Problems remain to be resolved as member states prepare to adopt the Regulation introducing the Economic Operators Registration and Information (EORI) Number at the SAD Working Group meeting on 25 April. Businesses have once again been left concerned that a determination to reach any agreement at the expense of the detail leaves difficult issues to be dealt with by non-binding guidance.
The majority of the outstanding questions revolve around the term 'establishment'. The draft Commission Regulation focuses on the individual registering for EORI in the member state in which he is established. Yet the Community Customs Code only provides for rules in respect of businesses established in the Community. At the eleventh hour the Commission has put the legal point this raises to its legal services for advice. Additionally, some businesses, through a legal individual in one member state, will be established for Customs purposes in other member states as well and therefore have a number of existing reference numbers. Since the existing numbering systems for member states will continue (if they conform to the convention specified) each of these will be valid EORIs. This is at odds with the legislation that says each economic operator and other persons shall have only one EORI number!
The Commission are taking a pragmatic view and accept that it will take time for the proliferation of numbers that a business has to reduce to one, and that for the time being a business can continue to use all its existing numbers. Nevertheless where a business decides to engage in Customs activities in another member state where it does not have an existing reference it should choose to use one of its existing EORIs and then stick to it. Since many existing reference numbers reflect VAT numbers in the issuing member state there was some concern whether, for example, UK Customs would accept an Italian EORI if the UK VAT number had not been specified. The Commission have recognised that this may have to be the case initially but ultimately each company should register each of its VAT numbers under its EORI and a Customs Authority polling the system should automatically pick the appropriate one. The Customs Authority should also be able to tell if the company is an Authorised Economic Operator.
An amendment to allow a company simply to enter its EORI and not in addition the full name and address of the Principal in Box 50 of the Customs Declaration has been passed over. Instead the proposed amendment states that member states "may waive the obligation". The Commission, however, believes few will be ready to do so. Other vague terms also persist but will be left to guidance that the Commission says will interpret some of the more difficult concepts for business. This draft guidance will be put to the Trade Contact Group in June.
Return to SITPRO News: Issue 64, Spring 2008
