Short & Sweet no. 11
Part 2: Using Temporary Admission
– what do customs look for during a ramp check, and why?

• What do customs look for during ramp checks, and why?
• Why are there restrictions when using Temporary Admission?
• Why are corporate or commercial operators often subject to checks?
• Why are airlines rarely ramp checked by customs?

Let’s dive into what customs authorities are looking for when an aircraft arrives in the EU.

The customs aspect of flying within the EU

Any aircraft flying into the EU will fly under customs control using either TA or full importation. There are no other options. If the aircraft is not already fully imported, the aircraft will automatically be considered as flying under TA even though the owner or operator has not themselves taken any action to activate this procedure or realized that their aircraft is flying under TA. The TA procedure is thus always required for non-EU imported aircraft, even for flights with only one stop within the EU. Here, non-compliance with TA will most likely activate a direct payment of the importation taxes, VAT ranging from 17-27% and customs duty ranging from 2.7-7.7%, for the owner or operator. The TA procedure can only be used by EU outsiders where the aircraft is owned (including any UBOs), operated, registered, and based outside the EU, leaving EU insiders only one option: full importation. Please be aware that full TA compliance includes correct handling of various limitations and situations, which is why a compliance test is fundamental before flying to the EU.

Why are there checks when flying within the EU

All EU insiders must account for and pay local importation taxes (VAT and customs duties) of the aircraft’s value upon initial entry into the EU by initiating a full importation and payment of the applicable taxes. In contrast, users of TA may benefit from a suspension of VAT and customs duties, provided that certain preconditions and limitations are met and can be continuously and properly documented whenever operating within the EU.

Random customs ramp checks are therefore conducted to verify that all preconditions and limitations are met for the chosen customs entry option.

Customs simply want to check if EU insiders have already completed a full importation and paid the taxes (VAT and customs duty) correctly. Customs will also check if users of TA are in fact eligible to use TA and have the correct documentation allowing them the full suspension of all taxes, granted when using TA.

Why are there restrictions when using Temporary Admission?

TA limits the local use of aircraft operated by EU outsiders to prevent unfair competition with local EU-based companies. EU insiders are required to account for and pay all local importation taxes, while users of TA are exempt from these taxes as long as the applicable preconditions and limitations are strictly met. 

The total EU geographical area is technically a single customs jurisdiction with significant traffic originating from outside the EU, so random ramp checks are conducted to ensure a level playing field for all operators flying within the EU. Users of TA deemed uncompliant during a check will lose the tax exemption, automatically granted by the TA procedure, and must therefore pay the same importation taxes as any EU insiders. This is fair and square and makes sense.

Why are corporate or commercial operators often checked?

Non-EU corporate and commercial aircraft are frequently ramp checked because:

• Their identity and purpose are not immediately apparent to customs authorities.
• They may operate throughout the EU under TA as long as they obtain the necessary traffic rights.
• Most non-EU corporate operators using TA often enjoy the same privileges as with full importation – plus added flexibility, including unrestricted flights with family or EU-resident guests, and no tax, VAT, or duty liabilities within the EU. 

This makes compliance checks essential to ensure these extensive benefits are not misused.

Why are airlines rarely checked?

We often hear: “Do major non-EU airlines like Emirates or American carriers use TA when arriving within the EU?” The answer is yes, these airlines are indeed flying under TA. It is a common misconception that TA and commercial traffic cannot be combined. Yet, why are these airlines rarely ramp checked? The obvious answer is that customs know they are well-established non-EU companies with traffic rights. Therefore, inspections are generally deemed unnecessary.

Documentation is crucial

Operators should always consider how to check and document TA compliance as well as handle and secure the known grey zone areas when using TA, which is why a compliance test is fundamental before flying to the EU. The relevant documentation can be conditioned without help from OPMAS, but we will be happy to help and have years of experience with this process. We offer different TA documentation solutions depending on the risk profile and typical flight pattern. Please inquire for more details.

Legal background for Temporary Admission

The Istanbul Convention from 1990, regulating the worldwide usage of TA, is not very precise, and the EU Commission has been and is continuously publishing various working papers and guidelines to clarify the correct understanding of TA and its usage in the EU. The 2014 working paper from the Union Customs Code Committee (available in English, French, and German) is especially important. Operators should always be aware that these documents are not legally binding for EU member states. Interpretations may vary between member states, which is why it is crucial to have a competent customs agency provide guidance based on the specific setup.

Click here to see a list of known grey zone areas where different interpretations of the TA procedure exist. While none of these areas pose a problem when TA is correctly applied and documented, we find that operators often require guidance to ensure safe and compliant use in these situations.

How can we help?
If you have questions about the above, please do not hesitate to contact us.