This document summarizes a webinar on the draft implementing provisions for the Union Customs Code (UCC). The speakers were Jennifer Revis of Baker & McKenzie and Peter Starling from UK customs authorities. Negotiations on the implementing provisions are ongoing and will establish rules for centralised clearance, self-assessment, guarantees for duty, and temporary storage. Trade input is needed on the draft proposals to shape what the new rules will be. The implementing provisions must be agreed by the end of 2014 for changes to start being phased in from 2016 to 2020.

1. EU Anti-Bribery, Trade and Customs Webinar Series
2014
Union Customs Code: What to expect from the draft
implementing provisions and how to take part in the
negotiations
27 February 2014
Jennifer Revis, Of Counsel, Baker & McKenzie, London
Peter Starling, Senior Policy Advisor, UK Lead to UCC
negotiations
Baker & McKenzie LLP is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology
used in professional service organisations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an
office of any such law firm.
© 2014 Baker & McKenzie LLP

2. Speakers

3. Moderator
Speakers
Jennifer is Of Counsel in the EU, Competition and Trade Practice of Baker & McKenzie's London Office. She
specialises in customs, trade sanctions and anti-bribery and corruption matters. Jennifer has extensive
experience in advising clients on compliance issues (including third party due diligence and in M&A
transactions). Jennifer routinely undertakes compliance audits for clients and advises on preparation of
voluntary disclosures to government authorities. Jennifer has been on secondment to the UK customs
authorities (Her Majesty's Revenue and Customs) in their Tax and Excise Litigation department and to the
firm's European Law Centre in Brussels. Jennifer is a member of the London office Anti-Bribery and
Corruption Unit. Jennifer is frequently invited to speak at external conferences on trade matters and regularly
contributes articles to tax journals.
3
Baker & McKenzie were ranked Tier 1 for Customs & Excise in Legal 500 (2013).
Jennifer Revis
Of Counsel, London
Tel: +44 20 7919 1381
jennifer.revis@bakermckenzie.com
Peter Starling
Senior Policy Advisor, UK Lead to UCC
negotiations
100 Parliament Street
London
SW1A 2BQ
international.documents@hmrc.gsi.gov.uk

4. UNION CUSTOMS CODE (UCC)
What is complete & What is still to do

5. Work already completed
Revision and replacement of the Modernised Customs Code (MCC)
• Negotiations are complete
• UCC published - Regulation 952/2013
• entered into legal force on 30 October 2013 (but only to allow negotiations)
• Operative date for changes to procedures – 1 June 2016 earliest
• Changes will be phased in from 1 June 2016 to 31 December 2020

6. Key Points
Centralised Clearance
Self Assessment
Guarantees for Duty
Temporary Storage – movements inland and between Member States
Simplifications/facilitations to be retained

7. Work still to do:
The UCC is high level framework legislation
• Details will be included in the Commission Regulations
• Negotiations got underway in earnest earlier this month
The Commission Regulations will be formed of:
• Delegated Acts (DAs) – which are not subject to any vote by the member
states, and which establish “what” has to be done
• Implementing Acts (IAs) – typically subject to a vote by the member states,
and which establish “how” it is to be done
Four main Commission Regulations to agree:
• IA on the “work programme” – what changes come in when;
• “Final” DA and “general “IA” – what all the rules will be in the end.
• “Transitional” DA – what happens between May 2016 and when changes
come in

8. What will the Commission Acts specify:
Whether an authorisation is required; and if so
• how a trader applies, how Customs process applications and grant
authorisations
• Thus whether the requirements are different to now
All the detail on temporary storage, for example
• What records the trader needs to hold, and how, and where
How Centralised Clearance and Self Assessment will work

9. Size of the task on hand:
UCC contains 288 Articles
• Quite a lot was “stable” from earlier MCC negotiations
• Still took a year, with meetings most weeks, including week-long meetings
The Commission Acts are likely to be
• “Final DA and “general” IA – 800 Articles plus, and 100 plus Annexes –
basically the size of the existing IPs
• “Transitional” DA – possibly as much again
• “Work Programme” IA – happily short in Articles!
Commission Acts will also generate
• EU Guidelines on what the law means.

10. Timescales
This year:
• 13 January – The Commission’s proposed text was issued
• 10 - 14 February – Negotiations began on the IAs and DAs (monthly, week-long
meetings with possibly extra “expert meetings” as well; continuing
through the year). Meetings with member states scheduled for the second
week of each month.
• Commission have also scheduled meetings with the “Trade Contact Group”
• To focus discussion in those meetings, Commission have produced a
timetable for member states and trade to provide written comments.

11. Timescales
2015
• The “final” DA and “general” IA should published by 1 May 2015 – that’s the
aim. To do this, they have to be agreed by the end of this year.
• Once those are agreed, attention moves to the “transition” DA.
2016: UCC, the “transitional” and “final” DA and the “general” IA enters into force
• We may well have to agree some further “specific” IAs covering, for example,
exemptions from use of IT systems.
Beyond 2016:
• Changes delivered on a transitional timetable (set in the work programme)
until end 2020

12. Main Elements of the UCC
Implementing and Delegated Acts (IAs and DAs)
Centralised Clearance
Self Assessment
Guarantees for Duty
Temporary Storage
Simplifications

13. Implementing Acts
Similar to current implementing provision process
EU Commission makes a proposal
Discussed within Customs Code Committee
Formal vote

14. Delegated Acts
No mandatory consultation with MS or other experts
But the Commission are consulting
Some recourse to EU Council and/or European Parliament

15. Centralised Clearance (CC)
Differing views across the EU about what CC should look like
IT developments will be necessary
We don’t expect it to be introduced before the end of transition – end 2020
Operator MUST be an AEO (c)

16. Self Assessment (SA)
Operator MUST be an AEO (c) to use SA
• (note – this is where the replacement for the single transport contract at
export appears)

17. Guarantees for Duty
A guarantee will be mandatory for all Special Procedures authorisations
Also for Temporary Storage authorisations
Waivers available where the AEO criteria is met
Duty deferment – guarantee will be able to be reduced for AEO(c) traders
• 30% is proposed.

18. Temporary Storage
Will operate much as now – that is the plan
Can use commercial records, manifests and port systems
Major change – goods can move inland and between MS under TS control

19. Simplifications
For example
Single Transport Contract (export) – under SA
Level II simplifications (transit)
BUT – no proposal from the Commission regarding valuation / earlier sales

20. What do you need to do now?
Trade input will be vital
Look at what you want (and don’t want) in the draft IAs and DAs
Talk to trade associations, Commission, MEPs, and of course us
Where AEO criteria needs to be met (or you need to be an AEO) – look now
Don’t wait for the last minute rush

21. Thank you
Pete Starling
100 Parliament Street
London
SW1A 2BQ
international.documents@hmrc.gsi.gov.uk

22. 22
Questions?

23. EU Anti-Bribery, Trade and Customs Webinar Series
2014
Union Customs Code: What to expect from the draft
implementing provisions and how to take part in the
negotiations
27 February 2014
jennifer.revis@bakermckenzie.com
international.documents@hmrc.gsi.gov.uk
The webinar recording for this presentation is available here:
http://www.bakermckenzie.com/WBTCEUCustomsWebinarSeries/
Baker & McKenzie LLP is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology
used in professional service organisations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an
office of any such law firm.
© 2014 Baker & McKenzie LLP