The Union Customs Code was introduced across the European Union (EU) on May 1, 2016.
There has been be a number of changes to how goods cross EU borders and some transitional arrangements will operate until 2020.
Information on the main changes can be seen here.
SINCE the Union Customs Code (UCC) entered into force, we have received an avalanche of questions from traders asking whether the new customs code applies to the UKCS, so here is quick summary.
Customs territory and UKCS
The UCC, like its predecessor, applies to goods exported from, and imported into the “EU customs territory”.
The EU customs territory includes countries' territorial waters (12 nautical mile limit).
The territorial waters limit is different from the UKCS.
Movements of goods to installations outside the UK territorial waters, are exports or imports and therefore need an export or import declaration.
It is also subject to export controls, some products might therefore need an export licence.
The transaction
What are the terms of trade (Incoterms)?
Who is responsible for export/import formalities?
For instance, under Ex Works (one of the most misunderstood and risky term), the seller is not responsible for export formalities.
Who is responsible for the return import (and import VAT) in case of rentals?
If you are not sure, consider attending the Chamber's Incoterms training.
Remember that to have legal value, Incoterms must be included in the contract.
In my experience, a large number of customs problems are the result of a weak initial agreement.
Exports and imports from the UKCS
Goods can be exported to or imported from the UKCS with the
- Standard Declaration
- Simplified Declaration Procedure (SDP) 

- Entry in the Declarant’s Records (EIDR) 

Both the SDP and EIDR are subject to authorisation (Form C&E48).
To be successful, companies do not need to be an AEO (authorised economic operator), however, they need to demonstrate that their internal customs compliance processes are strong enough to meet some of the AEO criteria.
If you need to strengthen your customs compliance you might find the Chamber's Global Trade and Customs Compliance training useful.
Standard Declaration
Standard Declarations require all the information necessary for the clearance of the goods at the time of import or export.
Simplified Declaration Procedures (SDP)
Allow traders to submit, at the time of import or export, an initial declaration containing a minimum of information to release the goods.
This is followed by a Supplementary Declaration providing the full fiscal information within a month.
By delaying the calculation of duty and taxes SDP delivers cash flow benefits.
Entry in Declarant’s Records (EIDR)
Similar to the SDP, an initial entry is followed by a supplementary declaration, however this time, the initial entry is made into the company’s computer system, such as its stock records, rather than through customs declarations.
Customs Supervised Exports (CSE)
A new UK scheme authorising traders to declare goods to export procedures at their premises.
End Use Goods
The UCC introduces a Bill of Discharge for End Use goods to be submitted to Customs within 30 days of the discharge of the End Use.
Customs Procedure Codes (CPC)
Some CPC have changed, here is a list of CPC for export and import.
Further information, any questions?
Get in touch with the Chamber, or join us for a UCC & AEO training session.