VELUX A/S (VELUX Group)

…1 Feedback on European Commission’s Call for Evidence for an Impact Assessment on the Reform of the Union Customs legislation The VELUX Group welcomes the opportunity to comment on the European Commission’s Impact Assessment on the Reform of the Union customs legislation. As outlined in the Call for Evidence, “the Union Customs Code (UCC) provides a comprehensive framework for customs rules and procedures in the EU customs territory, which are implemented in each Member State by customs authorities.

…rules and procedures in the EU customs territory, which are implemented in each Member State by customs authorities. Uniform implementation and enforcement of customs rules on the ground is a key for simplifying operations of law-abiding businesses." We further fully agree with the European Commission that the last decade has witnessed major changes in trade and technology (significantly increased volumes of trade, digital transition), which leads to the need for simplifying the customs environment for traders, by reducing administrative burden and unnecessary formalities. Clear requirements are key for customs acting “as one” and reducing varying interpretations Leaving some grey areas not clearly covered by the regulations, may indeed lead to different approaches, depending on the single country or sometimes even decision of individual representatives of the customs authorities.

…on the single country or sometimes even decision of individual representatives of the customs authorities. In our feedback we would like to draw the European Commission’s attention to the example of requiring signed invoice declarations in order to apply for reduced rates of anti-dumping duties. Although particular formalities are not laid down in relation to the form of signature of such declarations, some customs authorities still request from importers the originals of invoices with handwritten signatures, not accepting scans in PDF format. Due to the significantly increasing amount of realised import/export transactions and the common usage of IT systems which issue invoices automatically (e.g. using SAP Electronic Data Interchange (EDI)), such an approach creates a significant burden for companies.

(e.g. using SAP Electronic Data Interchange (EDI)), such an approach creates a significant burden for companies. Therefore, it is crucial to clearly define the requirements concerning signing invoice declarations and to ensure they are compatible with the current digital way global transactions and customs clearances are made, i.e. accepting them also in electronic form without handwritten signatures. While in some areas particular formalities concerning the acceptable form of signatures are stipulated in the Union Customs legislation, such as taking into account drawing up documents by electronic means, when it comes to applying for the individual anti-dumping duty rates, it is not explicitly defined what kind of signature is required.

…for the individual anti-dumping duty rates, it is not explicitly defined what kind of signature is required. Neither Regulation (EU) 2016/1036 on protection against dumped imports from countries not members of the European Union, nor Commission Implementing Regulations imposing anti-dumping duties on imports, refer to such requirements, defining only that the declaration shall be “dated and signed”. Not providing further details on the form of signature, leaves significant freedom for different interpretations, in some cases even leading customs authorities to demand original invoices with hand-written signatures from importers. National example: Opinion of the Polish Ministry of Finance We would like to give one concrete example as regards the need for clarifying the area of proper documentation concerning anti-dumping duties.

…concrete example as regards the need for clarifying the area of proper documentation concerning anti-dumping duties. During a recent webinar by the Department of Customs in the Polish Ministry of Finance, the following answer was given (free translation), when asked by one of the participants, if it is obligatory Ref. Ares(2022)6412030 - 16/09/2022 2 to present the original of invoice with declaration in order to apply for the reduced anti-dumping duty rate, in Q&A document1 published on 14.04.2022 (last Question no.5): “Invoices are the most popular commercial document in business relations. On their basis the legal act is documented, e.g. sale of goods in case of foreign transactions.

…in business relations. On their basis the legal act is documented, e.g. sale of goods in case of foreign transactions. As a rule, they are documents used in legal transactions between entrepreneurs, constituting their accounting records, necessary especially for the purpose of controlling the correctness of settlements between the buyer and the seller, as well as with the competent tax or customs authority. From the point of view of making customs declarations (for imports), the commercial invoice is the basis for determining, among others, the amount of customs duty. When considering the issue of the form of invoices, it should be noted that there are permissible any forms that guarantee authenticity of the origin, integrity of the content and legibility of invoices throughout the period of their storage.

…authenticity of the origin, integrity of the content and legibility of invoices throughout the period of their storage. When speaking of the authenticity of the origin of invoice, it is understood to mean the certainty of the identity, in particular, of the issuer of the invoice; and integrity of the content means that the data on invoice, that it should contain, has not been altered. Thus, invoices can be issued in different forms, such as paper or electronic (Electronic Data Interchange), but the parties to a given business transaction should use such IT or business solutions to ensure authenticity of the origin and integrity of the content of a given invoice.

…use such IT or business solutions to ensure authenticity of the origin and integrity of the content of a given invoice. At the time of import customs clearance (covering goods with customs procedure for release for free circulation), the importer or his representative should have at his disposal a commercial invoice either in paper form or in digitized form, e.g. scanned to PDF file and sent by electronic mail (e-mail), and make it available to the customs authority - in situation when it is necessary - in particular to carry out customs inspection activities. Concerning the signature of the invoice by the last intermediary company/ trading company, it should be indicated that the invoice should contain the signature of the issuer, which confirms the content of the presented actual state and that the facts stated in it took place.

…of the issuer, which confirms the content of the presented actual state and that the facts stated in it took place. In terms of anti-dumping duties, we are talking about the declaration / statement on the invoice, which contains the elements indicated in the relevant regulation on the establishment of a protective measure.” Thus, e.g. while Polish customs authorities are open to receive invoices with signed declarations scanned to PDF files, we could observe that in other countries such invoices were rejected. Way forward: Facing digital transition In recent years we have already seen a global trend for digitalization in the area of international trade, e.g. by implementing new forms of Certificates of Origin. The VELUX Group fully supports the need for reducing requirements of presenting originals of various customs documents with handwritten signatures.

…the need for reducing requirements of presenting originals of various customs documents with handwritten signatures. These could be limited by the customs authorities accepting electronic signatures as evidence for electronic invoices, additional undertakings or exemptions of signatures. Moreover, in our opinion the revised UCC should also clearly refer to the digital transition by taking into account common usage by the companies of the Electronic Data Interchange (EDI), a globally recognised method of exchanging structured messages between computer applications.

Data Interchange (EDI), a globally recognised method of exchanging structured messages between computer applications. Intercompany SAP EDI flow ensures paperless processing of invoices through the exchange of structured documents in electronic form according to pre-agreed 1 Source: https://puesc.gov.pl/aktualnosci?p_p_id=seaplfptlnewspublisher_WAR_seaplfptlnewspublisher&p_p_lifecycle=0&_seaplfptlnewspublisher_ WAR_seaplfptlnewspublisher_action=showArticle&_seaplfptlnewspublisher_WAR_seaplfptlnewspublisher_articleId=629156374 3 standards as they do not need to be signed by the issuer to ensure authenticity. Unlike PDF invoices sent by e-mail, EDI is traceable, secure and the transfer of data between systems works completely automatically without manual rewriting, which in principle technically does not allow handwritten method of signing.

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originalus šaltinis (PDF) ↗