On June 24^th the EU and Japan have signed the Decision establishing mutual recognition of AEOs. This offers enhanced trade facilitation opportunities provided by customs to certified trustworthy traders on both sides who have invested in securing their supply chains. In this way customs can also concentrate on high risks.

With this Decision, the EU and Japan establish the equivalence of their AEO programmes and provide for recognition of each other’s security certified operators. Japanese AEOs will receive benefits by European customs that are comparable to those received by EU AEOs. Japan will apply the same for EU AEOs in Japan.

This Decision on mutual recognition of AEOs is an important milestone both in trade facilitation and in securing the global supply chain.

Source: Press Release 24/06/2010 Taxaation and Customs Union DG

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’.

The identification of foreign traders or logistics operators in connection with customs clearance within the European Union is based on the unique EORI number.  When registering for customs purposes in one Member State, an operator is assigned an EORI number, which shall be used in all Member States, when necessary, in connection with customs clearance.

According to the legislation the EORI number should have been provided in customs declarations from 1 July 2009.  As some Member States faced difficulties with the development of their customs declaration systems, the European Commission recommended that the Member States should be flexible with regard to the use of the number. So far, Finland had not required the EORI number as mandatory.

In its note of 25 May 2010, the European Commission announced that the flexibility measures should be withdrawn and that of 1 July 2010, the Member States shall require that the EORI number is to be provided in customs clearance declarations where it is a mandatory element according to the legislation.

Finnish customs will require, from 1 July 2010, that the EORI number is provided, before it accepts a declaration as received.  To avoid slow-downs if all operators simultaneously change over to the mandatory use of the EORI number, the National Board of Customs in Finland has decided to start using the EORI number in its customs clearance systems as of 15 June 2010.

From 15 June to 1 July 2010 will be a migration period.  If the EORI number is not provided in declarations, Finnish Customs will provide guidance to economic operators in using their already assigned EORI numbers, or in applying for an EORI number if the operator hasn’t been assigned one yet.  A company in the EU shall be registered in the Member State where the company is established.

Finnish companies that in the last two years have been registered customers of Finnish Customs or that have a license concerning customs clearance granted by Customs, have been automatically registered for EORI (number format FI1234567-8)

From 1 July, not providing the EORI number is considered negligence.  Customs can impose a surcharge for fault by virtue of section 32 of the Customs Act.

The EORI number shall be mandatory in  :

• - Entry summary declaration
• - Summary declaration for temporary storage
• - Arrival notification and presentation
• - Upon arrival, unloading reports on goods in temporary storage
• - Transit declaration
• - Exit summary declaration
• - Export declaration
• - “arrival at exit” notification
• - Exit manifest presentation
• - Exit notification

Statutory basis :

Commission Regulation (EC) n° 312/2009

National Customs Act of Finland, section 4 (1466/1994)

For more info : TH.eori@tulli.fi or kirmo@tulli.fi

The EU electronic course which is designed to help companies learn the relevant facts about AEO legislation & process has been updated.

Following the legislative changes, the content has been adapted with the mandatory obligation to enter the EORI number in the AEO application and the deadlines for issuing the certifates.  

This course has been developed by the Customs and Taxation Directorate General of the European commission. It is their target is to foster a uniform implementation of the standards throughout the EU.

The AEO electronic course can be freely accesses and downloaded here.

Recently the Belgian Customs Administration has decided to eliminate or reduce certain guarantees for AEO certified companies. The Circular of May 18, 2010 lays down the provisions for granting an exemption or a reduction in security for authorized economic operators (AEO certified companies) with customs activities in Belgium.

An exemption from the security is granted for:
1. the temporary storage of goods in anticipation of the declaration;
2. the placing of goods under economic customs procedures (customs warehousing and inward processing relief) and for processing of goods under customs control in the name of the AEO certified operator;
3. the comprehensive guarantee on Community / Common transit to the extent of the reference amount if
a. the Belgium-based operator is the authorized declarant AND
b. the approved operator has sufficient experience in using the system Community / common transit and has control over transportation to the required criteria of the CCA AND
c. the Community / Common transit does not cover goods with a higher risk of fraud as defined in the CCA.

If the approved operator has no control over the transport, the amount of the guarantee is reduced to 30% of the reference amount.

If the Community / common transit concerns goods with a higher risk of fraud, the amount of the comprehensive guarantee is reduced in Belgium to 30% of the reference amount if:
1. the in Belgium-based authorized operator is the declarant AND
2. the approved operator has sufficient experience on the use of the scheme Community / common transit and has control over transportation to the required criteria of the CCA.

If the approved operator does not have sufficient experience on the use of the scheme Community / common transit or has not enough control over the transport, no reduction of the guarantee is granted.

If you have any question regarding this information, contact us for more information.