The short story about Temporary Admission
The essence of Temporary Admission
- The customs aspect of flying within the EU
- Who can use Temporary Admission?
- Basic preconditions for EU outsiders
- How TA works
- Activation of TA
- The definition of the declarant
- The physical operator is liable for the correct use of TA
- Carrying EU-resident passengers on flights within the EU
- Carrying EU-resident pilots on flights within the EU
- Carrying non-EU-resident passengers and pilots on flights within the EU
- Does the owner of the aircraft have to be onboard or present in the EU?
- Be prepared to meet the EU customs when using TA
- The function of the Supporting Document
- Validity of the Supporting Document
- Good reasons to have the proper documentation ready onboard
- Aircraft registrations allowed when using TA
- Period of stay within the EU
- How can the aircraft be used?
- Traffic rights (charter permits)
- How the handling of the VAT and the customs works
- Legal background for TA
- How can we help?
The customs aspect of flying within the EU
Any aircraft flying into the EU will fly under customs control using either Temporary Admission (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 the TA procedure even though the owner or operator has not themselves taken any action to activate the TA procedure or realized that their aircraft is flying under TA.
Who can use Temporary Admission?
TA can only be used by EU outsiders where the aircraft is owned (including any UBOs), operated, registered, and based outside the EU.
Most EU outsiders will practically have the same flying privileges as given under full importation as the few limitations does not influence the typical flight and will even give the typical operator more flexibility and extra advantages as unrestricted personal/family/guest use without consequences and no tax, VAT (Value Added Tax)or duty liability anywhere. Many of these points are often a problem and burden when using full importation.
1. Flights where the aircraft will be used for passenger transport subject to an individual and personal ticket fee or direct payment is not allowed
2. Transportation of commercial freight items is not allowed
3. The use of TA includes some grey zone areas, which can all be handled securely by having the proper documentation
4. Some preconditions must be handled correctly, including those described below
Basic preconditions for EU outsiders
TA can only be used if the aircraft is owned by and registered to a non-EU entity and further operated by a non-EU operator. The aircraft must also have its normal fixed base outside the EU. The term ‘non-EU’ relates to anything other (states, territories, or areas) than the 27 EU member states and related customs areas. However, we will always recommend an operator check the full TA compliance before flying to the EU, as other factors can also influence compliance.
How TA works
The use of TA is designed to be a paperless process with a voluntary option to document entries and exits using a Supporting Document, meaning that a qualifying aircraft can enter the EU without any customs contact or paper declarations. Help with documenting or clarifying TA compliance might not be needed if the aircraft only has flights that start or end outside the EU (no internal trips), does not carry any EU residents as crew or passengers, and the crew and operator understand the practical usage of the TA procedure in the different EU member states that the aircraft plan to visit. We always recommend operators consult experts in all other scenarios.
Activation of TA
TA is activated (knowingly or not) every time an unimported aircraft crosses the outer EU border and is terminated again when the same aircraft crosses the EU’s external border on the way to a non-EU destination. The bare act of crossing the outer EU border counts as a customs declaration.
The definition of the declarant
The declarant (the physical operator) is, in a customs context, seen as the user of the aircraft. Therefore, it is important to know the structure surrounding the aircraft, as some limitations depend on the role of the declarant. The declarant must always be the entity that truly operates (physically piloting) the aircraft. No other entities are allowed to be the declarant. If the aircraft is managed, the management company is normally considered to be the physical operator, thus the correct declarant in customs terms. Please be aware that the EU’s definition’ operational control’ related to the use of TA is not the same as FAA’s. This means that the entity considered the declarant in an FAA context is often not the correct declarant when using TA in the EU.
The physical operator is liable for the correct use of TA
The physical operator (the declarant) will be seen as the responsible entity and targeted if anything related to EU customs is incorrect. Non-compliance with TA will most likely activate a direct payment of the VAT (ranging from 17-27%) and customs duty (2.7%).
Even though TA is meant to be a paperless customs entry process, please do not make the mistake of actually flying paperless without the ability to prove TA compliance. Every operator should be able to document their TA eligibility upon request. Mistakes can cost hours on the ramp, even in an “All Good” scenario.
Carrying EU-resident passengers on flights within the EU
EU-resident passengers are allowed 1).
Carrying EU-resident pilots on flights within the EU
EU-resident pilots are allowed but only if the pilots are directly employed by the physical operator (the declarant) 1).
Carrying non-EU-resident passengers and pilots on flights within the EU
There are no restrictions.
Does the owner of the aircraft have to be onboard or present in the EU?
An aircraft under TA is used by the person(s) who acts as the pilot(s) and not by the passengers. Therefore, all restrictions for EU-resident persons are meant for the real user of the aircraft in customs terms, thus the pilots. Accordingly, the presence of the aircraft owner is not needed in most cases. The exception being aircraft owned by an individual and occasionally borrowed and used by an EU-resident person who acts as the pilot. This rule is meant for smaller aircraft personally owned and operated without hired pilots 1).
Be prepared to meet the EU customs when using TA
Feedback shows that being prepared when flying to the EU is crucial. We recommend that operators are always ready to prove TA compliance and can present relevant documents during a potential customs ramp check. Even though an EU entry can be made paperless. No operator should fly to the EU unprepared and unable to explain and document why they are eligible to use the TA procedure. Being ready for a customs ramp check should be seen parallel to how an operator prepares for an eventual SAFA ramp check. We acknowledge that it might be difficult for operators to prepare a convincing portfolio of documentation proving TA compliance. However, having this ready for customs ramp checks protects operators against the large financial risk as well as hours or days of delay at the ramp while their case is perused. We have helped hundreds of clients prepare for ramp checks with different TA solutions pending on the risk profile. A ready-to-use portfolio of relevant documents is simply operators’ only security, easing customs ramp checks and giving all involved entities peace of mind. We experience that many pilots are not trained and prepared to handle the above issues convincingly.
The function of the Supporting Document
The Supporting Document (SD) only acknowledges that the aircraft has arrived within the EU and is opting to fly under TA. Having the SD ready in the aircraft or actively using the SD indicates that the operator understands the use of TA, which is a good start if approached by customs, but it does not grant the aircraft free circulation status for a six-month period, nor does it approve TA compliance in advance. Both of which is a common misunderstanding. Again, no operator should fly to the EU unprepared and unable to explain and document why they are eligible to use the TA procedure, and the SD does not have this function.
Validity of the Supporting Document
The SD is only valid if the aircraft has not left the EU and for a maximum of six months. A new SD must be processed upon the next entry even though the six months mentioned in the field “period for discharge” have not yet passed. The six months mentioned here is the maximum stay of the specific entry whereupon the form is stamped (in customs terms; period for discharge). If the aircraft has been flying outside the EU after the first entry, it is a common misunderstanding that any future entries into the EU within the first six months will be endorsed in advance by using this form – it will not.
Good reasons to have the proper documentation ready onboard
Ramp checks will eventually happen, so any operator ought to be prepared to avoid wasting time on the ramp. All experience shows that a convincing portfolio and well-prepared pilots will close all inspection issues effectively, while a fumbling start will often prolong an inspection for hours or days. About one-third of all recorded TA problems are related to the operators’ inability to understand and document the correct use of TA. In these cases, compliance is not an issue, only the lack of ability to prove compliance.
Aircraft registrations allowed when using TA
Aircraft registered in the 27 EU member states and related customs areas are not eligible for TA, but any other aircraft registration will work.
Period of stay within the EU
A stay is limited to a maximum of six months per entry. Multiple continuous stays are allowed as long as the aircraft roam around within the EU.
How can the aircraft be used?
TA can be used to fly privately, corporately, and commercially within the EU without any problems and with EU-resident persons onboard if applied correctly. Since 2014, the TA procedure has become a very well-defined customs procedure, especially for corporate and commercial aviation. This is thanks to the huge effort from, e.g., the EU Commission and NBAA.
Traffic rights (charter permits)
Non-EU-based charter operators may need to obtain traffic rights on some internal EU legs, but this is independent of the TA or full importation status. Any fully EU-imported aircraft must also obtain the same traffic rights. A fully EU-imported aircraft instead of a TA aircraft will not improve the situation. Full importation does not grant an aircraft better traffic rights than aircraft flying under TA or EU-registered aircraft.
How the handling of the VAT and the customs works
Both the VAT and customs duty are suspended as long as the preconditions for TA are fulfilled. A violation will activate a full payment of these taxes.
Legal background for TA
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 EU Customs Code Committee (available in English, French, and German) is especially important. Operators should always be aware that these documents are not binding for the EU member states, which is why different interpretations exist between member states, thus also why it is important to have a competent customs agency to outline the correct use and understanding based on the specific setup. The problem with local interpretations is often related to flights within France, Spain, Portugal, Italy, and Greece.
How can we help?
If you have questions about the above, please do not hesitate to contact us.
1) This reply is based on solid EU working papers, but these papers are non-binding for EU member states, the topic can therefore be seen as a grey zone area. That is why we are mentioning this reservation and recommending that all operators have proper documentation ready to present during a customs ramp check in order to secure flights with EU passengers onboard.