FTA Joins Call for Union Customs Code that Supports Business

Along with several trade associations, FTA signed a Joint Statement to the European Institutions urging them to consider the impact of proposals to update the Union Customs Code Delegated Act on the competitiveness of European businesses and potentially consumers - in particular, the deletion of the first sale principle and expansion of the amount of royalties and customs fees. The new Union Customs Code (UCC) will become applicable in May 2016. The European Commission’s Taxation and Customs Union Directorate -General (DG TAXUD) is currently reviewing the fifth draft for the new Delegated Acts (DA) and Implementing Acts (IA) for the Union Customs Code (UCC).

The ‘first sale’ principle - which is under proposal for deletion - allows companies to calculate customs duties based on the price of an earlier transaction in the chain of sales before entering the EU market under certain conditions. As outlined in the joint statement, the deletion of the first sale principle as well as the new interpretation of license fees when determining the customs value would impact enterprises relying on import and export of goods for their business and reduce the competitiveness of European companies at a time of economic uncertainty.

FTA therefore co-signed a joint letter of European business associations to all relevant European institutions in order not to change the respective present rules of the Customs Code. FTA will take further actions to effectively represent the interests of its members – although it is unlikely that the current drafts will be modified substantially.

Click here to read the joint statement: “EU businesses call for a Union Customs Code that continues to support the global supply chain, economic recovery and innovation” (September 2015).

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