1 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 29 – Customs union Bilateral screening: Chapter 29 PRESENTATION OF MONTENEGRO Brussels, May 2013

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union TRANSIT (TIR, ATA, NCTS)

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union SUMMARY 1.Legal framework 2.Types of transit procedure 3.Responsibility and secure of payment 4.Conduct of transit procedure 5.Simplified procedure 6.TIR carnet 7.ATA carnet 8.NCTS

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union LEGAL FRAMEWORK 1.Customs Law (Official Gazette of the Republic of Montenegro 7/02, 38/02, 72/02, 21/03, 31/03, 29/05, 66/06, 21/08) 2.Implementing provisions to the Customs Law (Official Gazette of the Republic of Montenegro (15/03, 81/06, 38/08) 3.Rulebook on contents and method of lodging of customs declaration and summary declaration (Official Gazette of the Republic of Montenegro 16/03, 43/04, 2/05, 14/05, 48/07) 4.Law on ratification of the Agreement between Serbia and Montenegro and North Atlantic Treaty Organization (NATO) on transit arrangements for support of peace operations (Official Gazette of Serbia and Montenegro – International treaties 13/2005) 5.TIR Convention 6.Convention on temporary admission

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Types of transit procedure 1.External transit 2.Internal transit

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union External transit Movement between two places in customs territory: Foreign goods without payment of customs debt Domestic goods for which the export procedure has been carried out Movement is carried out pursuant to: -External transit -TIR carnet -ATA carnet -Postal services -Form 302 for NATO troops.

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Internal transit -Movement of domestic goods -From one place to another within customs territory -Crossing territory of a third country -Without change in customs status

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Responsibility -The principal is the holder of transit procedure -The goods are presented to the office of destination -The provisions of the transit procedure are followed -Consignee and carrier are also responsible for presentation of goods

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Security for payment -Valid throughout customs territory -The amount of security for payment shall be up to the amount of customs debt -Security for payment is given under the prescribed conditions -Types: bank guarantee and cash deposit -Individual and general guarantee

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Conduct of transit procedure -Transit declaration -Loading specification -Security for payment -Guarantee waiver -Transport document

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Office of departure -Transit declaration -Submitted electronically -Office of departure accepts the declaration -Filled in SAD form -Sets the deadline -Affixes customs seals -If it is necessary, it also sets the route -Filled transit declaration -Keeps the copy of declaration

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Office of destination -The goods and transit declaration are presented -Discharged electronically -Discharge at another customs house -Paper discharged only in cases of: -Technical problems -Infrastructure problems

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Enquiries Irregularities at the office of destination: -Violation of deadline for lodging of transit SAD -Neopravdanost razloga za prekoračenje -Initiation of the misdemeanour proceedings by the office of destination -Copy 5 of the SAD for the office of departure -Damage of customs seals -Initiation of the misdemeanour proceedings by the office of destination -Copy 5 of the SAD for the office of departure In case of correctness of customs seals or justified reasons, declaration is discharged electronically

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Enquiry/urgency Irregularities at the office of destination: -Difference between the presented and declared goods -Discrepancy between copies 4 and 5 of the SAD -Lack of documents accompanying transit SAD -In case of minor irregularities: -Declaration is discharged electronically -In case of major irregularities : -Office of destination initiates misdemeanour proceedings -Copy 5 of the SAD for the office of departure

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Enquiry/urgency -In case that the office od departure fails to receive following documents from the office of destination: -Notification on status of transit SAD or -Copy 5 of the SAD within 48h -Office of departure sends the urgency -Office of destination provides reply within 24h -In case that the office od departure fails to receive the reply, it -Notifies the Head of Customs House -Notifies the Director

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Recovery of customs debt 1.When the office of destination detects irregularities at -Goods -Vehicles -DocumentsOR 2.When the office of departure fails to receive reply to urgency, it: -Initiates the procedure of recovery of customs debt -Notifies the principal -Releases the security for payment 3. The Principal has the right to prove that the transit procedure ended in prescribed manner

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Simplified procedure 1.Movement of customs goods by post -Yellow label 2.Movement of customs goods by rail - CIM consignment note/ TR movement certificate 3.Movement of customs goods by sea– transit declaration 4.Movement of goods for support of NATO operations - Form302 5.Authorized consignee 6.Authorized consignor

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union TIR Convention Legal Framework -TIR Convention (Official Gazette of SFRY 3/61), -TIR Handbook ECE/TRANS/TIR/6/Rev.9 -Authorization to the customs offices to deal with TIR carnets -Authorization to the customs houses to approve the vehicles -Authorization to the carrier to accede to the TIR system -Valid as of 15 Septemer 2008

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Office of departure, transit and destination Office of departure Exit office Export Entry office Exit office Transit Entry office Destination office Import DischargeTermination

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union TIR carnet -TIR carnet issued by the Chamber of Commerce of Montenegro -Solidary guarantor is the Chamber of Commerce of Montenegro -Guarantee up to 50,000 USD -Records of TIR carnet are electronical -Use of SafeTIR

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union ATA Carnet Legal framework -Convention on temporary admission (Official Gazette of Montenegro 3/2008) -Valid as of 1 December ATA carnet issued by the Chamber of Commerce of Montenegro -Chamber of Commerce of Montenegro is guarantor for the ATA carnet -Accepted in transit procedure -If the border customs house cannot established fulfillment of condition for temporary admission!

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union ATA carnet -Transit coupon and counterfoil of blue colour Entry officeExit officeEntry officeInland office Exit office Inland office

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union NCTS -Twinning light Project ’’Preparation of Customs Administration of Montenegro for implementation of New Computerised Transit System – NCTS‘‘ (28 january 2013 – 01 August 2013) -Drafted amendments to the Customs Law -Working group for implementation of NCTS and Steering Committee are established in MCA

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union NCTS Planned outcome of the Twinning light Project: -preparation of documents necessary for the implementation of the NCTS system Next step – implementation of NCTS in Customs Information System -It is necessary to provide financial resources

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Thank you for your attention! Igor Obradović Customs Administration