With effect from 1st May 2016 the Union Customs Code (UCC) became the applicable customs law within all twenty-eight member states of the European Union (EU).
Its introduction will have a significant impact on the way in which goods are imported, exported, cleared and forwarded. It is therefore very important that you make sure that you are fully aware of all the new provisions of the UCC.
Here’s a brief summary we’ve prepared to help you get to grips with the key UCC changes in relation to your activity with FedEx:
- Please note that those few EU countries which in the past have not collected duty calculated at less than 10 Euros are now mandated to meet this requirement;
- It is now mandatory that a Binding Tariff Information (BTI) reference number must be quoted on all customs declarations related to the movement of eligible goods. Please therefore do make sure that you inform us of this BTI number so that we can facilitate the speedy processing of your shipments.
- Be aware that the period of validity for BTI numbers is now reduced from six to just three years.
- The ceiling for the Value Declaration (DV1) has now been increased to 20,000 Euros (it was formerly set at 10,000 Euros). Please make sure to bear this in mind when preparing your own declarations;
- Royalties and license fees being charged to a customer must be specifically identified on the commercial invoice;
- Prior to the introduction of the new UCC regulations, it was the value of the first sale of a relevant product that was used as the basis for the calculation of duties and taxes. Duties and taxes will now be based on the value of the last sale.
- The Customs authorities in each member state are required to re-assess all existing customs related authorisations. If you already possess such an authorisation it will have to be reviewed by 1st May 2019 at the latest.
Note that Inward Processing Relief (IPR) and Processing under Customs Control (PCC) licences will be merged into a single IPR Suspension licence;
- If you are a non-EU established shipper or exporter you will need to appoint a fiscal representative based in the EU to act on your behalf. You should also provide this information to FedEx as soon as possible so that we can establish correct customs declaration procedures with this representative.
- The Safety and Security Entry Summary Declaration (ENS), which in the past has only been applied to goods valued over 22 Euros, will become mandatory for all shipments whatever their value with effect from 2020. In practice this means that any consignment can be stopped for safety and security customs inspection resulting in a potential for clearing delay;
A 6-digit harmonised code for every commodity will also be required to be entered on each ENS with effect from 2020. Prior to that date, however, we suggest that you start adding these codes on all your commercial invoices.
The introduction of the new UCC regulations right across the EU will require significant changes to many national customs systems and procedures. So the easiest way for you to keep abreast of exact implementation dates and related documentation requirements is to regularly check all the details on the national customs websites. The EU Commission has also published guidance documents on certain key topics that clarify the practical implementation or usage. We invite you to consult these documents for more information.