What's New
Keep up to date by accessing Strong & Herd's "What's New" page - a free service. As well as bullet point details on current and proposed changes that affect importers and exporters, there will be reminders on on-going issues and training options plus a monthly article "Alex's Diary: Trial and Tribulations of a Shipping Manager" for your amusement and interest. (First published "International Trade Today" magazine.) If you have any news you think should be on this page please contact us.
- Revising Incoterms
- IPR - Incorrect CPC Court Case - update
- New HMRC Penalties for VAT and Excise
- New Preferential Trade Agreement: EU-Serbia
- Customs guarantees to be introduced
- EC Sales List - ESL
- Improvement of the EU VAT Refund System
- IPR Tribunal Decision
- CHANGE OF ADDRESS
- Switzerland agrees waiver for customs security checks
- Venezuela removed from GSP+
- Warning: 2010 change to commodity codes relating to wine
- Electronic Version of EUR1 is NOT recommended for LEBANON
- EU gets tough on Toy Safety:
- TURN and VAT numbers - EORI
- Customs Procedure Updates Session
- Update: New security procedure USA - 10+2 Rule
- Update on AEO applications
- Pre-Arrival, Pre-Departure Messaging (PAPD)
- Export Control Legislation
- Modernised Customs Code
Revising Incoterms
Date added: 05/02/2010As you will be aware the ICC is currently in the process of revising "Incoterms 2000". Under the current schedule, the Incoterms Drafting Group have been meeting since end of 2009 to discuss the proposed changes to Incoterms and it is expected that the new Incoterms set will be circulated in the middle of 2010. The new set of terms are expected to come into force on 1/1/2011 as Incoterms 2011.
^ TopIPR - Incorrect CPC Court Case - update
Date added: 05/02/2010A judgement has been made by the European Court of Justice (ECJ) on the cases relating to incorrect export Customs Procedure Codes (10-00 not 31-51) used on Inward Processing Relief (IPR) items exported from the UK. As you may remember the amount of duty claimed by HMRC ran into millions of pounds. The legality of this was challenged by 3 main companies, though may others reserved the right to claim duty back once the courts had ruled. Though the ECJ upheld the fact that an incorrect export declaration was a serious offence but exporters should have been given the option to amend the declarations if they had adequate supporting evidence of export and there was no negligence involved. UK HMRC are now reviewing all cases were a protective claim letter was submitted by the company charged with customs duty and any company who had similar claims issued by HMRC after the 15th January 2007 can ask for their case to be reviewed as well. Could mean a bit of money going back from Customs to the trade.
^ TopNew HMRC Penalties for VAT and Excise
Date added: 05/02/2010HMRC are introducing new penalties to help prevent abuse in the VAT and Excise tax systems. From 1 April 2010 HMRC will apply new wrongdoing penalties where a person:
- issues an invoice that includes VAT which the person is not entitled to charge
- handles goods on which Excise Duty has not been paid or deferred
- uses a product in a way that means more Excise Duty should have been paid
- supplies a product at a lower rate of Excise Duty knowing that it will be used in a way that means a higher rate of Excise Duty should be paid.
New Preferential Trade Agreement: EU-Serbia
Date added: 05/02/2010From 1st February 2010 the new reciprocal preferential trade agreement between the EU and Serbia comes into force. The agreement is covered by the preferential origin rules as laid down in Sections 2 (including those in paragraph 2.4) to 6, and Section 9.2 of Customs Notice 828. The new interim Agreement also provides for bilateral cumulation of origin. This means that materials, components or parts which have originated in Serbia in accordance with the provisions of the Agreement can be regarded as originating in the Community when they are further processed (provided that the processing is more than minimal) or incorporated in a finished product which will be exported from a Member State to Serbia under preference. Also, European Community (EC) products which have met the appropriate origin rules can be regarded as originating in Serbia when they are further processed (again, provided that the processing is more than minimal), or included in a finished products for export to the Community under preference. Shipments qualifying for preference must either be accompanied by a valid Form EUR1; or a declaration on an invoice (or other commercial document such as a packing list or consignment note) under the low value rule (GBP5700.00 or less) or if you are an approved exporter.
^ TopCustoms guarantees to be introduced
Date added: 05/02/2010HMRC have stated that mandatory Guarantees under the Modernised Customs Code Implementing Provisions are being introduced in 2013 for certain Customs Procedures - Special Procedures (Inward Processing Relief (IPR), Outward Processing Relief (OPR), Customs Warehousing, Temporary Admissions and End Use), Temporary Storage and Transit. The expansion of Guarantee requirements for both debts incurred and debts which maybe incurred poses HMRC with a significant new challenge. The intention is that there will be a guarantee waiver for AEO approved companies. We will update you as this progresses.
^ TopEC Sales List - ESL
Date added: 05/02/2010From 1 January 2010 most businesses have to submit ESL on a monthly, not quarterly basis. Also the time available in which to submit ESL reports has been cut from 42 days to 14 days for paper submissions and 21 days if you do it online. As an anti-graud measure, all companies trading with the EC must submit EC Sales Lists, you can continue to submit quarterly where the value of intra-EC supplies of goods is less than GBP70,000 but in 2012 this limit will drop to GBP35,000
^ TopImprovement of the EU VAT Refund System
Date added: 05/02/2010If a UK business incurs VAT in another member state then, subject to fairly monor restrictions, it is possible to make a claim against the other member state. The hassle involved in making such claims has in the past put most SME's off using the system. From 1 January 2010, each member state ought to have a portal open to accept claims on line (the UK is one of the few countries ready.) For UK claimants, the process now involves electronic application via the HMRC portal and submission of data, including documents, electronically. The claim process includes a host of identification codes unfamiliar to UK businesses. The claim will then be sent on from the UK portal to the portals in other member states and, provided the claim is not selected for further verification, you are guaranteed repayment within four months. . And if they break the guarantee, you will get paid interest by the member state against which the claim is made (the claim is not paid by the UK Government, HMRC merely act as an electronic post box). Fuller details of the process are contained in Public Notice 723A, which is available in the library section of the HMRC website
^ TopIPR Tribunal Decision
Date added: 03/02/2010^ Top
CHANGE OF ADDRESS
Date added: 21/01/2010Please note our change of address from 21/1/2010;
Strong & Herd LLP
Suite 5B,
Manchester International Office Centre,
Styal Road,
Manchester,
M22 5WB
Switzerland agrees waiver for customs security checks
Date added: 15/07/2009The EU and the Swiss Confederation have agreed to waive the checks and formalities in goods transport and on customs security measures. The agreement is designed to prevent new barriers to trade with the EU and replaces and supplements the existing agreement on goods controls of 1990. This is necessary because of the new security measures introduced in the EU from 1 July 2009 making exports subject to a prior notification requirement (24-hour rule). For Switzerland as a third country, this regulation would have a considerable impact on procedures concerning the flow of goods with EU Member States, Switzerland's most important trade partners. The agreement between Switzerland and the EU will ensure smooth trade flows between Switzerland and the EU continue. The European Commission has established a transitional arrangement in the form of the Regulation of 2 April 2009 on the obligation to provide electronic entry and exit summary declarations which is valid until 31 December 2010. At that point Switzerland will also introduce the prior notification requirement concerning the transfer of goods with non-EU countries from 1 January 2011. The EU has introduced the status of Authorised Economic Operator (AEO) which eases customs security regulations for the accredited company when trading with non-member countries; Switzerland intends adopt this practice in the near future. It has been agreed that the respective AEO certificates will be mutually recognised by 2011 meaning only non-AEO traders will be subject to delays from that date due to pre-notification of the movement of goods.
^ TopVenezuela removed from GSP+
Date added: 15/07/2009Midnight 10 August 2009 - It has recently been brought to the attention of the European Commission that Venezuela did not ratify the United Nations Convention against Corruption, and therefore did not fulfil all the necessary requirements under Regulation (EC) 732/2008 to be granted the special incentive arrangement (GSP+). This means that the standard GSP beneficiary rates of duty will apply to all consignments from Venezuela, where GSP is applicable, which are released to free circulation on or after 11 August 2009.
^ TopWarning: 2010 change to commodity codes relating to wine
Date added: 15/07/2009As a result of changes to the Wine Common Market Organisation (CMO) Reg 479/08, Heading 2204 needs to be restructured for CN 2010. The Commission proposes to accommodate the requirements of the Regulation, whilst retaining the same level of detail/coding as in the CN at present, e.g. quality regional wines such as Bordeaux, Beaujolais, Rioja, etc. will remain. A more extensive review may emerge at a later stage. In summary, some alcoholic strength distinctions may be removed (from the CN structure, with duty requirements covered in footnotes), whilst the primary requirements of the Reg - the introduction of wines determined as being: with a protected designation of origin' with a protected geographical indication; and, covering varietal (vine variety indication) - will be introduced.
^ TopElectronic Version of EUR1 is NOT recommended for LEBANON
Date added: 15/07/2009HMRC have received a letter from the Lebanese Customs authorities, saying they will NOT accept EUR1 certificates with the electronically reproduced stamps and signatures. Other countries currently not accepting EUR 1s with electronic signatures are: Mexico, Switzerland, Israel, Egypt & Croatia.
^ TopEU gets tough on Toy Safety:
Date added: 15/07/2009DIRECTIVE 2009/48/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18 June 2009 on the Safety of Toys. New safety rules imposing tough chemical restrictions on toys will enter force at the end of July following their publication in the EU's official journal on Tuesday. Member states have until January 2010 to transpose them into national law. Here are a couple of provisions:
- Where the distributor makes a toy available on the market after the toy has been placed on the market by the manufacturer or the importer, it should act with due care to ensure that its handling of the toy does not adversely affect the compliance of the toy. Both importers and distributors are expected to act with due care in relation to the requirements applicable when placing or making toys available on the market.
- When placing a toy on the market, importers should indicate on the toy their name and the address at which they can be contacted. Exceptions should be provided for in cases where the size or nature of the toy does not allow for such an indication. This includes cases where importers would have to open the packaging to put their name and address on the product.
- Any economic operator that either places a toy on the market under its own name or trademark or modifies a toy in such a way that compliance with applicable requirements may be affected should be considered to be the manufacturer and should assume the obligations of the manufacturer
TURN and VAT numbers - EORI
Date added: 01/07/2009From 1 July 2009 TURNs were replaced by the EORI (Economic Operator Registration Identification) system in the UK/EC. This shouldn't cause major problems as the UK will be using current VAT Registrations numbers as the EORI. The only thing that will be different is that the current Branch IDs that are the last three digits of the TURN will no longer be used. Instead larger companies who need to known which division or branch the import or export if for will have to ensure freight forwarders declare a new code in Box 44 of the entry. This is BR and then three numbers. A free list of import/export entries showing Branch IDs will be made available by HMRC in August 2009.
^ TopCustoms Procedure Updates Session
Date added: 29/06/2009Changes to import and export procedures are happening all the time and it can be very difficult to know you are up-to-date. This one-day course is a summary of key changes that have affected international trade procedures in the last 12 months as well as a look ahead to things we are expecting to change.
Dates: 2nd September 2009 or 7th December 2009 Price: GBP 245.00 - discounts available if you book more than one place The agenda is fully revised prior each course to ensure it is current and valid but 2009 topics include: Export control System (ECS) with the new EAD Form, supply chain security issues, the Authorised Economic Operator (AEO) procedures, EORI replace TURNs, changes to customs regimes including End-use, Pre-Arrival/Pre-Departure Messaging, new origin/preference rules, the re-write of the Customs Code. It will include a review of the new Incoterms set for 2010. Delegates should have a good knowledge of customs procedure before attending this course.
^ TopUpdate: New security procedure USA - 10+2 Rule
Date added: 26/06/2009If you ship to the USA by sea freight you need to find out whether your customers and forwarders are aware of the new security procedure that was published on 25 November 2008. "importer Security Filing and Additional Carrier Requirements" (aka ISF or 10+2 Rule) was said to come in on 26 January 2009 but there is a 12-month implementation period. 10+2 Rule is a pair of new security filings that must be made by importers to the US Customs and Border Protection Agency (CBP). The new regulations ultimately stem from the Safe Port Act of 2006 and officially called the Import Security Filing. It is known as 10+2 because it requires two electronic filings for imported goods - one consisting of ten data elements, and then two additional ones as the goods move closer to the inbound port. The ruling requires importers of their designated agents to file 10 types of data elements 24 hours prior to vessel lading overseas. The vessel operator will have to submit the other 2 data elements 48 hours from the vessel departure from the foreign port. many carriers are no establishing information processing system connections to file both "ISF5" and "ISF10" message sets to comply with these new regulations. Perhaps the most difficult piece of information required is the country of origin and name of the manufacturer. Additional information can be found on www.cbp.gov and questions may be sent to Security_Filing_General@cbp.dhs.gov .
^ TopUpdate on AEO applications
Date added: 26/06/2009In June 2009 UK HMRC reported that 254 AEO - Authorised Economic Operator - applications have been received, mainly from freight internediaries and customs brokers. 79 AEO Certificates have been issued in the UK. Approximately 1200 applications have been received by authorities across the EU. There is very little activity in Portugal, Spain and Greece with the take-up being mainly in Germany, UK, Sweden and the Netherlands with Italy and France coming along. No real further progress has been made with regard to the mutual recognistion of EU AEO status with the USA, mainly due to the fact that the USA security system is in-bound freight biased and gives little security for countries receiving goods from the USA.
^ TopPre-Arrival, Pre-Departure Messaging (PAPD)
Date added: 13/06/20091st July 2009 is the start date still muted for the start of the EC implementation of Pre-Arrival, Pre-Departure Messaging (PAPD). This is part of the EC security measures under the new Export Control System (ECS) and Import Control System (ICS). Though it seems pretty certain that the Pre-Departure messages will be introduced on the 1st July 2009 there are problems with the Import messaging system so this will be deferred until later in 2009 or 2010.
^ TopExport Control Legislation
Date added: 13/03/2009After consultation exercise the third tranche of changes to the Export Control Leglislation will result in the introduction of the Export Control Order 2008 (SI 2008 no. 3231) which comes into effect on 6th April 2009. The changes affect UK trade controls, goods in transit and transhipment via the UK as well as consolidating amendments made in April and October 2008.
^ TopModernised Customs Code
Date added: 20/10/2008The European Commission have now released a first preliminary draft of the Implementing Provisions to this Modernised Customs Code (MCCIP) The following areas might be of particular interest: a) Centralised clearance b) Self Assessment c) AEO - requirement to meet the criteria (rather than hold a certificate) is covered in various articles d) temporary storage rules e) customs debt and guarantees. Contact Peter Starling at HMRC for further details. emailL peter.starling@hmrc.gsi.gov.uk
^ Top
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