On February 2nd , the Department of Customs and Excise issued an internal memo in order to set the standard of review of guarantees for potential debts, before the entry into force of the UCC.
Under the provisions of the article 251 of Delegated Regulation of UCC, authorizations under the Community Customs Code (CCC) and its implementing regulation shall remain valid in accordance with the following:
- Released with limited validity: remain valid until the end of that period or until the May 1st of 2019, whichever is earlier.
- Other authorizations: until they are re-evaluated as per 250.1 UCC.
It also states that authorizations remain with the requirements of access under the CCC which in principle applies to the maintenance of the guarantees associated with such authorizations.
However, in order to objectify, harmonize and anticipate the criteria introduced by UCC, it is allowed to apply them in relation to the quantification of the amount in those cases where the contribution of the guarantees is optional.
As per UCC and its Delegated Regulation, reduction or guarantee waiver is subject to the compliance of certain requirements set out in Article 84 of the Regulation. AEO of simplifications (AEOC) and complete (AEOF) meet these requirements
We list the different situations:
- Customs Warehouse: Will be exempt of warranty provided the depositary is AEO (simplifications or complete), with the exception of type E and deposit operations established in 514 Implementing Regulation of CCC. (transfer operations).
- Temporary storage: As the guarantee is required (it is mandatory, no optional) by
national legislation, is not possible to anticipate the criteria of UCC. However the amount of the guarantee will not include the part relating to VAT if the deposit holder is AEO (simplifications or complete).
- End Use: The authorization holders are exempt of warranty provided they are AEO (simplifications or completed).
- Inward Processing and Processing Under Customs Control: Holders of these authorizations shall be exempt from warranty provided they are AEO (simplifications or complete).
- Outward Processing – Temporary Import: As in both cases the contribution of guarantee is mandatory, will not be reduced until the entry of application of UCC.
- Transit and single authorizations: Are out of the scope of this note.
These revision of guarantees will be granted as per request of applicants.
After verifying that the company owns the AEO status Customs will proceed to apply these criteria.
We conclude stating that the implementation of the note of the Department involves the early implementation of the new legal framework, which contributes to lower tax burdens that the guarantee involves, for some operators with proven reliability.