Journal

Books on Customs and Trade Compliance can provide great guidance in planning your future activities (2023 and beyond). Authors of the books and also their readers were exchanging distilled insights … and tips in this regard during the 3rd Global Webinar ‘Book on Customs’, which took place on the 15th of December, 2022. We overview some of the thoughts and practical tips shared.

News at a glance: agreement on the "Single Market" with the EU; adoption of the full base of European technical standards; Licensing of goods and quotas for 2023; the CEPA between Ukraine and … UAE; and more updates!

In mid-December 2022, negotiators of the Council and the European Parliament reached an agreement of a provisional and conditional nature on the Carbon Border Adjustment Mechanism (CBAM). The … agreement needs to be confirmed by ambassadors of the EU member states, and by the European Parliament, and adopted by both institutions before it is final. However, according to the agreed timetable, the transition period for its implementation is set to come into force in October 2023. What should companies do?

News in week 4: International Customs Day 2023 and the theme of the year “Nurturing the Next Generation: Promoting a Culture of Knowledge-sharing and Professional Pride in Customs”; REX system … in EU trade with Côte d’Ivoire and Madagascar; antidumping updates: expiry reviews, new exporting producer treatment; and more news.

Even in these difficult times, it is important for all companies to always conduct their business legally safely. While a few months ago it was still completely 'normal' business within the European … Union or third countries, things can be very different at the moment. Possessing an end-use statement makes a lot of sense, even if you are making only a seemingly harmless sale of goods within the European Union. Let's take a look at 3 practical examples.

In the EU Customs Valuation Compendium, we can find a Commentary on the customs valuation of waste. The need for regulation of this topic is growing together with an aim to meet the objectives … of the circular economy. The Commentary is one of the newest interpretative instruments that has been published, so let's take a look at the clarifications it provides, including a practical case study.

The German Federal Tax Court has ruled in a case referred to the Court of Justice of the European Union (CJEU) for clarification. The main question put to the CJEU was: can the transaction value … be based on the initial price paid if a fixed adjustment is subsequently applied, calculated by means of a pro rata apportionment mechanism, despite the fact that at the end of the year, in the event of an adjustment, there will be a repayment of import duties or an additional payment? The CJEU has given a striking, albeit not entirely clear, ruling in a case that retrospective adjustments (upward or downward) to transfer pricing are not taken into account in determining the customs value of goods. Here is an overview of the case and the highlights of the German court's decision.

‘As the importance of sustainability grows, so does the need to have a good understanding of our entire supply chain. A company's sustainability is also measured in terms of its entire supply … chain, which is why choosing responsible and sustainable suppliers and partners is so important. Consider them as an extension of your company. The ecological footprint of the raw materials, products or services you buy becomes part of your company's ecological footprint.’ - says Karolina Semionovaitė, Sustainability Officer at Swedbank Lithuania, who kindly accepted the invitation to answer questions on the role of banks in the sustainability transformation.

In December 2022, Regulation (EU) 2022/2399 establishing the European Union Single Window Environment for Customs was published which amends at the same time two Articles of the UCC. The title … of this Regulation is misleading insofar as it suggests to the reader that its aim is to establish an EU Single Window for Customs. So, what is actually the aim of this Regulation? How will our work change in the future? What is the meaning of the UCC amendments introduced by this Regulation? We thank Michael Lux who kindly agreed to answer these and other related questions.

What is planned for European customs in 2023? Probably, everyone involved in international trade asks this question. Based on the materials we already know and signals that have been already … given, let’s overview what changes and trends in the EU and the UK we can expect for international trade and customs at this stage.

In CCRM Issue 14 we wrote about a case, where a company challenged a BTI ruling. There is news in this case, as the European Commission issued a classification regulation concerning such products. … We take this opportunity to update the article, which not only provides information on how to classify ‘a plastic basin with a plastic disposable liner to be used in clinical settings’ (9018, 3922, or 3924), but also provides an overview of the tools, procedures and possible pitfalls of the tariff classification of goods; and discusses what all the stakeholders can learn from this case.

Tariff quotas mean less or no duty when importing goods. Most tariff quotas are allocated on a first come, first served basis; therefore, the timing of lodging a customs declaration might be … crucial. What if, due to issues concerning customs IT systems, you are late and the quota is exhausted? Can you ask customs to invalidate the customs declaration and wait until the new tariff quota is opened?

The European Green Course, presented at the end of 2019, raised new challenges for various business enterprises; however, at the same time, it presented new opportunities. Businesses that cooperate … with customs, such as customs brokers, logistics companies, and companies that export or import goods, are no exception.

There are various methods how you can pay import duties and taxes. One of them – paying through the agent clearing house bank account. What happens if the agent declares insolvency after receipt … of payment – will the importer be required to pay to the State or not? Should the activity of an agent be strictly regulated to prevent situations like this?

New regulation establishes the EU Single Window Environment for Customs (SWE-C) and amends the Union Customs Code (UCC). One of the objectives of SWE-C is to enable the seamless flow of data … between the administrations of exporting and importing countries, as well as between customs authorities and economic operators, allowing data entered in the system to be re-used. What does it mean for business? What steps have been taken so far in practice? What lies ahead? What is changing in the UCC?

It is clear that global trade has new challenges and John Finley made a good point when he said that [business] maturity is the capacity to endure uncertainty. The future is uncertain, but the … key may well be to have a Customs supply chain that consists of a team working together to deliver cost-effective and quality goods as well as a matching service; moreover, in today’s world of global trade there is an urgent need to embrace and use data-driven decisions.