Machine Translated by Google

CUSTOMS UNION, EU CUSTOMS TERRITORY,

COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

CUSTOMS REGIMES, CUSTOMS VALUE, ORIGIN

OF THE GOODS

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

BINDING GOODS TO A CUSTOMS PROCEDURE

Article 4, paragraph 16 of the CDC provides for the following customs regimes:

- release for free circulation

- the transit
- the customs warehouse
- active refinement
- processing under customs control
- temporary admission
- passive perfection
- the export

A combined reading of Articles 4, paragraph 12, and 135 of the updated Code of Civil Procedure indicates that a customs regime must be
understood as one of the regimes to which goods can be placed in accordance with the Code, namely:

a) release for free circulation

(b) special procedures, namely transit, which includes external and internal transit; warehousing, which includes temporary storage, customs
warehousing and free zones; particular use, which includes temporary admission and end-use; processing, which includes active and inward
processing.
c) export

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

SPECIAL REGIMES

Transit:
- Internal
- External

Deposit:
- Customs warehouse
- Free zone

Special use:
- Temporary admission
- End use

Refinement:
- Active improvement
- Passive improvement

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The new Community system qualifies as “special regimes” all those regimes other than release for free circulation (art.
201 EU Reg. 952/2013) and from export (art. 263 EU Reg. 953/2013)

Furthermore, the new Union Customs Code no longer explicitly distinguishes between suspensive arrangements, for which the duties
customs duties, including VAT, must be guaranteed and not paid, and economic regimes, for which a specific one is always required
authorization from the Customs Authority, although this distinction remains in practice.

Customs regimes, depending on their purpose, are divided into:

- definitive
- suspensive -
economic
- of circulation

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The definitive regimes are:

- (release for free circulation) definitive import - definitive

export

Goods, once declared for export or release for free circulation (import
definitive), definitively fulfill all measures both concerning taxation and political matters
commercial. Therefore, from a customs point of view, they do not require any other formalities,
unlike what happens with other regimes.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The suspension regimes are applicable only to non-EU goods and provide for the suspension of
collection of customs duties. The suspension also applies to goods subject to excise duty and
intended to be processed and then sent back to other member countries.

These are suspension regimes:

- external transit
- customs warehouse (and free zones/warehouses)
- active refinement in the form of the suspension system
- processing under customs control
- temporary admission

The customs authority may make the placing of goods under a suspensive regime subject to the establishment of a
security deposit to guarantee the payment of the customs debt that may arise in respect of
such goods. Economic arrangements facilitate the movement of goods from one point to another within the EU. They
allow certain economic activities to be carried out with (total or partial) exemption from customs duties and have
the purpose of attracting and maintaining the economic activity of the Union. They allow goods to be
worked, repaired, transformed, stored and used. The use of any economic customs regime is
subject to the issuing by the customs authority of a specific authorization which defines the
conditions under which the regime in question is used.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Economic customs regimes ( procedures that facilitate international trade by allowing the postponement of
payment of duties, VAT and other taxes on goods not intended for immediate final importation)
I am:

- customs warehouse
- active refinement
- processing under customs control
- temporary admission
- passive perfection

The circulation regimes are:

- internal transit
- external transit

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

FREE ZONES

Free zones serve to promote the economic and social development of disadvantaged areas through tax and customs
incentives. The identification of free zones and free warehouses has always been a significant issue, especially given the
security issues associated with registering incoming goods and determining when customs debts arise.

Article 166 of the Customs Code defines free zones and free warehouses as parts of the EU customs territory or areas
located within that territory, in which goods are considered, for the purposes of the application of import duties and commercial
policy measures on imports, as goods not located in the EU customs territory, provided they are not released for free
circulation or placed under another customs procedure, nor are they used or consumed under conditions other than those
provided for by customs regulations.

Member States may designate parts of their territory as free zones and authorize the establishment of free warehouses. They
must also establish the geographical boundaries of each zone and approve the premises designated for storage. The
boundaries and entry and exit points of free warehouses and free zones, excluding those not enclosed by land, are subject to
customs supervision. Persons and means of transport entering or leaving a free zone or free warehouse may be subject to
customs control.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The fundamental element that characterizes the integral (or enclosed) free zone is its physical position with respect to the
customs territory. Integral free zones are located outside this customs territory and therefore enjoy a real
their own customs extraterritoriality regime , even if politically they are part of the States concerned. In addition to a
particular tax legislation, customs extraterritoriality entails duty exemption on goods placed in
consumption within these zones. There are integral free zones in various countries of the Community such as the territory of Busingen in
Germany, Ceuta and Melilla for Spain, Livigno and Campione d'Italia for Italy, etc. These free zones
pre-existed the creation of the Community and were maintained by the accession treaties.

Free zones under Community law (or non-landlocked) are within the Community customs territory, and therefore
enjoy a fictitious extraterritoriality. This legal fiction of customs extraterritoriality confers some
peculiarities that can be indicated as a simplification of customs formalities and the enjoyment of certain tax benefits.
Free zones, known as common law free zones, are already established and operating in the EU, such as:

- Copenhagen (Denmark);
- Bremen, Cuxhaven, Emden, Hamburg and Kiel (Germany);
- Heraklion, Piraeus and Thessaloniki (Greece);
- Barcelona, Cadiz and Vigo (Spain);
- Rigaskiddy and Shannon (Ireland);
- Madeira and Sines (Portugal);
- Birmingham, Liverpool and Southampton (Great Britain);
- Trieste and Venice (to which will be added Genoa and Naples, Italy).

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The new reform:

- provided for the elimination of the distinction between free warehouse and free zone
- has included free zones among the special customs storage regimes and no longer among the other destinations
customs
- abolished the “non-enclosed” free zones referred to in Article 168 bis of the CDC (the first and only “non-enclosed” free zone
interclusa” in Italy, established by the Customs Agency on 1 August 2003, was located within the port area
of Gioia Tauro).

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

CUSTOMS DECLARATION

International trade, as is known, is characterized by the movement of goods, exchanged between

third countries (all those that are not part of the EU) and the EU. The EU legislator has established,
regardless of the transport route used (by sea, by land or by air), specific requirements
for the introduction of goods into and exit from the customs territory of the Union.

In the first case (introduction of foreign goods) it is recalled, in summary, that the goods:

1. must be taken, without delay (art. 38 CDC) to the customs office designated by the customs authority
or in another place designated or authorised by that authority, or in a free zone

2. must be presented to customs for the required procedures (art. 40 CDC)

3. must be the subject of a declaration

4. must be assigned a customs destination (free circulation, permanent import, external transit,
customs warehouse, active processing, processing under customs control, admission
temporary, free zones and free warehouses, re-export, destruction, abandonment)

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

In the second case (exit from the EU customs territory) the goods:

1. must be presented to customs

2. must be the subject of a declaration that ties it to a customs destination (export

definitive, internal transit, passive completion).

The customs declaration is, therefore, a requirement that must be carried out both in the case of entry and exit.
of goods from the customs territory of the Union. This is an expression of intent aimed at binding the
goods to a specific customs regime, to which legally relevant effects are attached. It initiates
an administrative procedure which serves to establish a legal relationship between the parties which is qualified in a way
different according to the chosen customs destination.

In addition to the chosen customs destination, for each good it is necessary to declare:

1. basic indications to enable the determination of overall customs duties: the classification
tariff, origin , value , quantity

2. other information to complete the operation: the sender and the recipient, the
transaction currency, transport costs, “ Incoterms” clauses ( if applicable)

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Article 61 of the CDC provides that the customs declaration can be made:

- in writing
- using an IT system
- by means of a verbal declaration
- by means of another act by which the holder of the goods expresses the intention to place them under a customs regime

WRITTEN STATEMENT

Where a written declaration is used, the Legislator makes a distinction between

“normal procedure” and “simplified procedures”.

Article 62 CDC provides that a written declaration follows the “normal procedure” if it is
carried out by filling in a form conforming to the official model
provided for in the Single Administrative Document (DAU).

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

This customs declaration may be made by anyone who is able to present or have presented
to the competent customs the goods and the documentation necessary for the application of the
provisions governing the chosen customs regime. The declarant must be established in the Union.
European, with the exception of declarations for placing under the transit regime, temporary admission
or for occasional operations.

The declarant may request to rectify one or more indications given in the declaration after
the acceptance of the latter by the customs authority.

Please note, however, that no further corrections can be authorised if the request is submitted after
that the customs authority:

- informed the declarant of his intention to proceed with the inspection of the goods, or
- found the information given to be inaccurate, or
- authorized the release of the goods

The written declaration, as mentioned, must be drawn up according to the DAU model, provided for by the
Annexes 31-34 DAC.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The SAD legislation , introduced in 1988, has had to adapt over the years to the evolutions and innovations affecting
trade. Regulation (EC) 2286/2003, in fact, introduced a radical modernization of data collection for the compilation of EU
customs declarations.
These legislative changes have resulted in an overall reduction in the information required to complete the SAD. A
reduction of between 26% and 43% in the information required to be included in the document has been
estimated , depending on the optional boxes that individual Member States have decided to impose at the national level.
The SAD consists of numerous boxes, some of which are mandatory. Their completion depends, of course, on the
customs regime under which the goods are placed. The completion procedures are contained in Annex 37 of the SAD.

The DAU is issued in 8 consecutively numbered copies:

1. copy no. 1: kept by the authorities of the Member State in which the export (or dispatch) or dispatch formalities are carried out
community transit;
2. Copy No. 2: Used for the statistics of the Member State of export. It may also be used for the statistics of the Member State of dispatch in the case of trade between parts of the EU
customs territory with different tax regimes; 3. Copy No. 3: Is delivered to the exporter after being stamped by the
customs administration; 4. Copy No. 4: Is retained by the office of destination after the Community transit operation or is used
as a T2L document to prove the
EU status of the goods; 5.
Copy no. 5: is the return copy for the Community transit procedure; 6. Copy no. 6: is kept by the
authorities of the Member State in which the import formalities are carried out; 7. Copy no. 7: used for the statistics of the Member State of
importation. It may also be used for the statistics of the Member State of
import in the case of trade between parts of the EU customs territory with different tax regimes;
8. copy no. 8: delivered to the recipient.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The declaration can also be submitted using computerized procedures.

The declaration is subject to acceptance by customs and, in this sense, the date of acceptance is important,
date of completion of customs formalities, on which a series of consequences for the operator depend.

The declarant is responsible for completing and signing the form.

The goods must be declared when they enter customs areas, although exceptions are provided for in certain cases.
details.

To check the declarations accepted by it, the customs authority can proceed:

a. to a documentary check regarding, in this case, the declaration and the documents attached to it.
The customs authority may ask the declarant to present other documents to check
the accuracy of the information contained in the declaration;

b. to inspect the goods and, where necessary, to take samples for analysis or for a thorough check.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The operational phases that take place in customs can be summarised as follows: (1) presentation of the
declaration, (2) acceptance of the same and (3) registration in the customs registers.

The simplified procedures are:

- incomplete declaration procedure - simplified

declaration procedure
- domiciliation procedure

To be able to access these procedures, one or more of the following requirements must be present:
depending on the procedure requested:

- objective requirements: habitual carrying out of customs operations, availability

legal and suitability of authorized locations, suitable accounting and record keeping system

- subjective requirements: absence of bankruptcy proceedings, absence of specific convictions or

of criminal proceedings, anti-mafia clearance, absence of serious or repeated violations

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The incomplete declaration procedure allows you to submit, after

authorization, the declaration by means of the DAU without having been filled in
some boxes and without attaching the required supporting documents. This is allowed to
provided that the declaration is presented to customs within one month
substitute or complementary.

The minimum mandatory document requires the following information to be indicated:

- the identity and details of the declarant

- the signature by the declarant
- the customs destination
- identification of the goods
- the elements necessary for determining the value of goods in customs

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The simplified declaration procedure allows you to submit, instead of the

customs declaration completed on the official form (the SAD), a document
commercial or administrative, accompanied by an application to place the goods under
required regime. At least the following must be included in the simplified declaration:
essential elements for the identification of both the goods and the customs regime to which they are subject
intends to bind it. The simplified procedure is granted, upon specific authorization
of the customs authority for all the customs procedures provided for, after opening a guarantee, suitable for
protect the rights encumbering the goods.

The domiciliation procedure allows for customs operations (import-export),

directly from the beneficiary's warehouse, without the obligation to present the goods in
customs. It can be used for all customs procedures. The owner of the goods, therefore, after
having been authorized, is exempt from presenting the goods and the related documents to customs
declaration. He can place the goods under a customs regime in his own premises and
Submit the documentation to the Customs Office only later, electronically.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

OTHER STATEMENTS

In addition to the written form, Article 77 of the Customs Code allows for the declaration to be
submitted in other formats. The EU legislator, with Article 4 bis of the Customs Code, has established
that the customs authority may require that certain formalities, including the customs declaration, be
completed electronically. This system, known as EDI (Electronic Data Interchange), represents an
opportunity to simplify procedures, reduce costs, and facilitate trade flows.

Article 22 of the Customs Code establishes that "A customs declaration made by EDI is considered to be lodged upon receipt
of the EDI message by the customs authority." Acceptance of such a customs declaration is communicated to the declarant
by a reply message containing at least the details of the message received and/or the customs declaration registration
number and the date of acceptance.

When using IT procedures, it is essential to consider all aspects relating to the security and control
of information from the risk of alteration, loss and destruction of stored data.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

It is also foreseen that, in certain cases (art. 222 DAC), the declaration is made verbally. This is
goods of no commercial nature or of a commercial nature of modest value. In this case, the authority
Customs issues a receipt containing key information on the goods, their value, the tax collected,
on the date of issue and on the issuing authority.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Finally, the declaration can be presented with any other document (art. 230 DAC).
This category (art. 233 Dac) includes all declarations attributable to the
simple occurrence of human behavior. Consider, for example:

- when a person passes through the "nothing to declare" channel in the event of arrival
at the airport

- when passing through an office without a double control lane without releasing
spontaneously make a customs declaration

- when applying a customs declaration disc or self-adhesive label

containing the words “nothing to declare” on the car windshield, when
this possibility is provided for by national provisions

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

RELEASE FOR FREE CIRCULATION (DEFINITIVE IMPORT)

The free movement of goods within the customs territory of the EU is a valid principle
only for products manufactured there, but also for imported goods that have been placed in
free practice.

Article 79 of the CDC defines release for free circulation as the regime which allows
goods coming from third countries to obtain the status of EU goods. In order for a
For goods to acquire the status of goods released for free circulation, it is essential that:

a. trade policy measures have been applied (for example, a request has been submitted
an import authorization for products subject to quotas)

b. the other formalities required for the importation of those goods have been completed (for example
(for example, a health certificate has been presented for certain animal species)

c. legally due duties have been applied

Once these conditions are met, the goods will be able to circulate freely within the territory.
EU customs.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The release for free circulation represents the "first step" necessary for non-EU goods
assume the character of a national product of the country in which it will be released for consumption. The release for consumption
free circulation, in fact, does not imply that the goods have been definitively imported into a State
member. The release for free circulation in the customs territory of the EU and the release for consumption in
a Member State represent two distinct operations even if, in the majority of cases, they are
carried out simultaneously.

The CCC provides that goods released for free circulation lose the customs status of EU goods when
they leave the customs territory of the EU as well as when:

a) the declaration for release for free circulation is invalidated after the release of the goods
(b) the import duties relating to such goods have been repaid or remitted:

• under the active processing regime, in the form of the reimbursement system
• the goods are defective or do not comply with the clauses of the contract (art. 238 Cdc)
•
the refund or remission is subject to the condition that the goods are exported or
re-exported or assigned a customs destination that replaces it (art. 239 Cdc).

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

DEFINITIVE IMPORT

Permanent importation is not contemplated in the CDC. The CDC, having the objective of regulating the modalities and
procedures common to the 27 member countries, in fact, only provide for release for free circulation.
Permanent importation is related to the release for consumption of foreign goods in a given Member State .
first of all, therefore, with the release for free circulation the customs duties are paid and the policy measures are fulfilled
commercial duties foreseen, secondly, with the definitive importation and the release for consumption are paid the
indirect taxes specific to the Member State into which the goods are imported.

At the time the goods are placed in

consumption in a Member State, must be
settle VAT, excise duties (if applicable) and any other
rights.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The difference between release for free circulation and

definitive importation lies not only in the type of
declaration that the operator draws up at customs but also in the
end that he wants to achieve.

Permanent import, nationalization and entry into

consumption are terms that have the same meaning and that
they indicate the operation of definitive introduction of a good
foreign in the State. This can only happen after first
customs duties have been paid and
once any other formalities required have been completed (prohibitions,
quotas etc.) and subsequently steps were taken to
settle internal taxes (VAT, excise duties, etc.).

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

REINTRODUCTION DUTY-FREE

It may happen that previously exported goods re-enter the EU customs territory for the reasons
various trade-related and/or circumstances beyond the exporter's control. Having with
the export lost the status of EU goods, at the time of their release for free circulation should
both the taxation required by the Union and the internal taxation required by the Member State must be paid again
where you intend to place such goods for consumption.

Article 185 of the CDC establishes that "Community goods which, after having been exported outside the territory
Community customs duties are reintroduced and released for free circulation within three years, are exempted from
import duties, at the request of the interested party".

The three-year deadline may be exceeded in light of particular circumstances. Duty exemption
import is not permitted for:

1. goods exported outside the customs territory of the EU under the processing procedure
passive, unless such goods are in the state in which they were exported
2. goods which have been subject to a Community measure requiring their export to third countries

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

DEFINITIVE EXPORT

The export regime is applied to

EU goods leaving the territory
Union Customs. Exportation implies
the application of the formalities provided for in the act
of the exit, including policy measures
commercial and, if necessary, collection
of export duties (art. 161 CDC).
The figure summarizes the main references
regulations and practices of the regime. It is recalled
which the CDC states are not considered
exported outside the customs territory of the
EU goods shipped to the island
of Helgoland.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

To export goods, the exporter must present the goods to customs accompanied by
from the export declaration and, if required, must include specific authorisations or licences.
declaration must be filed at the customs office responsible for supervision in the place where
the exporter is established, or where the goods are packed or loaded for export (art. 161, par. 5
CDC).

The CDC provides that the declaration can be presented in different forms: written (procedure
normal or simplified), electronically, orally and directly to the exit office (when the
value per shipment and per declarant does not exceed 3,000.00 euros). If it is made in the form
written, it can be issued according to the ordinary procedure or (if the conditions exist)
conditions) with the adoption of a simplified procedure.

Over the years, however, the European legislator first favored and then made computerization mandatory.
of all procedures, with the consequent abandonment of paper-based ones.

This process was not without operational problems, which have now been largely overcome.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

According to art. 182 bis CDC, goods leaving the customs territory of the EU (except if
transferred by means of transport which are limited to crossing territorial waters or the
airspace of the customs territory, without making a stopover within that territory) form
subject to a customs declaration or, if no customs declaration is required,
customs, of a summary declaration.

Exports of EU goods are also encouraged by the granting of

tax breaks:

- export refund (referred to in paragraph 5.3)

- export concessions regulated by VAT legislation
- export excise duty rebate

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

CUSTOMS EXPORT DECLARATION WITH SECURITY DATA

In the EU, the Community ECS (Export Control System) manages the exchange of data between export customs offices and national and
European customs offices of exit. Phase 1 of the ECS, launched on July 1, 2007, aimed to both provide control of export customs operations
and serve as the primary tool for certifying the exit of goods from the EU customs territory (for customs and tax purposes). Phase 2 of the
ECS, launched on July 1, 2011, aimed to ensure compliance with EU customs regulations regarding "security." Since July 1, 2009, customs
declarations for export operations conducted under the standard or domiciled procedure must be submitted electronically.

The use of the paper system is permitted only if the customs authority's or operator's IT system is not functioning.
This emergency procedure, known as the fallback or "emergency procedure," requires the completion of the SAD. The declaration must be
filed with the customs office responsible for supervision at the exporter's location, or where the goods are packaged or loaded for export
(Article 161 of the Italian Code of Civil Procedure).

The safety data that the declaration must contain essentially refers to information regarding (Annex 30 bis Dac): - identification data of the
means of transport used - identification data of the
parties involved (recipient, carrier, etc.) - data regarding the goods (place
of loading or unloading, number of packages, weight, quality, etc.).

The declaration submitted electronically (Articles 592 ter to 592 septies of the Customs Code) must be submitted with security data within a
deadline, determined based on the time the goods leave the EU, and varying depending on the mode of transport. The deadline established
by the regulation is intended to allow the export office that receives the customs declaration to perform risk analysis and related checks
before the goods leave the EU.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Exit Summary Declaration – ESD (Export Summary Declaration)

The exit summary declaration must be submitted only in cases where the goods are not assigned a customs-
approved destination for which a customs declaration is required. Article 13 of Legislative Decree no. 182 quinquies
CDC establishes that the EXS must be submitted using an electronic procedure (the Customs Agency Circular no.
18/D of 29 December 2010 3 specifies that it must be submitted using the Customs Agency's Electronic Customs
Service. This declaration must be sent to the customs office where the goods actually leave the EU customs territory.
In the case of air or sea transport, the EXS must be submitted to the customs office competent for the place where
the goods are loaded onto the ship or aircraft that will take them to their destination, outside the EU customs territory.
In any case, the competent office carries out adequate controls based on risk analysis, especially for security
purposes, before releasing the goods for exit. Furthermore , art. 182 quinquies highlights that the customs authority
can accept summary declarations in paper form only in exceptional circumstances, provided that they are subject to
the same level of risk management applied to summary declarations submitted using a computerized procedure.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Control of customs declarations and exit of goods from the EU customs territory

Once the declaration has been submitted, the export office accepts it and performs a risk analysis for
tax and security purposes. The transaction is assigned a Movement Reference Number (MRN). Once
these requirements have been completed, the export office releases the goods for export, provided
they leave the customs territory in the same condition as when the export declaration was
accepted. It also provides the operator with the Export Accompanying Document (EAD). In the case
of a domiciliation procedure, the EAD is printed directly by the economic operator following the release
message from the export customs office.

The goods and the AED must be presented to the customs office of exit, which, with a few exceptions,
is the last customs office before the goods leave the EU customs territory (Article 793 of the Customs
Code). This office verifies that the goods presented correspond to those declared, also based on risk
analysis, and verifies the physical exit of the goods. The customs office of exit then sends the "exit
results" electronic message via the AIDA customs information system to the "export" office, pursuant
to Article 796 quinquies of the Customs Code.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

If the outcome is positive, the message "exit completed" constitutes proof of the exit of the goods from the territory.
EU customs. If there is a reference to the conclusion of the operation with discrepancies found,
the economic operator will have to go to the export office to correct the declaration
customs.

The status of the operation and, therefore, the presence of the aforementioned message can be consulted by the operators
economical by typing the MRN on the Agency's website in the e-customs section – AES/ECS message.

Pursuant to Article 793 ter, goods released for export must leave the customs territory of the EU.
within ninety days from the date of release.

The economic operators interested in the export operation for which the release has been granted
they are obliged to communicate the failure to exit the goods to the export office for the purposes of cancellation
of the declaration. In the event that the goods have left the customs territory of the EU but are not present in
system any exit message, the operator will be able to activate the "follow-up" procedure at the office
export customs. This procedure allows for obtaining alternative proof of export.
of goods from the EU territory for exports, carried out via the electronic system with MRN code.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

THE TRANSIT

The customs transit regime allows the free movement of goods within the territory of the Union.
Europe, without them being subject to the payment of customs duties (customs duties, VAT, excise duties and
other charges) normally provided for by customs legislation. The aim is to promote the
movement of goods in international trade, ensuring maximum safety and surveillance
customs.

Transit is a suspensive customs regime as it allows the circulation of goods, under

customs control:

a. between two points/countries in the customs territory of the European Union (in the case of Community transit)

b. between a point in the EU and one of the EFTA countries*, as well as between the latter (common transit)

* EFTA (European Free Trade Association) are Iceland, Liechtenstein, Norway and
Swiss

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Community transit allows the free movement of goods within the

territory of the Union and includes two types of regimes:

a. external Community transit for foreign (third-party) goods

b. internal Community transit for Community goods, which move from one location to
another within the customs territory of the Union, crossing the territory of a third country

In both cases, the goods must be accompanied by a specific Single

Administrative Document (SAD) and transported in packages or by
means of transport sealed or sealed by the customs authority.
This ensures that the goods will not be subject to checks until they
reach their destination, unless the competent authorities detect
suspicious situations or tampered documents/seals.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The external Community transit regime allows the movement from one locality to another in the
customs territory of the EU of third-party goods that have not completed the formalities for placing them in
free circulation. This may also include Community goods intended for export, or
re-exported outside the territory of the Union.

The SAD must indicate, in the appropriate box, the wording T1 for goods subject to this regime.

According to the provisions of art. 92, par. 2 CDC, external transit circulation can be
also carried out:

a. through Carnet Tir

b. through Carnet ATA
c. under the Rhine Manifest (Article 9 of the Revised Convention for Navigation on the Rhine)
d. on the basis of form 302 provided for by the framework of the convention between the states which have
acceded to the North Atlantic Treaty on the Status of their Armed Forces, signed in London on
June 19, 1951
e. by post (including postal parcels)

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Pursuant to Article 163 of the Customs Code, the internal transit regime allows Union goods to move from
one location to another within the customs territory, crossing the territory of a third country, without
changing their customs status.

The SAD accompanying the goods must contain the abbreviation T2 in the case of:

a. Community goods passing through/going to/coming from EFTA countries

b. Community goods going to the Republic of San Marino (with the exception of Italian goods,
subject to an exchange rate tax regime) and the Principality of Andorra.

For trade involving parties outside the EU fiscal territory, the abbreviation T2F must be used in the SAD. Even
in the case of internal transit, the movement of goods can occur:

a. through a Tir Carnet b.

through an ATA Carnet c. under
the Rhine Manifest (Article 9 of the Revised Convention for Navigation on the Rhine) d. under the form 302 provided for in
the framework of the convention between the states which have acceded to the North Atlantic Treaty on the Status of their Armed Forces,
signed in London on 19 June 1951
e. by post (including postal parcels)

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Operation of the transitional regime

The principal, i.e. the holder of the transit regime, is required to complete the
customs declaration (T1 or T2-T2F, as applicable) and deliver it to the customs office of departure.
The latter, once the declaration has been taken into account, assigns a deadline for the delivery of the goods
at the destination customs office and places seals on them to prevent them from being tampered with during
the route. The principal is required to present the goods to the customs office of destination.
intact, within the established deadline and to comply with the identification measures taken by the customs authorities
(art. 96 CDC). The destination customs office, having verified the correctness of the operation, sends a communication
at the customs office of departure (via a “notice of arrival” and, subsequently, the “results of the
check" , pursuant to art. 363 Dac), so that the closure (clearance) of the
regime. As established by art. 365 DAC, in the event that the office of departure does not receive the aforementioned notices, it
can start a search procedure in order to collect the information necessary for the verification
of the regime.

With the termination of the regime, the guarantee provided when the goods were placed under the regime also ceases to exist.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The Tir regime

Customs transit also applies to goods transported on road and motorway vehicles and containers which
cross countries that adhere to the TIR Convention (Transports Internationaux Routiers – Transport
International Road Transport): in this case we speak of the "TIR Regime". The goods, after completing the formalities
customs of the country of departure, and after being sealed, they can cross the borders of the participating countries
to the Convention without being subjected to further checks, except those carried out at the customs office of
destination. In order to ensure that goods can travel with minimal interference "en route" ,
While offering maximum protection to customs administrations, the TIR regime contains five basic requirements:

- goods must travel in customs-secure vehicles or containers

- during the journey, duties and taxes at risk must be covered by an internationally valid guarantee
- the goods must be accompanied by an internationally recognized customs document (Carnet Tir),
acquired in the country of departure, which serves as a customs control document in the countries of departure, transit and destination
destination
- the customs control measures adopted in the country of departure must be accepted by all transit countries and
destination
- access to the TIR regime both for national associations issuing the TIR Carnet and for natural and legal persons
using the Carnet Tir must be authorised by the competent national authorities.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

For the purposes of the Tir procedure, the operator must be in possession of a regular Tir Carnet document
internationally recognized customs clearance to be presented during customs control in the member states
departure, transit and destination. The Tir Carnet is printed by the International Transport Union on
road (IRU), and is distributed to the national guarantee associations, which issue the Tir Carnets to the carriers
of their country. Italian transport companies that intend to use the Tir Carnets for transport
international companies will have to register in the TIR Register established by the Italian Union of
Chambers of Commerce based in Rome. The Carnet Tir is valid until the end of the Tir operation.
at the customs of destination, provided it has been presented at the customs of departure within the deadline
provided by the issuing association. The Carnet is valid for forty-five days and can be
composed of fourteen or twenty vouchers depending on the number of operations planned.

To ensure more efficient controls, customs can provide for "restricted itineraries" , or
routes where vehicles can be easily identified and distances can be
covered within a reasonable time frame. In the event that the carrier is unable to meet the timeframes or
the travel route, must provide adequate explanations to the customs offices. It is also remembered that the
Customs authorities may also proceed to inspect the goods at the customs offices of
transit when there is suspicion of irregularities in the documentation or in the seals affixed to the goods.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

New Computerized Transit System (NCTS)

Regulation (EC) 2787/00 introduced a new management system for the transit system,
defined as New Computerized Transit System (NCTS). Pursuant to art. 367 of the aforementioned regulation, the
exchanges of information between competent authorities may take place through the use of technologies
of information and computer networks. The system aims to increase the effectiveness and good
functioning of Community transit procedures, ensuring faster and more efficient functioning
reliable in control operations.

The advantages of using this system are many:

- real-time monitoring of goods movements through the sending of electronic messages

- simplification of document management and control operations
- better warranty management
- collection and processing of transit statistics
- greater speed in closing transit operations
- less waiting time at the transit and destination offices

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The customs warehouse

A customs warehouse is a place, authorized and supervised by the

customs authority, designated for the storage of non-EU goods without
them being subject to import duties, VAT, or any other tax applicable
for their release for free circulation. EU goods may also be stored for
which specific EU legislation, by virtue of their placement in a customs
warehouse, provides for the benefit of measures generally related to
the export of goods. A customs warehouse is a suspensive economic
regime, as the taxation of the goods is suspended until their final
destination has been assigned.

In addition to the customs warehouse, the facilities in which operators

can store goods without being subject to the relevant tax are:

- tax warehouse: for national and community products in

excise duty suspension
- VAT warehouse, for national and EU goods in suspension
from value added tax

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The warehouse, a place authorized by the customs authority, can be of two types (art. 99 CDC):

a. public: usable by any person for the storage of goods

b. private: intended solely for the goods of the warehouse keeper, i.e. the person authorised to manage the customs warehouse.

The depositary, specifically, has the obligation to:

a. ensure that the goods are not removed from customs supervision during their stay in the customs warehouse
b. comply with the obligations arising from the storage of goods under the customs warehousing regime; c. observe certain specific
conditions set out in the authorization.

The depositor, on the other hand, is the person bound by the declaration of subjection of the goods to the customs warehousing regime.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Authorization and duration of the regime

The granting of the customs warehousing regime is subject to an authorization request from the interested operator.
Authorization is granted only to persons established in the Union.
The authorization application must be made in writing, following the template in Annex 67 of the DAC. Based on the documentation
submitted, the competent authority will verify the fulfillment of objective and subjective requirements, compliance with the
conditions prescribed by the regime, the existence of the operator's economic and functional needs, and the type of activity.
Furthermore, the granting of the authorization may be subject to the submission of a guarantee that protects the administration
with respect to the warehouse keeper's obligations (Article 104 of the CDC). This guarantee must be provided by the principal
and provided in the forms and manners established by applicable legislation. Once the authorization is issued, the goods can be
presented to customs and subsequently brought into the warehouse.

The duration of goods held under the customs warehousing regime is not subject to any limitations (Article 108, paragraph 1,
CCC). The regime is discharged when the goods are removed from the warehouse to be declared for another customs
destination. Taxation elements will be collected upon removal of the goods from the warehouse, when they are intended for
consumption.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Active refinement

Active refinement allows industries to

EU export to import – without paying any
duty, agricultural levy, or any policy measure
commercial – goods intended to be perfected
in the EU and subsequently re-exported outside of it
in the form of compensating products.

Specifically, Article 114 of the CDC allows the importation

Of:

- non-EU goods intended for re-export outside the

EU customs territory in the form of products
compensators, without being subject to duties
of imports or policy measures
commercial

- goods released for free circulation, with reimbursement or

relief from the relevant import duties, when
are exported outside the customs territory of the
EU in the form of compensatory products

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Fundamental principles of the regime

The inward processing regime promotes international competition for EU companies, which are forced to source certain
materials abroad, unable to do so within the EU. To prevent other EU producers from being disadvantaged by the
application of this regime, goods can be imported provided that:

- the products obtained (the so-called compensating products) are exported to a third country - the
import goods can be identified in the compensating products - the essential interests of EU
producers are not harmed - the operators concerned are
established in the EU

Consider, for example, an EU company that needs to import forklift components from non-EU countries . Under the inward processing
regime, these components are brought into the customs territory without having to pay any import duties. Once assembled, and therefore
"processed" within the EU, the resulting products are exported to third countries and the regime is thus discharged. According to art. 114,
paragraph 2, letter c), CCC, processing operations include: the processing of goods (including their assembly, assembly, and adaptation to
other goods), the transformation of goods, the repair of goods, as well as the use of certain goods that are not found in the compensating
products but which allow or facilitate their production.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Active refinement can be applied according to two different systems:

- Suspension system: consists of suspending the collection of import duties and VAT, as well as any excise duties, until
the compensating products are exported. This system applies to all types of goods.

- Drawback system: Import duties are required and will be refunded upon export of the final product. The drawback
system does not apply to goods subject to quantitative restrictions, tariff quotas, export refunds, and agricultural levies.

Before carrying out operations under the inward processing

procedure, the operator must request a specific
authorization from the customs authorities, as it is a
customs procedure of economic impact. Following the
issuance of the authorization, the customs authorities
establish a deadline by which the compensating products
must be exported or re-exported or assigned a new
customs-approved treatment or use (Article 123 of the Italian Civil
118 CDC). Compensating products exit the scope of the
regime upon submission of a bill of discharge (suspension
system) or a refund application (refund system).

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The suspension system

The suspension system allows the import of non-EU goods

without such goods being subject to import duties or
to other trade policy measures; obviously such goods,
to be able to benefit from the improvement regime, they must
be subjected to one or more refinement operations
in the EU and subsequently exported outside the EU
in the form of compensating products.

Goods introduced into the EU are subject to the restriction of

perfecting the bond requires active; such
an authorization, issued only if the conditions are met
economic conditions. In this way, the activities of
active improvement, for which it is also possible
use imported goods or equivalent goods
coming from the EU, possibly according to the modalities
of the advance export and of the triangular traffic, of which
he will say later.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Following the completion, the goods will have to be assigned a new destination and imported
temporary is discharged through the opening of a discharge account. Normally, the goods
are re-exported to a third country; otherwise, they may be:

- placed under another suspensive regime, such as customs warehousing or temporary admission
- introduced into a free zone
- be again bound to a new active improvement

Furthermore, the goods can be assigned a destination similar to export or placed

in free circulation in the EU, subject to the payment of all increased import duties
of compensatory interests as well as the application of all trade policy measures of the
case (for example, the presentation of an import license). If the goods are
transported to another Member State, must be accompanied by an information sheet INF 1. If the
compensating products or the goods in the unaltered state are released for free circulation in a
Member State other than that in which the goods were placed under the processing procedure
active, the import duties mentioned on the INF1 bulletin are collected by the latter State
member.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The refund system provides that, at the time of release of goods for free circulation in the EU,
the economic operator pays the duty, obtains all the necessary licenses and completes all the formalities
required by the customs authorities. Only when the goods will be re-exported in the form of products
compensators, it will be possible to submit a request for reimbursement or relief from the fees paid. Even in
in this case, equivalent goods may be used as a replacement for the imported goods
EU origin; therefore, compensation for equivalence between imported goods and
equivalent EU goods, but it is not possible to carry out advance export or traffic operations
triangular.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Equivalence compensation

Equivalent goods, i.e., goods originating in the EU, may be used under
the inward processing regime. This occurs when imported goods
cannot be obtained, without which production could be halted. To
avoid this, it is possible to use the equivalent compensation system,
provided for and regulated by Article 115 of the Code of Civil
Procedure. Equivalent goods must be of the same quality and possess
the same characteristics as the imported goods: the same commercial
quality, the same technical quality, and the same 8-digit Combined
Nomenclature (CN) code.

In special cases, it is permitted for the equivalent goods to be at a

slightly more advanced stage of processing than the import goods :
however, it is required that they be processed or transformed
predominantly by the operator holding the inward processing regime.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

As soon as the import goods enter the EU, they are bound to the regime; at the same time
in this way, when replaced by equivalent goods, the latter are subject to the processing regime
active in their place.

Equivalent compensation has the following advantages:

- common storage: import goods under inward processing and equivalent goods
can be stored together

- ease of customs control: even if it is no longer possible to distinguish between the two types of goods, those
exported goods are deducted from the inventory balance of goods in inward processing

- spare parts: if a good is imported for repairs, it can be exported instead,

an identical replacement part that has already been repaired previously
-

- possibility of early export and triangular traffic

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Early export and triangular traffic

With the advance export system, it is possible to export products obtained from equivalent goods before importing the goods
under inward processing (replacement import). This allows economic operators to respond more quickly to requests from their
customers; for this reason, advance export is particularly used in the following cases:

a. urgent export orders: in the event that the operator does not have import goods in active processing in stock, he can
use equivalent goods and export them immediately. Subsequently, it will import the non-EU goods duty-free.
b. Occasional exports: When export sales are only a small portion of total sales, it may be inconvenient to allocate import goods in advance
between inward processing and free circulation. It is better to initially allocate all of them for free circulation (or, if possible, use EU
goods), wait until the compensating products have been exported, and then import, under inward processing, equivalent goods to
replace those used for export.
c. Triangular traffic: in this variant of prior exportation, the exporter of the equivalent goods may also be a different person from the person
who subsequently imports the goods under inward processing, who may even be located in another Member State. This traffic occurs
whenever export and import do not take place through the same customs office, and therefore offers the freedom to import and export
through different Community customs offices.

Through prior exportation and triangular traffic, the operator has the right to import, within established time limits, a quantity of
non-EU goods similar to that of the EU goods incorporated in the compensating products. The goods are then placed under the
inward processing procedure. The exchange of customs status between inward processing goods and EU goods of the same
quantity and quality allows the inward processing goods to be released for free circulation in the EU without having to pay
import duties.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Limitations and special conditions for use

of the compensation modality for
equivalence are established in Annex 78 of the
Dac for certain types of goods:

a. rice
b. wheat
c. sugar
d. live animals and meat
e. corn (maize)
f. olive oils
g. milk and dairy products

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Authorization

Article 116 of the CDC establishes that the active processing authorization is issued upon request of the
person who carries out processing operations, provided that the following are satisfied
requirements:

- the applicant resides in the EU

- it is possible to identify the import goods in the compensating products or, if applicable, whether they are
the conditions set for equivalent goods are met
- inward processing can help create more favourable conditions for export or
re-export of compensating products, always safeguarding the essential interests of the
EU producers (economic conditions, as per the following paragraphs).

The procedures for requesting authorization are set out in articles 497 and following of the DAC, where it is
provided that a written request is submitted to the competent offices as designated by the regulations
internal customs within individual member states.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Passive improvement

As established in art. 145 CDC, passive perfection is the regime that allows operators
economic to temporarily export Community goods outside the territory of the European Union for
subject them to transformation operations, and subsequently to introduce the products resulting from the
processing (compensating products) in free circulation with total or partial exemption from import duties.
Similarly to what is provided for the active processing regime, the operations permitted under the active processing regime
passive perfection concerns:

a. the processing of goods (including their assembly, their fitting, their adaptation to other goods)
b. the transformation of goods
c. the repair of goods, including their refitting and adjustment
d. the use of certain goods which are not found in the compensating products but which permit or facilitate their use
obtaining even if they disappear totally or partially during their use.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The outward processing regime allows the export of EU semi-finished products

to non-EU countries for specific processing, to utilize more advanced
technologies, or to benefit from more advantageous economic conditions (for
example, lower labor costs than those in Europe). The following EU goods
cannot be placed under the outward processing regime (Article 146 of the
Customs Code):

-
the export of which gives rise to a refund or remission of import duties

- which, before their exportation, had been released for free circulation with
total exemption from import duties on account of their use for particular
purposes, the exportation of which gives rise to the
- By placing goods under the outward processing regime, the economic operator
granting of export refunds or for which, under the common agricultural
policy, a financial advantage other than such refunds is granted on can have specific processing carried out in a third country without customs
account of their duties being applied to the portion of goods originating in the Union upon
reimportation of the resulting product.
export.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Processing under customs control

The customs processing regime allows non-EU goods to be used in the EU customs territory for operations that alter their nature
or condition, without being subject to import duties or commercial policy measures. Following such processing/processing, the
resulting products (called "processed products") are released for free circulation upon payment of the relevant import duties.
Article 551 of the Customs Code establishes that this regime applies to goods whose processing results in products subject to
lower import duties than those that would be imposed on imported goods. Unlike the inward processing regime, the processed
products are not re-exported.

As previously mentioned, this regime applies when the processing results in processed products subject to import duties at a
lower rate than the amount imposed on the imported goods (to be processed). This regime does not suspend the applicability of
internal taxation measures and, therefore, with reference to VAT and any excise duties, reference will be made to the foreign
goods to be processed: the taxable value will be the value applied to the goods to be processed plus the import duties due for
the resulting product. The aim of this regime is also to increase processing activities within the EU, provided that the use of non-
EU goods does not harm the interests of European producers of the raw materials being processed. In this regard, the DAC
(Annex 76 A) provides a list of goods and related processing operations that can be subject to the TSCD regime without being
subjected to an economic assessment.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Temporary admission

Temporary importation is a regime that allows the use of non-EU products in the EU customs territory while benefiting
from specific tariff concessions. These goods are imported with total or partial exemption from import duties and are
not subject to commercial policy measures provided that, after their use, they are intended to be re-exported
unchanged, except for their normal depreciation due to their use (Article 137 of the Customs Code).

Import duties can therefore be alternatively: a. totally exempt

b. in partial exemption
c.
If the goods are not re-exported but nationalized, the relevant national taxation must be paid, and the compensatory
interest accrued from the date the goods were placed under the temporary admission regime must be paid. The
purpose of the regime is to facilitate international traffic and the circulation of instruments, equipment, and goods for
economic and social purposes.
Not.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Temporary admission authorization is granted upon request of the person using or causing the goods to be used. Upon temporary
importation, a guarantee must be provided for the customs duties relating to the temporarily admitted goods. If it is impossible to ensure
the identification of the imported goods, the customs authority will refuse to grant this procedure.

Authorisation is granted if, taking into account the quality of the goods or the nature of the operations to be carried out, the lack of
identification measures cannot give rise to abusive use of the regime.

The duration of temporary importation of goods is 24 months. It should be noted, however, that the deadline by which import goods must
be re-exported or assigned a new customs-approved use is established by the customs authority and that this deadline must be sufficient
to achieve the purpose of the authorized use. Furthermore, the customs authority:

a. with the agreement of the interested party, it may set shorter deadlines b. at the
request of the interested party and if exceptional circumstances justify it, it may extend, within
reasonable limits, the terms above.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

The temporary importation regime ends when the goods subject to this regime leave the EU customs territory
or, authorized by the customs authorities, are released for free circulation and/or destroyed under customs
control. The IPCs indicate the types of goods that are temporarily admitted with total exemption from import
duties:

a. road, rail, air and naval transport vehicles, including spare parts, accessories and
normal equipment accompanying them (articles 555 to 562)
b. personal effects of travellers, goods imported for sporting purposes and material intended for the comfort of seafarers
(articles 563 and 564)
c. materials for combating the consequences of disasters; medical-surgical and laboratory materials; animals;
goods intended for use in border areas (Articles 565, 566 and 567)
d. sound, image or information media; propaganda material; professional material; material
pedagogical and scientific (articles 568 to 570)
e. packaging; molds, matrices, clichés, drawings and plans, measuring, control and verification instruments and other similar
objects; special tools and instruments; goods to be used for carrying out tests or to be subjected to tests; samples;
replacement means of production (Articles 571 to 575)
f. goods intended for events or goods for sale (art. 576) g. spare parts,
accessories and standard equipment; other goods (art. 577)

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

ORIGIN OF GOODS

Art. 60 NCDC «Acquisition of origin»

The rule reintroduces the previous setting.

In cases where two or more countries contribute to the formation of a product, three countries will be necessary
conditions for establishing its origin:

- substantial transformation or processing

-
economically justified operation and company equipped for this purpose (non-intervention)
fictitious and absurd, only to benefit from preferential treatment)
-
manufacturing of a new product or important stage of the manufacturing process (so-called leap in
(SA code)

Art. 36 Regulation (EC) No. 450/2008

For the sake of simplicity, however, it only gave relevance to the place where the last accident had occurred.
“substantial transformation” , without any other condition being foreseen

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Determination of origin

- Art. 23 CDC (concept of goods originating in a country): "goods entirely obtained in that country are originating"

- Articles 24 and 25 of the Italian Code of Civil Procedure. Attribution of origin to products whose origin is not unequivocally
determinable

The so-called "Roll-up" is a phenomenon used to circumvent (without violating) the rules of origin based on the local content of both the
final product and intermediate components. The basic assumption is that an intermediate product will be considered originating if it
undergoes processing such that its local content exceeds a predetermined percentage. When this intermediate product is used in the
production of another good, its total value (not the amount of the originating cost components) will be counted when determining the
percentage of local content of the final good. The consequence will be that the actual percentage of local content of the final good is
much lower than that formally declared to customs authorities. A second form of roll-up occurs between producers located at different
stages of the production cycle who have no relationship with each other in terms of ownership or corporate structure.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Certificate of Origin

Proof of origin is provided by a document called a certificate of origin.

Eur. Model 1

For countries linked to the Union by bilateral agreements. Issued by the customs authorities of the
Country of export upon written request from the exporter. The customs authorities of the
Exporting country takes the necessary steps to verify the origin
of the goods and for the control of the other data of the Eur. 1 certificate. The Customs of the Country
importer cannot refuse to accept the certificate nor contest the importer
the declared origin, or any other formal and/or substantial irregularity. It may be
also issued after export (wording “issued retrospectively”). They can
duplicates can be issued in case of loss and/or theft (wording “duplicate”).

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Eur. 2 Model

Intended for shipments containing only original products and of non-unit value
exceeding a variable amount in euros based on the different agreement. Completed and signed
directly from the exporter or, under his responsibility, by his representative
authorized.

Form A

Used for all other GSP beneficiary countries or for those benefiting from concessions
tariffs granted unilaterally by the Union. Issued upon written request.
of the exporter or his authorized representative. Accompanied by any other documents
supporting document useful to prove that the products to be exported are originating and therefore have
right to preferential treatment. Same considerations made for Eur 1 regarding the
the competence of the import Customs to verify its correctness as well as in relation to
the possibility of issuing subsequent copies or duplicates.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

VALUE OF GOODS (procedure for evaluating each transaction)

Basic criterion: transaction value.

Art. 29

The transaction value corresponds to “the price actually paid or payable for the goods when they are sold
for export to the customs territory of the Community”.

In order for the fairness and centrality of the transaction value method not to be undermined by particular
situations in which the contracting parties may find themselves, certain conditions must be met (under
penalty of this rule being inapplicable).

- There must be no restrictions on the disposal or use of the goods by the buyer, other than those imposed or required by law or by public authorities in the Community,
or which limit the geographical area in which the goods may be resold, or which do not substantially affect their value.

- The sale or price must not be subject to conditions or performances whose value cannot be determined in
relation to the goods to be valued
- No part of the product, relating to any resale or subsequent transfer, shall be returned directly or
indirectly to the seller, unless an adequate rectification can be made
- There must be no links between the buyer and the seller that have influenced the determination of the price (if there is one
bond, the transaction value must be "acceptable" for customs purposes, pursuant to art. 29, paragraph 2, CCC)

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Alternative valuation methods. If the transaction value cannot be determined,

it will be necessary to resort to the so-called "alternative methods":

- Transaction value of identical goods

- Value of transactions of similar goods
- Value deducted from the resale price in the EU
- Value calculated or reconstructed on the basis of production costs
- Value calculated with the so-called "reasonable method" (provided that GATT principles are respected)

NB each of them can be used only when the previous one is

inadequate/inapplicable.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Items to add to the transaction value

- Commissions and brokerage fees, excluding purchase commissions

- Cost of containers considered, for customs purposes, as forming a single unit with the goods
- Cost of packaging, including both labor and materials
- Materials, components, parts and similar elements incorporated into imported goods
- Tools, dies, molds and similar objects used in the production of imported goods
- Materials consumed during the production of imported goods
- Engineering, study, art and design works, plans and sketches, carried out in a non-member country
of the Community and necessary to produce the imported goods
- Royalties and licence fees relating to the goods being valued, which the buyer is required to pay, directly or
indirectly, as a condition of the sale of the goods being valued, to the extent that such royalties and licence fees
have not been included in the price actually paid or payable

- The value of any resale portion of any further resale, disposal or use of the imported goods accruing directly or
indirectly to the seller
- The costs of transport and insurance of imported goods and the costs of loading and unloading
handling related to the transport of imported goods

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Items to be subtracted from the transaction value

- Costs of transporting the goods after their arrival at the place of introduction into the territory
Community Customs
- Expenses relating to construction, installation, assembly, maintenance,
technical assistance initiated after importation on imported goods (e.g.,
plants, machinery, industrial materials)
- Purchase commissions
- Costs relating to the right of reproduction in the Community of imported goods
- Interest resulting from a financing agreement concluded by the buyer and related
when purchasing imported goods
- Import duties and other charges payable in the Community by reason of
of the import and sale of goods

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Customs disputes: substantive and sanctioning aspects

Customs disputes concern tax aspects such as duties and taxes, but also everything arising from the application of customs
legislation which, as regulated by Article 20, paragraph 1 of the Tuld, is the responsibility of the customs authorities.

Significantly increased litigation cases. Thanks to the various controls imposed by law regarding the entry and exit, transit and
circulation of goods between various countries, counterfeiting, labeling, and correct geographical indication of products, litigation
cases have significantly increased: - disputes raised by the proceeding office (during the tax assessment phase or

in the review phase of the assessment of the same)

- violation of tax laws, which give rise to criminal or administrative sanctions - violation of other laws aimed
at protecting the consumer.

Customs crimes and offences are resolved and dealt with through tax or criminal proceedings or, as provided for by individual laws,
depending on the violation, by the ordinary civil judge or by the administrative judge.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Taxpayer defense and tax claim challenge

Tax litigation takes its first steps in the minutes that are drawn up by the office during
the customs assessment phase. The report cannot be contested independently, but
must include an indication of the use of the terms provided for by the taxpayer's statute.

The latter is authorized to file his defensive observations within sixty days of the
notification of the report. In the event of non-acceptance, the report may be followed by an investigation.
with the related tax claim.

This act can be contested before the competent provincial tax commission within
sixty (60) days from notification.

In the notice of assessment there is a grace period of ten days for payment, after which
which the proceeding is registered.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Alternatively, within thirty days of notification of the notice it is possible to resort to an intermediate phase of
administrative disputes pursuant to articles 66 et seq. of the Tuld as provided for in customs disputes;
procedure also useful for countering ordinary disputes that may arise during the
customs assessment.

Pursuant to art. 22 of Legislative Decree 374/90, the customs assessment, formalised in the customs declaration, has become definitive,
It is possible to pursue remedies in civil (tax) or administrative courts within sixty days.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

SANCTION WITH IMMEDIATE EFFECT AND SUSPENSION OF THE MEASURE

In exceptional cases, the Customs Offices may also impose the penalty with immediate effect,
in the event that there is a violation directly linked to the payment of the tax.

In these cases, it is possible to be eligible for a preferential payment equal to a quarter of the amount
imposed in the deed, if the payment occurs within the sixty-day deadline provided for proposing
appeal. Naturally, if you choose the facilitated payment, you can no longer appeal and the same
defines the dispute.

In case the customs authority doubts the conformity of the contested provision (or whether it can
cause irreparable damage to the interested party), can suspend it and, in that case, can ask the debtor to
provide a guarantee. Suspension of the effectiveness of the measure can also be requested
directly to the tax commission pursuant to art. 47, Legislative Decree 546/92.

It must be said that, in customs matters, the self-defense appeal tool should be used only in cases where
whether they are objectively evident or legal errors, and only if it has been decided not to challenge the act
judicially.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Customs tax disputes

A “substantial tax” dispute arises when the Customs Authority questions the elements of the customs declaration.

The most common cases concern quality, quantity, origin and value or the amount of the sum owed by the debtor required to fulfill
the customs obligation.

Tax penalty disputes arise primarily from a situation identified in the so-called smuggling offenses governed by Articles 282 to 301
bis. Article 282, letter b) of the Italian Customs Code establishes a punishable offense for anyone who "unloads or deposits foreign
goods in the intermediate space between the border and the nearest customs post," regardless of whether fraud to the detriment of
the Treasury has occurred. Article 292 of the Italian Customs Code lists the so-called "other cases of smuggling" and states, "Anyone
who, outside the cases provided for in the previous articles, evades payment of border duties on goods, shall be punished with a fine
of no less than two and no more than ten times the amount of such duties."
Article 295 of the Tuld also provides for aggravating circumstances for the crime of smuggling, namely five to ten times the
evaded duties. This applies if means of transport belonging to a person not involved in the crime were used. In addition to the
fine, a prison sentence of three to five years is added in certain cases (when the offender is caught armed, when three or more
offenders are caught together and in conditions that impede the police, when the act is committed as part of another crime
against public trust or public administration, etc.).
In addition to the fine, imprisonment of up to three years is added when the amount of border duties due is greater than Euro 49,993.03.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

Consumer protection violations

There are very frequent cases in which customs offices find irregularities
in indicating the geographical origin of the product, especially
in the labelling of products intended for import.

In the most serious cases, where false data is indicated, there is a concrete risk for
the operator to undergo criminal proceedings or in any case heavy sanctions, which
may result in the seizure of the goods or an interdiction order and
sanctioning.

Worth mentioning is the Madrid Agreement and art. 517, cp - “repression of

false or misleading indications of origin of goods” - according to which the customs has
the task of placing an administrative seizure on the goods, while the judicial authority
may order the criminal seizure of goods for "preservative" purposes.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE

Machine Translated by Google
CUSTOMS UNION, EU CUSTOMS TERRITORY,
COURSE OF STUDY IN ECONOMICS – DEPARTMENT OF ECONOMICS COMMUNITY CUSTOMS CODE, CUSTOMS REGIMES,
ORIGIN OF GOODS, CUSTOMS VALUE

In practice, customs authorities are increasingly resorting to administrative seizures and are proceeding directly with
criminal seizure pursuant to Article 354 of the Code of Criminal Procedure, after notifying the competent Public Prosecutor's
Office.

The application for regularization of the goods, which will be submitted by Customs for approval by the investigating
magistrate, must be carefully prepared and based on concrete evidence, since failure to do so could "constitute further
evidence of the validity of the charge."

Finally, to complete the regulatory framework for consumer protection, we would like to remind you of:

- Law No. 350 of December 24, 2003, Article 4, Paragraph 49, and Article 517 of the Criminal Code, which aims to strengthen
the protection of "Made in Italy" by intensifying the repression of false or misleading indications of provenance or origin,
referring to goods intended to be marketed within the national territory.

- Directive 2005/29/EC, transposed into Italian law by Law No. 29 of 25 January 2006, concerning the repression of unfair
commercial practices between businesses and consumers.

GOODS AND MARKETS – 2025/2026 – PROF. CATERINA TRICASE