ANNEX F.7.

concerning the carriage
of goods coastwise

Entered into force: .....

June 1982


TABLE OF CONTENTS


I.   Text and Commentary

     -    Introduction     5
     -    Definitions      6
     -    Principles (provisions 1 - 7)   7
     -    Loading and unloading (provisions 8 - 14)      9
     -    Documentation (provisions 15 - 18) 10
     -    Security (provisions 19 - 24) 11
     -    Customs control (provisions 25 - 28)    13
     -    Information concerning the
          carriage of goods coastwise procedure (provision 29)   14

II.  Entry into force

     -    Contracting Parties having accepted the Annex     15

III. Reservations

     -    Contracting Parties having entered reservations   17
     -    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

It is frequently desirable for trade or transport reasons to carry
goods in a vessel from one place in a Customs territory to another
place in that territory. In some instances due, for example, to the
geographical situation or to the nature of the goods concerned,
transport by vessel in fact constitutes the only viable method of
carrying the goods to their destination.

For a variety of reasons it is necessary for the Customs to maintain
control over the carriage of goods coastwise even though the cargo
being transported may consist entirely of goods in free circulation.
In particular, control is necessary to ensure that unauthorised goods
such as unentered foreign goods are not taken on board illegally
during the voyage and are not subsequently unloaded in the Customs
territory without the proper formalities for such goods being
accomplished. Equally, it is necessary to ensure that goods in free
circulation are not offloaded for export or landed abroad during the
voyage coastwise since such goods, although they may be disposed of
without Customs restrictions within the Customs territory, may
nevertheless be liable to export duties and taxes should they be
exported or may be the subject of export prohibitions or restrictions.

The Customs documentary and control requirements in connection with
the carriage coastwise of cargo consisting entirely of goods in free
circulation are fairly simple. If unentered imported goods are being
carried, however, or if the vessel is transporting goods other than
coastwise cargo, additional or more stringent controls are often
necessary.

This Annex deals with the carriage coastwise of goods in free
circulation and the carriage coastwise of unentered imported goods
[page 6]
being transported in a vessel other than the importing vessel in which
they arrived in the Customs territory. It does not apply to the
carriage coastwise of unentered imported goods still on board the
vessel in which the goods arrived in the Customs territory as a
continuation of the inward voyage, nor to the carriage coastwise of
goods which have already been placed under another procedure such as
Customs transit or outright exportation.


Definitions

For the purposes of this Annex:

(a)  the term " the carriage of goods coastwise procedure " means the
Customs procedure under which certain goods (1) are loaded on board a
vessel at a place in the Customs territory and are transported (2) to
another place in the same Customs territory where they are then
unloaded;

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

(c)  the term " goods in free circulation " means goods which may be
disposed of without Customs restrictions;

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

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

(f)  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; 

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

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

COMMENTARY 

(1)  The transport, as a continuation of the inward voyage, of
unentered imported goods still on board the vessel in which they
arrived in the Customs territory is dealt with in Annex A.1.

(2)  The scope of the definition is broad and also provides for the
various types of operations which a number of countries allow under
their national arrangements covering, e.g. a situation where the
goods, to be eligible for the carriage of goods coastwise procedure,
must be taken out of the Customs territory and brought back again.


Principles


1.   Standard

The carriage of goods coastwise procedure shall be governed by the
provisions of this Annex (1).

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).

     Customs authorities are free to enact rules on aspects of the
carriage of goods coastwise 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 legislation (1) shall specify the conditions to be fulfilled
and the formalities to be accomplished for the purposes of the
carriage of goods coastwise procedure.

Notes     1.   In some countries the national legislation relating to
the carriage of goods coastwise procedure applies also to the carriage
of goods by air subject to suitable modifications.

     2.   National legislation may specify that only vessels owned and
registered in the country may transport goods under the carriage of
goods coastwise procedure.

     3.   National legislation may provide that the carriage of goods
coastwise procedure is applicable only to voyages made within
[page 8]
          certain prescribed geographical limits. It may also specify
that the procedure need not be used in the case of goods being
transported on certain inland waterways.

COMMENTARY

(1)  See commentary on Article 3 of the Convention.


3.   Standard

National legislation shall specify that goods in free circulation v be
transported under the carriage of goods coastwise procedure.


4.   Standard

National legislation shall specify that unentered imported goods be
transported under the carriage of goods coastwise procedure.


5.   Recommended Practice

The Customs authorities should allow goods to be transported under the
carriage of goods coastwise procedure on board a vessel carrying other
goods (1) at the same time.

COMMENTARY

(1)  A vessel could also be carrying, for example, unentered imported
goods which have arrived in the Customs territory in that vessel or
goods which have already been placed under another Customs procedure
such as Customs transit.


6.   Recommended Practice

At the request of the person concerned, and subject to such conditions
as the Customs authorities deem necessary, the latter should allow
goods to be transported under the carriage of goods coastwise
procedure on board a vessel which is to call at a foreign port during
its voyage coastwise.


7.   Recommended Practice

When a vessel transporting goods under the carriage of goods coastwise
procedure is forced to call at a place outside the Customs territory
due to unforeseen circumstances, the Customs authorities should regard
those goods as remaining under the carriage of goods
[page 9]
coastwise procedure provided they are satisfied that the goods are
those which were originally placed under the procedure.

Note A vessel may call at a place outside the Customs territory due,
for example, to force majeure.


Loading and unloading


8.   Standard

National legislation shall specify the places which are approved for
the loading and unloading of goods under the carriage of goods
coastwise procedure and the times during which loading and unloading
may be carried out.


9.   Recommended Practice

At the request of the person concerned, and provided the Customs
authorities are satisfied that the laws and regulations which they are
responsible for enforcing will be complied with, the latter should, in
the case of a vessel conveying only goods in free circulation under
the carriage of goods coastwise procedure, allow such goods to be
loaded or unloaded at any place and at any time.


10.  Recommended Practice

At the request of the person concerned, and for reasons deemed valid
by the Customs authorities, the latter should allow goods under the
carriage of goods coastwise procedure to be loaded or unloaded at a
place other than that normally approved for that purpose even if the
vessel is also carrying unentered imported goods or goods placed under
any other Customs procedure. Any expenses which this entails may be
charged to the person concerned.


11.  Recommended Practice

When a vessel transporting goods under the carriage of goods coastwise
procedure is diverted during the voyage, the Customs authorities
should, at the request of the person concerned and for reasons they
deem valid, allow such goods to be unloaded under the procedure at a
place other than that originally intended. Any expenses which this
entails may be charged to the person concerned.

12.  Standard

When the transport of goods under the carriage of goods coastwise
procedure is interrupted by accident or force majeure, the master or
other person concerned shall be required to take precautions to
prevent the goods from entering into unauthorised circulation and to
advise the Customs or other competent authorities of the nature of the
accident or other circumstance which has interrupted the journey.


13.  Standard

When a vessel transporting goods under the carriage of goods coastwise
procedure is conveying unentered imported goods or goods placed under
any other Customs procedure, the Customs authorities shall allow goods
under the carriage of goods coastwise procedure to be loaded or
unloaded as soon as possible after the arrival of the vessel at the
place of loading or unloading.


14.  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, allow goods under the carriage of
goods coastwise procedure to be loaded or unloaded outside the
business hours of the Customs office even if the vessel is also
carrying unentered imported goods or goods placed under any other
Customs procedure. Any expenses which this entails may be charged to
the person concerned.


Documentation


15.  Standard

Before goods to be transported under the carriage of goods coastwise
procedure are loaded on a vessel, the master or other person concerned
shall present to the Customs authorities a single document (1) giving
details of the vessel, listing the goods to be carried under the
carriage of goods coastwise procedure and stating the port or ports in
the Customs territory at which they are to be unloaded. This document,
once endorsed by the Customs authorities, shall constitute the
authority for the conveyance of the goods under the carriage of goods
coastwise procedure.

Note Goods already placed under another Customs procedure are usually
covered separately by the documents appropriate to the procedure in
question.

COMMENTARY

(1)  The Customs authorities may require copies of this document for
control purposes, for example when there are to be several ports of
call. See also Recommended Practice 18.


16.  Recommended Practice

A general authority to convey goods under the carriage of goods
coastwise procedure should be granted to vessels which trade regularly
between specified places.


17.  Recommended Practice

When a vessel has been granted a general authority, only a list of the
goods to be conveyed under the carriage of goods coastwise procedure
should be required before the goods are loaded.

Note In some countries the list may set out various categories of
goods in separate sections or on separate pages.


18.  Recommended Practice

Before goods are unloaded from a vessel covered by a specific
authority, the master or other person concerned should be required to
present to the Customs authorities only a copy of the document
authorising the conveyance of goods under the carriage of goods
coastwise procedure, on which should be listed the goods to be
unloaded at that port. In the case of a vessel granted a general
authority, only a list of the goods to be unloaded should be required.


Security


19.  Standard

Only when the Customs authorities consider it indispensable shall
security be required in respect of goods in free circulation being
transported under the carriage of goods coastwise procedure.

Note In certain circumstances the Customs may require security in
respect of goods which would be liable to export duties and taxes if
exported.


20.  Standard

The form in which security, if any, is to be provided in respect of
goods conveyed under the carriage of goods coastwise procedure shall
be laid down in national legislation or determined by the Customs
authorities in accordance with national legislation.

Note Security is usually required when unentered imported goods are
transported under the carriage of goods coastwise procedure.


21.  Recommended Practice

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


22.  Standard

The Customs authorities shall determine the amount in which security
is to be provided in respect of goods conveyed under the carriage of
goods coastwise procedure.


23.  Standard

When security is to be provided to ensure that the obligations arising
from several operations under the carriage of goods coastwise
procedure will be fulfilled, the Customs authorities shall accept a
general security.


24.  Recommended Practice

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

Customs control


25.  Standard

Customs control of goods conveyed under the carriage of goods
coastwise procedure shall be reduced to the minimum necessary to
ensure compliance with the laws and regulations which the Customs are
responsible for enforcing.


26.  Recommended Practice

The Customs authorities should require goods in free circulation being
transported under the carriage of goods coastwise procedure to be
segregated from other goods carried on board the vessel only when they
consider it to be necessary for control purposes.


27.  Recommended Practice

When a vessel which is to call at a place or places outside the
Customs territory has been authorised to convey goods under the
carriage of goods coastwise procedure, those goods should be sealed
only at the request of the person concerned or when the Customs
authorities consider sealing to be necessary to ensure that goods
cannot be removed therefrom or other goods added thereto without this
being readily apparent.


28.  Recommended Practice

Where the Customs authorities exercise their right to examine and
search vessels transporting goods under the carriage of goods
coastwise procedure or to carry out documentary checks, they should
limit the extent of the examination or checks to that deemed necessary
to ensure compliance with the laws and regulations which the Customs
are responsible for enforcing.

Note The master of a vessel which transports goods under the carriage
of goods coastwise procedure may be required to keep a cargo book
containing a record of the vessel, its movements and the cargo carried
and to produce this to the Customs authorities for inspection at their
request.


Information concerning
the carriage of goods coastwise procedure


29.  Standard

The Customs authorities shall ensure that all relevant information
concerning the carriage of goods coastwise procedure is readily
available (1) to any person interested.

COMMENTARY

(1)  This information can he made available through the usual
information media such as regular publications (e.g. official gazettes
and notices) and by arranging for the information to be given promptly
upon request at a competent Customs offices.

*     *     *


II.-ENTRY INTO FORCE

Contracting Parties having accepted the Annex,
with dates of entry into force

        Australia      .....
        Kenya          .....
        New Zealand    .....



III.-RESERVATIONS

Contracting Parties having entered reservations

Contracting Parties Provisions reserved

        Australia   6 - 7
        Kenya       6 - 27



IV.-ALPHABETICAL INDEX

     Provisions

Accident or force majeure     12
Calls at foreign ports     6,   7, 27
Conditions to be fulfilled      2
Customs control
- examination and search 28
- to be reduced to the minimum necessary     25
- segregation of goods   26
- sealing of goods  27
Documentation
- a single document to be required before loading 15
- only a copy of that document to be required on unloading  18
- only a list of the goods to be required before loading or unloading
  when the vessel has been granted general authority   17, 18
General authority   16
Goods eligible   3,   4,   5
Information concerning the carriage of goods coastwise procedure 29
Loading and unloading
- approved places and times     8
- at a place other than that approved   10
- at a place other than that originally intended  11
[page unnumbered]
- at any place and at any time for goods in free circulation       9
- outside business hours of Customs office   14
- to be commenced as soon as possible after the arrival of the vessel 13
Principles       1 to 7
Security
- amount  22, 24
- choice  21
- form    20
- general security  23
- to be required only when deemed indispensable   19

Top of this page

Return to Standards & Recommendations