Customs procedures in relation to the America's Cup
In 2024 the “Louis Vuitton Cup” will be held in Barcelona (its name may vary depending on the sponsor of the sailing event). The challenger who holds the status of winner of said competition will face the defending team of the Copa del América.
Taking into consideration the importance of such competitions in the customs field, we proceed to clarify the different extremes in accordance with current customs regulations so that the goods introduced into Spain to be used in said event can enjoy the benefits provided for in the customs and tax regulations.
The legal treatment is analyzed, differentiating by type of merchandise that will be introduced into Spain during the competition, as well as distinguishing, when necessary, based on the establishment of the participating teams in the customs territory of the Union (hereinafter, TAU ) or outside of it.
- Boats that are introduced into Spain by declarants not established in the customs territory of the Union and that are going to be used during the course of the competition may be included by oral declaration (art. 136.1.a) of Delegated Regulation (EU) No. 2015/ 2446 of the Commission of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council with implementing rules relating to certain provisions of the Union Customs Code, hereinafter RDCAU) in the temporary importation regime with total exemption from import duties (art. 250 et seq. of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 establishing the Customs Code of the Union, hereinafter, UCC) accompanied by the supporting document referred to in Annex 71- 01 of the RDCAU.
No guarantee will be required in such cases in accordance with the provisions of article 89.8.c) of the CAU, as well as article 81.a) of the RDCAU.
The deadline for completing the temporary import regime will be 18 months for means of maritime and river transport for private use, under article 217 e) of the RDCAU. However, article 251.3 of the UCC provides that customs authorities, when exceptional circumstances arise, may grant an extension of said period for a reasonable time when the authorized purpose cannot be achieved within the previous period. Annex 71-01 may contain a completion period that directly incorporates the necessary extension so that the goods can reach the objective of the authorized destination
The total time of the goods in the regime temporary importation will not exceed 10 years except in cases of unforeseeable circumstances. - In the event that such means of maritime transport are introduced into Spain by declarants established in the TAU and do not constitute return goods in accordance with article 203 CAU, their oral declaration is possible in accordance with article 136.1. l) of the RDCAU (“other goods, when the customs authorities so authorize”).
Pursuant to 236 RDCAU, such means of transport are allowed to be included in the temporary importation regime even when the applicant and the holder of the regime are established within the TAU when the goods are imported in special situations without economic impact on the Union.
Guarantee or guarantee will not be required either, the completion period being 18 months except in the event of exceptional circumstances, as previously established.
Although the use of a normal declaration could be admissible, by presumed act or ATA or CPD notebook for the inclusion of the means of transport in the temporary importation regime, in this case the oral declaration is considered more appropriate in order to achieve adequate control. of the completion of the regime and maximum legal security for declarants. - The importation of parts or components of means of maritime transport that are going to be assembled in the TAU cannot be included in the temporary import regime as this is a regime planned for goods that are not going to undergo any change (art 250 CAU). The importation of said parts or components may be carried out, without being subject to import duties, other charges or commercial policy measures under the inward processing regime (art. 255 to 258 UCC). In this case the declaration must be electronic without allowing the use of oral declaration or by presumed act.
Such goods may be included in the temporary importation regime with total exemption from duties by means of an oral declaration accompanied by the supporting document referred to in Annex 71-01 of the RDCAU, in accordance with art 136.1.a) of the RDCAU, whether the declarant is in the TAU as if it were outside, as provided in article 235 RDCAU and 207-213 RDCAU.
As noted in the previous section, a guarantee is not required in accordance with the provisions of article 89.8.c) of the UCC, as well as article 81.a) of the RDCAU.
The completion period will be 24 months unless exceptional circumstances arise, the provisions of section 1 being applicable.
In this case, the use of a normal declaration or ATA notebook would also be possible.
Personal effects and merchandise intended to be used for sporting purposes imported by travelers who have their residence outside the TAU may be declared orally for temporary importation with total exemption from duties in accordance with article 136.1.b) and 219 of the RDCAU.
The provisions of the previous section regarding the non-requirement of guarantee, the completion period and the possibility of using the normal declaration or ATA carnet are applicable in this case.
For the rest of the merchandise that will be temporarily imported on the occasion of the celebration of the “America's Cup” or “Louis Vuitton Cup” sporting event, the declarants, both established and not established in the TAU, could link the merchandise to the temporary import regime. in application of art. 236.b) RDCAU by oral declaration according to 136.1.l RDCAU (therefore, without guarantee according to art. 81 of the RDCAU) provided that they meet the requirements provided for in the CAU and its development provisions in relation to said regime.
The inclusion of the goods in the temporary import regime implies the suspension of the taxable import event (art 18.Two LIVA), in such a way that when the goods leave the aforementioned regime, said taxable event will take place. The VAT debt would arise but on the 18th. Dos in fine provides that departure from the areas referred to in art 23 LIVA or abandonment of the regimes of article 24 will not constitute importation when it determines a delivery of goods to which the exemptions of articles 21, 22 or 25 (export, intra-community delivery or operation assimilated to export).
Regarding the completion of the temporary importation regime, the general regime provided for in article 215 of the UCC provides that, except for the transit regime and without prejudice to the provisions of article 254 of the UCC, it will be finalized when the goods are included in another subsequent regime, have left the TAU, have been destroyed without producing waste or are abandoned in favor of the State.
So that:
- When the goods leave the TAU, a re-export declaration must be presented, which can be carried out by means of a normal declaration or oral declaration. In the event that the inclusion in the temporary import regime had been carried out through the presentation of Annex 71-01 provided for the oral declaration, said Annex must be presented to the customs office of re-export at the time of this in order to justify the correct completion of the temporary import regime.
- If the merchandise remains in the TAU once the completion period has expired, it must be declared for release into free circulation, paying import duties, VAT and other relevant taxes.
- Destruction under customs control, as well as abandonment, will be possible as forms of termination of the regime. In accordance with Article 199 UCC, non-Union goods may, with prior authorization from the customs authorities, be abandoned for the benefit of the State by the holder of the regime or by the holder of the goods. The customs authorities may deny a request for authorization of abandonment in the cases provided for in article 249 of the RDCAU.
In addition to the possibility of including the goods in the temporary import regime referred to in the previous sections, the following goods could be released for free circulation with application of the tariff exemption and VAT exemption that are indicated in each case, always that the conditions provided for this are met:
- Personal effects: exemption provided for goods contained in the personal luggage of travelers in article 41 of Regulation 1186/2009 and VAT exemption provided for imports of goods under the travelers regime in article 35 of the LIVA. Furthermore, article 138 of the RDCAU provides, for non-commercial goods contained in the personal luggage of travelers, the possibility of presumed declaration by any of the acts provided for in article 141 of the same Regulation.
- Pharmaceutical products: franchise provided for in article 60 of Regulation 1186/2009 and VAT exemption provided for in article 43 of the LIVA, both for the import of pharmaceutical products used on the occasion of international sports competitions.
- Documents, printed material, flags, posters, decorative materials, promotional materials and products intended to be distributed as promotional items: exemptions provided for in articles 86, 87 and 90 of Regulation 1186/2009 for samples, printed matter and advertising objects and products used or consumed during an exhibition or similar event and VAT exemption provided for in article 48 of the LIVA for the import of goods for commercial promotion purposes.
- Gifts, prizes, trophies, medals: The exemptions provided for in articles 81 and 82 of Regulation 1186/2009 for decorations and rewards granted in an honorary capacity and for gifts received in the framework of international relations and the VAT exemption provided for could be applicable to some imports of these goods. for imports of goods carried out within the framework of certain international relations in article 47 of the LIVA. However, these VAT exemptions and exemptions are very restrictive in terms of their requirements, so they may not be applicable to some imports.
- Furniture and personal effects, including vehicles, for those people who move their residence to Spain. Currently, this tariff exemption is developed in articles 3 to 11 of the current Regulation (EC) 1186/2009 relating to the establishment of a community regime of customs exemptions, and article 28 of the LIVA.