Customs and excise data elements

 

Introduction

Accurate and complete customs data is essential for maintaining VTTI’s customs records and preparing customs declarations. This chapter describes how the most important customs data elements are established and controlled.

When considering the allocation of risk and responsibility for determining these customs data elements, a distinction should be made between the public law and private law perspectives.

From a public law perspective, more specifically customs and excise legislation, VTTI bears responsibility towards the customs authorities for the accuracy and completeness of the information contained in any customs declaration it lodges and for the authenticity, accuracy and validity of the documents supporting the declaration. This responsibility applies regardless of whether the declaration is lodged in VTTI’s own name or on behalf of a customer under customs representation.

From a private law perspective, the customer is responsible for providing VTTI, in a timely manner, with the information and documentation required to determine the relevant customs data elements and to prepare a complete, correct and timely customs declaration. This responsibility is reflected in the general terms and conditions applicable between VTTI and its customers.

VTTI is generally not the owner, seller, purchaser, manufacturer or producer of the goods. Consequently, VTTI has limited independent visibility of the characteristics and composition of the goods, the underlying supply chain and transactions, the contractual arrangements between the parties involved, and the production or sourcing circumstances relevant to the determination of customs classification, value and origin. VTTI therefore necessarily relies to a significant extent on information and documentation provided by the customer.

From a practical perspective, the determination of customs data elements therefore requires cooperation between VTTI and the customer. The customer provides the relevant information and supporting documentation through the nomination process. On the basis of this information, VTTI determines or records the customs data elements required for its customs records and declarations in accordance with the procedures described in this chapter.

CS performs predefined completeness, consistency, sanity and reasonableness checks on the information and documentation provided by the customer. The nature and extent of these checks depend on the customs data element concerned, the information reasonably available to VTTI and the circumstances of the transaction. These checks do not replace the customer’s responsibility for assessing and substantiating facts and circumstances that are known to the customer but cannot reasonably be independently established by VTTI.

Where required information or documentation is missing, or where a reasonableness check identifies an apparent error, inconsistency or other reason for doubt, CS follows up with the customer before the relevant information is recorded or used in a customs declaration. Where appropriate, CS consults the Customs Specialists at the terminal to determine the required treatment or further action. Where the matter requires further specialist assessment due to its complexity, significance or potential compliance impact, the Customs Specialists at the terminal escalate the matter to CGT.

The relevant customs data elements, supporting information and documentation are recorded or archived in VTTI’s ERP system and CMS. These systems provide an audit trail between the customer’s nomination, the customs data used in VTTI’s administration and the resulting customs declarations.

Classification

The customer, as owner of the goods, is required to provide the CN code of the product that will be discharged and/or blended (i.e., the CN code of the end product in case of a blend). VTTI’s CS typically receives product analyses which are used to verify the CN code provided by the customer. The CN code provided by the customer is leading and is verified on the basis of incoming customs documentation and product analysis reports in accordance with attached procedure. Should the product analysis show characteristics that contradict with the customer’s nomination, CS will liaise with the customer before the goods are moved to ensure a correct customs declaration can be lodged.

A link to VTTI's "C&E Classification" procedure is included here


VTTI maintains a product database on the basis of the information received from VTTI’s customers and links the products to the appropriate tax treatment. Attached procedure provides specific details on how the product database is maintained.

A link to VTTI's “IT – Product masterdata” procedure is included here.

Customs value

When a parcel is registered in the terminal's ERP system, the value of that parcel is recorded by CS in line with the current market value. As such, all parcels registered in the ERP system are accompanied by a value.

The value becomes relevant for customs purposes when an import declaration is submitted. Where the applicable import duty rate is 0%, the goods qualify for preferential treatment upon import, or where a specific duty applies (i.e., duties are not calculated over the value but over another factor such as weight), the customs value declared serves a purely statistical purpose and has no financial impact. In such cases, VTTI has agreed with the customs authorities to use the market value registered for the parcel as the customs value.

If the import duty rate exceeds 0%, no preferential treatment applies or customs duties due are calculated on an ad valorem basis, the customs value will be determined in accordance with the general customs valuation framework of the UCC. This means that the customs value will in principle be determined in line with the transaction value method.


Origin

When an incoming parcel is registered in the terminal’s ERP system, the country of non-preferential origin indicated by the customer in the nomination is recorded by CS. The country of non-preferential origin must be provided before the goods can be accepted at the terminal. Any origin documentation provided by the customer is retained in the Document Management System and linked to the relevant parcel. CS performs a reasonableness check on the origin information and supporting documentation before relying on it for customs or compliance purposes.

Non-preferential origin is relevant for customs declarations and for the application of commercial policy measures, such as sanctions and anti-dumping duties. Where goods leave the terminal without having undergone processing or blending that may affect their origin, VTTI uses the non-preferential origin recorded for the relevant incoming parcel or parcels. Where goods have been blended or otherwise processed at the terminal, VTTI determines the non-preferential origin of the resulting product on the basis of the applicable origin rules and the information available in the terminal’s systems. Until that determination has been completed, no specific country of origin may be used for the resulting product.

Preferential origin becomes relevant where preferential tariff treatment is claimed upon import or where the customer requests a proof of preferential origin for an outbound shipment. For incoming goods, preferential tariff treatment is only claimed where the normally applicable import duty rate exceeds 0%, a preferential arrangement applies and a valid proof of origin is available. For outgoing goods, VTTI only issues, makes out or facilitates a proof of preferential origin where the originating status of the product has been established and substantiated under the applicable preferential arrangement. Where goods have been blended or processed at the terminal, this requires a separate assessment under the product-specific origin rules of the relevant arrangement.

VTTI relies on the origin information and supporting documentation provided by the customer for the goods and materials before their arrival at the terminal. VTTI supplements this information with its own records of the storage, movement, blending and processing activities performed at the terminal. Where the available information is incomplete, inconsistent or gives rise to doubt, VTTI will request clarification or additional supporting documentation. VTTI will not use an origin for customs or compliance purposes, claim preferential tariff treatment or issue, make out or facilitate origin documentation while material concerns remain unresolved.


More practical details on origin are included in VTTI's Origin procedure, which can be found here.



Quantities

Establishing the quantities of the goods VTTI handles is the responsibility of OPS. Quantities are typically established by means of ENRAF, VTTI’s automated gauging system which is certified. In case of specific reasons, the ENRAF readings turn out to be unreliable, the ENRAF reading can be overwritten with clear explanations as to why the reading was overwritten.