The following provides information on major regulatory efforts of the EC Taxation and Customs Union Directorate:
The Union Customs Code (UCC) was adopted in 2013 and its substantive provisions apply from 1 May 2016. It replaces the Community Customs Code (CCC). In addition to the UCC, the European Commission has published delegated and implementing regulations on the actual procedural changes. These are included in Delegated Regulation (EU) 2015/2446, Delegated Regulation (EU) 2016/341 and the Implementing Regulation (EU) 2015/2447.
There are several changes in the revised customs policy which also require an integrated IT system from the customs authorities. In April 2016, the European Commission published an implementing decision (number: 2016/578) on the work program relating to the development and deployment of the electronic systems of the UCC. The EC continues to evaluate the timeline by which the EU-wide integration of the customs IT system can be implemented. The current deadline of December 2020 may be extended until 2025.
Customs Valuation – Most customs duties and value added tax (VAT) are expressed as a percentage of the value of goods being declared for importation. Thus, it is necessary to create of a standard set of rules for establishing the goods’ value, which will then serve for calculating the customs duty.
Given the magnitude of EU imports every year, it is important that the value of such commerce is accurately measured for the purposes of:
- economic and commercial policy analysis.
- application of commercial policy measures.
- proper collection of import duties and taxes; and
- import and export statistics.
These objectives are met using a single instrument - the rules on customs value.
The EU applies an internationally accepted concept of ‘customs value’.
The value of imported goods is one of three ‘elements of taxation’ that provides the basis for assessment of the customs debt, which is the technical term for duty that has to be paid, the other ones being the origin of the goods and the customs tariff.