Kyoto Convention

ANNEX A.4.

Annex concerning Customs treatment of stores

Entered into force ....

June 1982

Introduction
Definitions
Principles (provisions 1-4)

Stores on board arriving vessels, aircraft or trains:

1.	Vessels:
	(a)	Exemption from import duties and taxes (provisions 5-6)
	(b)	Documentation (provisions 7-8)
	(c)	Issue of stores on board a vessel at arrival (provisions 9-10)
	(d)	Customs control (provisions 11-13)
2.	Aircraft:
	(a)	Exemption from import duties and taxes (provisions 14-15)
	(b)	Documentation (provision 16)
	(c)	Issue of stores (provision 17)
	(d)	Customs control (provision 18)
3.	Trains:
	--	Exemption from import duties and taxes (provisions 19-20)
	--	Supply of stores free of duties and taxes:
	(a)	Exemption from duties and taxes (provision 21)
	(b)	Replenishment of stores for the journey to final destination (provision 22)
	(c)	Issue of stores (provision 23)
	(d)	Documentary formalities in connexion with supply and departure (provisions 24-26)
	--	Other disposal of stores (provision 27)
	--	Information concerning Customs treatment of stores (provision 28)

II. Entry into force

Contracting Parties having accepted the Annex

III. Reservations

Contracting Parties having entered reservations
Reservations entered (in alphabetical order of Contracting Parties)

IV. Alphabetical Index

I.--Text and Commentary *

* This Annex was adopted by the Permanent Technical Committee at its 107th/108th Sessions in May 1980. The Annex has been incorporated in the Kyoto Convention by decision of the Council, taken on 18 June 1980 at its 55th/56th Sessions, held in Brussels. It entered into force on ......

Introduction

Most countries exempt from import duties and taxes stores which are carried on board vessels¹, aircraft and trains arriving in the Customs territory and which are intended to meet the needs of passengers and the crew as well as the needs of the means of transport themselves². Exemption is granted because, as a rule, such stores remain on board and may be regarded as temporarily imported with a minimum of Customs formalities. For obvious reasons, however, some of the stores may be used or consumed while the means of transport stay in the Customs territory.

Similarly, stores for vessels and aircraft departing for an ultimate foreign destination are usually supplied free of any duties and taxes. In this connexion, granting of the exemption is due to the fact that such goods are regarded as exported and thus receive the same benefits as those exported in the usual way.

The Customs control applicable to stores is usually adapted according to the differing requirements of each means of transport and, in some cases, according to the revenue status of the stores themselves. The measures normally taken include general supervision, documentary control and placing certain stores under Customs seal.

This Annex deals with stores for vessels, aircraft and trains which are used, or intended to be 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. It does not deal with stores for means of transport for private use or for military or government means of transport not engaged in commercial activities.

Commentary

¹ In the Annex, the term "vessels" also covers hovercraft.

² The Annex does not cover fodder and other feed for animals being transported which are considered as stores in some countries. Relief from import duties and taxes and from economic prohibitions or restrictions for such goods is provided for in Recommended Practice 36 of Annex B.2.

Definitions

For the purposes of this Annex:

(a) the term " stores " means:
-- stores for consumption; and
-- stores to be taken away;

(b) the term " stores for consumption " means:
-- goods intended for consumption by the passengers and the crew on board vessels, aircraft or trains, whether or not sold; and
-- goods necessary for the operation and maintenance of vessels, aircraft or trains including fuel and lubricants but excluding spare parts and equipment; which are either on board upon arrival or are taken on board during the stay in the Customs territory of vessels, aircraft or trains used, or intended to be 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;

(c) the term "stores to be taken away" means goods for sale to the passengers and the crew of vessels and aircraft with a view to being landed, which are either on board upon arrival or are taken on board during the stay in the Customs territory of vessels and aircraft used, or intended to be 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;

(d) the term " Customs treatment of stores " means all the facilities to be accorded and all the Customs formalities applicable to stores;

(e) the term "Customs formalities (1) applicable to stores " means all the operations to be carried out by the person concerned and by the Customs in respect of stores;

(f) the term "Customs territory" means the territory in which the Customs law of a State applies in full;

(g) 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 (2), but not including fees and charges which are limited in amount to the approximate cost of services rendered;

(h) 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;

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

Commentary

¹ The 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.

² The definition also covers Value Added Tax collected in connexion with the importation of goods.

Principles

1. Standard

Customs treatment of stores shall be governed by the provisions of this Annex¹ ².

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 Customs treatment of stores 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 Countries which grant the benefits provided for in the Annex only to stores for consumption should enter a general reservation to this Standard.

2. Standard

National legislation¹ shall specify the conditions to be fulfilled and the Customs treatment applicable in respect of stores.

Commentary

¹ See commentary on Article 3 of the Convention.

3. Standard

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

4. Standard

Customs treatment of stores shall apply equally, regardless of the country of registration or ownership of vessels, aircraft or trains¹ ² ³

Commentary

¹ This Standard excludes discrimination in respect of Customs treatment 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.

² Standard 4 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.

³ In 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.

Countries which apply the principle of reciprocity, particularly in respect of the supply of duty- and tax-free stores, will have to enter a reservation to this Standard.

Stores on board arriving vessels, aircraft or trains

1. Vessels
(a) Exemption from import duties and taxes

5.	Standard

Stores for consumption by the passengers and the crew and stores to be taken away carried in a vessel arriving in the Customs territory shall be exempted from import duties and taxes provided that they are not taken ashore¹.

Commentary

¹ Stores, which are sold or given free of charge to passengers or members of the crew, are no longer considered to be stores within the meaning of the Annex.

6. Standard

Stores for consumption necessary for the operation and maintenance of vessels which are on board a vessel arriving in the Customs territory, shall be exempted from import duties and taxes provided that they remain on board while the vessel stays in the Customs territory¹.

Note

In addition to fuel and lubricants the following, in particular, are normally considered as stores for consumption necessary for the operation and maintenance of vessels:

boiler compounds, fuel oil treatment preparations and filter sponges;
cleaning compounds and materials;
paints, varnishes and solvents and corrosion and rust inhibitors;
gas for welding purposes;
products for the preservation, treatment or preparation on board of the goods carried.

Commentary

¹	The corresponding facilities for normal spare parts and equipment upon arrival in the Customs territory are provided for in Annex A.3. which also deals with parts and equipment imported separately.

(b) Documentation

7. Standard

Where a written declaration concerning stores on board vessels arriving in the Customs territory is required by the Customs authorities, only goods which are subject to high import duties and taxes and goods which are subject to import restrictions or prohibitions shall be required to be listed in detail thereon¹.

Notes

1. Some countries have found it possible to dispense with the requirement for a written declaration concerning any kind of stores on board arriving vessels.

2. In many countries only the following stores on board vessels have to be listed in detail: narcotics for medical use, tobacco products, beer, spirits, wines.

Commentary

¹ This Standard pertains to a separate written declaration concerning stores on board vessels upon arrival. While documentary requirements in respect of stores may vary, for example, information concerning stores may be required to be given on a manifest concerning the vessel upon arrival, nevertheless only goods referred to in this Standard may be required to be listed in detail thereon.

8. Recommended Practice

When considering a revision of the present forms or preparation of new forms for the declaration concerning stores on board vessels, the competent authorities should base the form on the Model Ship's Stores Declaration (Form FAL 3), as recommended by the Inter-Governmental Maritime Consultative Organization.

(c) Issue of stores on board a vessel at arrival

9. Standard

The Customs authorities shall allow the issue of stores for consumption during the stay of a vessel in the Customs territory in such quantities as the Customs authorities deem reasonable having regard to the number of the passengers and the crew and to the length of the stay of the vessel in the Customs territory, provided that such stay is considered to be of reasonable duration.

Notes

1. In some countries the grant of this facility for passengers is subject to the condition that no passengers or cargo are embarked at one port of call in the Customs territory for disembarkation at another port in that territory¹.

2. The Customs authorities normally allow the issue, whether or not against the payment of any duties and taxes, of stores for consumption to be served at functions organized on board, which are also attended by persons other than the passengers and the crew.

3. In some countries, the following quantities of alcoholic beverages and tobacco products are allowed to be issued for consumption on board by the passengers and the crew during the stay of a vessel in the Customs territory:

1/4 l of spirits, 3/4 l of wine and 1 l of beer; and
40 g of tobacco or an equivalent amount in cigars and cigarettes,

per person per day. Certain limits may be fixed concerning the overall quantities of such products to be issued at one time, for example, eight days' allowance of tobacco products and four days' allowance of alcoholic beverages.

Commentary

¹ Countries which apply this condition need to enter a reservation to Standard 9.

10. Recommended Practice

The Customs authorities should allow stores for consumption to be issued for the crew whilst the ship is undergoing repairs in a dock or shipyard, provided that the stay in a dock or shipyard is considered to be of reasonable duration¹.

Commentary

¹ This provision is applicable in cases where the stay in a dock or shipyard is considered to be sufficiently short to justify leaving the crew on board during the repairs.

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¹	In the Annex, the term "vessels" also covers hovercraft.
²	The Annex does not cover fodder and other feed for animals being transported which are considered as stores in some countries. Relief from import duties and taxes and from economic prohibitions or restrictions for such goods is provided for in Recommended Practice 36 of Annex B.2.

(a)	the term " stores " means: -- stores for consumption; and -- stores to be taken away;

(b)	the term " stores for consumption " means: -- goods intended for consumption by the passengers and the crew on board vessels, aircraft or trains, whether or not sold; and -- goods necessary for the operation and maintenance of vessels, aircraft or trains including fuel and lubricants but excluding spare parts and equipment; which are either on board upon arrival or are taken on board during the stay in the Customs territory of vessels, aircraft or trains used, or intended to be 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;
(c)	the term "stores to be taken away" means goods for sale to the passengers and the crew of vessels and aircraft with a view to being landed, which are either on board upon arrival or are taken on board during the stay in the Customs territory of vessels and aircraft used, or intended to be 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;
(d)	the term " Customs treatment of stores " means all the facilities to be accorded and all the Customs formalities applicable to stores;
(e)	the term "Customs formalities (1) applicable to stores " means all the operations to be carried out by the person concerned and by the Customs in respect of stores;
(f)	the term "Customs territory" means the territory in which the Customs law of a State applies in full;
(g)	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 (2), but not including fees and charges which are limited in amount to the approximate cost of services rendered;
(h)	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;
(ij)	the term "person" means both natural and legal persons, unless the context otherwise requires.

¹	The 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.
²	The definition also covers Value Added Tax collected in connexion with the importation of goods.

¹	This Standard excludes discrimination in respect of Customs treatment 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.
²	Standard 4 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.
³	In 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.
	Countries which apply the principle of reciprocity, particularly in respect of the supply of duty- and tax-free stores, will have to enter a reservation to this Standard.