U nion C ustoms C ode BIFA Conference International Trade Development Liaison Officers (ITDLO) Team
UCC ~ EU’s basic customs law • UCC published – Regulation 952/2013 • framework regulation for customs rules and procedures • entered into force on 30 October 2013 (but only to allow negotiations) • Requires implementing legislation – Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 Commission Implementing Act (EU) 2015/2447 of 24 November 2015 Operative date for changes to procedures - 1 st May 2016 earliest • changes will be phased in from 1 May 2016 to 31 December 2020 Protective marking – Unclassified
Aims of the UCC • Facilitation of legitimate trade • Reinforced need to ensure security & safety • Paperless environment for customs & trade • Harmonised & standardised application of customs controls Protective marking – Unclassified
What’s changing…? • All communications between customs & operators to be electronic • AEO criteria • Guarantees for special procedures & temporary storage • Customs procedures • Temporary Storage • Valuation • Simplified Declaration Procedures and Local Clearance Procedures • Preference and Status • Introduction of Centralised Clearance & Self Assessment Protective marking – Unclassified
All communications must be electronic • Paperless environment for customs & trade • Declarations must be made electronically • No more manual declarations • HMRC is currently scoping the impact • NILPs will be expected to be inventory linked • Consultation once more details are available @ Protective marking – Unclassified
Guarantees Under current legislation Member States have discretion to decide when a guarantee is or is not required, but under UCC this will change • Mandatory for authorisations to operate certain procedures • Required for Potential and Existing customs debts • Level of guarantee shall be based on a reference amount and must be sufficient at all times • The debtor provides guarantee • De minimis threshold increased to EUR 1000 • A comprehensive guarantee is available to cover more that one transaction • Transitional arrangements may apply Protective marking – Unclassified
Guarantee for a potential debt (with reduction to 30%) A B C D E F Customs Max value Highest Estimate of Guarantee Amount of Procedure of goods duty rate charges level guarantee within the applicable (BxC%) required procedure to the Max (D/100xE)+ at any time goods liabilities D=F allowed in the procedure at any time (suspended revenue) IP £100,000 5% £5,000 30% £1,500 CW £200,000 5% £10,000 30% £3,000 Total £300,000 5% £15,000 30% £4,500 Potential Debt Protective marking – Unclassified
Comprehensive Guarantees Reduced Guarantees and Guarantee Waivers available only Reduction or Waiver where AEOC status for potential debts is held or criteria met Reduction for actual debts where AEOC is held e.g. deferment Protective marking – Unclassified
Streamlining customs procedures: headlines • IP Drawback & Type D customs warehouses no longer available • PCC merged with IP and no requirement to re-export using IP • Equivalence extended to Storage, Specific Use and Processing procedures • Greater flexibility between procedures aimed at reducing levels of post- clearance action • No compensatory interest under IP or TA • CPEI becomes Special Procedures: Transit Storage Specific use Processing External & Customs Temporary Inward & Internal Warehousing Admission & Outward & Free Zones End-use Protective marking – Unclassified
Transition Arrangements: Special Procedures • Current authorisations may continue until their expiry date but not beyond 30 th April 2019 • For those authorisations with no expiry date - reassessment must be completed before 1 st May 2019 • Goods entered to a Special Procedure after 1 May 2016 must follow the UCC rules, even if a current (pre UCC) authorisation is still being used Protective marking – Unclassified
Special procedures: Storage Customs warehousing • Current types A,C,D,E to be replaced by two types - ‘Private’ or ‘Public’ • Remote retail (internet) sales are permitted • Use of equivalence including where it is impossible to identify their customs status by using accounting segregation • Only the authorisation holder can operate the storage facilities Free Zones – still available under UCC but not used in the UK Protective marking – Unclassified
Special procedures: Processing Outward processing Inward Processing • Use of value added method to • IP and PCC being merged calculate duty due • No intention to re-export • Duty differential method no longer • No standard rates of yield – actual or available average • Prior importation of replacement or • Processed products can be released processed products subject to a to End-use guarantee • Changes to economic test to include • Restriction on who can be ADD, CVD and other similar types authorised removed (no longer has duties to be person arranging processing) • Applicant must indicate on application whether any debt will be calculated under traditional PCC or traditional IP Protective marking – Unclassified
Special procedures: Specific Use Temporary admission End-use • • For diversions, rules of assessment Use of equivalent goods is extended apply at time of diversion to end-use • • Use of equivalent goods extended End-use goods can be entered to to TA in specific cases processing procedure and discharged at end-use rate • Period of use may be extended • beyond 24 months in exceptional Bill of Discharge introduced circumstances to a maximum of 10 • Procedures for moving goods are years aligned with special procedures (no • No compensatory interest more T5s) • Waste and scrap following destruction must be placed under the customs warehousing procedure Protective marking – Unclassified
Valuation • The facility to use an earlier sale is withdrawn • Royalties and licence fees All royalty payments will be dutiable irrespective of the relationship between the manufacturer and third party licensor Protective marking – Unclassified
Transition Arrangements: Valuation Earlier Sales – so called ‘sunset clause’ Article (IA 341) applies until 31 st December 2017. • • Declarant must be able to prove, to the satisfaction of the customs authorities, that they are bound by contracts through to the 31 st December 2017. • Declarant must be able to prove he/she is bound by such an agreement to the satisfaction of the customs authorities to use an earlier sale value Protective marking – Unclassified
Entry in the Declarant’s Records (EIDR) • Replaces Local Clearance Procedures (LCP) • Authorisation required • Must fulfil AEOC criteria • Presentation of goods waiver requires an: application applicant must be an AEO Transitional arrangements apply • Protective marking – Unclassified
Simplified Customs Declarations • Enter goods to a customs procedure without providing a full customs declaration at the point of release • Authorisation required • Supplementary declarations may be waived subject to additional criteria being fulfilled • Provision of a guarantee for imports (dependent on customs procedures used) • Banana importers who do not hold Weighing Certificates at point of importation will be required to use SDP Protective marking – Unclassified
Centralised Clearance Centralised clearance is a new procedure under the UCC where more than one customs authority is involved in the imports or exports • Allows a business to declare their goods to customs authority in one member state but present the goods to customs in another member state • Requires an authorisation and MUST hold AEOC status • Expected date of delivery 2020 • Transition - SASP remains until CC implemented Protective marking – Unclassified
Self Assessment Allows an authorised business to carry out certain customs formalities and determine their customs duty liabilities • Requires an authorisation and MUST hold AEOC status • Notification and payment of customs duty on a periodic basis • Much of the detail, particularly in relation to the management of Import VAT, Excise and Prohibitions and Restrictions has yet to be agreed Protective marking – Unclassified
Tariff Preferences • Enabling businesses to make out origin declarations instead of the current paper certificates, for EUR and GSP • The Registered Exporters System (REX) is a self-certification for exporters that will replace GSP certificates • Registration of exporters under REX will begin on 1 January 2017, with full implementation completed by 30 June 2020 Transition: • No re-assessment required for Approved Exporter authorisations • The registration period for existing UK exporters and re-consignors will be completed by 31 December 2017 and re-consignors will be completed by 31 December 2017 Protective marking – Unclassified
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