European Customs & Trade Communiqué - Verification of authorisations to use simplified customs procedures

Amended provisions to the Implementing Regulation of the Community Customs Code have introduced, as from 1 January 2009, an obligation for the customs authorities of European Union member states to verify all authorisations to use simplified customs procedures which were issued in the Community until the end of 2008.

For current holders of such authorisations, this may mean the loss of the possibility to benefit from such simplified procedures. The customs authorities will examine whether the current holder of the authorisation fulfills all, including new, much stricter criteria, required to benefit from the procedures.
 
Subjective criteria for simplified customs procedures
Generally, the conditions which must be met by the company in order to retain the authorisation will depend on the form of the authorisation held.
 
With respect to the most common form of the authorisation to use simplified customs procedures, i.e. local clearance procedure, the criteria are almost the same as for Authorised Economic Operator (AEO) authorisations.
 
Considering the above, the company will be obliged to prove:

• compliance with customs requirements by management and those responsible for the company’s customs issues;
• the existence of a system for management of trade records (including transport records), which enables relevant customs control. Management systems should allow for the logistic distinction of community and non-community goods, relevant data archiving, protection against unauthorised use etc.;
• documented solvency for the previous three years or from the commencement of the economic activity if this period is less than three years.

Deadlines for verification of the authorisation
Community provisions give the customs authorities three years for verification of all authorisations to use simplified customs procedures issued in Community member states. Thus, the process of verification must be completed by the end of 2011. However, this does not mean that holders of authorisations for simplified procedures may continue to use them for the entire three year period. Customs authorities in EU member states have already started verifying issued authorisations.
 
This means that holders who do not fulfill this new, much stricter criteria, may have their authorisations withdrawn in the near future. This may result in significant difficulties in the company’s economic activity and increase the costs of customs formalities for the company. Bearing in mind the potentially negative consequences of the loss of the authorisation, it is crucial to properly prepare for the abovementioned process of verification.

Other items in this Communiqué
This issue of the European Customs & Trade Communiqué also contains the following items:

• New requirements under revised EU Export Control Rules
• Electronic Customs Export Declarations from 1 July 2009
• Judgment of the ECJ (in a preliminary ruling) concerning the extinction of customs debt (case C-459/07)
• Free Trade Talks between the EU & South Korea
• Products made from stainless steel – no antidumping measures will be implemented
• Other antidumping updates
• News in brief
• Other Network Bulletins

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