Community System of Duty Reliefs (CSDR); Notification of
future implementation of Article 123 of EC Regulation
1186/2009 by HMRC and Border Force
Customs Information Paper 14 (2015)
Who should read:
What is it about:
When effective:
Extant until/ Expires
All importers, third party agents, brokers, customs
consultants and logistics specialists involved in
using any of the customs procedures available
under CSDR
Implementation of Article 123 of EC Regulation
1186/2009, whereby approval to use CSDR
arrangements will only be granted by the Customs
Authority of the Member State where those goods
will be put to use, in accordance with the conditions
of those Reliefs.
On publication date.
Indefinitely.
1. Background.
At the November 2014 meeting of the Duty Relief Section of TAXUD Brussels,
the European Commission instructed all Member States Customs Authorities
to strictly implement Article 123 of EC Regulation 1186/2009 immediately.
This Article specifically states that only the Customs Authority where the
goods will be put into use may grant approval/permission for that Relief.
The Article is quoted in full, for reference, in Section 2 below, along with
general information on future consequences of the Article’s proper
implementation.
2. Implementation and consequences.
Article 123 is found within EC Regulation 1186/2009, Title IV – General &
Final Provisions:
Article 123
Where relief from import duties is granted conditional upon goods being put to
a particular use by the recipient, only the competent authorities of the Member
State in whose territory the said goods are to be put to such a use may grant
this relief.
In most current cases involving CSDR arrangements, the goods will be put to
use by the final recipients or customers within the UK, so the usual granting of
permission or approval to use the Reliefs will remain unaffected.
However, where different situations involve the goods being delivered to a
final destination or specific recipient or customer based in another Member
State, HMRC as the UK Customs Authority will not be able to grant Relief
under CSDR for those imported consignments.
For example: Any goods that arrive in the UK but are ultimately destined for
another Member State where the relief will be claimed, cannot be entered into
that relief in the UK.
In these circumstances the goods must be entered to a transit procedure first
and then declared to customs using the appropriate relief procedure in the EU
country of final destination.
Additional guidance on Transit procedures can be found on gov.uk:
https://www.gov.uk/transit-and-other-suspensive-regimes
Information for EU details on Transit, including the ‘Transit Network Address
Book’ can be found on the European Commission site:
http://ec.europa.eu/taxation_customs/customs/procedural_aspects/transit/com
mon_community/index_en.htm
3. Further Information.
This Customs Information Paper (CIP) has been published to provide
importers and users of these Reliefs the necessary notification of future
implementation of Article 123.
It will be supported further by other CIPs that will invite consultation and
discussion and provide additional details for certain specific procedures and
Reliefs.
These additional CIPs will cover certain aspects, including:
 Transfer of Residence (ToR) and related personal property Reliefs;
 Reliefs for use by Charities and for goods for Disabled Persons use;
 Reliefs available for importing Low-Value Goods and Gifts.
4. HMRC contact details
Requests for further information on the planned publications and expressions
of interest may be made in writing and submitted by email to:
Customs Policy Contact:
CSDR and ToR Policy Advisor Tim Gordon
E-mail: policy.internationalpostal@hmrc.gsi.gov.uk
Issued on the 2 April 2015 by Customs Directorate, HMRC.
For general HMRC queries speak to the VAT, Excise and Customs Helpline on Telephone:
0300 200 3700.
Your Charter explains what you can expect from us and what we expect from you.
For more information go to: Your Charter