Andy Martin - YRC Logistics EU

HM Revenue and Customs issued Authorised Economic Operator (AEO) certification to YRC Logistics UK with effect from July 1, 2009. The AEO certification status is “Full (F)”, which entitles YRCL to benefit under both the security and safety and the customs simplification regimes. This status allows YRCL clients with similar accreditation to enjoy the full range of AEO trade facilitation benefits, such as fewer physical customs inspections at EU borders and easier reporting.

The AEO objective is to enhance supply chain security through granting recognition to reliable traders and encouraging best practice at all levels in the supply chain.
AEOs are able to benefit from facilitation for customs controls or simplifications for customs rules or both, depending on the type of AEO certificate.

There are three certificate types:

· AEO Certificate—Customs Simplification
· AEO Certificate—Security and Safety
· AEO Certificate—Customs and Security (so-called "Full Certificate")

Obtaining Customs Simplification/Security and Safety Full Certification status required YRCL to meet the qualification requirements for both the AEO Customs Simplification Certificate and the AEO Security and Safety Certificate. The comprehensive criteria encompassed standards relating to the management of commercial and transport records; general good standing and stringent security measures concerning the management of the entire supply chain.

Most importantly to our clients, YRCL’s AEO certification status will now permit AEO certified importers and exporters to enjoy the full range of benefits, including fewer physical and document-based controls, priority treatment of consignments and choice of location for customs controls.

For more information please contact Vince Thomson, YRCL UK Global Services Manager,
TEL: +44 (0)1784 480104; EMAIL vince.thomson@yrclogistics.com

Labels: AEO, Authorised Economic Operator, HMRC, International Trade Compliance

The special incentive arrangement for sustainable development and good governance, known as GSP+, offers additional tariff reductions (more generous GSP rates of duty) to support vulnerable developing countries in the ratification and implementation of international conventions.

CIP (08) 47 stated that all current beneficiaries of the GSP+ arrangements (Bolivia, Columbia, Costa Rica, Ecuador, El Salvador, Georgia, Guatemala, Honduras, Mongolia, Nicaragua, Panama, Peru, Sri Lanka and Venezuela) must re-apply by 31 October 2008 to continue to benefit from the more generous GSP rates of duty.

The European Commission had until 15 December 2008 to make a decision on their eligibility to continue to benefit from the arrangements.

The Commission published on 9 December 2008, the list of countries that will be eligible for GSP+ for the period 1 January 2009 to 31 December 2011. These are: Armenia, Azerbaijan, Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Georgia, Guatemala, Honduras, Mongolia, Nicaragua, Paraguay, Peru, Sri Lanka and Venezuela.

Although El Salvador and Sri Lanka were included in the Commission’s decision, questions remain over the degree of effective implementation of certain United Nations (UN) and International Labour Organization (ILO) conventions in these countries.

The European Commission launched investigations in May (El Salvador) and October (Sri Lanka) in order to ascertain whether or not the two countries fulfil the conditions to continue to receive GSP benefits.

However, while the investigations are ongoing the countries continue to receive preferential access, but depending on the findings of the investigations they could be temporarily withdrawn from the GSP scheme sometime in 2010, which will mean that no preferential rates of duty will be available for their goods.

Changes to the current list of GSP+ Countries

Armenia, Azerbaijan and Paraguay will receive GSP + benefits for the first time.

However, due to the lateness of the Commission’s decision it will not be possible to update the customs computerised entry processing system (CHIEF) with the more generous GSP + rates for those countries in time for 1 January.

It is anticipated that the system will not be fully up to date until 1 February 2009.

Consequently, there is a risk that you could overpay duty on goods released to free circulation under the GSP between 1 January and 1 February.

In order to avoid this possibility, importers, agents and forwarders should use the tax override facility on CHIEF and manually calculate the GSP rate of duty payable on goods from the three countries concerned.

Panama did not reapply for GSP+ benefits. Consequently, it will become a standard GSP beneficiary with effect from 1 January 2009. Standard GSP rates of duty (see column 6 in the schedule in Volume 2 of the HMRC Tariff) will apply to Panamanian goods which are released to free circulation on or after 1 January.

http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD1_029103

(Source: customs.hmrc.gov.uk)

Labels: GSP, HMRC, Tariff Preference