The Czech customs system within the customs territory of the EU

The Czech Republic, as an EU member state, is a part of the common customs territory of the EU, and the customs proceedings adhere to the rules valid for all EU Members States.

1. Uniform customs regulations valid in the EU are applicable to customs proceedings in the Czech Republic.
2. As part of the common customs tariff, the same classification is applied to exports and imports, as are the prescribed customs duty rates for the import of goods.
3. All Members States apply the common customs policy to third countries.
4. Delivery of goods between EU Member States is not subject to customs proceedings.

In the above context, it is necessary to pay attention to changes in the customs tariff valid as of 1 January 2007. Due to the needs of international trade, monitoring of products of environmental importance, and technical development, 354 sets of changes, representing approximately 5000 changes to customs tariff headings, have been implementing.

In addition to the above, there are certain areas of law governed by national regulations, such as customs duty securement, breach of customs regulations, or sanctions. Deciding on the place of customs proceedings can be influence by the possibility to declare VAT on import in the regular VAT return, while claiming VAT on input at the same time, and by the ability of the customs administration to adapt to new regulations and by the behaviour of their staff, amongst other issues.

The practical approach of the customs authorities to the customs proceedings may be different in the Czech Republic from that in the other Member States. The customs authorities, for example, require that all documents about a company be originals or certified originals because they do not have access to the relevant databases. They also insist on securement of customs duty because possible relief granted to the company outside the Czech Republic is not decisive. Also, the filing in of some sections of customs declarations and statistical reports is governed by the national legislation of each Member State.

Nevertheless, we can see that the procedures facilitating business are implemented with flexibility in the Czech Republic. In particular, we can mention the above-described method of VAT assessment on the import of goods, which does not require the importer to accumulate resources for securement and subsequent payment of VAT to the customs authorities. Another advantage is the fact that the customs offices are very well equipped with computer technology, which enables electronic submission of documents necessary for customs proceedings, exploitation of all possible simplification procedures, and electronic submission of statistical reports.

The customs administration of the Czech Republic also takes full part in projects for the implementation of electronic communication with parties to customs proceedings. At present, electronic submission of customs declarations for releasing goods into the Community transit regime is prescribed (the exception is only for written customs declarations submitted during personal travel and in the case of emergency procedure). On 1 January 2007, the new information customs system – Export Control System (ECS), used for quick electronic exchange of information within the EU – was launched. The above mentioned procedure enables exporters to rationalise administrative procedures of customs proceedings and helps them obtain information about the dispatch of goods to third countries on a time basis. Other customs regimes will gradually be included into electronic communication projects. A new project within the EU is the Centralized Customs Control (CCC) project, which breaks the rule that customs declarations are submitted to the customs office to which the goods were presented. Practically speaking, it is possible that documents are submitted to one customs office, but actual inspection is executed by another customs office. This procedure may bring about cost savings and the efficient flow of goods, mainly to logistics companies or to large production companies with a number of places of business, as the case may be.

At the present, a new project called AEO (Authorised Economic Operator) is being prepared for implementation within the EU in 2008. Upon provision of specific documentation, companies established in the EU can apply for the status of AEO with the customs authorities in their country. The AEO status will enable them to communicate in an easier manner with the customs administrations of other Member States. The status can be issued either for simplification of customs proceedings, which will allow application for the status of an authorised consignor, waiver of customs duty securement, etc., or as confirmation of satisfactory security facilitations, which can be used by the company as proof of its dependability. It can also be issued as a combination of both. As a result, it will not be necessary to present any documents with the exception of specific documents required by the individual states when applying for certain procedures, e.g., in simplified customs proceedings.

Companies with business contacts aimed mostly at partners from other Member States do not have to declare goods during customs proceedings; however, they will still come into contact with the customs authorities. If their turnover from the delivery of goods to EU exceeds the limit of CZK 4 million per year or their acquisition of goods from EU exceeds the limit of CZK 2 million per year, they are obliged to submit monthly Intrastat reports to the Customs Office. The report can be submitted in the form of a written report or electronically, always on or before the tenth working day of the following month. The necessary information and forms are available at the website of the Czech Statistical Office (www.czso.cz). The necessary customs legislation and statements are available at the website of the Czech Customs Administration (www.cs.mfcr.cz).

Companies with business activities within the Czech Republic or companies intending to do business here should become familiar with the differences of the customs proceedings as applied here and, at the same time, take full advantage of all simplified procedures and electronic communication with the customs authorities.