Grosvenor International Systems Ltd - Latest news

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 — 2011-10-21T15:42:57+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 — 2011-10-20T08:01:40+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 — 2011-10-13T16:12:41+01:00

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

Textile DPO Relaxation

Grosvenor International Systems Ltd — 2011-10-13T08:13:26+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 — 2011-10-10T08:04:54+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 — 2011-10-06T15:13:03+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 — 2011-09-26T08:20:05+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 — 2011-09-21T16:44:09+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 — 2011-09-21T08:10:32+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.

HMRC IT Systems Availability

Grosvenor International Systems Ltd — 2011-09-16T12:47:59+01:00

The attached link provides details of HMRC IT systems availability:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageNoNavigation_ShowContent&id=HMCE_MIG_009921&propertyType=document#P3_11

GSP - Retrospective GSP Certficates

Grosvenor International Systems Ltd — 2011-09-14T17:09:34+01:00

The attached CIP details which version of the GSP rules of origin must be met when applying for retrospective GSP Certificates from issuing authorities.

This relates to products imported in late 2010, but released to free circulation in 2011 etc

Garment Hanger Classification - An Update!

Grosvenor International Systems Ltd — 2011-09-14T14:33:58+01:00

We have spoken to Classification policy people within HMRC about the Hanger Classification issue.

They will not be issuing any further guidance on the issue and do not believe that any increase in enforcement action will occur. What they have said is that where a hanger is clearly a more heavy weight "jacket" type hanger, they would expect that to be separately classified as being capable of re-use, as opposed to a "flimsy" hanger for shirts, which they would continue to deem to be part of the shirt (for classification purposes).

In addition, we also discussed hanging rails etc that are used within containers - their view is that if the rail is attached to the container whist in transit (bolts, lashings etc) then the rail is part of the container - if however, a rail is truly free standing (and it is not clear if any rails within containers are completely free standing), then they must be classified separately.

Garment Hanger Classification

Grosvenor International Systems Ltd — 2011-09-14T08:22:01+01:00

As some importers are aware, a customs duty reduction mechanism concerning the importation of hanging garments has been in operation for a number of months. The EU Commission has recently confirmed the absolute veracity of the process – However, like many of these processes, it is a double-edged sword.

The benefit hinges on the classification of hangers when imported with garments.

Based on the Commission opinion (which the attached CIP reproduces) an importer (even if they are not operating the particular duty benefit mechanism) cannot choose whether or not they want to separately classify any hangers used – if the hangers are, “on the basis of their objective characteristics” clearly suitable for repetitive use (and one would have to ask which types of hangers would not be suitable for repetitive use), they must be classified as hangers. So, if an importer is importing garments on hangers from say Bangladesh, where at the moment both garment and hanger would tend to be covered by a Preference and therefore a lower or zero rate of duty, under the current Commission thinking, the importer would now have to separately classify (and declare) the hanger, which no doubt would not be of Bangladeshi origin, and would have to pay full rate duty on it.

Additionally, regardless of any duty saving process, this change in classification policy will add some burden to importers unless they have an automated solution.

Although HMRC have issued the attached CIP, they have as yet provided no guidance on the subject.

If you have any questions, please contact us.

VAT Treatment of Buying Commission Charges

Grosvenor International Systems Ltd — 2011-09-12T13:40:18+01:00

This is a change in policy that was publicised in July of this year but "slipped through the net" - we are sorry for the late notification.

Essentially, the change outlined in the attached CIP is to do with UK VAT law.

Although Buying Commission is not dutiable and (if evidential requirements are met) should be excluded from the customs value, import VAT has traditionally been paid on the buying commission.

The change in the VAT treatment of services provided by an overseas supplier means that if the buying agent is outside the UK (and therefore does not charge UK VAT on their services) the supply for VAT purposes is deemed to have taken place in the UK. As the buying agent is not in the UK, the importer has to account for the relevant VAT in their VAT return – i.e. include it as a VAT charge in box 1 of the return and claim it back as input tax in box 4 of the same return.

Clearly, there is a cashflow advantage to be had, but at the cost of the admin requirement.

GSP Regulation Rollover

Grosvenor International Systems Ltd — 2011-09-09T09:36:47+01:00

The current GSP Regulation is due to expire on the 31/12/2011. As the EU Commission etc needs more time to consider a replacement, the regulation will continue to operate until the 31/12/2013 or until a replacement regulation is published, if sooner.

EU/South Korea Free Trade Agreement

Grosvenor International Systems Ltd — 2011-08-01T09:37:18+01:00

HMRC have published an additional document (attached) about the Approved Exporter scheme in respect of the EU/Korea FTA.

Details of the scheme can be found at: http://trade.ec.europa.eu/doclib/press/index.cfm?id=443

Modernised Customs Code - Update

Grosvenor International Systems Ltd — 2011-06-29T10:05:06+01:00

As can be seen on the Internet and within online Customs "chat groups", the current rumour is that the June 2013 "go live" date for the Modernised Customs Code Implementing Provisions (MCCIP) will be put back.

At a recent meeting with HMRC, we were able to learn a bit more about the current wrangling within the corridors of power.

A number of issues have caused the Member States to look at reviewing the MCCIP implementation date:

The current economic climate and the investment required in IT changes required within the MCCIP
Governance issues highlighted by the Lisbon Treaty (it appears that, as it stands, certain MCCIP provisions can be enacted by the Commission without review by the Member States)

The Member States recently voted on two options:

To enact the MCCIP in June 2013, minus ant IT related changes; or
Propose a new implementation date to the EU Parliament (which would also open the MCCIP up to amendment)

Option 2 was voted for. Currently 170 individual issues have been raised in respect of the MCCIP which are being reviewed by the Member States in advance of them approaching the EU Parliament to request a amendment to the implementation date. The current timetable aims at October this year to present the request to Parliament.

Parliament will then have two options open:

Reject the request and force the implementation in June 2013; or
Accept the request.

At the moment, the personal view of committee attendees is that a postponement will be allowed (although this is not guaranteed). As for timescale, 2017 or even 2020 have been mooted. We will keep you updated.

New Combined Nomenclature Explanatory Notes Published

Grosvenor International Systems Ltd — 2011-05-10T16:20:12+01:00

The EU Commission has today announced the publication of a new consolidated version of the Explanatory Notes to the Combined Nomenclature.

The "Explanatory Notes" are a key reference work for anyone wishing to classify imported or exported products.

Please follow this link for the latest version: http://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2011:137:SOM:EN:HTML

Set Top Box Classification Ruling

Grosvenor International Systems Ltd — 2011-04-15T17:01:26+01:00

Following on from a UK Duties Tribunal case, the European Court of Justice issued a classification ruling yesterday in respect of Set Top Boxes.

The case, brought by B Sky B and Pace, revolves around set top boxes with both recording and communications functionality.

In the past, such boxes were classified as "Video Reproducing Apparatus" with a duty rate of 13.9%.

These types of Set Top Boxes have been ruled by the ECJ to be proper to a heading that covers “Apparatus with a microprocessor-based device incorporating a modem for gaining access to the internet, and having a function of interactive information exchange, capable of receiving television signals” with a duty rate of 0%.

This clearly opens to opprtunity for importers of such boxes to recover overpaid duty going back 3 years.

Please contact us if you wish to discuss the potential in any detail.

Customs On-Line Enquiry Form

Grosvenor International Systems Ltd — 2011-04-08T15:04:13+01:00

HMRC have announced that written enquiries in respect of various Customs and Excise matters must be processed via an on-line form. The attached CIP provides further details.

Irregularities In Temporary Storage

Grosvenor International Systems Ltd — 2011-03-23T18:42:39+01:00

HMRC have issued the attached CIP in respect of Temporary Storage. The core issue can be detiled from the following extract:

"......it has been brought to HMRC’s attention that some Temporary Storage Operators are creating arrival records and / or clearing goods before the goods physically arrive at the designated Temporary Storage facility, thereby undertaking an illegal movement of goods"

The CIP details conditions surrounding Temporary Storage.