YOUR CUSTOMS COMPETENCE CENTER IN BELGIUM?

NOTHING BUT BENEFITS!

14/09/2018

• “Project 3C: A key initiative for GA C&E” Werner Rens, General Counsellor Marketing, GA C&E

Michel Lequeu, Economic Support, GA C&ESven Van der Biest, Project Manager, Economic Support, GA C&E

• “Team Tariff: Towards a dynamic service”

Brigitte Vandenbussche, Counsellor, Team leader Tariff, GA C&E

Kurt Samaey, Team member, Expert, GA C&E

• “A model for cooperation between GA C&E and GA Taxes (VAT)”Tim Van Sant, Cabinet Minister of Finance

3 PRESENTATIONS

PROJECT 3C: A KEY INITIATIVE FOR GA C&E!

WERNER RENSMICHEL LEQUEUSVEN VAN DER BIEST

4

CONTENT

• What are Customs Competence Centers (3C)?

• Why opt for an own 3C?

• Why opt for a 3C in Belgium?

• Project 3C: A key initiative for GA C&E!

5

WHAT?

A Customs Competence Center (3C or triple C) is that entitywithin the organisational structure of a company whichprovides the high quality management and coordination of customs and related affairs

Thus: - shared service that provides in expertise regarding customsand related activities (e.g. excises, VAT, …)

- sometimes part of a broader shared service center

- internal “service provider” within the organisation

6

WHY OPT FOR AN OWN 3C?

A 3C provides :

• knowledge building and thorough “in-house expertise”

• economies of scale

• efficiency and effectiveness

• increased compliance

• …

7

WHY OPT FOR A 3C IN BELGIUM?

Why not???

Wage handicap…

However: - Belgium is closing the gap with its neighbouringcountries

- only relative importance for intellectual work: “quality prevails over quantity”

8

WHY OPT FOR A 3C IN BELGIUM?

Belgium has key assets:

• Geographical position in Europe

• Performant and dense logistic landscape

• Knowhow in logistics, supply chains and customsprocedures

• Strategic “policy” center

(presence of European and international institutions)

9

A KEY INITIATIVE BY BELGIAN CUSTOMS !

3C

Customsknowledge and

training

System BasedApproach

Optimal IT systems

Multidisciplinaryconsultation

Support andguidance

10

A KEY INITIATIVE BY BELGIAN CUSTOMS !

OPERATIONAL PLAN 2018

“A transversal knowledge center for customs, excises and VAT will becomeoperational in 2018”

PROJECT 3C

A SERVICE MODEL TO SUPPORT CUSTOMS COMPETENCE CENTERS IN BELGIUM

11

A KEY INITIATIVE BY BELGIAN CUSTOMS !

PROJECT 3C

• Official FPS Finance project

• Business Case approved by management committee

• 3C label

12

A KEY INITIATIVE BY BELGIAN CUSTOMS !

PROJECT 3C

= strong commitment by GA C&E to offer economic operators who(intend to) have a 3C in Belgium a guaranteed high service level of support and knowledge sharing for the following domains

Excises

Non fiscal

TariffOrigin

Customs value

VAT

Supply Chains

13

VISUAL

AAF

3C

3C

3C

3C

3C

FPS FINANCE GA C&E

ECONOMICSUPPORT

GA TAXESVAT

LEGISLATION

VAT L2

Excises L2

Non fiscal L2

Tariff L2

Origin L2

Value L2

Excises L1

Non fiscal L1

Tariff L1

Origin L1

Value L1

VAT L1

Supply Chains

PUBLIC SECTOR PRIVATE SECTOR

OPERATIONS

TEAM TARIFF:TOWARDS A DYNAMIC SERVICE

BRIGITTE VANDENBUSSCHEKURT SAMAEY

3C

Tariff

TARIFF CLASSIFICATION – NOMENCLATURE OF GOODS

✓ Global trade = flow of goods

✓ In between 50 and 100 M type of goods

✓ Need to list goods✓ Harmonized System: >190 countries

✓ Combined Nomenclature (CN): EU

✓ TARIC

In good

faith

Client-

oriented

service

Center of

expertise

BTI – 3C

TARIFF CLASSIFICATION – NOMENCLATURE OF GOODS

Companies often don’t know how to classify their goods in regard to tariff.

Classifying goods according to the Nomenclaturerequires profound knowledge and experience in

multiple disciplines. Therefore tariff experts play a crucial role.

IMPORTANCE OF A CORRECT TARIFF CLASSIFICATION

A correct tariff classification is important for:

• The allocation of an AEO authorisation or advantages related to simpifiedcustoms procedures: carefully establish and document the classificationprocess.

• Being compliant with fiscal and non-fiscal rights and duties for the import and export of goods.

SCOPE OF TARIFF CLASSIFICATION

FISCAL

Taxes due at import

Tariff advantagese.g.

preferences, tariffsuspensions, tariff

quotas

VAT andExcises

Anti-dumping measures,

countervailingduties …

SCOPE OF TARIFF CLASSIFICATION

NON-FISCAL

Trade restrictionsand control

measures, e.g. authorisations,

sanitary measures, import embargoes

Provision of preferential and non-

preferential originwithin the frameworkof trade agreements

Statisticsforeign trade

BINDING TARIFF INFORMATION (BTI DECISION)

• BTI decision = a binding decision in which the customs authorities define thetariff classification of a certain good

• Based on information provided by the applicant

• Period of validity of 3 years

• Legal obligation for companies to “register” their BTI decisions and to use themwhen importing and exporting the good classified by that BTI

• Binding to all customs authorities of the Customs Union and the holder of theBTI decision

ISSUANCE OF A BTI

Tailoredadvice prior

to theissuance of

the BTI

In mutualtrust

Correctlyapplying

legislation

FastFree of charge

Lab analysis

Interaction

between

customs &

companies

CONTACT

• Brigitte VandenbusscheCounsellor – team leader

• Kurt SamaeyExpert – team member

• FOD Financiën | Douane en Accijnzen | OEO - EWR | TariefSPF Finances | Douanes et Accises | EOS - ELR | Tarif

Koning Albert II-laan 33, bus 37 1030 BrusselBoulevard du Roi Albert II 33, boîte 37 1030 Bruxelles

• Phone : 0257 530 76 | Service : 0257 631 61

da.oeo.dt.ca@minfin.fed.beda.eos.dt.ac@minfin.fed.be

A COOPERATION MODEL FOR THE GA C&A AND GA TAXES (VAT)

TIM VAN SANT

Initiative of the Minister of Finances

14/09/2018 Kabinet Minister van Financiën Johan VAN OVERTVELDT 26

• Management plan 2018: “A transversal knowledge

center concerning customs, excises, VAT at import and

export (…) will become operational in 2018.”

• A cooperation model for the GA C&A and the GA

Taxes (VAT) is being developped which is based on

efficient communication channels and mutual sharing

of expertise

• Both based on own initiatives as well as on request of

the private sector

Goals

14/09/2018 Kabinet Minister van Financiën Johan VAN OVERTVELDT 27

• To eliminate existing barriers between GA C&A and GA

Taxes

• To improve the cooperation between both GA’s

• To facilitate solutions for issues that the private sector is

facing

• Not purely operational, but also policy-based

Concrete examples - policy

14/09/2018 Kabinet Minister van Financiën Johan VAN OVERTVELDT 28

• Penalty policy and interests on overdue payments

• Tariffs

• New circular letter for export

• New European regulations for e-commerce

Concrete examples - operational

14/09/2018 Kabinet Minister van Financiën Johan VAN OVERTVELDT 29

• Controlling invoices / taxfree shopping cheques of

departing travellers

• Centralised clearance

• Procedure 42

• Applying judgement C-288/16, 29th of June 2017, L.C.:

logistics services concerning import and export

Judgement L.C.

14/09/2018 Kabinet Minister van Financiën Johan VAN OVERTVELDT 30

• A Belgian taxable person A has sold goods to a

taxable person B, registered in China.

• For the transport of the goods to the location of B in

China, A is relying on a transport company X, who is

registered in Belgium.

• Company X, in turn, subcontracts the transport to

transport company Y, who is also registered in Belgium.

• Invoice A-B?

• Invoice X-A?

• Invoice Y-X?

Q&A