This representation may be direct, in which case the representative acts in the name and on behalf of another person, or indirectly, which means that the representative acts in his own name but on behalf of another person.
The customs representative, as well as the customs declarant, must be established in the customs territory of the Union, with the exceptions mentioned in the legislation. Examples of such exceptions are transit operations or situations where the customs representative acts on behalf of persons not required to be established in the customs territory of the Union.
According to the Union Customs Code, the "established" person means any person having a registered office, head office or permanent establishment in the customs territory of the Union.
The permanent establishment is a fixed place of activity where both human and technical resources are permanently present and which carry out, in whole or in part, the customs operations of a person.
Currently, under national law, economic operators not established in the European Union (eg from Turkey, Switzerland, Serbia) can only carry out frequent customs operations (more than 3 operations per year) only by indirect representation.
On 15 April, a Draft Order was issued on the General Customs Directorate's website amending the Technical Norms for the application of the right of representation.
According to him, economic operators not established in the European Union will be able to draw up customs formalities for the release for free circulation, final destination and improvement only in the limit of 3 operations per year and on condition that the customs authority deems this justified.
If more than 3 release operations are carried out per year, persons not established in the European Union may draw up customs declarations only by indirect representation. Export operations and placing under the customs warehousing procedure will no longer be allowed for economic operators established in a third country of the European Union.
Thus, an economic operator intending to export goods from Romania holding an EORI registration number but established in a non-EU country would no longer be able to act as an exporter, even if they would use indirect representation. Since it will no longer be able to appear in checkbox 2 of the export customs declaration, the export VAT exemption that would benefit the economic operator on export from Romania becomes questionable.
What impact do these changes have?
An economic operator who carries out customs formalities for export or places goods under the customs warehousing procedure and who is not established within the European Union, according to the aforementioned draft order, will no longer be able to carry out such operations.
At the same time, in the case of declarations of release for free circulation, they may be drawn up only by indirect representation.