Tag Archives: UCC

Customs Declaration Service (CDS) – Update

By   23 October 2018
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As many will be aware, CDS will fully replace the Customs Handling of Import and Export Freight (CHIEF) system later this year/early next year, full details here.This will affect any business which imports or exports goods from or to countries outside the EU (and possibly will affect businesses which trade with the EU in the event of a No Deal Brexit).

HMRC have provided more information on the implementation of CDS.

They say that the number of businesses making declarations via CDS will grow over coming months. If you have not been contacted by HMRC then your business is not part of this first group. The time your business begins using CDS will depend on its(or its agent’s) software developer or Community System Provider. HMRC expect remaining importers will start to move to CDS early in the New Year. Exporters will migrate to CDS when export functionality becomes available in March 2019. This means that CDS and CHIEF will run in parallel for a short period of time. Import declarations will be made in CDS whilst export declarations will continue to be made in CHIEF.

Not an ideal situation, but it does seem prudent to phase CDS in in this way.

Checklist

  • Visit Customs Declaration Service to understand how the changes affect your business and what you will need to do to prepare for the introduction of CDS and when. This includes making sure you have a Government Gateway account and an EORI number.
  • A new Trade Tariff will be used for declarations on CDS to comply with the Union Customs Code (UCC) so it is important you take the time to understand how the information you provide as part of your declarations will change. The imports tariff can be found on the link above. The exports Tariff will be available later in the year.
  • If you use a software provider or agent, you may also want to check they are aware and are preparing for the new CDS.
  • If you use a C88 form or the National Export System to make declarations, please visit the web page above where you can find more information.

If you have any queries we will be pleased to help.

Changes to the import of goods

By   10 August 2018
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If a business imports goods from countries outside the EU, there are changes being made by HMRC which it needs to beware of. If a business currently uses the UK Trade Tariff to make Customs declarations it will be affected by these changes.

The changes are set out here for imports. We understand that the changes for exports will be made available later in the year.

If a business’ agent or courier completes its declarations on its behalf, it may be prudent for a business to contact them discuss the impact of the changes.

Background

An overview of the changes may be found here

And a general guide to importing here

Why is the Tariff changing?

HMRC is phasing in the new Customs declaration Service (CDS) here from August to replace the current Customs Handling of Import and Export Freight (CHIEF) system. As well as being a modern, digital declaration service, CDS will accommodate new legislative requirements under the Union Customs Code UCC here In order to comply with the UCC, a business will need to provide extra information for its declarations which can be found in the tariff.

When will a business be required to use the new Tariff?

The majority of importers will start using CDS after November 2‌018, once their software provider or in-house software team has developed a CDS compatible software package. Some importers will start making declarations on CDS before this, but there is no action for a business to take unless it has been contacted by HMRC to be part of this group.

Brexit

As is very common with Brexit, it is unknown how the UK leaving the EU will affect this position. With a No-Deal Brexit seeming likely, the above rules are likely to apply to goods brought into the UK from other EU Member States after next March.

Please contact us should you have any queries.

UCC extension of time to implement systems

By   5 March 2018
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The Union Customs Code (UCC) is part of the modernisation of customs and serves as the new framework regulation on the rules and procedures for customs throughout the EU.

On 2 March 2018, the EC proposed that Customs authorities and economic operators be allowed to continue using already existing systems for the completion of certain customs formalities until 2025 at the latest. While most of the new or upgraded electronic systems that are necessary to apply the provisions of the UCC will be operational by 2020, some electronic systems may not be fully completed until 2025. Therefore this proposal would ensure that, in the case of the small number of customs formalities to be managed by the electronic systems that will not be completed by 2020, already existing electronic systems or paper-based procedures can continue to be used until the new systems are ready.

Full details of the latest proposals here

More on the background of how UCC affects UK importers and exporters here

Changes to the treatment of cross-border movement of goods from 1 May 2016

By   8 October 2015
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How will goods cross EC borders post UCC? 

HMRC has updated its guidance notes on the Union Customs Code (UCC) which is being introduced across the EC on 1 May 2016.

Details here

Main points

  • The UCC is a revision of the Modernised Customs Code (MCC) and there will be a number of changes to how goods cross EU borders.
  • Some transitional arrangements will operate until 2020.
  • Mandatory guarantees for most special procedures and temporary storage (TS) – this only applies to new authorisations.
  • The ability to make some movements under TS rather than national transit or Electronic Transit System (ETS) – formerly New Computerised Transit System (NCTS).
  • The removal of the earlier sales provisions relating to valuation – but there are some transitional arrangements.
  • All communications between customs authorities and economic operators must be electronic.
  • Valuation: The earlier sale facility will be withdrawn and replaced by a last sale only rule. 
  • Under the UCC there will be some circumstances where the provision of a guarantee is mandatory.

  • Royalties and licence fees – Currently, for a royalty fee to be liable to duty it must: relate to the imported goods, and be paid as a condition of sale of those imported goods. Under the UCC, royalties and licence fees will generally be paid as a condition of the sale of the goods and should be included in the customs value.

Some procedures and reliefs will cease or change on 30 April 2016, these are:

  • The €10 waiver of customs duty for free circulation customs declarations – where customs duty is payable no de-minimis exemption will apply – this doesn’t affect any Community System of Duty Reliefs (CSDR) duty reliefs.
  • Goods being declared to Onward Supply Relief (OSR) can only be entered using a full customs declaration or the Simplified Declaration Procedure (SDP).
  • The use of Information Sheets for Special Procedures (INF) documents with an Entry in Declarant’s Records (EIDR).
  • Inward Processing Drawback (IP (D)) and Low Value Bulking Imports (LVBI) authorisations will no longer be valid and these authorisations can’t be used to import goods regardless of any expiry dates shown on your authorisations.
  • Processing under Customs Control (PCC) authorisation holders will be given an Inward Processing (IP) authorisation number which must be used for new importations after 30 April 2016.
  • Type D customs warehousing authorisation holders will be given a new authorisation number with a prefix of C (for type D authorisation), or E (for a type E warehouse with type D rules of assessment) – these must be used for entries to customs warehouses after 1 May 2016, the normal debt rules of assessment will apply.
  • Goods being declared to LVBI will only be entered using an SDP authorisation.

System changes

HMRC expects that some changes to economic operators’ systems will be needed. However this will depend on which authorisations are held and what procedures or processes individual businesses use. A plan for the major IT changes is already in place.

Economic Operator Registration and Identification (EORI)

There are no changes to the EORI process. It is a requirement for all economic operators (such as businesses) involved in international trade to be registered and to have an EORI number. You’ll need to have an EORI number to be able to apply for any customs authorisations, approvals or decisions. For details on EORI see here