Veracis Customs Consultancy Home page

The Authorised Economic Operator (AEO) - the EU's answer to meet the USA's own import controls - is being rolled out. Both large and small companies have gone through the certification process, and now enjoy trading with greater security and customs facilitation. Veracis can help your business become an AEO - » more about AEO

Veracis works with the highly regarded Business Change Consultancy (BCC) amongst others in providing a comprehensive security assessment enabling you to meet HMRC Safety and Security standards. BCC specialises in both security and in cost reduction efficiencies in the supply chain, and to that end works both with and within UK government departments.

We have experience in ISO standards across Quality Management, IT Security and Supply Chain Security (9001, 27001 and 28001) and can advise on their relevance to AEO or on actual implementation.

Veracis provides risk mitigation to companies involved in Trading and Wholesaling. A systematic process is applied to Due Diligence, compliance testing and transaction verification. Expert support and advice is provided to companies dealing with investigation by Her Majesty's Revenue and Customs.
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NEWS & UPDATES
04/05/12	Mutual Recognition is here! The EU and the USA have formally signed off recognising each other's safe traders (AEOs & C-TPATs), who will enjoy lower costs, simplified procedures and greater predictability in their transatlantic activities & benefit from faster controls and reduced administration for customs clearance. The joint decision will start to be implemented from 1 July 2012. Read the full US CBP & EC press releases. This is especially important to any company exporting to the USA and whose goods could suffer from time delays when sidelined away from fast-track clearance.
01/05/12	At the recent Multimodal Exhibition, seminar speakers Dave O'Gara (HMRC) & Arne Mielken (Deloitte) confirmed that UK has only 300 of the 10,000 EU AEOs. To worsen the situation, HMRC is also tougher on applicants - approving 27% less than the German authorities do. When, say, a US trader is seeking a compliant European partner (language & culture differences are just not a factor any more) – why will they not choose an EU AEO competitor instead of a UK company? Veracis is concerned that we are relying on a “special relationship” that is no longer valid in today's supply chain realities.
20/03/12	It is our understanding that HMRC are about to issue letters nationwide to relevant traders that they cannot buy small parcels of stock below the reverse charge levels from other wholesalers, severely restricting the number of pieces which can be bought from retail outlets. Preliminary view from Counsel is that there maybe grounds to challenge this – see our VAT page for more information.
19/03/12	In a reflection of our own concerns (27/10/11), we see that the last JCCC Customs Group "noted the high number of approvals in Germany and asked whether there was a specific reason why German traders were attracted to the scheme in comparison to other traders in OMS. (The trade also thought the number of AEO rejections in the UK looked like a high percentage when compared with OMS, could HMRC also comment on this?)". Results of their investigation will be reported at the next meeting in April.
20/02/12	The Modernised Customs Code is now in reality postponed, with the formal proposals to "recast" (replace) it with the Union Customs Code. The new recasting "preserves the objectives of Regulation (EC) No 450/2008" (the MCC), in the context of the Treaty of Lisbon and evolving business processes - and a timescale is again laid down in terms of "the new electronic processing environment will be operational at the latest by 31 December 2020".
31/01/12	Mutual Recognition with USA is nearly here! US sources claim that exporters to USA will face more rigorous inspection regimes and potential delays, with associated port charges. However, as the recent European Commission's press release says: "The mutual recognition decision will bring huge benefits for certified businesses and traders [AEOs], when it will become operational in June 2012, in terms of reduced costs and time delays, less red tape, greater ease and predictability in the movement of their goods, and new trade opportunities."
22/11/11	EU is concerned about the MCCIP deadline, impact on SMEs & AEO benefits; the European Parliament approved a report on customs modernisation for auctioning by the EC. This includes: “23. … taking into account the difficulties experienced, mainly in relation to the development of IT systems, to explore the possibilities of considering 2016 as a new deadline for the uniform implementation of the MCC” “29. … is concerned, however, that considerable investments necessary to obtain AEO status might be a serious obstacle for traders, especially SMEs; (here at least, is somewhere that Veracis can help you!) “30. … propose additional concrete benefits which could be granted to traders holding AEO certificates … for example by relieving AEOs, as a rule, from the requirement to lodge a security of customs debt, and facilitating the payment of customs duties and VAT;” Remember that the delay will not change USA’s tightening of import restrictions and its and China’s moves towards Mutual Recognition, or the cash benefits of CT waiver availability to you.
27/10/11	What does the EC register of AEOs tell us? Dissecting the data reveals that Germany is swiftly increasing its “share” of companies certified as AEO to nearly half the 7,000 total across the EU; that as a result most other countries apart from Poland (whose share has doubled to 6%) have seen their share fall – UK’s by half over the last three years to just over 3%. Is “UK plc” losing out? What should HMRC do to rectify this situation? Is this a level playing field? We know you have to work very hard to gain accreditation and we will support you as efficiently as we can.
26/08/11	Veracis is pleased to welcome into the team, Geoff Whittingham - former HMRC International Trade Development Liaison Officer and senior AEO specialist. Geoff's experience in establishing HMRC's AEO audit processes will prove invaluable to Veracis and our clients.
23/06/11	At last – a timeline for USA mutual recognition? A “Joint statement on supply-chain security”was signed 23 June 2011 by the EC and Janet Napolitano, Secretary for Homeland Security. Actions include: • Implement the mutual recognition of the EU (AEO) and U.S. (C-TPAT) trade partnership programmes by end October 2011 contingent upon the completion of the agreed steps and work programme. • Implement global guidelines under the WCO SAFE Framework of Standards for AEO programmes and mutual recognition. Explore opportunities for a global identification number for mutual recognition purposes.
16/05/11	Implementation of mutual recognition of AEOs between the EU and Japan will begin on 24th May 2011. The European Commission states that “Trade that is coming from EU AEO exporters or going to EU AEO importers will benefit at the stage of the Japanese import / export declaration.” See the EC statement Agreements withChina andUSA will follow soon and a two tier system will start to become noticeable – for non AEOs!
30/11/10	CASH FLOW BENEFIT ON CTWAIVERS CONFIRMED FOR AEOs! New CIP (10) 81 issued 30^th November confirms that, “provided businesses that have AEOC or AEOF status can satisfy the sufficient experience and command of transport operations criteria for transit, these AEOs will be entitled to qualify for a transit guarantee waiver or guarantee reduction.” Veracis reminds you that this is just a taster of the benefits available to AEOs when the MCC is fully implemented – don’t get caught in the rush and have to tie up your cash in the MCC’s mandatory guarantee regime.
10/10/10	AEO LEADS TO CASH FLOW BENEFIT FOR COMMUNITY TRANSIT GUARANTEES HMRC have advised us that if you are now getting 50% or 70% waivers, once you obtain AEO status you can apply for a 100 per cent waiver. They are about to issue a Customs Information Paper (CIP) setting out the terms of these waivers. It will be an immediate cash flow benefit to Freight Agents, particularly those around the UK airports who move goods under CT guarantees, and ERTS or Bonded Warehouse operators. For more information see our AEO page or contact us.
04/08/10	Customs simplifications and full certificates: the EU are planning to add a requirement of professional competence within the implementation of the Modernised Customs Code. This will be an addition to the current requirements of compliance, record keeping and solvency! HMRC are seeking comments about the proposed new criterion.