European Communities (Value-Added Tax) (Exemption on Temporary Importation of Certain Goods) Regulations, 1986.

• Date: 28 July 1986
• Statutory Instrument No.: 264/1986

S.I. No. 264 of 1986.

EUROPEAN COMMUNITIES (VALUE-ADDED TAX) (EXEMPTION ON TEMPORARY IMPORTATION OF CERTAIN GOODS) REGULATIONS, 1986.

I, JOHN BRUTON, Minister for Finance, in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 (No. 27 of 1972), and for the purposes of giving effect to Council Directive No. 85/362/EEC of 16 July, 19851 hereby make the following Regulations:

1O.J No. L192, 24 July, 1985 p.20-28 1. (1) These Regulations may be cited as the European Communities (Value-Added Tax) (Exemption on Temporary Importation of Certain Goods) Regulations, 1986.

(2) These Regulations shall be deemed to have come into operation on the 1st day of January, 1986.

(3) These Regulations shall be construed together with the Act and the Customs Acts and any instrument relating to customs made under statute.

(4) Means of transport, pallets and containers are excluded from the scope of these Regulations.

(5) In these Regulations—

"the Act" means the Value-Added Tax Act, 1972 (No. 22 of 1972);

"the Community" means the territory of the Member States of the European Economic Community where Council Directive No. 77/388/EEC of 17 May, 19772 applies;

2O.J No. L145, 13 June, 1977 p. 140

"Member State" means a Member State of the Community;

"person" means a natural or legal person;

"tax" means value-added tax;

"temporary importation exemption" means the arrangements whereby goods, which are intended to remain temporarily in the territory of the State and to be re-exported, may be imported with exemption from tax in accordance with the conditions laid down by these Regulations.

(6) A word or expression that is used in these Regulation and is also used in Council Directive No. 85/362/EEC of 16 July, 1985 shall, unless the context otherwise requires, have the meaning in these Regulations that it has in that Directive.

(7) A reference to a Regulation is to a Regulation of these Regulations and a reference to a paragraph, subparagraph or clause is to a paragraph, subparagraph or clause of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended. 2. The Revenue Commissioners shall, subject to the provisions of these Regulations and such conditions as the said Commissioners may impose, grant temporary importation exemption for goods temporarily imported into the State from another Member State, provided that they are satisfied that such goods—

( a ) are intended to be re-exported from the State without alteration;

( b ) satisfy the conditions laid down in Articles 9 and 10 of the Treaty establishing the European Economic Community or, in the case of goods falling under the Treaty establishing the European Coal and Steel Community, are in free circulation;

( c ) have been acquired subject to the rules governing the application of tax in the Member State of exportation and have not benefited by virtue of their exportation, from any relief from tax;

( d ) belong to a person established outside the State; and

( e ) are not consumable goods. 3. (1) Subject to paragraph (2), goods imported into the State from an other Member State which do not qualify for temporary importation exemption under Regulation 2 shall qualify for such exemption if, had they been imported from outside the Community, they would qualify for such exemption under any of the Regulations 14 to 29.

(2) Temporary importation exemption shall not be granted in any case where—

(a) the goods meet the conditions laid down in Article 9 and 10 of the Treaty establishing the European Economic Community;

(b) the goods were not acquired pursuant to the rules governing the application of tax in the Member State of exportation or, by virtue of being exported, benefited from exemption from tax; and

(c) the importer is a non-taxable person or is a taxable person not entitled to deduction of tax in full. 4. The Revenue Commissioners shall, subject to the provisions of these Regulations and such conditions as the said Commissioners may impose, grant temporary importation exemption for goods imported temporarily into the State from a country outside the Community where the goods qualify for such exemption under any of the Regulations 14 to 29. 5. (1) Subject to paragraph (2), the Revenue Commissioners may require security to be given at the time of granting temporary importation exemption to ensure payment of any tax which may become due if a chargeable event within the meaning of Regulation 12 should occur, and where such security is required—

(a) the person to whom temporary importation exemption has been granted may choose whether it shall be given by—

(i) making a cash deposit in Irish pounds,

(ii) a guarantor who has his normal residence or an establishment in the State and who is approved by the Revenue Commissioners, or

(iii) any other guarantee acceptable to the Revenue Commissioners;

(b) it shall not exceed the amount of tax that would have been due on the value of the goods at the time of their importation if they had been declared for home use at that time.

(2) No security shall be required—

(a) for goods covered by the procedure provided for in Council Regulation (EEC) No. 3/84 of 19 December, 1983;3

3OJ No. L2, 4 January, 1984 p. 1

(b) for goods imported either from another Member State or from a country outside the Community in the cases referred to in Annex 1 of Commission Regulation (EEC) No. 1751/84 of 13 June, 19844 and Articles 3 and 33 of Council Regulation (EEC) No. 3599/82 of 21 December, 19825.

4OJ No. L171, 29 June, 1984 p. 1

5OJ No. L376, 21 December, 1982 p. 1 6. The provisions of Commission Regulation (EEC) No. 1751/84 other than Articles 22, 23, 29 and 30 of the said Regulation shall apply to importations under these Regulations as if the tax were a customs duty or charge or levy to which Council Regulation (EEC) No. 3599/82 applied and such a duty, charge or levy applied to importations from other Member States as well as to importations from countries outside the Community. 7. The Revenue Commissioners may refuse to grant temporary importation exemption in cases where—

(a) they consider it impossible to identify the goods or to verify their use in the State;

(b) the guarantees considered necessary are not provided by the person requesting such exemption; or

(c) the person requesting the exemption has previously made improper use of such exemption or has committed a serious infringement of customs or fiscal legislation. 8. (1) The Revenue Commissioners may require persons to whom they have granted temporary importation exemption to make available for inspection at times and places that are reasonable the goods which are the subject of such exemption together with all relevant documents.

(2) The Revenue Commissioners may revoke temporary importation exemption if they find that a person to whom such exemption has been granted has not satisfied the provisions of these Regulations. 9. (1) The Revenue Commissioners shall fix the period during which goods may remain in the State under temporary importation exemption arrangements under these Regulations but, without prejudice to the limits laid down in Regulations 16, 17, 18, 20, 23, 28 and 30, the maximum duration of this period shall be 24 months.

(2) Notwithstanding paragraph (1), the Revenue Commissioners may, in exceptional circumstances and at their absolute discretion, on request by the person to whom temporary importation exemption has been granted extend, within reasonable limits and subject to the provisions of these Regulations, the periods referred to in paragraph (1). 10. The Revenue Commissioners shall on request by any person authorise the transfer of the temporary importation exemption to that person, where he satisfies the conditions laid down in these Regulations and assumes all the obligations imposed on the person to whom the temporary importation exemption was first granted, in particular those arising from the fixing of the period during which the goods in question may remain under the said exemption. 11. Where goods, in respect of which temporary importation exemption applies, are supplied, tax shall not be chargeable provided that the purchaser is a person established outside the State and the goods continue to remain eligible for the said exemption. 12. (1) Temporary importation exemption shall terminate, but tax shall not become chargeable, if goods to which the said exemption applies are—

(a) re-exported from the State;

(b) placed with a view to their subsequent re-exportation—

(i) under warehouse arrangements,

(ii) in a free zone, or

(iii) under transit arrangements provided for or permitted under Community law; or

(c) destroyed under customs control, or are provided to the satisfaction of the Revenue Commissioners to have been totally destroyed or irretrievably lost and incapable of use thereafter.

(2) (a) Temporary importation exemption shall terminate and tax shall, subject to paragraph (b), become chargeable—

(i) when, in exceptional cases and cases covered by Regulation 15, the Revenue Commissioners authorise goods, in respect of which temporary importation exemption has been granted, to be declared for home use,

(ii) when goods which are recoverable in the form of waste products resulting from duly authorised destruction are declared for home use, or

(iii) when the goods referred to in Regulation 30 are declared for home use.

(b) Where goods are released for home use and the importer is a non-taxable person or a taxable person not entitled to deduct the tax in full, tax shall be deemed to have become chargeable at the time when the goods entered the State.

(3) If any of the conditions, under which temporary...