VIII.2.3. Extinction of debt

Article 112, paragraph 2, of Appendix I to the Convention
Article 124, section 1, letters g) and h), of the CAU
Article 103, letter c), of the AD

Debt extinction occurs when:

• the removal of the goods from the transit procedure or the failure to comply with the conditions laid down for the inclusion of the goods in the transit procedure or for the use of that procedure results in the total destruction or irremediable loss of those goods (i.e. they have become unusable) for a reason which depends on their nature (e.g. e.g., normal evaporation), as a result of an act of God or force majeure or by instruction of the competent authorities;
• The breach that led to the incurrence of the debt does not have significant effects on the proper functioning of the transit regime and does not constitute attempted fraud. According to this provision, it will be up to the Contracting Parties to determine the situations in which this may apply and, consequently, to limit its scope.
  "Fraud" means the commission of an act that gives rise to criminal proceedings or an attempt to commit such an act;
• all necessary procedures are carried out a posteriori to regularize the situation of the goods.

The way in which this "regularization" is carried out will depend on the obligation or condition in question. Article 103(c) of the AD specifies that one of the cases of such non-compliance is when customs supervision has subsequently been re-established for goods which are not formally part of a transit declaration, but which were previously in temporary storage or had been included in a special procedure together with goods formally included in that transit procedure (80).

_{(80) Exclusively in the Union transit system.}