ANNEX A.3.

Annex concerning Customs formalities
applicable to commercial means of transport

Entered into force: 18 March 1982

May 1979

Table of Contents

I. Text and Commentary

II. Entry into force

III. Reservations

IV. Alphabetical Index

V. Provisions studied in detail and reproduced in Volume IV

I.--Text and Commentary *

* This Annex was adopted by the Permanent Technical Committee at its 99th/l00th Sessions in May 1978. The Annex has been incorporated in the Kyoto Convention by decision of the Council, taken on 14 June 1978 at its 51st/52nd Sessions held in Brussels. It entered into force on 18 March 1982.

Introduction

The obligation upon Customs authorities to control international transport in their territory in order to safeguard the Revenue, combat fraud and ensure compliance with national legislation in other respects, involves not only control of goods and passengers carried but also that of the means of transport used in international traffic. To this end, national legislation in most countries contains provisions which the Customs authorities are responsible for enforcing, concerning the movement of commercial means of transport to, in and from the Customs territories, the designated Customs offices or other approved places of call where commercial means of transport must be reported, the related documentary formalities, etc.

It is important that the Customs formalities applicable to commercial means of transport be carried out as rapidly as possible. Thus the measures taken by the Customs should be adapted to meet the needs in each case according to factors such as the purpose and duration of the stay of commercial means of transport in the Customs territory.

This Annex deals with means of transport which are used in international traffic for the transport of persons for remuneration or for the industrial or commercial transport of goods, whether or not for remuneration. Where appropriate, the provisions of the Annex also apply to commercial means of transport owned and registered in the territory concerned. It does not deal with means of transport for private use, nor with military or government means of transport not engaged in commercial activities.

Definitions

For the purposes of this Annex:

(a)the term "Customs formalities¹ applicable to commercial means of transport" means all the operations to be carried out by the person concerned and by the Customs in respect of commercial means of transport arriving in or departing from the Customs territory and during their stay therein;
(b)the term "commercial means of transport" means any vessel (including lighters and barges, whether or not ship-borne, and hydrofoils, hovercraft, aircraft, road vehicle (including trailers, semi-trailers and combinations of vehicles) or railway rolling stock, which is used in international traffic for the transport of persons for remuneration or for the industrial or commercial transport of goods, whether or not for remuneration, together with their normal spare parts², accessories and equipment, as well as lubrication oils and fuel contained in their normal tanks, when carried with the commercial means of transport;
(c)the term "Customs territory" means the territory in which the Customs law of a State applies in full;
(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 "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 goods³), but not including fees and charges which are limited in amount to the approximate cost of services rendered;
(f)the term "declaration of arrival" or "declaration of departure", as the case may be, means any declaration required to be made or produced to the Customs authorities upon the arrival or departure of commercial means of transport, by the person responsible for the commercial means of transport, and containing the necessary particulars relating to the commercial means of transport and to the journey, cargo, stores, crew or passengers;
(g) the term "security" means that which ensures to the satisfaction of the Customs that an obligation to the Customs will be fulfilled;
(h)the term "person" means both natural and legal persons, unless the context otherwise requires.

Commentary
¹The expression "Customs formalities" covers not only Customs formalities in the strict sense but also formalities required under regulations which the Customs are responsible for enforcing.
²The quantities of spare parts which would be considered as "normal spare parts" would generally vary according to the particular journey involved. For example, on long routes, it is customary to provide commercial means of transport with considerable quantities of spare parts, in particular where difficulties can be expected in obtaining the necessary spare parts from countries along the route.
³The Definition also covers Value Added Tax collected in connexion with the importation of goods.

Principles

1.Standard

Customs formalities applicable to commercial means of transport shall be governed by the provisions of this Annex¹

Commentary
¹There is no obligation on Contracting Parties to accept all the provisions of the Annex and reservations in respect on 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 Customs formalities applicable to commercial means of transport which are not covered by specific provisions of this Annex.

Customs authorities may grant facilities greater than those provided for in the Annex. The granting of such greater facilities is recommended in Article 2 of the Convention.

2.Standard

National legislation¹ shall specify the condition to be fulfilled and the Customs formalities applicable in respect of commercial means of transport.

Note

Such conditions and formalities may include measures carried out on behalf of other bodies, for example, harbour authorities.

Commentary
¹There is no obligation on Contracting Parties to accept all the provisions of the Annex and reservations in respect on any Standards and Recommended Practices that they are not in a position to apply may be entered (see Article 5 of the Convention).

3.Standard

Customs formalities applicable to commercial means of transport shall be reduced to the minimum necessary to ensure compliance with the laws and regulations which the Customs are responsible for enforcing.

4. Standard

All commercial means of transport shall be subject to Customs control on arriving in or departing from the Customs territory and during their stay therein¹.

Commentary
¹National commercial means of transport, that is, those owned and registered in the territory concerned, would be subject to Customs control during their stay in the Customs territory only when they commence or continue to be engaged in international traffic-- for example while transporting imported goods under Customs transit to an inland Customs office for the necessary Customs clearance.

5. Standard

Customs formalities applicable to commercial means of transport shall apply equally, regardless of the country of registration or ownership of the commercial means of transport, of the country whence arrived or the country of destination ¹ ² ³.

Commentary
¹This Standard excludes discrimination in respect of Customs formalities but in no way precludes or discourages the granting of special facilitation measures, such as the reduction of Customs formalities to countries with whom agreements have been made.
²Standard 5 places no restriction on countries varying the degree of Customs control exercised due to existing circumstances such as the necessity to apply strict Customs control measures on routes where smuggling could be expected to be more likely to occur.
³In cases where the United Nations has imposed sanctions against particular countries such sanctions operate independently of the Kyoto Convention and Contracting Parties applying them are not required to enter a reservation in respect of this Standard.

Temporary importation of
commercial means of transport

6.Standard

Commercial means of transport, whether loaded or not, shall be allowed to be brought temporarily into a Customs territory conditionally relieved from payment of import duties and taxes and free of import prohibitions and restrictions ¹ ². They must be intended for re-exportation without having undergone any change except normal depreciation due to their use, normal consumption of lubrication oils and fuel and necessary repairs.

Notes

1.The question of temporary importation does not generally arise in respect of commercial means of transport owned and registered in the territory concerned which are either home-produced or have previously paid any import duties and taxes to which they were liable³.

2.Temporary importation may be made subject to the condition that commercial means of transport are not used for internal transport in the Customs territory of the country of temporary importation.

Commentary
¹A country which restricts temporary importation to commercial means of transport which are imported and used by undertakings operating outside its territory would have to enter a reservation to this Standard.
²Countries fixing maximum limits for duty and tax-free importation of lubrication oils and fuel contained in the normal tanks of commercial means of transport will have to enter an appropriate reservation.
³Regarding returning national commercial means of transport, reimportation in the same state (Annex B.3.) may be appropriate.

7. Recommended Practice

No security or temporary importation document should be required for commercial means of transport.

8. Standard

Where the Customs authorities prescribe a time limit for the re-exportation of commercial means of transport, they shall take into account all the circumstances of the transport operations intended.

9. Recommended Practice

At the request of the person concerned, and for reasons deemed valid by the Customs authorities, the latter should extend any period initially fixed.

Temporary importation of special equipment for the
loading, unloading, handling and protection of cargo

10. Standard

Special equipment for the loading, unloading, handling and protection of cargo, whether or not it is capable of being used separately from the commercial means of transport¹, which is imported with the commercial means of transport and is intended to be re-exported therewith, shall be allowed to be brought temporarily into a Customs territory conditionally relieved from payment of import duties and taxes and free of import prohibitions and restrictions².

Notes

1. Temporary importation of such equipment may be made subject to the condition that it is used only in the immediate vicinity of the commercial means of transport, for example within an airport or on shore at ports of call.

2. No security or temporary importation document is normally required for such equipment.

Commentary
¹This Standard covers both equipment for the loading, unloading, handling and protection of cargo which is firmly installed on the commercial means of transport all movable equipment which can be used separately therefrom.
²Countries applying this Standard subject to reciprocity will have to enter a reservation.

Temporary importation of parts and equipment

11. Standard

Parts and equipment¹ which are to be used, in the course of repair or maintenance², as replacements for parts and equipment incorporated in or used on a commercial means of transport already temporarily imported in a Customs territory, shall be allowed to be brought temporarily into that territory conditionally relieved from payment of import duties and taxes and free of import prohibitions and restrictions.

Notes

1. A temporary importation document and, in some instances, security may be required for such parts and equipment. However, some countries have found it possible to dispense with these requirements.

2. At the request of the person concerned, replaced parts and equipment which arc not re-exported may be:
(a)cleared for home use in their existing state as if they had been imported in that state; or
(b)destroyed or rendered commercially valueless³ under Customs control, without expense to the Revenue; or
(c)with the consent of the Customs authorities, abandoned free of all expenses to the Revenue.

Commentary
¹In the context of this Standard the word " equipment " is not meant to include temporarily imported too]s, which are covered by the Customs Convention on the temporary importation of professional equipment (Brussels, 1961), nor any items of a consumable nature.

The Annex to the IMCO Convention and Annex 9 to the ICAO Convention have defined the term " equipment " in relation to ships and aircraft as follows:

IMCO
Articles, other than ships' spare parts, on board a ship for use thereon which are removable but not of a consumable nature, including accessories such as life-boats, life-saving devices, furniture, ships' apparel and similar items.

ICAO
Articles, other than stores and spare parts of a removable nature, for use on board an aircraft during flight, including first-aid and survival equipment.

²Temporary importation under this Standard is granted only to parts and equipment which are directly needed as replacements for the purposes of repair or maintenance in the country where they are imported. The Standard does not allow for the possibility of merely replenishing the stock of spare parts on board a commercial means of transport, nor does it allow the establishment of stocks of parts and equipment in the territory concerned.
³The expression "rendered commercially valueless" is taken to mean 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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