Discussions are ongoing with HMRC concerning the implementation of the Union Customs Code.
The vital votes in the EU are now taking place with the legislation expected to pass unchanged (we are now on Revision 7). Sadly some of the hard won facilitations that had been included have now been removed due to the requirements of other EU Directorates. This has left the Customs Administrations of the 28 Member States looking for ‘work arounds’ in order to avoid some of the more restrictive measures. At this stage this could well mean 28 different interpretations of the rules which we will all have to accommodate.
Transitional arrangements are slowing appearing. The final end date for current Authorisations for IPR, PCC, OPR, End Use etc. is either their current end date or 1st May 2019 whichever is the sooner.
However, if any alterations are required to Authorisations it is likely that a new application will be required under the new rules.
For Authorisations without an end date such as Customs Warehousing, CFSP and some Temporary Storage Authorisations there will be a rolling scheme of re-authorisation ending on 1st May 2019.
There are many changes to Customs Warehousing and Temporary Storage (replaces National Transit).
HMRC report that they remain on schedule for the project to replace CHIEF with a new system called Customs Declaration Service (CDS). They expect to have selected a preferred supplier in early January 2016, with a technical specification available in February 2016. The go-live date is October 2017. Significant changes will be needed to our systems and processes when CDS goes live so it is important that companies start to plan now.
HMRC have also clarified that the UK Border Force Trusted Trader Scheme is not the same as the AEO(S) scheme. It is being developed separately. HMRC hope that one of their projects, ‘One Government at the Border’ will bring the two programmes together but there is currently no detail available.
Members will be aware of the financial and marketing importance of the declared ‘economic origin’ of products. Under the UCC the current guidance only List Rules will become part of the legislation and will therefore become mandatory. Members should check how this will affect their declarations and trade as soon as possible so that they can prepare for the change.
Further discussions have taken place regarding the EU scheme to introduce a ‘Standard’ for any company that makes customs entries on behalf of a principal. This will become an ‘accreditation’ for freight forwarding agents, customs brokers, warehouse keepers and any other ‘third party’ who submits customs entries so this will directly affect members.
The BSi have now instigated a formal UK Committee to formulate the UK response. I am pleased to report that CILT is a member of that Committee. At the moment the text of this so called Standard has turned into a statement of criteria for an examination, along with a methodology for how the exam should be conducted making it a qualification not a standard as envisaged in the UCC AEO requirements. The text also assumes candidates will achieve all the competences whilst the UK experience is that individuals working in these areas a usually specialists in one or two competences.
CILT is pressing for this to be altered so that the text reflects the desire for a ‘Professional Standard’ for businesses rather than an examination for individuals. This would then be in line with AEO(C) requirements. The next meeting is on 2nd December so please submit your comments and concerns before then.
As an Institute we have the opportunity to give opinions and to try to influence future decisions with HMRC and the EU Standards body to ensure that legislation does not adversely affect our ability to trade so please do comment on any of the above issues so that CILT can reflect members’ needs.
Please look out for regular updates on the Forum pages on the CILT web site, articles in FOCUS and on social media as these legislative changes will affect everyone in the supply chain.
Comments and views can also be sent to the Forum email address CITC@ciltuk.org.uk or be submitted via LinkedIn here.
Susan Morley
Chairman
Customs and International Trade Compliance Forum