2011
In this edition we look at the latest data on;
· AEO New Guidelines for multinationals and large businesses
The European Commission earlier in March published specific guidelines on Authorised Economic Operator status for multinationals and large businesses ref pdf for details
Guidelines on AEO for Multinationals
Also the EC issued Regulation (EC) No 1192/2008 aligning the rules for granting both the AEO certificate for customs simplifications and the single authorisation for simplified procedures (SASP). Being an AEO facilitates the process of achieving a single authorisation for simplified procedures as the relevant criteria are deemed to be met.
A specific section dedicated to Small and Medium sized Enterprises (SME) with guidance on how to examine the AEO requirements is also now available from the EC , ref the guide pdf.
AEO Guidelines
The deadline for mutual recognition between the EU and the US on the AEO and C-TPAT has been missed . The US CBP were evaluating the AEO systems controls in various EU member states last year with a view to mutual recognition by the end of 2010, however not final agreement has been reached . We await news on the new planned date for mutual recognition.
You may also be interested in carrying out a self assessment before proceeding with and AEO application.
AEO Self Assessment
· New Customs penalties introduced in Finance Bill in Ireland:
The Finance Bill 2011 (Section 54), introduced administrative penalties for infringements of the EU Customs Code. The penalties will bring Ireland into line with the practice in most other EU Member States and will help to ensue uniform application of the EU Customs rules.
The infringements and penalties covered in the Section are
· failure to submit a declaration (penalty of €2,000);
· late submission of a declaration (penalty of €250 for each month for which a declaration is outstanding, subject to a maximum of €2,000);
· submission of an incorect or incomplete declaration (penalty of €100);
· not being in possession of documentation necessary to support an electronic declaration (penalty of €250);
· failure to comply with Article 38 or Article 101 of the Community Customs Code (penalty of €500); and
· failure to comply with any other provision of the Community Customs Code (penalty of €250).
These penalties represent a new departure in relation to Customs matters. Accordingly, for the time being at least, the general approach followed by Revenue will be to firstly issue a warning and only seek a penalty if the infringement continues after that warning.
Where a person disputes the imposition of a penalty the same appeal mechanism applies as for other taxes. In effect this allows the person to firstly seek a review of the penalty under Revenue’s review procedures (see Statement of Practice SP-Gen/2/99 (revised January 2005)). Where the penalty is maintained but the person is still unwilling to accept it, the matter will be referred for determination by a Court (see Chapter 3A, Part 47 Taxes Consolidation Act, 1997). Administrative penalties will not be applied in the case of serious fraud or smuggling. Instead the existing provisions will continue to apply – i.e. seizure of the goods (where possible) and prosecution for the offence.
· Exporters and their Customs agents advised they must be correctly authorised to complete and declare in the appropriate Representative Code in Box 14 of the Single Administrative Document
In accordance with the Customs Code( Article 5 of Council Regulation (EEC) No. 2913/92) a Direct Representative acts in the name of and on behalf of another person. In relation to import/export declarations, the exporter/importer will be liable for any customs debt arising from the declaration.
Article 5 of Council Regulation (EEC) No. 2913/92 (The EU Customs Code) provides that any person may appoint a representative in their dealings with the customs authorities to perform the acts and formalities laid down by customs rules. That Article also provides that such representation may be direct or indirect and outlines the consequences for a representative of failing to state the capacity in they are acting, or the consequences where a representative acts in another person’s name without being empowered to do so.
In line with the above Article, all Customs Clearance Agents are therefore required, when completing an import or export declaration, to specify in Box 14/1 of the SAD the capacity in which they are acting. Completion is mandatory… ref attachment
Where you are acting on behalf of another (i.e. a representative), the nature of the representation is a matter to be agreed between you and the importer/exporter. However, as a representative, you must be in a position to produce to Revenue on demand, evidence of your authority to act as such.
· European Commission published in February a summary report on the consultation on simplification of VAT collection procedures in relation to centralised customs clearance
VAT Collection Procedures in relation to Customs Clearance
· A Handbook on the WTO Customs Valuation Agreement
A Handbook on the WTO Customs Valuation Agreement provides a plain-language and comprehensive explanation of the terms of the customs agreement. Written as a learning tool, it aims to help both new and experienced policy-makers, customs officials, importers and exporters gain a deeper understanding of the Agreement’s function and aims. Customs valuation plays a fundamental role in the import of goods. It is the methodology that countries use to value imported goods in order to collect duty. The WTO Customs Valuation Agreement sets the international rules that must be followed.
The book covers the methods of valuation, as well as the provisions on enforcement, implementation and dispute settlement. The book uses practical examples, interpretative decisions of national and international customs bodies, as well as the negotiating history of the Agreement, to provide readers with a deeper understanding of the purposes underlying the legal text.
Written by Sheri Rosenow, WTO, and Brian O’Shea
Co-published with Cambridge University Press in 2010
WTO Customs Valuation Agreement
END
· AEO New Guidelines for multinationals and large businesses
The European Commission earlier in March published specific guidelines on Authorised Economic Operator status for multinationals and large businesses ref pdf for details
Guidelines on AEO for MultinationalsAlso the EC issued Regulation (EC) No 1192/2008 aligning the rules for granting both the AEO certificate for customs simplifications and the single authorisation for simplified procedures (SASP). Being an AEO facilitates the process of achieving a single authorisation for simplified procedures as the relevant criteria are deemed to be met.
A specific section dedicated to Small and Medium sized Enterprises (SME) with guidance on how to examine the AEO requirements is also now available from the EC , ref the guide pdf.
AEO GuidelinesThe deadline for mutual recognition between the EU and the US on the AEO and C-TPAT has been missed . The US CBP were evaluating the AEO systems controls in various EU member states last year with a view to mutual recognition by the end of 2010, however not final agreement has been reached . We await news on the new planned date for mutual recognition.
You may also be interested in carrying out a self assessment before proceeding with and AEO application.
AEO Self Assessment· New Customs penalties introduced in Finance Bill in Ireland:
The Finance Bill 2011 (Section 54), introduced administrative penalties for infringements of the EU Customs Code. The penalties will bring Ireland into line with the practice in most other EU Member States and will help to ensue uniform application of the EU Customs rules.
The infringements and penalties covered in the Section are
· failure to submit a declaration (penalty of €2,000);
· late submission of a declaration (penalty of €250 for each month for which a declaration is outstanding, subject to a maximum of €2,000);
· submission of an incorect or incomplete declaration (penalty of €100);
· not being in possession of documentation necessary to support an electronic declaration (penalty of €250);
· failure to comply with Article 38 or Article 101 of the Community Customs Code (penalty of €500); and
· failure to comply with any other provision of the Community Customs Code (penalty of €250).
These penalties represent a new departure in relation to Customs matters. Accordingly, for the time being at least, the general approach followed by Revenue will be to firstly issue a warning and only seek a penalty if the infringement continues after that warning.
Where a person disputes the imposition of a penalty the same appeal mechanism applies as for other taxes. In effect this allows the person to firstly seek a review of the penalty under Revenue’s review procedures (see Statement of Practice SP-Gen/2/99 (revised January 2005)). Where the penalty is maintained but the person is still unwilling to accept it, the matter will be referred for determination by a Court (see Chapter 3A, Part 47 Taxes Consolidation Act, 1997). Administrative penalties will not be applied in the case of serious fraud or smuggling. Instead the existing provisions will continue to apply – i.e. seizure of the goods (where possible) and prosecution for the offence.
· Exporters and their Customs agents advised they must be correctly authorised to complete and declare in the appropriate Representative Code in Box 14 of the Single Administrative Document
In accordance with the Customs Code( Article 5 of Council Regulation (EEC) No. 2913/92) a Direct Representative acts in the name of and on behalf of another person. In relation to import/export declarations, the exporter/importer will be liable for any customs debt arising from the declaration.
Article 5 of Council Regulation (EEC) No. 2913/92 (The EU Customs Code) provides that any person may appoint a representative in their dealings with the customs authorities to perform the acts and formalities laid down by customs rules. That Article also provides that such representation may be direct or indirect and outlines the consequences for a representative of failing to state the capacity in they are acting, or the consequences where a representative acts in another person’s name without being empowered to do so.
In line with the above Article, all Customs Clearance Agents are therefore required, when completing an import or export declaration, to specify in Box 14/1 of the SAD the capacity in which they are acting. Completion is mandatory… ref attachment
Where you are acting on behalf of another (i.e. a representative), the nature of the representation is a matter to be agreed between you and the importer/exporter. However, as a representative, you must be in a position to produce to Revenue on demand, evidence of your authority to act as such.
· European Commission published in February a summary report on the consultation on simplification of VAT collection procedures in relation to centralised customs clearance
VAT Collection Procedures in relation to Customs Clearance· A Handbook on the WTO Customs Valuation Agreement
A Handbook on the WTO Customs Valuation Agreement provides a plain-language and comprehensive explanation of the terms of the customs agreement. Written as a learning tool, it aims to help both new and experienced policy-makers, customs officials, importers and exporters gain a deeper understanding of the Agreement’s function and aims. Customs valuation plays a fundamental role in the import of goods. It is the methodology that countries use to value imported goods in order to collect duty. The WTO Customs Valuation Agreement sets the international rules that must be followed.
The book covers the methods of valuation, as well as the provisions on enforcement, implementation and dispute settlement. The book uses practical examples, interpretative decisions of national and international customs bodies, as well as the negotiating history of the Agreement, to provide readers with a deeper understanding of the purposes underlying the legal text.
Written by Sheri Rosenow, WTO, and Brian O’Shea
Co-published with Cambridge University Press in 2010
WTO Customs Valuation AgreementEND
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