union customs code: what to expect from the draft implementing provisions and how to take part in...
DESCRIPTION
Overview of proposed changes to EU customs rules through the adoption of the implementing provisions to the Union Customs CodeTRANSCRIPT
Baker & McKenzie LLP is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organisations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm.© 2014 Baker & McKenzie LLP
EU Anti-Bribery, Trade and Customs Webinar Series 2014Union Customs Code: What to expect from the draft implementing provisions and how to take part in the negotiations
Jennifer Revis, Of Counsel, Baker & McKenzie, London
Peter Starling, Senior Policy Advisor, UK Lead to UCC negotiations
27 February 2014
Speakers
Moderator
Speakers
3
Jennifer is Of Counsel in the EU, Competition and Trade Practice of Baker & McKenzie's London Office. She specialises in customs, trade sanctions and anti-bribery and corruption matters. Jennifer has extensive experience in advising clients on compliance issues (including third party due diligence and in M&A transactions). Jennifer routinely undertakes compliance audits for clients and advises on preparation of voluntary disclosures to government authorities. Jennifer has been on secondment to the UK customs authorities (Her Majesty's Revenue and Customs) in their Tax and Excise Litigation department and to the firm's European Law Centre in Brussels. Jennifer is a member of the London office Anti-Bribery and Corruption Unit. Jennifer is frequently invited to speak at external conferences on trade matters and regularly contributes articles to tax journals.
Baker & McKenzie were ranked Tier 1 for Customs & Excise in Legal 500 (2013).
Jennifer Revis
Of Counsel, London
Tel: +44 20 7919 1381
Peter Starling
Senior Policy Advisor, UK Lead to UCC negotiations
100 Parliament Street
London
SW1A 2BQ
UNION CUSTOMS CODE (UCC)
What is complete & What is still to do
Work already completed
Revision and replacement of the Modernised Customs Code (MCC)
• Negotiations are complete
• UCC published - Regulation 952/2013
• entered into legal force on 30 October 2013 (but only to allow negotiations)
• Operative date for changes to procedures – 1 June 2016 earliest
• Changes will be phased in from 1 June 2016 to 31 December 2020
Key Points
Centralised Clearance
Self Assessment
Guarantees for Duty
Temporary Storage – movements inland and between Member States
Simplifications/facilitations to be retained
Work still to do:
The UCC is high level framework legislation
• Details will be included in the Commission Regulations
• Negotiations got underway in earnest earlier this month
The Commission Regulations will be formed of:
• Delegated Acts (DAs) – which are not subject to any vote by the member states, and which establish “what” has to be done
• Implementing Acts (IAs) – typically subject to a vote by the member states, and which establish “how” it is to be done
Four main Commission Regulations to agree:• IA on the “work programme” – what changes come in when;
• “Final” DA and “general “IA” – what all the rules will be in the end.
• “Transitional” DA – what happens between May 2016 and when changes come in
What will the Commission Acts specify:
Whether an authorisation is required; and if so
• how a trader applies, how Customs process applications and grant authorisations
• Thus whether the requirements are different to now
All the detail on temporary storage, for example
• What records the trader needs to hold, and how, and where
How Centralised Clearance and Self Assessment will work
Size of the task on hand:
UCC contains 288 Articles
• Quite a lot was “stable” from earlier MCC negotiations
• Still took a year, with meetings most weeks, including week-long meetings
The Commission Acts are likely to be
• “Final DA and “general” IA – 800 Articles plus, and 100 plus Annexes – basically the size of the existing IPs
• “Transitional” DA – possibly as much again
• “Work Programme” IA – happily short in Articles!
Commission Acts will also generate
• EU Guidelines on what the law means.
Timescales
This year:
• 13 January – The Commission’s proposed text was issued
• 10 - 14 February – Negotiations began on the IAs and DAs (monthly, week-long meetings with possibly extra “expert meetings” as well; continuing through the year). Meetings with member states scheduled for the second week of each month.
• Commission have also scheduled meetings with the “Trade Contact Group”
• To focus discussion in those meetings, Commission have produced a timetable for member states and trade to provide written comments.
Timescales
2015
• The “final” DA and “general” IA should published by 1 May 2015 – that’s the aim. To do this, they have to be agreed by the end of this year.
• Once those are agreed, attention moves to the “transition” DA.
2016: UCC, the “transitional” and “final” DA and the “general” IA enters into force
• We may well have to agree some further “specific” IAs covering, for example, exemptions from use of IT systems.
Beyond 2016:
• Changes delivered on a transitional timetable (set in the work programme) until end 2020
Main Elements of the UCC
Implementing and Delegated Acts (IAs and DAs)
Centralised Clearance
Self Assessment
Guarantees for Duty
Temporary Storage
Simplifications
Implementing Acts
Similar to current implementing provision process
EU Commission makes a proposal
Discussed within Customs Code Committee
Formal vote
Delegated Acts
No mandatory consultation with MS or other experts
But the Commission are consulting
Some recourse to EU Council and/or European Parliament
Centralised Clearance (CC)
Differing views across the EU about what CC should look like
IT developments will be necessary
We don’t expect it to be introduced before the end of transition – end 2020
Operator MUST be an AEO (c)
Self Assessment (SA)
Operator MUST be an AEO (c) to use SA
• (note – this is where the replacement for the single transport contract at export appears)
Guarantees for Duty
A guarantee will be mandatory for all Special Procedures authorisations
Also for Temporary Storage authorisations
Waivers available where the AEO criteria is met
Duty deferment – guarantee will be able to be reduced for AEO(c) traders
• 30% is proposed.
Temporary Storage
Will operate much as now – that is the plan
Can use commercial records, manifests and port systems
Major change – goods can move inland and between MS under TS control
Simplifications
For example
Single Transport Contract (export) – under SA
Level II simplifications (transit)
BUT – no proposal from the Commission regarding valuation / earlier sales
What do you need to do now?
Trade input will be vital
Look at what you want (and don’t want) in the draft IAs and DAs
Talk to trade associations, Commission, MEPs, and of course us
Where AEO criteria needs to be met (or you need to be an AEO) – look now
Don’t wait for the last minute rush
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Questions?
Baker & McKenzie LLP is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organisations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm.© 2014 Baker & McKenzie LLP
EU Anti-Bribery, Trade and Customs Webinar Series 2014
Union Customs Code: What to expect from the draft implementing provisions and how to take part in the negotiations
The webinar recording for this presentation is available here: http://www.bakermckenzie.com/WBTCEUCustomsWebinarSeries/
27 February 2014