Dispatching of harmonized excise goods under duty suspension arrangements upon their release for free circulation
In order to frequently dispatch excise goods under a duty suspension arrangement upon their release for free circulation in the Republic of Cyprus, one needs to obtain a licence for a registered consignor by the Department of Customs and Excise, of the Ministry of Finance.
Who is Eligible
The Department of Customs and Excise grants a licence for registered consignors to physical persons or legal entities, only in cases where the Department is satisfied that they meet the following criteria:
- Registration to the Registrar of Companies and Official Receiver (in case of legal entities);
- Registration to the VAT Registrar;
- Registration to Customs Registrar.
Where to Apply
The application for a Registered Consignor can be submitted either through the PSC Cyprus or by contacting directly the local Customs and Excise Office. Please note that the submission of the aforementioned online application form necessitates the use of an electronic signature, which has to be under the sole control of the applicant.
Which Certificates must be Submitted
The application should be accompanied by the following original or notarized copies of documents, with the exception of the documents in points (e) and (f) below, where copies can be accepted instead:
(a) Identity card in case of natural persons;
(b) Certificate of Incorporation issued by the Registrar of Companies and Official Receiver (in case of legal person);
(c) Certificate of Registered Office Address issued by the Registrar of Companies and Official Receiver (in case of legal person);
(d) Certificate related to the responsible personnel of the company, their status and responsibilities in the company issued by the Registrar of Companies and Official Receiver;
(e) Certificate of VAT Registration;
(f) Certificate of Customs Registration;
(g) Data regarding the accounting system of the company, the internal control measures, and the accounting control methods;
(h) Other relevant licences that the applicant holds;
(i) Any other relevant certificate, document or data that may be deemed necessary by the Director of the Customs and Excise with respect to the application.
Fees Applicable & How to Pay
Upon approval, the applicant needs to deposit a guarantee, in accordance with the excise duty and VAT attributable to each delivery of products.
The applicant is informed regarding the decision to grant the permit or not, within three months from the date that the application form and supporting documents were duly submitted. The authorization shall not be deemed to have been granted if the Department of Customs and Excise has not replied within the period specified.
Licence Validity Period
The licence given to a registered consignor is valid for an unlimited time period and does not need to be renewed.
Dispute with the Competent Authority's Decision
How to File an Administrative Action
Administrative Action Against a Competent Authority’s Decision
Any person may file an Administrative Action at the Administrative court against a decision, act or omission of any competent authority or body.
Pursuant to Article 146 of the Constitution, an Administrative Action may be lodged within 75 days from the date of the decision or act or omission or from the day when such decision or act or omission was notified to the applicant.
The Administrative Court acts as a cassation Court and not as a substantive Court. In other words, the Administrative Court may:
I. Dismiss the Administrative Action
II. Annul wholly or partially the contested decision or act
III. Compel the relevant authority or body to take a certain action
After a decision is annulled, the authority and/or public body must reverse things back to the state prior to when the concerned decision and/or act was executed and reexamine.
How to Appeal
An Appeal may be filed against the Administrative Court’s first-instance decision within a period of 42 days from the date such a decision was given.
At the Supreme Court (Court of Appeal Section) hearing, the contested issue of the appeal remains the legality of the decision or act already adjudicated. However, such a revision of the legality of the decision or act is solely examined on the matters and the extent that the two parties have limited the reasons in the relevant notice of appeal.
The decision adopted by the Supreme Court is considered final in relation to the matter that has been judged.
Legislation & Obligations
Which Laws and Regulations Apply
What are my Obligations
Registered Consignors are obliged to comply with the provisions of the Excise Duties Law 91(I)/2004, Regulations, Orders, as periodically amended, as well as terms and conditions of the licence obtained.
Indicatively, registered consignors need to conform, among others, with the following:
- release the harmonized products in free circulation accordingly to the article 201 under the Regulation (EU) No. 952/2013;
- prior to the dispatch of the harmonized goods, provide guarantee to cover the risks inherent in the movement under suspension of excise duty, the type and the degree of which will be defined by the Director, taking into consideration the risks involved within the activities of the registered consignor;
- keep records regarding the products dispatched in printed or electronic form along with which all the accompanying administrative documents or electronic administrative documents and any other relevant details as instructed by the Director of the Department of Customs and Excise;
- accept and facilitate the inspection by the Department of Customs and Excise Office and safeguard public earnings and comply to its recommendations.
Authorized officers, in order to verify or secure compliance with the customs legislation or the other legislation, may demand any related information and check all the goods related to the importation and the movement under suspension as well as any records, books, documents or data, even in electronic form, of any natural or legal person.