New EU Customs Code to bring about major changes for Romanian companies

Starting May 1, 2016, the European Union’s Customs Code and its implementing provisions and guidelines will be applicable in their entirety in Romania, according to a PwC Romania conference where the major changes brought about by the new customs code where looked at based on their impact on Romanian companies and the ways in which these companies will have to react and adapt to changes.

Speaking about the need for coordinating “the most important commercial block in the world, the collection of customs taxes, which make up approximately 15 percent of the total EU budget, but also the annual processing of approximately 280 million customs statements,” Ruud Tusveld, customs consultancy services for Europe, Middle East and Africa leader within PwC, said that “it implies a wide process of modernising the customs authorities of the 28 member states.” Furthermore, “an important part of this modernisation is represented by e-customs, from which a better cooperation between customs and ANAF, an increase in collecting and in the fight against fraud, last but not least, a partnership with good faith operators that would facilitate trade,” he added.

In terms of the predictability and practical applicability of the new customs code, a base legal package approximately 1,000 pages long at the moment, a number of ANAF orders are expected to be issued in the following period. “That is why, we’ve proposed the creation of a working group between representatives of the business environment and those of Romanian customs services,” stated Daniel Anghel, tax services partner, CEE indirect tax leader, PwC Romania.

Throughout the conference, the issue of transfer prices was discussed as well. When it comes to the problem of “transfer prices and customs value it’s important that economic operators be able to benefit from a unitary approach, based on points of views expressed by the fiscal authority and the customs authority. For example, such an approach is necessary before issuing an advance price accord,” added Daniela Dinu, fiscal consultancy director, PwC Romania.

The new customs code will reorganise the customs regimes in a new structure. Some will disappear, while some will continue under different names, says the PwC press release. As such, after May 1 correlating the provisions of the Fiscal code with the new special regimes in the EU Customs code will be necessary. Moreover, the new definition of the exporter from the customs legislation will have to be correlated with the VAT legislation, so that non-resident operators from outside the EU will no longer be able to conduct export operations. “An important aspect that we want to bring to the attention of companies is regarding royalties and license rights, which, starting May 1, 2016, will have to be included more often in the customs value,” stated Lorina Darmanescu, fiscal consultancy senior manager, PwC Romania.

Given the large number of changes provided for in the EU customs code and its implementing guidelines, and the fact that the changes have led to a series of interpretations, “we consider it necessary for the General Customs Directorate to react and issue the necessary clarifications that will give the Romanian economic operators an as good as possible understanding of the new changes,” further stated Anghel.

Andreea Tint