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[Remission and Repayment of Tariff and Etc.]
The remission of duties means the procedure that nullifies duties such as tariff that are not yet paid after the imposition of, or exempt the duties under special conditions, to the goods that were levied tariffs or other duties for importing.
For the remission of duties gives exemptions to the duties that were supposed to be levied under the special conditions, it is separated from the case of tariff rate that is originally 0%.
On the other hand, the term, repayment, means to return the duties such as tariff that already paid wholly or partially.
The repayment has the two following types:
① To the duties such as tariff that are paid when importing raw materials to the EU territory, the repayment for the original purpose to refund the paid duties for the said raw materials to be exported from the EU territory again, after the processing phase;
② The repayment to refund the duties paid for imported goods, but they are found as miscalculated, and/or the duties paid for the goods violated the contract, not the proposed goods.
Hereafter described is mainly upon the repayment that is referred to the category ② above, and the other one for the category ① shall be explained in the processing trade part.
The cases of repayment that refund the paid duties and/or exempt the duties to import goods to the EU member states are occurred in various areas as the followings, which are similar to those of other countries outside the EU territory:
■ The System of EU Remission of Duties
EU regulates the remission and limitation of duties by establishing the EU Community Customs Code(CCC) and implementing provisions, and additional regulations to the system of the remission of duties in each member state, and the specific application and implementation for such remissions are entrusted to the competent authorities of each member state.
The EU regulations on the remission of duties are the followings:
ㅇ The article 236 ~ 243 in the EU CCC (CCC (EEC) No 2913/92)
ㅇ The article 877 ~ 912 in the EU CCIP (CCIP (EEC) No 2454/93)
ㅇ The implementing provisions on the EU remission of duties (COUNCIL REGULATION (EC) No 1186/2009)
■ Illegal Imposition and Remission and Repayment (Article 236 in CCC)
In case that duties were not legally or mistakenly levied, the remission shall be granted to such duties and, if any duty already paid, the repayment of the amount of such duties shall be granted. However, in case that the duties were not legally paid by the deliberate action by the person concerned, no repayment or remission shall be granted.
To be granted the repayment or remission due to such reasons, an application must be submitted to the competent customs office within a period of three years from the date on which such duties are levied. However, the said period shall be extended if the person concerned provides the evidence that he could not submit the application within the said period due to unforeseeable circumstances or force majeure.
Once the customs office itself recognized that such paid duties were not legally owed, the corresponding repayment or remission of duties shall be granted on its own initiative without any additional declaration by the debtor.
■ Invalidation and Repayment of Customs Declaration (Article 237 in CCC)
The repayment shall be granted if duties were already paid and the customs declaration is invalidated. In this case, the repayment is only granted when the person concerned submit an application within the period laid down for the application for invalidation of the customs declaration.
■ Remission and Repayment of Illegal Goods (Article 238 in CCC)
ㅇ The remission(before the payment) or repayment(after the payment) shall be granted to imported goods that are found as defective and/or do not comply with the terms of import contract on the receipt of the import declaration, or during the import clearance. The defective goods mean, at this point, the goods that are damaged prior to the import clearance.
ㅇ In this case, the requirements of remission or repayment are the followings:
1) The goods not used or did not comply with the terms of contract. However, the case that the goods are used to attest the determination on whether they are defective is excluded.
2) The goods are re-exported from the EU customs territory to foreign countries.
However, if any request by the person concerned, the competent customs authorities can allow the destruction of the said goods in lieu of exporting them, and/or the movement of the goods under the external transit procedures or the customs warehousing procedures or into the export free zone or free warehousing, for the purpose of re-exportation.
ㅇ No remission or repayment shall be granted in respect of goods, before being declared to customs declaration, were imported temporarily for testing. However, such remission or repayment shall be granted if any defective product or product did not comply with the terms of the contract was not detected in the course of such test..
ㅇ To be granted the remission or repayment of duties, an application must be submitted to the competent customs authorities within the period of 12 months from the date on which such duties are levied to the person concerned. However, this period can be extended if any unforeseeable or duly justified case is confirmed by the said customs authorities.
■ Inward or Outward Processing and Remission
Inward processing means to import raw materials from foreign countries to the EU territory and, after the processing, export the said materials from the EU territory again, on the other way, outward processing means to export raw materials from the EU territory and, after the processing, import the materials to the EU territory.
Duties for importing raw materials, to the inward processing, can be suspended under the condition that the permission shall be granted preliminarily from the competent customs authorities, and the said suspended duties shall be conclusively exempted if the materials are re-exported to the foreign countries after the processing.
To the outward processing that re-imports articles, such duties are remitted as mush of the ratio of raw materials exported from the EU territory.
■ Temporary Importation and Remission
Temporary importation procedures mean the system that if goods imported to the EU territory are re-exported to foreign countries with no specific transformation or modification except the normal depreciation, the total or partial relief from such import duties can be granted while having no restriction to the commercial policy measures, using the customs territory of the EU Community.
The competent customs authorities give the permission to the temporary importations by an application of the person who uses the goods or arranges for them to be used.
The competent customs authorities sets the period related to the temporary importations, which is necessary for the re-exportation of temporary imported goods or other necessary measures, and is for 24 months as maximum, and some special cases are exceptional.
However, the customs authorities may, at the request of the person concerned and within reasonable limits, extend such periods in order to permit the authorized use.
Generally, the import declaration of goods to the temporary importation procedures, can be implemented at the proposed customs offices to acquire the authorization and, at this point, the duty free ATA carnet must be submitted.
The temporary importation procedures are operated by dividing into the procedures of the total or partial remission of import duties and, to the remission scope, the requirements to use are determined by the EU tariff commission.
■ Remission and Repayment by Other Special Circumstances (Article 239 in CCC)
ㅇ Import or export duties may be repaid or remitted in situations other than those referred to the cases written above:
① Procedures and/or requirements determined by the Committee.
② No duty can be levied from circumstances in which no deception or obvious negligence may be attributed to the person concerned.
ㅇ The application for such remission or repayment must be submitted to the competent customs authorities within the period of 12 months from the date on which the amount of such duties was communicated to the debtor. However, the said customs authorities may extend such periods in duly justified exceptional circumstances.
※ Relevant Web-Site
If such remission of duties is occurred for special purposes, the person concerned is responsible for providing relevant evidences to the competent authorities, and must fulfill the requirements for such remission.
In such circumstances, only the competent authorities of the EU member states can allow the remission of duties.
1. Cases on the Remission of Private Properties
☉ In case where the belongings accompanied any person whose housing is situated in a third country for over the period of consecutive 12 months, moves his or her housing into one of the EU member state.
☉ In case where a person who can submit the certificate of marriage, and whose housing is situated in a third country for over the period of consecutive 12 months, imports any private property of him or her to the EU territory for the said marriage.
☉ Private properties inherited from an EU resident
☉ School outfits, educational materials and/or furniture imported to the EU territory for studying.
2. Goods, Non-Commercial Product and Capital Goods of Negligible Values belong to Traveller's Personal Luggage
☉ Goods of negligible value
☉ Non-commercial goods sent directly from a third country to the Community for personal purposes - Please refer to the followings:
[Consignments sent by one private individual to another]
Applicable act : The article 25, 26 and 27 in the EC No 1186/2009 on the reliefs from customs duty
Any consignment sent by one private individual to another from a third country to the Community must fulfill the following requirements to be granted the reliefs from customs duties.
1) Non-Commercial Nature
Goods exclusively for the personal use of the consignee or his family, which do not, by their nature, frequency or quantity, reflect any commercial intent.
2) Price per Consignment
The value of goods of less than 45 EUR is only granted the reliefs from customs duties.
※ Every goods is granted the reliefs from customs duties, which do not exceed of 45 EUR as non-commercial goods, except cigarettes, alcohols and perfumes. (The requirements referred to the article 1) and 2) would be sufficient)
3) Quantity Limitation
The following quantity limitations shall be applied to the consignments such as cigarettes, alcohols and perfumes besides the requirements written above.
ㅇ 50 cigarettes,
ㅇ 25 cigarillos (cigars of a maximum weight of three grams each),
ㅇ 10 cigars,
ㅇ 50 grams of smoking tobacco;
② Alcohols and Alcoholic Beverages
ㅇ Distilled beverages and spirits of an alcoholic strength by volume exceeding 22 % volume; non-denatured ethyl alcohol of 80 % volume and over: one litre,
ㅇ Distilled beverages and spirits, and aperitifs with a wine or alcoholic base, tafia, saké or similar beverages, of an alcoholic strength by volume not exceeding 22 % volume; sparkling wines, liqueur wines: one litre, or a proportional assortment of these different products,
ㅇ Still wines : two litres;
③ Perfumes and Toilet Waters
ㅇ Perfumes : 50 grams, or
ㅇ Toilet waters : 0.25 litre.
☉ Capital goods and other equipment belonging to undertakings which definitively cease their activity in a third country and move to the customs territory of the Community.
☉ Goods belong to a traveller's personal luggage, which is granted the reliefs from duties, arrived from a third country to the customs territory of the Community. - Please refer to the followings:
[The Reliefs from Duties on Traveller's Portable Luggage]
The requirements for the reliefs from duties on any traveller's personal luggage from a third country to the EU Community are the followings: (The reliefs from duties such as tariff, VAT and excise duty)
1) Reliefs from VAT
Duties shall be exempted where VAT is given the same under the relevant regulations of each member state.
2) Monetary Limitation
The limitation per each goods belong to one personal individual, which can be granted the duty reliefs, from a third country to the customs territory of the Community are the followings:
Limited amount of duty reliefs : 300 EUR to the value of goods
- However, 430 EUR to the air or sea trips
- 150 EUR to any person at the age of less than 15
3) Limited Amount on the Duty Reliefs of Tobacco and Alcohol Products
If any goods imported by belonging to a traveller is tobacco and/or alcohol products, the following requirements on the quantity limitation must be fulfilled in addition of the amount limitation explained above, to be granted the duty reliefs:
However, EU member states can regulate the maximum or minimum quantity of the goods given the duty reliefs, which are imported to the EU member states, within the scope of the EU regulations as the followings:
① Quantity Limitation on the Duty Reliefs of Tobacco Products
ㅇ 200 cigarettes or 40 cigarettes
ㅇ 100 cigarillos or 20 cigarillos
ㅇ 50 cigars or 10 cigars
ㅇ 250 g smoking tobacco or 50 g smoking tobacco
ㅇ Not applied to any traveller who is at the age of not more than 17
② Quantity Limitation of the Duty Reliefs of Alcohol Products
ㅇ Within the scope of 1 litre : Alcohol and alcoholic beverages of an alcoholic strength by the volume exceeding 22% volume, and non-denatured alcohols of 80% volume and over.
ㅇ Within the scope of 2 litres : Alcohol and alcoholic beverages of an alcoholic strength by the volume not exceeding 22% volume
ㅇ Not applied to any traveller who is at the age of not more than 17
※ Reference Web-Site
3. Agricultural, Biological, Chemical Medicinal and Drug Products
☉ Agricultural, stock-farming, bee-keeping, horticultural and/or forestry products produced from properties located in a third country adjoining the customs territory of the Community, which are operated by an EU agricultural producer(farmer).
☉ Seeds, fertilizers and products for the treatment of soils and crops imported by agricultural producers(farmers) in the third countries for use in the properties adjoining those countries
☉ Laboratory animals and biological or chemical substances intended for research
☉ Therapeutic substances from human origin and blood-grouping and tissue-typing reagents
☉ Instruments and apparatus intended for medical research, establishing medical diagnosis or carrying out medical treatment
☉ Reference substances for the quality control of medicial products
☉ Pharmaceutical products used at international sport events
☉ Educational, scientific, cultural materials; scientific instruments and apparatus
☉ Goods for charitable or philanthropic organisations: articles intended for the blind and other handicapped persons.
ㅇ For the benefit of handicapped persons.
ㅇ For the benefit of disaster victims.
☉ Honorary decorations or awards, presents received in the context of international relations and goods to be used by monarchs or Heads of State
☉ Goods imported for trade promotion purposes
ㅇ Samples of goods of negligible value - the competent authorities may require that certain articles, to qualify for relief, be rendered permanently unusable by being torn, perforated, or clearly and indelibly marked, or by any other process, provided such operation does not destroy their character as samples.
ㅇ Printed matters and advertising materials
ㅇ Products used or consumed at trade fair or similar event
☉ Consignments such as trademark, pattern and design sent to organisations protecting copyrights or industrial and commercial patent rights
☉ Tourist information literature
☉ Ancillary materials for the stowage and protection of goods during their transport
☉ Litter, fodder, feeding-stuffs for animals during their transport
☉ Fuel and lubricants present in land motor vehicles and special containers imported to the Community
☉ Materials for the construction, upkeep or ornamentation of memorials to, or ceremonies for, war victims
☉ Coffins, funerary urns and ornamental funerary articles