Business Contracts, ICC Commission on Customs and Trade Facilitation (Paris, 9-10 November 2017), ICC Italia
The meeting of the ICC Commission on Customs and Trade Facilitation was held in Paris at the headquarters of the International Chamber of Commerce (ICC)
Discussion on the EU Customs Code and on future changes in Europe
Jean-Michel Thillier, Head of Service, Directorate Génerale des Douanes and Droits Indirects spoke on the latest developments in the EU Customs Code and on future changes in Europe, including Brexit. Among the most significant innovations of the new Union Customs Code, in force since May 1, 2016, there is the centrality of the Aeo figure. In France the Authorized Economic Operators are 1700. One of the most attractive aspects for Aeo companies concerns the substantial reduction or exemption from the guarantee and the possibility of moving goods from a temporary warehouse from one member state to another member state without need authorization.
The Aeo is not only related to customs procedures, but affects every company that intervenes in the handling or packaging of goods without ever doing customs operations, as a piece of a wider supply chain: for these operators was designed the Aeo – security.
Among the processes that must be appropriately analyzed by the Aeo, the Incoterms’ choices are particularly sensitive and attentive. The Union Customs Code is characterized by more flexible procedures on classification, origin and value. Among the innovations that are most useful for companies, there is the “one stop shot” principle, which allows one to concentrate in a single moment and with a single interlocutor – the Customs – all the obligations connected to the crossing of borders.
In France, a Special Office for Large Taxpayers was set up in order to create areas of specialization concerning their particular reality. Jean-Michel Thillier underlined how the integration is not over and how, in the future of European customs, there will be the EU Customs Agency. The interoperability of the systems of the individual member states needs to be increased.
E-commerce
Suzanne Devallet, Directorate General of the Douanes and Droits Indirects, provided an update on the involvement of the ICC in the WCO working group on e-commerce and underlined the ICC’s commitment as co-chair of the Revenue subgroup Collection. The issue concerns the transfer of physical assets across borders and the hypothesis of maintaining or expanding the exemption already provided for VAT.
Implementation of the WTO Trade Facilitation Agreement (TFA)
Andrew Wilson and Valerie Picard, respectively Director and Deputy Director of Global Communications, provided an update on the state of implementation of the TFA within the individual member states.
World Chambers Federation (WCF): questions of mutual interest
An update was provided on the European Union’s willingness to digitize all customs documents by 2020. The need to adapt Ata carnets was also expressed , currently paper.
There was discussion on legal responsibility in the rules of origin and on the initiative, in common with the WCF, to explore issues of this kind.
Charter of rights for importers and exporters
A proposal was presented for the creation of a charter of rights for importers and exporters. Among these rights must certainly be included the right to be heard and the right to proportionality of sanctions.
After the TFA each country must establish a national committee and address the issue of trade barriers and resolve it. The bank guarantee is a problem for operators who are not multinationals. It is essential to remove all the financial obligations necessary to be able to import; in fact, banks issue loans, but an insurance guarantee is sufficient to protect the customs from the risk of non-payment of duties.
Customs value
An update was provided on the results obtained by the Technical Committee on customs value, which include a report on the 45th session.
ICC strategic overview
Philip Kucharski, Chief Operating Officer, ICC, expressed his positive opinion on the relationship established with the WTO, calling it “the best relationship among those also with other international organizations”. According to Kucharski it is necessary to overcome the prospect of a discussion on the highest principles of globalization, having in mind and highlighting concrete examples of international trade and the advantages of lower costs of customs procedures, especially for small and medium-sized businesses that can sell abroad.
Elements of common interest to several Commission.
The ICC Commission on Taxation dedicated itself to the issue of the growing collaboration between tax and customs administrations, the ICC Commission on Commercial Law and Practice expressed its views on the developments of Incoterms 2020, the ICC Commission on Trade and Investments Policy The latest developments in the subject, the ICC Commission on Digital Economy has dealt with recent developments in the digital economy, the ICC Commission on Banking has focused on the latest developments in the financial markets, including the blockchain, the ICC Commission on Intellectual Property has addressed the theme of the value of intangible goods in customs and of the intellectual property right, while the ICC Business Action to Stop Counterfeiting and Piracy has expressed itself on the most recent developments in this area.
Supply chain connectivity
There was a discussion about the supply chain connectivity and the future of blockchain technology in the transport and logistics sector.
Customs value
Important developments of the Customs Value Commission in the WCO field, there are two very important opinions: transfer pricing 14.1. the transaction value could be used for the determination of the customs value 14.2. new principles on transfer pricing and customs value. Uruguay proposed a study topic on transfer pricing. Canada has put forward a proposal on the notion of “export cession”.
The future WCO guidelines on prior rulings (Article 3 TFA) were presented and the ICC was asked to comment on them. The WCO is updating on transfer pricing and customs value. An invitation was sent to the EU delegate: the agreement on customs value dates back to the 1970s, therefore, after 40 years, a discussion that takes into account changes, including e-commerce, is necessary.
Strategic awareness of the ICC’s policy of recommendations
Discussions on the ICC declaration on illicit trafficking in free trade areas and on mutual recognition agreements of AEO programs have been discussed. There was also talk of the improper use of databases on customs value to set reference prices.
Customs treatment of rescue shipments during humanitarian emergencies
A document of the working group coordinated by Megan Giblin and composed by Sara Armella, Cynthia Chandler-Snell, Norm Schenk, Simiso Dlodlo Nolwandle and Lucia Soto has been drawn up, aimed at allowing the exemption from the authorizations and the payment of duties, for what is necessary, following humanitarian emergencies. WCO Harmonized System Committee (HSC) An update was provided on the 60th session and other recent developments of the HSC.
Schemes of guarantees
There was a discussion about the drafted perspectives of the ICC in the use of guarantee schemes and with reference to the best international practice of “customs bonding”.
Landports and transit under the WTO TFA
The current state and subsequent steps have been discussed.
Developments in the transport and logistics sector
An update on the latest developments in the transport and logistics sector was provided.
Other activities
The development of a reference desk for customs clearance has been proposed. In order to simplify cross-border trade, indications were provided to facilitate the use of the “return-fill” procedure in the container system and the creation of synergies with the “Commission policy work” and with the “UN Sustanaible Development Goals”.
Source ICC Italia
