2007 H.M. Customs Changes

Tariff Changes - January 2007

As you may be aware, there will be some significant changes to the Customs Tariff for 2007.

However, most of the changes are to the actual tariff numbers themselves, rather than the actual duty rate. Full correlation tables have been published by Customs and are available at the following link:

UK Trade Info

It should be noted that these tables relate to the 8 digit numbers and the full 10 digit numbers we need will be available once the 2007 printed tariffs are released.

This will mean that all your records of tariff headings will need to be updated.

Why are these changes happening ? This is as a direct result of EU Commission and World Customs Organisation changes. The 6-digit Harmonised System (the coding structure used by the vast majority of trading nations throughout the world) is usually amended / updated in 5-year cycles, to reflect the changes and developments of products traded. The next update being in 2007. The Combined Nomenclature (the 8 digit EU trade classification system and the UK Tariff (10 Digits) are both based on this Harmonised System and are therefore all effected in turn.

SAD Harmonisation (SAD H) - July 2007

In addition to these tariff heading changes, there will also be further additional changes to the SAD during 2007. This is to bring us further in line with other EU members Again this is driven by the EU and involves a number of changes to the data and the boxes for completion on the C88.

Testing will begin in March 2007, culminating in an 'H' Day (Harmonisation Day) on 1st July 2007.

There will be specific changes to the CPC's that we have been using, but these will not effect any actual authorisations that you currently hold ( IPR / OPR / NES / CFSP etc) but may involve some amendments and renewals.

The following web-links may be of interest :

Download SAD changes briefing document

i ) Link to CHIEF changes - brief explanation of which boxes will be changing:

Chief Changes HMRC

ii ) Link to Tariff changes - an in depth explanation of changes to data to be input for entry:

Tariff Changes HMRC

2008 Authorised Economic Operator Status - (AEO) - Applications - July 2007

Customs are currently drafting legislation for AEO status, which will enable importers/agents who can demonstrate security in their supply chains, to benefit from certain Customs simplifications and facilitations. This is mainly due to the heightened security over terrorism and will for example, allow a faster release, where an AEO's cargo has been selected for examination. This is due to come into force January 2008, with applications from July 2007.

Full details of the criteria that have to be met to become an AEO are to be published shortly. Criteria will include an appropriate record of customs compliance, satisfactory management systems that allow appropriate customs controls and proven solvency.

Additionally, for security and safety, it will include details of the security and safety standards to be met.

We would suggest that existing standards such as CT-PAT and CFSP are likely to be recognised as significant steps towards an AEO qualifying standard.

The following Customs link will give you some of the current FAQ's on AEO status.

AEO FAQ's

Allport intend to be at the forefront of this development and have applied to act as a pilot for this new scheme. As more details of the scheme become known, then we will update you further.

Future Changes / Local Seminars

There are other changes taking place in the years ahead and we will continue to keep you advised of these as they are announced.

In early 2007 we plan to hold some local seminars where we plan to give you more information into some of these changes and also to outline further details of those mentioned above.

In the coming months, we will also be sending out some information sheets that will contain details of the specific changes we will be asking you about, or specific items that you may need to take action on.

In the meantime, if you have any questions on these or other matters, please speak with your local Allport contact.