means of transport occurs, etc.

　Mode and means of transport (*)

　Information should be given of the mode and means of transport used for each part of the transport, by indicating ship's name, registration number of railway waggon or road vehicle, etc., as relevant. In intermodal transport, these data might have to be entered during the course of the transport.

　Office of destination (*)

　This means the name of the Customs office at which the Customs transit operation is terminated.

　Documents attached

　The declarant should list in this box such documents, e.g. certificates of origin and of sanitary control, goods manifests, which are attached to the declaration.

　Official use

　This box is intended for any information related to the control of the packages, etc.

　Seals, etc. affixed by Customs/declarant

　This space is intended for indicating the number of seals, etc., affixed and their numbers or other identification details. The appropriate box shall be marked to indicate whether the seals, etc., were affixed by the Customs themselves or by the declarant.

　Transport-unit (type, identification No.), marks and numbers of packages or items

　This area is intended for identification particulars for transport-units (e.g. container type and identification No.) or for the goods, such as shipping marks, leading numbers and consecutive numbers, or address marking.

　Number and king of packages/description of goods

　This area is intended for particulars of the number and kind of the packages and a description of the goods either in common trade terms or, if possible, using the terminology of the Customs or freight tariffs applicable.

　Commodity No

　When possible the relevant number of the applicable statistical commodity list or Customs tariff should be given, as in most cases these number, or parts of them, are used worldwide, and this would aid in identifying the commodity.

　Gross weight, kg

　The gross weight of the goods should be given in kilogrammes.

　National' administrative requirements

　This box is set aside to provide space for any additional details required by administrations, such as name of driver, prescribed itinerary or time-limit. It may also be used for official indications relating to the office of destination.

　Security details

　Details concerning the security provided, e.g. cash deposit, guarantee, should be given in this box.

　Place, data and signature of declarant

　The text of the declaration in this box can be changed, as appropriate, to reflect national legislation, bilateral or multilateral agreements.

　As regards the boxes on the back of the Customs transit declaration, these are intended as examples only and will have to be adjusted according to the procedure envisaged under a bilateral or multilateral Customs transit agreement.

(*) The design of these boxes can be adjusted according to the requirements under a particular application or for inclusion in a one-run system of aligned forms.

APPENDIX III Minimum requirements to be met by Customs seals and fastenings

　Customs seals and fastenings shall meet the following minimum requirements:

1. General requirements in respect of seals and fastenings:

　The seals and fastenings, together, shall

(a) be strong and durable;

(b) be capable of being affixed easily and quickly;

(c) be capable of being readily checked and identified;

(d) not permit removal or undoing without breaking or tampering without leaving traces;

(e) not permit use more than once;

(f) be made as difficult as possible to copy or counterfeit.

2. Physical specification of seals:

(a) the shape and size of the seal shall be such that any identifying marks are readily legible;

(b) each eyelet in a seal shall be of a size corresponding to that of the fastening used, and shall be positioned so that the fastening will be held firmly in place when the seal is closed;

(c) the material used shall be sufficiently strong to prevent accidental breakage, early deterioration (due to weather conditions, chemical action, etc.) or undetectable tampering;

(d) the material used shall be selected by reference to the sealing system used.

3.Physical specification of fastenings:

(a) the fastening shall be strong and durable and resistant to weather and corrosion;

(b) the length of the fastening used shall not enable a sealed aperture to be opened or partly opened without the seal or fastening being broken or otherwise showing obvious damage;

(c) the material used shall be selected by reference to the sealing system used.

4. Identification marks:

　The seal or fastening, as appropriate, shall be marked:

(a) to show that it is a Customs seal, by application of the word "Customs" preferable in one of the official languages of the Council (English or French);

(b) to show the country which applied the seal, preferably by means of the sign used to indicate the country of registration of motor vehicles in international traffic;

(c) to enable the Customs office by which the seal was affixed, or under whose authority it was affixed, to be identified, for example, by means of code letters or numbers.