The implementation of the Union Customs Code (UCC) will bring substantial changes to customs valuation when importing into the EU as of 1 May 2016.
Some key impact areas are:
- abolishing the First Sale for Export (FSFE). The latest draft Implementation acts from July 2015 have language included on the possibility to use a Grandfathering Clause allowing to use FSFE until end 2017. Fast action is needed to determine if this can be secured.
- A new set of rules for including payments for Royalties and License fees into the customs duty base. In more situations the payments are expected to become dutiable. In particular for Trademark Royalties a considerable financial impact is expected. Managing this pro-actively is important.
Final versions of the Delegation and Implementation Acts are expected to be released in the coming weeks. They will address some of the key issues which still need to be outlined by the European Commission.