The draft proposal of Incoterms ® 2010 was unanimously approved at the ICC’s Commercial Law and Practice Commission (CLP) on May 6th. Before launching the new terms, this draft proposal has to be approved by the ICC Executive Board.  This meeting is scheduled for September 16 & 17.  If all goes as planned, Incoterms® 2010 will become a reality upon their approval. The new set of rules are expected to come into force on 1/1/2011.

ICC  foresees the launch of the Incoterms® 2010 rules with a Major Conference in Paris from 27^th till 29^th September 2010. 

For the time being, there is little information to share on the changes, although it is expected that:

• changes will be substantial;
• there will be fewer rules than the 13 Incoterms 2000;
• there are brand new rules;
• the new rules will be much more friendly.
• Incoterms will be calles ‘rules’.

On 1 April 2010, a new electronic system for monitoring and controlling the movement of excise goods (alcohol, tobacco and energy products) within the EU becomes operational. The Excise Movement and Control System (EMCS) will make intra-EU trade in excise goods cheaper and simpler for operators, while also making it quicker and easier for Member States to tackle excise fraud.

For more information see the EMCS roadmap.

Source: Taxud News 31 March 2010
Photo: EMCS-online.com

Incoterms or international commercial terms are a series of standard trade definitions, published by International Chamber of Commerce (ICC) and widely used in international commercial transactions. They are used to divide transaction costs and responsibilities between buyer and seller and reflect state-of-the-art transportation practices.

The International Chamber of Commerce (ICC), introduced the first version of Incoterms in 1936. There are currently 13 Incoterms. Among the best known Incoterms are EXW (Ex Works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid), and CPT (Carriage Paid To).

The Incoterms have been revised six times in order to reflect international trade developments. The last update of the Incoterms entered into force on 1 January 2000. As the guardian and originator of Incoterms rules, ICC has a responsibility to consult regularly all parties interested in international trade to keep Incoterms rules relevant, efficient and up-to-date. ICC is currently revising Incoterms 2000. This revision is expected to be major on the seller-buyer cargo security obligations, which are linked to respective Custom-Trade Partnership Against Terrorism (C-TPAT) and Authorized Economic Operator (AEO) cargo security regimes.

After receiving a large number of comments from the ICC National Committees, the Incoterms Drafting Group recently completed a third draft of the revised version of Incoterms. After comments on the third draft are submitted by the ICC National Committees, the Drafting Group will meet in March 2010 to prepare a fourth version of the draft revisions to Incoterms. It appears that the new version of Incoterms will be entitled “Incoterms 2010”. This new edition is expected to enter into force on 1 January 2011.

The EU Commission and the Member States are implementing the EORI number or Economic Operators Registration and Identification number. The purpose of the EORI number is to have one unique identification number for each Economic Operator that should be recognised by all EU customs authorities. Such an identification number will serve as a common reference for the identification of economic operators in their relations with the customs authorities of the EU and for the exchange of information between these authorities and where appropriate, between customs authorities and other government departments and agencies.
The EORI number is mandatory as of 1st July onwards.

Who need to be registered ?
Economic Operators involved in customs related activities or mentioned on customs declarations.

In what Member State does an Economic Operator need to be registered ?
An economic Operator needs to be registered only in the Member State in which it is established for activities covered by customs legislation. The EORI number is unique and valid in all Member States of the EU. Operators of 3rd countries have to apply for their EORI number in the Member State where a customs declaration mentioning this operator is first submitted. The EORI number will be valid in all countries of the EU.
Example: Economic Operator X established in Germany imports goods via the port of Antwerp. The goods are released into free circulation in Belgium. As X is established in Germany, it needs to obtain an EORI number in Germany. The EORI obtained in Germany must be mentioned on the import declaration in Belgium.

EORI identification number
The EORI number will be structured as an identification number stating the country code of the Member State, e.g. BE followed with a numeric number. For Belgium this numeric number corresponds to the VAT number.

Registration procedure
Most Member States foresee in an automatic registration for those economic operators that are already known for customs. In case you don’t receive your EORI or a confirmation about your EORI, you will have to ask it to the competent authorities in your Member State. The Member State granting the number will validate the information included in the application form and process this information in both a national and a central EU system. Data will be exchanged between Member States and the EU Commission.

Implementation and application in Belgium
If your company is registered in the NCTS system, you will automatically receive a letter stating that your TIN number or Traders Identification Number is valid till end June. In the same letter the EORI number replacing the TIN number from 1st July onwards is mentioned.
If your company is known in the PLDA system, you should also automatically be informed with a letter informing your EORI number.
If by June, 10th, you have not been informed about your EORI, you need to apply yourself for an EORI number.

EORI on the customs declaration
According to the Commission Regulation n° 312/2009 of 16th April 2009 (OJ L 98, 17 April 2009), the EORI number should be mentioned in following boxes of the customs declaration:

For export, re-exportation, outward processing, community transit and/or proof of the community status of good:.
In Box 2: Consignor/Exporter. When the consignor/exporter does not have an EORI number, the customs administration may assign him an ad hoc number for the declaration concerned.
In Box 8: Consignee. If an EORI number has not been assigned to the consignee, enter the number required by the legislation of the Member State concerned.
In Box 14: Declarant/Representative. If the declarant/representative does not have an EORI number, the customs administration may assign him an ad hoc number for the declaration concerned.
In Box 50: Principal. In this box, you should enter the full name and address of the principal, together with the EORI number referred to the principal. Where the EORI number is provided, Membe States may waive the obligation to provide the full name and address.

For release for free circulation, inward processing, temporary importation, processing under customs control, customs warehousing and the entry of goods to free zones subject to type II controls:
In Box 2:Consignor/Exporter. If an EORI number has not been assigned to the consignor/exporter, enter the number requested by the legislation of the Member State concerned.
In Box 8: Consignee. When the consignee does not have an EORI number, the customs administration may assign him an ad hoc number for the declaration concerned.
In Box 14:Declarant/Representative. When the declarant/representative does not have an EORI number, the customs administration may assign him an ad hoc number for the declaration concerned.

Some shippers don’t know enough about the transport of their products to understand what they really need from their freight and logistics service providers, according to Dr Andrew Traill, managing partner of Shippers’ Voice. He reminds them that, ultimately, it is them who are responsible for meeting certain legal requirements.