On the Customs Code of Kosovo, Sections 35.6 and 53.10

Administrative Instruction – On Transit

ADMINISTRATIVE INSTRUCTION

ON TRANSIT

Implementing UNMIK Regulation No. 2004/1 of 30 January 2004,

On The Customs Code of Kosovo, Sections 35.6 and 53.10

No. / Pristina, / 2004

The Director General of the UNMIK Customs Service,

Pursuant to the authority given to him under sections 35.6 and 53.10 of the United Nations Interim Administration in Kosovo (UNMIK) Regulation No. 2004/1 of 30 January 2004 on The Customs Code of Kosovo,

Having consulted the Government of Kosovo,

Hereby issues the following Administrative Instruction.

Article 1

Definitions and References

1.1Any definition or rule of interpretation contained in UNMIK Regulation No. 2004/1 of 30 January 2004, on the Customs Code of Kosovo, shall also apply to the present Administrative Instruction.

1.2For the purposes of the present Administrative Instruction, the following additional definitions shall apply:

“carrier” means the person in charge of a single means of transport carrying goods under a transit procedure;

“Code” means the Customs Code of Kosovo, UNMIK Regulation No. 2004/1, of 30 January 2004, on the Customs Code of Kosovo;

“guarantee certificate” and “guarantee waiver certificate” mean certificates issued under article 18.1;

“goods involving a higher risk of fraud” means those goods listed in Annex 1, where the quantity of those goods exceeds the minimum quantities set out in the third column of that Annex;

“itinerary” means the route to be taken by goods under a transit procedure;

“loading list” means a document having the characteristics described in Annex 2 and drawn up in accordance to the Explanatory Note in Annex 3;

“office of departure” means the customs office where a declaration placing goods under a transit procedure is accepted;

“office of destination” means the customs office where goods placed under a transit procedure must be presented in order to end the procedure;

“office of guarantee” means the office where the Director General decides that a guarantee furnished by a guarantor is required to be lodged;

“principal” means the person declaring the goods under a transit procedure, or goods which are to be or have been under such a procedure, as the context requires;

“reference amount” means the amount of customs debt which may be incurred in respect of goods which a principal places under a transit procedure or transit procedures during a period of at least one week. To establish a reference amount a calculation shall be made of the amount of the customs debt which may be incurred in transit operations. The office of guarantee shall establish this amount in collaboration with the principal concerned on the basis of:

(a) the information on goods he has carried in the past;

(b) an estimate of the volume of intended transit operations as shown by his commercial documentation and accounts; and

(c) the highest rates of duty and charges applicable to the goods.

“single means of transport” means:

(a) a road vehicle accompanied by its trailer(s) or semi-trailer(s);

(b) a set of coupled railway carriages or wagons; or

(c) a container or set of containers loaded on a single vehicle;

provided that the goods to be carried are all dispatched together; and

“transit declaration” means a single administrative document (SAD) with parts 1, 4 and 5 completed.

Article 2

General Provisions

2.1Goods to which a transit procedure applies may be carried between two points in Kosovo via the territory of an other country provided that they are carried through that country under cover of a single transport document drawn up in Kosovo. Where this is so, the effect of the transit procedure shall be suspended in the territory of that other country.

2.2A transit procedure shall be compulsory in respect of goods carried by air only if they are loaded or reloaded at an airport in Kosovo.

2.3The provisions of Chapters 18 and 19 of the Code and the provisions of this instruction shall apply to the other charges referred to in section 35.1(a) of the Code.

Article 3

Means of transport and declarations

3.1Each transit declaration shall include only the goods loaded or to be loaded on a single means of transport for carriage from one office of departure to one office of destination.

3.2A single means of transport may be used for loading goods at more than one office of departure and for unloading at more than one office of destination.

3.3A loading list may be used instead of a continuation sheet as the descriptive part of a transit declarations, of which it shall then form an integral part.

Article 4

Formalities at the office of departure

4.1Goods placed under a transit procedure shall be carried to the office of destination along an economically justified route.

4.2For goods involving a higher risk of fraud, or when the office of departure or the principal consider it necessary, the said office shall prescribe an itinerary and enter it in box 44 of the transit declaration, taking into account any details communicated by the principal.

4.3The office of departure shall set a time limit within which the goods must be presented at the office of destination, taking into account the itinerary, the single means of transport used and any other matter and, where appropriate, the details communicated by the principal. The time limit prescribed by the office of departure shall be binding on the Customs Service during the transit procedure.

Article 5

Sealing of Goods

5.1Without prejudice to article 6, goods to be placed under a transit procedure shall not be released unless they are sealed.

5.2The following shall be sealed:

(a) the space containing the goods, where the single means of transport has been approved under other rules or recognised by the office of departure as suitable for sealing; or

(b) each individual package.

5.3A single means of transport may be recognised as suitable for sealing on condition that:

(a) seals can be simply and effectively affixed to it;

(b) it is so constructed that no goods can be removed or introduced without leaving visible traces or without breaking a seal;

(c) it contains no concealed spaces where goods may be hidden; and

(d) the space reserved for the load is readily accessible for inspection by any customs officer.

5.4Any road vehicle, trailer, semi-trailer or container approved for the carriage of goods under customs seal in accordance with an international agreement to which Kosovo is a party shall be regarded as a single means of transport suitable for sealing.

Article 6

Dispensing with Sealing

6.1An office of departure may dispense with sealing if, having regard to other possible measures of identification, the description of the goods in the transit declaration or in the supplementary documents make them readily identifiable. A description of the goods shall be deemed to permit identification of those goods where it is sufficiently precise to permit easy identification of the quantity and nature of the goods.

6.2Where an office of departure grants a waiver from sealing, it shall enter the endorsement “Waiver” in the transit declaration, opposite the heading “seals affixed” of box D entitled “Control by office of departure”.

Article 7

Formalities en route

7.1Goods placed under a transit procedure shall be carried under cover of copies No. 4 and No. 5 of the transit declaration returned to the principal by the office of departure.

7.2The carrier shall be required to make the necessary entries in copies No. 4 and No. 5 of the transit declaration and present them with the consignment to an officer where the means of transport is located whenever:

(a) the prescribed itinerary is not followed and the provisions of Article 4.2 apply;

(b) seals are broken in the course of a transport operation;

(c) goods are transferred to another means of transport;

(d) there has been partial or total unloading of the single means of transport; and

(e) an incident or accident capable of affecting the ability of the principal or the carrier to comply with his obligations has occurred.

7.3Where goods are presented to an officer under article 7.2, and that officer considers that the transit operation concerned may continue in the normal way, he shall take such steps that may be necessary to deal with the situation and then endorse copies No. 4 and No. 5 of the transit declaration.

Article 8

Formalities at the office of destination

8.1The goods and the copies No. 4 and No. 5 of the transit declaration shall be presented at the office of destination. The office of destination shall register copies No. 4 and No. 5 of the transit declaration, record on them the date of arrival and enter the details of any controls carried out.

8.2At the request of the principal, and to provide evidence of the procedure having ended in accordance with Article 11.2, the office of destination shall endorse an extra copy No. 5 or a copy of copy No. 5 of the transit declaration with the phrase “Alternative proof”.

8.3A transit operation may end at an office other than the one entered in the transit declaration, in which case that office shall then become the office of destination. The new office of destination shall enter in box “I. Control by office of destination” of copy No. 5 of the transit declaration the endorsement, in addition to the usual observations it is required to make, “Differences: office where goods were presented (name )”.

Article 9

Receipt for Goods

9.1The office of destination shall issue a receipt on request to the person presenting copies No. 4 and No. 5 of the transit declaration. The form for the receipt shall correspond to the specimen in Annex 4. Alternatively, the receipt may be made out on specimen on the back of copy No 5 of the transit declaration. The receipt shall be completed in advance by the person concerned. It may contain other particulars relating to the consignment, except in the space reserved for the office of destination. The receipt shall not be used as proof of the procedure having ended within the meaning of Article 11.2.

9.2The office of destination shall return copy No. 5 of the transit declaration to the office of departure without delay and at most within one day of the date when the procedure ended.

Article 10

Expiry of Time Limit

Where the goods are presented at the office of destination after expiry of the time limit prescribed in article 4.3 and where this failure to comply with the time limit is due to circumstances which are explained to the satisfaction of the office of destination and are not attributable to the carrier or the principal, the latter shall be deemed to have complied with the time limit prescribed.

Article 11

Checking the end of the procedure

11.1If copy No. 5 of the transit declaration is not returned to the office of departure within two weeks of the date of acceptance of the declaration, that office shall inform the principal and ask him to furnish proof that the procedure has ended.

11.2The proof may be furnished to the satisfaction of the office of departure in the form of a document certified by the office of destination identifying the goods and establishing that they have been presented there.

11.3A transit procedure shall also be considered as having ended where the principal presents, to the satisfaction of the office of departure, a customs document issued in another country entering the goods for a customs-approved treatment or use in that other country, or a copy or photocopy of such a customs document, which identifies the goods. Copies or photocopies must be certified as being true copies by the customs authorities of the other country.

11.4Where the office of departure has not received proof within four months of the date of acceptance of the transit declaration that the procedure has ended, it shall initiate the recovery procedure in accordance with Chapter 20 of the Code.

Article 12

Individual guarantee

12.1An individual guarantee shall cover the full amount of customs debt liable to be incurred. Where the goods are goods involving a higher risk of fraud, the amount of the guarantee shall be not less than at the rate set out in the fourth column of Annex 1.

12.2Individual guarantees in the form of a cash deposit shall be lodged at the office of departure. and shall be repaid when the procedure has been discharged.

12.3An individual guarantee furnished by a guarantor shall correspond to the specimen in Annex 5. Where the office of departure is not the office of guarantee, the latter shall keep a copy of the instrument by which it has accepted the guarantor’s undertaking. The principal shall present the original at the office of departure, where it shall be retained.

Article 13

Revocation or Cancellation of an Individual Guarantee

13.1If, at any time, the conditions laid down at the time of issue of an Individual Guarantee are no longer fulfilled, the office of guarantee may revoke its decision to accept the guarantor’s undertaking

13.2A guarantor may cancel his undertaking at any time.

13.3A revocation or cancellation shall become effective on the 16th day following the date on which the guarantor or the office of guarantee, as appropriate, is notified.

13.4The office of guarantee responsible shall notify the Director General forthwith of any revocation or cancellation of an individual guarantee and the date on which it becomes effective.

Article 14

Comprehensive guarantee and guarantee waiver

14.1Following an application by a principal, the Director General may authorise the use of a comprehensive guarantee or guarantee waiver.

14.2The authorisation referred to in Article 14.1 shall be granted only to a principal who:

(a) is established in Kosovo;

(b) regularly uses the transit procedure; and

(c) has not committed any serious or repeated offences against the customs or tax legislation.

14.3To ensure the proper management of the comprehensive guarantee or guarantee waiver, authorizations shall only be granted where:

(a) the Customs Service is able to supervise the procedure and carry out controls without an administrative effort disproportionate to the requirements of the person concerned; and

(b) the principal concerned keep records which enable the Customs Service to carry out effective controls.

14.4An application for authorisation to use comprehensive guarantee or guarantee waiver shall be made in writing. It shall be dated and signed and must include all the facts which will allow the Director General to check that the conditions subject to which use of the comprehensive guarantee or guarantee waiver may be granted have been met.

14.5An authorisation to use comprehensive guarantee or guarantee waiver shall be issued, or an application under article 14.1 shall be rejected, within three months of the date on which the application was lodged.

14.6A dated and signed original of the authorisation and one or more copies thereof shall be given to the principal. The authorisation shall be valid from the date of its issue.

14.7A principal holding an authorisation shall inform the Director General of any factor arising after the authorisation was granted which may influence its continuation or content. Any decision revoking or amending an authorisation shall take effect shall on a date to be indicated in that a decision.

14.8The Director General shall keep applications and attached supporting documents, together with a copy of any authorisations issued. Where an application is rejected or an authorisation is annulled or revoked, the application and the decision rejecting or annulling or revoking the application, as the case may be, and all attached supporting documents shall be kept for at least three years from the end of the calendar year in which the application was rejected or the authorization was annulled or revoked.

Article 15

Reference Amount

15.1The Director General may authorise a principal to use a comprehensive guarantee, or guarantee waiver, up to a reference amount.

15.2The office of guarantee shall review the reference amount annually, particularly in the light of information obtained from the office or offices of departure, and shall adjust it if necessary. The principal shall ensure that the amount at stake does not exceed the reference amount, taking into account any operations for which the procedure has not yet ended. The principal shall inform the office of guarantee when the reference amount falls below a level sufficient to cover his current transit operations.

15.3The amount to be covered by the comprehensive guarantee shall be the same as the reference amount referred to in article 15.1.

Article 16

Reduction of a Reference Amount

16.1The Director General may reduce the amount to be covered by a comprehensive guarantee:

(a) to 50 % of the reference amount where the principal demonstrates that his finances are sound and that he has sufficient experience of the transit procedure; and

(b) to 30 % of the reference amount where the principal demonstrates that his finances are sound, that he has sufficient experience of the transit procedure and that he cooperates very closely with the Customs Service.

16.2The Director General may grant a guarantee waiver where the principal demonstrates that he maintains the standards of reliability described in article 16.1(b), is in command of transport operations and has sufficient financial resources to meet any obligation to pay any amount of customs debt due from him.

16.3For the purpose of making any decision under articles 16.1 and 16.2, the Director General shall take into account the criteria set out in Annex 6.

Article 17

Comprehensive Guarantees for Goods Involving a Higher Risk of Fraud

17.1The Director General may authorise a principal to use a comprehensive guarantee in respect of goods involving a higher risk of fraud, where that principal demonstrates to his satisfaction that, not only does the principal meet the conditions of article 16.2, but also that his finances are sound, that he has sufficient experience of the transit procedure and either that he cooperates very closely with the Customs Service or that he is in command of transport operations.

17.2The Director General may reduce the amount to be covered by the comprehensive guarantee referred to in article 17.1:

(a) to 50 % of the reference amount where the principal demonstrates that he cooperates very closely with the Customs Service and is in command of transport operations; and

(b) to 30 % of the reference amount where the principal demonstrates that he cooperates very closely with the Customs Service, is in command of transport operations, and that he has sufficient financial resources to meet any obligation to pay any amount of customs debt due from him.

17.3For the purposes of making any decision under articles 17.1 and 17.2, the Director General shall take account of the criteria set out in Annex 6.

17.4Articles 17.1 to 17.3 also apply where an application concerns the use of a comprehensive guarantee for both goods involving a higher risk of fraud and other goods, under the same comprehensive guarantee certificate.

17.5A comprehensive guarantee shall be furnished by a guarantor and shall be on a document conforming to the specimen in Annex 7.

Article 18

Certificates

18.1On the basis of the authorisation, the office of guarantee shall issue the principal with one or more comprehensive guarantee certificates or guarantee waiver certificates, hereinafter referred to as certificates, drawn up as appropriate on a form corresponding to the specimen in Annex 8 or Annex 9 and supplemented in accordance with Annex 10, to enable the principal to provide proof of the comprehensive guarantee or guarantee waiver. The certificate shall be presented at the office of departure. Particulars of the certificate shall be entered on the transit declaration.