1 July 2014

Did You Know? Issue 187

1st July 2014

1. EU signs new agreements with Georgia, Moldova and Ukraine: 2. New CPC for export under ATA Carnet: 3. EU-USA Trade Talks: 4. UK OGEL Amendments – more Form 680s?: 5. HMRC stamping EUR1/ ATR and T2L forms: 6. USA Burmese Sanctions: 7. Philippines Advanced Clearance System (ACS): 8. Australian Regulatory Compliance Mark (RCM): 9. EU Commission Publishes General Overview of Active WTO Dispute Settlement Cases: 10. Yemen becomes 160th WTO Member:
1. EU signs new agreements with Georgia, Moldova and Ukraine: On 27th June 2014 the EU signed the Association Agreements (AA) with Georgia and the Republic of Moldova. It will also complete the signature process of an Association Agreement with Ukraine. All three agreements set up Deep and Comprehensive Free Trade Areas with the EU. The agreements with Georgia, Moldova and Ukraine will deepen the EU's political and economic relations with the three countries, and gradually integrate them into the EU's single market, the world's largest Press release
2. New CPC for export under ATA Carnet: ATA carnets may be used to temporarily import or temporarily export goods from the United Kingdom. The carnet replaces the normal customs declaration.  Where the ATA Carnet is used at an inventory linked port/airport in the UK, a C21 form must also be completed quoting the correct Customs Procedure Code (CPC)
Currently these codes are:
10 00 041 for items being exported
00 08 020 for items being imported
With effect from 1 December 2014 the CPC for exported goods will be 10 00 052. The CPC for imports remains unchanged.
3. EU-USA Trade Talks:  The European Commission will host a sixth round of EU-US trade talks in Brussels from Monday 14th to Friday 18th July 2014. The talks are on a new trade and investment deal, known as the Transatlantic Trade and Investment Partnership, or TTIP.  Alongside the negotiations, the Commission will also host two stakeholder events on Wednesday 16th July 2014 with representatives of non-governmental organisations, consumer associations, trade unions, professional bodies, and industry and business groups:
  • in the morning, participants will present their wishes and concerns to negotiators from both sides;
  •  in the afternoon, the EU and US Chief Negotiators will update participants on progress with the talks, and answer their questions.

More on the EU-US trade talks

4. UK OGEL Amendments – more Form 680s?: Some Open General Export Licences have been amended to reflect the new Government Security Classification System.  Read full list.  One of the significant changes is that a Form 680 is required under the OGEL Military Technology not just for projects classified CONFIDENTIAL under the old system of security classification) pre- April 2014) but for projects RESTRICTED or above.  The MoD have explained that this is to bring the OGEL and the Security Policy Framework in-line with one another.  The requirement for a Form 680 for RESTRICTED or above is not new as to be compliant with the Manual of Protective Security/Security Policy Framework in which even prior to April 2014 stated:
116. Before undertaking any targeted promotion or demonstration, or entering into any contractual commitments involving the sale or release of protectively marked defence equipment, information or technology to a foreign entity a contractor must obtain approval via Form 680.
117. This includes protectively marked equipment developed to meet an MOD UK requirement and Private Venture equipment that bears a protective marking (RESTRICTED or above), as formally advised in a Security Aspects Letter (SAL) issued by the relevant Contracting Authority or Private Venture (PV) security grading issued by MOD Defence Security (Scientific & Technical)/Industry. 
118. It should be noted that a Form 680 is required when a contractor wishes to undertake the targeted promotion or demonstration of protectively marked (RESTRICTED or above) equipment or technologies even at an Unclassified level.”
Military OGELs (in particular Access Overseas & Technology) is also affected in the change and referred to 3. … if the transfer or export is OFFICIAL-SENSITIVE (including UK material classified RESTRICTED, graded prior to 2nd April 2014 and its equivalent international security classified material) then those systems must comply with
a)         for CONFIDENTIAL or above, the requirements identified in the Security Policy Framework, or 
b)         for OFFICIAL-SENSITIVE (including UK material classified RESTRICTED, graded prior to 2nd April 2014 and its equivalent international security classified material) the OFFICIAL-SENSITIVE Security Conditions issued as a condition of contract.
The condition of contract appears to relate to the Security Aspects letter. To quote our MoD source: “the Contracting Authority should have provided a copy of the UK OFFICIAL-SENSITIVE security conditions to ensure that the non-List X Contractor is aware what they need to do to protect this security sensitive material – and it is to this that this new OGEL wording is attempting to direct the exporter.”
Further information can be obtained on request
5. HMRC stamping EUR1/ ATR and T2L forms: With effect from the 1st July 2014, the following information is required by the National Clearance Hub (NCH) when submitting EUR1/T2L/ATR documents for endorsement.
  • The correct commodity code for the goods must be declared on the paperwork/certificate 
  • A draft Bill of Lading/Air waybill must not be used as proof of shipment if the goods are retrospective /retroactive 
  • A copy invoice/packing list must be provided for each certificate
  • A letter of explanation must be enclosed for any retroactive/retrospective authentication request for either a T2L or ATR along with proof of shipment 
  • A stamped addressed envelope must be provided for the certificate to be sent back to you. 
  • For EUR1s covering Mexico or Chile, the 4 digit commodity code must also be included in Box 8
Any queries (not relating to certificates sent to the NCH), please either refer to the relevant Notice, the HMRC websitewww.hmrc.gov.uk or contact the VAT, Excise and Customs Helpline on 0300 200 3700.
6. USA Burmese Sanctions: The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is amending and reissuing in their entirety the Burmese Sanctions Regulations to implement Executive Order 13448 of October 18, 2007, "Blocking Property and Prohibiting Certain Transactions Related to Burma," Executive Order 13464 of April 30, 2008, "Blocking Property and Prohibiting Certain Transactions Related to Burma," Executive Order 13619 of July 11, 2012, "Blocking Property of Persons Threatening the Peace, Security, or Stability of Burma," and Executive Order 13651 of August 6, 2013, "Prohibiting Certain Imports of Burmese Jadeite and Rubies.'' Click here for general information on the U.S. Government's Burmese Sanctions Regulations
7. Philippines Advanced Clearance System (ACS) and Load Port Survey (LPS): A Customs Administrative Order (CAO) is due to be signed on the 17th July 2014 to bring into force additional pre-clearance checks in the Philippines from August 2014 on bulk and break bulk cargo.  It will be mandatory for these shipments to undergo an inspection for Quality, Quantity and Dutiable Value at the port of origin by an surveying company approved by The Philippines Government.  Bulk and break-bulk cargoes may include but are not limited to the following:
a.         Liquids
b.         Chemicals
c.         Petroleum Products
d.         All other cargo shipped in bulk and break-bulk (e.g. wood, iron, steel, coal, grains, motor vehicles, etc.)
Read attached pdf for more information.
8. Australian Regulatory Compliance Mark (RCM): In accordance with Australian legislation, particular electronic goods (devices for radio and telecommunications, electromagnetic compatibility (EMC) and electromagnetic emission (EME)) require labels attesting to their conformity with mandatory standards. These are the so-called C-tick label, the A-tick label and the Regulatory Compliance Mark (RCM), which constitutes a combination and alternative to the aforementioned two labels. As of 1 March 2013, the C-tick label as well as the A-tick label have been being phased out, i.e. they may not be used by first-time suppliers. The subsequent use of the RCM will be mandatory for all suppliers after a transitional period as of 1 March 2016. Australian manufacturers or importers intending to use the mark on their products must be registered for this purpose with the responsible authority, i.e. the Australian Communications and Media Authority (ACMA)
9. EU Commission Publishes General Overview of Active WTO Dispute Settlement Cases: The European Union Commission has posted on its website a General Overview of the Active World Trade Organization Dispute Settlement casesin which the European Union is a party.
10. Yemen becomes 160th WTO Member: At the WTO Trade Negotiations Committee meeting on 25th June 2014, Director-General Roberto Azevêdo noted concerns among the Membership over suggestions from some delegations that implementation of the Trade Facilitation agreement be delayed. Yemen became the 160th WTO member on 26th June 2014.
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