The broker s certificate its annulment and suspension Azerbaijan

The broker's certificate; its annulment and suspension Azerbaijan, Baku, 7 -8 April 2016 Csaba Aros dr. , major National Tax and Customs Administration Hungary aros. csaba@nav. gov. hu

Difficulties… Before we start… • Short legislation (speaking 45 mins? ? ? ) either at EU and national level (HU) – practice • Importance and role of customs brokers – May 2016 • Change in the legislation – before May 2016 (current legislation) and after May 2016! – comparison

Theoretical basis Rules of representation in general 2 important questions: Who is the customs representative? Who can be customs representative? (UCC Article 5. , point 6. )„customs representative'' means any person appointed by another person to carry out the acts and formalities required under the customs legislation in his or her dealings with customs authorities (direct or indirect form) (AZ CC Article 21. 1 „Customs representative” every person for carrying out activities prescribed by this Code and other legislative acts on customs matters may appoint a customs representative. IMPORTANT! „ customs authorities ”: (UCC Article 5. , point 1) • customs administrations of the Member States , • other authorities empowered under national law to apply certain customs legislation (e. g. police) „customs legislation ”: (UCC Article 5. , point 2) • the Code and the provisions supplementing or implementing it adopted at Union or national level; • the Common Customs Tariff; • the legislation setting up a Union system of reliefs from customs duty; • international agreements containing customs provisions, insofar as they are applicable in the Union

Theoretical basis Rules of representation in general Who can be customs representative? Current rules: ANYONE BUT! customs representative has be established within the customs territory of the Union + MS may restrict the right to make customs declarations so that the representative must be a customs agent (no such restrictions in HU) After May 2016 (UCC): ANYONE + MS may determine the conditions under which a customs representative may provide services in the Member State where he or she is established HU: • AEO certificate (issued by other MS as well) • customs specialists (new) • customs brokers (new conditions regarding professional criterias) BUT! – lodging any applications to the customs authority– AEO, customs specialist - Appeals - AEO, customs specialist+ lawyer, lawyer’s office, lawyer on EU (community) legislation

Broker’s certificate - requirements • Only national legislation, no fee, no template, time for customs (21 days – 30 + 150 + 30) • Requirements now and later • • • HU tax identification number Registered company (Trade Licence Office) or self employment (small, one-person) businesses Activity of the customs brokers at the BCPs - does not disturb the traffic • Requirements now: • Customs broker companies + multinational companies with a department dealing with customs matters (Management level: customs broker certificate + 3 years experience employees: certificate of customs clearances) New professional requirements for the customs brokers – as planned, courses are to be launched from May – AEOC criterias + certificate of other MS is also acceptable in case of will of providing service in HU + legal person (at least one member/employee has certificate) •

Broker’s certificate - requirements • Requirements now: „Reliable customs client” • no criminal record • No debt (any debt!!!) at HU tax and customs authority • no debt in MS (only customs duty) – requests via Central Office • At the time of submitting the application, the company is not bankrupt • Database for companies • Requirements are to be proven every year (except for AEO – ex officio, until withdrawal) licence is valid for 3 years with the possibility of extension • 30 days before expirement – warning – client friendly AEO C financial solvency

Broker’s certificate - suspension • Current legislation: no suspension in HU • UCC Article 42: Each Member State shall provide for penalties for failure to comply with the customs legislation e. g. suspension or amendment of any authorisation held by the person concerned. SUSPENSION = SANCTION („penalty”)!!!, details in national legislations MAIN RULE in HU : If there is any infringement in connection with customs brokers certificate in relation with customs brokers activity, along with imposing customs penalty, the customs authority examines the need of withdrawing or suspending the certificate • • WITHDRAWAL: criminal proceeding (guilty), SUSPENSION: other infringements (before suspending the certificate, reasonable timeframe is given to restore the lawful state)

Broker’s certificate - annulment • Client friendly right – „Right to be heard” (HU) – before any detrimental measures taken by the customs authority Which are the cases of annulment? 1. Any condition of obtaining the certificate has been „violated” (eg. Reliability, bankrupcy…) – non-compliance with the requirements BUT ! an infringement of minor importance - in relation to the number or size of the related operations (HU: customs penalty in the last 3 years < 20 % of the customs duty paid) + the customs authority has no doubt as to the good faith of the applicant. 2. Serious or repeated infringements

Broker’s certificate - annulment Serious infringement (over the last 3 years): • • In customs related matters customs penalty (65. 000 EUR) In relation with falsifying customs registries, bills etc. - customs penalty Repeated infringement (over the last 3 years): • more than 10 times penalty (any) in relation with economic activity Conseqences: - No possibility to apply for new certificate for 6 months To finish ongoing clearances within 30 days

Other issues • • From May 2016 – existing customs broker certificates are expiring in HU – new licencing procedure Competence for the licencing procedure – according to the headquaters Responsibility of the customs brokers Comparison of customs brokers and customs specialists Customs specialist: most qualified professionals, higher education qualification or at least 10 years experience in customs matters • Good political and historical relationship between the two countries (middle age)

Life at the Hungarian Customs Administration

Passing-out Ceremony Police Academy

881 132, 9 millióFt =3 million EUR

Thank you for you kind attention! Diqqətinizə görə təşəkkür edirik Csaba Aros dr. , major National Tax and Customs Administration Hungary aros. csaba@nav. gov. hu Q&A