AEO & the Union Customs Code BIFA 30 Sept 2 Oct 2014 A - - PowerPoint PPT Presentation

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AEO & the Union Customs Code BIFA 30 Sept 2 Oct 2014 A - - PowerPoint PPT Presentation

Nov 14, 2022 384 likes •636 views

AEO & the Union Customs Code BIFA 30 Sept 2 Oct 2014 A presentation by the International Trade Development Liaison Officer network Agenda AEO features Union Customs Code background UCC headlines AEO and the UCC

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AEO & the Union Customs Code

BIFA 30 Sept – 2 Oct 2014 A presentation by the International Trade Development Liaison Officer network

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Protective marking – Unclassified AEO awareness presentation | 06/10/2014 | 2

Agenda

  • AEO features
  • Union Customs Code background
  • UCC headlines
  • AEO and the UCC
  • AEO update
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What is AEO?

Internationally recognised quality mark which indicates that a business operates within a secure supply chain and their internal controls and procedures are efficient and compliant Qualifying criteria

  • Record of compliance
  • Satisfactory system of managing commercial and transport records
  • Proven solvency
  • Security & Safety standards
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Types of AEO

AEO(C) Customs Simplifications AEO(S) Security and Safety AEO(F) Both

Criteria: compliance; record-keeping; solvency Criteria: compliance; record-keeping; solvency; security & safety standards Combined criteria

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Trade benefits of an AEO certificate

Benefits AEOC AEOS AEOF

a) Fewer physical and document-based controls

  

b) Priority treatment of consignments if selected for control

  

c) Choice of the place of controls

  

d) Easier admittance to customs simplifications

 

e) Reduced data set for summary declarations

 

f) Prior notification

 

g) Mutual recognition

 

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Other indirect benefits

  • Improved corporate governance – development of audit culture
  • Opportunities to improve and rationalise logistical systems and identify

efficiency savings from review of procedures

  • Better employee commitment and customer loyalty
  • Reduced risk of theft by securing supply chain
  • Recognised as a secure and safe business partner
  • Improved management of business partners
  • A more cohesive relationship forged with Customs
  • Future benefits under the Union Customs Code
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Union Customs Code background

European Union’s basic customs law

  • Framework regulation for customs rules and procedures
  • A recast of the Modernised Customs Code (MCC)
  • Adopted on 10 October 2013 in Council Regulation (EU) 952/2013
  • Implementation due 1st May 2016 once the Delegated and Implementing

Acts are agreed

  • There will be a transitional period up to the end of 2020 for some aspects

which require changes to IT systems e.g. centralised clearance and self assessment

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Delegated and Implementing Acts (DA & IA)

Implementation

  • DA & IA required to make the UCC work
  • First drafts published in January 2014:
  • Preliminary draft DA….

TAXUD/UCC-DA/2014/-1

  • Preliminary draft IA….

TAXUD/UCC-IA/2014/-1

  • Ongoing negotiations between Member States & European Commission
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Aims of the UCC

Modernisation

  • Facilitation of legitimate trade
  • Reinforced need to ensure security & safety
  • Paperless environment for customs & trade
  • Harmonised & standardised application of customs controls
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Headlines…

Authorised Economic Operator (AEO) Guarantees for duty Temporary Storage Transit Single Transport Contract Valuation Trader’s right to be heard and Streamlined Customs Procedures Centralised Clearance Self Assessment

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Authorised Economic Operator (AEO) in the UCC

Compliant & trustworthy economic operators who are entitled to receive favourable treatment

  • Two types outlined in UCC, Art. 38:
  • AEO(F) referred to in D/As and I/As
  • AEO standards linked throughout the UCC
  • New criteria for practical standards of competence or professional

qualifications

  • Provides many benefits including financial
  • Scope expands to include taxation rules

Customs simplifications Security & Safety

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AEO interaction across UCC

Union Customs Code AEO(c) Mandatory Certain AEO(c) criteria must be met

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AEO interaction across UCC

Union Customs Code

  • Duty deferment guarantee

reduction

  • Movements within a TS

authorisation between different MS

  • Centralised Clearance
  • Self Assessment
  • EIDR – presentation waiver

AEO(c) Mandatory

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AEO interaction across UCC

Union Customs Code

  • Comprehensive guarantee
  • Guarantee waivers
  • Simplified Customs Declarations
  • Entry in declarant’s records
  • Regular shipping services
  • Temporary storage*
  • Authorised weigher
  • Transit simplifications
  • Customs Rep in OMS
  • Special procedures

Certain AEO(c) criteria must be met

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Streamlining customs procedures

Customs procedures reduced

  • Release for Free Circulation
  • Export
  • Special Procedures
  • Transit

– External and Internal Transit

  • Storage

– Customs Warehousing and Free Zones

  • Specific Use

– Temporary Admission and End-Use

  • Processing

– Inward and Outward Processing

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Guarantees

  • Required for authorisations to operate certain procedures
  • To cover actual & potential customs debts
  • Reduced Guarantees and Guarantee Waivers available

Reduction or Waiver where AEO(C) status is held or criteria met

  • Art. 95.2 UCC

Reduced guarantee (30%) for duty deferment available to AEO(C) holders

  • Art. 95.3 UCC
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Guarantees for potential debts

Operators using customs duty suspension procedures will require a guarantee as security for the potential debt Guarantee waivers will only be available to those who meet AEO(C) criteria or hold AEO(C) or AEO(F) status

Guarantees for actual debts

e.g. Deferment guarantees may be reduced for holders of AEO(C) status

Guarantees: potential and actual debts

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Temporary storage

  • Time limits to keep goods under temporary storage increased to 90 days
  • A guarantee will be required unless the conditions for a reduction or waiver

are met

  • For AEO(C) holders some conditions for authorisation can be considered as

met

  • Movements under temporary storage used to replace national transit
  • Movements between different authorisation holders require both to have

AEO(C) status

  • Transfer of responsibilities when the goods are entered in the records of the

recipient

  • TS facility cannot be operated by a third party
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Timing Proposal & Processes

  • UCC Regulations entered in to legal force on 30 October 2013
  • Legally applicable from 1 May 2016
  • Changes will be phased in from 1 May 2016 to December 2020
  • Negotiations commenced from 10 February 2014
  • Aim is to finalise the legal text by early summer 2015
  • Introduce new authorisation procedures before 1 May 2016
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AEO update

UK –

576 applications received Certificates issued = 354

  • AEO(F) = 289
  • AEO(C) = 54
  • AEO(S) = 11

EU – (includes UK figs)

16,798 Applications received Certificates issued = 13,385

  • Germany 6237
  • Netherlands 1409
  • France 1072
  • Italy 854
  • Poland 712
  • Spain 569
  • Sweden 323

*Figures correct at August 2014 - AEO database available on Europa website at www.ec.europa.eu/taxation_customs/dds/cgi-bin/aeoaeoquery?Lang=EN

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Further information- UCC

  • HMRC’s UCC homepage: www.hmrc.gov.uk
  • Customs Information Papers (13) 62 and (14) 03
  • Frequently Asked Questions
  • Email: international.documents@hmrc.gsi.gov.uk
  • EU site: http://ec.europa.eu/taxation_customs/customs/customs_code
  • www.gov.uk
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Further information- AEO

  • HMRC’s AEO homepage (www.hmrc.gov.uk)
  • AEO Public Notice 117
  • AEO Central Site, tel: 03000 564 556
  • EC AEO Guidelines TAXUD/B2/047/2011
  • EU website: http://ec.europa.eu/taxation_customs
  • www.gov.uk
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Any Questions?

AEO is all about International Supply Chain Security and facilitation of legitimate trade

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Thank you

HM Revenue & Customs Warwick House 67, Station Road Redhill, Surrey RH1 1QU (T) 03000 536 930 (E) paul.carter3@hmrc.gsi.gov.uk