ANNEX A.2.
Annex concerning the
temporary storage of goods
Entered into force: 18 November 1977
April 1978
Table of Contents
- Contracting Parties having accepted the Annex
- Contracting Parties having entered reservations
- Reservations entered (in alphabetical order of Contracting Parties)
I. - Text and Commentary *
* Annex A.2. was adopted by the Permanent Technical Committee at its 89th/90th Sessions,
held in December 1975. At its 91st/92nd Sessions, in May 1976, the Committee revised the Note
to Recommended Practice 13. The Annex has been incorporated in the Kyoto Convention by
decision of the Council, adopted on 15 June 1976 at its 47th/48th Sessions in Brussels. It entered
into force on 18 November 1977.
Introduction
It is important that, on arrival, goods may be permitted to be unloaded from the means of
transport as soon as possible. In recognition of this fact Customs administrations have introduced arrangements under which the discharge of cargo may commence as soon as possible after arrival with a minimum of formalities subject to the Revenue being safeguarded.
For a variety of reasons some time may elapse between the arrival of the goods and the lodgement of the relevant Goods declaration. In these circumstances Customs authorities require the goods to be kept under Customs control and for this purpose they are usually placed in a specified area where they are stored pending lodgement of the Goods declaration. Such areas are termed temporary stores and may consist of buildings or may be enclosed or unenclosed spaces.
The provisions of this Annex do not apply to the storage of goods in Customs warehouses or in free stores.
Definitions
For the purposes of this Annex:
(a) the term "temporary storage of goods" means the storing of goods under Customs control in premises and enclosed or unenclosed spaces specified by the Customs (hereinafter called temporary stores) pending lodgement of the Goods declaration;¹
(b) the term "import 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 of goods, but not`including fees and charges which are limited in amount to the approximate cost of services rendered;
(c) 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;
(d) the term "Customs control" means measures applied to ensure compliance with the laws
and regulations which the Customs are responsible for enforcing;
(e) 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,
(f) the term "person" means both natural and legal persons, unless the context otherwise
requires.
Commentary
| ¹ | Nothing in the Annex prevents goods imported into the customs territory under Customs transit from being placed in a temporary store pending assignment to another Customs procedure. |
Principles
The temporary storage of goods shall be governed by the provisions of this Annex.¹
Commentary
| ¹ | There is no obligation on contracting Parties to accept all the provisions of the Annex,
and reservations in respect of any Standards and Recommended Practices that they are not in a position to apply may be entered (see Article 5 of the Convention).
Customs authorities are free to enact rules on aspects of the temporary storage of goods not
covered by specific provisions of this Annex.
Customs authorities may grant facilities greater than those provided for in the Annex. The
granting for such greater facilities is recommended in Article 2 of the convention. |
National legislation¹ shall specify the conditions to be
fulfilled and the formalities to be accomplished in respect of goods placed in temporary store.
Commentary
| ¹ | See commentary on Article 3 of the Convention.
|
Scope
The Customs authorities shall authorize the establishment of temporary stores whenever they
deem it necessary to meet the requirements of trade and industry.
Notes
1. In accordance with the provisions of national legislation,
temporary stores may be managed by the Customs authorities, by other authorities or by natural or legal persons.
2. Temporary stores may be open to all importers and other persons entitled to dispose of goods being imported, or use of them may be restricted to specified persons.
Temporary storage shall be allowed in respect of all kinds of goods irrespective of quantity,
country of origin or country whence arrived.¹ However,
goods which constitute a hazard, which are likely to affect other goods or which require special
installations shall be admitted only into temporary stores specially designed to receive them.
Commentary
| ¹ | The fact that goods may be subject to economic prohibitions or restrictions should not necessarily be a reason for refusing temporary storage facilities.
States that refuse temporary storage facilities in such circumstances should
enter a reservation (if necessary, in general terms) in respect of this Standard.
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The only document to be required when goods are placed in temporary store shall be that used to describe the goods when they are produced to the Customs.
Management of temporary stores
The requirements as regards the construction, layout and management of temporary stores and the arrangements for the storage of goods, for stock-keeping and accounting and for Customs control shall be laid down by the Customs authorities.
Notes
1. For the purposes of control the Customs may, in
particular:
| | | - | keep, or require to be kept, accounts of goods placed in the
temporary store (by using either special registers or the relevant documentation); |
| | | - | keep the
temporary store under permanent or intermittent supervision; |
| | | - | require that
the temporary store be double-locked (secured by the lock of the person concerned and by
Customs lock); |
| | | - | take stock of
the goods in the temporary store from time to time. |
2. Goods are usually required to be stored in locked premises. However, bulky or heavy goods and low-duty goods which constitute little Revenue risk are frequently stored in unenclosed spaces under Customs
supervision.
National legislation shall specify the person or persons held responsible¹ for the payment of any import duties and taxes chargeable on goods placed in a temporary store which are not accounted for the satisfaction of the Customs authorities.
Commentary
| ¹ | In some countries the person or persons held responsible for the payment of any import duties and taxes chargeable may be the person who places the goods in temporary store; in other countries it may be the manager or owner of the temporary store, for example if the goods are lost through no fault of the importer or the person who placed the goods in the store. |
When security¹ is required from the authority or
person managing a temporary store, the Customs authorities shall accept a general security.²
Commentary
| ¹ | Security is frequently required by the Customs authorities to ensure that the obligations deriving from the temporary storage of goods will be fulfilled. The Annex specifies neither the form the security should take nor the person(s) called upon to provide it; consequently these are matters for each country to decide.
Where security is required, it may be required from the owner or manager of the temporary store or from the person(s) who place the goods in the store. It is usually provided by depositing cash or negotiable securities or is given by an approved surety (natural or legal person, generally a bank or an insurance company). It may also take the form of a bond or (for example, where the temporary store is managed by an administrative authority) be given as a simple undertaking.
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| ² | See definition (e) above.
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The amount of any security should be set as low as possible having regard to the import duties and taxes potentially chargeable.
The Customs authorities should waive security where the temporary store is under adequate
Customs supervision, in particular where it is Customs locked.
Authorized operations
Any person entitled to dispose of goods in temporary stores¹ shall, for the purposes of preparing the Goods declaration, be allowed to:
|
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| (a) | inspect them; |
| (b) | weigh them; |
| (c) | take samples, against payment of the import duties
and taxes where appropriate.
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Commentary
| ¹ | The term "any person entitled to dispose of goods in temporary stores" is to be interpreted in accordance with national provisions.
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Goods in temporary store shall be allowed to undergo normal operations necessary for their
preservation in their unaltered state.
Note
The normal operations necessary for the preservation of the goods in their unaltered state may include cleaning, beating, removal of dust, sorting and repair or change of faulty packings.
Goods in temporary store should be allowed under such conditions as may be laid down by the Customs authorities, to undergo normal operations necessary to facilitate their removal from store and their further transport.
Note
These operations may include
sorting, piling, weighing, marking, labelling. They may also involve the consolidation of
different consignments of goods intended for further transport under a single transport document and/or a single Customs document (groupage).
Duration of temporary storage
Where national legislation lays down a time limit for temporary storage, the time allowed shall
be sufficient to enable the importer to complete the necessary formalities to place the goods
under a Customs procedure.¹
Note
The time limit laid down may vary according to the mode of transport used, and in the case of goods imported by sea may well be of considerable duration.
Commentary
| ¹ | The period of temporary storage allowed by a number of countries is fifteen days. A longer period, sometimes forty-five days, is often allowed in respect of goods arriving by sea.
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At the request of the person concerned, and for reasons deemed valid by the Customs authorities, the latter should extend the period initially fixed.
Deterioration, damage, loss, destruction
or abandonment of goods
Goods deteriorated, spoiled or damaged by accident or force majeure before leaving the
temporary store shall be allowed to be cleared as if they had been imported in their deteriorated, spoiled or damaged state.¹
Commentary
| ¹ | This Standard provides, for reasons of equity. that goods deteriorated, spoiled or damaged by accident or force majeure may be cleared as if they had been imported in that deteriorated, spoiled or damaged state, but it does not affect the requirements to be met or the need for permits (e.g. import licences) before goods can be taken into home use in various countries.
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Goods in temporary store which are destroyed or irrecoverably lost¹ by accident or force majeure shall not be subjected to import duties and taxes, provided that such destruction or loss is duly established to the satisfaction of the Customs authorities.²
Any waste or scrap remaining after destruction shall be liable, if taken into home use, to the import duties and taxes that would be applicable to such waste and scrap imported in that state.
Commentary
| ¹ | Goods may be deemed to be irrecoverably lost if salvage would be impossible or impracticable.
|
| ² | Stolen goods are not considered to be destroyed or irrecoverably lost and are not, therefore, covered by this provision. The provision also does not cover goods irrecoverably lost by reason of their own nature.
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At the request of the person entitled to dispose of them, goods in temporary store shall be
allowed to be abandoned, in whole or in part, to the Revenue or to be destroyed or rendered
commercially valueless¹ under Customs control, as the Customs authorities may decide. Such abandonment or destruction shall not entail any cost to the Revenue.
Any waste or scrap remaining after destruction shall be liable, if taken into home use, to the import duties and taxes that would be applicable to such waste and scrap imported in that state.
Commentary
| ¹ | The expression "rendered commercially valueless" means that the goods have been reduced to such a condition that the remnants thereof not only have no value in the field of commerce for which the goods were originally intended but also have no value in any other field of commerce, thereby ceasing to be of any interest to the Revenue.
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Removal from temporary store
Any person having the right to dispose of the goods shall be entitled to remove them from temporary store subject to compliance with the conditions and formalities in each case.
Note
The Customs authorities may require the person concerned to establish his right to dispose of the goods.
Goods not removed from temporary store
National legislation shall specify the procedure to be followed¹ when goods are not removed from temporary store within the period laid down.
Commentary
| ¹ | There are various courses of action which might be taken by the Customs. Apart from
granting an extension of time as provided for in Recommended Practice 15, they might arrange for goods to be placed in a Customs warehouse, to be transferred to a free zone or to be re-exported. In certain circumstances the goods might in due course be deemed to have been abandoned to the Revenue, and might subsequently be sold (see also Recommended Practice 21).
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When goods not removed from temporary store are sold by the Customs,¹ the proceeds of the sale, after deduction of the import duties and taxes and all other charges and expenses incurred,² should either be made over to the person(s) entitled to receive them ³ 
, when this is possible, or be held at their disposal for a specific period.
Commentary
| ¹ | The object of this Recommended Practice is to protect the interests of both the persons having goods in temporary store and the Customs who are responsible for ensuring collection of import duties and taxes.
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| ² | As may be provided by national legislation, not only import duties and taxes, storage costs and other charges and expenses but also sums owed to creditors may be deducted from the sale proceeds.
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| ³ | The provision does not preclude payment of all or part of the sale proceeds to persons other than the owner of the goods.
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| The provision does not apply to goods which are voluntarily abandoned in respect of which the person concerned would not be entitled to receive the appropriate proceeds of the sale.
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| The proceeds of the sale should be held at the disposal of the entitled persons for a period which is specified and is made known to the trading community.
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Information concerning temporary storage
The Customs authorities shall ensure that all relevant information regarding the temporary storage of goods is readily available¹ to any person interested.
Commentary
| ¹ | The information can be made available through the usual information media such as regular publications (e.g. official gazettes and notices) and by arranging for it to be given promptly upon request at all competent Customs offices.
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