Dear Reader,
Customs formalities cover global supply chains from the country of exportation to the country of importation. The legal rules to be addressed on the way are extensive (tariff, non-tariff, safety, etc.). They vary across countries and regions, change constantly, and often are inaccessible because of the language barrier and/ or unavailability online.
Businesses aim to arrange customs formalities in the most cost-effective way, taking into account tariff preferences, the variety of customs procedures, and the simplifications. Therefore, the task to ensure compliant and cost-effective customs formalities is a complex one and any customs-related topic is in the scope of the journal.
At the core of the Customs Compliance & Risk Management Journal for Practitioners in Europe are these keywords: up-to-date customs knowledge, compliance, harmonisation and simplification of the international and national rules (the simpler the rules, the easier to trade and to manage compliance and risks).
The first bi-monthly issue was released at the end of March 2020. Stakeholders - business, customs, academia, and others - from all over the world are invited to read the journal and to contribute articles.
The Editorial Board:
Enrika Naujokė, CC Learning, UAB, Lithuania
Dr David Savage, Ireland
Roberto Raya da Silva, Raya Consult, Brazil
Prof Dr Borys Kormych, National University 'Odesa Law Academy', Ukraine
Dr Ilona Mishchenko, National University 'Odesa Law Academy', Ukraine
Samuel Draginich, Amazon EU, Luxembourg
Ira Reese, Global Security and Innovative Solutions, the USA
Mark Rowbotham, Portcullis ISC, the UK
Omer Wagner, Israel
Svitlana Siurik, Belgium
We will be happy to answer your questions. Contact us: info@customslcear.net
Best regards,
Editorial Board
Terms and Conditions
Responsibility for the content. The information contained in the Customs Compliance & Risk Management Journal for Practitioners in Europe is for general information purposes only and cannot be construed as legal advice, conclusion or consultation. The publisher CC Learning, UAB (CustomsClear, the Publisher) does not necessarily agree with the views of the authors of articles.
Distribution. The exclusive right to distribute the journal belongs to the Publisher. The paid articles of the journal are only for the use of those who have acquired them lawfully. The originals or copies of the articles may not be distributed, sold, rented, lent or otherwise transferred without the written consent of CustomsClear.
Procedure upon violation. The Publisher will make every effort to resolve any disputes in a consensual manner and therefore asks to be notified (using the contact details provided) of any conflict or misunderstanding before other steps are taken.
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Contact: info@customsclear.net
Information for Authors
Writing an article is a great way to share your knowledge and, if relevant, to inform readers about your expertise in a particular field of Customs.
Articles are contributed on a non-remunerated basis. Thanking you for your contribution, we will invite you to meet other authors in bimonthly online meetings.
The ISSN 2669-2171 number can be used for academic purposes.
Reader
The reader of the journal is a practitioner dealing with customs-related questions first of all in business. She or he might be a beginner or experienced one. Therefore, please write for practitioners, delivering your message in a simple and clear way.
Language
The main language of the journal is English. However, practitioners in many countries do not speak English, therefore, we encourage to write the article in several languages up to your choice.
Structure and length
Please start with about 3-5 sentences introducing what is your article about. Structure the article in short paragraphs, use subtitles. At the end of the article (and/ or in the author’s profile), you may introduce your organisation and services.
The length of the article is up to your choice, the most important is to clearly deliver the knowledge/ the main message to the reader (there are articles of 1000 and of 3000 words, it can be less or more).
Author’s profile
Additionally, you may send us a picture and a description of the author for the author's profile. The author's profile opens when you click on the author’s name in the article.
Note
Please also read 'About the Journal' and 'Terms and Conditions'.
Contacts
We will be happy to answer your questions. Please contact us by info@customsclear.net
Dear Reader,
Although CCRM is focused on Europe, trade is global, as are the many customs-related issues and challenges. Accordingly, we have established an international CCRM editorial board with editors currently from Europe, Asia and America. In each issue, an editor provides you with an overview of the issue or a focus on a relevant topic of current heightened interest.
Sustainability issues are currently a source of major concern facing the international trading community. However, as the former Executive Director of Laboratories and Scientific Services for the United States Customs and Border Protection (CBP) and currently the Chief Technology Officer of Global Security and Innovative Strategies (GSIS) I dealt with these issues as a CBP Executive and continue to deal with them with GSIS. Therefore, I would like to offer you my comments relating to Handling Customs Requirements Relying On "Deep Origin".
As we can see in the present issue of CCRM and in past issues of this publication national legislatures are asking their Customs Administrations to enforce statutes that require in depth knowledge of the countries of origin manufacturing, transportation, and storage processes. Specifically, statutes enacted or being considered for enactment in the United States and the European Union regarding Deforestation, Forced Labor and the Carbon Border Adjustment Mechanism (CBAM) are requiring their Customs Administrations to consider all of these processes that are accomplished in the country of origin from raw material to finished product in the process of determining admissibility. Whether determining these processes from cotton boll to finished pair of trousers or the thousands of parts that are needed to manufacture an automobile or refrigerator every component, no matter how small, must have its supply chain confirmed for these statutes. The exigent circumstances surrounding the acquisition of these multiples of supply chain information make acquiring the necessary information either exceedingly difficult or impossible.
Apparently, while the legislators did not realize or care about the difficulties that their legislation has caused, Customs Administrations have conceded that they will be unable to enforce the legislation in the way that they are accustomed. To give an example of the difficulty of enforcing the statutes one must consider the importation of a polyester or nylon piece of wearing apparel. The earliest precursors of nylon and polyester are hydrocarbons that come out of the ground in the form either of crude petroleum or natural gas. To develop a supply chain of the finished products from crude petroleum to a nylon shirt that will satisfy Customs Administrations the importer must be able to substantiate the flow of product through multiple pipelines, storage facilities, manufacturing plants, etc. This will need the acquisition of metering tickets, pipeline flow and removal tickets, manufacturing feed data, storage release tickets, etc. These tickets are located in multiple facilities probably in foreign language that may or may not be easily translatable. Both the United States in the case of the force labor statutes and the European Union in the case of Deforestation have surrendered to the fact that traditional methods of Customs enforcement will not work and placed the burden solely on the importers to substantiate the fact that their importations are not violative.
Of course, the major problem with the Customs Administrations’ solution to the enforcement of these statutes is that those administrations will find it impossible to verify the supply chain info that is submitted by the importers. While the verification of the required supply chain information that has been submitted is achievable, the verification that the supply chain information matches the reality of the situation is extremely difficult. In fact, neither the importer nor the exporter usually has the slightest idea of the supply chain of what could be multiple components that go into their products. Further, to obtain the required supply chain information one must be familiar with a specialized area of accounting that deals with movement of petroleum and petrochemicals and with the manufacture of petrochemicals. The supply chain of products included in the European Union statutes relating to Deforestation is simpler. However, due to the multiples of movement from crude product to finished form one must be familiar with the manufacturing methods of products in the countries of origin to achieve the level of due diligence that the statute requires.
The most uncomfortable fact about the enforcement of the statutes is the reliance of Customs Administrations on “outreach” to provide allegations of violative behavior. While the administrations have always relied on allegations of wrongdoing, the administrations never acted upon the allegations unless they were properly investigated due to the sometimes questionable nature of the allegations. Contrary to past practice, allegations made in the United States against importers of products purported to be derived from slave labor results in immediate detention of the merchandise under a Withhold Release Order (WRO). Though, the proposed Deforestation Statutes allow the importer to answer to the allegations prior to any actions taken against the merchandise. The European Deforestation Rules are hazy as to what will occur when the regulations come into force in 2025. However, it appears that if an allegation is made the importer will be given a chance to provide evidence that the products origination is not connected to an illegally deforested area. In all circumstances of allegations, the importer must prove that the product is not violative as opposed to the usual practice of the government confirming the allegation. The disturbing fact is that regarding slave labor U.S. Customs takes derogatory actions against the importer without determining the veracity of the allegation. In other words, these actions suggest a “guilty until proven innocent” mindset for enforcement that is contrary to the usual law enforcement mindset. For this reason, there is a chance that future lawsuits or World Trade Organization cases in opposition to the manner in which the statute are enforced could be successful.
We hope you enjoy exploring the wide range of topics in this issue and delving deeper into the current and future challenges of the world of customs.
Ira Reese
Chief Technology Officer and Director, Global Security and Innovative Strategies, the USA
Member of CCRM Editorial Board
HM Government announced date and other changes around supplementary declarations; DDA payments - an extra calendar day to submit duty deferment payments; CDS implementation extension - exports … to move to CDS until 4 June 2024; trade with Northern Ireland - a requirement to have a valid UK Internal Market Scheme authorisation to keep using the NIREM code; important updates on EORI and VAT registrations.
Mark Rowbotham
HM Government announced date and other changes around supplementary declarations; DDA payments - an extra calendar day to submit duty deferment payments; CDS implementation extension - exports to move to CDS until 4 June 2024; trade with Northern Ireland - a requirement to have a valid UK Internal Market Scheme authorisation to keep using the NIREM code; important updates on EORI and VAT registrations.
Mark Rowbotham
The language of sustainable development legislation and the language of the legislation of origin are completely different; it is necessary to find a lingua franca for these areas to better understand … and implement the requirements. On the other hand, harmonisation of rules of origin at a global level is essential to address the challenges faced by importers - the need for harmonisation of these rules has never been greater. These and many other views were exchanged at the 20th Authors' Meeting. We invite you to read an overview.
The language of sustainable development legislation and the language of the legislation of origin are completely different; it is necessary to find a lingua franca for these areas to better understand and implement the requirements. On the other hand, harmonisation of rules of origin at a global level is essential to address the challenges faced by importers - the need for harmonisation of these rules has never been greater. These and many other views were exchanged at the 20th Authors' Meeting. We invite you to read an overview.
The EU has concluded more than 40 free trade agreements (FTAs) with around 80 countries, which supposedly bring significant benefits for trade with partner countries. But is this really the case, … i.e. is the EU fully utilising these benefits? This article attempts to assess the application of EU FTAs by analysing the flow of goods in and out of the main trading partners. The author looks at how import and export volumes and geography depend on the existence of preferential agreements.
Assoc Prof Dr Momchil Antov
The EU has concluded more than 40 free trade agreements (FTAs) with around 80 countries, which supposedly bring significant benefits for trade with partner countries. But is this really the case, i.e. is the EU fully utilising these benefits? This article attempts to assess the application of EU FTAs by analysing the flow of goods in and out of the main trading partners. The author looks at how import and export volumes and geography depend on the existence of preferential agreements.
Assoc Prof Dr Momchil Antov
Do you regularly import goods into the UK? Managing import taxes and VAT payments for every consignment can be complicated, time-consuming, and frustrating. Since Brexit, dealing with VAT payments … at the border is no longer necessary as they are postponed and settled separately via the importer’s EORI number. However, to release the goods from customs, duties need to be paid at the time of import… or do they? UK customs (HMRC) offer an option to simplify the whole process, known as a deferment account.
Mark Rowbotham
Do you regularly import goods into the UK? Managing import taxes and VAT payments for every consignment can be complicated, time-consuming, and frustrating. Since Brexit, dealing with VAT payments at the border is no longer necessary as they are postponed and settled separately via the importer’s EORI number. However, to release the goods from customs, duties need to be paid at the time of import… or do they? UK customs (HMRC) offer an option to simplify the whole process, known as a deferment account.
Mark Rowbotham
In theory, when goods enter the EU, import VAT is immediately due to the customs authorities at the relevant border. In practice, the EU VAT Directive gives Member States the ability to determine … the conditions under which goods enter their territories. This is in addition to the ability to set detailed rules for payment of VAT in respect of goods imported. This means Member States can implement mechanisms for postponed accounting via the VAT return, or deferred payment schemes, or a combination of both.
Mark Rowbotham
In theory, when goods enter the EU, import VAT is immediately due to the customs authorities at the relevant border. In practice, the EU VAT Directive gives Member States the ability to determine the conditions under which goods enter their territories. This is in addition to the ability to set detailed rules for payment of VAT in respect of goods imported. This means Member States can implement mechanisms for postponed accounting via the VAT return, or deferred payment schemes, or a combination of both.
Mark Rowbotham
News at a glance: Digital transformation of Ukrainian Customs; submission of transit declarations via the "Single Window"; Ukrainian Customs have transitioned to a new Guarantees Management System … (GMS); agreement between Ukraine and Turkey on the establishment of a system for the electronic exchange of information on goods and vehicles; the UK extends duty-free trade with Ukraine until 2029; the EU to continue the measures to liberalise import tariffs and quotas for Ukrainian products; PEM transitional rules of origin between the EU and Ukraine; the Canadian Senate has passed the bill to implement the modernised free trade agreement between Canada and Ukraine; transposition of certain provisions of the EU Customs Code into the Ukrainian Customs Code; the law on criminalization of smuggling of goods, as well as the inaccurate declaration of goods; for violations of agricultural export rules to certain EU countries, entrepreneurs will be deprived of verification for 6 months.
Iryna Pavlenko , Oleg Kyryievskyi
News at a glance: Digital transformation of Ukrainian Customs; submission of transit declarations via the "Single Window"; Ukrainian Customs have transitioned to a new Guarantees Management System (GMS); agreement between Ukraine and Turkey on the establishment of a system for the electronic exchange of information on goods and vehicles; the UK extends duty-free trade with Ukraine until 2029; the EU to continue the measures to liberalise import tariffs and quotas for Ukrainian products; PEM transitional rules of origin between the EU and Ukraine; the Canadian Senate has passed the bill to implement the modernised free trade agreement between Canada and Ukraine; transposition of certain provisions of the EU Customs Code into the Ukrainian Customs Code; the law on criminalization of smuggling of goods, as well as the inaccurate declaration of goods; for violations of agricultural export rules to certain EU countries, entrepreneurs will be deprived of verification for 6 months.
Iryna Pavlenko , Oleg Kyryievskyi
News in week 13: Classification of goods in the Combined Nomenclature - products made of combinations of paper materials, a van-type vehicle, a part of a pillow, footwear having an upper made … of 100 % wool, and a smart watch; extension of the Union’s tariff quotas for jute and coconut-fibre products; anti-subsidy investigation - mobile access equipment designed for the lifting of persons, originating in China; Transitional CBAM Registry user manual for Declarants, CBAM Quarterly Report structure and sample files; CHED - amended requirements to deduct quantities stated in the customs declaration; amendments of a regulation concerning import of ovine and caprine animals and products derived from these species.
News in week 13: Classification of goods in the Combined Nomenclature - products made of combinations of paper materials, a van-type vehicle, a part of a pillow, footwear having an upper made of 100 % wool, and a smart watch; extension of the Union’s tariff quotas for jute and coconut-fibre products; anti-subsidy investigation - mobile access equipment designed for the lifting of persons, originating in China; Transitional CBAM Registry user manual for Declarants, CBAM Quarterly Report structure and sample files; CHED - amended requirements to deduct quantities stated in the customs declaration; amendments of a regulation concerning import of ovine and caprine animals and products derived from these species.
The U.S. Deforestation Bill was introduced in the Senate in November 2023. It aims to combat illegal deforestation by prohibiting the importation of products obtained, in whole or in part, from … certain commodities produced on lands where illegal deforestation is occurring, and for other purposes. The legislative process is ongoing. The main points of the bill and related implementation issues are summarised and analysed in the article below.
Ira Reese
The U.S. Deforestation Bill was introduced in the Senate in November 2023. It aims to combat illegal deforestation by prohibiting the importation of products obtained, in whole or in part, from certain commodities produced on lands where illegal deforestation is occurring, and for other purposes. The legislative process is ongoing. The main points of the bill and related implementation issues are summarised and analysed in the article below.
Ira Reese
The African Continental Free Trade Area (AfCFTA), approved in 2012 by the African Union’s (AU) 18th Ordinary Session of Assembly of Heads of State and Government, is one of the Flagship Projects … of the AU’s Agenda 2063. The Action Plan for Boosting intra-African trade has a strong focus on accelerating intra-African trade and boosting Africa’s trading position in the global market, in particular through implementation of trade facilitation standards and tools. We provide a brief overview of AfCFTA rules of origin.
Mette Werdelin Azzam
The African Continental Free Trade Area (AfCFTA), approved in 2012 by the African Union’s (AU) 18th Ordinary Session of Assembly of Heads of State and Government, is one of the Flagship Projects of the AU’s Agenda 2063. The Action Plan for Boosting intra-African trade has a strong focus on accelerating intra-African trade and boosting Africa’s trading position in the global market, in particular through implementation of trade facilitation standards and tools. We provide a brief overview of AfCFTA rules of origin.
Mette Werdelin Azzam
The Union Customs Code and related regulations set out, among other things, the requirements for the data to be submitted to customs. Normally, these regulations are not often amended. However, … this has not been the case recently, see ‘EU law news February 2024’. In this article, we provide an overview of some of the latest changes to the data elements and invite readers who are new to the subject to familiarise themselves with the data tables and the new definitions such as sub-elements, sub-classes and attributes.
Jurgita Stanienė
The Union Customs Code and related regulations set out, among other things, the requirements for the data to be submitted to customs. Normally, these regulations are not often amended. However, this has not been the case recently, see ‘EU law news February 2024’. In this article, we provide an overview of some of the latest changes to the data elements and invite readers who are new to the subject to familiarise themselves with the data tables and the new definitions such as sub-elements, sub-classes and attributes.
Jurgita Stanienė
Editors' note: We are starting a series of articles on the most important legal aspects of the proposed EU Customs Reform. This article deals with the concept of 'Trust and Check Trader', an … enhanced version of the 'Authorised Economic Operator' concept. The author describes the relevant part of the Impact Assessment prepared alongside the legislative proposals, the differences of treatment between future Trust and Check Traders and other economic operators, and provides an assessment of the proposed changes.
Michael Lux
Editors' note: We are starting a series of articles on the most important legal aspects of the proposed EU Customs Reform. This article deals with the concept of 'Trust and Check Trader', an enhanced version of the 'Authorised Economic Operator' concept. The author describes the relevant part of the Impact Assessment prepared alongside the legislative proposals, the differences of treatment between future Trust and Check Traders and other economic operators, and provides an assessment of the proposed changes.
Michael Lux
Editors' note: The recent 20th Authors' Meeting dealt with issues of origin for customs purposes. At this meeting, the author presented two Israeli court cases - one concerning an unauthorised … person signing the certificate of preferential origin and the other concerning whether pistachios originated in Iran or Turkey (non-preferential origin for the application of prohibitions). The cases are not necessarily new, but they deal with relevant questions: What happens if the proof of preferential origin is signed by an unauthorised person? Can the authorisation be granted retrospectively? Is the 'statistical and reasonableness check' sufficient for customs to reject the declared non-preferential origin of the goods?
Omer Wagner
Editors' note: The recent 20th Authors' Meeting dealt with issues of origin for customs purposes. At this meeting, the author presented two Israeli court cases - one concerning an unauthorised person signing the certificate of preferential origin and the other concerning whether pistachios originated in Iran or Turkey (non-preferential origin for the application of prohibitions). The cases are not necessarily new, but they deal with relevant questions: What happens if the proof of preferential origin is signed by an unauthorised person? Can the authorisation be granted retrospectively? Is the 'statistical and reasonableness check' sufficient for customs to reject the declared non-preferential origin of the goods?
Omer Wagner
The language of the Harmonised System (HS) Convention contains many formulas linking goods and their use, such as 'primary', 'principal', 'intended', etc. The HS seems to contain too many of … these connection formulae, and the difference between them is not always clear. It is therefore suggested that the World Customs Organisation (WCO) eliminate the undefined terms and look for a method that is as simple as possible. The article below is a short version of the full article, which has been published in the World Customs Journal, 2023, Issue 17(2).
Omer Wagner
The language of the Harmonised System (HS) Convention contains many formulas linking goods and their use, such as 'primary', 'principal', 'intended', etc. The HS seems to contain too many of these connection formulae, and the difference between them is not always clear. It is therefore suggested that the World Customs Organisation (WCO) eliminate the undefined terms and look for a method that is as simple as possible. The article below is a short version of the full article, which has been published in the World Customs Journal, 2023, Issue 17(2).
Omer Wagner
'Deep origin' is a phrase coined by Brain Staples. It is a description of the sustainability-focused regulatory environment now being increasingly faced by customs and traders. It goes beyond … customs when it comes to implementing sanctions or other prohibitions on importation of endangered goods, goods manufactured by forced labour, or by slavery, or by other undesirable practices. How to operate in this increasingly complex regulatory environment?
Brian Staples , Anna Jerzewska, Anthony Buckley
'Deep origin' is a phrase coined by Brain Staples. It is a description of the sustainability-focused regulatory environment now being increasingly faced by customs and traders. It goes beyond customs when it comes to implementing sanctions or other prohibitions on importation of endangered goods, goods manufactured by forced labour, or by slavery, or by other undesirable practices. How to operate in this increasingly complex regulatory environment?
Brian Staples , Anna Jerzewska, Anthony Buckley
Finding the right customs broker can be a huge problem for traders. One may seem to be "your" person, but they may misunderstand you or not listen to you. Another may not have the proper level … of knowledge and so on. This article is designed to help you with this search and selection process. You will find answers to the most important questions to ask when looking for a helpful broker.
Rizwan Mahmood
Finding the right customs broker can be a huge problem for traders. One may seem to be "your" person, but they may misunderstand you or not listen to you. Another may not have the proper level of knowledge and so on. This article is designed to help you with this search and selection process. You will find answers to the most important questions to ask when looking for a helpful broker.
Rizwan Mahmood
HM Revenue & Customs has announced significant changes affecting UK importers from 31 January. The most important customs and customs-related updates, with a focus on EU-UK trade, have been summarised … and explained in the overview below.
Mark Rowbotham
HM Revenue & Customs has announced significant changes affecting UK importers from 31 January. The most important customs and customs-related updates, with a focus on EU-UK trade, have been summarised and explained in the overview below.
Mark Rowbotham
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