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Union Customs Code

One giant step forward or two steps back?

April 13, 2016

WelcomeBienvenido

3© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

AgendaSubject Speaker Time

Break 11.20-11.40

Panel members

Welcome Leon Kanters/Juan Jose Blanco

09.00-09.10

Key messages on UCC Bob Jones/ Godfried Smit

09.10-10.10

Customs Valuation Bart Jan Kalshoven 10.10-11.20Siegert Slagman, Godfried Smit, Kay Masorsky Erik Mennes

Special procedures and other major topics

Diederik Bogaerts 11.40-12.50Godfried Smit, Kay Masorsky, Bob Jones, Stephane Chasseloup

Closing Leon Kanters 12.50-13.00

Union Customs Code (‘UCC’) 2016An overview of the main changes

Bob Jones

Director – Trade & Customs

April 13, 2016


UCC Overview – with you today

Bob JonesDirector, KPMG UK

T: +44 (0)20 73118589E: [email protected]

Ana Martul PestanaAssistant Manager, KPMG UK

T: +44 (0)20 0207 694 3980

E: [email protected]

Godfried SmitEuropean Shippers’ Council

T: +32 2 7068186

E: [email protected]


Evolution of the EU’s Customs Legislation

1992/3

2008

1 May2016

2020?

Current Community Customs Code

Package

Modernised Customs Code

(“MCC”)Reg. 450/2008

IT InteroperabilityDevelopments

Commission Delegated Reg on Transitional Rules

2016

UCC Work Programme

Decision 2014

Union Customs Code 2013

CommissionDelegated Reg,

Implementing Reg 2015


The 5 pieces of the UCC Package

Union Customs Code (“UCC”)

Regulation of the European

Parliament and the Council 952/2013

CommissionDelegated Regulation

2446/2015(“UCC DA”)

Commission Implementing

Decision 2014/255(“UCC Work Programme”)

CommissionImplementing

Regulation2447/2015(“UCC IA”)

Transitional Period 1 May 2016 to 31 December 2020

Commission Delegated Transitional Regulation

2016/314 (“UCC TDA)

Development and Deployment of 16 EU Customs IT systems

In their absence, use— Existing systems, or

— Paper-forms


Union customs code – NavigationTitle I General Provisions, art. 1 – 55

Title II Foundations, art. 56 – 76

Title III Customs debt and guarantees, art. 77 – 126

Title IV Import procedure, art. 127 – 152

Title V Customs status and verification, art. 153 – 200

Title VI Free circulation, art. 201 – 209

Title VII Special procedures, art. 210 – 262

Title VIII Export, art. 263 – 277

Title IX Final provisions, art. 278 – 288

Scope legislation, IR art. 1 Scope legislation, DR art. 1

Information, IR art. 2 – 7 Information, DR art. 2 – 7

Representation, No IR applicable Representation, No DR applicable

Decisions, IR art. 8 – 23 Decisions, DR art. 8 – 22

AEO, IR art. 24 – 35 AEO, DR art. 23 – 30

Penalties, No IR applicable Penalties, No DR applicable

Appeals, No IR applicable Appeals, No DR applicable

Control, IR art. 36 – 47 Control, No DR applicable

Keeping documents, No IR applicable Keeping documents, No DR applicable

Currency conversion, IR art. 48 Currency conversion, No DR applicable

Tariff, IR art. 49 – 56 Tariff, No DR

Origin, IR art. 57 – 126 Origin, DR art. 31 – 70

Customs value, IR art. 127 – 146 Customs value, DR art. 71

Customs debt, No IR applicable Customs debt, DR art. 72 – 80

Guarantee, IR art. 147 – 164 Guarantee, DR art. 81 – 86

Recovery, (re)payment and remission, IR art. 165 – 181

Recovery, (re)payment and remission, DR art. 87 – 102

Extinguishment, No IR applicable Extinguishment, DR art. 103

Entry, IR art. 182 – 188 Entry, DR art. 104 – 113

Arrival, IR art. 189 – 193 Arrival, DR art. 114 – 118

Customs status, IR art. 194 – 215 Customs status, DR art. 119 – 133

Customs procedure, IR art. 216 – 237 Customs procedure, DR art. 134 – 152

Verification, IR art. 238 – 247 Verification, DR art. 153 – 154

Disposal of goods, IR art. 248 – 250 Disposal of goods, No DR applicable

Free circulation, IR art. 251 - 252 Free circulation, DR art. 155 – 157

Relief from duty, IR art. 253 - 257 Relief from duty, DR art. 158 – 160

General provisions, IR art. 258 – 271 General provisions, DR art. 161 – 183

Transit, IR art. 272 – 321 Transit, DR art. 184 – 200

Warehousing and free zones, No IR applicable Warehousing and free zones, DR art. 201 – 203

Specific use, IR art. 322 – 323 Specific use, DR art. 204 – 239

In/outward processing, IR art. 324 – 325 In/outward processing, DR art. 240 – 243

(Re–)export, IR art. 326 – 344 (Re–)export, DR art. 244 – 249

Final provisions, IR art. 345 - 350 Final provisions, DR art. 250-256

UCC, Regulation (EU) No 952/2013UCC – IR, Regulation (EU) No 2015/2447 UCC – DR, Regulation (EU) No 2015/2446


Duty principles remain, rules more prescriptive— Classification No change under the UCC - the

Harmonised System, Combined Nomenclature and TARIC will continue to apply. Modifications made to the rulings process. No change to duty rates under the UCC

— Rules of origin will be broadly unchanged, but more prescriptive. Modifications to the rulings and certification processes

— Valuation is still according to the GATT/WTO code, but much less flexibility in application than the CCC

— Declarations and Procedures become more uniform, prescriptive and have been rationalised.

Origin

Classification Valuation

Where was it made?

What is the good?

What is its value?

Procedures

The devil is in the detail!


Timing of major changes under the UCC

Immediate Impact from 1 May 2016ValuationSpecial Procedures introducedNew Simplifications

Impact between 1.5.2016 and 31.12.20Transitional Re-assessment of AuthorisationsFinancial guaranteesBenefits for Authorised Economic Operators (“AEO”)

Impact later in transitional periodSelf AssessmentCentralised Clearance


European Shippers’ Council

Shipper = Transport-user

Goods should reach their destination at the right time in the right condition and against a reasonable price


How was trade involved?

Trade Contact Group (TCG)

Electronic Customs Coordination Group (ECCG)

Workshops and seminars


Why has the process taken that long?

— Number (28) and diversity of Member-States

— Lisbon-treaty, institutional changes

- Implementing, Delegated Acts

— Societal development does not stop during period of development (facilitation, security, fraud, IT, harmonisation etc.)


Background of changesIT is standard1

More harmonised procedures, level-playing field2

Union wide validity (26 UCC)3

Legal protection (22 UCC)4

Security/anti-fraud 5


Paperless environment

IT used for exchange of information (and storage of information) between customs and trade based on: Common data!


Exceptions

— Use of IT is not appropriate (for instance travellers)

— In case of failure (temporary)

- Contingency

— During the transitional period

— Derogation on justified request MS


Management instruments

Multi Annual Strategic Plan01

IT-Working plan02

Business process modelling03


UCC ProjectsTarget end date of transitional period

S1 2016

S2 2016

S1 2017

S2 2017

S1 2018

S2 2018

S1 2019

S2 2019

S1 2020

S2 2020

1. UCC REX 01/01/2017

2. UCC Core BTI/Surv2+ phase 1 01/03/2017

UCC Full BTI phase 2 01/10/2018

3. UCC Customs Decisions 02/10/2017

4. Direct Trader Access 02/10/2017

5. UCC Proof of Union Status (PoUS) 02/10/2017

6. UCC AEO updates 01/03/2018

7. UCC Surveillance 3 02/10/2018

8. UCC NCTS Common and Community Transit System

01/10/2018

9. UCC Automated Export System (AES) 01/03/2019

10. UCC Information Sheets for Special Procedures

01/10/2019

11. UCC Special Procedures 01/10/2019

12 UCC Notification of arrival, presentation notification and temporary storage

02/03/2020

13. UCC Centralised Clearance for Import (CCI) 02/10/2020

14 UCC Guarantee Management 02/10/2020


Entry in Declarant’s Records (EiDR)

— Many facilitations exclusively for AEO-companies

- Centralized clearance (179 UCC)

- Entry in Declarant’s Records (182 UCC)

- Self-Assessment (185 UCC)

- Reduction of guarantee (38 UCC)

- Movement under temporary storage (118 UCC)

— New requirements on training or experience


Further advantages AEO

Mutual recognition

No re-examination


Centralized clearance

54

32

1Decoupling presentation and monitoring (comparable with cross-border authorizations under SASP)

Shared customs service is possible

Standardized application amongst Member-States

Customs of MS where declaration is lodged will supervise and manage controls for verification

One European IT-system


Centralized clearance/scopePossible for many procedures (149 UCC/DA)

— Release for free circulation

— Warehousing

— Temporary admission

— End-use

— In- and outward processing

— (Re-)export


Entry into the records

— Fulfil several AEO-criteria from art. 39 UCC:

- Absence serious or repeated infringements

- High level of control flow of goods

- Practical standards of competence or proof of qualifications

- Customs control-plan required

— Replacing present home-clearance procedure


Observations

Commission is already asking trade sector for missed opportunities in UCC Pilot article could be used to test innovations Ambitions on Single Window and Coordinated Border Management are low

Will the UCC be able to keep pace with fast changing logistical environment?


UCC Binding Decisions – Main Changes

— Period of Validity

— Binding on the holder

— ‘One type of good’

— Uniform classification process

— Period of grace after revocation


UCC – Binding Decisions Detail from 1 May 2016 Until 30 April 2016 From 1 May 2016

CCC Title I – General provisions

Chapter 2 – Sundry general provisions relating in particular to the rights and obligations of persons with regard to customs rules

- Section 3 – Information (articles 11-12)

UCC Title I – General provisions

Chapter 2 - Rights and obligations of persons with regard to thecustoms legislation

- Section 3 – Decisions relating to the application of the customs legislation (articles 22-37)

CCIP Title II – Binding Information

Chapter 1 – Definitions (article 5)

Chapter 2 – Procedure for obtaining information – notification of information to applicants and transmission to the Commission(articles 6-8)

Chapter 3 – Provisions applying in the event of inconsistencies in binding information (article 9)

Chapter 4 – Legal effect of binding information (articles 10-12)

Chapter 5 – Provisions applying in the event of expiry of binding information (articles 13-14)

Annex 1 - Model of binding tariff information (BTI) notification form

Annex 1A – Binding origin information

Annex 1B - Model of binding tariff information (BTI) application form

IA Recital (14) –Since the electronic system relating to binding tariff information is yet to be upgraded, paper forms for BTI applications and decisions need to be used until the system is upgraded.

Title I – General provisions

Chapter 2 –Rights and obligations of persons with regard to the customs legislation

- Section 2 – Decisions relating to the application of customs legislation (articles 16-23)

Annex A – Formats and codes of the common data requirements for applications and decisions

Annex 12-02 – Binding origin information decisions

DA Title I – General provisions

Chapter 2 - Rights and obligations of persons with regard to the customs legislation

- Section 2 – Decisions relating to the application of the customs legislation (articles 19-22)

Title IX – Final provisions

Article 252 - Validity of decisions on binding information already in force on 1 May 2016

Annex A - Common data requirements for applications and decisions

Draft Transitional Regulation

Recital (8) – Transitional period for electronic system for BTI applications and decisions

Chapter 1 – General provisions

- Section 2 – Decisions relating to BTIArticle 4 – Form of BTI applications and decisions

Annexes 2-5 – Format of BTI applications and decisions before and after electronic system upgrade* (not available yet)


UCC – Origin – Main Changes

Non Preferential Origin

— More specific rules where multiple countries involved

— Extension of “qualifying operations”

— General Residual Rule

— Minimal Operations List

Preferential Origin

— REX registration from 1 January 2017

— Changes to certain EUR1 and GSP processes between 1 January 2018 and 30 June 2020


UCC – Origin – Details from 1 May 2016 Until 30 April 2016 From 1 May 2016

CCC Title II – Factors on the basis of which import duties or export duties and the other measures prescribed in respect of trade in goods are applied

Chapter 2 – Origin of Goods- Section 1 – Non-preferential origin (articles 22-26)

- Section 2 – Preferential origin of goods (articles 27)

UCC Title II – Factors on the basis of which import or export duty and other measures in respect of trade in goods are applied.

Chapter 2 - Origin of goods- Section 1 – Non-preferential origin (articles 59-63)

- Section 2 – Preferential origin (articles 64-66)

- Section 3 – Determination of origin of specific goods (articles 67-68)

CCIP Title IV – Origin of goods

Chapter 1 – Non-preferential origin- Section 1 – Working or processing conferring origin (articles 35-40)

- Section 2 - Implementing provisions relating to spare parts (articles 41-46)

- Section 3 - Implementing provisions relating to certificates of origin (articles 47-65)

Chapter 2 – Preferential origin- Section 1 – Generalised system of preferences (articles 66-97a-w)

- Section 2 - Beneficiary countries or territories to which preferential tariff measures adopted unilaterally by the Community for certain countries or territories apply (articles 97x-123)

Annexes 9 to 22

IA Recital (22) – (25)

Chapter 2 – Origin of goods- Section 1 – Proof of non-preferential origin (articles 57-59)


Annexes 22-02 to 22-20

DA Title II – Factors on the basis of which import or export duty and other measures in respect of trade in goods are applied.

Chapter 2 - Origin of goods- Section 1 – Non-preferential origin (articles 31-36)


Annexes 22-01 to 22-13

Draft Transitional Regulation

N/A

UCC –Customs Valuation AspectsBart-Jan Kalshoven

Director – Trade & Customs

April 13, 2016


Agenda

Transaction to be used for

valuation purposes (Article 70

UCC/Article 128 UCC-IR)

The (non-) dutiability of royalty

charges (Article 71-1-c UCC/Article

136 UCC IR)

Case studies/

Panel discussion

Transaction Value


The Basics – Transaction Value

Article 128 UCC-IR

1. The transaction value of the goods sold for export to the customs territory of the Union shall be determined at the time of acceptance of the customs declaration on the basis of the sale occurring immediately before the goods were brought into that customs territory.

2. Where the goods are sold for export to the customs territory of the Union not before they were brought into that customs territory but while in temporary storage or while placed under a special procedure other than internal transit, end-use or outward processing, the transaction value will be determined on the basis of that sale.


Intention of Article 128 UCC-IR

Manufacturer Middleman EU Importer

Article 128-1 UCC-IR

ManufacturerManufacturer

(bondedfacility)EU Buyer

Article128-2 UCC-IR


What constitutes the sale occurring immediately before the goods were brought into the EU?


Divergent Interpretations

Manufacturer(China)

Importer(France)

Customer(Belgium)

1 June 2016Purchase Order


15 June 2016Production

30 June 2016Importation

5 July 2016Delivery/Invoicing


Definition of Sale

Not provided in the UCC or its Implementing or Delegating Regulations

A harmonized interpretation requires that national civil law concepts are not relevant

ECJEU case number C-116/12: Necessary to interpret the term ‘sale’ broadly

WTO: The basis for valuation of goods should to the greatest extent possible, be the transaction value of the goods being valued.


Example 1

Car Manufacturer(Japan)

Car Dealer(Spain)

Private Individual(Spain)



1 August 2016Production

15 September 2016Importation

1 October 2016Delivery/Invoicing


Example 2

Car Manufacturer(Japan)

Car Dealer(Dubai)

Private Individual(Spain)



1 August 2016Production 15 September 2016

Importation

1 October 2016Delivery/Invoicing (DDP)


Unifert (ECJEU//C-11/89)

The criterion which emerges from the term 'sold for export' relates to the goods and not to the situation of the seller. Placed in its proper context, the term suggests that it is agreed, at the time of sale, that the goods originating in a non-member country will be

transported into the customs territory of the Community. Therefore, there is nothing to prevent both parties to such a sale

from being established in the Community.



Legality of Article 128-1 UCC-IR

First Sale concept in use over 35 years

Sanctioned by ECJEU (C-11/89)

Apparently in line with ‘sold for export’ definition

‘Last sale for import’ principle therefore contradicting to ‘sold for export’ principle laid down in Article 70 UCC?

Article 128-1 UCC-IR necessary or appropriate (ECJEU C-48/98)?

Royalties


The Basics – Royalties

Article 136 UCC-IR

4. Royalties and licence fees are considered to be paid as a condition of sale for the imported goods when any of the following conditions is met:

a) the seller or a person related to the seller requires the buyer to make this payment

b) the payment by the buyer is made to satisfy an obligation of the seller, in accordance with contractual obligations

c) the goods cannot be sold to, or purchased by, the buyer without payment of the royalties or license fees to a licensor.


When can goods not be purchased by a buyer without payment of royalties?


Guidance

Draft guidelines European Commission (25 February 2016 - Taxud B4/(2016) 808781)

WCO Commentary 25.1


WCO Commentary 25.1There is a reference to the royalty or license fee in the sales agreement or related documents.

There is a reference to the sale of the goods in the royalty or license agreement.

According to the terms of the sales agreement or the royalty or license agreement, the sales agreement can be terminated as a consequence of breaching the royalty or license agreement because the buyer does not pay the royalty or license fee to the licensor.

There is a term in the royalty or license agreement indicating that if the royalties or license fees are not paid, the manufacturer would not be permitted to manufacture and sell the goods incorporating the licensor's intellectual property to the importer.

The royalty or license agreement contains terms that permit the licensor to manage the production or sale between the manufacturer and importer (sales for export to the country of exportation) that go beyond quality control.


Alternative Structures?

Manufacturer(China)

Procurement Entity(Austria)

Sales Entity(Austria)

Licensor(United States)

Royalty Charge31 January 2017


1 July 2016Production 15 August 2016

Purchase Order1 August 2016

Importation

20 August 2016Delivery/Invoicing


Alternative Structures?

Manufacturer(China)

Buy/Sell Entity(Austria)

Licensee(Austria)

Licensor(United States)

Royalty Charge31 January 2017


1 July 2016Production

15 August 2016Sale

1 August 2016Importation

Fiscal Unity


Legality of Article 136-4 UCC-IR

Article 136-4 UCC-IR necessary or appropriate (ECJEU C-48/98)?

Case Studies/Panel Discussion


Panelists

Mr. Siegert SlagmanDirector Indirect Taxation Philip Morris International

Mr. Godfried SmitEuropean Affairs ManagerEVO/Dutch Shippers’ Council

Mr. Kay MasorskyPartner –Trade & CustomsKPMG in Germany

Mr. Erik Mennes Manager –Trade & CustomsKPMG Meijburg & Co in the Netherlands


Case 1— Indexco buys hand-carved wooden coffee tables

in India and stores them in a Bombay warehouse awaiting orders.

— After a visit to France, Indexco's sales manager believes that there is a market in the Community for his company's products and ships ten samples of eight types of table on speculation to Bordeaux via sea freight. The eight types of table cost Indexco an average of 2000 rupees each.

— While the ship is crossing the Atlantic Ocean, Indexco sells all eighty coffee tables to Montabco of Paris for EUR 6,400 ECU, FOB Bombay.

— Before the goods arrive in Bordeaux, they are resold by Montabco to a customer in Brussels for EUR 7,200.

Indexco

India

Montabco

Customer

EU


Case 2— Canexco, a firm established in a third country,

buys in a third country petroleum products which meet the norms of the EC market. These purchases are made subsequent to receipt of specific orders by Canexco from the Belgian firm, Fimco.

— Due to limitations in its stockage facilities in Belgium, Fimco requests that Canexco holds the goods in its facilities for a three week period before shipment to Belgium. The goods are subsequently shipped to Belgium.

Canexco

Non-EU

Fimco

EU


Case 3— Cosmetics Inc. is a US company engaged in the

marketing of various types of perfumes, cosmetics, creams, etc., which it sources from various manufacturers throughout the world (Price A).

— The European operations are directed from Cosmetics head office in Syracuse, New York and consist of rented offices in Brussels, out of which sales persons visit the purchasing offices of EU drug stores, negotiate prices, take orders and send them for processing (shipping products, invoicing and collection of accounts) to Syracuse.

— Products are sold to EU customers on a delivered, duty paid basis (Price B). Although the sales persons have the authority to negotiate prices and sales contracts they do not have a general authority to contract on behalf of Cosmetics Inc.

Cosmetics, Inc.

Non-EU

Drug Stores

EU

DDP delivery

Cosmetics, Inc.EU Rep Office


Case 4— Importer I purchases sports bags from foreign

manufacturer M, as well as from other suppliers. Importer I, manufacturer M and other suppliers are all unrelated.

— Importer I, on the other hand, is related to company C which holds the right of a trademark. Under the terms of a contract between I and C, C transfers the right to use the trademark to I against a royalty payment.

— Importer I furnishes manufacturer M and other suppliers with labels bearing the trademark which are affixed to the sports bags before the importation.

Manufacturer M

Non-EU

Importer I

EU

Licensor C

Customs procedures and simplifications under the UCC

Diederik Bogaerts

April 13, 2016

Customs procedures


Overview customs proceduresSimplification and allignment

Transit

Storage

Specific use

Processing

External

Internal

Customs Warehousing

Free zones

Temporary admission

End-use

Inward processing

Outward processing

Special procedures

Export

Import


Administrative transitional rulesAuthorizations:

— No validity date

— Validity date

Discharge of customs procedures (placing before 1/5/2016):

— Special destination

— Temporary admission

— Customs warehouse types A, B, C, E and F

— Customs warehouse type D

— Inward processing – suspension

— Inward processing – drawback

— Outward processing

— Processing under customs control

Re-assessment

Before end date

CCC UCC

CCC CCC

CCC UCC

CCC CCC UCC

CCC UCC

CCC CCC

CCC CCC

CCC UCC

01/05/2016 01/01/2019 01/05/2019


StorageWarehouse types:

— Public warehouse I, II and III

— Private warehouse: type D abolished

Authorization: AEOC requirements

Equivalence possible

Distance selling possible

Customs warehousing

Storage


Temporary storageAuthorization: AEOC requirements

Holder authorization:

— Liable

— Keeping records

— Providing guarantee

Declaration for temporary storage

Max. period: 90 days

Movement possible

Temporary storage

1a 1b

2


ProcessingAuthorization

— Validity: 3 to 5 years

— Authorization: AEOC requirements

— Authorization: equivalence possible

— Usual forms of handling admitted

Inward processing

— No compensation interest anymore

— Destruction falls within definition of processing

— Period of discharge up to 6 months

Outward processing

— Duty calculation based on added value method only

Inward processing

Outward processing

Processing

Processing under Customs Control

processing


Guarantees— Mandatory

— Single guarantee

— Reference amount

— Actual debts

— Potential debts

— Comprehensive guarantee

— Reduction/Waiver


Export

CCIP definition exporter UCC-DA definition

exporterArticle 788

1. The exporter within the meaning of Article 161(5) of the Code, shall be considered to be the person on whose behalf the export declaration is made and who is the owner of the goods or has a similar right of disposal over them at the time when the declaration is accepted.

2. Where ownership or a similar right of disposal over the goods belongs to a person established outside the Community pursuant to the contract on which the export is based, the exporter shall be considered to be the contracting party established in the community.

‘exporter’ means

a) the person established in the customs territory of the Union who, at the time when the declaration is accepted, holds the contract with the consignee in the third country and has the power for determining that the goods are to be brought to a destination outside the customs territory of the Union,

b) the private individual carrying the goods to be exported where these goods are contained in the private individual’s personal baggage,

c) in other cases, the person established in the customs territory of the Union who has the power for determining that the goods are to be brought to a destination outside the customs territory of the Union.

Simplified customs procedures


Overview

20201/5/2019201820171/5/2016

Entry into the Declarant’s Records

(EiDR)

Self-assessment

(SA)

Simplified declaration

Centralized Clearance

(CC)


EiDRAuthorization

— AEOC requirements: entry in records

— AEOC authorization: presentation of goods waiver

Not to be used:

— Transit and temporary storage

— (re-)import: onward supply VAT exemption

— (re-)export: pre-departure declaration is required

— Excise goods

— INF sheet

Entry into the declarant’s records

Company

EiDR – presentation waiver

Customs office


Panelists

Mr. Bob JonesDirector –Trade & CustomsKPMG in the UK

Mr. Godfried SmitEuropean Affairs ManagerEVO/Dutch Shippers’ Council

Mr. Kay MasorskyPartner –Trade & CustomsKPMG in Germany

Mr. Stephane ChasseloupDirector –Trade & CustomsFidal in France


What shall I do as of 1 May 2016?

Economic Operator Impact assessment

— Economic operator holds following authorizations:

— Customs warehouse (CW) type D

— inward processing suspension (IP/S)

— Processing under customs control (PCC)

— End-use

— LCP – placing under CW, IP/S and PCC

— LCP – re-export from CW, IP/S and PCC

— LCP – import after PCC

— Approved exporter (invoice declaration)

— Economic operator does not hold an AEOC certificate

— Should I take any action or await reaction of the customs authorities?

— Which authorizations will be impacted?

— Will my guarantee amounts increase?

— Shall I apply for an AEOC authorization?


Who will act as exporter?Exporter?Exporter?


BTI or not a BTI, that’s the question….

BTI HOLDER No BTI HOLDER

Party A: Party B:

— Party A requests BTI on 2 May 2016 for tariff code X for good Q

— On 1 June 2016 the customs authorities issue a BTI for good Q with tariff code Y

— Party A corrects previous declarations concerning good Q

— Party A will use tariff code Y for future imports of good Q

— Imports good Q too

— Party B does not request a BTI, uses tariff code X for all declarations

— The customs authorities correct the declarations using tariff code Y

— Party B objects, finally ECJ rules that tariff code X applies to good Q

Who is ultimately better off?

Thank you

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