08/01/2014
Union Customs Code – Main points
Union Customs Code – Main points
Members of the Customs Consultative Committee will recall receiving a presentation on the Union Customs Code at the meeting of 29 October 2013.
The Union Customs Code (UCC) entered into force on the 30 October 2013 and will serve as the new framework Regulation on the rules and procedures for customs throughout the EU. It will enshrine in legislation a number of important practices which, up to now, have been implemented on a case by case basis, in order to address the challenges of the modern trade environment. As such, it will offer greater legal certainty to businesses and increased clarity for customs officials throughout the EU. The new Code streamlines and simplifies customs rules and procedures and facilitates more efficient customs transactions in line with modern-day needs.
However, the UCC cannot be applied fully without associated Implementing Provisions which have yet to be adopted. These provisions will, in accordance with the Lisbon Treaty, be provided for in “Delegated’’ and “Implementing’’ acts which will be published shortly, finalised in the coming months, and begin to operate from 2016 onwards. While complete certainty as to the final position is not yet possible, the following is a brief summary of the main changes to existing regimes and practices envisaged as a result of the UCC.
• Article 6 provides that exchanges of information between customs authorities and economic operators, including any applications for approvals or simplifications, must be by electronic means.
• Article 18(3) allows greater scope for traders to use a Customs Representative established outside of the Member State in which they are providing a service.
• Article 22(6) lays down harmonised rules on decision making and on the Right to be Heard by the applicant prior to adoption of a disadvantageous decision.
• Article 33(2)(b) provides that Binding Tariff Information (BTI decisions) will be binding on the holder and Customs will be required to perform post clearance checks to ensure compliance.
• Article 33(3) provides that BTI decisions will now have a reduced validity period, down from 6 years to 3 years.
• Article 39 introduces an additional criterion for the granting of AEO status which requires that an applicant’s practical standards of competence or professional qualifications be assessed. This will affect existing AEOs who will need to be re-assessed under this criterion.
• Article 42 provides for each MS to have a Penalties regime in place for failure to comply with Customs legislation.
• Article 76 provides that the methods for determining the Customs Value of goods will be laid down in the implementing acts, potentially allowing for the retention of the ‘’first sale’’ concept, which would have been withdrawn under the Modernised Customs Code.
• Article 89 generally provides for Guarantees effective in all Member States, although the possibility for guarantees which are effective in just one Member State is retained.
• Article 179 reinforces the concept of Centralised Clearance.
• Article 185 retains the possibility of Self Assessment, although an additional obligation has been introduced whereby applicants must be Authorised Economic Operators.
• Articles 243-249 effectively discontinue Type II Free Zones.
• Articles 256-258 provide for the merger of the Inward Processing and Processing under Customs Control procedures and the Inward Processing drawback system will be discontinued.
• Article 268 provides that the procedural rules on the exit of goods from the Union will be laid down in the implementing acts, potentially allowing for the retention of the Single Transport Contract facility, which would have been withdrawn under earlier proposals.
The above is a brief summary of some of the main points but economic operators and their representative bodies should monitor the discussions on the supplemental legislation commencing in early 2014. As always, Revenue will bring key issues to the attention of trade through the Customs Consultative Committee and this forum will provide a vehicle for trade concerns to be brought to the attention of Irish delegates attending the EU discussions.
Members of the Customs Consultative Committee will recall receiving a presentation on the Union Customs Code at the meeting of 29 October 2013.
The Union Customs Code (UCC) entered into force on the 30 October 2013 and will serve as the new framework Regulation on the rules and procedures for customs throughout the EU. It will enshrine in legislation a number of important practices which, up to now, have been implemented on a case by case basis, in order to address the challenges of the modern trade environment. As such, it will offer greater legal certainty to businesses and increased clarity for customs officials throughout the EU. The new Code streamlines and simplifies customs rules and procedures and facilitates more efficient customs transactions in line with modern-day needs.
However, the UCC cannot be applied fully without associated Implementing Provisions which have yet to be adopted. These provisions will, in accordance with the Lisbon Treaty, be provided for in “Delegated’’ and “Implementing’’ acts which will be published shortly, finalised in the coming months, and begin to operate from 2016 onwards. While complete certainty as to the final position is not yet possible, the following is a brief summary of the main changes to existing regimes and practices envisaged as a result of the UCC.
• Article 6 provides that exchanges of information between customs authorities and economic operators, including any applications for approvals or simplifications, must be by electronic means.
• Article 18(3) allows greater scope for traders to use a Customs Representative established outside of the Member State in which they are providing a service.
• Article 22(6) lays down harmonised rules on decision making and on the Right to be Heard by the applicant prior to adoption of a disadvantageous decision.
• Article 33(2)(b) provides that Binding Tariff Information (BTI decisions) will be binding on the holder and Customs will be required to perform post clearance checks to ensure compliance.
• Article 33(3) provides that BTI decisions will now have a reduced validity period, down from 6 years to 3 years.
• Article 39 introduces an additional criterion for the granting of AEO status which requires that an applicant’s practical standards of competence or professional qualifications be assessed. This will affect existing AEOs who will need to be re-assessed under this criterion.
• Article 42 provides for each MS to have a Penalties regime in place for failure to comply with Customs legislation.
• Article 76 provides that the methods for determining the Customs Value of goods will be laid down in the implementing acts, potentially allowing for the retention of the ‘’first sale’’ concept, which would have been withdrawn under the Modernised Customs Code.
• Article 89 generally provides for Guarantees effective in all Member States, although the possibility for guarantees which are effective in just one Member State is retained.
• Article 179 reinforces the concept of Centralised Clearance.
• Article 185 retains the possibility of Self Assessment, although an additional obligation has been introduced whereby applicants must be Authorised Economic Operators.
• Articles 243-249 effectively discontinue Type II Free Zones.
• Articles 256-258 provide for the merger of the Inward Processing and Processing under Customs Control procedures and the Inward Processing drawback system will be discontinued.
• Article 268 provides that the procedural rules on the exit of goods from the Union will be laid down in the implementing acts, potentially allowing for the retention of the Single Transport Contract facility, which would have been withdrawn under earlier proposals.
The above is a brief summary of some of the main points but economic operators and their representative bodies should monitor the discussions on the supplemental legislation commencing in early 2014. As always, Revenue will bring key issues to the attention of trade through the Customs Consultative Committee and this forum will provide a vehicle for trade concerns to be brought to the attention of Irish delegates attending the EU discussions.
