## Global updates

### WTO Trade Facilitation Agreement (WTO TFA) Update
Following ratification of the Trade Facilitation Agreement by Rwanda, Oman, Chad, and Jordan, the TFA officially entered into force.  
The Trade Facilitation Agreement (TFA) contains provisions for expediting the movement, release, and clearance of goods at the border, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. Of specific relevance are the articles that directly relate to IT including formalities and customs procedures including the use of Single Windows to deliver information to multiple government agencies and other interested parties just once, thus reducing the burden on business.

### EU updates

#### MASP latest update
The first new project introduced in 2017 is the REX project. The REX system anticipates registering suppliers from various countries in a single European database, which will simplify proving the origin of goods instead of using current origin documents such as FORMA, thereby making use of preferential tariffs. This project aims to simplify the use of preferential tariffs, reduce administrative burdens, and combat fraud. REX will also be applicable for shipments to and from Switzerland and Norway, and for the re-consignor scenarios when certificates are replaced in the EU by a new certificate of origin. As the agreement between the EU and Switzerland and Norway has not yet been concluded, REX cannot be used for these countries.
You can check the latest MASP (Multi-Annual Strategic Plan) at [this location](https://ec.europa.eu/taxation_customs/general-information-customs/electronic-customs_en). This will reflect the IT projects of the UCC (Union Customs Code). Currently, further discussions are taking place with the Member States on the rollout of the UCC, where Member States are aligning their national plans to the UCC changes. More details are expected to be revealed in the coming months/year.

#### REX
![Image5]
Following codes are to be used for the REX certificates. The date of the document that proves the origin also needs to be sent next to the code. 
- U164: Statement of origin made out by a Registered Exporter in the framework of GSP for a total value of originating products consigned not exceeding €6000.
- U165: Statement of origin made out by a Registered Exporter in the framework of GSP for a total value of originating products consigned exceeding €6000.
- U166: Statement of origin made out by a non-registered Exporter in the framework of GSP for a total value of originating products consigned not exceeding €6000.
- U167: Statement of origin made out by a non-registered EU re-consignor in the framework of GSP for a total value of originating products consigned exceeding €6000.
Most countries also ask to send the REX identification with (produced document) code C100. 
REX is introduced gradually in 2017, 2018, 2019, and 2020. Countries can start in the beginning of each year and have one year to comply, meaning that traders have one year to get registered, and both new and old systems can work in parallel.

REX is currently live with India, Laos, Kenya, Nepal, Zambia, Comoros Islands & Bhutan. Traders can verify REX numbers on the [following website](http://ec.europa.eu/taxation_customs/dds2/eos/rex_validation.jsp).

### EU Country updates
Some of the key changes in early 2017:
- Since January 1, the EORI number is required for the declaring party (box 14) and the consignee (box 8) of the PLDA import declaration.
- The Belgian Customs Authorities will foresee the DV1 data as part of the PLDA import declaration. The exact go-live date is to be announced and the use is voluntary in the first phase.
- Also, from February 2017, the name of the exporter needs to be sent in the Customs office field of the produced document type Y040, which is already used for the VAT number.
Customs is also working on a new solution for periodic (e.g., monthly) declarations in the form of electronic messages. The specifications still need to be published, with timing expected to start testing mid-2018.

#### France
French Customs is planning a significant change for NCTS, or called “NSTI” in France. This is planned to go live in January 2018. A new certification will be required for software providers. A decision needs to be made about the rollout approach (big bang or progressive). Some key changes are:
- The message format will be XML.
- Extra messages for NCTS arrival, such as IE43/IE44.
- Extra control notification message IE60.

ATLAS 8.7 only requires re-certification for the EXS (Exit Summary Declaration), before March 26, 2017.  
AES 2.4 needs to be certified between April 2017 and March 2018. This is the last release that supports both.

#### Germany
Apart from AGS3, the maritime single window is further rolled out in 2017, mainly impacting the carriers. Some changes to the NCTS were planned for March 2017, but this has been postponed until further notice: the main change is the introduction of the IE80 message for the presentation of the goods in case of a declaration before the goods are available.
As the Dutch tariff system called DTV is not changed yet for REX, both the REX codes and the existing codes such as N865 for FORMA need to be used.
For REX, some changes in GPA (“Geautomatiseerde Periodieke Aangifte”) have been announced:
- The date of the origin document, followed by RX needs to be in field E6.
- In fields H13-H16, the indicator C100 needs to be used (FYI: C100 is also the code in the declaration to send the REX ID).
- Note: you need to store the REX identification number itself also in the stock administration.
- The U164-U167 codes are optional in H13-H16, but they can be mentioned. This is not allowed in the extra K-block for extra fields. So other certificates will have to move to K-block in case all positions are filled.
- N865 is also required in H13-H16 even when REX codes are used in H13-H16, as the Dutch system is not fully adapted to REX.
There are no plans yet to replace the current GPA system with AGS4. The approach will be evaluated by Dutch Customs again.

#### Norway
From January 1st, 2017, import VAT cannot be reported anymore via the Customs declaration, but must be reported directly to the VAT Authorities.

#### Poland
There is no date yet for introducing the new import system.

#### Sweden
New XML messages are being introduced for bonded warehouse-related transactions. The exact rollout is not defined in detail yet by Swedish Customs. The last part of the specifications was just published in February 2017.
On February 1, a new version of the UTL message is planned. This is only required for customers with a new bonded warehouse license.

Parliament has decided to introduce a new excise tax - tax on certain chemicals in electronics. The new tax aims to reduce the incidence, spread, and exposure to hazardous substances, flame retardants, in people's homes. The purpose is not to repeal the use of flame retardants but instead to encourage the use of more environmentally and health-friendly alternatives. The new provisions will affect companies that commercially manufacture, import, or deal in electronic goods. The provisions in the Act on tax on certain chemicals in electronics (LSKE). Businesses can register for excise duty with the Swedish Tax Agency.
They must declare the document code 9014 to indicate that they are registered and pay taxes directly to the Tax Agency. If they are not registered for excise duty, taxes should be paid to Customs. To declare this tax, a new “avgiftskod” 359 will be introduced.
If you must pay the fee to us, there is an opportunity to get a reduction in excise duty. It is clear from the law what to do. Complying with the requirements of the Act Section 5 should be declared document code 9015, and the fee is reduced by 50%. If the requirements of both Sections 5 and 6 are met, the fee can be reduced by 90%, and document code 9016 should be declared.

#### Switzerland
No specific changes are planned, except for some updates of code lists. In the coming years, the system for electronic declarations will be renewed.

#### UK
### Customs Declaration Services (CDS) Update
CDS is the customs declaration system in the UK replacing the current CHIEF system which handles import and export declaration processing, with a current implementation date starting towards the end of 2018, although it may be possible for early adopters to take part in pilot programs.
HMRC has run further meetings with software suppliers and stakeholders, and while we still await the full specifications, they are hoped to materialize by the end of this month.  
The basis of the declaration will be the WCO data model 3.6 as adapted by the UCC but with any UK specific changes. There are a number of areas that either do not naturally exist or are handled differently in the data model and/or the existing CDS product such as value build-up or export consolidation as but just two examples. This means that direct correlation between existing CHIEF and the new CDS will prove problematic, and therefore change is inevitable.
Customs Information Paper 57 (2016) confirmed that in future applications for Transfer of Residence (ToR) relief will need to be made via an online application, signaling the end of the C3, C5, and C104a forms.

### REX Reminder
The online application should be made prior to shipping any consignments of household effects and personal property to the UK. If HMRC allows the application, they will send the applicant a unique declaration reference to use when making the import declaration using CPC 40 00 C01 as a TOR01 AI Statement.

### New Wine Tariff Codes causes confusion
Please be aware of the changes in the Harmonised System regarding the classification codes for wine, which may affect for example boxes of wine.
Prior to 2017, the codes were split into 2:
- 2204 21 In containers holding 2 litres or less.
- 2204 29 Other.
From 1st January, heading 2204 has been split as follows:
- 2204 21 In containers holding 2 litres or less.
- 2204 22 In containers holding more than 2 litres but not more than 10 litres.
- 2204 29 Other.
As the old commodity codes still exist, it may not be obvious that a change is necessary. This also caused difficulties in EMCS, where the new codes were not available across the EU for the first few weeks of 2017.

### Export Control Order 2008 Updated
The Export Control Organisation (ECO) has amended the Export Control Order 2008 with additional changes being made to schedules 2, 3, and 5 of the order, which cover military goods, software and technology subject to export controls, firearms, and Information security items. Many of these changes have arisen from amendments made to the EU Common Military List following agreement under the Wassenaar Arrangement export control regime. 
The new consolidated list can be found here.