UCC – several changes to handle in your daily operations

We know that the implementation of the Union Customs Code (UCC) will result in a constantly changing environment. This will be ongoing until at least the end of 2020 and probably beyond. So what challenges and opportunities can we expect in our day-to-day business?

The future of customs handling is changing. Even though not everything is clear as yet, enough is clear to help companies prepare for what’s to come.

 

New customs simplifications – new possibilities?

With UCC come new customs simplifications such as centralised clearance and self-assessment. These are planned to be deployed late in the implementation process (2019-2020), but it may already be of interest to make a first evaluation of the possibilities they will bring.

Need for customs competence will increase

Customs competence is now a criterion that has to be met for an Authorised Economic Operator (AEO) permit to be awarded. Furthermore, competence in the area of customs will be crucial in making the right decisions on what customs procedures to use, how to assure compliance and what changes need to be made when new electronic systems are implemented.

Constant changes in data requirements

Working in a constantly changing electronic environment will require us to keep track of and prepare for the coming changes. It will be very important to monitor changes that have an impact on the data-sets provided in customs declarations.

Permit requirement changes

More permits will require a financial guarantee to secure potential customs debt that occurs. This will have a financial impact on most customs permit holders. Some of the most far-reaching simplifications, such as centralised clearance and self-assessment, will require the applying company to hold an AEO permit for customs simplifications. Requirements for different customs permits will also be more in line with the criteria for AEO.

Use of guarantees needs to be monitored

The new guarantee regime will result in a need to provide larger numbers of guarantees for different kinds of permits, such as deferred payment and customs warehousing. The new Guarantee Management System (GUM) will provide better possibilities for customs authorities to real-time monitor the coverage relative to the goods value covered by the permits. To prevent delays in customs processes, it will be necessary to monitor the use of guarantees. If this is not done, arriving goods could be prevented from release at the land border, airport or port terminal due to excessive guarantees, resulting in delayed deliveries.

New customs possibilities could result in higher control frequency

With the new electronic systems being built, the customs authorities will be better able to evaluate risks in the goods flows. Errors in customs declarations will be easier for customs authorities to detect thanks to built-in validation features.

 

Six action points to help you manage the changes

  1. Look into the new customs simplifications and evaluate the future opportunities they will bring.
  2. Identify where the customs competence is in your company, and ensure that you have the knowledge to make the right decisions. Also, if you are an AEO, be sure you can demonstrate that you meet the competence criteria.
  3. Look into the coming data-set for the customs procedures you use and ensure that you hold the data for the future requirements.
  4. Identify the permits you need for your business processes and ensure compliance with the new requirements.
  5. Calculate what guarantee you will need to put up as security for customs for the identified permits.
  6. Review the quality of your customs declarations to see if there is any need for quality improvement measures.

If you have any further questions or would like to know more, please don’t hesitate to contact us.

Catharina Olofsson, Consulting Director
catharina.olofsson@kghcustoms.com

Posted by Ann-sofie Fransson, 3 years ago

Newsletter

Comments

More stories

Union Customs Code (UCC) means many big changes for European customs and trade. But it’s also time to ensure your on-going procedures are up to scratch.
UCC primarily focuses on two things: Permits and Digitalization. Managing all these changes requires that you take control of your routines.
The implementation of the new Union Customs Code (UCC) will have an impact on all customs procedures.
The new Union Customs Code, UCC, is already influencing several companies, but not all are taking actions accordingly. A recent study by KGH Customs Services shows that uncertainty about what to do is a main reason why companies are not yet taking measures.