23 April 2014

Did You Know? Issue 181

1. Transfer Prices for Customs Valuations: 2. UK CHIEF Replacement: 3. Extending NCTS to Macedonia: 4. Trade with Latin America: 5. EU – Vietnam FTA progresses: 6 Byrd Arrangement – EU Additional duties: 7. EU adopts temporary tariff cuts for Ukrainian exports to the EU: 8. National Clearance Hub Telephone Numbers: 9. C18 Post Clearance Demand Notes
1. Transfer Prices for Customs Valuations: If a selling price between related parties (defined in Article 15 of the WTO Customs Valuation Agreement) is affected by that relationship then an acceptable price for Customs Valuation purposes has to be assessed and approved by the Customs Authorities in the importing country.
This is often called Transfer Pricing – but it should not be confused with the Transfer Pricing Agreements set up for Tax Administration. 
This means that if a Multinational Enterprise is trading with related parties there must be two Transfer Price agreements – one for Customs Valuation (governed by WTO/ administered by WCO) and one for Taxation Issues (administered by the OECD and UN).  See attached Guide on Transfer Pricing issued by Deloittes (also freely available on their website). 
2. UK CHIEF Replacement: The Customs Handling of Import and Export Freight (CHIEF) pages on the GOV.UK website have been updated to provide more information about HMRC plans to replace the CHIEF service.
3. Extending NCTS to Macedonia: The New Computerised Transit System (NCTS) is the common transit procedure which is used for the movement of goods between the 28 EU Member States, the EFTA countries (Iceland, Norway, Liechtenstein and Switzerland) and Turkey. The procedure is based on the Convention of 20 May 1987 on a common transit procedure. The NCTS is intended to be subsequently implemented in those neighbouring countries to the European Union (EU) which are potential accession countries. Due to its candidate member status, the NCTS is officially in use for shipments made within Macedonia since 1 March 2014. It enables the electronic submission of transit declarations and exchange of other data between economic operators and the local customs administration. Starting 1 June 2014, Carnets TIR for cross-border transit goods in foreign trade transactions with Macedonia are expected to be processed using the NCTS. The full implementation of the System with Macedonia is scheduled for 6 January 2015
4. Trade with Latin America: Trade with Latin America is growing – thanks to our Associate based in Uruguay we have three interesting documents for you to look at:
a)         Infrastructure in Latin America – why should you be looking at it
b)         Opportunities in road safety – “If you live in Latin America, by 2020 you will be three times more likely to die on the roads than in a high-income country, according to the World Health Organisation (WHO).” 
c)         Trade Shows in Latin America – if you are interested in being represented there by our Associate email back 

5. EU – Vietnam FTA progresses: At an April 16 reception in London for visiting Deputy Prime Minister Vu Van Ninh, Shapps expressed hope the two countries will strengthen cooperation in education and training, particularly human resource training; he also met Fiona Woolf, Lord Mayor of the City of London, on April 15 as part of his visit to the UK.. UK Minister without Portfolio and Co-Chairman of the Conservative Party Grant Shapps has voiced his support for ongoing negotiations of a free trade agreement (FTA) between Vietnam and the European Union to be signed (it is expected) in October 2014.
6. Byrd Arrangement – EU Additional duties: Since May 2005 additional custom duties have been applied on the import of certain goods from the United States in defence of the Byrd Arrangement which set in place illegal subsidies to USA businesses from the collection of ADD at import. For 8 years the EU has been charging additional customs duties on a small range of USA products entering the EU.  From 1st May 2014 all the products listed below will now be subject to an additional customs duty of 0.35% effective from 1 May 2014. This is a significant reduction on the current rate which is 26%. The goods which still attract the additional customs duty are listed below.
07104000        Sweet corn, uncooked or cooked by steaming, boiling in water, frozen
6204623110    Of denim, hand-printed by the ‘batik’ method
6204623190    Of denim, other
87051000        Crane lorries (exc breakdown lorries)
9003190010    Frames and mountings for spectacles, goggles or the like, of base metals
7. EU adopts temporary tariff cuts for Ukrainian exports to the EU: On 14 April the EU decided to adopt measures to cut tariffs on Ukrainian exports to the EU. As EU Trade Commissioner Karel De Gucht stated, these are autonomous trade measures providing tariff preferences for Ukraine and constitute an important part of the EU's package to help the country during this difficult period. The measures will enter into force in two weeks' time, following publication in the EU Official Journal. They will apply until 1 November 2014 at the latest. We hope that in the meantime the Deep and Comprehensive Free Trade Area (DCFTA) part of the agreement will be signed and in force. Statement by Commissioner De Gucht
8. National Clearance Hub Telephone Numbers: With the UK NCH move to Railli Quays Salford new telephone numbers now also apply.  Some of the main contact details are:
Import/Export Out of hours                 03000 588401  -  18.00hrs to  08.00hrs
Route 1 Import helpline                       03000 588454  -   08.00hrs to 18.00hrs
Route 1 Export Helpline                      03000 588401 -   08.00hrs to 18.00hrs
Live Animals:                                       03000 588452  -   08.00hrs to 18.00hrs
CIE/ Post Clearance Accounts (PCA)  Tel 03000 588453                                 
ATA Carnets   Tel 03000 579060           
Accounts         Tel 03000 588450           
Route 1 and 2 transmission of declarations Fax No: 0800 496 0699 (no change)
Email: NCH@hmrc.gsi.gov.uk and NCHLAP@hmrc.gsi.gov.uk  for submission of route 1, route 2 declarations electronically 
Technical Team     Tel         03000 578946   Email    nchtechnical@hmrc.gsi.gov.uk
Contact Address is:
HM Revenue & Customs
National Clearance Hub
Ralli Quays, 3 Stanley Street
9. C18 Post Clearance Demand Notes:  With effect from Monday 7 April 2014 the processing of C18 Post Clearance Demand notes is being transferred from the C18 Team in Grimsby to Salford.  The new address for sending details of voluntary declared underpayments on cleared import entries is:
C18 Team,
National Clearance Hub
Ralli Quays
3 Stanley St, Salford M60 9HL
Tel     03000 587533 
Fax    03000 591436
Email npcc@hmrc.gsi.gov.uk
All payments in respect of C18s will continue to be processed by the Chief Accounts team at the following address:
Chief Accounting
National Clearance Hub
Ralli Quays
3 Stanley St, Salford M60 9HL
Tel      03000 588450
Fax     03000 588460
Email chiefaccounting@hmrc.gsi.gov.uk

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