The revised Modernized Customs Code, also known as the Union Customs Code, takes effect in November 1, as part of the EU efforts to modernize customs legislation throughout its member states. Rollout was delayed to allow state legislation to adjust to the changes. The modernized code integrates the common customs procedures among European states and creates an electronic customs environment. Electronic customs clearance, the major provision in the new code, requires many companies to upgrade their IT systems.
Any company that requires customs authorization must meet the conditions currently required to obtain Authorized Economic Operator (AEO) status. “So this is another reason why these companies should take steps to obtain AEO authorization,” according to Valentin Durigu, Senior Manager in KPMG in Romania’s Indirect Tax Department, as quoted in Business Review Romania. The European Commission predicts the Union Customs Code will be fully implemented throughout the EU by the beginning of 2020.
In Sri Lanka, the Customs Department is streamlining the import declaration procedure to expedite cargo clearance. Under the new system, importers will bring customs documents to a single clearance officer. This single change is expected to reduce clearance time by six hours.
In Vietnam, customs agencies are refusing to accept the guarantees of commercial banks for companies’ tax payments. This refusal, allowed under Dispatch 6615 released on August 12, is delaying customs clearance. Companies that pay the tax to the customs body report waiting 20 to 30 days to receive the tax refund, reducing their working capital.According to an article in VieNamNet Bridge, the Ministry of Industry and Trade has asked the Ministry of Finance to rethink its policies and to accept bank guarantees for tax payment.
In Russia, the dispute that added a national guarantee tax atop TIR(Transports Internationaux Routiers or International Road Transport) Convention for goods traveling through its territory has been put on hold until at least December. The national tax was postponed Friday the 13 for all goods except those entering Siberia and the far eastern customs regions. There is speculation the taxes may be reinstated after December 1.