TradeLane

The Authorized Economic Operator (AEO) program represents both the carrot and the stick for EU customs authorities. While there are many significant benefits to becoming AEO certified, not being certified could eventually mean greater financial costs and customs delays. Shippers should be aware that the Union Customs Code (UCC) will change the requirements to become, or remain AEO certified.  

The UCC is an updated and revised version of the Modernised Customs Code. The changes are aimed at further modernizing  EU customs and procedures by facilitating legitimate trade, ensuring safety and security, creating a paperless customs environment and standardizing customs controls.  

By now, you may have noticed that I associate a large portion of my blogs with something near and dear… My sweet cherubs.  In our house, we have some simple “no-no rules.”   They are pretty standard, don’t shave the dog, don’t put gum in your brother’s hair, you see where I am going here, pretty straight forward…..  

Customs Audits……Stop rolling your eyes like you did when your Father told you “good things come to those who wait” or “Rome wasn’t built in a day.”

Often when I ask importers about their duty liability the response I receive is, “Yes… but its only 5%.”  Well if I had 5% of the 5% for every time I ask…. you get the picture.  Whilst the duty paid on individual importations may not amount to a substantial cost, over time the “only 5%” can add up to significant sums.  If you are still not convinced, consider what’s more challenging: expanding your sales to increase net profit by 5%, or reducing the cost of the imported product through duty mitigation?

I suspect many of you have continued reading, so allow me to introduce a valuable duty mitigation method: the Tariff Concession System. In Australia the Tariff Concession System was designed to help industry become more competitive in the international markets by allowing duty-free importation of certain products that are eligible for a Tariff Concession Order (TCO).  Upon application, a TCO is made in respect of goods if substitutable goods are not produced in Australia, in the ordinary course of business.  In this context, substitutable goods are Australian produced goods which have a use corresponding to a use of the imported goods. A number of goods are excluded from TCO eligibility, such as clothing, foodstuffs and some passenger motor vehicles.

Importers participating in the Reconciliation Prototype Program (RPP) need to be aware that U.S. Customs and Border Protection recently started reviewing all reconciliation bond riders currently on file.