6


Issue 6 2015 - Freight Business Journal


///NEWS


Union Customs Code


The European Commission says that its long-awaited and heavily delayed Union Customs Code will come into force on 1 May next year. It aims to usher in “a simpler, more modern and integrated EU customs system to support cross- border trade and provide for more EU-wide cooperation in customs matters.” The plan, adopted in 2013, sets out detailed rules for 21st Century customs processes and is the culmination of several years of work by the Commission on a major overhaul of customs rules in the EU. Detailed acts must now be adopted so that the new rules can be applied from 1 May 2016, says the Commission. While the Commission’s


announcement does give clarity on the


likely timetable, BIFA


director general Robert Keen said that many association members were still uncertain on how to properly implement the new procedures and regulations, and how changes to European Customs procedures and container weight verification may affect their business activities. He added:


“BIFA is already delivering regional briefings on the


expected outcomes of the UCC, but in November our members, and others in the international supply chain will have the opportunity to hear from HMRC and BIFA on the changes planned and be brought up-to-date on the new procedures that become law in May and July next year.” BIFA is organising a conference


on 26 November to bring together its members, HMRC and other stakeholders to discuss the impending changes, together with an assessment of the current situation concerning the EU’s Authorised Economic Operator (AEO) programme. (1 Great George Street, London, 09:30-15:30. The conference will also discuss the new container weighing rules. More details at http://www.bifa. org).


The European Shippers Council


commented that the member states, through the European Council and European Parliament will now have two months to make suggestions on the final Commission text, aſter which the European Parliament can either reject or accept the whole package. The ESC is urging the


Commission to involve the trade as much as possible in the implementation process and said that it would also participate in a discussion with permanent representatives of the member states in September, at which it would make a final attempt to convince EP and Member- States to enhance the level of trade facilitation, specifically for simplified procedures like self assessment, entry into the records and centralised clearance. The Commission itself promised


that the UCC would simplify the inward processing relief system which allows processing of non-EU goods without payment of import duty. There would also be clearer rules to ensure equal treatment of economic operators


in the


EU, provisions to allow customs decisions and authorisations to be valid across the EU in the future, common data requirements for new customs IT systems to ensure a seamless exchange of information and improvements in risk management to fight trade in illicit and prohibited goods, terrorism and other criminal activities.


May Day for the


Code could increase costs, says Langdon


The EU’s Union Customs Code (UCC), far from reducing costs for UK businesses, could actually increase them, according to Langdon Systems. It argues that customs release of goods from some premises will be delayed and the Code imposes some unwelcome financial and operational constraints for thousands of UK businesses. While the code is intended to


standardise the movement of trade across EU member states, simplify Customs rules and improve security and safety, companies that do not comply with one of its cornerstones, the Authorised Economic Operator (AEO) scheme, could face increased costs, says Langdon. It estimates that of the 196,000 UK businesses involved in the logistics sector, currently fewer than 400 are AEO authorised, well behind their main European competitors like Germany which has over 11,000. However, the change could


at the same time allow logistics providers to expand their operations by offering extended services to shippers unwilling or unable to go through the AEO process themselves. Businesses also need to be


aware that significant trading


partners with the EU have adopted, or are developing, an equivalent standard and some firms, in particular those based in the US, are choosing not to associate with those that don’t have AEO accreditation. Mandatory guarantees will be


enforced for all businesses that fail to operate to AEO standard. They will be costly and apply not just to Customs debt but in some cases an undertaking to cover all business debts will be required. It is likely that this will deter companies from operating their own facilities and look for third- party logistics providers, Langdon argues. Langdon Systems customs


manager, Dave Bradbury, predicts: “AEO status will become a necessity for many businesses trading internationally. As well as the financial implications, failure to attain AEO status will result in delays of release for all goods from a Customs procedure and the possibility of lengthy ones where further scrutiny/examination is required. It is important therefore that those providing logistics services are aware of the implications and impact on them when dealing with businesses


authorized for Customs activities.” While most freight forwarders,


transport companies and warehouse owners have little experience of what the new legislation entails, Langdon Systems says its’ AEO (C) solution will address these challenges. The


company provides a


dedicated service for those intent on achieving AEO (C) status for businesses established in the UK and other EU Member States and is urging them to ensure their operations are compliant by the 1 May 2016 deadline. Around 40% of Langdon


Systems’ existing client base have already taken advantage of its AEO four-day programme for their Customs and logistics operations and the company is currently rolling out the offering to non-clients to help firms avoid the pitfalls of not being accredited, including withdrawal of existing Customs Authorisations. It is also offering a one


day introductory seminar to take companies through


the


background and aims of the UCC and detail the effect AEO will have on companies trading internationally. Cost is £750 plus VAT per person - http://aeo. langdonsystems.com/


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40