A certain manufacturing company produces oils and lubricants (also commonly known as synthetic oils). It currently intends to start production of a synthetic oil consisting of diesel fuel, kerosene, base oil, and other additives (product with CN code 3403 19 90). After production, the goods will be moved to a warehouse located approximately 30 km from the factory. However, this will not be a sale, but a standard movement of goods between warehouses. The Act on the monitoring of the transport of sensitive goods has recently entered into force; should such movement of goods between warehouses be reported to the SENT system?
Expert response: The issue of registering the transport of sensitive goods is regulated by the Act on the road transport monitoring system, which came into force on April 18, 2017. It aims to seal the tax system against the non-payment of VAT or excise duty by those liable to pay them. The Act introduced a number of new obligations imposed on producers, importers, exporters, and transport companies.
In accordance with Article 3(2) of the Act on the road transport monitoring system, the product with CN code 3403 19 90 is subject to the obligation of registration in the road monitoring system. However, it is worth noting that transport intended solely for the internal transfer of products between warehouses is excluded from the registration obligation. As stated in Article 3(7) of the Act on the road transport monitoring system, the transport of goods that is not related to the performance of activities subject to VAT is not subject to registration, if the transported goods are accompanied by a document confirming the inter-warehouse transfer, issued by the sender of the goods, which contains in particular:
a) data of the sender of the goods, including:
• name or business name,
• address of residence or registered office;
b) tax identification number of the sender;
c) data concerning the goods being transported, in particular the type of goods, CN position or PKWiU subcategory, quantity, gross mass, or volume of the goods;
d) address data of the place of storage of the goods – dispatch;
e) address data of the place of storage of the goods – receipt.
It is worth noting that this exemption will not apply in the case of transport of goods from the territory of one Member State to the territory of another Member State or a third country. Here, the carrier is required to send a notification to the register before the start of the transport of goods on the territory of the country and obtain a reference number for this notification (Article 3(8) of the Act). The Act on the road transport monitoring system provides for one more exception regarding goods with CN code 3403, namely, they will not be subject to registration in the road monitoring system if the goods are transported in unit packaging not exceeding 16 liters.
Legal basis:
• Act of March 9, 2017, on the road transport monitoring system
Legal status of the publication (date): 2017-05-08