Compliance management
Outlining the principles and the working of the CMS.
Customs Procedure Operation
Each Parcel may require a different customs treatment, depending on the type of Operation performed. For that purpose, the first assessment done by CMS is determining the Customs procedure applicable to the Operation. This is done on the following basis:
Basically, when two Products mix, a distinction is made between Blends that involve Bonded goods and Blends that don't.
Blends not involving Bonded Product
In this case, the determination of whether the Operation concerns a Blend depends on whether or not the 8-digit Commodity Code of the products involved is the same. If yes, then the Operation relates to manufacturing. The type of manufacturing is dependent on the Customs status / Type of goods, where, when it involves Excise controlled Product, it is considered Manufacturing under Excise warehouse. When it involves only Domestic (i.e. not Excise controlled) Product then it is considered manufacturing under Free warehouse.
Upon registration of the Blend, the Customs status / Type of goods of the end Product determine the qualification of Manufactured under Excise warehouse for Excise controlled or Manufactured under Free warehouse for Domestic.
Blends including Bonded product
When a Blend does involve Bonded product, a check is done on the Commodity code on a 9-digit level. The reason for looking at the first 9 digits is that this relates to physical characteristics of Products that say something about the quality. For example, 2710 1948 10 versus 2710 1948 90 is different on the basis of sulphur content. 2710 1942 21 versus 2710 1942 29 is, respectively, "Consigned from Canada" and "other". Both paraffinic gas oils. Hence, the 10th digit relates to statistical information and not the physical characteristics.
When the Commodity codes are not the same on a 9-digit level, the Customs Procedure Operation is Inward processing, or, in specific cases a Usual Form of Handling. A Usual Form of Handling requires both the base Product and the Additive to be marked in the product database of CMS as Usual form of Handling.
When the 9-digit Commodity codes are the same, it could still be that the products involved are considered Products of a different quality. This is identified by Quality groups assigned to Products in the Product database in CMS. These quality groups are indicated by the Customer, the owner of the product, having extensive knowledge on quality. In case there are Quality groups assigned to the Parcels involved, then in case they are different, the result is a Blend and the customs procedure Inward Processing applies. In case no Quality Groups are available, the distinction is made on the basis of the (commercial / operational) Product name.
In case the Commodity code on 9-digit level is the same AND the Quality Groups (or Product names) of the Parcels are the same, then, in principle, the result is the Customs procedure Storage for the Operation. An exception to this rule is when it concerns both Bonded and non-Bonded / Union (i.e., Excise controlled or Domestic) Products AND the Bonded Products are subject to preliminary or definitive Anti-Dumping or Countervailing duties. In that case the Products, by law, may not be considered the same Commercial quality and hence it results in a Blend. As a result, the customs procedure Inward processing applies.
In any case, where the result of the assessment is a Customs Blend, where it involves both Bonded and non-Bonded, the User is informed that the operation will result in all Union goods becoming Bonded and the User must actively confirm its intentions.
Business rules
Before starting an operation, the Products involved are declared when required. The determination on what Customs declaration(s) or records are required is based on implemented business rules. For each Transaction coming from ATLAS, the analysis and execution is made available to the user via a screen as included below (Transaction details). Here the User can see what happened from a Customs point of view and find information relating to the Results.
Business rules
In the example above, the Product received is of the Bonded Customs status, discharged into a Tank containing the same Product. Therefore, the result is Storage. The applicable business rule in this case reads as follows:
- The first condition relates to the assessment of the Customs procedure for the operation. In this example, all Parcels are of the same Commodity code AND have the same Quality group "High aromatic oils" not Bonded Product subject to CPM. Hence, the result for the Customs Procedure Operation is Storage;
- The Product declared is of the T1 - Bonded Customs status;
- It is the first time the product on board of the Vessel arrives at the Terminal. This is recognized by the System on the basis of the Parcel not having a Parent reference. In case a parcel has a Parent reference, that means the Parcel comes from another Parcel we have registered before and hence, it is not the first time arrival;
- The Activity type is a Movement.
For the Product on board of the Vessel, all of the above conditions required are met and hence the goods are declared for Customs warehouse via EIDR. As required in relation to the EIDR, a NoP is send.
For the Product in tank, the criteria of "First time arrival" is not met and hence, the business rule does not apply. In the above example, the Parcels have already undergone this process at an earlier stage and are currently under Customs warehouse already for the Bonded Parcels and Free warehouse for the non Bonded Parcels.
Customs declarations or records
The outcome of the business rules define what customs declarations are lodged or what records are recorded. In terms of declarations for the application of customs procedures, the main rule is that declarations are done by means of EIDR. Exceptions to this main rule are:
- Export declarations (B1 and B4). These are done via the normal procedure; and
- In case preferred or required by law the Import declaration (H1).
Simplified Declarations (I1)
Any declaration for the application of customs procedures, excluding Export, is done simplified, regardless of the way the declaration is done (i.e. via EIDR or normal procedure). Inherent to the nature of our business is that at the moment of declaring the goods, only planned quantities are known.
Supplementary Declarations (H.)
Any simplified declaration goes into our supplementary declaration process after entry into the record. Once the quantities are measured and final, ATLAS sends through the ACTUAL figures, and the supplementary declaration is created. The supplementary declarations for Inward processing and Release for Free Circulation are automatically sent in within 10 days after the entry. Below an example of the Processed Supplementary Declaration page:
All Declarations are available content wise from the Transaction Details page, the Declaration overview Page and the Supplementary declaration page. This includes an overview of the messaging and options for a User to utilize with regards to the specific Declaration. Below an example of the part of the Transaction Details Page where the Declarations are listed.
The Declarations can be selected to go to the Declaration details page.
Content declarations
The content of the declarations is determined on the basis of:
- Input from the User on the basis of information received from the Customer via the Nomination. Such as the Product and its Commodity Code, the Customs status, the origin, the customs value, etc.;
- The application of business rules. For example, in case of a Release for Free Circulation the procedure codes are determined on the basis of certain parameters. Below we have included an example where the Current Procedure Code is dictated by the fact that it concerns Excise controlled goods and the Previous Customs Code is based on the fact that it concerns goods coming from IP.
- Defaults for Measure Types. Below some examples of default values for Measure Types, used in the event such Measure Type is applicable for the product declared.
