Trader Notice 3/2006 12 December 2006 To the trader named in the address. 1. Ending of Pre-financing of beef export refunds 2. Regulation (EC) No. 1741/2006 laying down the conditions for granting the special export refunds on boned meat of adult bovine meat placed under the customs warehousing procedure prior to export
1. You will already be aware of the decision by the European Commission to end the system of pre-financing of beef export refunds. The Regulation giving effect to this change, Regulation 1713/2006, provides that pre-financing will cease in respect of product placed under a warehousing arrangement as and from 1 January 2007. Product placed under the warehousing arrangement prior to that date will continue to be eligible for pre-financed payment. 2. A new Regulation, (EC) No. 1741/2006 (copy enclosed), replaces Regulation (EC) No. 456/2003, governing the payment of special export refund on boned meat of adult male animals placed under the customs warehousing procedure. This new Regulation is effective from 1st January 2007. 3. The Customs Service is to issue detailed instructions in relation to those aspects of the procedure that fall within their remit. However, the Department would like to draw particular attention to the following provisions of the Regulation: Article 4 The maximum number of declarations of entry into storage (SADCOM) that may be accepted for each boning operation remains at two and each declaration may refer to a maximum of two boned meat certificates. A boning operation should be regarded as a single production and the meat boned from the production must be on a single HR6/HR6A or FR6. Article 7 The maximum period for beef to remain under the warehousing arrangement is four months from the date of acceptance by the Customs Service of the declaration of entry into storage. Article 10 The effect of the ending of pre-financing is that payment of export refunds will no longer be made on submission of the declaration of entry into storage (SADCOM). Payment will be made either
i.
When all the quantities corresponding to a declaration of entry into storage (SADCOM) have been exported, subject to the provisions of Article 6 of Regulation 1964/1982 and the lodgment of an appropriate security, or On the basis of individual SADEXs where the operator utilizes the provisions of Article 24 of Regulation 800/1999. Securities lodged in respect of each SADEX will not be released until all beef the subject of the declaration of entry into storage has been exported and the required proofs of arrival received within the prescribed time limits. The provisions of Article 6 of Regulation 1964/1982 will also apply.
ii.
4. Effective Date – Article 14 Regulation (EC) No 1741/2006 applies to declarations of entry into storage (SADCOMs) submitted in respect of product placed under the warehousing procedure on or after 1st January 2007. The provisions of Regulation (EC) No. 456/2003 will continue to apply in respect of declarations for product placed under the warehousing procedure up to and including 31st December 2006. Such declarations are eligible for pre-financed payment subject to the usual conditions. 5. General Issues i.Because of the separate payment arrangements for product placed under the warehousing arrangement before and after 1 January 2007, traders are asked to ensure that consignments on SADEXs do not contain product subject to both payment regimes. ii.Traders are also asked to ensure that precise weights are given on SADEXs submitted to the Department for payment. Under the new arrangements it will be necessary for the Department to reconcile the weight of product exported on the individual SADEXs with the amount indicated on the declaration of entry into storage, the SADCOM. Any divergence between these two amounts could result in loss of payments and in the application of penalties. iii.To facilitate the Department with this reconciliation, traders are asked to include with the final SADEX submitted, a covering note detailing each SADEX attributed to the SADCOM. 6. Whilst every effort has been made to ensure that the information given in this memorandum is complete and accurate, the Minister for Agriculture and Food does not accept responsibility for any errors or omissions. It should be noted that it is the primary responsibility of the applicant/exporter to familiarise themselves with and ensure compliance with the regulatory provisions.
_________________________ Ray Dollard Principal Officer Beef Export Refunds Division