ANNEX H.1.

concerning appeals in Customs matters


Entered into force: 1 December 1983

May 1980


TABLE OF CONTENTS

I.   Text and Commentary

     - Introduction     5
     - Definitions      6
     - Principles (provisions 1-2)     6
     - Reasons for decision or omission (provision 3)      7
     - Scope (provisions 4-5)     7
     - Competent authority for appeals in Customs matters
         (provisions 6-8)      7
     - Form and grounds of appeal (provisions 9-11)   8
     - Time limit for lodgement of appeal (provisions 12-13)    9
     - Withdrawal of appeal (provision 14)       9
     - Consideration of appeal (provisions 15-17)     9
     - Cost of appeal (provision 18) 10
     - Release of goods (provision 19)    10
     - Information concerning appeals in Customs matters
         (provisions 20-21)  10

II.  Entry into force

     - Contracting Parties having accepted the Annex     13

III. Reservations

     - Contracting Parties having entered reservations   15
     - Reservations entered (in alphabetical order of Contracting
         Parties)

IV.  Alphabetical Index

V.   Provisions studied in detail reproduced in Volume IV


I.-TEXT AND COMMENTARY *


* Annex H.1. was adopted by the Permanent Technical Committee at its
97th/98th Sessions in December 1977, and was subsequently amended by
the Committee at its 101st/102nd Sessions in December 1978. The Annex
has been incorporated in the Kyoto Convention by decision of the
Council taken on 16 May 1979 at its 53rd/54th Sessions held in
Canberra (Australia). It entered into force on 1 December 1983.

The Annex is based on an International Customs Norm dealing with the
right of appeal in Customs matters adopted by the Council at its
29th/30th Sessions in June 1967. Also in June 1967 the Council adopted
a Recommendation on the same subject.


Introduction

The situation may arise in which a decision or omission of the Customs
authorities is not acceptable to the person directly affected thereby.
It is therefore desirable that provision be made for the person
concerned to be given, upon request, an explanation of the reasons for
the decision or omission and for there to be a right of appeal to a
competent authority. The competent authority may be the Customs
authorities themselves, an administrative authority, one or more
arbitrators, a special tribunal and, at least in the final instance, a
judicial authority.

The right of appeal ensures protection of the individual against
decisions of Customs authorities which are not in compliance with the
laws and regulations which they are responsible for enforcing and also
ensures protection against omissions of those authorities. At the same
time the review of challenged decisions or omissions by a competent
authority and the verdicts thereon can be a suitable means of ensuring
uniform application of the laws and regulations. Depending upon the
country concerned, these verdicts may, or may not, constitute legal
precedents or official interpretations in respect of like or similar
disputes to be settled in the future.

This Annex covers appeals in all matters relating to the laws and
regulations which the Customs authorities are responsible for
enforcing, in particular matters of tariff classification, origin and
Customs valuation. It does not, however, embrace appeals in penal
matters, appeals against provisions of a general character or appeals
against opinions expressed by Customs authorities which are not
binding in effect.


Definitions

For the purposes of this Annex:

(a)  the term " appeals " means the act by which a person who is
directly affected by a decision or omission of the Customs authorities
and who deems himself to be aggrieved thereby seeks redress before a
competent authority;

(b)  the term " decision " means the individual act by which the
Customs authorities decide upon a matter relating to the laws and
regulations which the Customs are responsible for enforcing;

(c)  the term " omission " means the failure to give a decision
required of the Customs authorities by the laws and regulations within
a reasonable time on a matter duly submitted to them;

(d)  the term " security " means that which ensures to the
satisfaction of the Customs that an obligation to the Customs will be
fulfilled;

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


Principles


1.   Standard

Appeals in Customs matters and the procedure to be followed 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 reservation 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 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 in respect of appeals in
Customs matters.

COMMENTARY

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


Reasons for decision or omission


3.   Standard

The person directly affected by a decision or omission of the Customs
authorities shall be given, as soon as possible after having made a
request to those authorities, the reasons for such decision or
omission.

Notes     1.   The Customs authorities, after considering such
request, may modify their decision or, in respect of an omission, take
a decision.

     2.   The person directly affected may either accept the
explanation given by the Customs authorities or challenge it by
lodging an appeal against the decision or omission.


Scope


4.   Standard

National legislation shall provide for a right of appeal in Customs
matters.


5.   Standard

Any person who is directly affected by a decision or omission of the
Customs authorities shall have a right of appeal. 


Competent authority for appeals in Customs matters


6.   Standard

National legislation shall provide for the right of an initial appeal
to the Customs authorities (1).

Notes     1.   The appeal may be made to the Customs office
responsible for the decision or omission or to a higher authority
within the Customs administration.

     2.   In some countries the initial appeal may be made either to
the Customs authorities or to an authority independent of the Customs
administration, at the option of the person concerned.

COMMENTARY

(1)  The lodgement of an initial appeal with the Customs authority
responsible for the decision or omission can often provide the most
expeditious and least costly method of remedying an erroneous decision
or omission as this authority may, after considering the appeal,
modify its decision or, in respect of an omission, take a decision.


7.   Standard

Where an appeal to the Customs authorities is dismissed, the appellant
shall have the right of a further appeal to an authority independent
of the Customs administration.

Note The constitution and field of jurisdiction of such an independent
authority may vary from one country to another. It may be, for
example, a court of law or a special tribunal with power to settle
Customs disputes, or it may be part of an established arbitration
procedure.


8.   Standard

In the final instance, the appellant shall have the right of appeal to
a judicial authority.

Note In some countries there are administrative tribunals which,
although not strictly part of the judicial system, nevertheless have
full judicial powers and therefore meet the requirements of this
Standard.


Form and grounds of appeal


9.   Standard

The appeal shall be lodged in writing (1) and shall state the grounds
on which it is being made.

COMMENTARY

(1)  The requirement to lodge the appeal in a prescribed form is in no
way inconsistent with the provisions of this Standard.

10.  Recommended Practice

Appeals to the Customs authorities should be accepted when lodged by
telex or by telegram subject to confirmation and compliance with any
requirements which are prescribed.


11.  Standard

Where the appeal is to the Customs authorities they shall not, as a
matter of course, require that any supporting evidence be lodged
together with the appeal but shall, in appropriate circumstances,
allow a reasonable time for the lodgement of such evidence.


Time limit for lodgement of appeal


12.  Standard

Where a time limit is prescribed for the lodgement of an appeal
against a decision of the Customs authorities it shall be such as to
allow the appellant sufficient time to study the contested decision
and to prepare the appeal and shall be no less than 30 days from the
date on which the decision was notified to the appellant.


13.  Recommended Practice

In exceptional circumstances an appeal to the Customs authorities
should be accepted even after the expiry of any prescribed time limit
where the reasons for the late lodgement of such appeal are deemed
valid by them.


Withdrawal of appeal


14.  Standard

The appellant shall be permitted to withdraw the appeal at any stage
of the procedure.


Consideration of appeal


15.  Standard

The competent authority shall give, as soon as possible, its verdict
upon the appeal, and written notice thereof to the appellant.

16.  Standard

Where the competent authority allows the appeal the Customs
authorities shall put the verdict into effect as soon as possible
except in cases where they appeal against such verdict.


17.  Standard

Where an appeal to the Customs authorities is dismissed they shall
advise the appellant, in writing, of the reasons for the verdict and
of his right to lodge any further appeal with an administrative or
independent authority and of any time limit for the lodgement of such
appeal.


Cost of appeal


18.  Standard

The procedure for the lodgement and consideration of an appeal to the
Customs authorities shall cause as little cost to the appellant as
possible.


Release of goods


19.  Standard

Where an appeal is lodged as a result of a dispute arising during the
clearance of goods the Customs authorities shall, upon request,
release the goods provided that:

(a)  such release would not prejudice consideration of the appeal;

(b)  there is no suspicion of fraud;

(c)  the goods are neither considered to be prohibited nor subject to
any import or export restrictions precluding their release; and

(d)  an amount adequate to cover the import or export duties and taxes
assessed by the Customs authorities or security for that amount is
lodged.


Information concerning appeals in Customs matters


20.  Standard

The Customs authorities shall ensure that all relevant information
concerning appeals in Customs matters is readily available to any
person interested (1).

COMMENTARY

(1)  This Standard refers to information concerning the procedural
aspects of appeals in Customs matters whereas Standard 21 contains an
important facility by providing for the dissemination of useful
information concerning principles which arise during the hearing of
appeals.


21.  Standard

The Customs authorities shall ensure that information on matters of
general interest arising from the hearing of appeals is publicised in
an appropriate manner (1).

COMMENTARY

(1)  See commentary on Standard 20.

*     *     *

II.-ENTRY INTO FORCE

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

        Austria             1 December 1983
        Israel              1 December 1983
        Japan               1 December 1983
        Kenya               1 December 1983
        Slovenia            23 February 1993
        Switzerland         25 October 1985
        United States       28 January 1984
        Yugoslavia          1 December 1983


III.-RESERVATIONS

Contracting Parties having entered reservations

Contracting Parties Provisions reserved

        Austria          17
        Japan            5
        Switzerland      7 - 10 - 11 - 13
        United States    13



IV.-ALPHABETICAL INDEX

     Provisions

Appeal to an authority independent of the Customs administration   7
Appeal to a judicial authority       8
Competent authority for appeals in Customs matters       6,   7,   8
Consideration of appeal  15, 16, 17
Cost of appeal 18
Evidence, lodgement of supporting  11
Form and grounds of appeal      9, 10, 11
Information concerning appeals in Customs matters 20, 21
Initial appeal   6
Principles       1,   2
Reasons for decision or omission     3
Release of goods    19
Right of appeal       4,   5
Scope       4,   5
Telex or telegram, appeals lodged by    10
Time limit for lodgement of appeal 12, 13
Withdrawal of appeal     14


V.-PROVISIONS STUDIED IN DETAIL
AND REPRODUCED IN VOLUME IV

          Provisions

- Appeals systems obtaining in Member countries     6 to 8

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