UCC – New business opportunities linked to storage
The correct procedures and an AEO status will save money for your company. Guarantees will be required, but there are possibilities for reductions and even waivers.
The brand new Union Customs Code (UCC) will have an impact on most customs procedures. The storage procedures, Temporary Storage (TS) and Customs Warehousing (CW), are no exception and we would like to guide you through some of the changes and possibilities we see emerging.
First of all, we do see some differences when it comes to the timetables for implementing the new regulations, and in building new computerised systems. Most Member States are planning to implement the changes rather late in the transitional phase of UCC, but there are exceptions such as Sweden where implementation is planned for November 1st 2016.
Temporary Storage, option to Customs Warehousing?
The time limit for goods under the TS procedure will increase from 20/45 to 90 days, which could make TS a possible alternative to CW for some operators. The requirements for operating a TS will be lower than those for CW, which could make TS attractive for companies storing goods up to 90 days.
AEO could save you money
One requirement for operating a CW or a TS is to set up a guarantee, covering the duties for all goods under the storage procedure, for the customs office of authorisation. The guarantees entails major costs for Trade. A reduction or even a waiver can be applied for, assuming that the corresponding requirements are fulfilled. The requirements for reductions and waivers are similar to the criteria for an Authorised Economic Operator (AEO), so holders of an AEO certificate are well prepared for reduction or waiver applications.
Electronic communication is required
Since all communication with the Customs Authorities are to be conducted by electronic means, declarations transferring goods under TS and CW will have to be electronic as well. This requirement will impose changes in the declaration processes, and depending on which electronic data are to be submitted also your current data handling could be affected.
Four action points for consideration
- Look into the timetable of your customs authorities to identify when the new regulations concerning TS and CW will start to apply. This is to ensure that you are prepared when the changes come into force.
- Investigate and map your company’s storage needs. Would a TS be sufficient for your business setup or will you need a CW?
- Evaluate the benefits of AEO, both with regard to storage procedures and your business’s overall customs processes. If the benefits outweigh the investments, start a project to comply with the AEO criteria to enable early AEO application. If you already hold an AEO certificate, you should consult the new requirements to make sure you are prepared once the AEO is reconsidered.
- Identify the future information requirements and ensure that you can comply with them.
If you lack the in-house expertise or resources to evaluate and implement the revised procedures, KGH is able to support you through the process.