Treatment of Export Simplifications under the Union Customs Code
Customs Information Paper 11(2016)
Who should read: /Traders who currently hold Local Clearance Procedure (LCP) and Simplified Declaration Procedure (SDP) authorisations.
What is it about: / UCC export simplifications for exporting goods out of the Union and HM Revenue and Customs (HMRC) national replacement for LCP.When effective: / 1 May 2016
Extant until/ Expires / Until further notice
1. Background
Following the adoption by the Commission of the Union Customs Code (UCC) Delegated Act and the publication of the final text of the Implementing Act (EU Regulations 2446/2015 and 2447/2015) this paper gives guidance on the major changes to export simplifications under the UCC which will take effect on the 1 May 2016.
2. Authorisations
Under current legislation (EU regulations 2913/92 and 2454/93) there are two export simplifications, the Local Clearance Procedure (LCP) and the Simplified Declaration Procedure (SDP). These are independent simplifications, but they can be used in conjunction with each other.
SDP continues under the UCC whilst LCP ceases after 1 May 2016.
A new export simplification becomes available under the UCC - Entry in Declarants Records (EIDR).
EIDR does not replace LCP for exports. HMRC have concerns that only a limited number of export traders may be able to use EIDR.
HMRC are implementing a new process called Customs Supervised Exports (CSE) to replace LCP.
3. General requirements for SDP under the UCC.
You may continue to use your current authorisation for SDP until it is re-assessed by HMRC or until 1 May 2019, whichever is earlier.
Under the UCC applicants applying for SDP must fulfil the following conditions for regular use of simplified declarations:
Applicant complies with criteria in Article 39(a) of UCC
Where applicable, applicant has satisfactory procedures in place for the handling of licences and authorisations granted in accordance with commercial policy measures or relating to trade in agricultural products;
Applicant ensures that relevant employees are instructed to inform the customs authorities whenever compliance difficulties are discovered and establishes procedures for informing the customs authorities of such difficulties;
Where applicable, the applicant has satisfactory procedures in place for the handling of import and export licences connected to prohibitions and restrictions, including measures to distinguish goods subject to the prohibitions or restrictions from other goods and to ensure compliance with those prohibitions and restrictions.
4. General Requirements for EIDR for Export and Re-export under UCC.
Under the UCC applicants applying for EIDR must fulfil the following Authorised Economic Operator (AEO) criteria specified in Articles 39(a) (b) and (d) of the UCC:
Customs and other tax compliance (related to the economic activities of the applicant);
Record-keeping standards
and
Practical standards of competence or professional qualifications.
An EIDR authorisation can only be granted where the following conditions apply:
Pre departure declaration is waived
Goods are a direct export.
Examples of goods eligible for EIDR are:
electrical energy
goods leaving by pipeline
spare parts for aircraft and vessels
provisions for aircraft and vessels.
The full list is detailed in Article 245 of the Delegated Regulation 2446/2015.
EIDR cannot be used for exporting excise goods, unless Article 30 of Directive 2008/118/EC is applicable.
EIDR cannot be used where a standardised exchange of information (INF) is required between customs authorities, for example inward processing and outward processing.
If you have an LCP authorisation that meets the EIDR conditions you can continue to use your current LCP authorisation until it is re-assessed by HMRC for EIDR or until 1 May 2019, whichever is earlier.
5. Customs Supervised Exports (CSE)
The UCC and current Community Customs Code (Reg. No. 2913/92), require that goods must be under customs supervision at the time they are placed in the export customs procedure.
Current LCP procedures enable HMRC to select goods for physical examination in the same way that such checks are made at a customs frontier location. We will therefore continue to allow appropriately authorised traders to declare goods to the export procedure at their premises under a new scheme called Customs Supervised Exports (CSE).
Initially, existing LCP traders will be deemed to meet criteria for CSE and can continue to declare goods for export at their premises, providing they continue to fulfil the terms of their current LCP authorisations.
The current arrangements for these businesses will continue without change on 1 May 2016.
Economic operators seeking to gain CSE that are not currently authorised will have to meet the following criteria to be aligned with Code compliance standards:
Applicant complies with criteria laid down in UCC Article 39(a) (b) (c) and (d)
Applicant has satisfactory procedures in place for handling licences and authorisations
Applicant ensures that there are procedures in place to inform customs authority of compliance irregularities.
HMRC will reassess existing LCP authorisations against the new criteria at a future date after the UCC comes into force.
Whilst CSE is a national scheme that replicates certain LCP procedures, in legal terms it is not LCP. Where other facilitations depend on references to LCP, these will not be available until the relevant legislation has been amended.
All UCC facilitations post 1 May 2016 will be detailed in the UCC legislation which will not refer to Customs Supervised Export (CSE) as it is a national application of the requirement to supervise goods.
6. Contacts.
Export and Transit policy-
Export Enquiries: NES helpdesk-
Issued on the 26 February 2016by Customs Directorate, HMRC.
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