This is a service that is provided in connection with the import or export of goods to/from the EU. The result is a processed customs declaration, on the basis of which the customs office releases the goods into the required regime. In the case of import operations, customs clearance is usually associated with securing a customs debt.

Customs Declaration is a private company processing customs declarations. The customs office is a state administration body which, on the basis of the submitted customs declaration and other accompanying documentation (e.g., invoice, CMR, CIM…, documents of origin EUR1, etc.) releases the goods into the given regime.

A customs declarant is a natural person, an employee of a company that provides a customs declaration processing service. A customs official is an employee of the state administration (customs office) who communicates with the customs declarant (electronically or directly at the counter of the customs office) regarding the release of the goods listed on the customs declaration.

Goods of a non-commercial nature are those that are not imported for the purpose of doing business.

EORI

Power of attorney to represent – direct representation / indirect representation.

Order

Extract from OR

Tax ID registration certificate

Invoice, proforma invoice, invoice for customs purposes (or other commercial document from which the customs declarant determines the price of the goods)

Proof of origin (EUR1, EUROMED or A.TR – if available)

Shipping documents (CMR, CIM, AWB, B/L and waybill)

Other mandatory documents (health, veterinary, Phyto, license…)

Customs declarations with contracting partners sometimes require both types of full authority.

The preferred method of representation is then determined by the contract.

Direct representation – acting on behalf of the represented, on behalf of the represented

Indirect representation – acts on behalf of PST CLC Mitsui-Soko, on behalf of the represented person

The reason for the requirement to sign both types of powers of attorney is the alternative option of using customs debt security or using simplified procedures.

In the case of direct representation, the client’s guarantee can be used. If the client’s guarantee is insufficient, the representative’s guarantee can be used. In such a case, however, it is necessary to submit a customs declaration in the form of indirect representation.

There are two exceptions where the goods do not have to be submitted for inspection in the customs area of the customs office:

If the customs procedure is initiated in the form of submission using a simplified procedure (approved consignee/sender)

In the case of submitting an application for a customs procedure outside the customs area (note that there is no legal right to permit this procedure). This usually happens in cases of excessive costs.

Two principles apply to customs control (physical control of goods):

In the event that the goods are proposed for customs processing in the form of simplification (approved consignee), employees of the customs administration will arrive at the place of unloading and perform a physical inspection of the goods

If the customs procedure is not initiated in the form of simplification, the goods must be submitted to the customs area.

In the event of an inspection – the Customs officer will carry out a detailed documentary and physical inspection of the goods as part of the ongoing customs procedure (in particular, verification of the quantity and type of goods compared to the data entered in the submitted customs declaration).

After the inspection, the Customs will issue a report. In case of discrepancies, it is necessary to arrange a remedy and then the goods can be released into the proposed customs regime.

It is not a problematic product, only the corresponding documents are not delivered. In the case of goods (ADR), we recommend that you always contact the customs declarant with a request for information on what documents should be presented to the customs office for such goods. Often this is documentation available to the exporter/importer (e.g. waste transport permit).

Confiscation of goods is a completely exceptional situation that can occur, for example, due to a violation of intellectual property rights, or by finding that the goods are by their characteristics unsuitable for use on the EU market, i.e., they do not meet health or safety standards. In such a case, the declarant (recipient) will be invited to comment on the initiated proceedings and refute any doubts. The trademark holder also has the same right to express himself.

The length of the customs procedure obviously depends on many factors.

Checking the goods

Use of simplified procedures

Declared by an AEO certified person

Kind of goods

Proposed customs regime

Current status at a specific Customs office

It should be added, however, that the customs procedure is only started with the submission of a customs declaration. The preparation of documents by the customs declarant is not included in the customs procedure. The very processing of documents from the customer also depends on the quality of the supplied documents for a specific shipment, as regards the content, i.e., a thorough description of the goods, technical specifications, excluding any doubt on the part of the customs office. However, the standard customs procedure time for regimes (free circulation, transit or export) does not exceed 2 hours.

Customs debt is a monetary amount that the customs office can prescribe for payment (duty, VAT, SPD).

If the represented person is a VAT payer in the Czech Republic, the Tax Office is the administrator of the import tax. This means that the customs office does not prescribe payment of VAT when importing. This obligation is transferred to the represented person, who determines the basis for VAT when importing goods and remits the tax itself in the tax return. If he then uses the goods for his own economic activity, he can simultaneously claim a deduction of this tax for these goods in his tax return.

For non-payers, the tax administrator is directly the customs office, which prescribes VAT in the decision on the release of goods (JSD for e.g., free circulation regime). VAT is then payable together with the customs duty (usually within 10 days).

If the customs procedure decides to release goods subject to SPD (selected products with a SPD rate >0), the SPD is also part of the customs debt.

The customs portal is a web application where the documents submitted for the customs procedure are stored, including the decision to release the goods into the customs regime. On this site, the PST CLC Mitsui-Soko customer can track the progress of customs clearance of their shipments based on registration.

EORI – Identification number, necessary for communication with the EU customs administration in the framework of customs procedures, under which the person of the recipient, sender, declarant is identified, in the Czech Republic usually a VAT number.

https://ec.europa.eu/taxation_customs/dds2/eos/eori_home.jsp?Lang=en

Nomenclature – each product has its own numerical code based on the EU customs tariff. In the customs administration systems, this code is then assigned the amount of duty (mostly in % of the value of the goods) and possibly other measures (e.g., the need to present a license).

https://www.celnisprava.cz/cz/clo/sazebni-zarazeni-zbozi/Stranky/default.aspx

Customs debt – monetary amount (in the Czech Republic expressed in CZK) which the customs office can prescribe for payment (customs, VAT, SPD)

Intrastat – intra-Union records on the movement of goods between EU states, the obligation to report is defined in the Customs Act.

https://www.celnisprava.cz/cz/dalsi-kompetente/intrastat/Stranky/default.aspx

Power of attorney – a written document that specifies to the Customs Office the rights and obligations of persons or entities participating in customs proceedings

T1, T2 – transit customs declaration, on the basis of which goods can be transported between the states of the Convention (EU and other countries) without the need for further customs clearance at state borders and can be transported to the national customs office.

JSD – unified administrative document (customs declaration) that the declarant submits to the customs office and requests the release of goods into the customs regime.

Carnet – transit customs declaration (other than T1, T2), on the basis of which goods can be transported between the countries of the TIR Convention (e.g. Iran, Russia, Syria, more at https://info.odoprave.cz/informace-dle -country) without the need for further customs clearance at state borders and can be transported to the national customs office

CMR – contract of carriage with the carrier of goods in international transport. This contract shall similarly apply to the implementation of national road freight transport. The CMR serves as proof of the conclusion of the transport contract, the carrier’s confirmation that he took over the cargo and in what condition he handed the goods over to the recipient.

Export is a customs regime for goods with EU status sent to third countries. By ending this regime at the EU borders, the sender receives confirmation that the goods have left the EU and can thus enter the invoice (tax document) in the tax return and claim VAT exemption.

Customs clearance – from the point of view of the customs declarant, who is supposed to provide the service, but also for communication about the condition of the goods, it is a very imprecise term (although often used). Simply put, a form of customs management leading to the fulfilment of customs formalities during import/export. During the initial communication, it is always necessary to specify the current location or direction of movement of the goods so that the correct mode can be declared.

Completion of customs formalities during the import of goods usually associated with securing the customs debt and paying the duty. After release for free circulation, the customs office no longer supervises the movement or processing of the goods.

These are customs regimes other than free circulation or export of goods. Customs warehouse, inward processing or transit regime is hidden under the name of special regimes. The essence of these regimes lies in the possibility of putting the goods in such a state that they are subsequently not subject to the payment of duty, or a lower rate of duty or in the possibility of delaying the payment of duty.

Customs warehouse – a space where goods imported from outside the EU can be placed for an unlimited period of time without the need for direct payment of customs duty. In the customs warehouse, goods can only be handled to the extent necessary for further transport (sorting, weighing, grouping, etc.). A customs declaration must be submitted to release the goods from the customs warehouse.

Approved consignor – a form of simplification granted to a company by the customs office, which is authorized to submit and issue a customs declaration for the transit regime without the need to physically present the goods to the customs office. The goods are thus located all the time at the place of loading on the means of transport.

Approved consignee – a form of simplification granted to the company by the customs office, which is authorized to terminate the transit regime upon importation and place the goods in a warehouse (temporary warehouse), without the need to transport the goods to the customs office.

The CBAM (Carbon Border Adjustment Mechanism) is a new mechanism for collecting data and fees on the import of products with a high carbon footprint. The system is being implemented in two phases, starting from 1 October 2023.

• Until 31 December 2025, emissions data will be reported only once per quarter.
• From 1 January 2026, data will be reported once a year, accompanied by the payment of the carbon tax, in the form of CBAM certificates.

Helpful Links:

• The CBAM is governed by Regulation 2023/956 and Implementing Regulation 2023/1773.
• Website of the European Commission on CBAM.
• PST CLC Mitsui-Soko portal (News and Legislation – for registered participants).