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Proprietary and Confidential© Copyright Amber Road, Inc., 2016. All rights reserved.

Trade Compliance Seminar

Arne MielkenSenior Trade Specialist, Content, European Union

12 May 2016

Union Customs Code Big Bang or Smooth Sailing?

What to do next!


Introduction

1. Welcome Union Customs Code!

2. UCC – What to do next

3. Information, Guidance and Training on the UCC

4. UCC changes

5. UCC IT Work Programme

6. UCC: The future is DATA

7. UCC: How GTM solutions can help

Proprietary and Confidential


Results for 2015

Global Trade Content

HS / ECCN /Schedule B / ALADI

Import Controls

Landed Cost

Restricted Parties

Export Controls

Rules of Origin

DocumentationRequirements

Embargoes

Global Trade Content

230,607 import controls

1.9 million tariff records

500+ preferential programs

325 restricted party lists

1.1 million dutiable records

2,500 trade documents

145 countries

140,518 export controlsPowered by Global Knowledge®

In 2015, Amber Road updated 10,035,612 million trade records.

~1/5 of Amber Road is dedicated to keeping our content up to date and

accurate for our customers


Welcome Union Customs Code!

As of May 2016, the UCC is applicable.

• The UCC is complemented by its Delegated Act (DA) and Implementing Act (IA).


• Its full implementation is inseparably linked to the development of the supporting IT systems.

• The Transitional Delegated Act (TDA) describes how to cater for this transitional period that will run until 2020.

• The Work Programme of the UCC sets out an extensive plan for the implementation of electronic systems, based on the MASP, in order to ensure the correct application of the UCC.


Who is impacted?


• Paying customs duty• Storing goods in warehouses 'under bond'• Moving goods in transit across the EU.• Processing goods into something else

Type of operation

• Manufacturers• Importers• Exporters• Freight forwarders• Warehouse-keepers• Clearance agents• Carriers

Type of operator


Who is impacted?


• Finance• Information Technology• Sales • Logistics and Warehousing• Importing and Exporting• Manufacturing• Legal• Contract Management• Procurement• Security• HR

Internal


UCC – What to do next



Information on the UCC


http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/ucc/index_en.htm


DG TAXUD - TCG‘Standard’ Trade Contact Group (TCG) meetings

Electronic customs meetings

Extraordinary UCC meetings

CustomsBusiness Group

Union Customs Code DA/IA – Title V –Project Group on

Simplification

Union Customs Code DA/IA – Project

Group for Import & Export Formalities

Union Customs Code DA/IA – Title VII –

Special procedures

Information on the UCC


Free Guidance on the UCC


These guidance documents are of an explanatory and illustrative nature. Customs legislation takes precedence over the content of these documents and should always be consulted. The authentic texts of the EU legal acts are those published in the Official Journal of the European Union. There may also be national instructions.

Data Integration and Harmonisation

(DIH)

AuthorisedEconomic

Operators (AEO)

Binding Tariff Information Valuation Debts and

Guarantees

Import and Entry Simplifications Transit Special Procedures Export

Proprietary and Confidential© Copyright Amber Road, Inc., 2016. All rights reserved. Proprietary and Confidential

UCC - Overview•105 minutes

UCC -01- Customs Procedures and Customs Declarations•75 minutes

UCC -02- Entry of Goods and Temporary Storage• 90 minutes

UCC -03- Release for Free Circulation•60 minutes

UCC -04- Binding Tariff Information•60 minutes

UCC -05- Origin of Goods•75 minutes

UCC -06- Customs Valuation•60 minutes

UCC -07- Customs Status of Goods•85 minutes

UCC -08- Customs Debt•75 minutes

UCC -09- Guarantee•60 minutes

UCC -10- Special Procedures other than Transit•90 minutes

UCC -11- Customs Transit•90 minutes

UCC -12- Export•75 minutes

UCC -13- Customs Decisions•90 minutes

UCC -14- Authorised Economic Operator•60 minutes

Free E-training Programme


EU Customs Competency Framework

• Harmonise and raise customs performance standards throughout the EU.

• a consensus view of knowledge, skills and behaviors required by customs professionals in the EU

• Defines Customs roles (‘Job profiles’).• Tools to map and adapt the agreed EU

customs competencies


Degree training & In-house specific

Diploma in World Customs Compliance and Regulations

Diploma Programme in Customs and Supply Chain Compliance


UCC changes


Customs procedures and customs declarations, release for free circulation • Introduction of self-assessment• Introduction of Entry Into the Declarant's

Records (EIDR) • Introduction of centralised clearance

(2019) • Electronic customs declarations

(2019/2020)• Harmonised data requirements (Annex B

of DA) (2017)

Customs decisions• New customs decision IT system (2017)• Increased streamlining of rules and

procedures relating to the various customs decisions

• Where it appears that interests of Union producers are likely to be adversely affected, an examination of the economic conditions takes place at Union level.


UCC changes


Authorised Economic Operator

• Certificate becomes authorisation.• Provisions on customs decisions apply to AEO.• Authorisations are fully electronic.• Only two types of AEO: AEOC and AEOS. However the two types can be held at the same time,

AEOC/S.• AEOC is mandatory for certain customs simplifications.• Criterion on compliance is enhanced.• Criterion on competence is added.• Explicit requirement for a person responsible for security within the company to fulfil the criteria

for AEOS.• Satisfactory procedures in place for the import and export licence connected to the prohibitions

and restrictions applies to both AEOC and AEOS.• Self-Assessment Questionnaire (SAQ) is mandatory when applying for an AEO status.


UCC changes


Entry of goods Entry Summary Declarations (ENS) may be submitted in different sets, by different actors (2020)• Provision of Pre-Loading Air Cargo Information (PLACI) – (2020)• Harmonisation of ENS-data requirements (2020)• Some exemptions from the ENS requirement have been removed (2020)

Temporary storage• Duration of temporary storage is streamlined to 90 days.• Move of goods under temporary storage is possible.• Authorisation to operate a temporary storage facility is required.

Customs status of goods• Electronic Proof of Union Status including the Master Reference Number (MRN) -2019 • Authorised issuers may issue a customs goods manifest as proof


UCC changes


Export

• Split exit scenario will be rationalised (2020)• Customs simplifications centralised clearance and EIDR apply (2019)• High system availability (2020)• Interface between the Automated Export System (AES) and the Excise Movement and Control

System (EMCS) – (2020)• Transit control results must be used to close the export movement when 'export followed by

internal transit‘ (2020)


UCC changes


Classification• BTI decision is binding upon the holder + BTI decision is valid for 3 years.• Provisions on customs decisions apply to BTI.• BTI on the goods declared to be included in the customs declarations

Origin• New possibility for the European Commission to adopt specific origin determinations for goods on a

case by case basis.• Provisions on customs decisions apply to BOI + BOI is binding upon the holder.• Non-preferential list rules are laid down for more products (DA).• In general, no rules on the format in which the proof of non-preferential origin is required.• Provisions outside the code have been integrated in the UCC.

Valuation• Last Sale + Inclusion of most royalties• Value declaration (DV1) will disappear as paper document and will be inserted in the customs

declarations.• Extension of the scope of the authorisation for simplification of the determination of the customs

value


UCC changes


Customs debtMore cases in which customs debt can be extinguished.Any person providing false information in the customs declaration can be considered a debtor.Alignment of the rules on the incurrence of customs debt through non-compliance

Rules on calculating the amount of import duty have been streamlined.

Guarantee• New central guarantee management

system (2020)• No need for approval by the customs

authorities as accredited guarantor in the Union (for credit institutions, financial institutions and insurance companies)

• Authorization for comprehensive guarantee with reduced amount is limited to AEOS.

•


This means that EU businesses will:

By 2020, under the UCC, each Member State must "set up and operate secure, integrated, interoperable and accessible computerised customs systems".

DECISION No 70/2008/EC on a paperless environment for customs and trade

Exchange import, export and compliance data electronically with

customs offices throughout the Union, including data used in

areas other than customs (e.g. excise)

Lodge customs declarations in

electronic format from the business

premises, irrespective of where in the Union

the goods enter or leave

Receive a wide range of electronic customs services, making use of information portals and single electronic

access points for import and export

transactions

UCC changesData management under the UCC + e-customs until 2020


Registered Exporter System

(REX)

UCC BTI/Surveillance

2+UCC Customs

Decisions

Direct trader access to the European

Information Systems (Uniform user

management & digital signature)

UCC Proof of Union Status (PoUS)

UCC Authorised Economic

Operators (AEO) update

UCC Surveillance 3UCC New

Computerised Transit System (NCTS) update

UCC Automated Export System

(AES)

UCC Information Sheets (INF) for

Special Procedures

UCC Special Procedures

UCC Notification of Arrival,

Presentation Notification and

Temporary Storage

UCC Centralised Clearance for Import (CCI)

UCC Guarantee Management

(GUM)

UCC Safety and Security and Risk

Management

UCC Classification (CLASS)

UCC IT Work Programme



UCC Registered Exporter System (REX)

• The project aims to make available up-to-date information on Registered Exporters established in GSP countries exporting goods to the Union.

• The system will be a trans-European system and also include data about EU economic operators for the purpose of supporting exports to GSP countries.

• The required data will be inserted in the system in a gradual manner until 31 December 2017.



UCC Binding Tariff Information (BTI)The project aims at providing an upgrade of the existing trans-European EBTI-3 system and Surveillance 2 system to ensure the following:a. alignment of the EBTI-3 system to the UCC requirements;b. extension of under-surveillance-required declaration data;c. monitoring of the compulsory BTI usage;d. monitoring and management of BTI extended usage.

Implementation of the electronic form of the BTI application and decision and provide for the economic operators an EU harmonised trader interface to submit the BTI application and receive the BTI decision electronically.



Customs decisions

Harmonising • Application process • the decision-taking • decision management

How?• standardisation and electronic management of application and decision/authorisation

data across the Union.

• This trans-European system consists of an • EU trader portal, • a customs decisions management system and • a customer reference system.



Direct trader access to the European Information Systems (Uniform User Management & Digital Signature)

• A direct and EU-harmonised trader access which interfaces with other electronic customs systems.

• Uniform User Management and Digital Signature • Identity, • access and user management • necessary security policies.

For usage with:• UCC Customs Decisions system • UCC BTI, • UCC AEO• UCC Proof of Union Status system• UCC Information Sheets (INF) for Special Procedures system


UCC: How to quench the data thirst?

UCC: The future is DATA


• Development of (process) manuals with customs related, organizational procedures

• Organisational / distribution of responsibilities

• Control / sampling tests• Storage and archive of trade

records

Process and Procedures

• Must be dealt with before customs control operations.• Provides solutions for conflicting,

inaccurate or late arriving data.• Allows shared information precision

between trading partners.• Automation possible: Intelligent

database technologies and validation rules form the basis of DQM.

Data Quality Management (DQM)

UCC: The future is DATA


Governments Trade

Professionals Trade

Professionals Trade

Professionals Developers

Publish trade regulations

Monitor sources and collect data

Interpret data and apply to real world situations

Define compliance logic

Build logic into software

End Users

Software

UCC: How GTM solutions can help

Depth & Scope of Data Strength of Logic


UCC: How GTM solutions can help

Centralised Database– For all trade data and regulations/rules (Content) – With all relevant trade data– Central Storage repository

Agile technology to integrate the processes of all departments, actors, stakeholders in the trading process:

– People– Partner companies (Clients, suppliers, freight forwarders,

customs brokers etc.)– Different IT systems– Processes


For More Information:

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