Special Procedures under the Union Customs Code (UCC) - Customs Procedure Codes (CPCs)

Transcription

1 Special Procedures under the Union Customs Code (UCC) - Customs Procedure Codes (CPCs) Customs Information Paper 06 (2016) Who should read: Anyone using Customs Special Procedures after 1 May 2016 What is it about: Changes to CPCs and UK Tariff CPC notes from 1 May 2016 When effective: 1 May 2016 Extant until/ Expires Until further notice 1. Background Customs Information Paper 44 (2015) supplied guidance on the major changes to special procedures expected when the Union Customs Code (UCC) is implemented on 1 May This Customs Information Paper (CIP) provides additional information on the impact the UCC will have on specific CPCs and UK Tariff CPC notes that support those codes. Many of CPCs used for the import, export and discharge of special procedures will remain unchanged but this CIP explains some of the more significant changes to existing CPCs and identifies some new CPCs which will be set up. 2. Details of CPC changes All CPCs relating to the entry of goods to both Processing Under Customs Control (PCC) and Inward Processing Drawback (IPD) procedures will be deleted from the CHIEF (Customs Handling of Import and Export Freight system) and also from the UK Tariff from 1 May PCC discharge procedure CPCs in the series will also be deleted. This is because these two procedures will not exist under the UCC. However, the IPD export CPCs in the series will remain until December 2018 in order to permit discharge and reclaim for those traders with long throughput periods.

2 Additionally, substantial amendments will need to be made to existing Inward Processing (IP) CPCs , and One End Use import CPC ( ) will be reserved for persons holding an authorisation issued under the Community Customs Code (CCC) and two new IP CPCs will be set up F44 and F44. Details of the use of these amended and new CPCs under the UCC are outlined in the table below. CPC number CPC usage under UCC Further information UCC Customs procedure: Inward Processing Export CPC CPC was previously used for prior export equivalence (EX/IM) movements without an INF5 form. Under UCC it should no longer be used for EX/IM because an INF5 is now mandatory for all EX/IM movements (including those that take place solely within the UK). You should now use CPCs in the 11 series for EX/IM movements. Further information can be found in paragraphs 2.25 and 2.26 of the Special Procedures Notice UCC Customs procedure: Inward Processing Discharge CPC CPC is currently used to divert IP (suspension) goods entered under the CCC to free circulation using the duty rate of the original import goods. The revisions to the CPC notes in the Tariff are required to accommodate the discharge (from 1 May 2016) of Inward Processing under Article 85 of the Union Customs Code.(ex PCC method of discharge) Under this article, IP goods are declared to free circulation using the duty rate, value and quantity of the processed product rather than the original product imported to IP. The UCC removes the requirement to reexport goods entered to IP and allows for two methods of calculation of duties if goods are declared to free circulation at the end of processing. This CPC will be used for one method of calculation and a new CPC F44 will be created to cover the second method. Full details of the revised Tariff CPC notes are in the table in paragraph3. New CPC F44 This new IP CPC should be used where the processed products will be declared to free circulation using Article Full details of the new Tariff CPC notes are in the table in paragraph3.

3 UCC Customs procedure: Inward Processing Discharge CPC Customs procedure: End Use UCC Customs procedure: Inward Processing Import CPC New CPC F44 UCC Customs procedure: Inward Processing 86(3) of the Union Customs Code as the basis for valuation. Under this article, IP goods are declared to free circulation using the duty rate, value and quantity of the imported goods (rather than the processed goods for which CPC should be used).(current IP method) With effect from 1 May 2016 this CPC may only be used by current authorisation holders until the expiry of their CCC authorisation. The CPC covers goods imported to fulfil contracts with the Ministry of Defence (MOD) or the military forces of other Member States, on which duty relief is claimed under Council Regulation 150/2003 From 1 May 2016 IP authorisation holders will have to choose (at the time the goods are entered to the customs procedure) which method of duty calculation will be used on discharge. Where the processed products will be declared to free circulation using Article 85 of the Union Customs Code as the basis for valuation (duty rate, value, quantity of the processed goods) CPC should be used. Where the processed products will be declared to free circulation using Article 86(3) of the Union Customs Code as the basis for valuation (duty rate, value, quantity of the imported goods) Traders wishing to supply MoD after their CCC End Use authorisation expires are advised to obtain the appropriate UCC Inward Processing authorisation. For further information see Section 5 of Notice 3001 Annex C - Specific Use Full details of the amended Tariff CPC notes are in the table in paragraph 3. Full details of the amended Tariff CPC notes are in the table in paragraph3.

4 Import CPC (ex ) CPC F44 should be used to enter the goods to IP. Goods imported from outside the Union, without payment of customs duty or VAT under prior export equivalence (EX/IM) This CPC has just been renumbered 4. Detailed CPC notes for the UK Tariff. The CPC section of the UK Trade Tariff is now available electronically on the gov.uk website. The UK Tariff is a technical manual and the notes for the CPCs in the table below will help you complete a customs declaration on CHIEF. The new CPC notes will be available in both the paper and electronic versions of the UK Tariff from 1 May CPC revised CPC notes to permit discharge of IP using UCC Article 85 duty calculation CPC note heading Goods Covered CPC note text Goods initially entered to IP now being declared to free circulation using Article 85 of the Union Customs Code as the basis for valuation (rate, value, quantity of the processed product). Notice 3001 Specific Fields in the declaration/notes on completion Box 1: enter code IM followed by A or D as appropriate Box 40: enter previous document class Z, zzz and reference to the related import entry in the format EPU-Number-Date Box 44: enter the appropriate licence details (see Appendix C11 (of the Tariff)) and enter IP authorisation number Additional documents required Documentary evidence of the amount of duty suspended e.g. INF1 authenticated by the supervising office

5 Security required No security is required for tariff quota relief except where a claim to preferential rates or tariff quota cannot be substantiated from the supporting documents. Removal can be against the appropriate security outlined in paragraph of the UK Tariff. VAT Registered taxable persons Exempt persons Notes VAT must be paid if the goods are chargeable at a positive rate and details will be included on the VAT certificate. VAT must be paid if the goods are chargeable at a positive rate. The declaration must be in the terms of the processed goods If you are authorized or have requested permission and been approved to declare the goods at the time of first entry in the EU under Article 86(3) of the Union Customs Code, you should use CPC F44. If the goods first entered the EU in another Member State you should use the INF1 to provide the necessary information. CPC F44 new CPC notes to permit discharge of IP using UCC Article 86(3) duty calculation. CPC note heading Goods Covered CPC note text Goods initially entered to IP now being declared to free circulation using article 86(3) of the Union Customs Code as the basis for valuation (rate, value, quantity of the imported goods). Notice 3001 Specific Fields in the declaration/notes on completion Box 1: enter code IM followed by A or D as appropriate Box 40: enter previous document class Z, zzz and reference to the related import entry in the format EPU-Number-Date Box 44 enter:

6 the appropriate license details (see Appendix C11 (of the Tariff)) and IP authorisation number Additional documents required Security required Documentary evidence of the amount of duty suspended e.g. INF1 authenticated by the supervising office No security is required for tariff quota relief except where a claim to preferential rates or tariff quota cannot be substantiated from the supporting documents. Removal can be against the appropriate security outlined in paragraph of the UK Tariff. VAT Registered taxable persons Exempt persons Notes VAT must be paid if the goods are chargeable at a positive rate and details will be included on the VAT certificate. VAT must be paid if the goods are chargeable at a positive rate. The declaration must be in the terms of the imported goods If you are authorised to declare the processed products to free circulation under UCC Article 85 you should use CPC CPC revised CPC notes goods entered to IP for discharge under Article 85 CPC note heading Goods Covered CPC note text Goods being entered to IP by either; the holder of a full or authorisation involving more than one Member State issued under economic codes 1,2,3,4,5,9,10,11,12,13,14,15,16,17,18,19,20,21,22 Goods being entered without payment of customs duty, equivalent goods having previously been exported using prior export equivalence/prior import equivalence. Where the processed products will be declared to free circulation using Article 85 of the Union Customs

7 Code as the basis for valuation. (rate, value, quantity of the processed goods) Notice 3001 Specific Fields in the Box 1: enter code IM followed by A, D, Y or Z as declaration/notes on appropriate. completion Box 44 enter: Document identifier C601 IP authorisation number Do not enter a document status code Authorisation holders reference number as a GEN 45 AI statement (if any) Enter the appropriate licence details see Appendix C10 Details of the guarantee reference number as an AI statement- GRNTR Box 47: Where the goods are subject to Climate Change Levy (tax type code 990) a tax line must be completed but no levy is payable. Use override code EXD in Box 47c and enter the amount payable as 0.00 in Box 47d Box 47e: if security is not required do not enter an MP code. Security required Security may be required to ensure conditions and obligations of the relief will be met. The supervising office will state in the authorisation or notify the holder if security is required. If security is required a valuation statement will be needed, see the Tariff Volume 1 Part 14 for further information. Where required, security must be by cash deposit or guarantee. In Box 47 enter MP code N, P, Q, S, T, U or V as appropriate. Where security is required enter document codes 9AID (Customs duties) and 9AIV (VAT) and show code UP in box 44. Where security is not required enter document codes 9AID (Customs duties) and 9AIV (VAT) and show code JP in box 44.

8 Additional information Box 44: enter the following statements in the additional information box: Declare the full name and address of the supervising Customs Office as a SPOFF statement VAT Post Clearance Action Notes Enquiries must be addressed to the supervising office whose address is in Box 44 This CPC must not be used for goods entered under an authorisation by declaration (see CPC ) Use of this CPC constitutes a declaration by the importer that the conditions laid down in Council Regulation 952/2013 and Commission Regulations 2015/2446 and 2015/2447 are met. Anyone who gives untrue information about goods imported under these arrangements may be liable to penalties under the Customs and Excise Management Act Agents must have prior written approval from the authorisation holder to enter goods to IP on their behalf and ensure a copy of the entry is returned to the holder. Where the goods to be entered are liable to Climate Change Levy (tax type code 990) a tax line must be completed but no levy is payable. Use override code EXD in Box 47c and enter the amount payable as 0.00 in Box 47d. IP allows relief from customs duty, specific customs duty, anti-dumping duty and countervailing duty. Traders are reminded that failure to submit a Suspension Bill of Discharge (form TBA) by the due date to their supervising office may lead to having to pay any suspended duty and VAT. Any guarantee will not be released until you have submitted your Bill of Discharge If you are authorised and wish to declare your goods to free circulation based on the imported goods under Article 86(3) of the Union Customs Code use CPC F44.

9 CPC F44 new CPC notes goods entered to IP for discharge under Article 86(3) CPC note heading Goods Covered CPC note text Goods being entered to Inward Processing (IP) by either: the holder of a full authorization or authorisation involving more than one Member State issued under economic code 1, 5, 6, 7, 8 or Goods being entered without payment of customs duty, equivalent goods having previously been exported using prior export equivalence/prior import equivalence. Where the processed products will be declared to free circulation using Article 86(3) of the Union Customs Code as the basis for valuation (rate, value, quantity of the imported goods). Notice 3001 Specific Fields in the Box 1: enter code IM followed by A, D, Y or Z as declaration/notes on appropriate. completion Box 44 enter: Document identifier C601 IP authorisation number Do not enter a document status code Authorisation holders reference number as a GEN 45 AI statement (if any) Enter the appropriate licence details see Appendix C10 Details of the guarantee reference number as an AI statement GRNTR Please note that the Box 47 details for this CPC included in this CIP differ from the printed tariff notes. The Tariff will be updated in due course to match these CPC notes. Box 47: Where the goods are subject to Climate Change Levy (tax type code 990) a tax line must be completed but no levy is payable. Use override code EXD in Box 47c and enter the amount payable as 0.00 in Box 47d

10 Box 47e: if security is not required do not enter an MP code. Security required Security may be required to ensure conditions and obligations of the relief will be met. The supervising office will state in the authorisation or notify the holder if security is required. If security is required a valuation statement will be needed, see the Tariff Volume 1 Part 14 for further information. Where required, security must be by cash deposit or guarantee. In Box 47 enter MP code N, P, Q, S, T, U or V as appropriate. Where security is required enter document codes 9AID (Customs duties) and 9AIV (VAT) and show code UP in box 44. Additional information Where security is not required enter document codes 9AID (Customs duties) and 9AIV (VAT) and show code JP in box 44. Box 44: enter the following statements in the additional information box: Declare the full name and address of the supervising Customs Office as a SPOFF statement VAT Post Clearance Action Notes No import VAT is due on entries made to this CPC Enquiries must be addressed to the supervising office whose address is in Box 44 This CPC must not be used for goods entered under an authorisation by declaration (see CPC ) Use of this CPC constitutes a declaration by the importer that the conditions laid down in Council Regulation 952/2013 and Commission Regulations 2015/2446 and 2015/ Anyone who gives untrue information about goods imported under these arrangements may be liable to penalties under the Customs and Excise Management Act Agents must have prior written approval from the authorisation holder to enter goods to IP on their behalf and ensure a copy of the entry is returned to the holder. Where the goods to be entered are liable to

11 Climate Change Levy (tax type code 990) a tax line must be completed but no levy is payable. Use override code EXD in Box 47c and enter the amount payable as 0.00 in Box 47d. IP allows relief from customs duty, specific customs duty, anti-dumping duty and countervailing duty. Traders are reminded that failure to submit a Suspension Bill of Discharge (form C&E812) by the due date to their supervising office may lead to having to pay any suspended duty and VAT. Any guarantee will not be released until you have submitted your Bill of Discharge If you are authorised and wish to declare your goods to free circulation based on the imported goods under Article 85 of the Union Customs Code use CPC CPC (ex ) CPC note heading CPC note text Goods covered Goods imported from outside the Union, without payment of customs duty or VAT, under prior export equivalence (EX/IM) Notice 3001 Specific Fields in the declaration/notes on completion Box 1 Enter code IM followed by A, D, Y or Z as appropriate. Box 44 Enter document identifier C601, IP authorisation number Do not enter a document status code Authorisation holders reference number as a GEN 45 AI statement (if any) Enter the appropriate licence details see Appendix C11 Box 46 Statistical value Box 47 Enter PDY as the last 3 characters in the rate column to allow CHIEF to calculate the potential duty. Where the goods are subject to Climate Change Levy (tax type code 990) a tax line must be completed but no levy is payable. Use override code EXD in Box 47c and

12 enter the amount payable as 0.00 in Box 47d Box 47e If security is not required do not enter an MP code Additional documents required Additional information VAT Post Clearance Action Notes For goods imported to replace equivalent goods previously exported (EX/IM) 3 copies i.e. the original and copies 1 and 2 of form INF5 stamped by customs where the export took place must be presented. If the quantity being imported is more than the quantity shown on the INF5, the excess balance can be entered to free circulation (with payment of duty) or may be entered to another authorised relief. If the excess balance is to be entered to IP, CPC should be used. Box 44 enter the following statements in the additional information box; Declare the full name and address of the supervising Customs Office as a SPOFF statement Enquiries must be addressed to the supervising office whose address is in Box Agents must have prior written approval from the authorisation holder to enter goods to IP on their behalf and ensure a copy of the entry is returned to the holder. 9.2 This CPC must not be used for goods entered under an authorisation by declaration (see CPC ) suspension in another Member State (see ) 9.3 Use of this CPC constitutes a declaration by the importer that the conditions laid down in Council Regulation 952/13 and Commission Regulation 2446/15 and 2447/15 are met. Anyone who gives untrue information about goods imported under these arrangements may be liable to penalties under the Customs & Excise Management Act 1979.

13 5. Testing of new and amended CPCs. The new CPCs F44 and F44 are available to test on HMUT now. The CPCs that have been amended to reflect the Union Customs Code will be available to test on HMUT from 14 March Contacts. For further information on this paper contact: Issued on the 20 April 2016 by Customs Directorate, HMRC. For general HMRC queries speak to the VAT, Excise and Customs Helpline on Telephone: Your Charter explains what you can expect from us and what we expect from you. For more information go to: Your Charter