Important Notice for Importers, Exporters, Customs Agents and Other AEP Users

Important Notice for importers, exporters, customs agents and other AEP users

(1)

Changes to Revenue’s Automated Entry Processing

(AEP) System with effect from 1 July 2009

(2)

The introduction of the Economic Operator

Registration and Identification (EORI) System with effect from 1 July 2009

(3)

Preliminary information on the introduction of the Import Control System (ICS) in January 2010

Customs Notice Number 02/09January 2009
PART 1 – Overview

1.Introduction

The primary purpose of this Notice is to advise all importers, exporters, customs agents, freight forwarders and any other persons involved in the import or export of goods of important changes that will take place from 1 July 2009. In addition, it provides some initial information on the introduction of the Import Control System (ICS) in January 2010.

The July 2009 changes arise from new requirements at EU level concerning the identification and checking of consignments for safety and security reasons. In summary, there will be:

• Changes to the AEP system, and

• The establishment of a European Union wide Economic Operators Registration and Identification (EORI) system.

The information contained in this Notice is intended to outline to all parties involved in the import or export of goods what they will be required to do in order to ensure that they do not encounter any difficulty in importing or exporting goods from 1 July 2009. Part 2 of this Notice outlines the main changes to AEP, Part 3 contains details of the EORI system and Part 4 contains some initial information on ICS.

2.Effect of AEP changes on Traders

The changes to the AEP system outlined in this Notice will come into effect on 1 July 2009. It is imperative that all traders who interact with AEP take the necessary steps over the coming months to ensure that they will be able to continue to lodge import and export declarations (Single Administrative Documents – SADs) to AEP from that date.

Traders whose systems have not been adapted to cater for the new requirements will not be able to lodge declarations with AEP from that date and this may result in delays in the clearance of goods.

3.Effect of EORI system on Traders

The EORI system is a new European Union wide system, being introduced in all 27 Member States, whereby each trader involved in the import/export of goods must use a unique identifying number. This number must be used by traders in all customs declarations lodged by them or on their behalf, with effect from 1 July 2009.

In order to facilitate traders, Revenue has decided to align the EORI number to the VAT number to avoid a situation whereby traders would need to make significant adjustments to their own internal systems. Any importers or exporters who are not required to be registered for VAT will be allocated an EORI number which will be used for customs declaration purposes only. Part 3 of this Notice outlines further details of the EORI system.

4.Assistance required/queries

Revenue is taking appropriate steps to try and minimise the impact of these changes but emphasises that it is important for importers and exporters to plan ahead for the changes. Any queries, comments and/or questions on the AEP and EORI changes from 1 July 2009, or the introduction of ICS from January 2010, can be emailed to or contact Alice Magee at 01 – 6330805 or fax 01 - 6330692.

PART 2 – AEP Changes

5.Background to the AEP Changes

On foot of EU legislation which is being implemented in all 27 Member States, traders will, from 1 July 2009, be required to provide Irish Customs with additional and advance information in respect of all goods being exported. This information will be provided on an expanded version of the current export SAD declaration. This additional information is required to allow for the identification and checking of consignments for safety and security reasons.

The changes being brought about by the introduction of this system (referred to at EU level as the Export Control System Phase 2), primarily impact on export SAD declarations, but in order to keep the import and export systems aligned, certain changes will also arise for the lodgement of import SAD declarations from 1 July 2009.

6.Main Changes to AEP from 1 July 2009

The AEP changes from 1 July 2009 relate primarily to the additional data required at export but as previously indicated, it is important to note that import SADs will also be affected. All current traders will have to upgrade their software to take account of the AEP changes in relation to additional/changed data elements and also to take account of the new range of messages that will be issued by the AEP system.

a)Main changes common to both Import and Export SADs

• Traders will be required to use EORI numbers assigned to them on all import and export declarations from 1 July 2009 (see Part 3).
• Container Number and Invoice details will be required at item level rather than header level as has been the case up to now.
• A message containing the full SAD details will be sent back to the declarant.

b)Main Changes at Export

• The export SAD will be expanded to cater for additional data elements that declarants will be required to submit, except in the following cases:
• Goods being exported to Norway, Switzerland or Liechtenstein;
• Customs warehousing of goods for export; or
• Goods being exported to the non-fiscal territories of the Community.[1]

In these cases the data provided on current export SADs will be sufficient.

• All export declarations will be required to be submitted electronically and in sufficient time in advance of the export of the goods.
• All indirect exports, i.e. where goods exit the Community via another Member State and where they are not moving under a Single Transport Contract, will be processed under the Export Control System Phase 1 (see below).
• Customs Input of export declarations (i.e. manual export declarations) will no longer be possible.
• All export declarations (with the limited exceptions indicated in the first bullet point above) will be risk analysed for safety and security purposes and will be liable to be selected for control. In this regard, while every effort will be made to minimise the impact on trade flows, exporters will nevertheless need to factor into their processes the possibility that goods being exported could be selected for control and possible examination by Customs.

c)Export Control System Phase 1 (ECS P1)

ECS P1 essentially provides, in relation to indirect exports, for the replacement of the SAD Copy 3 by an Export Accompanying Document (EAD). An indirect export is one where the goods are exported from one Member State and exit from the EU via another Member State. This system will be mandatory throughout the EU for the indirect export of goods from 1 July 2009. It should be noted however that it will only apply to indirect exports - goods being exported directly from the Community, or moving under a Single Transport Contract, will not be affected.

The system will work in the following manner:

Where export SAD declarations are submitted to AEP in which Box 29 shows the Office of Exit[2] to be in another Member State, the movement will be automatically processed though ECS P1. On receipt of clearance from AEP, the declarant should print the EAD and the EAD should accompany the goods on their movement to the other Member State. The Customs Office of Export will also send a message to the Office of Exit that the goods are on their way.

On arrival of the goods at the Office of Exit, the EAD should be presented to Customs by the declarant or agent working on his behalf. This will allow Customs in the Office of Exit to confirm exit of the goods from the Community and also to inform the Office of Export in Ireland that exit has been confirmed. Subsequently, the declarant in Ireland will receive a further message from AEP confirming exit of the goods from the EU.

7.Current position

The appropriate technical specifications and message formats for the AEP changes have been published on the Revenue website and provided to all relevant software providers. A revised AEP Trader Guide is also available on the website. This Trader Guide provides details of all the data elements and message requirements and the rules associated with each data element/message.

A Public Interface Testing environment will be available in early 2009 to enable software suppliers and their AEP customers to test upgraded systems. A nation wide programme of information seminars is also being put in place to inform importers/exporters, agents etc of the upcoming changes.

8.What do traders need to do?

There are two priority issues that traders need to consider:

a)The need to ensure that they can continue to lodge declarations with AEP from July 2009

Traders whose systems link directly into AEP will need to upgrade their systems in line with the specifications published on Revenue’s website. Traders who use an intermediary/agent to lodge declarations to AEP need to ensure the intermediary/agent upgrades their systems in line with the new specifications.

b)How will the July 2009 changes impact on the import/export of goods?

In relation to exports, all goods being exported will be subject to risk analysis and to possible control and examination. Where a consignment is controlled, Revenue will work with traders to ensure that the control check is carried out as expeditiously as possible. In certain cases (e.g. because of the nature of the goods) it may not be appropriate to carry out the control at the point of export. Traders with particular concerns regarding the post July 2009 control process should email the Helpdesk and outline those concerns.

Significant procedural changes in relation to imports will not arise here in Ireland on 1 July 2009 as, subject to certain transitional arrangements, the new ICS control system will not be introduced until January 2010. However, importers will need to be aware that some Member States will be introducing electronic systems for ICS from 1 July 2009 so it is important that importers (who import goods via other Member States) confirm with agents, carriers etc that they are aware of the new rules and are in a position to cater for them.

PART 3 – EORI system

9.Background to EORI system

The basic purpose of EORI is to establish a system whereby every trader who interacts with Customs Authorities in any Member State of the EU is allocated a unique reference number. This reference number will be valid throughout the EU and will serve as a common reference number for the trader’s interaction with the Customs Authorities of any Member State. The number will have to be used by traders in all import and export declarations with effect from 1 July 2009. It will also be used for the exchange of information between the Customs authorities of the EU, and where appropriate, between Customs and other authorities e.g. statistical authorities.

In order to minimise disruption to traders, Revenue has decided to align the EORI number to the VAT number to avoid a situation whereby traders would need to make significant adjustments to their own internal electronic systems.

10.How will EORI work?

The EORI system will have two separate and distinct elements to it, one at national or Member State level and one at EU level.

a)National EORI system

At national level, each Customs Authority will assign a unique identifying number (the EORI number) to each trader who interacts with Customs. Traders will be required to use this number in all customs declarations lodged by them or on their behalf, irrespective of the Member State in which those declarations are lodged.

In Ireland, any trader who has interacted with the AEP system since the introduction of AEP 2 in June 2007 will be automatically assigned an EORI number by Revenue. This number will be valid for use in all Member States. It will not be necessary for such traders to apply for an EORI number – Revenue will assign and issue this number to all relevant traders. It is intended that these numbers will be issued from April 2009 onwards.

b)Central EU EORI database

Revenue will be obliged to provide details to the European Commission of all those traders who have been assigned an EORI number. These details will be held on a central EU database maintained by the European Commission, which will also contain similar information provided by the other 26 Member States. Updates to Revenue’s national EORI database will be advised to the central EU database at regular intervals.

The central EU database will also have a public facing feature which will allow third parties to view certain limited details of all EORI registered traders (i.e. EORI number, name and address). This is primarily to facilitate a situation where the third party will be carrying out some customs activity (such as making a customs declaration) on behalf of a trader and needs to know the EORI number. However, access by a third party to the database will only be allowed in circumstances where a trader has given specific and informed written consent to publication of those details. Revenue will approach the matter on the basis that no information in relation to an Irish trader will be published unless the trader has specifically advised Revenue to the contrary.

11.Structure of EORI number

All Irish EORI numbers will be prefaced with the prefix IE. In line with the decision to align the EORI number with the VAT number, the vast majority of EORI numbers will be equivalent to the trader’s VAT number. This will mean that for the vast majority of traders, the EORI number that they will be inserting in import and export declarations will be exactly the same as their current VAT number.

For instance a trader with a VAT number IE 1234567 currently inserts “VAT 1234567” in customs declarations (the IE is not required).The position with effect from 1 July 2009 is that the trader will have been issued with an EORI number which is exactly the same as the current VAT number but, rather than insert “VAT 1234567” on the customs declaration, the trader will insert “IE 1234567”.

12.Use of EORI number in declarations

Currently traders normally quote either C & E numbers or VAT numbers on electronic declarations. The introduction of the EORI system may mean that they will need to upgrade their software to provide for the insertion of the EORI number rather than the numbers currently used. Software providers have already been advised of this requirement and detailed specifications for the various Customs applications are available on Revenue’s website.

The EORI number will have to be used in boxes 2, 8 and 14 of the SAD declaration. However, it should be noted that the EORI number will not replace the Accounting reference number (box 48) which governs the payment of duties and taxes.

It will no longer be possible for EORI registered traders, from 1 July 2009, to use any other Revenue number in boxes 2, 8 or 14 and declarations in which any other number is used in these boxes will be rejected.

13.Traders not currently using AEP

As previously indicated, all traders using AEP up to 1 July 2009 will be automatically assigned an EORI number to use from that date. Subsequently, any trader who wishes to import or export goods, will need to inform Revenue in advance of making the customs declaration in order to have an EORI number assigned. The process for doing so is currently being finalised but, at this stage, it is envisaged that this will be a simple process by way of email or phone contact.

14.Does a trader need to do anything about EORI now?

Revenue will be writing to all traders currently using the AEP system by the end of April 2009 with details of the EORI number being assigned. In the meantime it is recommended that each trader should review internal systems and discuss this matter with any clearance agent and/or software supplier who currently deals with import/export issues to make sure they are up to speed on the new EORI registration system.

PART 4 – Import Control System

15.Information on the Import Control System

In addition to the identification and checking of export consignments for safety reasons, the EU will also be introducing a similar system to cater for imports. This system is known as the Import Control System (ICS) and will provide for the lodging of Entry Summary Declarations on goods imported into Ireland where Ireland is the first point of entry into the EU.

At EU level, ICS is due to formally commence from 1 July 2009. However in many Member States an electronic declaration system will not be available until a later date. Revenue’s ICS system will be available from January 2010. Moreover, as part of a transitional arrangement, submission of electronic declarations will not be mandatory until 1 January 2011. In the transitional period from July 2009 to January 2011, Revenue will put interim arrangements in place with the relevant carriers and traders.

As one would expect, safety and security controls for imports will have to take place at the first point of entry into the Community. Accordingly here in Ireland ICS will only apply in respect of imported goods where Ireland is the first point of entry of those goods into the EU (i.e. direct imports from non EU countries which do not stop at a port/airport in any other Member State on their journey to Ireland). Indirect imports (ie those that are imported via another Member State and subsequently transported to Ireland) will be subject to the ICS controls at the first place of arrival in the EU.