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Union Customs Code
One giant step forward or two steps back?
April 13, 2016
WelcomeBienvenido
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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
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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
Godfried SmitEuropean Shippers’ Council
T: +32 2 7068186
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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
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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
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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
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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!
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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
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European Shippers’ Council
Shipper = Transport-user
Goods should reach their destination at the right time in the right condition and against a reasonable price
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How was trade involved?
Trade Contact Group (TCG)
Electronic Customs Coordination Group (ECCG)
Workshops and seminars
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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.)
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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
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Paperless environment
IT used for exchange of information (and storage of information) between customs and trade based on: Common data!
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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
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Management instruments
Multi Annual Strategic Plan01
IT-Working plan02
Business process modelling03
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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
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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
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Further advantages AEO
Mutual recognition
No re-examination
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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
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Centralized clearance/scopePossible for many procedures (149 UCC/DA)
— Release for free circulation
— Warehousing
— Temporary admission
— End-use
— In- and outward processing
— (Re-)export
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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
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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?
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UCC Binding Decisions – Main Changes
— Period of Validity
— Binding on the holder
— ‘One type of good’
— Uniform classification process
— Period of grace after revocation
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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)
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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
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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)
- Section 2 – Preferential origin (articles 60-126)
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)
- Section 2 – Preferential origin (articles 37-70)
Annexes 22-01 to 22-13
Draft Transitional Regulation
N/A
UCC –Customs Valuation AspectsBart-Jan Kalshoven
Director – Trade & Customs
April 13, 2016
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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
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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.
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Intention of Article 128 UCC-IR
Manufacturer Middleman EU Importer
Article 128-1 UCC-IR
ManufacturerManufacturer
(bondedfacility)EU Buyer
Article128-2 UCC-IR
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What constitutes the sale occurring immediately before the goods were brought into the EU?
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Divergent Interpretations
Manufacturer(China)
Importer(France)
Customer(Belgium)
1 June 2016Purchase Order
10 June 2016Purchase Order
15 June 2016Production
30 June 2016Importation
5 July 2016Delivery/Invoicing
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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.
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Example 1
Car Manufacturer(Japan)
Car Dealer(Spain)
Private Individual(Spain)
1 June 2016Purchase Order
10 June 2016Purchase Order
1 August 2016Production
15 September 2016Importation
1 October 2016Delivery/Invoicing
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Example 2
Car Manufacturer(Japan)
Car Dealer(Dubai)
Private Individual(Spain)
1 June 2016Purchase Order
10 June 2016Purchase Order
1 August 2016Production 15 September 2016
Importation
1 October 2016Delivery/Invoicing (DDP)
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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.
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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
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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.
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When can goods not be purchased by a buyer without payment of royalties?
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Guidance
Draft guidelines European Commission (25 February 2016 - Taxud B4/(2016) 808781)
WCO Commentary 25.1
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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.
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Alternative Structures?
Manufacturer(China)
Procurement Entity(Austria)
Sales Entity(Austria)
Licensor(United States)
Royalty Charge31 January 2017
10 June 2016Purchase Order
1 July 2016Production 15 August 2016
Purchase Order1 August 2016
Importation
20 August 2016Delivery/Invoicing
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Alternative Structures?
Manufacturer(China)
Buy/Sell Entity(Austria)
Licensee(Austria)
Licensor(United States)
Royalty Charge31 January 2017
10 June 2016Purchase Order
1 July 2016Production
15 August 2016Sale
1 August 2016Importation
Fiscal Unity
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Legality of Article 136-4 UCC-IR
Article 136-4 UCC-IR necessary or appropriate (ECJEU C-48/98)?
Case Studies/Panel Discussion
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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
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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
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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
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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
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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
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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
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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
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StorageWarehouse types:
— Public warehouse I, II and III
— Private warehouse: type D abolished
Authorization: AEOC requirements
Equivalence possible
Distance selling possible
Customs warehousing
Storage
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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
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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
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Guarantees— Mandatory
— Single guarantee
— Reference amount
— Actual debts
— Potential debts
— Comprehensive guarantee
— Reduction/Waiver
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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
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Overview
20201/5/2019201820171/5/2016
Entry into the Declarant’s Records
(EiDR)
Self-assessment
(SA)
Simplified declaration
Centralized Clearance
(CC)
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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
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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
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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?
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Who will act as exporter?Exporter?Exporter?
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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