23 April 2013

Did You Know? Issue 156

Did You Know? Issue 156
1. Amending Export Entries: 2. EU-Morocco Deep and Comprehensive Free Trade Area (DCFTA): 3. Change to Customs Warehousing Temporary Removal Procedure: 4. ECO amendment of Schedule 2 of Export Control Order: 5. USA Guidelines for Preparing ITAR Agreements: 6. Increased duty on some USA imports into the EU: 7. EU MCC/UCC update:  8. Japan Bulk Export License for AEO Companies: 9. New Customs Notices:
1. Amending Export Entries: Just in case you missed it, Form C81 – “Notice of Amendment to an Export/Re-export Declaration” was amended in November 2012 (CLICK HERE for new form).  The C81 is to be used for amending export entries for statistical purposes only and is no longer relevant to the amendment to CPCs (except in a statistical sense).  In other word, if you are amending an export from standard export 10-00-001 to Inward Processing (31-51-000) an amended C81 does not automatically fulfil your legal obligations but you must also annotate your commercial records and report such non-compliances to HMRC during an audit. Acceptance of commercial evidence of export for incorrect CPC use at export is discretionary based on a number of factors, including how you originally instructed the freight company to complete the export entry.
2. EU-Morocco Deep and Comprehensive Free Trade Area (DCFTA): April 2013 EU and Morocco started the first round of negotiations for an EU-Morocco Deep and Comprehensive Free Trade Area (DCFTA).  The objective is to upgrade the existing association agreement which since 2000 has already guaranteed tariff-free trade for many products. Meeting in Rabat, negotiators will be starting talks on an agreement that is expected to deepen existing trade relations in a host of areas not yet covered, such as services and public procurement, as well as to bring better protection for investments and new commitments on competition and intellectual property rights.  Morocco is the first of the four countries (Egypt, Jordan, Morocco and Tunisia) to come to the negotiating table to move the DCFTA forward.
Further updates expected July 2013.  Read More
3. Change to Customs Warehousing Temporary Removal Procedure: All warehousekeepers must be aware that a change to previously accepted procedures means that if you temporarily remove goods from the customs warehousing you must use Temporary Admission instead of the customs warehousing temporary removal arrangements.  For goods subject to certain activities and subject to existing conditions of your customs authorisation alternative security arrangements for Temporary Admission goods (listed at Annex IX of Council Directive 2006/112/EC) may be required. This change also applies to anyone who is involved in the importation of Works of Art, collector items and antiquesEffective 30 June 2013.Click here for additional information
4. ECO amendment of Schedule 2 of Export Control Order:
Everyone involved in the export of military goods, software and technology will need to ensure that they take account of the revised control entries which came in from 20th March 2013 when making export licence applications. The change to Schedule 2 of the Export Control Order, covering the UK Military List, reflects update to the Common Military List of the EU but also consolidates previous amendments.  The Control entries affected are:
ML6.b.1,2.& Note 3
ML8.a.33.& 34
ML8c.5. Note 2 & 3
ML10 & Note
ML10a.& b.
ML10.d.& e.
ML10.f. & Technical Note
ML13a. N.B.
ML13.d.,1.& 2.

5. USA Guidelines for Preparing ITAR Agreements:Guidelines for preparing ITAR agreements such as TAA, MLA and WDA have been prepared by the U.S. State Department Bureau of Political Military Affairs, Directorate of Defense Trade Controls, Office of Defense Trade Controls Licensing (DTCL). They are intended to serve as an aid in applying the International Traffic in Arms Regulations (ITAR); to provide clarity to Defense Trade Policy as it pertains to Agreements; and to establish a standard basis for submissions of agreements and related correspondence. Click here for full document (209 pages)
6. Increased duty on some USA imports into the EU: EU importers of certain products will be required to pay an additional 26% customs duty into the EU from the US from 1 May 2013.  This measure goes back to 2002 when the World Trade Organisation (WTO) ruled that the US practice of distributing funds raised from anti-dumping measures to the US complainants was illegal, and permitted the EU and eight other countries to impose retaliatory measures.  Since 2005, a number of products manufactured in the US have been subject to retaliatory measures in the form of additional customs duties, charged at import. The measures initially were applied to a wide range of products, but currently measures have been dropped on all but 3 commodity codes. These have been subject to an additional 6% customs duty, which will rise to 26% on 1 May 2013. In addition, two further commodity codes have been added; this will affect the following commodity codes:
07104000 - sweetcorn: 6204623110 and 6204623190 – ladies’ trousers: 87051000 – crane lorries: 9003190010 –spectacle frames
7. EU MCC/UCC update:  The new EU Customs Code is still currently due to come into force on in July 2013 but the European Commission are discussing the official handling of this legislation in view of the Union Customs Code being the new preferred legislation to amend and update the Customs Procedures in place in the European Union.  Official decision after the Trilogue in April 2013 won’t be available for about 6 weeks after this but the UCC discussions within the EU Commission/Council/Parliament saw some points emerging:
  • The 24 June 2013 deadline for enactment (when the current Customs Code is superseded by the Modernised Customs Code) is to be moved to the 1 November 2013 (see attached draft regulation)
  • The implementation timetable is still emerging, although the January 2015 potential date is looking very tight - talk of slippage to 2016 exists
  • In addition to Customs Warehousing/IP etc Guarantee Waivers being introduced for AEOs, discussions are now emerging about similar waivers for Deferment Account Guarantees - these are at a very early stage and may not result in change, but it appears Germany are supportive.
  • Although it was thought "First Sale" valuation was retained, this may now be back on the table for discussion.. 
The final Regulation has to be published at the very start of June, at the latest, to replace the Modernised Customs Code and it has to be formally ratified by Council and EP first.  A study of the Council Compromise text reported the following:


  • Centralised Clearance – is retained.  Confirmation that goods have been presented on arrival will be required.  Even if CC covers UK national procedures, the need for an authorisation would be removed courtesy an addition to paragraph 1.  All supporting rules will be laid down by implementing act under the examination procedure - so a vote for MS.  Authorisations - AEO(c) only.
  • Self Assessment – no detail, all for a delegated act and an implementing act.  Authorisations - AEO(c) only.
  • Simplifications – key simplifications such as the ability for airlines to move goods in their own records is maintained.  AEO(c)’s holding goods in “temporary storage” will be able to move goods around the EU just recording the movement in their own records.  Movements between different traders (but within one member state) will also be allowed; as will “other movements” to be covered in a delegated act
  • Guarantees – Tried and lost the argument for a guarantee waiver for deferment charges - Commission were willing to consider if all MS agreed, not all did.  The principle remains that guarantees will be required for any customs charges not already paid, but this guarantee can be reduced or waived completely if the trader meets certain criteria (based on AEO).  Control by audit rather than transaction monitoring will be agreed - certainly for temporary storage, and reason to hope the Commission will accept that approach more generally.
  • Valuation - Commission finally bowed to pressure from both EP and Council and we can be confident that an implementing provision allowing for successive sales will be included in the final text.  Further work will be needed to secure acceptable text in that implementing act.
  • Temporary Storage - is bound to be a status (as now) rather than a procedure.  Commission’s aim is to have “no change”, this inevitably will be “minimum change” as at least data sets will be harmonised.  Council proposes TS be time limited to 90 days, without possibility of extension, instead of the current 21/45 days.
8. Japan Bulk Export License for AEO Companies: The Ministry of Economy Trade and Industry (“METI”) issued a notification on 1 April 2013 to update the application procedures for bulk export license for dual-use goods. The notification includes the following updates which are effective immediately:
  1. Previously, it was mandatory that a full-time employee attended the METI official export control seminar, for new bulk license applications, and extension of bulk license validity. With this notification, this requirement is now removed and replaced by the following requirement:  "Exporter should get latest export control regulatory update under Foreign Exchange and Foreign Trade Law and make it known to relevant employees who work in export operation".  This notification by METI places the onus of responsibility on exporters to have a fully compliant Internal Control Program (“ICP”).
  2.  AEO able to apply for bulk license without METI on-site audit.  Previously, in order to apply for bulk export licenses in Japan (excluding White country bulk license whereby on-site audit by METI is not required), an on-site audit by METI was a mandatory requirement for new applicants. With this notification, METI will eliminate on-site audit requirements exclusively for Approved Exporters (“AEO”). In other words, existing AEO will be able to apply for bulk license without having to go through METI on-site audit. As of February 2013, there are only 245 AEO companies in Japan. The AEO system is governed by Customs under the Ministry of Finance, while export controls is under METI. Historically, there has been little interaction between Customs and METI regarding regulatory developments on export controls. This announcement is an effort to streamline the activities between the Ministries.
9. New Customs Notices:
Notice 41 Alcoholic Ingredients Relief
Notice 144 Trade imports by post: how to complete Customs documents
Notice 162 Cider production
Notice 163 Wine production
Notice 179 Motor and heating fuels
Notices 700/1 and 700/11- Revised Supplement to VAT Notice 700
Notice 800 CAP Exports
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