By Arne Mielken UECBV Working Group Imports 09 April 2010 Brussels, Belgium Modernized Customs Code: What's at stake for Meat Importers?

Modernized Customs Code REGULATION (EC) No 450/2008 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 April 2008 laying down the Community Customs Code (Modernised Customs Code). ‒ “[…] once the implementing provisions [have been] adopted ‒ The implementing provisions shall enter into force on 24 June 2009 at the earliest. ‒ Notwithstanding the entry into force of the implementing provisions, ‒ The provisions […] shall be applicable on 24 June 2013 at the latest.

Modernized Customs Code Implementing Provisions (MCCIPs) TCG consultation: ‒ 5 Working Sessions with DG TAXUD on MCCIPs from 8 th – 12 th February 2010 ‒ 7 Further Working Sessions from March 2010 ‒ Participation at TCG and CCC meetings on MCCIPs UECBV’s contribution ‒ Active participation during the meetings ‒ Creation of a detailed special report for UECBV ‒ Consultation + Submission of comments by short deadline

Modernized Customs Code Implementing Provisions (MCCIPs) Timetable ‒ April/May: New consolidated version and informal Interservice consultation ‒ September: Consolidation of Annexes ‒ Sept 2010 – March 2011: Final stage of consultation ‒ End of 2010: Creation of guidelines and explanatory notes ‒ Spring (March) 2011: Vote scheduled ‒ 24 June 2013: Application

Modernized Customs Code Implementing Provisions (MCCIPs) Key comments from UECBV 1.Timeframe for consultation too short 2.Curent trade facilitation under the CCIPs need to be maintained (and were possible further developed) under the MCCIPs 3.AEO criteria are indirectly forced onto Meat Traders or their forwarders by Interest in tariff quota management 5. Interest in special procedures: Inward processing – Discussion on « economic conditions »

Modernized Customs Code Implementing Provisions (MCCIPs) TITLEWHAT ISSUE?PAGES IGeneral provisions13-85 IICustoms Tariff, Tariff management, Origen and Valuation IIICustoms Debt and Guarantees123 – 171 VIImports VCustoms Status, Customs Procedure (centralized clearance, entry into records) 181 – 237 VIRelief for free circulation and relief of import duties VIISpecial Procedures (Customs Status and Transit, Inward and outward processing) 245 – 337

Modernized Customs Code Implementing Provisions (MCCIPs) TITLE I General provisions

Modernized Customs Code Implementing Provisions (MCCIPs) General provisions – Some points to consider ‒ Definitions on important concepts What is a decision? What is proven solvency? What is self-assessment? ‒ Right to be heard (page 49) Article “ Right for a person to express his point of view”. Article spells out the “Exceptions” It is important for Meat Importers to read carefully the provisions provided within these article! - Electronic data processing techniques are the principle for all procedures

Modernized Customs Code Implementing Provisions (MCCIPs) General provisions – Some points to consider ‒ General & horizontal provisions fixed the same rules for ALL procedures rather than repeating the same (similar) steps for each different type of procedure. ‒ Rule is “benefits” against “customs compliance and security level”. ‒ The voluntary system “AEO” becomes de facto mandatory if you wish to keep your simplifications of today. ‒ More AEO requirements – more new simplification concepts Customs Competence, taxation infringements Centralized clearance, self-assessment, entry into records

Modernized Customs Code Implementing Provisions (MCCIPs) TITLE II Customs Tariff, Tariff management, Origen and Valuation

Modernized Customs Code Implementing Provisions (MCCIPs) Binding Tariff Information ‒ The Binding Tariff Information (BTI) system is a tool to assist economic operators to obtain the correct tariff classification for goods they intend to import ‒ Legal status – BTI decision ‒ MS can refuse BTI applications to eliminate BTI shopping and to prevent requesting BTI without any intended use. Binding Origin Information (BOI) BOI are decisions by the competent authorities, which are binding in EU Valid for 3 years MCC IPS Art to of Title 1.

Modernized Customs Code Implementing Provisions (MCCIPs) Tariff quota management ‒ MCC states that “Where a new tariff quota is opened, drawings shall not be granted by the Commission before the 11th working day following the date of publication of the provision which created that tariff quota. ‒ The first allocation on a new tariff quota shall take into account all unanswered requests which relate to declarations for release for free circulation accepted since the first day of the validity period of the tariff quota and which have been communicated to the Commission. ‒ Priority shall be established in accordance with the chronological order of the dates of acceptance of the customs declarations”.

Modernized Customs Code Implementing Provisions (MCCIPs) Changes in the allocation of TRQs – Par. 2: introduces the concept of “working” day, in order to take into account the national holidays in different Member States. Only two allocations will be allowed between Christmas and New Year, which will restart in the new year on the 4th working day. - The critical status of TRQs is treated under art 33, par. 4 and 5 of the MCC and detailed under art. 308, c of the MCCIP.

Modernized Customs Code Implementing Provisions (MCCIPs) TITLE III Customs Debt and Guarantees

Modernized Customs Code Implementing Provisions (MCCIPs) Customs Debt & Guarantees ‒ Article (page 133) spelling out the “Reduction of the level of the comprehensive guarantee and guarantee waiver”. ‒ Guarantee waiver may be granted if AEO. ‒ If not all but some of the conditions are met, you can obtain a guarantee reduction of 30 % ‒ Could result in much better cash flow for Ship Supply companies ‒ - “may” = national lobby action required

Modernized Customs Code Implementing Provisions (MCCIPs) Guarantee Management PRINCIPLE 1: No national provisions for reductions or waivers will be granted anymore. PRINCIPLE 2: Community wide validity of guarantees PRINCIPLE 3: Guarantees for other charges than customs duties Art. 56(2) MCC The guarantee required may also cover other charges as provided for under other relevant provisions in force.. PRINCIPLE 4: AEOs will benefit from a waiver or reduction of guarantees PRINCIPLE 5: Computerized guarantees

Modernized Customs Code Implementing Provisions (MCCIPs) TITLE IV Import

Modernized Customs Code Implementing Provisions (MCCIPs) Import TITLE IV - Chapter 1 -Entry summary declaration (ENS) -Entry summary declaration required by 1 January 2011 The draft MCCIP regulate, in particular – the customs office where the ENS shall be lodged, – the content of the ENS (in an Annex), – the exceptions from the general principle that all declarations shall be lodged using an electronic data-processing technique, – the person who is responsible for lodging an ENS – the deadlines for lodging an ENS, – the cases in which an ENS is not required, and – the period for which an ENS is valid.

Modernized Customs Code Implementing Provisions (MCCIPs) Import Non-Community goods shall be placed under a customs procedure; otherwise, they are deemed to be under temporary storage. Non-Community may be brought into the customs territory of the Community under a transit procedure under the rules for that procedure; once this procedure has ended, the provisions on goods bought into the customs territory of the Community apply.

Modernized Customs Code Implementing Provisions (MCCIPs) TITLE V Customs Procedure and Simplifications

Modernized Customs Code Implementing Provisions (MCCIPs) Placing goods under a Customs Procedure ‒ Centralised clearance ‒ Entry into the records ‒ Paper-based customs declarations ‒ Simplified declarations (Article onwards) ‒ Provisions applying to all customs declarations ‒ Other simplifications e.g. self-assessment ‒ Temporary storage and free zones (current control type I) are now a customs procedure and as such require customs declarations

Modernized Customs Code Implementing Provisions (MCCIPs) TITLE VII Special Procedures

Modernized Customs Code Implementing Provisions (MCCIPs) Inward processing (Special procedures) – Merger of inward processing, suspension system, processing under customs control and destruction, – Intention for re-export of processed products is not required, – Two rules for calculating the import duty, – Inward processing drawback system no longer maintained

Modernized Customs Code Implementing Provisions (MCCIPs) Equivalent goods - Economic conditions – guarantees – An authorisation for a processing procedure can be granted only where essential interests of Community producers would not be adversely affected; – Legal fiction in the MCC: the essential interests of Community producers shall be deemed not to be adversely affected, except where evidence to the contrary exists or where the customs legislation provides that the economic conditions are deemed to be fulfilled; – Examination in the Customs Code Committee. -Scope of the use of equivalent goods is widened - The use of a special procedure requires the provision of a guarantee.

Modernized Customs Code Implementing Provisions (MCCIPs) Any questions?

By Arne Mielken UECBV Import WG Meeting 12 April 2010 Brussels, Belgium Modernised Customs Code What’s at stake for Meat Importers? Thank you very much for your attention