Dear Reader,

WCO dedicated 2024 to 'Customs Engaging Traditional and New Partners with Purpose'. We can only agree that this is a very topical focus. The best way out of the current challenges such as declining data quality and the increasing lack of professional staff can be found through collaboration. The perfect example of this is the collaboration between NASA and SpaceX. By the way, the European Space Agency has also started collaborating with the private sector as the global competition is shifting from Earth to space, where satellites influence our daily lives and the lunar economy is seen as the next step forward (just think what this means for customs control and, for example, the origin of goods!). To sum up, we are excited to see what will come of this great WCO initiative.

The aim of the proposed EU customs reform seems no less compelling than the ‘lunar economy’ topic. No customs declarations. No declarant. All data should flow directly into the EU data hub, or more precisely, customs will take the data directly from the traders' systems. One BUT. Quality data is not about quality systems. It is about professionals who take care of the quality of the data that goes into the systems. We therefore wonder how much importance is attached to this aspect in the reform. In our opinion, little. For example, customs brokers are about to disappear in the EU (the shift of focus from direct representation to indirect because of the concept of the 'single responsible person'). So how can we ensure that there are enough professionals in the private sector to look after the quality of the data? Without going into detail in this issue of the journal, we invite you to consider the role of customs brokers in the light of all the current developments.

The first CBAM reports are due in January. The EU is leading the way in this area. What about other countries? We invite you to take a look at the proposed U.S. Foreign Polution Fee Act. And while talking about the U.S., we also take a look at the expansion of labour laws. Such a law is also in preparation in the EU. Overall, it is clear that sustainability is increasingly impacting the customs area - origin, valuation, classification, etc. To continue the reflection, we take a look at the textile sector and also point to the EU deforestation regulation, which shifts our thinking from 'deep origin' to 'deeper origin' when we will be obliged to check whether imported poultry comes from chickens fed with soya feed from areas not affected by deforestation.

And, of course, there are other articles to read - on EU’s dual-use exports, the impact of the war in the Middle East on customs valuation, the electronic certificate of origin, year-end transfer pricing adjustments and more. We are also proud of the publications of the student section, which reveal the thinking and growth of dedicated customs professionals who are vitally needed.

Enjoy reading this issue!

Enrika Naujoke
CEO of CustomsClear, Lithuania
Member of the Editorial Board

Impact of the war in the Middle East on customs valuation