UCC and Permits – The consequences and the opportunities
With the Union Customs Code (UCC) customs permits and processes are set to change dramatically. Follow our simple guide to take full advantage.
One area within customs management that will go through complete change is customs permits, including the permits themselves and the application process. All customs permits will be reconsidered, and this will be done throughout the whole UCC implementation period. What’s more, the degree of complexity involved will vary greatly for different types of permits.
Why act in time?
Customs authorities will plan when different permits should be reconsidered. They will also decide how to run the process. For permit holders who want to retain permits being reconsidered, KGH encourages them to act promptly when customs authorities request additional information or other actions to secure the permits. We also advise you to confirm who in your company will receive information from customs, and alert them to the fact that such correspondence will come their way and what they should do when they receive it. It is also advisable to proactively follow plans and communications from local customs authorities to make sure you are on top of the process rather than risk leaving it to the last moment. For example, some customs permit reconsiderations may involve placing additional requirements on permit holders. If you are proactive, you will gain more time to act on these added requirements.
The risk of doing nothing
Not reacting to information requests from customs authorities will mean risking losing certain permits or running out of time to make the necessary changes to comply with any additional requirements. This could impact your daily operations. Which, in turn, could negatively affect both your company’s profit margins and/or customer service.
A simple guide to get you started
Follow our suggested guidelines:
- Gain an early understanding of the customs permits your company currently has – and the role these permits play in your daily operations. Check also that you comply with any specific requirements within these permits.
- Decide which permits (or areas) are particularly important to your company and keep a close eye on requirements connected with them as well as the timing for when they may be reconsidered.
- If you have permits you no longer need or use, proactively recall them or cancel them before they are reconsidered.
- Review permits your company could benefit from that you currently do not have. Make a plan to apply for them when that becomes a possibility under UCC.
- Within each country where you have operations, proactively follow information from your customs authority about the customs permit reconsideration process.
- Take the opportunity to review and improve the collective customs knowledge in your company, including how to apply it practically, to help you with your transition through UCC.
We hope these permit guidelines are of value. But please do not hesitate to contact us at KGH if we can help you with any specific questions.