Update on the Union Customs Code
An update on the Union Customs Code coming into affect May 1 2016 – which is extremely important
The Union Customs Code (UCC)was adopted on 9 October 2013 as Regulation (EU) No 952/2013 of the European Parliament and of the Council. It comes into effect on May 1 2016. The below is a headlines summary of some of the main changes.
- Removal of the earlier sales provisions relating to customs valuation. Meaning customs duty will be charged on the last sale of goods before entry into the Community (EU). This will significantly increase duty costs for importers who currently use the value of an earlier in a chain of transactions.
- New or renewed authorisations for customs reliefs will require guarantees. There are significant changes to Inward Processing relief, which will absorb Processing under Customs Control, and Inward Processing drawback will no longer be permitted.
Under the code AEO will remove the new requirement for potential duty guarantees, as well as reducing the requirement by (70%) for deferment guarantees. Without AEOs it is suggested that guarantees will not be a waiver.
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