Union Customs Code (UCC) Framework Now in Effect
As of May 1, 2016, the Community Customs Code (CCC) has been replaced by the Union Customs Code (UCC). The UCC aims to simplify international trade by standardizing customs procedures and data formats and by ensuring that all customs formalities within the EU are processed electronically.
Electronic Customs Processing
The UCC brings significant implications for businesses. The shift to fully electronic customs processing across the EU requires IT system upgrades by both customs authorities and companies. These systems will be rolled out gradually from late 2016 to the end of 2020.
Union vs. Non-Union Goods
While many terms remain similar, key changes include:
A broader definition of "declarant", now also covering notifications other than formal declarations
The term “import duties” now refers exclusively to customs duties
A new distinction between Union goods and non-Union goods
Authorization for Direct Representation
The UCC introduces some changes regarding representation, although most rules remain the same. Businesses can still appoint customs representatives, and representation may be direct or indirect (e.g. for exports).
Even though authorizations under civil law can be informal, for customs purposes, written authorization is required. Customs must be able to verify:
Who the principal is
Where the principal is established
Whether the signatory has the authority to issue the authorization
If these conditions are not met during a customs inspection, the representative may be deemed unauthorized. Existing authorizations remain valid.
EORI Number and New Authorization Models
Under the UCC, the legal basis has shifted from Article 5 CCC to Article 18 UCC. New authorizations now require the use of the EORI number (Economic Operators Registration and Identification number), which identifies active traders and must be used in data exchanges with customs.
Recommendation: From May 1, 2016, issue new authorizations for direct representation based on the updated model.
Impacts on Dutch Businesses
The UCC introduces several changes for Dutch companies:
A mandatory re-export declaration is now required for goods from customs warehouses; previously, a transit declaration (NCTS) was sufficient
The export declaration can still function as a transit declaration, allowing clearance at the point of exit
New codes for types of storage have been introduced
Obsolete procedure codes tied to discontinued customs procedures under UCC have been removed
For now, the effects on Dutch companies are relatively limited, but major changes are expected in the coming years.
Binding Tariff Information (BTI)
The use of Binding Tariff Information (BTI) is now mandatory if such a ruling has been issued. It must be declared using document code C626 and is valid for three years.
Customs Valuation Changes
Key changes to customs valuation include:
The "first sale" principle is no longer allowed
Unless exceptions apply, the last sale prior to import into the EU must be used as the basis for valuation
For customs warehouse storage, the value from the last sale must also be declared
If no sale has occurred at the time of entry into the EU, the sale while in storage must be used for valuation