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UCC Article 324/SDBA Inward processing/CWH - GTS 10.1

If we wish to use SDBA/article 324 discharge, the UCC stipulates that items have to be put into IP as the first procedure ("the second procedure cannot be IP") . Our business wish to use this option but the ruling is restricting every other part that wouldn't ordinarily undergo processing, not to mention the problems aligning stock.

We do not want everything to go to IP as a first entry as we have many items that are exported or depart to the EU without being altered so moving items from IP to CWH to store them would be more labour intensive in GTS, not to mention how reversals could be managed. We are not being offered an alternative option by our Customs Officers.

We are at an impass as it turns our existing procedures upside down, so to speak. Has anyone come across any companies that manage similar procedures successfully under UCC and can offer some advice to us?

Many thanks

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2 Answers

  • Feb 13, 2018 at 01:33 PM

    Hi Emily,

    Although your question seems not directly related to GTS, I'm interested to know more about it.

    I get the feeling that you have been mis-advised, but first would like to read the regulation for myself. From what I can see, the UCC (Regulation 952/2013) doesn't have an Article 324, but the Implementing Regulation 2447/2015 does have such an Article, covering "Special cases of discharge of the inward processing IM/EX procedure" - is that what you are referring to? If so, which paragraph are you specifically looking at? I can't see anything of the sort that you mention there.

    Thanks for your further information.


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  • Feb 14, 2018 at 01:04 PM

    Thank you, Dave, for your reply.

    Previously (for items not requiring processing i.e. spares) we would have sent the CWH declaration to CHIEF and if no processing was involved the item would be exported or removed as a domestic issue in accordance with SAP movements. Items relevant to processing would have created (based on SAP movements) an internal GTS declaration (CWH ->IP but not sent to CHIEF) then eventually the item would be exported (with an IP closing portion) or moved to FC and declared.

    We now have ‘separate authorisation’ rather than ‘integrated authorisations’ and Customs warehouse requirements waiving the SDI [Article 167 (2)(a) UCC] mean that EIDR cannot be used for the removal of goods from the warehouse as it fails article 183 (b) DA.

    Our 2 options from Customs officers are below; I’ve tried to make it less wordy without losing the thread of it.

    Option 1:

    All imports declared to customs warehouse are declared using a full declaration procedure. Article 183 DA waives the obligation to submit a supplementary declaration for the movement of goods between authorisations held by the same entity. This is allowable as the goods were declared to the customs warehouse using a full dec.

    Once in the warehouse the goods may be moved to other special procedures with notation in the records under article 183 DA.

    This is our current state of working. The full declarations are being completed by our freight forwarder then the C88/E2 is received and the goods are released from port. In GTS, the entry to warehouse is completed after the goods receipt but these don’t get sent to CHIEF anymore. The rest of our processing stays the same but for our freight forwarder to carry out this work is proving a large overhead both in labour and cost.

    Option 2

    All imports are declared to the IP special procedure using the simplified declaration procedure and can then be moved to customs warehouse by EIDR [Article 183 DA]. When removed from the warehouse to process, the requirement to submit a declaration is waived under Article 183 DA. The requirements of the process special procedure are that a Bill of Discharge would be required for the goods in IP even though it is for such a short period prior to movement to warehouse which will discharge the initial IP.

    If we want to entertain discharge by anticipation (.gov notice 3001 – Special procedures for the Union Customs code):

    Section 2.11

    the first special procedure is discharged by placing the goods under the second special procedure (other than EnU or IP) by making an entry in the records

    IP cannot be the second procedure. We are informed that we cannot continue as before and we should use option 2, above, to be able to discharge IP early.

    Hence we are going round in circles and would very much appreciate any advice that anyone may have.

    Thank you.

    Article 183

    Waiver from the obligation to lodge a supplementary declaration (Article 167(2)(b) of the Code) The obligation to lodge a supplementary declaration shall be waived for goods for which a special procedure other than transit has been discharged by placing them under a subsequent special procedure other than transit provided that all of the following conditions are fulfilled: L 343/86 Official Journal of the European Union 29.12.2015 EN (a) the holder of the authorisation of the first and subsequent special procedure is the same person; (b) the customs declaration for the first special procedure was lodged in the standard form, or the declarant has lodged a supplementary declaration in accordance with the first sub-paragraph of Article 167(1) of the Code in respect of the first special procedure; (c) the first special procedure is discharged by the placement of goods under a subsequent special procedure other than end-use or inward processing, following the lodging of a customs declaration in the form of an entry in the declarant's records .

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