Kyoto Convention

ANNEX B.1.

Annex concerning clearance for home use

Entered into force: 13 July 1977

April 1977

Introduction
Definitions
Principles (provisions 1-2)
Competent Customs offices (provisions 3-4)
The declarant:

(a) Persons entitled to act as declarant (provisions 5-6)

(b) Responsibilities of the declarant (provision 7)

(c) Rights of the declarant (provisions 8-10)

The Goods declaration for home use:

	(a)	Goods declaration form and contents (provisions 11-12)
	(b)	Number of copies to be submitted (provisions 13-14)
	(c)	Documents to be submitted in support of the Goods declaration (provisions 15-17)
	(d)	Amendment of the Goods declaration (provisions 18-19)
	(e)	Withdrawal of the Goods declaration (provision 20)

Lodgement of the Goods declaration:

	(a)	Choice of the office of clearance (provision 21)
	(b)	Time allowed for lodgement of the declaration (provisions 22-24)
	(c)	Periodic lodgement of declarations (provision 25)
	(d)	A Lodgement of the Goods declaration outside the business hours of the Customs office (provisions 26-27)

Acceptance of the Goods declaration (provisions 28-29)
Checking of the Goods declaration (provisions 30-31)

Examination of the goods:

	(a)	Time required for examination of goods (provisions 32-34)
	(b)	Examination of goods outside the business hours of the Customs office (provision 35)
	(c)	Examination of goods at a place other than the Customs office (provision 36)
	(d)	Presence of the declarant at examination of goods (provision 37)
	(e)	Extent of examination of goods (provisions 38-40)
	(f)	Sampling by the Customs (provision 41)

Errors in the declaration (provisions 42-44)
Assessment of import duties and taxes:

(a) Factors to be taken into consideration (provision 45)

(b) Rates of import duties and taxes applicable (provisions 46-47)

Payment of import duties and taxes:

	(a)	Methods of payment accepted (provisions 48-49)
	(b)	Date and place of payment (provision 50)
	(c)	Deferred payment of import duties and taxes (provisions 51-55)
	(d)	Proof of payment (provision 56)
	(e)	(f) Interest on arrears (provision 58)

Release of goods (provisions 59-62)
Destruction or abandonment of goods (provisions 63-64)
Information concerning clearance for home use (provision 65)

Appendices:

Lay-out key for Goods declaration for home use (Appendix I)
Notes (Appendix II)

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

V. Provisions studies in detail and reproduced in Volume IV

I.--Text and Commentary *

* Annex B. 1. was adopted by the Permanent Technical Committee at its 87th/88th Sessions in March 197S. The Annex has been incorporated in the Kyoto Convention by decision of the Council, taken on 22 May 1975 at its 45th/46th Sessions held in Buenos Aires (Argentina). It entered into force on 13 July 1977. Previously, the Council had an International Customs Norm on this subject, entitled " learance of goods for home use -- The declarant and the declaration of goods", which was issued in 1963.

Introduction

Goods which are imported outright for use or consumption within the Customs territory must be declared for home use.

They may be declared for home use either directly on importation or after another Customs procedure such as warehousing, temporary admission or Customs transit.

The main obligations to be fulfilled by the declarant to obtain the clearance of goods for home use are the lodgement of a Goods declaration with supporting documents (import licence, certificates of origin, etc.) and the payment of any import duties and taxes chargeables. Under certain conditions the payment of import duties and taxes may be deferred. Where appropriate, security may be required by the Customs to guarantee payment of the import duties and taxes.

The measures taken by the Customs in connexion with clearance are: checking of the Goods declaration and accompanying documents, examination of the goods, assessment and collection of import duties and taxes and release of the goods. Depending upon national administrative practice, these operations may be carried out in a different order from that shown above. The Customs may also be responsible for obtaining the data required for trade statistics and for the enforcement of other statutory or regulatory provisions relating to the control of imported goods. Other competent authorities may also carry out certain controls (veterinary, health, phytopathological, etc.) on goods declared for home use.

The provisions of this Annex apply to the various formalities and measures (Customs formalities) involved in the clearance of goods for home use, whatever their mode of importation.

The Annex does not apply to the clearance for home use of goods imported by post or carried in travellers' baggage.

Definitions

For the purposes of this Annex:

(a) the term "clearance for home use" means the Customs procedure which provides that imported goods may remain permanently in the Customs territory¹. This procedure implies the payment of any import duties and taxes chargeable and the accomplishment of all the necessary Customs formalities² ³;

(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;

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

(e) the term "checking of the Goods declaration" means the action taken by the Customs to satisfy themselves that the Goods declaration is properly made out, that the supporting documents required are attached and that they fulfil the conditions laid down as to their authenticity and validity;

(f) the term "examination of goods" means the physical inspection of goods by the Customs to satisfy themselves that the nature, origin, condition, quantity and value of the goods are in accordance with the particulars furnished in the Goods declaration;

(g) the term "assessment of import duties and taxes" means the determination of the amount of import duties and taxes payable;

(h) the term "release" means the action by the Customs to permit undergoing clearance to be placed at the disposal of the persons concerned;

(ij) 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;

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

Commentary

¹ Although the goods are allowed to remain permanently in the Customs territory, there is nothing to prevent reexportation, for example with a view to obtaining drawback.

² 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.

³ Goods cleared for home use may still be subject to post-importation control by the Customs, e.g. to check end use.

The definition of the term "import duties and taxes" also covers Value Added Tax collected in connexion with the importation of the goods.

This definition covers all the various declarations required by the Customs in the context of clearance for home use.
The "checking" referred to in this definition involves a detailed scrutiny not to be confused with the formal scrutiny associated with the acceptance of the Goods declaration. However, this checking does not include the physical examination of the goods.

Origin is also checked by means of the documentary evidence submitted.

In addition to valuation control on the basis of the supporting documents produced, physical inspection of the goods may establish their intrinsic value.

The declarant may be authorized to work out the assessment himself.

Release is unconditional when the goods are freed from any Customs restrictions. It is conditional when the goods remain subject to certain restrictions (see also commentary ³ to definition (a)).

Principles

1. Standard

Clearance for home use shall be governed by the provisions of this Annex¹ .

Customs authorities are free to enact rules on aspects of clearance for home use not covered by specific provisions of this Annex.

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

Commentary

¹ There is no obligation on States 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).

2. Standard

National legislation¹ shall specify the conditions to be fulfilled and the Customs formalities to be accomplished for the clearance of goods for home use.

Notes

1. National legislation may include prohibitions and restrictions in respect of the importation of certain categories of goods.

2. The obligations to be fulfilled to effect the clearance of goods for home use include the lodgement of a Goods declaration², the production of supporting documents and the payment of any import duties and taxes chargeable.

Commentary

¹ See commentary on Article 3 of the Convention.

² Oral declaration may be authorized for goods not exceeding a certain value.

Competent Customs offices

3. Standard

The Customs authorities shall designate the Customs offices at which goods may be cleared for home use. In determining the competence of these offices¹ and their hours of business, the factors to be taken into account shall include the particular requirements of trade and industry².

Notes

1. The Customs authorities may allow goods to be cleared for home use at inland Customs offices.

2. The competence of certain Customs offices may be restricted in terms of the mode of transport used or to specified categories of goods or to goods consigned to a specified region (e.g. the frontier zone or an industrial zone).

3. The Customs authorities may require that certain categories of goods (e.g., diamonds, antiques, works of art) be cleared for home use at Customs offices designated for that purpose.

Commentary

¹ Generally speaking, the declarant may clear the goods at any competent office but there may be exceptions to this rule, particularly in the cases referred to in Note 3 to this Standard.

² In determining hours of business, the particular requirements of trade and industry are not the only factors to be taken into account by the Customs the requirements of administrative organization may also be taken into consideration.

4. Recommended Practice

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

The declarant

(a) Persons entitled to act as declarant

5. Standard

National legislation shall specify the conditions under which a person is entitled to act as declarant¹ ².

Note

The declarant need not be the owner of the goods; he may be, for example, the carrier, the forwarding agent, the consignee or an agent approved by the Customs.

Commentary

¹ This provision is intended to enable the public to know exactly which persons are entitled to declare goods for home use.

² The right to declare goods for the account of third parties may be restricted to persons who can show that they have the desired administrative background.

6. Recommended Practice

Any person having the right to dispose of the goods¹ should be entitled to act as declarant.

Note

The Customs authorities may require the declarant to establish his right to dispose of the goods².

Commentary

¹ The expression "any person having the right to dispose of the goods" should not be taken as referring solely to the owner of the goods but should be interpreted as broadly as is possible in accordance with national legislation. Hence this provision is not intended to restrict to certain categories of persons the right to declare goods for home use. Clearly, the right of Customs agents to declare goods on behalf of third persons is not restricted by this Recommended Practice.

² The following documents are normally accepted as establishing the right to dispose of the goods: waybill, bill of lading, despatch note, loading receipt, commercial invoice.

(b) Responsibilities of the declarant

7. Standard

The declarant shall be held responsible to the Customs authorities for the accuracy of the particulars given in the Goods declaration and payment of the import duties and taxes.

(c) Rights of the declarant

8. Standard

Before lodging the Goods declaration the declarant shall be authorized, under such conditions as may be laid down by the Customs authorities¹:

(a) to inspect the goods and

(b) to draw samples.

Commentary

¹ The Customs authorities may require that the inspection of goods and drawing of samples take place under Customs supervision.

² The right to declare goods for the account of third parties may be restricted to persons who can show that they have the desired administrative background.

9. Recommended Practice

The Customs authorities should not require a separate Goods declaration for home use in respect of samples allowed to be drawn under Customs supervision, provided that such samples are included in the Goods declaration for home use concerning the relevant consignment and that this declaration is lodged within the prescribed time limit ¹.

Commentary

¹ The Goods declaration concerning the relevant consignment is normally lodged soon after the samples are drawn (see also Standard 22).

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	(a)	Persons entitled to act as declarant (provisions 5-6)
	(b)	Responsibilities of the declarant (provision 7)
	(c)	Rights of the declarant (provisions 8-10)

	(a)	Factors to be taken into consideration (provision 45)
	(b)	Rates of import duties and taxes applicable (provisions 46-47)

(a)	the term "clearance for home use" means the Customs procedure which provides that imported goods may remain permanently in the Customs territory¹. This procedure implies the payment of any import duties and taxes chargeable and the accomplishment of all the necessary Customs formalities² ³;
(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;
(d)	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 "declarant" means the person who signs a Goods declaration or in whose name it is signed;
(e)	the term "checking of the Goods declaration" means the action taken by the Customs to satisfy themselves that the Goods declaration is properly made out, that the supporting documents required are attached and that they fulfil the conditions laid down as to their authenticity and validity;
(f)	the term "examination of goods" means the physical inspection of goods by the Customs to satisfy themselves that the nature, origin, condition, quantity and value of the goods are in accordance with the particulars furnished in the Goods declaration;
(g)	the term "assessment of import duties and taxes" means the determination of the amount of import duties and taxes payable;
(h)	the term "release" means the action by the Customs to permit undergoing clearance to be placed at the disposal of the persons concerned;
(ij)	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;
(k)	the term "person" means both natural and legal persons, unless the context otherwise requires.

¹	Although the goods are allowed to remain permanently in the Customs territory, there is nothing to prevent reexportation, for example with a view to obtaining drawback.
²	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.
³	Goods cleared for home use may still be subject to post-importation control by the Customs, e.g. to check end use.
	The definition of the term "import duties and taxes" also covers Value Added Tax collected in connexion with the importation of the goods.
	This definition covers all the various declarations required by the Customs in the context of clearance for home use.
	The "checking" referred to in this definition involves a detailed scrutiny not to be confused with the formal scrutiny associated with the acceptance of the Goods declaration. However, this checking does not include the physical examination of the goods.
	Origin is also checked by means of the documentary evidence submitted.
	In addition to valuation control on the basis of the supporting documents produced, physical inspection of the goods may establish their intrinsic value.
	The declarant may be authorized to work out the assessment himself.
	Release is unconditional when the goods are freed from any Customs restrictions. It is conditional when the goods remain subject to certain restrictions (see also commentary ³ to definition (a)).

¹	See commentary on Article 3 of the Convention.
²	Oral declaration may be authorized for goods not exceeding a certain value.

¹	Generally speaking, the declarant may clear the goods at any competent office but there may be exceptions to this rule, particularly in the cases referred to in Note 3 to this Standard.
²	In determining hours of business, the particular requirements of trade and industry are not the only factors to be taken into account by the Customs the requirements of administrative organization may also be taken into consideration.

¹	This provision is intended to enable the public to know exactly which persons are entitled to declare goods for home use.
²	The right to declare goods for the account of third parties may be restricted to persons who can show that they have the desired administrative background.

¹	The Customs authorities may require that the inspection of goods and drawing of samples take place under Customs supervision.
²	The right to declare goods for the account of third parties may be restricted to persons who can show that they have the desired administrative background.