UCC Delegated Act Amendments Series #8: New Opportunity for Companies Storing Mineral Products (Fuels, Oils, Etc.) and Organic Chemicals

Fri , 17 May 2019 | Customs, Compliance, import, export, customs manager, CAS, customs4trade, UCC, End use, Mineral products, Mixed storage

Thank you for following our series on important changes to the UCC Delegated Act. We are highlighting amendments that present new opportunities for importers and exporters. In this article we focus on allowances for the mixed storage of mineral fuels, mineral oils, and other bituminous substances with organic chemicals or crude petroleum oils.

UCC mixed storage end use authorisation duty exemption

The amendment allows for:

  • mixed storage of mineral fuels, mineral oils and products of their distillation, bituminous substances, and mineral waxes (Chapters 27 and 29 of the Combined Nomenclature) with organic chemicals and
  • mixed storage of the above mentioned substances with crude petroleum oils.

In cases of mixed storage, the end-use authorisation shall be used, since it establishes means and methods of identification customs supervision. Under the end-use procedure, goods may be released for free circulation under a duty exemption or at a reduced rate on account of their specific use. The customs authorities may establish in the authorisation the specific purposes for which the goods may be used in order to qualify for the duty exemption or reduced rate. When using the end-use procedure, the holder is required to file a bill of discharge.

In cases where the products to be placed in the mixed storage location do not fall within the same eight-digit CN code or do not share the same commercial quality and the same technical and physical characteristics, mixed storage may be allowed only when the whole mixture is to undergo a treatment, e.g., vacuum distillation, re-distillation by means of fractionation process, cracking, reforming, and polymerization.

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