I. Read the article and give Russian equivalents for the words and phrases in bold.

1.Processing under Customs Control (PCC), is an EU customs duty relief scheme. It allows goods to be imported from outside the European Union for processing operations, which change their nature or state, without being subject to import duties or certain commercial policy measures. Duty becomes payable when the finished product is put on the Community Market. The duty is then payable on the finished product as if it had been imported directly. By placing imported goods under Processing under Customs Control arrangements for further processing in the European Community, you may be able to obtain relief from customs duty, agricultural levies, and other Common Agricultural Policy charges when you declare the processed goods to free circulation. You may be able to pay a lower amount of customs duty when the goods are released to free circulation if the duty rate applicable to the processed products is less than the rate applicable to the imported goods.

To determine whether you can obtain a duty advantage from using PCC you will need to check the Tariff classification of your imported goods and processed products and compare the duty rate applicable to them. However in calculating the duty advantage you will need to take into account the customs duty on the processed products will be based on the customs value of those products, if the value will include any processing costs incurred in the European Community.

In order to qualify to use PCC, the rate of duty on your finished product must be lower than that applicable to the import goods.

2. Who can use PCC?

• Individuals, partnerships or corporate bodies established within the European Community, acting on their own behalf or representing a non Community body;

• Individuals, partnerships or corporate bodies established outside the European Community provided imports are of a non-commercial nature.

How PCC works

Using the PCC arrangements you can:

• Import goods from outside the EU with all customs charges suspended;

• Process them in your own premises or have them processed for you; and

• Pay duty at the rate which applies to the processed products (rather than the import goods) when you put them into free circulation.

4. Eligible Processes:

Revenue can authorise processes only where:

• The imported goods can be identified in the processed products;

• It would not be economically viable to restore the processed goods to their original condition;

• Use of the procedure enables processing activity to be created or maintained in the Community without harming the essential interests of Community producers of similar goods.

OPERATION OF THE PROCEDURE

Security.

Under PCC, security in the form of a bond must be provided to cover the duty suspended on the import goods. As the execution of a bond can take some time, temporary cover using what is referred to as a cover note must be arranged and presented to Revenue before your authorisation can issue. Cover notes are normally issued by an Insurance Company or Bank. The security must be for a minimum amount of €7,000. There is a strict legal wording for cover notes and this is available from Economic Procedures Section.

Supervision / Audit

Traders must be able to account for all goods entered to the PCC procedure and be able to provide relevant information to a Revenue Official if required. Your accounts and the operation of your authorisation may be subject to a Revenue Audit at any time. The Automated Entry Processing system includes an automatic verification process for authorised PCC traders. This process verifies a trader’s right to use a procedure code by cross-referencing their data against stored authorisation data. This cross-referencing also applies to the Tariff codes on the authorisation. Any deviation from the data included on the authorisation will result in AEP rejecting the entry. In the case of single community-wide authorisations, overall control rests with the issuing Member State (MS). However, each MS on the authorisation may put in place specific controls for the procedure taking place in their administration.

Date: 2016-01-14; view: 923