ups global webinar: europe’s new union customs code: how it may affect your trade
TRANSCRIPT
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Europe’s Union Customs Code
• Panelist
• Norm Schenk, LCB
• Public Affairs Vice President
• Panelist
• Walter Van der Meiren
• Customs Brokerage Director
• Host
• Greg Maddaleni, LCB
• Customs Brokerage Manager
Presenters
Changing the global trade landscape
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
3
UCC Changes
Agenda
UCC objectives
Legal framework
Timing
• Staggered approach but the clock is ticking
UCC changes
Questions and answers
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
World trade projections
Source: April 2016 WTO analysis
European trade is expected to grow at or above global trade rates
-1.8%
-0.3%
3.2%
4.3%
3.2%3.7%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2012 2013 2014 2015 2016P 2017P
World Imports
North Am Central/South Am Asia M.E./Afr. Europe
0.8%
1.7%2.0%
3.7%
3.1%
4.1%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2012 2013 2014 2015 2016P 2017P
World Exports
North Am Central/South Am Asia M.E./Afr. Europe
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UCC Objectives
• Streamline customs legislation and procedures
• Offer greater legal certainty and uniformity to businesses
• Increase clarity for all EU customs officials
• Simplify customs rules/procedures
• Facilitate more efficient customs transactions
• Complete the shift by Customs to a paperless and fully electronic environment
• Reinforce swifter customs procedures for economic operators (AEO)
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
6
UCC legal framework
UCC
Work ProgramTransitional
Delegated Act
IT Deployment – December 2020
Implementing provisions
Delegated act Implementing act
BPM
Guidelines
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Jan 2017
7
Timeline for implementation
May 2016 Mar 2019
Dec 2020
Oct 2020
Feb 2020
Binding
origin
Temporary
Storage
Warehousing
Binding tariff
Proof of union
status
Exporter
declaration
Region
centralised
clearance
Guarantee
Entry summary
declaration
Completion of
IT
enhancements
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
8
Discussion overview
Being AEO
• What it now means to be AEO certified
Facilitating the movement of goods
• Export
• Import
• Intra
• Storage/ Warehousing
Financial
• Binding tariff
• Trade agreements
• Value / valuation
• Customs debt
Safety & security
• Entry summary declaration
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
9
First topic: being AEO
Being AEO
• What it now means to be AEO certified
Facilitating the movement of goods
• Export
• Import
• Intra
• Storage/ Warehousing
Financial
• Binding tariff
• Trade agreements
• Value / valuation
• Customs debt
Safety & security
• Entry summary declaration
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Authorised Economic Operator: a prerequisite to other benefits
10
What is changing:• New criteria:
• Satisfactory compliance history in other taxation areas
• Practical standards of competency (3 years experience)
or hold professional qualifications in customs matters
• Timing: immediate
Import Export
• Criteria: Compliant and trustworthy economic operator
• Authorisation for customs simplifications (AEO C) or
Authorisation for security and safety (AEO S)
• Benefits:
• Access to customs simplifications
• Few physical and documentary controls
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
11
Second topic: facilitating the movement of goods
Being AEO
• What it now means to be AEO certified
Facilitating the movement of goods
• Export
• Import
• Intra
• Storage/ Warehousing
Financial
• Binding tariff
• Trade agreements
• Value / valuation
• Customs debt
Safety & security
• Entry summary declaration
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Processes facilitating the movement of goods: export
12
• To export means to take Union goods outside the customs territory
of the Union
• A Union exporter:
– Is established in the Union customs territory
• Has a fixed place of business
– Has the power to take goods outside of the Union
• Alternative: use customs representative with indirect representation
Exporter definition
What is changing:
- Narrower definition on who has power to export
- Timing: TBD
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
13
Processes facilitating the movement of goods: import
Centralised clearance, simplified release, self assessment
• Centralised clearance
– Declaration to be lodged at office in EU member state which granted
authorisation
– Goods to be presented and imported into another member state
• Entry into the declarant’s records
– Allows releasing goods using a simplified data set (followed with a
more comprehensive entry)
• Self assessment
– Authorised entity takes responsibility and performs certain
formalities/controls normally undertaken by customs
What is changing:
- New procedures and processes requiring IT systems and
guidance documents to be developed (1 Oct 2020)
- AEO C authorisation is a pre-requisite
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Declarations associated with shipment movements: intra-Europe
14
• Maritime movements between member states
• The PoUS will become electronic with the Master Reference
Number as a unique identifier
• Economic operators who are approved as authorised issuers may
issue a customs goods manifest as proof themselves
Proof of union status (PoUS)
What is changing:• To become an electronic process
• Timing: 1 March 2019
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Declarations associated with shipment movements: warehousing
15
• Temporary storage
• Ability to move goods under temporary storage
• 90 days
• Warehousing
• Simplification: 6 types going down to 3 levels
• Reduction for warehouse guarantees with AEO C authorisation
Temporary storage and warehousing
What is changing:• Authorisation for temporary storage required
• In bond document no longer required
• 90 days to postpone payment of customs duties
• Warehousing: simplification of designations
• Timing: immediate
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
16
Third topic: classification /financial
Being AEO
• What it now means to be AEO certified
Facilitating the movement of goods
• Export
• Import
• Intra
• Storage/ Warehousing
Financial
• Binding tariff
• Trade agreements
• Value / valuation
• Customs debt
Safety & security
• Entry summary declaration
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and
other public sources and reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and
completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
17
Financial
• Binding tariff information
• Economic operators can obtain tariff classification for goods they intend to import
or to export
• Valid for three years
• Binding upon the holder (once determined, must be applied)
• Valid across EU
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
What is changing:• Validity changed from 6 years to 3 years
• Once attained, must be applied – declarant must inform customs
• Timing: 1 May 2016
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and
other public sources and reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and
completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
18
Financial
• Binding origin information (BOI)
• For non-preferential origins
• Binding upon the holder
• A BOI decision can be issued upon application and provides legal certainty
regarding the determination of origin of goods
• Non-preferential list rules are applicable for more products.
What is changing:• Origin rules: apply “list rules” regarding non-preferential agreements
• Timing: January 2017
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Financial
• Elimination of first sale rule
– Must apply the last sale to determine value
– Only where binding contract already in place before 18 Jan 2016 is there an exception
• Royalties and license fees (and assists)
– Generally should be included with the value of the goods
• Considered a condition of sale
• Guarantees
– Compulsory throughout the EU
– Single guarantee to cover multiple procedures, movements and declarations
– An AEO C authorisation required to reduce the guarantee to cover the payment of actual debts
19
What is changing:• Valuation: elimination of first sale and broader inclusion of royalties, fees and assists
• Guarantees: will become mandatory across the Union and will require AEO status for attaining a waiver
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Financial
• All amounts on dutiable shipments may be be collected, even under 10 Euro
• Following Member States have announced they will collect all amounts
20
Member State Country Code Current New
Czech Republic CZ No YesIreland IE No Yes
Republic of Latvia LV No Yes
Kingdom of the Netherlands
NL No Yes
Republic of Austria AT No Yes
United Kingdom of Great Britain
and Northern IrelandUK No Yes
Customs Debt
What is changing:• All amounts will be collected, will have an impact on duties and VAT to be paid
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
21
Fourth topic: safety & security
Being AEO
• What it now means to be AEO certified
Facilitating the movement of goods
• Export
• Import
• Intra
• Storage/ Warehousing
Financial
• Binding tariff
• Trade agreements
• Value / valuation
• Customs debt
Safety & security
• Entry summary declaration
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and
other public sources and reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and
completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
22
Safety and Security
Entry summary declaration
• 7 + 1 elements of information prior to loading
• Dual filing
• 6 Digit HTS code mandatory
• Applicable to all shipments, value independent (currently only for
shipments with a value above 22 Euro)
What is changing:• Applicable to all shipments (not just ocean)
• Timing: 1 October 2020
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
23
Preparedness timelines vary
May 2016AEO authorisation / temporary storage / warehousing
/ binding tariff0 Months
Jan 2017Binding origin information 8 Months
Mar 2019 Proof of union status* 22 Months
Feb 2020Exporter declaration* 45 Months
Oct 2020Centralised clearance / guarantee / entry summary
declaration*53 Months
Dec 2020Completion of IT enhancements* 56 Months
* IT enhancements to be performed by AEO in anticipation of these deadlines
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
24
Questions and answers
UPS Trade Management Services – when you join forces with an expert
UPS TMS consulting services UPS TMS managed services
Improve compliance and reduce the possibility of errors Improve processing and reduce your exposure to issues
of noncompliance
Minimise the chance of costly delays Simplify broker management with one point of contact
and greater consistency
Decrease time spent on customs issues Increase time to focus on business growth
Reduce the risk of violating government regulations for
trade programs
Decrease the chance of post-entry penalties due to
incorrect filings
Capitalise on accurate classifications
to reduce tariffs
Streamline data management to maximise filing
efficiency
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Union Customs Code in a nutshell
The European Union is establishing a new legal framework intended to (1) simplify and standardise customs rules and
procedures, (2) increase the security of the supply chain and (3) facilitate more efficient customs transactions via a completely
paperless process, using electronic communication and centralised IT systems for both businesses and customs authorities.
The implementation of the UCC requires changes to business models and impacts customer supply chains. Some of the major
changes for importers and exporters are:
Financial• The current first sale rule will be replaced by a last sale only rule,
possibly increasing the amount of duties to be paid when
importing.
• Royalties and license fees will generally be considered to be paid
as a condition of sale of the goods and should be included in the
customs value, possibly increasing the amount of duties to be
paid when importing.
• Under the current legislation, a member state has the discretion
to decide when a guarantee is or isn’t required. Under the UCC
there will be circumstances where the provision of a guarantee is
compulsory
Physical Handling• Warehouse types change – new authorisations will need to be requested (between
now and 2019)
• The time limit for goods under the Temporary Storage procedure will increase from
20/45 to 90 days, making it ;ore attractive alternative to customs warehousing
Safety and Security
• In order to obtain certain customs simplifications (i.e. centralised clearance,
guarantees...), the authorization as Authorised Economic Operator Customs
becomes mandatory.
• An AEO C authorisation will be required in order to reduce the guarantee to cover the
payment of actual debts
All communications between customs authorities and economic operators must be electronic, however there will be transitional period between 1st of May 2016 and 31 December 2020, in which a series of IT systems will gradually be implemented by the EU Commission, Member States and Trade.
Source: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/index_en.htm
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Europe’s UCC
26
• The Union Customs Code will change how trade is conducted in the European Union
• Please consult UPS’s Union Customs Code Customer Guide
• Ask today upon checking out
• Contact your UPS sales executive
• Upcoming webinar topics:
• May 19: Continued ACE implementation – upcoming milestones and deadlines
• Trans-Pacific Partnership (summer 2016)
The material and information contained in this document is for general information purposes only. UPS does not act as a customs law adviser. You
should not rely upon this material or information as a basis for making any business, legal or any other decisions. UPS makes no representations or warranties
of any kind, express or implied about the completeness, accuracy, reliability, suitability or availability with respect to the material and information contained in
this document for any purpose. UPS will not be liable for any false, inaccurate, inappropriate or incomplete information presented in the document.