«Customs Staff Manual on SHIPS STORES Customs Procedures Branch Nenagh UPDATED MAY 2016 Queries: shipsstores VPN 63380/63191 This manual ...»
Customs Staff Manual on
Customs Procedures Branch
UPDATED MAY 2016
This manual provides a guide to the law on Ships Stores and Ships Reporting obligations. It is
not a legal interpretation of the relevant legislation and should be read in conjunction with that
TABLE OF CONTENTS
2. GLOSSARY OF TERMS USED IN THIS MANUAL
3. DESCRIPTION OF THE FORMS IN USE
5. SHIPS ARRIVING IN AND/OR DEPARTING FROM PORTS OF THEMEMBER STATES OF THE UNION
6. SHIPMENT OF STORES
7. SHIPS SURPLUS STORES
8 DUTIABLE GOODS IN THE POSSESSION OF THE CREW
9. DUTY-FREE STORES FOR YACHTS/BOATS OF LESS THAN 40 TONS.17
10. TREATMENT OF YACHT STORES
11. SHIPMENT OF DUTIABLE STORES ON VESSELS OF THE IRISHNAVAL SERVICE
12 TREATMENT OF FOREIGN NAVAL VESSELS AND GOVERNMENTVESSELS
13. SHIPS STORES ON OIL/GAS RIGS/PLATFORMS AND STANDBY/SUPPORT VESSELS AND RESEARCH FACILITIES ANDRESEARCH BOATS
14. DOUBTS AND DIFFICULTIES:
CUSTOMS STAFF MANUAL ON SHIPS STORES
1. INTRODUCTION This Manual deals with all aspects of Ships Stores including the Customs formalities to be observed when goods are delivered as ships stores.
These instructions apply to voyages to and from both EU and non EU Countries with the exception of a voyage commencing or terminating in Northern Ireland.
The procedures outlined in this Manual also apply to Aircraft Stores, with obvious modifications where the context so requires.
Delivery of valuable excisable products to ships free of duty represents a risk to the exchequer. Staff must be aware of the possibilities for diversion of such products being smuggled into the State. Therefore, it is essential that adequate controls, including those in tax warehouses, be exercised at all stages of the supply chain for such products.
2. GLOSSARY OF TERMS USED IN THIS MANUALCNET – The national seizure register which records details of customs seizures and declarations.
Crew - Crew of ships, boats and yachts used in international travel irrespective of the place from which the crew member arrives or of their place of residence.
Duty – means Excise duty and Value Added Tax payable on drink, tobacco and other excisable products, and for all other products duty means Value Added Tax.
FAL Forms – The forms prescribed by the International Maritime Organisation for the reporting and exchange of maritime information.
Foreign voyage - a voyage to or from a place outside State Waters, with the exception of a voyage commencing or terminating in Northern Ireland.
Northern Ireland is excluded on the basis that Ship Stores should only be consumed outside of EU State Waters. No vessel departing from the Republic of Ireland for a destination in Northern Ireland should normally have any need to depart EU waters and therefore the shipment of Ships Stores should not arise.
In the case of vessels of the Irish Naval Service a foreign voyage may also include patrol of the 200 mile economic zone.
In the case of fishing vessels, departure must be to fishing grounds situated outside the
area bounded by the following limits:
(a) The North Sea and the English Channel, Latitude 48o 30´N, (b) Longitude 12o O´ W and (c)
Note: Limits (b), (c) and (d) equate roughly with the fishing grounds in the near West Atlantic from Brest up to the Shetlands and outside 80 miles from the west coast of Ireland.
IMO FAL Convention - The International Maritime Organisation’s Convention on Facilitation of International Maritime Traffic adopted by the International Conference on Facilitation of Maritime Travel and Transport on 9 April 1965.
SafeSeasIreland (SSI) - an IT network developed by the Minister for Transport under Article 22a of Council Directive 2002/59/EC, which standardises the way maritime information is exchanged.
Ships Stores - Dutiable goods delivered tax-free from a warehouse to ships, for use on voyages beyond State waters and including such goods for use on oil and gas rigs or production platforms operating outside State waters.
Ship’s Stores Declaration – See FAL FORM 3 State Waters - means Internal Waters and Territorial Seas of the State defined by Part 3, section 93(7)(2) of the Sea-Fisheries and Maritime Jurisdiction Act, 2006 Surplus Stores - Stores surplus to immediate requirements which remain unused at the end of a voyage or which have not yet been issued to crew or passengers. They are usually stored on board in a special lock-up capable of being sealed.
3. DESCRIPTION OF THE FORMS IN USEFAL Form 1 – General Declaration. This form provides information relating to the vessel on its arrival into the State and departure from the State. It should be dated and signed or otherwise authenticated by the Master of the ship or by the ship’s agent or by any other person duly authorised by the Master.
FAL Form 3 - Ship’s Stores Declaration. This form must contain details of all the dutiable stores carried on the vessel on arrival and departure and also particulars of stores issued. Details of any small packages of merchandise or small addressed packages or presents should also be included on this form. It must be dated and signed, or otherwise authenticated, by the Master or an officer duly authorised by the Master and having personal knowledge of the facts regarding the ship’s stores (See Ships Stores definition) The FAL Form 3 must be completed on arrival and at departure of the vessel.
FAL Form 4 - Crews’ Effects Declaration. This form provides details of crews’ private stores, i.e. all dutiable goods in their possession on arrival in the State. It is not required on departure. It must be dated and signed or otherwise authenticated, by the Master or an officer duly authorised by the Master. It does not contain any details of goods listed on the FAL Form 3 (Ship’s Stores Declaration).
CUSTOMS STAFF MANUAL ON SHIPS STORESPage |5 FAL Form 5 – Crew List. This form provides information relating to the number and composition of the crew on the arrival and departure of a ship. When information is required about the crew of a ship on its departure, a copy of the crew list presented on arrival should be accepted on departure if signed again and endorsed to indicate any change in the number or composition of the crew or to indicate that no such change has occurred. This form should be dated and signed, or otherwise authenticated, by the Master or an officer duly authorised by the Master.
FAL Form 6 - Passenger List. This form should only be used in the case of ships certified to carry 12 passengers or fewer where such information is required by Revenue. It should be dated and signed, or otherwise authenticated, by the Master, the ship’s agent or any other person duly authorised by the Master. FAL Form 6 must be completed on arrival and at departure of the vessel. Note: There is no standardised form provided for ships certified to carry more than 12 passengers.
C&E 1071 - Ferry Crews Long Term Declaration. This form may be used in place of FAL Form 4 in respect of crews of sea ferries on scheduled passenger services between Ireland & U.K. and Ireland & France C&E 1116 – Warehouse Warrant. This form is used to control the movement of excisable products leaving a warehouse and should be completed in triplicate. Copy 1 is the dispatching warehouse keeper’s copy. Copies 2 and 3 should accompany the goods from the warehouse and copy 3 is returned as a certificate of receipt to be retained by the warehouse keeper with copy 1. Actual quantities received should be specified and any discrepancies between the amount advised and that received should be endorsed on this form. Further information on the use of this Form is contained in paragraph 14.4.1 of Public Notice ref: PN1877
Relief from Excise Duty Section 77(aa) of the Finance Act 2003, as inserted by Section 75(c) of the Finance Act 2012, provides a relief from alcohol products tax for ships stores.
Section 77(1)(e) of the Finance Act 2005, as substituted by Section 76(f) of the Finance Act 2012, provides a relief from tobacco products tax for ships stores.
Section 100 of the Finance Act 1999, as substituted by Section 78(1)(q) of the Finance Act 2012, provides a relief from mineral oil tax on mineral oil used as fuel for the purpose of sea navigation, including sea-fishing but not including private pleasure navigation, and heavy oil used for the purpose of air navigation other than private flying.
Regulations 10 and 11 of the European Communities (Tax Exemption for Certain Non-Commercial Goods Imported in the Personal Luggage of Travellers from Third Countries) Regulations 2008. (S.I. No. 480/2008)
Relief from VAT Paragraph 4 of Schedule 2 of the VAT Consolidation Act, 2010 provides for the zero rating of VAT on maintenance equipment and goods for the fuelling and provisioning of commercial or industrial sea-going vessels and aircraft.
The combined effect of this legislation on the tax treatment of Ships Stores can be
summarised as follows:
NOTE: The restrictions set out in paragraph 6.2 apply to all Excisable products.
Export SAD Required Article 269 (2)(c) and (3)of the Union Customs Code Regulation (EU) no. 952/2013 provides that a customs declaration (export SAD) is required for ships stores loaded on board a vessel regardless of the destination of the vessel.
Simplified Procedure Simplified procedures for ship stores set out in Article 150 of Commission Delegated Regulation (EU) 2015/2446 and Article 233-236 and 335 of Commission Implementing Regulation (EU) 2015/2447 may be used. For example operators involved in the supply of ships stores may be authorised by customs to enter in their records the exported goods and to report their export operations on a periodic basis after the goods have left the customs territory of the Union. The following simplified
CN codes should be used in export declarations for ship stores:
Further information on Simplified Procedures is available on our website in Public Notice Simplified Declaration Procedure at Export.
Reporting Formalities Directive 2010/65/EC prescribes the reporting formalities for maritime transport. It has been transposed into Irish law by European Union (Reporting Formalities for Ships) Regulations 2012. (S.I. 166 of 2012) Article 20 of Regulation (EC) No. 113/2010
5. SHIPS ARRIVING IN AND/OR DEPARTING FROM PORTS OF THE
MEMBER STATES OF THE UNIONFormalities for Ships arriving in and/or departing from Ports of the Member States of the Union, as outlined in Directive 2010/65/EC, should be fulfilled using the FAL forms described in paragraph 3. It is the responsibility of the ship’s master, or other person duly authorised by the operator of the ship, to report this information in the required format to the competent authority. They should be submitted, at the latest, at the time of arrival of the ship, but ideally as soon as possible after departure of the ship from the port of departure. On departure, the FAL forms should be submitted no later than 24 hours after departure of the ship.
The FAL forms should be submitted using SafeSeasIreland or, where this is unavailable for technical reasons, by fax or email. Permanent copies of the submitted forms must be retained on board the vessel for possible inspection by Revenue Officials in the event of boarding carried out at sea. Revenue Officials responsible for monitoring compliance with these reporting requirements should access SafeSeasIreland on a regular basis so that any infringements are identified and pursued with the relevant Ships’ Master without delay.
6. SHIPMENT OF STORES
6.1 Entitlement to Duty-free stores Dutiable stores may be shipped free of duty on ships and boats departing on a foreign voyage from the State, for the use of the Master, officers, crew and passengers on board. In the case of fishing vessels, departure must be to fishing grounds as set out in the glossary of terms (see paragraph 2 and 6.8). Provisions relating to shipment of dutiable stores on vessels of the Irish Naval Service are set out in paragraph 11 and provisions relating to the shipment of dutiable stores on oil/gas rigs/platforms and supply/stand-by vessels are dealt with in paragraph 13.
6.2 Quantities Allowed
The quantities of tobacco and alcohol allowed are, as a general rule, to be restricted to quantities sufficient to increase the stores left on board under seal to the quantities allowed for the duration of the voyage (See paragraph 6.3). No limitation need be placed on the quantities of other dutiable goods shipped as stores, unless, having regard to the nature of the voyage and the number of persons on board, there is reason to suspect that the goods are being exported as merchandise under the guise of ships stores.
ALCOHOL & TOBACCO The quantities of tobacco products and alcohol allowed are to be calculated on the following basis:a) Master, Officers, Crew.
Tobacco products: 50g tobacco, including cigars (up to 50g weight) or 40 cigarettes, per person per day.
Additional quantities of duty-free tobacco goods may be allowed where the quantity requested is marginally in excess of these allowances e.g., where it is desired to ship in complete packages.
Spirits: 0.142(1/7) litre spirits per person per day;
Beer and Wine: Allow as requested provided the request is reasonable taking into account the number of Officers and Crew on board and the duration of the voyage (b) Passengers.