Customs warehouses – laws and regulations warehouses

Before the unloading of goods from the means of transport to the customs warehouse and the registration of goods can take place, unloading permission must be obtained from Norwegian Customs. 

Registered goods shall be physically placed in the customs warehouse. 

The customs warehouse keepers with a type A customs warehouse may, however, upon application be granted permission for direct transport. This means that you can transport the goods directly to the consignee and store them there. See a more detailed description under Section “Type A customs warehouse”. 

For unloading to a customs warehouse, Norwegian Customs can grant three different forms of unloading permission. The type of unloading permission the customs warehouse keeper has is evident from the customs warehouse license. 

1. Unloading permission must be obtained in each case 

This means that the customs warehouse keeper must obtain unloading permission from Norwegian Customs for each consignment of goods he receives to his warehouse. The permission must be granted by an active act. At a minimum, the warehouse keeper should send an e-mail in which he applies for unloading permission for the consignment of goods he is to unload to his warehouse, and Norwegian Customs will confirm this by replying to the e-mail. 

2. General unloading permission 

All types of goods can in principle be placed in the customs warehouse, provided that they do not represent a hazard and that there is adequate space. It is pointed out, however, that certain types of goods, such as meat, chemicals, explosives, etc., may require permission from authorities other than Norwegian Customs in order to be stored in the warehouse, and that there are different restrictions for the various types of warehouses. 

For the entry of goods not cleared for free circulation to the customs warehouse, the customs warehouse keeper shall record these in his customs warehouse accounts. In certain cases, it is also required that the goods are declared into the customs warehouse by an “entry declaration”, see each type of warehouse. In addition, the customs warehouse keeper shall keep a journal of observations. 

There are in principle no time limits for how long goods can be stored in the customs warehouse. In special cases, however, Norwegian Customs can limit the storage deadline. If the goods remain beyond the storage deadline, the customs warehouse keeper is obligated to immediately report this to Norwegian Customs. 

If Norwegian Customs requires that goods not cleared for free circulation are entered into the customs warehouse, the customs warehouse keeper cannot refuse this. In such cases, it is important that the warehouse keeper enter into agreements with the consignee with regard to the storage fees. In each individual case, Norwegian Customs should consider whether a storage deadline should be stipulated. For example, a storage deadline should be stipulated for the entry of motor vehicles pending documentation or re-export. 

Before goods can be delivered from the customs warehouse, they must be customs processed. Among other things this may involve customs clearance for free circulation, internal transit, etc. The customs warehouse keeper is obligated to ensure that the goods are customs processed before they are delivered from the customs warehouse. 

A customs warehouse is in principle only a warehouse in which goods not cleared for free circulation can be stored pending customs clearance. Therefore there are strict rules for what can be done with goods not cleared for free circulation that are in a customs warehouse. 

Unless an exception has been made (type C customs warehouse), the display, demonstration or sale of goods in the customs warehouse is not permitted. 

In the customs warehouse, damaged packaging can be repaired, and any necessary treatment to preserve the goods not cleared for free circulation can be performed while they are in the customs warehouse. An example of such treatment is the removal of rotten vegetables to avoid contamination of the other fresh vegetables. Otherwise, reference is made to the types of disposal that are permitted in the various types of warehouses. 

In type B customs warehouses, only one’s own goods, or goods for a single enterprise may be stored. 

If, for example, a shipping agent is to store goods for more than one enterprise in a type B customs warehouse, he must have a license for each individual enterprise he would like to store goods for. The goods shall be destined for distribution in multiple countries, of which Norway may be one of the countries. 

Type C customs warehouses are tax-free shops where spirits, wine, cigarettes, etc. are sold in the departure and arrival halls of an airport with an associated warehouse at the airport. Shops that sell clothes, foodstuffs, etc. at airports, as well as tax-free shops on board ferries that go to foreign ports, are not a type C customs warehouse. 

Type C customs warehouses are special because they are the only type of customs warehouse where the display, demonstration and sale of goods is permitted. 

Goods that can be placed in a type C customs warehouse: 

All goods that are to be placed in a type C customs warehouse shall be declared to Norwegian Customs by an entry declaration in TVINN. 

The customs warehouse keeper may not sell larger quantities of duty- and tax-free goods to each individual passenger bound for a destination in Norway, Sweden, Finland or Denmark than the passenger can bring customs duty and tax free into the destination country. 

Application for advance orders 

Companies that would like permission for advance orders must apply for this to the Movement of Goods Division. If the company has a license in multiple locations, it must send an application for each location where they would like to have advance orders. It must be evident from the application whether it applies to departure or arrival sales, or possibly both. 

The local customs office will review the application, carry out the necessary measures such as inspection of the premises etc. and make a recommendation to TAD who will make a decision on the matter. 

Conditions for advance orders 

The following conditions have been stipulated: 

a) Licensee receives the order and packages the goods 

b) Packaging shall take place in the warehouse, or the shop encompassed by the license. 

c) Passengers go to the tax-free shop encompassed by the license, pay for and receive the goods there. 

The establishment of a type D customs warehouse is permitted for an individual enterprise or for an enterprise that will store goods for multiple enterprises. 

Goods not cleared for free circulation, including goods from activity on the Norwegian continental shelf, may be placed in a processing customs warehouse. In addition, goods for which relief from or repayment of customs duty or special taxes is to be applied for, may also be placed in such a warehouse. Other goods may also be placed there if they are to be mixed or processed with goods at the customs warehouse. 

Goods in a processing customs warehouse may be divided up, repackaged or processed. If it is commensurate with the nature of the goods, and the costs incurred by the customs authorities and control requirements indicate it, the customs authorities may give permission for industrial activities in which raw materials are processed into finished products. The processing or production must take place inside the customs warehouse separately from the goods that are intended for the Norwegian market. 

In practice, it is possible to give an entire production area status as a type D customs warehouse, even if domestic production also takes place there. Separate series must then be produced “in a type D customs warehouse”, for example, one day a week, while the production is for the Norwegian market (domestic production) the rest of the week. 

Relationship to the free trade agreements 

The general rule in most of our free trade agreements is that if the exporter applies for a refund, forgiveness, or exemption from customs duties in full or in part for the input materials, the right to preferential origin and the opportunity to issue a certificate of origin will lapse. Goods exported from a type D customs warehouse will come under this general rule. The manufacturer/exporter must make a choice between whether to use the scheme for relief from or reimbursement of customs duties through use of a type D customs warehouse, or to retain the opportunity to issue origin documentation for export goods and thus the possibility of preferential customs processing (duty-free status / reduced duties) on importation to the consignee country. For exportation to countries that Norway/EFTA does not have a free trade agreement with, and where it is not relevant to issue origin documentation, it will not be of any importance whether the goods come from a type D customs warehouse. 

Customs warehouse license 

The establishment and operation of the customs warehouse is dependent on a special license from Norwegian Customs. The individual enterprise must document a need, and the premises must be approved by Norwegian Customs. Detailed conditions for the security and operation of the warehouse are stipulated in the customs warehouse license. In addition, strict requirements are stipulated for the warehouse accounts. There are in principle no restrictions with regard to the types of goods for which a customs warehouse license application can be submitted or to how long the goods can be stored in a type D customs warehouse. 

The warehouse keeper must keep warehouse accounts in accordance with the guidelines established for all the goods in the customs warehouse. The warehouse accounts shall be kept such that Norwegian Customs can identify the goods and follow the movement of the goods. 

There is no requirement for mandatory provision of security for customs warehouse keepers. Security requirements are considered based on the applicant’s creditworthiness, and viewed in the context of the quantity and type of goods that are in the customs warehouse at any given time. 

Credit assessment 

Everyone who applies for a customs warehouse license will be subject to a credit assessment. If the application is granted, the customs warehouse keeper can be subjected to a new credit assessment during the license period, for example, in a possible audit of the warehouse accounts. 

The question of whether the provision of security shall be required as a condition for approving an application for the establishment and operation of a customs warehouse, and possibly the requirement of security during the license period, depends on an individual assessment of the creditworthiness of the individual customs warehouse keeper. Security will be in the form of a guarantee from a bank or other financial institution. 

Security requirements 

If the customs warehouse keeper is not regarded as being creditworthy, it will be a condition for granting a license for the establishment and operation of a customs warehouse that adequate security is provided for the liability he may incur in relation to Norwegian Customs. 

In the cases where the customs warehouse keeper is granted a license without any requirement for security in full or in part, the regional director can require that security isprovided, or additional security added if the warehouse keeper’s creditworthiness weakens during the license period. 

Amount of the guarantee 

The Movement of Goods Division will make a concrete assessment based on the information disclosed in the application and stipulate the amount of the guarantee. The amount of the guarantee will be stipulated based on the potential liability that may arise in relation to the applicant’s / warehouse keeper’s general creditworthiness. 

The individual applicant has an independent responsibility to provide correct information in advance on the amount of goods not cleared for free circulation that are expected to be in the warehouse at any given time, differentiated by category and value. In principle, the guarantee shall cover any tax claims that can arise at any given time due to non-fulfilment, i.e. shortages in the warehouse. The customs warehouse keeper is responsible for the customs duties and public taxes for goods that are misplaced during storage or are delivered beyond the control of Norwegian Customs. The guaranteed amount is stipulated by Norwegian Customs based on the information on the goods that are found in the warehouse at any given time. Customs duties and taxes, included value added tax, are included in the basis of calculation. 

In addition, the guaranteed amount can be reduced based on the creditworthiness of the customs warehouse keeper, and if the regional director finds the opportunity for satisfaction to be sufficient seen in the context of the liability that can arise. 

Standard guarantee text requirement 

Security shall be provided in the form of an absolute guarantee from a bank, insurance company or other financial institution, which has been granted a license to do business in and is subject to regulatory supervision in Norway or other state that is encompassed by the European Economic Area (EEA). 

If commercial and industrial considerations so indicate, the King with the consent of the Parliamentcan grant permission for the establishment of free zones or free ports. 

Customs warehouse keepers may send goods not cleared for free circulation domestically from their own customs warehouse without any special application to the customs authorities. The following has beenstipulated for this simplification: