Inbound - Preferential origin
Receipt and storage of supporting documentation
Purpose and use
Receipt and storage of supporting documentation
Where the customer provides proof of preferential origin in relation to an incoming shipment (such as an origin statement or an origin declaration), CS stores that document in the Document Management System (part of VTTI's ERP) with a reference to the respective parcel. The data in the document that is needed in VTTI's business process is registered by CS in the Cargo Documents module in ERP.
Reasonableness check
Upon receipt of the goods, CS verifies the normally applicable import duty rate, referred to as the “MFN rate”, and whether a proof of preferential origin has been provided. If the MFN rate is 0%, the goods are released for free circulation without claiming preferential tariff treatment.
If the MFN rate exceeds 0% and a proof of preferential origin is available, CS performs a reasonableness check. As part of this check, CS assesses whether a preferential arrangement applies between the European Union and the stated country or territory of origin, whether the product concerned is eligible for preferential tariff treatment, which form of proof is required under the arrangement and whether the proof provided appears to meet the applicable requirements and can reasonably be linked to the goods concerned.
The reasonableness check is based on the information and documentation available to VTTI and does not constitute an independent audit of the production process, supply chain or originating status of the good.
The checklist for reviewing origin-related supporting documentation is available here.
Follow-up and escalation
In principle, VTTI does not store goods eligible for preferential tariff treatment under the customs warehouse procedure. Where the proof of origin passes the reasonableness check, VTTI claims preferential tariff treatment and the goods are released for free circulation.
Any doubt, ambiguity or apparent error identified during the reasonableness check is followed up with the customer. CS requests clarification, correction or additional supporting documentation as appropriate and does not rely on the proof of origin while material concerns remain unresolved.
Where the matter cannot be resolved by CS or requires further customs expertise, CS involves the terminal’s customs specialist. Depending on the complexity, potential financial impact or wider compliance implications of the matter, the terminal’s customs specialist may request support from CGT.