Monday, 23 May 2016

Modernized EU customs rules to enter into effect

On 1 May 2016, new customs legislation, the Union Customs Code (UCC) will introduce fundamental and substantive changes to the customs rules in the EU and will replace the existing Community Customs Code (CCC) that dates back to 1994. EU member states will need to amend their national legislation to reflect the changes to the rules. The new era of customs law will usher in changes to the way in which goods move across EU borders and will have a major impact on supply chains (with some transitional rules applying until 2020).
The CCC, which is the current basis for customs law throughout the EU, sets out the rules and procedures to ensure the implementation of tariff and other measures in connection with trade between EU member states and third countries, and is supplemented by a regulation (the CCCIP) that lays out implementing provisions. The UCC, adopted in 2013, is supplemented by delegated and implementing regulations published in 2015 – together, these form the “UCC legal package.” A core principle of the UCC is that all customs declarations should be electronic rather than paper-based.
The main objectives of the UCC legal package are as follows:

  • Modernize customs legislation and procedures and the use of customs information systems to facilitate doing business with customs and ensure the safe and secure trade of goods in the EU;
  • Take into account the evolution of policies and legislation in other fields that might affect customs legislation, such as safety and security in the field of transport;
  • Make customs business processes more streamlined and adequate in terms of increased clarity and coherence of customs legislation;
  • Reduce the administrative burden for economic operators through the use of electronic procedures and storage facilities that will reduce reporting formalities and pave the way for further modernization and better coordinated border management;
  • Fully align EU customs rules with global standards, as well as other international and global developments (including developments in the EU major trading partners), which will facilitate and streamline trade, thus increasing export opportunities for EU economic operators; and
  • Protect EU financial resources and fraud-proof European customs legislation by closing loopholes, prevent the inconsistent interpretation and application of rules and provide electronic access to relevant information without creating an additional burden for trade.

Source & more info: Deloitte