Sustainability

Sustainability-related legislation for material goods falls within the scope of customs control when goods cross international borders. But what exactly does 'sustainability' mean?

What does 'sustainability' mean exactly?

Sustainability requirements, including the definition itself, are constantly evolving. In the EU, for example, the definition of 'sustainability matters' was amended at the end of 2022 and the current version includes the following areas (see Directive (EU) 2022/2464 Art. 1(2)(b)):

• environmental,
• social and
• human rights, and
• governance factors,
• including employee matters,
• anti‐corruption and
• anti‐bribery matters.

What is controlled by customs?

In this context, various laws have been passed in the implementation of which customs play a role; the most recent examples are:

• EU's Carbon Border Adjustment Mechanism (learn more by reading 'CBAM transitional period: roles and responsibilities' by Enrika Naujoke, CCRM Issue 22, 2023)
• Deforestation Regulations ('Can Brussels save the worlds rainforests?' by Dr David Savage, CCRM Issue 22, 2023)
• Forced Labour Regulations - in preparation in the EU, in force in the USA, Canada ('The issue with using supply chain information to control product flow from the forced labor area of China' by Ira Reese, CCRM Journal, Issue 20, 2023)

Who is affected by these regulations?

The main data holders are the suppliers. So, although this is national legislation (e.g. the EU Carbon Border Adjustment Mechanism), the whole supply chain is affected as importers ask their suppliers for data that feeds into national reports and declarations.