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HMRC internal manual

Customs Authorisation and Approval

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HM Revenue & Customs
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Transition Arrangements: Deciding on when to apply under the Union Customs Code (UCC), the Code

During the Union Customs Code (the Code) Transition Arrangements, economic operators should consider the benefits and costs involved in submitting an application under the new Code criteria and conditions.

Chapter CAA03000 provides an overview of each regime or procedure, including any changes introduced by the Code.

This Chapter (CAA04000) provides details on the specific transition arrangements for each type of authorisation or approval and details the operations which may be conducted under the ‘old’ Community Customs Code (Reg. No. 2913/92) and those which may only be conducted if a new, Code authorisation is held.

Economic operators may wish, where available, to continue to operate the regime or procedure under the Community Customs Code (EU Reg. 2913/92) criteria and conditions during the transition period to manage business costs, particularly in relation to guarantees (see sections CAA04030 – CAA04340 for details).

Economic operators should be aware that some operations no longer exist under the Code.  In order to continue to benefit from any facilitations in these areas applications for the new procedures will be required (for example, low value bulking imports (LVBI) ceases and a new Simplified Declaration Procedure (SDP) with low value imports authorisation is required).

Economic operators who decide to continue operating under their current authorisation or approval will be unable to benefit from any new facilitation measures introduced for these regimes under the Code (for example, retail sales in customs warehousing).

Economic operators (whose Community Customs Code (Reg. No. 913/92 authorisations or approvals have an end date) who decide to continue operating under their current authorisation and approval during the transition period should be advised not to wait until the transition period has expired to apply under the new rules.  Economic operators should ensure they have allowed sufficient time before the end of the transition period for the Customs authorities to consider and process the application.  Details of the types of authorisations or approvals that require the economic operator to apply for a Code authorisation or approval rather than it being reassessed by the Customs authorities are specified in sections CAA04030 – CAA04340.

Any new authorisation or approval required which has not been finalised by the end of transition period will result in the loss of any facilitation or simplifications until the new authorisation or approval is in place.

Retroactive effect may be possible in certain circumstances for some special procedure applications.

 

 

Amendments to a Community Customs Code (Reg No. 2913/92) authorisation:

Only processes, premises or operations which are already authorised or approved on 1 May 2016 will be allowed to continue under the transition arrangements.

Any facilitations to be added will require a new application under the Code arrangements for that regime or procedure.   To take advantage of these new benefits a Code compliant authorisation or approval for the particular type of regime or procedure will be required, for example retail sales in a customs warehouse).

Where changes to current authorisations and approvals do not have a substantive impact on the operation of the authorisation or approval, economic operators may be allowed to amend the authorisation or approval and remain under the Community Customs Code provisions.  Substantive changes to the authorisation or approval will require a move to a full, Code (EU Reg. No. 952/13) compliant authorisation (for example, a move of designated premises).

In response to feedback from businesses, HMRC has revisited the list of amendments that trigger an existing authorisation to be reissued as a UCC authorisation. The revised ‘Triggers for re-authorisation under the UCC’ are shown below. Please note this is not an exhaustive list:

Customs Procedure Question Decision
Customs Warehousing Is a new authorisation required under the UCC is the holder wishes to undertake ‘retail sales’? Yes. However, this will not be necessary if the holder of the authorisation is compliant or an AEO
Inward Processing Is a new authorisation required under the UCC if the holder wishes to divert some of the goods they import to IP to ‘free circulation’, instead of re-exporting them? Yes. However, this will not ne necessary if the holder of the authorisation is compliant or an AEO
All Authorisations Will a change to legal entity require a new authorisation under the UCC? Yes
  Will a new authorisation be required under the UCC for a change of software supplier? Yes. However, if the change is minor in nature, this will not be necessary if the holder of the authorisation is compliant or an AEO.
For information, changes to ‘Customs Freight Simplified Procedures’ (CFSP)/’Customs Warehousing’ (CW) software (change of supplier and/or software package) will result in a trigger.    
    Will a new authorisation be required under the UCC for the following?
  • change of name (that does not change the legal entity),
  • change of telephone number,
  • change of address,
  • change of Directors (where this does not substantially impact on the authorisation e.g. head office moves)
  • change of Directors (where this does not affect compliance history, solvency or guarantees)
  • changes to software to address mandatory requirements/control issues
  • change of representation status No to all under the UCC    
      Move of or additional approved premises:    
      Move of approved premises                           Will a new authorisation be required under the UCC? Yes. However, this will not be necessary if the holder of the authorisation is compliant or an AEO
      Prohibited and Restricted (P&R) and Licensed good checks                         Will a new authorisation be required to replace a Customs Code authorisation where P&R and licensed goods are involved? No. However, a desk audit/visit will be required by Large Business (LB)/Individual and Small Business Compliance (ISBC) to ensure the authorised Company are compliant/aware of the requirements in respect of the goods.
      All Special Procedures (Additional products added)                      Will a new authorisation be required under the UCC if changes are made to the first 4 digits of the commodity code? * Yes, for Inward Processing (IP)/Outward Processing Relief (OPR) and warehousing procedures but not if the holder has a good compliance history or they are AEO authorised.
  • For End-Use, a new authorisation will be required for 8 digit changes to the commodity code but not if the holder has a good compliance history or they are AEO authorised.      
        Will a new authorisation be required under the UCC if changes require an economic test? Yes and this will also apply if the goods are subject to Anti-Dumping duty
      Changes to Customs Procedure Codes (CPC) Codes Will a new authorisation be required under the UCC? Yes. However, this will not be necessary if the holder of the authorisation is compliant or an AEO

 

 

 

 

 

 

Transition arrangements for specific types of authorisations and approvals:

Sections CAA07020 – CAA07320 specify the criteria and conditions which need to be met for each type of authorisation or approval.  Where there are new criteria or conditions to be met under the UCC, these will be marked as ‘New’.

The following sections, CAA04030 – CAA04340 detail the procedures and processes which may be operated under a Community Customs Code (Reg No. 2913/92) authorisation or approval and those which may only be used if a new, UCC authorisation or approval is held.

The following sections also specify which authorisations or approvals require the applicant to reapply and those that will be reassessed by Customs.

Transition Arrangements: Deciding on when to apply under the Union Customs Code (UCC), the Code