TradeLane

Many trade compliance or logistics managers responsible for their company’s importation process have gone through the internal struggle of deciding whether it would be fruitful to apply for a binding ruling from the EU customs authorities.

This struggle might have been less dramatic then Hamlets, but a struggle after all. To add to the dilemma, the rules surrounding obtaining a BTI are also changing as part of the implementation of the Union Customs Code on May 1^st, 2016.

Did you know that the first football match Queen Elizabeth attended was the 1953 FA Cup Final? Did you know that, during her reign, there have been 12 prime ministers? Did you know that the queen has, during her entire reign, answered around three and a half million items of correspondence?

Obviously, there’s a lot to know about the Royals. They are inescapable if you live in the UK. The Queen is on all of our money; we pay taxes and import duties to Her Majesty’s Revenue and Customs (HMRC). Heck, I even pulled all those facts off of royal.gov.uk.

As a trade consultant, the Royal family is not the only kind of royalty I am interested in. There is also plenty to know about Royalty Payments and how they impact the declared value of goods when they are brought into the European Union.

As we all know, the Union Customs Code (UCC) changes are going into effect on May 1, 2016. We at Tradewin have had our ears to the ground waiting for the latest updates on these changes and how they may affect customs programs and procedures, such as Authorized Economic Operator (AEO) status.

From what we have learned, the UCC will have a big effect on EU traders.  

Under the new UCC, AEO licensing and the Binding Tariff Information process will be among the first changes implemented.

Over the recent holidays, I was having a discussion with my wife regarding how different cultures celebrate and which days are the most important. Being American, my family has always placed a certain emphasis on Christmas Eve. We have dinner together and open one present that evening, while reserving Christmas Day for a leisure breakfast, late lunch, and a trip to the cinema in the afternoon. My wife is Colombian and had a different experience growing up. In Colombia, they do not do a lot to celebrate Christmas on Christmas Eve; all of the festivities take place on Christmas Day. Since we recently moved to the UK, we were both looking forward to the emphasis on Boxing Day. 

The European Commission, however, has let us know that they celebrate Christmas on December 29^th and provided the trade industry with the gift of the Union Customs Code, Delegating and Implementing Acts. The Union Customs Code replaces the Community Customs Code with the goal of modernizing processes and regulations to match up to today’s business climate and technology. The Union Customs Code is effective May 1^st, 2016, but implementation is going to be phased over three years. 

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.