AEO & the Union Customs Code BIFA 30 Sept – 2 Oct 2014 A presentation by the International Trade Development Liaison Officer network
Agenda • AEO features • Union Customs Code background • UCC headlines • AEO and the UCC • AEO update Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 2
What is AEO? Internationally recognised quality mark which indicates that a business operates within a secure supply chain and their internal controls and procedures are efficient and compliant Qualifying criteria • Record of compliance • Satisfactory system of managing commercial and transport records • Proven solvency • Security & Safety standards Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 3
Types of AEO AEO(S) AEO(C) Security Customs and Safety Simplifications Criteria: compliance; record-keeping; Criteria: compliance; record-keeping; solvency; security & safety standards solvency AEO(F) Both Combined criteria Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 4
Trade benefits of an AEO certificate Benefits AEOC AEOS AEOF a) Fewer physical and document-based controls b) Priority treatment of consignments if selected for control c) Choice of the place of controls d) Easier admittance to customs simplifications e) Reduced data set for summary declarations f) Prior notification g) Mutual recognition Protective marking – Unclassified
Other indirect benefits • Improved corporate governance – development of audit culture • Opportunities to improve and rationalise logistical systems and identify efficiency savings from review of procedures • Better employee commitment and customer loyalty • Reduced risk of theft by securing supply chain • Recognised as a secure and safe business partner • Improved management of business partners • A more cohesive relationship forged with Customs • Future benefits under the Union Customs Code Protective marking – Unclassified
Union Customs Code background European Union’s basic customs law • Framework regulation for customs rules and procedures • A recast of the Modernised Customs Code (MCC) • Adopted on 10 October 2013 in Council Regulation (EU) 952/2013 • Implementation due 1 st May 2016 once the Delegated and Implementing Acts are agreed • There will be a transitional period up to the end of 2020 for some aspects which require changes to IT systems e.g. centralised clearance and self assessment Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 7
Delegated and Implementing Acts (DA & IA) Implementation • DA & IA required to make the UCC work • First drafts published in January 2014: • Preliminary draft DA…. TAXUD/UCC-DA/2014/-1 • Preliminary draft IA…. TAXUD/UCC-IA/2014/-1 • Ongoing negotiations between Member States & European Commission Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 8
Aims of the UCC Modernisation • Facilitation of legitimate trade • Reinforced need to ensure security & safety • Paperless environment for customs & trade • Harmonised & standardised application of customs controls Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 9
Headlines… Authorised Economic Operator (AEO) Guarantees for duty Temporary Storage Centralised Clearance Transit Self Assessment Single Transport Contract Valuation Trader’s right to be heard and Streamlined Customs Procedures Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 10
Authorised Economic Operator (AEO) in the UCC Compliant & trustworthy economic operators who are entitled to receive favourable treatment • Two types outlined in UCC, Art. 38: Customs Security & simplifications Safety • AEO(F) referred to in D/As and I/As • AEO standards linked throughout the UCC • New criteria for practical standards of competence or professional qualifications • Provides many benefits including financial • Scope expands to include taxation rules Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 11
AEO interaction across UCC AEO(c) Certain AEO(c) Mandatory criteria must be met Union Customs Code Protective marking – Unclassified
AEO interaction across UCC • Duty deferment guarantee AEO(c) reduction Mandatory • Movements within a TS authorisation between different MS • Centralised Clearance • Self Assessment • EIDR – presentation waiver Union Customs Code Protective marking – Unclassified
AEO interaction across UCC • Comprehensive guarantee • Guarantee waivers Certain AEO(c) • Simplified Customs Declarations criteria must be met • Entry in declarant’s records • Regular shipping services • Temporary storage* • Authorised weigher • Transit simplifications • Customs Rep in OMS • Special procedures Union Customs Code Protective marking – Unclassified
Streamlining customs procedures Customs procedures reduced • Release for Free Circulation • Export • Special Procedures • – External and Internal Transit Transit • – Customs Warehousing and Free Zones Storage • – Temporary Admission and End-Use Specific Use • – Inward and Outward Processing Processing Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 15
Guarantees • Required for authorisations to operate certain procedures • To cover actual & potential customs debts • Reduced Guarantees and Guarantee Waivers available Reduction or Waiver Reduced guarantee (30%) where AEO(C) status for duty deferment is held or criteria met available to AEO(C) holders Art. 95.2 UCC Art. 95.3 UCC Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 16
Guarantees: potential and actual debts Guarantees for potential debts Operators using customs duty suspension procedures will require a guarantee as security for the potential debt Guarantee waivers will only be available to those who meet AEO(C) criteria or hold AEO(C) or AEO(F) status Guarantees for actual debts e.g. Deferment guarantees may be reduced for holders of AEO(C) status Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 17
Temporary storage • Time limits to keep goods under temporary storage increased to 90 days • A guarantee will be required unless the conditions for a reduction or waiver are met • For AEO(C) holders some conditions for authorisation can be considered as met • Movements under temporary storage used to replace national transit • Movements between different authorisation holders require both to have AEO(C) status • Transfer of responsibilities when the goods are entered in the records of the recipient • TS facility cannot be operated by a third party Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 18
Timing Proposal & Processes • UCC Regulations entered in to legal force on 30 October 2013 • Legally applicable from 1 May 2016 • Changes will be phased in from 1 May 2016 to December 2020 • Negotiations commenced from 10 February 2014 • Aim is to finalise the legal text by early summer 2015 • Introduce new authorisation procedures before 1 May 2016 Protective marking – Unclassified
AEO update UK – EU – (includes UK figs) 576 applications received 16,798 Applications received Certificates issued = 354 Certificates issued = 13,385 • AEO(F) = 289 • Germany 6237 • AEO(C) = 54 • Netherlands 1409 • AEO(S) = 11 • France 1072 • Italy 854 • Poland 712 • Spain 569 • Sweden 323 *Figures correct at August 2014 - AEO database available on Europa website at www.ec.europa.eu/taxation_customs/dds/cgi-bin/aeoaeoquery?Lang=EN Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 20
Further information- UCC • HMRC’s UCC homepage: www.hmrc.gov.uk • Customs Information Papers (13) 62 and (14) 03 • Frequently Asked Questions • Email: international.documents@hmrc.gsi.gov.uk • EU site: http://ec.europa.eu/taxation_customs/customs/customs_code • www.gov.uk Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 21
Further information- AEO • HMRC’s AEO homepage ( www.hmrc.gov.uk) • AEO Public Notice 117 • AEO Central Site, tel: 03000 564 556 • EC AEO Guidelines TAXUD/B2/047/2011 • EU website: http://ec.europa.eu/taxation_customs • www.gov.uk Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 22
Any Questions? AEO is all about International Supply Chain Security and facilitation of legitimate trade Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 23
Thank you HM Revenue & Customs Warwick House 67, Station Road Redhill, Surrey RH1 1QU (T) 03000 536 930 (E) paul.carter3@hmrc.gsi.gov.uk
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