EC's Modernized Customs Code to Soon Enter Into Force

The MCC revises the Community Customs Code of 1992 in order to streamline customs procedures, make updates in light of recent legal changes within the EC and internationally, and take into account the fact that electronic declarations and processing are the rule and paper-based declarations/processing are the exception.

One to Five Year Implementation Delay Possible

Although the MCC will enter into force 20 days after June 4, 2008, provisions to implement it are still necessary.

These are expected to be adopted at the end of 2008 or the beginning of 2009, but in any case, will likely only be applicable between 1-5 years after the MCC's entry into force.

(The EC has previously explained that the imprecise implementation date is due to uncertainty about the availability of IT (information technology) systems at the EC level and other factors.)

Highlights of MCC

The following are highlights of the MCC:

Reduction of customs procedures. The MCC is meant to streamline and reduce the number of customs procedures and make it easier to keep track of goods. The MCC states that customs procedures should be merged or aligned and the number of procedures reduced to those that are economically justified, with a view to increasing the competitiveness of business.

Progressive computerization. The MCC will ensure progressive computerization of all customs formalities, with a goal of a completely paperless environment for customs and trade.

E-filing as a rule. The MCC introduces e-filing of customs declarations and accompanying documents as the rule and provides for only one type of simplified declaration.

Centralized clearance. The MCC promotes the concept of centralized clearance, under which authorized traders will be able to declare goods electronically and pay their customs duties at the place where they are established, irrespective of the Member State in which the goods enter, leave, or are consumed.

"Single window" and "one-stop-shop" concepts. The MCC develops concepts, under which economic operators will give information on goods to only one contact point ("single window"), even if the data should reach different administrations/agencies, so that controls on them for various purposes (customs, environmental, etc.) are performed at the same time and at the same place ("one-stop-shop").

Proper balance between security and trade facilitation. The MCC calls for finding the "proper balance" between security and trade facilitation.

(The EC has previously noted that the MCC "absorbs" and builds upon the requirements of EC Regulation No. 648/2005 on security issues (Authorized Economic Operator (AEO) status, pre-arrival and pre-departure information, and the risk management framework), which were adopted before the MCC because of the urgency to secure the supply chain.)

Topics Covered in the MCC

Among the numerous provisions in the MCC are the following (partial list):

(See ITT's Online Archives or 03/03/08 news, 08030315, for BP summary of the European Parliament approving the MCC and adopting a related e-customs Decision.)

EC Regulation laying down the MCC (No. 450/2008, dated 04/23/08) available at http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:145:0001:0064:EN:PDF

EC FAQ on the MCC (MEMO/08/01, dated 02/19/08) available at http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/101&format=HTML&aged=0&language=en&guiLanguage=en