Information from Brussels on Article 74 DelVO

20. Mar 2018 | Origin of goods and preferences, Union Customs Code

Recognition of the preference for finished products for release to ‘free circulation’ after ‘active finishing’

The Commission had not included in the EU Code the possibility of recognising the preferential origin of goods transferred to the procedure for the finished product (conversion product) arising from the ‘old’ customs legislation (article 136 of the Customs Code). We reported that this was recognised as an unintentional derogation from the previous customs legislation by the EU Commission and that a change in the current UNION customs legislation should be made to this end.

In the first attempt, this possibility should be made available again with the introduction of an additional Article 74a into the DelVO. This was rejected by the EU Commission’s Legal Service. However, an alternative approach could be agreed with the Legal Service. Enlargement has now finally been proposed, this time in the implementing regulation, which is intended to settle this issue satisfactorily.

The extension is in the new Article 69a UZK DVO. The text provided (previously only in English) reads as follows:

“1. Where non-Union goods have preferential originating status in the framework of a preferential arrangement between the Union and third countries, are placed under the inward processing procedure, processed products obtained there from shall, when released for free circulation, be deemed to have the same preferential originating status as those goods.”

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