Home > EU Customs Procedures > Export Refunds

Export Refunds INFORMATION SHEET ISSUED BY  THE CUSTOMS CAP UNIT (22nd April 2004)

General Information

The European Union through the European Agriculture Guidance and Guarantee Fund (EAGGF) provides a number of financial benefits to help improve the Agricultural Sector of the Community. One financial benefit is the export refund paid on certain products covered by the Common Agricultural Policy. 

The role of Customs in export refunds 

Although the refunds are provided by the European Union, through the Agricultural Department of each of the Member States, the role of customs in this respect is to effect controls at the exporting stage and certify the export as correct. The Paying Agency would then, upon verification of the documents and other requirements that may be necessary according to the EU regulations, issue the payment of the refund.

Eligibility 

A trader is eligible to claim export refunds provided that the products: 

i. are of EU origin or are in free circulation in the Community;
ii. are exported to a Non-EU country (third country)

The products can be of two types - Annex 1 and Non-Annex 1. 

Annex 1 products can be described as basic products. A list of such products can be found in Appendix Number 1 attached to this sheet. 

Non-Annex 1 products are manufactured goods made up of ingredients which are listed in Annex 1. In such case the refund is claimed on the ingredient(s) covered by the Annex 1 list.

Getting started

1. The first link in the whole process is the Paying Agency of the Ministry of Rural Affairs and the Environment (MRAE) 

A company which is interested in claiming export refunds must: 

a) register itself as a beneficiary with the Paying Agency; 
b) obtain export licences or Advanced Fixing Certificate (AFC) required from the MRAE; 
c) register the manufacturing formula (recipe) with the Paying Agency. This applies only to Non-Annex 1 goods. 
d) provide the necessary supporting documents according to the sector of products being exported (ex. Exports of meat products would require a Veterinary Certificate, production sheets from the slaughter house etc.)

2. The second step is to register with customs your warehouses or apply as an Approved Consignor. But before the company has to decide whether it intends to make use of the prefinancing or advance payment facility or else have the export refunds paid within normal time limits by the Paying Agency.

For prefinancing or advance payment facilities the company would have to have a Customs Warehouse. This means that you would have to apply to the Customs CAP Unit for approval of the warehouse. Approval is subject to an under-taking to abide with a set of conditions as are required by the Customs Code.  

What is the difference between prefinancing and advance payment facility? 

Prefinancing entails the payment of the export refunds soon after the goods (Annex 1 goods or basic products to be used for manufacturing purposes) are placed under customs control in the warehouse by means of a SAD(COM) declaration. 

To benefit from this facility one has to lodge a security equivalent to 115% of the export refund with the Paying Agency. 

Advance payment entails the payment of export refunds soon after the goods are declared as being “SHIPPED AND SEEN ON BOARD” by the officers at the point of exit. To avail oneself of this facility one would also need to place the goods under Customs control in a Customs warehouse by means of a SAD(COM) declaration. 

To benefit from this facility one has to lodge a security equivalent to 110% of the export refund with the Paying Agency. 

If the company decides not to lodge any securities and opts for payment within the normal time scales by the Paying Agency, the Company would have to apply to register with customs as an Approved Consignor. 

These premises have to be approved by customs upon application and undertaking to adhere to a set of conditions.

3. The third step is to commence the export procedure with the Customs Department. 

At this stage one must: 

a) complete the SAD (EX) declaration form; 
b) give 24 hour notice of the time of loading to the CAP Unit via fax. No 25685255. This notice should also include details of consignment to be loaded. 

Within a maximum time limit of two hours after the presentation of the completed export declarations, a company can expect the arrival of the Customs Official who will affix the Customs seal only to the already loaded consignment or else effect a physical check and affix the seal after completion of the reloading of the consignment.  

All the necessary documents will travel with the consignment in a sealed envelope and will then reach the Customs CAP Unit for onward transmission to the Paying Agency for payment. 

For further information do not hesitate to contact Ms Marion Scerri and Ms Carmen Aquilina from the Customs CAP Unit on: 

Tel. No. 25685247
Fax. No. 25685255  

APPENDIX 1 - List of Annex 1 Goods 

Although all these products are covered by the Common Agricultural Policy, it does not mean that export refunds are given on all the above listed products at all times. For further information on eligibility of refunds on any of the above products must be obtained from the Paying Agency within the Ministry of Rural Affairs and the Environment (M.R.A.E.)