Conventions: Common Transit Procedure (CTC) & Simplificaton of Formalities in Trade in Goods (SAD): Accession

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A decison made 21 March 2019:

MINISTERIAL DECISION REFERENCE: MD-ER-2019-0016
DECISION SUMMARY TITLE: Accession to the Convention on a common transit procedure (CTC) and the Convention on the simplification of formalities in trade in goods (SAD)
DECISION SUMMARY AUTHOR:	Director, External Relations – Brexit Unit	IS THE DECISION SUMMARY PUBLIC OR EXEMPT?		Public
REPORT TITLE: N/A
REPORT AUTHOR OR NAME OF PERSON GIVING REPORT:	N/A	IS THE REPORT PUBLIC OR EXEMPT		N/A
DECISION AND REASON FOR THE DECISION: By letter dated 19 December 2018, HMRC notified the Ministry of External Relations that the Convention on a common transit procedure (CTC) and the Convention on the simplification of formalities in goods (SAD) would cease to apply to the Bailiwick of Jersey following the UK’s exit from the EU. The UK has however been invited to accede to the CTC/SAD in its own right, and has notified the European Commission that it wishes the Bailiwick of Jersey to accede alongside it. Accession to the CTC is desirable as it ensures that post-Brexit, Customs and Excise duties and VAT on goods will remain suspended whilst transiting EU countries until the goods either reach their destination within the EU where duties and taxes are paid, or are exported from the EU, under the Union Transit procedure. This is particularly important to Jersey goods moving across the EU as the fiscal elements, for which Jersey is not part of the EU, such as VAT, can be suspended until the goods reach their destination. The SAD simplifies formalities between contracting parties, in particular by introducing a single administrative document for any procedure at export and import including transit movements. Accession is therefore desirable as the SAD is an important complement to the CTC, as it provides for a paper document as a failsafe for customs declaration procedures, in the event of any issues with the EU transit computer system. The Minister therefore supports the decision to formally request accession to the CTC/SAD.
RESOURCE IMPLICATIONS: There are no financial or manpower implications for the Government arising from this Ministerial Decision.
ACTION REQUIRED: External Relations shall take the necessary steps to process the formal request for accession through the official channel.
SIGNATURE: SENATOR IAN GORST			POSITION: MINISTER FOR EXTERNAL RELATIONS

DATE SIGNED			EFFECTIVE DATE OF THE DECISION (if different)