Grosvenor International Systems Ltd - Latest news

Senior Accounting Officer - New Guidance

Grosvenor International Systems Ltd — 2012-05-02T12:24:52+01:00

HMRC has published new internal guidance on its website in respect of Senior Accounting Officers responsibilities.SAO reporting requirements were introduced in 2009 and require an SAO of a qualifying company to certify that the tax affairs of the company are adequately controlled and are in order. Various failures are subject to penalties against the SAO.

The detailed guidance suggests that the initial enforcement light touch no longer applies. The guidance can be accesses via the following link: http://www.hmrc.gov.uk/manuals/saogmanual/index.htm

UK Says YES to FISCUS

Grosvenor International Systems Ltd — 2012-04-12T07:09:14+01:00

The Economic Secretary to the Treasury has confirmed the UKs participation in the FISCUS programme. The attached document and previous News items provide more detail.

Repayment of Footwear Anti Dumping Duty (ADD)

Grosvenor International Systems Ltd — 2012-04-02T06:58:20+01:00

HMRC has published a Customs Information Paper (attached) about the availability of refunds of ADD paid in respects of imports from 4 particular Chinese footwear manufacturers. The issue revolves around a European Court of Justice case that annulled the 2006 regulations that introduced the ADD (which expired in March 2011), but only in respect of the four manufacturers quoted in the CIP.

An interesting point to note is that recovery is limited to three years from a claim rather than back to when the 2006 regulation was introduced.......the sound of Lawyers sharpening their pencils is in the distance!

Export Non-Compliance

Grosvenor International Systems Ltd — 2012-03-29T18:48:49+01:00

Following on from the Export Best Practice Guide, HMRC have been continuing to monitor compliance with export requirements. Some 4000 declarations per month are non compliant in terms of non-Arrival/Departure.

Although HMRC will continue to "re-educate" they have said that they will be issuing penalties in the coming financial year.

4000 declarations equates to 1% of the total declarations made, but HMRC do not see this as an accepatble level. You have been warned!

HMRC Clarify Agent Representation For Ex-Works Exports

Grosvenor International Systems Ltd — 2012-03-29T09:52:09+01:00

HMRC have clarified the position that both freight/customs clearance agents and sellers have in respect of Ex-Works Export sales. The main issues are:

An agent making a sale on behalf of a non-EU buyer must do so under indirect representation (i.e. the agent is jointly and severaly liable); and
The name of the EU seller/contacting party must be declared as the exporter even though they do not own the goods at the time the declaration is made.

Many shippers/agents will be unhappy with this position - it can only be changed if the EU Seller agrees to instruct the agent or the EU seller (to protect VAT Zero Rating or Duty Relief processes) undertakes the NES declaratrion in their own name.

ICS - Enforcement Action on the way

Grosvenor International Systems Ltd — 2012-03-29T09:10:19+01:00

HMRC/UKBA have said that they are concerned about the quality of data being declared via the ICS system (this is the processes that shippers have to use to submit pre arrival security declarations) and indeed, there are some airlines that are not submitting any ICS data in respect of shipments from the Middle East.

These and issues of misdescription on ICS declarations will be subject to civil penalties and enforcement action - the clear question is how will such action be undertaken if the shipper involved has no UK entity?

WTO Preferential Trade Agreement Database

Grosvenor International Systems Ltd — 2012-03-27T07:05:48+01:00

The WTO has published a database of Preferential Trade Agreements being implemented by WTO Members - the site can be found via this link: http://ptadb.wto.org/

UCC - The Commission and The Increase In Power

Grosvenor International Systems Ltd — 2012-03-15T17:28:57+01:00

The draft recast of the MCC, now the Union Customs Code (“UCC”) has been introduced to
take account of the level of change in process, procedure and IT infrastructure
needed to achieve its aims, to accept that the current timescale allowed for in
the MCC are unachievable in practice and to align the legislation with the
Lisbon Treaty.

A key element of the “Treaty on the Functioning of the European Union” is the
delegation of powers to the Commission to create and enact legislation.

How this differs from the current position in respect of Customs law is that the
Commission is now (in respect of particular provisions within the UCC – some 50
of them) not obliged to consult and seek agreement of Member States in
respect of (certain) UCC implementing provisions.

The Commission can, under these “Delegated Act” Powers (see UCC Article 243), create
Customs law - the only oversight allowed
is by the European Parliament (“EP”) or Council – if they (the EP or Council) do not object within
2 months of the publication, the act will be passed into law. In addition, the EP
or Council can revoke any particular delegation of power provision.

As you will no doubt appreciate, this increases the power of the Commission and indeed the
power of the MEP’s within the European Parliament.

The areas where these delegated acts powers apply within the UCC range from Valuation,
Origin, guarantees, to Customs Declarations, Special Procedures, Temporary Admission
and more.

Get ready to lobby your politicians!

Review of the Implementation of the Modernised Customs Code

Grosvenor International Systems Ltd — 2012-03-02T12:37:51+01:00

A European Parliament review of the Implementation of the Modernised Custome Code has been published.The terms of the study that resulted in the report were:

"The aim of this study is to examine the challenges and conditions relating to the implementation of the Modernised Customs Code. The study identifies and assesses the legal, IT technical and operational issues in view of the implementation of the Modernised Customs Code."

The study suggests that the best case date for implementation is December 2017 and the worst case date is March 2033.

The report can be found via this link: http://www.europarl.europa.eu/committees/en/studiesdownload.html?languageDocument=EN&file=67371

JCCC Newsletter February 2012

Grosvenor International Systems Ltd — 2012-02-24T09:13:53+01:00

The latest JCCC Customs Newsletter has been published and is attached.

Union Customs Code

Grosvenor International Systems Ltd — 2012-02-23T08:14:12+01:00

MCC Redraft - Union Customs Code

Grosvenor International Systems Ltd — 2012-02-21T14:08:49+01:00

The EU Commission has published a draft recast Modernised Customs Code called the Union Customs Code.

The document can be found via the following link: http://ec.europa.eu/taxation_customs/resources/documents/common/legislation/proposals/customs/com(2012)64_en.pdf

Essentially it has been drafted with a view to amending the MCC to take account of the fact that the June 2013 deadline for the implementation of the MCCIP is unachievable, to take account of the Lisbon Treaty and to adjust certain clauses that have proved - following consultation - difficult to implement. The key deadline for the implementation (particularly in respect of the required IT systems) is 31/12/2020.

WTO Agrees to EU/Pakistan Duty Reduction

Grosvenor International Systems Ltd — 2012-02-02T15:33:15+01:00

Please see the attached link in respect of a recent WTO decision: http://www.dawn.com/2012/02/02/wto-approves-eu-package-for-pakistan.html

MCCIP Negotiations

Grosvenor International Systems Ltd — 2012-01-25T09:00:30+01:00

The attached CIP from HMRC seeks to update us on the current MCCIP negotiations and indeed contains links to the current draft legislation. What it does not do is place this into the context of the EU Parliament document published in December 2012 - we have asked HMRC for a comment and are awaiting a reply.

MCCIP Postponement - EU Parliament Votes

Grosvenor International Systems Ltd — 2011-12-08T08:08:42+01:00

It appear that the vote of the European Parliament in respect of the postponement of the implementation of the MCCIP on the 1st December 2011 was in favour. They appear to be asking the Commission to redraft the MCCIP for a go-live in 2016.

The text adopted by Parliament can be found via this link:

http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-2011-0546&language=EN&ring=A7-2011-0406

Some of the key points of the text are:

(The EU Parliament)

"Calls on the Commission to provide by June 2012 a report to the European Parliament on the current status of compliance by the Member States with the EU customs legislation, including an action plan to address any shortcomings identified; considers that the industry should be consulted by the Commission when performing this task"

"Highlights the need for trade to have access to proper specifications by the Member States well in advance, as businesses also need time to develop and implement their own IT applications; stresses, in this regard, that the technical and financial capabilities of national administrations and economic operators in deploying new systems must be taken into account in setting the new deadline for the application of the MCC;"

"Recognises that the postponement of the application of the MCC is appropriate; calls on the Commission, in cooperation with the Member States and taking into account the difficulties experienced, mainly in relation to the development of IT systems, to explore the possibilities of considering 2016 as a new deadline for the uniform implementation of the MCC – directly linking such a postponement to the necessary safety guarantees;"

"Strongly supports the concept of centralised clearance depending utterly on the appropriate IT systems, which is one of the principal aspects of modernised customs as conceived in the MCC, and regrets the lack of progress in the implementation of this concept; underlines the central role that customs should have in the centralised clearance procedure;"

"Calls on the Member States to commit themselves fully to the concept of centralised clearance, as only truly harmonised customs rules, information exchange systems and data formats can ensure its successful implementation;"

"Calls on the Commission and the Member States to improve service quality in relation to economic operators and other persons and to reduce the administrative burdens on them; supports the Commission's efforts to encourage traders across the EU to apply for AEO status; is concerned, however, that considerable investments necessary to obtain AEO status might be a serious obstacle for traders, especially SMEs; calls on the Commission to consider simplifying the procedure for applying for AEO status;"

"Calls for maintenance of the existing provisions concerning sale for export and the inclusion of certain royalties and license fees in the customs value, as unwarranted changes to these provisions will result in a higher customs value and thus a higher tax burden;" THE RETENTION OF FIRST SALE VALUATION

Procedurally, the text needs to be ratified by the Council

MCCIP Postponement - Vote Due on 1/12/2011

Grosvenor International Systems Ltd — 2011-11-24T10:35:58+01:00

It appears that the European Parliamant will be voting on a proposal to postpone the introduction of the MCCIP (due to occur in June 2013) and allow for a more phased implementation. The vote is due to take place on the 1/12/2011 - please see the attached link:

http://www.europarl.europa.eu/oeil/file.jsp?id=5912682

The proposal document itself is attached to this news item.

Customs JCCC Newsletter October 2011

Grosvenor International Systems Ltd — 2011-11-21T13:20:10+01:00

The HMRC JCCC Newsletter for August to October 2011 is available via the link below.

EU Commission Announces FISCUS Program - MCCIP Saviour?

Grosvenor International Systems Ltd — 2011-11-09T16:06:43+01:00

The EU Commission has today announced the FISCUS Tax and Customs Program. It is a 7 year program running from January 2014. It appears to be focused on improving efficiencies and supporting IT infrastructure enhancements - Could this be the saviour of the (currently stalled) MCCIP?

Details from the Commission are below:

Taxation and Customs: Delivering to Member States, citizens and businesses post-2014

Brussels, 09 November 2011 – EU Customs and Taxation policy make a substantial contribution in helping to raise revenues for the EU and Member States' budgets every year. In addition, these policies deliver considerable benefits to EU citizens and business, whether it is through blocking unsafe or illegal imports, facilitating smooth trade and a strong Internal Market, or cutting compliance costs and red tape for cross-border companies.

In order to build on this work and be fully equipped to meet future challenges in these fields, the European Commission today adopted a proposal for the FISCUS programme. With a budget of 777.6 million euro, the programme will run for 7 years from January 1 2014.

Algirdas Šemeta, Commissioner for Taxation, Customs, Anti-fraud and Audit, said: "This new programme reflects our ambitions for taxation and customs in the years ahead. Through FISCUS, the EU will continue to protect our citizens, businesses and budgets, while improving our capacity to meet new challenges that may lie ahead."

FISCUS will support the cooperation between customs and tax authorities and other parties, to help maximise their efficiency and avoid mismatches in their work, which could hinder the Internal Market. The programme also provides the possibility of country-specific assistance when particular challenges call for it. It will facilitate networking, joint actions and training amongst tax and customs personnel, while also funding cutting-edge IT systems to enable the development of fully fledged e-administrations in customs and tax. By relying on shared development of IT, every euro spent jointly can generate cost-savings of at least four times as much for Member States.

The objectives of FISCUS are to protect the financial interests of the EU and Member States, facilitate trade, ensure the safety and security of EU citizens, improve the capacities of customs and tax authorities, and implement EU legislation in these fields. Having assessed the challenges for the years ahead, the Commission proposes that particular focus is also given to fighting fraud, reducing administrative burdens and cooperating with third countries.

FISCUS will also contribute to the EU's broader objectives by strengthening the Internal Market and the Customs Union, promoting growth and innovation by protecting intellectual property rights at the borders, and contributing to the development of a digital Internal Market.

Background

FISCUS merges the current two separate programmes for taxation and customs into one, thereby meeting simplification and cost-cutting goals of the Commission without compromising the activities in these individual areas.

Next steps

The draft Regulation will now be discussed by the Council and the European Parliament, with a view to adoption by the end of 2012, so that the new programme can start on 1 January 2014.

Negotiations on the Multiannual Financial Framework for the whole EU budget will continue in parallel. (MEMO/11/468)

For more information on FISCUS, see: MEMO/11/767

For the legislative text, see:

http://ec.europa.eu/taxation_customs/customs/cooperation_programmes/fiscus/index_en.htm

http://ec.europa.eu/taxation_customs/taxation/tax_cooperation/fiscalis_programme/fiscus/index_en.htm

VAT Free Sales from Channel Islands to end

Grosvenor International Systems Ltd — 2011-11-09T08:47:54+01:00

The ability of internet etc retailers to dispatch low value goods from the Channel Islands to the UK, VAT free, is said to end in April 2012.

The relief, known as Low Value Consignment Relief (LVCR), allows sales of below £15 (it was £18 up until the beginning of this month) being consigned from the Channel Islands, to be undertaken without a charge to VAT.

The relief worked well for e-tailers because of the geographic position of the Channel Islands and their peculiar position of being within the Customs but not VAT territory of the EU.

2012 Combined Nomenclature Correlation Tables

Grosvenor International Systems Ltd — 2011-11-08T12:13:28+01:00

2011 to 2012 CN Correlation Tables are accesible via the following link:

https://www.uktradeinfo.com/index.cfm?task=correlation

2012 Combined Nomenclature

Grosvenor International Systems Ltd — 2011-11-02T08:53:50+01:00

The EU Commission has published the CN for 2012 - it is this regulation that forms the basis of the Tariff.

The regulation is available via this link:

http://eur-lex.europa.eu/JOHtml.do?uri=OJ:L:2011:282:SOM:EN:HTML

Export Best Practice Guide

Grosvenor International Systems Ltd — 2011-10-21T14:42:57+01:00

HMRC have published their "Export Best Practice Guide" in an attempt to help increase compliance levels in respect of exports from the UK. A copy is attached.

Export - Non Compliance

Grosvenor International Systems Ltd — 2011-10-20T07:01:40+01:00

HMRC have published the attached CIP to publicise the issue of non-compliance with Export procedures. In addition, an Export Best Practice Guide will also be published (as soon as it is published we will attach a copy to our news page). Non compliance with export procedures was one of the main reasons for the introduction of NES - it is interesting to see that within certain areas of the exporting community, responsibilities are still being ignored.

Textile DPO Relaxation - An Update

Grosvenor International Systems Ltd — 2011-10-13T15:12:41+01:00

HMRC have confirmed that the relaxation applies to imports from all countries.

Textile DPO Relaxation

Grosvenor International Systems Ltd — 2011-10-13T07:13:26+01:00

HMRC have issued the attached CIP which confirms that the requirement for Textile Documentary Proofs of Origin (non-preferential) will be relaxed from midnight 23rd October 2011.

Unfortunately, it does not provide any additional detail.

We understand however that CHIEF is coded not to result in a failure if a DPO is declared but not required - this will no doubt be welcome news to Customs Warehouse operators who may have DPOs assigned to Customs Warehouse stock within their Duty Management/Reporting software.

Textile DPO Requirements

Grosvenor International Systems Ltd — 2011-10-10T07:04:54+01:00

HMRC and BIS have told us that guidance in respect of the DPO requirement relaxation will be issued this week - we will publicise the guidance as soon as we receive it.

DPO Requirement For Most Textiles To Be Relaxed

Grosvenor International Systems Ltd — 2011-10-06T14:13:03+01:00

The requirement to present a Documentary Proof Of Origin is to be relaxed for most textiles imported into the EU - this change does not effect Preferential Rules of Origin.

The attached regulation describes the relaxation that should come into force on the 24th October 2011.

We are in contact with bothe HMRC and BIS to see how the change is to be managed.

Korean Approved Exporter Database

Grosvenor International Systems Ltd — 2011-09-26T07:20:05+01:00

The EU/South Korea Preference agreement allows for the designation of approved exporters. Customs in Korea have introduced a website that allows EU importers to search on the validity of any Approved Exporter status claimed by a Korean supplier.

The website page can be found via this link: http://english.customs.go.kr/kcsweb/user.tdf?a=user.approvedexporter.ApprovedExporterApp&c=9001&mc=ENGLISH_INFORMATION_APPROVED

The attached CIP (11/83) provides additional details. (CIP (11)67 has been included for additional background information)

EU Commission Revamp SASP/Centralised Clearance Web Page

Grosvenor International Systems Ltd — 2011-09-21T15:44:09+01:00

The EU Commission has announced a revamp of their SASP/Centralised Clearance web page - the page can be found via this link:

http://ec.europa.eu/taxation_customs/customs/procedural_aspects/general/centralised_clearance/index_en.htm

Happily, we have 4 of the 6 or so UK based SASPs using our Ricardo system.

Inward Processing Bill of Discharge

Grosvenor International Systems Ltd — 2011-09-21T07:10:32+01:00

A new CIP has been published to remind users of Inward Processing (which used to be known as Inward Processing Relief) of the need to complete a Bill of Discharge (C&E 812) at the end of their throughput period. The CIP is attached to this news item.