As of May 1, the Union Customs Code (DWU, formerly UCC) comes into effect, replacing the Community Customs Code (CCC). Customs is rapidly digitizing, security is getting more attention and companies need simpler rules. That is why this new customs legislation is needed. On May 1, 2016, the Union Customs Code (UCC) will permanently replace the CDW. The final details of the implementing regulation - the replacement for the TCDW - are currently being finalized.

Transition

Not all changes go into effect immediately on May 1, 2016. There is a transition period for some parts through 2020. Changes that require new or modified IT systems will be postponed to a later date. Transitional provisions also apply to regulations such as customs valuation and type D warehouse. Paper changes, such as AEO or Binding Tariff Information (BTI), will take effect May 1.

Changes
AEO

AEO rules are changing to a limited extent. However, AEO does become more important as a basis for other customs simplifications and authorizations. There are also additional requirements in terms of professional experience or education. A minimum of three years of relevant experience or recognized education is required. Exactly how companies must demonstrate this is still unclear.

Customs value

Customs value continues to be determined in several ways. The definition of the most commonly used method - the transaction value - will be reformulated. From now on, the last selling price before entering the customs territory of the Union will be the starting point.

Binding Tariff Intelligence (BTI) and Binding Origin Intelligence (BOI).

Companies can already request BTIs and BOIs from customs. Until now, their use has been voluntary, but that is changing. Anyone request a BTI or BOI must state the corresponding number in the declaration, and follow the content of the information. This also applies to existing BTIs and BOIs. Those who possess such an information but do not use it must apply to have it revoked. As of May 1, 2016, the validity period of new BTIs and BOIs drops from six to three years.

Incomplete declaration

Many companies operate an incomplete declaration, with, for example, a document of origin following later. The UCC stipulates that regular use of this simplification requires a permit. Exactly what "regularly" means remains unclear - possibly fifty times a month. The deadline to submit additional data is shortened from 30 to 10 days.

Entry in the records (monthly declaration)

Declaration by entry in the records - the current monthly declaration or direct debit procedure - will be subject to stricter requirements. The exact details are still being discussed, but it appears that the number of mandatory reports will increase.

Special arrangements: customs warehousing and inward processing

The current classification into warehouse types A through F will disappear. Instead there will be three public and one private type. The private warehouse will be a combination of the current types C and E. It is not yet clear how Dutch warehousekeepers will switch from type C or E to the new system. The arrangements for AV suspension, AV repayment and processing under customs control will continue together as one arrangement for inward processing (AV), similar to the current AV suspension. Current authorizations will in principle remain valid until the expiration date, under the existing conditions.

For more information, please contact your contact person within Neele-Vat Logistics.

source: www.evo.nl