TIACA has raised a warning flag over Europe’s Union Customs Code (UCC) which comes into effect in less than six months, saying in a note to its members that the UCC will have a “considerable impact on businesses importing into, or exporting from, the European Union (EU).”

The pending regulations set to come into effect in May 2016 look to impose an obligation on forwarders to provide financial guarantees such as to cover duty payments and for the use of temporary storage, an obligation which can be waived, but only on the basis of a specific authorisation to be granted by EU Member States.

“It currently appears that the appropriate systems will not be in place to provide, handle, and maintain those authorisations. It looks as if it will be virtually impossible to apply for a new guarantee or a waiver in time,” said Doug Brittin secretary general of The International Air Cargo Association (TIACA).

The move is expected to create a rush for Authorised Economic Operator (AEO) certifications as that particular accreditation offers a number of exemptions and waivers under the UCC which are only available to companies with AEO status. But shippers and forwarders are concerned that the accreditation system in place will not be able to handle the rush for AEO authorisations before the deadline.

“Discussions between Member States, trade and Commission are still ongoing on how to resolve the situation in a pragmatic manner, and TIACA is closely engaged in that process,” Brittin said. “But it is clear that, despite its long gestation, EU Member States will not be ready to implement the UCC in its entirety from next May and so transitional regulations will apply.

“It is going to be important to stay as up to date as possible and TIACA will be playing its part, both at discussion level with the regulators and by keeping members in touch with changes as they come up,” Brittin said, adding that the next issue of the organisation’s TIACA Times newsletter would take a more in-depth look at the UCC.