21 May 2014

Did You Know? Issue 183

21st May 2014

1. DYK Reminder: 2. EU-China sign Mutual Recognition Agreement: 3. UK Customs to Validated use of Certain CPCs: 4. EU Sanctions – Crimean Companies: 5. ATA Carnets for Bahrain: 6. New Export Control Amendment: 7. Inward Processing – change to export CPC: 8. Ensuring transparency in EU-US trade talks: 9. US ITAR Reform - Satellites and Related Items:10. New UK Intellectual Property Act: 11. Tariff Updates

1. DYK Reminder: Just a reminder that you are receiving this update email (Did You Know- DYK) from Strong & Herd LLP because your company is a member of our business support helpline (OneCall), so if you have any questions relating to imports, exports, customs procedures, export licensing or international trade in general please remember to get in touch.  The email address is onecall@strongandherd.co.uk.  Previous issues of DYK can be found on our websitewww.strongandherd.co.uk in the Members’ Area.
2. EU-China sign Mutual Recognition Agreement: 16thMay 2014 EU –China completed the MRA which means that Customs Authorities will recognise each other's certified safe traders – in other words AEO approved businesses – which will mean that these companies can benefit from faster controls and reduced administration for customs clearance.  If you trade with China this could be time to look at becoming an AEO approved business. Two other important initiatives were also signed. The first is a new Strategic Framework for Customs Cooperation, which defines ambitious priorities and objectives for EU-China collaboration in this field. Key areas of focus for the coming years will be trade facilitation, supply chain security and fighting counterfeit and illicit trade.  And a new EU-China Action Plan on Intellectual Property Rights (IPR) that aims to improve the clamp-down on counterfeit goods by intensifying EU-China cooperation, communication and coordination in this field.  Read More
3. UK Customs to Validated use of Certain CPCs: UK Customs has announced that from 1st June 2014 they will be undertaking validation checks against export entries declared under certain CPCs – in particular IP, OP, End-Use and Customs Warehousing. According to their announcement, “We have been made aware that CHIEF has not been validating the completion of AI and GEN statements in certain CPCs. The Tariff notes to the affected CPCs were updated in 2009 to reflect certain AI and GEN statements that had to be completed in accordance with SAD H. Following one amendment to CPC 31 51 000 it is apparent that there is widespread non completion of these required statements.”
4. EU Sanctions – Crimean Companies: On 12 May 2014, the EU Council broadened the scope of EU sanctions in response to the situation in Ukraine. The legal basis for EU sanctions was broadened notably to cover obstruction of the work of international organisations and involvement in the transfer of ownership of entities in Crimea or Sevastopol. In addition, 13 persons and – for the first time – two Crimea-linked companies were added to the list of sanctioned parties. These changes entered into force on 12 May 2014. The EU Council has reiterated that work on possible targeted EU measures continues, to enable further steps depending on future events. These changes are made in Regulation 476/2014, which was published and entered into force on 12 May 2014. 
5. ATA Carnets for Bahrain: Bahrain, which will start to accept and issue carnets from 1st June 2014. Celebrating its 50th anniversary in 2013 the ATA system is jointly managed by the World Customs Organization, holder of the international conventions on the temporary admission of goods, and the ICC World Chambers Federation, which administers the international guarantee chain. Over the last 50 years, the system has spread from a handful of Western European countries to cover 74 countries on all continents. Today, more than 175,000 ATA Carnets are issued yearly for thousands of customs transactions worth over US$25 billion. Goods covered include professional equipment, commercial samples and material for trade fairs and exhibitions. Some examples of note include: a prototype solar car, World Cup yachts, Giorgio Armani apparel, McLaren Grand Prix cars, Munich Symphony Orchestra instruments, Australian Olympic horses, Harley Davidson motorcycles and equipment for the Bolshoi Ballet, Cirque du Soleil, BBC and CNN.
6. New Export Control Amendment: The Export Control (Amendment) (No.2) Order 2014 (S.I. 2014 No.1069) came into force on 17 May 2014.  The amending Order makes a number of changes to Schedule 2 to the main order, which lists military goods, software and technology subject to export controls. These changes reflect an update to the EU Common Military List that in turn has been amended following agreement in the export control regime known as the Wassenaar Arrangement (WA)
The changes in Schedule 2 can be found in the following entries:

  • ML1 - clearer technical terminology. Decontrols for weapons and reproductions of a certain age. Notes closer to the text to which they relate.
  • ML2 - decontrols for weapons and reproductions of a certain age. Decontrols introduced for weapons having a specific application. Notes closer to the text to which they relate.
  • ML6 - clearer text for civilian armoured vehicles and a Gross Vehicle Weight Rating included to provide a clear cut-off for vehicles specified in this entry.
  • ML10 - clearer, simpler text.
  • ML11 - control of military satellites and space probes clarified.
  • ML22 - an ‘NB’ has been added highlighting that minimum technology may be authorised by a UK licence to export military goods.

UK National change: PL8001 in Schedule 3 has been amended to exclude firing sets for fireworks from the scope of the control. (This is unrelated to the changes above.)
7. Inward Processing – change to export CPC: From the 1st July 2014 the Customs Procedure Codes relating to goods being entered to the export procedure using IP prior export equivalence (PEE) will change.  Basically they will drop the “51” used as the middle pair to indicate a former procedure to Inward Processing (IP) was used as the Prior Export is the start of the process.  Therefore the codes will change from: 11-51-000; 11-51-001; 11-51-001; 11-51-002; 11-51-003 to read 11-00-000; 11-00-001, etc.
8. Ensuring transparency in EU-US trade talks: Five new papers issued on 14th May 2014 include proposals for enhancing the compatibility of each other's existing rules and regulations, or working more closely together in setting them in future,
in five sectors:

  1. EU position on chemicals 
  2. EU position on cosmetics
  3. EU position on motor vehicles
  4. EU position on pharmaceutical products
  5. EU position on textiles and clothing

In each sector, the papers focus on ways to:

  • end the unnecessary duplication of product testing or plant inspections
  • recognise each other's existing regulations, or bring them more closely together
  • align EU-US respective procedures for approving or registering new products. Read More.

9. US ITAR Reform - Satellites and Related Items: US Department of State has published, as part of the President’s Export Control Reform (ECR) Initiative, changes to the nature of US export controls on satellites and related parts and components. These changes to Category XV (Spacecraft and Satellites) of the US Munitions List (USML) allow most commercial, scientific, and civil satellites and their parts and components to move to the Department of Commerce’s Commerce Control List (CCL). This revision removes from the USML:
a) Communication satellites that do not contain classified components;
b) Remote sensing satellites with certain performance parameters;
c) Any spacecraft parts, components, accessories, attachments, equipment, or systems that are not specifically identified in the revised category; and
d) Most radiation-hardened microelectronic microcircuits.
Furthermore, the rule allows satellites controlled by the CCL that incorporate certain parts and components controlled by the USML to remain CCL-controlled, if certain conditions are met. It also removes from the USML certain spacecraft, while supporting the U.S. National Space Policy by creating conditions that allow the U.S. Government to more easily host payloads on commercial satellites.
The changes to the controls on radiation-hardened microelectronic microcircuits take effect 45 days after publication of the rule, while the remainder of the changes takes effect 180 days after publication.   Information on the Export Control Reform Initiative can be found athttp://export.gov/ecr or learn more at ITAR Update London 20th June 2014
10. New UK Intellectual Property Act: UK businesses will be able to better protect their intellectual property rights in the UK and abroad, with the new Intellectual Property Act receiving Royal Assent (14 May 2014). A key part of the Intellectual Property Act is the creation of new powers for the UK to implement the Unified Patent Court Agreement. This is a central part of introducing a single patent across almost all EU countries which could lead to savings of up to £40 million per year for UK businesses.  The Intellectual Property Act also provides new protections for designers, as well as removing red tape and some of the uncertainties for businesses when protecting their designs. It will also introduce a number of online services to help businesses better manage their intellectual property.  Read More
11. Tariff Updates: Various Tariff Notices on Common Customs Tariff, Combined Nomenclature, Tariff classification:
Tariff Notice 30/14 - Cabinets and cases
Tariff Notice 31/14 - Digital Photo Frame
Tariff Notice 32/14 - Digital Picture Frame
Tariff Notice 33/14 - Portable DVD player
Tariff Notice 34/14 - Video Glasses
Tariff Notice 35/14 - Multi media centre for motor vehicles

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