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The new Union Customs Code (UCC) represents a major overhaul of existing EU customs legislation, which dates back to 1992. It is a milestone for the European Customs Union, the framework which allows more than €3 trillion worth of goods to flow in and out of the EU each year. The new rules aim to:

– allow traders to clear customs procedures more simply and quickly, getting goods to consumers faster and more cheaply;

– better protect consumers against illegal goods or goods which don't respect European environmental, health and safety requirements;

– improve cooperation between customs administrations with the help of new IT systems.

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs underlined that efficient EU Customs Union facilitated trade while at the same time enforcing necessary rules for security, safety and intellectual property rights.

He added that the new Union Customs Code has opened the door for using new IT systems that would provide fast and quality data on goods being traded; it would allow for closer coordination among custom/tax administrations in the EU member states.

Digital UCC

are at the heart of the new rules. The new UCC puts in place IT systems that both customs administrations and traders need for simple and fast clearance of customs procedures while also ensuring that all necessary checks and controls are carried out. The new rules are the outcome of a rigorous and comprehensive dialogue involving all partners.

The European Customs Union is unique in the world: it makes both the foundation of the EU and is essential for the proper functioning of the EU Single Market. Thus, once cleared by Customs in one EU state, goods can move freely within the Union on the basis that all EU member states apply the same revenue and protection rules at external borders.

The 28 customs administrations of the EU must act as though they were one entity, while also facilitating trade and protecting the health and safety of all EU citizens. These are not easy tasks. The EU is one of the largest trading blocks in the world. In 2015, the EU accounted for almost 15% of world trade in goods, worth €3.5 trillion.

Managing this volume of international trade requires handling millions of customs declarations per year in a fast and efficient manner.

But customs are also to protect the European security: they play an important role in combating terrorism by checking illegal trafficking of firearms and illegal trade in works of art and cultural goods. They protect consumers against goods which present a risk to safety and health. For example, 454.2 tones of drugs, 35 million counterfeit goods and 3.2 billion cigarettes were seized in the EU in 2014. Appropriate controls require fast, high-quality and updated information and sound coordination among the customs administrations of all EU states.

Towards more modern customs

The Union Customs Code, UCC is the new framework regulation for the rules and procedures for customs throughout the EU-28 states. The Code reflects a “common move” towards a more modern customs environment for all EU states while making European business more competitive and advancing contemporary EU Strategy for growth and jobs.

More specifically, the UCC will:

­– streamline customs legislation and procedures across the EU-28;

– offer greater legal certainty and uniformity to businesses and increase clarity for customs officials;

– simplify customs rules and procedures to make customs transactions more efficient and modern;

– complete the shift to a paperless and fully electronic and interoperable customs environment;

– introduce more speedy customs procedures for compliant and trustworthy businesses.

The UCC should be fully implemented by the end of 2020. During the transitional period, the new rules will apply by using existing IT systems and, in some cases, paper forms. Work to develop the new systems or to upgrade existing ones has already begun.

More in UCC:  The latest news from DG TAXUD; UCC on the DG TAXUD website; VIDEO: What is the UCC? And VIDEO: EU Customs in one minute;  

Reference: http://europa.eu/rapid/press-release_IP-16-1629_en.htm?locale=en

The UCC legislation

The Union Customs Code legislation (and UCC work program) is of recent origin; it has been adopted, generally, during 2015 and 2016. The UCC legal package is composed of the following legal acts:

= The Union Customs Code. The UCC was adopted on 9 October 2013 as Regulation (EU) No 952/2013 of the European Parliament and of the Council.
It entered into force on 30.10.2013 although most of its substantive provisions apply from 1 May 2016.

= The UCC Delegated Act. The UCC Delegated Act was adopted on 28 July 2015 as Commission Delegated Regulation No 2015/2446.

The UCC Delegated Act supplements certain non-essential elements of the UCC.
Since its adoption, the UCC Delegated Act has been modified twice: Articles 2, 3, 104, 106, 112, 113, 128, 138, 141, 144, 146, 181 and 184 were amended;

Articles 122a, 124, 124a, 126, 126a and 129a to 129d, were added by the UCC Transitional Delegated Act in order to include some transitional provisions, which will apply until the relevant IT systems are fully operational. Articles 139 and 141 of the UCC Delegated Act have been corrected by a Commission Delegated Regulation.

= The UCC Implementing Act. The UCC Implementing Act was adopted on 24 November 2015 as Commission Implementing Regulation No 2015/2447.

The UCC Implementing Act intends to ensure the existence of uniform conditions for the implementation of the UCC and a harmonised application of procedures by all Member States.

= The UCC Transitional Delegated Act.  The UCC Transitional Delegated Act was adopted on 17 December 2015 as Commission Delegated Regulation No 2016/341.

The UCC Transitional Delegated Act establishes transitional rules for operators and customs authorities pending the upgrading or the development of the relevant IT systems to create a fully electronic customs environment.

Annex 12 of the UCC Transitional Delegated Act has been corrected by a Commission Delegated Regulation that is currently under scrutiny by the Council and the European Parliament.

= The UCC Work Programme was adopted on 11 April 2016 as Commission Implementing Decision No 2016/578. The Work Programme relates to the development and deployment of the electronic systems provided for in the UCC and is closely linked to the UCC Transitional Delegated Act.

Reference: http://ec.europa.eu/taxation_customs/customs/customs_code/union_customs_code/ucc/legislation_en.htm#ucc