Jas Forwarding (UK) Limited UK Projects Oil & Gas Division. People Make The Difference

Transcription

1 Jas Forwarding (UK) Limited UK Projects Oil & Gas Division People Make The Difference

2 TRADE & CUSTOMS COMPLIANCE SUPPORT FOR THE Oil & Gas SUPPLY CHAIN

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4 Why is there a need in the UK for EU Trade & Customs Compliance.? MRC

5 Potted fiscal history for UKCS Oil & Gas exploration: In 1957 the Continental Shelf convention was held granting licensing for UKCS sector national resource exploitation 1964 the UK Continental Shelf Act was passed by Parliament empowering HMRC to oversee trade compliance 1965 the IPR simplified Continental Shelf regime was established to attract and import the required technology for offshore exploration 1973 (44 years ago) UK joins the E.E.C. European Economic Community 1992 (25 years ago) E.E.C Border controls removed and the Harmonised System was rolled out and implemented across all member states 2000 to 2002 Transition to SEU (Ship Work End Use) regulations were established where today this is the present Regime..! Public Notice 770 and now effective 18 th July 2017, Notice 3001 covers this in more detail 1 st May 2016 UCC Customs Blueprint came into effect for all 28 member states and then 23 rd June BREXIT.well what next!

6 And so we might say what next: 1 st May 2016

7 CUSTOMS STATUS People Make The Difference In summary there are three types of customs status. FCG Free Circulation Status Meaning UK or EU manufactured goods or goods that duty has been paid on in one of the 28 member states hence Free Circulation Preference Goods Goods manufactured from EFTA member states such as Norway where a purely origin based free trade agreement is in place. IPR / SEU Ship Work End Use Meaning goods where EU duties and taxes have not been paid and they are under the traders End Use Authorisation

8 UCC / Union Customs Code became effective May 1 st 2016 The key objectives of this initiative are: To provide facilitation of legitimate trade across all 28 members states Reinforce the needs to ensure continued security & safety with-in the EU Provide a paperless environment for customs & trade Achieve a harmonised & standardised application of customs controls with AEO (Advanced Economic Operator) status taken up by traders

9 What are the key impact items for the UK and in particular UKCS trade: The withdrawal of the SEU / RGR simplified manifesting procedure and to be replaced with a formal electronic EDI data capture system to CHIEF (HMRC s UK import / export mainframe) Mitigation of Fiscal Risk by way of implementation of CCG s (Comprehensive Customs Guarantee s) which are a move away from Bill of Demand where previously no security was provided to HMRC Withdrawal of the monthly declaration undertaking and replaced with a monthly BOD 2 (Bill of Discharge) thus creating more detailed audits on traders where duty suspension regimes are active TORO Addressing the Transfers of Rights and Obligations

10 Withdrawal of the simplified manifesting system: The best area for guidelines on this major change are found in HMRC information paper CIP 14 which was issued in April 2016 In summary it provides the detail for three types of EDI import / export controls by way of: 1. SDP ( Simplified Declaration Procedure) aimed at non AEO operators 2. EIDR ( Entry in Declarants Records Procedure) aimed at AEO operators or those that meet the criteria for AEO 3. Full Import / Export Declaration Procedure aimed at small volume or new traders who do not have the cover of 1 or 2 above To obtain 1 or 2 above a C&E 48 needs to be submitted

11 CCG Comprehensive Customs Guarantee s: Moving forward and now the Bill of Demand option has been removed, for all SEU Authorisations, a trader will have to provide adequate assurity to HMRC by way of a: 1. Bank bond, 2. Bank guarantee 3. Insurance bond or 4. Cash deposit Values for this are calculated on the anticipated financial risk HMRC deem will be liable by the trader and in the main will cover duty but not VAT

12 TORO Transfer of Rights & Obligations As a result of this particular item, new requirements will be needed to satisfy TORO rules which in summary are: 1. Transfer of the rights of SEU assets is acceptable 2. However - Transfer of the obligations are not permitted In item 2 above, obligation for audit trail remains with the importer or supplier when SEU goods pass through the Supply Chain line

13 TRANSITION PERIOD / GRACE PERIOD: As we now know, BREXIT has de-stabalised EU & HMRC Customs protocol and clearly a state of confusion reigns Until such times as the UK can agree a way forward with the EU, HMRC s present stance is to carry on with implementation of UCC but at the same time offer up a period of transition or grace period This is likely to see trade carrying as usual until the end of 2019 and provided every trader has lodged a C&E 48, this will provide some cover as the new procedures and practices are fine tuned EU Intrastat scheduling will continue to apply as normal also

14 Using the right supply and purchasing Incoterms will help to mitigate your risk

15 Incoterms 2010 make sure you have them clarified for all import / export movements

16 On Behalf of JAS Projects Oil & Gas Thank you!