Inbound - Preferential origin
Receipt andof storagea nomination indicating preferential status
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,goods for which preferential status is claimed by the customer, 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 of the product is 0%, the goodsproduct areis released for free circulation without claiming preferential tariff treatment.
treatment, as there is no financial benefit in claiming preferential treatment for such products.
If the MFN rate exceeds 0%,
Reasonableness check
To assess if preferential treatment can be claimed, CS performs a reasonableness check. As part of this check, CS assesses whetherthe following:
- Whether a free trade agreement or similar preferential arrangement applies between the European Union and the stated country or territory of
origin, whetherorigin; - Whether the product concerned is eligible for preferential tariff
treatment,treatmentwhichunder the applicable trade agreement, based on its commodity code; - Which form of proof is required under the
arrangementapplicableandtradewhetheragreement; - Whether the proof of origin provided
appears to meetmeets the applicablerequirementsrequirements; and - Whether the proof of origin 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.
Storage and registration in ERP
Where the proof of preferential origin provided by the customer is approved following the reasonableness check, CS stores the 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.
Follow-up and escalation
In principle, VTTI does not store goodsProduct eligible for preferential tarifftreatment treatmentis in principle directly brought into free circulation, as there is in principle no (financial) benefit in storing the product 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.