Union Customs Code ― overview

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Union Customs Code ― overview
  • Background
  • Main changes
  • Authorised Economic operator (AEO)
  • Valuation
  • Temporary storage (TS)
  • Exporter
  • Processing activities
  • Binding Tariff information (BTI)
  • Right to be heard

This guidance note provides an overview of the introduction of the Union Customs Code (UCC) with effect from 1 May 2016 which radically changes some of the import and export procedures. Details of the transitional arrangements that will operate until 2020 are also provided. This guidance note should be read in conjunction with Union Customs Code ― imports, exports and specific reliefs and procedures and Customs Declaration Service guidance notes.

Regulation (EU) No 952/2013 (UCC) ; Commission Delegated Regulation (EU) 2015/2446 / Commission Implementing Regulation (EU) 2015/2447 ; Commission Delegated Regulation (EU) 2015/2446 

In October 2013, the UCC was jointly adopted by the European Parliament and the Council, with most provisions applying from 1 May 2016. However, certain key issues were also outlined by the European Commission in the Delegated and Implementing Acts which were published in October 2015.

The UCC and its Implementing Acts significantly impact businesses who import goods into the EU. Therefore, businesses need to be prepared for substantial changes in EU customs valuation.

Businesses that were using first sale for export (FSFE) (also known as ‘prior sale’) had until the end of 2017 to continue to use this provision. From 1 January, the use of prior sale is no longer available.

Main changes

The list below provides an overview of the main changes that took effect from 1 May 2016:

  • mandatory guarantees for new authorisations for most special procedures and Temporary Storage (TS)
  • the ability to make some movements under TS rather than national transit or Electronic Transit System (ETS) (was known as New Computerised Transit System (NCTS))
  • the removal of the earlier

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