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End-use procedure

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Under the end-use procedure, goods may be released for free circulation on account of their specific end-use free of duty or at a reduced rate of duty, provided that the goods are used for the prescribed purpose under customs supervision.

The procedure may be applied only after obtaining customs authorisation.

The ways of preparing and submitting applications for authorisation to customs are set out in the Description of the procedure for granting authorisations to apply the special procedure of end-use and processing (Order No 1B-344 of the Director General of the Customs Department of 28 April 2016).

What goods end-use applies to

The end-use procedure may be applied to goods which, because of their specific end-use, are wholly or partly relieved from import duties.

Important

Once goods are released for free circulation under end-use conditions, they:

  • remain under customs supervision
  • must be used only for the prescribed purpose on account of which the duty relief is granted

How to apply for authorisation to use the end-use procedure

An application for authorisation may be submitted in two ways:

Method 1 – the application is submitted electronically via the trader portal of the Customs Decisions System (CDS) → https://customs.ec.europa.eu/tpui-cdms-web/:

  • to the territorial customs office for the place where the applicant's accounting records and related documents are kept or accessible
  • electronic copies of all necessary documents are submitted together with the application
  • notification of the granting of the authorisation is given by means of the CDS

Method 2 – electronic import declaration:

  • the submission of an electronic import declaration containing the additional required information, by means of the smart Customs Declaration Processing System (iMDAS), is considered to constitute the application
  • the declaration is submitted to the post of the territorial customs office responsible for the place where the applicant intends to use the goods for their intended end-use
  • the authorisation is considered granted when the notification “Release for import” (electronic message IE429) is received by means of iMDAS

The second method of granting authorisation does not apply where:

  • the authorisation applied for is to be valid in more than one European Union Member State (e.g. in the Republic of Lithuania and the Republic of Latvia)
  • in certain other cases provided for in legislation (Article 163(2) of Commission Delegated Regulation (EU) No 2015/2446)

Rate of yield

Where appropriate in view of the nature of the end-use specified in the authorisation, customs, having assessed the information submitted for the authorisation, determines:

  • the rate of yield, or
  • the average rate of yield, or
  • the method for establishing the rate of yield

The rate of yield determined may be adjusted.

Provision of a guarantee

When declaring goods for placing under the end-use procedure, a guarantee in any prescribed form must be provided, to cover the payment of any import duties that may become due should the procedure not be duly discharged.

The guarantee is waived when customs establishes that the end-use procedure has been discharged in the prescribed manner.

Period for applying the end-use procedure

The procedure must be discharged within the period set by customs.

Within a period not exceeding 30 days from the end of the period set in the authorisation for discharging the procedure, the holder of the authorisation must submit a duly completed End-use Procedure Discharge Document, in the prescribed manner (Order No 1B-1086 of the Director General of the Customs Department of 21 December 2017).

How the end-use procedure is discharged

The end-use procedure is considered discharged when one of the following conditions is met:

  • the goods are used for the purpose specified in the authorisation, on account of which they:
    • are relieved from import duty, or
    • are subject to a reduced rate of duty
  • or the goods, having been declared for a chosen customs procedure, are:
    • taken out of the customs territory of the Union
    • destroyed under customs authorisation
    • abandoned to the State
  • or, upon payment of the resulting customs debt, are put to use for a purpose other than that specified in the authorisation

Legal basis

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