Goods Not at Risk: Implementing Article 5(2) of Ireland/Northern Ireland Protocol, Lecture notes of Business

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Decision of the Withdrawal Agreement Joint Committee on the determination of goods not at risk 17 December 2020 1 DECISION No 4/2020 OF THE JOINT COMMITTEE ESTABLISHED BY THE AGREEMENT ON THE WITHDRAWAL OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND FROM THE EUROPEAN UNION AND THE EUROPEAN ATOMIC ENERGY COMMUNITY of 17 December 2020 on the determination of goods not at risk THE JOINT COMMITTEE Having regard to the Protocol on Ireland/Northern Ireland to the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, and in particular Article 5(2) thereof, HAS DECIDED AS FOLLOWS: 4 (ii) the importer has been authorised in accordance with Articles 5 to 7 of this Decision to bring that good into Northern Ireland for its sale to, or final use by, end-consumers located in the United Kingdom, including where that good has been subject to non-commercial processing in accordance with Article 2 before its sale to, or final use by, end-consumers; (b) in the case of goods brought into Northern Ireland by direct transport other than from the Union or another part of the United Kingdom, (i) the duty payable according to the Union Common Customs Tariff is equal to or less than the duty payable according to the customs tariff of the United Kingdom, or (ii) the importer has been authorised in accordance with Articles 5 to 7 of this decision to bring that good into Northern Ireland for its sale to, or final use by, end-consumers located in Northern Ireland (including where that good has been subject to non-commercial processing in accordance with Article 2 before its sale to, or final use by, end-consumers), and the difference between the duty payable according to the Union Common Customs Tariff and the duty payable according to the customs tariff of the United Kingdom is lower than 3 % of the customs value of the good. 5 2. Paragraphs 1(a)(ii) and 1(b)(ii) shall not apply to goods subject to trade defence measures adopted by the Union. Article 4 Determination of the applicable duties For the purposes of Article 3(1)(a)(i) and 3(1)(b), the following rules shall apply: (a) the duty payable according to the Union Common Customs Tariff to a good shall be determined in accordance with the rules set out in the Union customs legislation; (b) the duty payable according to the customs tariff of the United Kingdom to a good shall be determined in accordance with the rules set out in the customs legislation of the United Kingdom. Article 5 Authorisation for the purposes in Article 3 1. For the purposes of Articles 3(1)(a)(ii) and 3(1)(b)(ii), an application for an authorisation to bring goods into Northern Ireland by direct transport for sale to, or final use by, end-consumers shall be submitted to the competent authority of the United Kingdom. 6 2. The application for the authorisation referred to in paragraph 1 shall contain information on the applicant’s business activities, on the goods typically brought into Northern Ireland, as well as a description of the type of records, systems and controls put in place by the applicant to ensure that the goods covered by the authorisation are properly declared for customs purposes and evidence can be provided to support the undertaking in Article 6(b). The trader shall keep the evidence, e.g. invoices, for the past five years and shall provide it to the competent authorities upon their request. The data requirements of the application are set out in detail in the Annex to this Decision. 3. The authorisation shall at least indicate the following: (a) the name of the person to whom the authorisation has been granted (“authorisation holder”); (b) a single reference number attributed by the competent customs authority to the decision (“authorisation reference number”); (c) the authority having granted the authorisation; (d) the date of taking effect of the authorisation. 4. The provisions of Union customs legislation on decisions relating to the application of the customs legislation shall apply to applications and authorisations referred to in this Article, including as regards monitoring. 9 (c) in respect of goods to be declared as not at risk, the applicant shall demonstrate that they have a high level of control of their operations and of the flow of goods, by means of a system of managing commercial and, where appropriate, transport records which allow appropriate controls and provision of evidence to support the undertaking in Article 6(b). 2. Authorisations shall be granted only if the customs authority considers that it will be able to carry out controls without disproportionate administrative effort, including control of any evidence that the goods were sold to, or subject to final use by, end-consumers. 3. During the period ending two months after the entry into force of this Decision, an authorisation may be granted on a provisional basis if the applicant has submitted a complete application, complies with paragraph 1(b), and declares that they meet the other conditions for authorisation. The duration of the provisional authorisation shall be limited to four months after which a permanent authorisation must have been granted for the trader to remain authorised. 10 Article 8 Exchange of information on the application of Article 5(1) and (2) of the Protocol 1. Without prejudice to its obligations pursuant to Article 5(4) of the Protocol, read in conjunction with Regulation (EC) No 638/2004 of the European Parliament and of the Council(1) and Regulation (EC) No 471/2009 of the European Parliament and of the Council(2), the United Kingdom shall provide the Union with information on the application of Article 5(1) and (2) of the Protocol as well as of this Decision on a monthly basis. This information shall comprise volumes and values, in aggregated form and per consignment, as well as means of transport, relating to: (a) goods brought into Northern Ireland in relation to which no customs duties were payable in accordance with the first subparagraph of Article 5(1) of the Protocol; (b) goods brought into Northern Ireland in relation to which the customs duties payable were those applicable in the United Kingdom in accordance with the second subparagraph of Article 5(1) of the Protocol; and (c) goods brought into Northern Ireland in relation to which the customs duties payable were in accordance with the Union Common Customs Tariff. 1 Regulation (EC) No 638/2004 of the European Parliament and of the Council of 31 March 2004 on Community statistics relating to the trading of goods between Member States and repealing Council Regulation (EEC) No 3330/91 (OJ L102, 7.4.2004, p. 1). 2 Regulation (EC) No 471/2009 of the European Parliament and of the Council of 6 May 2009 on Community statistics relating to external trade with non-member countries and repealing Council Regulation (EC) No 1172/95 (OJ L 152, 16.6.2009, p. 23). 11 2. The United Kingdom shall provide the information referred to in paragraph 1 on the 15th working day of the following month for which the information is provided. 3. The information shall be provided using electronic data-processing techniques. 4. At the request of the Union representatives referred to in Decision 6/2020 of the Joint Committee of 17 December 2020 providing for the practical working arrangements relating to the exercise of the rights of Union representatives referred to in Article 12(2) of the Protocol on Ireland/Northern Ireland, and at least twice per year, the competent authorities of the United Kingdom shall provide information in aggregated and per authorisation form to these representatives on the authorisations granted pursuant to Articles 5 to 7, including numbers of accepted, rejected and revoked authorisations. 5. The regular transfer of information referred to above shall commence as soon as possible and no later than 15 April 2021. The first transfer of information shall cover information for the period from 1 January 2021 until the end of the month before the transfer. Article 9 Review and termination If either Party considers there is significant diversion of trade, or fraud or other illegal activities, that Party shall inform the other Party in the Joint Committee by 1 August 2023, and the Parties shall use their best endeavours to find a mutually satisfactory resolution of the matter. If the Parties do not find a mutually satisfactory resolution, Articles 3(1)(a)(ii), 3(1)(b)(ii) and 5 to 8 of this Decision shall cease to apply from 1 August 2024, unless the Joint Committee decides before 1 April 2024 to continue their application. 14 4. Applicant The applicant is the person who applies to the customs authorities for a decision. Enter the name and address of the person concerned. 5. Applicant identification number The applicant is the person who applies to the customs authorities for a decision. Enter the Economic Operators Registration and Identification number (EORI number), of the person concerned, as provided for in Article 1(18) of Commission Delegated Regulation (EU) 2015/2446(1). 6. Legal status of the applicant The legal status as mentioned in the document of establishment. 7. VAT identification number(s) Where assigned, enter the VAT identification number. 1 Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code (OJ L343, 28.12.2015, p. 1). 15 8. Business activities Enter information on the business activity of the applicant. Please describe briefly your commercial activity and state your role in the supply chain (e.g. manufacturer of goods, importer, retailer, etc.). Please describe: – the intended use of the imported goods, including a description of the type of goods and whether they undergo any type of processing. – an estimation on the number of customs declarations for release for free circulation for the goods concerned to be made per year. – the type of records, systems and controls put in place to support the undertaking in Article 6(b). 9. Annual turnover For the purposes of Article 2 of the Decision, enter the annual turnover for the most recent complete financial year. If a newly established business, provide such records and information as relevant to enable an assessment of anticipated turnover e.g. latest cash flow, balance sheet and profit and loss forecasts, approved by the directors/partners/sole proprietor. 16 10. Contact person responsible for the application The contact person shall be responsible for keeping contact with customs as regards the application. Enter the contact person’s name and any of the following: telephone number, e- mail address (preferably of a functional mailbox) 11. Person in charge of the applicant company or exercising control over its management For the purposes of Article 7(b) of the Decision, enter the name(s) and full details of the person(s) concerned according to the legal establishment/form of the applicant company, in particular: director/manager of the company and board directors if any. Details should include: full name and address, and date of birth and National Identification Number. Dates, times, periods and places 12. Date of establishment With numbers – the day, month and year of establishment. 13. Address of establishment / address of residence The full address of the place where the person is established/resides, including the identifier of the country or territory.