Commercial Information Circulars

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e-mail address : enquiry@tid.gov.hk

Ref : EIC 230/3 

28 July 2008

Dear Sirs,

Commercial Information Circular No. 386/2008

European Union (EU) * : Modernised Community Customs Code

Further to our Commercial Information Circular No. 177/2007 of 24 April 2007, the European Parliament and the Council of the EU have adopted a Regulation to establish the modernised customs code, laying down the general rules and procedures applicable to goods brought into or out of the customs territory of the Community. Details are set out in Commission Regulation (EC) No. 450/2008 (the Regulation). The Regulation can be accessed through the following link: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:145:0001:0064:EN:PDF.

DETAILS

2. The modernised customs code introduces a number of changes which aims at streamlining customs procedures and providing a legal framework for procedures based on electronic declarations and processing. Changes that may affect Hong Kong manufacturers and exporters are summarised below. 

Electronic Declarations and Processing

3. The Regulation requires that all exchanges of data, accompanying documents, decisions and notifications between economic operators and customs authorities shall be made using electronic data-processing technique. Paper may only be used in certain cases (e.g. temporary failure of the customs authorities' or economic operator's computer systems, etc.) as defined expressly in additional measures. 

Centralised Clearance

4. Authorised traders will be able to declare goods electronically and pay their customs duties at the place where he is established, irrespective of the Member States through which the goods will be brought in or out of the EU customs territory or in which they will be consumed. The customs office at which the customs declaration is lodged shall carry out the formalities for the verification of the declarations and collect the customs duties. 

Authorised Economic Operators

5. An economic operator who is established in the customs territory of the Community may request the following two types of status of authorised economic operators to enjoy simplified customs procedures: 

1. a 'customs simplification' authorised economic operator which shall enable them to benefit from certain simplifications in accordance with the customs legislation; and/or 
    
2. a 'security and safety' authorised economic operator which the holder shall be entitled to facilitations relating to security and safety.

6. The criteria for the granting of the status of authorised economic operator are set out as follows:-

1. a record of compliance with customs and tax requirements; 
    
2. a satisfactory system of managing commercial and, where appropriate, transport records, which allows appropriate customs controls;
3. proven solvency; 
    
4. for 'customs simplification' authorised economic operator - practical standards of competence or professional qualifications directly related to the activity carried out required; and
    
5. for 'security and safety' authorised economic operator - appropriate security and safety standards.

Entry into force

7. Major provisions that constitute the modernised customs regulatory framework shall be applicable in stages by 24 June 2013 at the latest, pending the adoption of the implementing provisions. The Department will monitor closely developments and keep the trade informed.

ENQUIRIES

8. For enquiries concerning the contents of this circular, please contact the undersigned at telephone number 2398 5684.

Yours faithfully,

(Cyrus NG)

for Director-General of Trade and Industry

* The EU includes Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.