Customs and excise process

Customs and excise authorisations
To facilitate the terminal operations from a customs and excise perspective, VTTI holds the following customs and excise authorisations: 
 The customs authorisations are applicable to the operations at ETT and ETA. The customs warehouse authorisation has a cross-border scope and is, besides ETT and ETA also applicable to VTTV. The customs and excise authorisations are crucial for the continuity of VTTI's terminal operations. Their scope determines which operations the terminal can/cannot execute (e.g., which products can be stored, which can be blended, etc.) As such. VTTI has implemented measures to prevent non-compliance with authorisation requirements, exceeding the scope of the authorisations, and the unintended expiry of an authorisation. See risk R-01 in the Risk Register.

Customs and excise status
The goods handled at VTTI’s terminals may come from various parts of the world and are intended for international markets. Depending on their provenance, the instructions from VTTI's customer and the intended use, the customs and excise status of the goods stored at the terminals can be as follows: Bonded (i.e., Non-union goods)  Equivalent (i.e., Union goods used as non-Union goods under a customs procedure) Excise-suspended (i.e., Union goods, subject to excise controls) Excise-paid (i.e., Union goods, release for consumption) Free (i.e., Union goods, not subject to excise controls) The customs and excise status is always visible in real time in VTTI’s ERP system. AANPASSEN Free - domestic AAD - excise controlled T1 - bonded

General declaration process
(tbd)

Clearance customs documents
During the month and ultimately with creating the monthly stock reports, it is checked if there are any outstanding transit documents and/or e-AD’s that have not been cleared within the timeframe one may expect.  In case documents are not cleared within the expected timeframe the customers are informed accordingly.

Discharge
When receiving goods, the following processes are applied to ensure proper recording in VTTI's record keeping and lodging of the required customs declarations. 
 The procedure that is followed by CS and OPS is included as annex. Please note that this is an EU wide procedure and may cover activities that are not applicable to the respective country (e.g. operations at buoys). A link to VTTI's "C&E - Discharge procedure" is included here. Related work instructions to discharges are available in QOL.

Storage, blending and transshipment
Terminal Storage The terminal location is authorised as a customs warehouse, comprising of the complete infrastructure of tanks, pipelines, jetties and refinery. To optimize storage capacity and avoid disproportionate costs, accounting segregation is applied and non-Union and Union goods are commonly stored. VTTI’s ERP system facilitates an inventory module where an audit trail is provided regarding all goods at the terminal for their entire lifecycle, clearly identifying the type of goods, the customs status and, where appropriate, the origin. The following process applies to any movement of goods at the terminal with regard to applying the correct customs procedures and rules around customs status. 
 A link to the "C&E - Storage of goods" procedure is included  here . At the terminal, various manipulations take place. All manipulations are recorded in VTTI’s ERP by means of activities to ensure a complete audit trail. A link to the “C&E – Orders related to manipulations during storage” procedure is included here . Movements of goods in VTTI’s terminal, tank to tank transfers, may also require customs declarations, depending on whether or not the movement results in a blend. A link to “C&E – Tank to tank transfer” is included here . Cross Border Customs Warehouse including Equivalent goods Due to economic needs and with a view on sustainability, VTTI Terminals II B.V. has implemented a cross-border Customs Warehouse authorisation between the Netherlands and Cyprus. The longer-term goal is to also implement centralized clearance, which will deliver significant cost and time savings. A link to VTTI's “Equivalent goods” procedure is included here . Related work instructions to terminal activities are available in VTTI’s quality management system QOL.

Load
When loading goods, the applicable customs procedure is defined by the customs status of the product to be loaded and the destination. 
 The procedure that is followed by CS and OPS is included as annex. A link to VTTI's "C&E - Loads" procedure is included here . Related work instructions to loads are available in VTTI’s quality management system QOL.

Schematic overview