European Commission Taxation and Customs Union Single Authorisations

European Commission / Taxation and Customs Union Single Authorisations and centralised customs clearance Michael LUX Head of Unit « Customs procedures » European Commission 09/03/2021 1

European Commission / Taxation and Customs Union Overview 1. What are Single Authorisations? 2. What are the benefits of Single Authorisations? 3. Which obstacles are to be overcome? 4. Which further measures are in place or envisaged? 5. What is the link with AEO? 6. What will happen under the modernized Customs Code? 7. Conclusion 09/03/2021 2

European Commission / Taxation and Customs Union 1. What are Single Authorisations ? (1) • Single Authorisations are authorisations involving customs administrations in more than one EU Member State. Such authorisations may concern the use of • simplified declarations, • local clearance, • inward or outward processing and processing under customs control, • customs warehousing, • temporary importation (where no ATA carnet is used) • end-use 09/03/2021 3

European Commission / Taxation and Customs Union 1. What are Single Authorisations ? (2) • The different types of Single Authorisations may be combined (Integrated Authorisations). • The reason why more than on customs authority is involved is – either that the customs declaration is lodged in a Member State other than that where the goods are available for customs controls – or that the goods are processed, stored or used in more than one Member State 09/03/2021 4

European Commission / Taxation and Customs Union 1. What are Single Authorisations ? (3) • Single Authorisations for simplified declarations and local clearance may be granted to representatives, provided satisfactory records and procedures are in place allowing the identification of the persons represented and appropriate customs controls. • As of 2011, the use of a Single Authorisation for simplified declarations or local clearance requires electronic declarations and notifications 09/03/2021 5

European Commission / Taxation and Customs Union 2. What are the benefits of Single Authorisations ? (1) • Reduction of customs transaction and transport costs • Better compliance, due to centralised control of the economic operator and better information exchange • Incentive for maintaining customs clearance at the place where the importer is established (rather than releasing the goods for free circulation at entry) 09/03/2021 6

European Commission / Taxation and Customs Union 2. What are the benefits of Single Authorisations ? (2) • No need for an additional transit procedure • No need for economic operators to communicate (and maintain interfaces) with the customs administrations of other Member States (as these administrations communicate with each other) • The authorisation holder can communicate with customs in his own language although the release, control, processing, storage or use of the goods takes place in another Member State 09/03/2021 7

European Commission / Taxation and Customs Union 3. Which obstacles are to be overcome? • A time consuming consultation process between Member States • Agreement on the control methods/standards to be applied • The need to exchange information between the two customs offices concerned • The need to provide statistical information • The need to provide information for VAT and excise purposes • Agreement on the sharing of the national part of own resources where goods are released for free circulation 09/03/2021 8

European Commission / Taxation and Customs Union 4. Which further measures are in place or envisaged? (1) • Are in place – administrative arrangement for the sharing of collection costs – guidelines – e-learning tool for simplified declarations and local clearance – a common data set for data to be declared and (later) to be exchanged between Member States (Annex 30 A, Table 6) – obligation to lodge electronic declarations and local clearance 09/03/2021 9

European Commission / Taxation and Customs Union 4. Which further measures are in place or envisaged? (2) • Envisaged – database for Single Authorisations (extension of AEO/EORI database) – electronic exchange of the harmonized data set between Member States – common rules for statistical data exchange 09/03/2021 10

European Commission / Taxation and Customs Union 5. What is the link with AEO (1)? • The criteria for simplified declarations and local clearance are in practice the same as those for AEO customs simplifications, both for national and Single Authorisations • The use of these simplifications is not restricted to AEO; however, an AEO has already shown that he fulfils the criteria, so that only the necessary data exchange needs to be arranged when he applies for a Single Authorisation 09/03/2021 11

European Commission / Taxation and Customs Union 6. What will happen under the modernised Customs Code ? • A specific Article will cover centralised customs clearance • The simplified declaration and the local clearance procedure will be merged (with the result that the customs debt is incurred at the place where the authorisation holder keeps his customs records) • Centralised customs clearance can also be used where a complete declaration/entry in the records is made (one step procedure) • The current administrative arrangement on the sharing of the national part of own resources will be replaced by a Convention between Member States. 09/03/2021 12

European Commission / Taxation and Customs Union 7. Conclusions (1) • Centralised customs clearance is already in use under the present CC (under the rules for Single Authorisations). This facilitation will be expanded, to the benefit of both trade and customs • What is important now is: – to agree on, and introduce, the necessary IT tools (SA database, AIS, AES) – to apply uniform control methods/standards – to accept the administrative arrangement and subsequently ratify the Convention on the sharing of the national part of own resources 09/03/2021 13

European Commission / Taxation and Customs Union 7. Conclusions (2) • Possible changes to statistical and VAT rules, allowing traders to centralise statistical and VAT reporting requirements must be pursued in the appropriate forums • The modernised CC will provide a better framework within which the use of this concept (along with others, such as self assessment) can be taken forward, thus improving the competitiveness of EU business, in line with the Lisbon agenda. 09/03/2021 14