How will goods cross EC borders post UCC?
HMRC has updated its guidance notes on the Union Customs Code (UCC) which is being introduced across the EC on 1 May 2016.
Details here
Main points
- The UCC is a revision of the Modernised Customs Code (MCC) and there will be a number of changes to how goods cross EU borders.
- Some transitional arrangements will operate until 2020.
- Mandatory guarantees for most special procedures and temporary storage (TS) – this only applies to new authorisations.
- The ability to make some movements under TS rather than national transit or Electronic Transit System (ETS) – formerly New Computerised Transit System (NCTS).
- The removal of the earlier sales provisions relating to valuation – but there are some transitional arrangements.
- All communications between customs authorities and economic operators must be electronic.
- Valuation: The earlier sale facility will be withdrawn and replaced by a last sale only rule.
- Under the UCC there will be some circumstances where the provision of a guarantee is mandatory.
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Royalties and licence fees – Currently, for a royalty fee to be liable to duty it must: relate to the imported goods, and be paid as a condition of sale of those imported goods. Under the UCC, royalties and licence fees will generally be paid as a condition of the sale of the goods and should be included in the customs value.
Some procedures and reliefs will cease or change on 30 April 2016, these are:
- The €10 waiver of customs duty for free circulation customs declarations – where customs duty is payable no de-minimis exemption will apply – this doesn’t affect any Community System of Duty Reliefs (CSDR) duty reliefs.
- Goods being declared to Onward Supply Relief (OSR) can only be entered using a full customs declaration or the Simplified Declaration Procedure (SDP).
- The use of Information Sheets for Special Procedures (INF) documents with an Entry in Declarant’s Records (EIDR).
- Inward Processing Drawback (IP (D)) and Low Value Bulking Imports (LVBI) authorisations will no longer be valid and these authorisations can’t be used to import goods regardless of any expiry dates shown on your authorisations.
- Processing under Customs Control (PCC) authorisation holders will be given an Inward Processing (IP) authorisation number which must be used for new importations after 30 April 2016.
- Type D customs warehousing authorisation holders will be given a new authorisation number with a prefix of C (for type D authorisation), or E (for a type E warehouse with type D rules of assessment) – these must be used for entries to customs warehouses after 1 May 2016, the normal debt rules of assessment will apply.
- Goods being declared to LVBI will only be entered using an SDP authorisation.
System changes
HMRC expects that some changes to economic operators’ systems will be needed. However this will depend on which authorisations are held and what procedures or processes individual businesses use. A plan for the major IT changes is already in place.
Economic Operator Registration and Identification (EORI)
There are no changes to the EORI process. It is a requirement for all economic operators (such as businesses) involved in international trade to be registered and to have an EORI number. You’ll need to have an EORI number to be able to apply for any customs authorisations, approvals or decisions. For details on EORI see here