For weeks now there have been rumours that the implementation of EU's Modernised Customs Code will be delayed from the planned June 2013 date, either in full or part. As part of the 78th meeting of the Directors General for Customs of the EU Member States and Turkey a statement was made as to the EU's intentions on the Modernised Customs Code.
The key phrases, as I see it, are that the EU Commissioner is stressing a "limited and targeted intervention in the Code" and urging "sustained efforts to finalise the draft implementing legislation as quickly as possible".
But he also says they should use the occasion to correct some provisions of the Code to elements which are no longer in line with current EU legislation, or "have revealed too difficult or unworkable to be implemented". Any idea what they mean by this?
The full speech by Algirdas Šemeta EU Commissioner for Taxation and Customs Union, Audit and Anti-Fraud "Pooling our efforts to build a modern Customs Union" can be accessed HERE
Vilnius, 19 May 2011
Keep up to date and comment on Customs changes in the European Union. Includes AEO Status, Modernised Customs Code (MCC) and new procedures for Customs 2013.
Sunday 22 May 2011
Friday 11 March 2011
HS 2012 - amendments to commodity code system
The World Customs Organisation (WCO) has published the agreed amendments to the Harmonized System (HS) nomenclature, it will come into force on 1 January 2012. The HS Coding system, which was first introduced in 1988, is reviewed every 5 years.
About the amendments: environmental and social issues of global concern are the major feature of the HS 2012 amendments, particularly the use of the HS as the standard for classifying and coding goods of specific importance to food security and the early warning data system of the United Nations’ Food and Agriculture Organization (FAO).
New subheadings have been created for the separate identification of certain edible vegetables, roots and tubers, fruit and nuts, as well as cereals. HS 2012 also features new subheadings for specific chemicals controlled under the Rotterdam Convention and ozone-depleting substances controlled under the Montreal Protocol.
As this will be a significant change with major impact on some businesses, we are hoping that a correlation table will be available next year to give time for businesses to up-date systems.
In brief changes (some minor others more significant) will be found in all chapters 1-30; 38 +39; some chapters in 40 series but not Chp 40 itself, within the scope of Chapters 50-59; most of 60; minor tweaks in 70 series, 82 and 84; lot of changes Chapter 85 including anew sub-headings 8507.50 for Nickel-metal hydride and 8507.60 for Lithium-ion batteries; some 87, 90, 92, 93; lots in chapter 95.
About the amendments: environmental and social issues of global concern are the major feature of the HS 2012 amendments, particularly the use of the HS as the standard for classifying and coding goods of specific importance to food security and the early warning data system of the United Nations’ Food and Agriculture Organization (FAO).
New subheadings have been created for the separate identification of certain edible vegetables, roots and tubers, fruit and nuts, as well as cereals. HS 2012 also features new subheadings for specific chemicals controlled under the Rotterdam Convention and ozone-depleting substances controlled under the Montreal Protocol.
As this will be a significant change with major impact on some businesses, we are hoping that a correlation table will be available next year to give time for businesses to up-date systems.
In brief changes (some minor others more significant) will be found in all chapters 1-30; 38 +39; some chapters in 40 series but not Chp 40 itself, within the scope of Chapters 50-59; most of 60; minor tweaks in 70 series, 82 and 84; lot of changes Chapter 85 including anew sub-headings 8507.50 for Nickel-metal hydride and 8507.60 for Lithium-ion batteries; some 87, 90, 92, 93; lots in chapter 95.
Monday 28 February 2011
MCC - Self-Assessment
If a company is AEO approved this “Self Assessment” simplification will permit the company to:
bring goods into the EU without a financial declaration at import (though a security declaration will be required – ie summary declaration) the company will then submit a monthly declaration of duty liability (similar to the VAT returns currently in place) and payment of duty and VAT will be made periodically (monthly/quarterly as approved).
There are still issues to be agreed on this simplification and the actual implementing provisions (which tells us how to use this procedure) are not in place.
bring goods into the EU without a financial declaration at import (though a security declaration will be required – ie summary declaration) the company will then submit a monthly declaration of duty liability (similar to the VAT returns currently in place) and payment of duty and VAT will be made periodically (monthly/quarterly as approved).
There are still issues to be agreed on this simplification and the actual implementing provisions (which tells us how to use this procedure) are not in place.
Monday 21 February 2011
MCC - Centralised Clearance
"Centralised clearance" was introduced in Article 106 of the Modernised Customs Code as a possibility for importers that hold an authorisation for this purpose to both declare and pay customs duties to the customs administration of their Member State of authorisation, independent from the actual place of import and destination of goods within the EU.
However, under the present rules of the VAT directive (directive 2006/112/EC), the importers, even using centralised clearance, would still be subject to VAT obligations in each Member State of physical arrival and destination of goods.
Therefore, keeping the import VAT system unchanged would run against the simplification objective of the Modernised Customs Code and against the Commission-wide objective of easing administrative burden on businesses.
The possible solutions were analysed by VAT and customs experts in the relevant working groups of the Commission dealing with these issues.
Contributions are sought by HMRC/ EU Commission from businesses that are considering using customs centralised clearance simplification in the future. The aim of this consultation is to obtain business views on a series of solutions relating to the possible adaptations of VAT collection rules.
However, under the present rules of the VAT directive (directive 2006/112/EC), the importers, even using centralised clearance, would still be subject to VAT obligations in each Member State of physical arrival and destination of goods.
Therefore, keeping the import VAT system unchanged would run against the simplification objective of the Modernised Customs Code and against the Commission-wide objective of easing administrative burden on businesses.
The possible solutions were analysed by VAT and customs experts in the relevant working groups of the Commission dealing with these issues.
Contributions are sought by HMRC/ EU Commission from businesses that are considering using customs centralised clearance simplification in the future. The aim of this consultation is to obtain business views on a series of solutions relating to the possible adaptations of VAT collection rules.
Thursday 27 January 2011
Customs 2013
New debating group has been started on LinkedIN on Customs 2013.
Current topics on the forum are:
Customs 2013 - how will it affect EU imports?
In the first instance we are interested in logging comments on AEO applications and membership.
UK Customs and EU requirements for bonds and the "changes" to CFSP and customs procedures.
EU Exporters - can we rely on mutual recognition of AEO status?
does or has anyone any problems with the new ICS (Import Control System) ?
Current topics on the forum are:
Customs 2013 - how will it affect EU imports?
In the first instance we are interested in logging comments on AEO applications and membership.
UK Customs and EU requirements for bonds and the "changes" to CFSP and customs procedures.
EU Exporters - can we rely on mutual recognition of AEO status?
does or has anyone any problems with the new ICS (Import Control System) ?
Sunday 23 January 2011
Import Control System (ICS)
Import Control System (ICS) – new procedures for all importers started 1st January 2011
The pre-arrival messaging system has finally been introduced into the UK. The aim of the ICS is to send early information to UK/EC customs on all shipments arriving from outside the EC. This will allow customs authorities to refuse shipments if they are deemed to be a security risk. ICS has been designed to fit within current processes such as the presentation of shipping/ airline manifests to obtain release of cargo. HMRC have confirmed that an agreement with the Commission has been reached following representations from the trade and Member States that a period of leniency from 1 January 2011 (anticipated 2 months) will be given to enable businesses to fully test their systems using live data without fear of financial penalties if they do not submit Entry Summary Declarations. The responsibility lies with the carriers and forwarders to file these pre-arrival messages with EU Customs. Customs Authorities, on receipt of the details, decide whether to grant the cargo “Permission to Proceed” so the goods can be loaded and shipped, detain on arrival in the EU for further checks or deny the right to load. May not be the responsibility of importing companies to do the reporting but the outcome is definitely important to any importers. Check your forwarders and carriers are OK with the system before the period of leniency ends.
The pre-arrival messaging system has finally been introduced into the UK. The aim of the ICS is to send early information to UK/EC customs on all shipments arriving from outside the EC. This will allow customs authorities to refuse shipments if they are deemed to be a security risk. ICS has been designed to fit within current processes such as the presentation of shipping/ airline manifests to obtain release of cargo. HMRC have confirmed that an agreement with the Commission has been reached following representations from the trade and Member States that a period of leniency from 1 January 2011 (anticipated 2 months) will be given to enable businesses to fully test their systems using live data without fear of financial penalties if they do not submit Entry Summary Declarations. The responsibility lies with the carriers and forwarders to file these pre-arrival messages with EU Customs. Customs Authorities, on receipt of the details, decide whether to grant the cargo “Permission to Proceed” so the goods can be loaded and shipped, detain on arrival in the EU for further checks or deny the right to load. May not be the responsibility of importing companies to do the reporting but the outcome is definitely important to any importers. Check your forwarders and carriers are OK with the system before the period of leniency ends.
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