Customs Compliance & Risk Management
Knowledge
Interview with the Senior Appraiser of machinery and equipment in Brazil
We are honored to introduce a new member of the editorial board of the Customs Compliance & Risk Management journal - Mr. Roberto Raya da Silva from Brazil, the expert in foreign trade, customs valuation, and tariff classification. Mr. Raya is an Accredited Engineer from the Federal Revenue Service for launching technical reports to customs. He became the first Senior Appraiser for the machinery and equipment section in Brazil.
"A Short Guide to Customs Risk" - interview with the author of the book
The book "A Short Guide to Customs Risk" by Catherine A. C. Truel was published after the financial crisis of 2007-2008, in 2010. After 10 years, we find ourselves in a new crisis and other challenging trade conditions. Therefore, the book is even more relevant. In the interview, the author shares her insights and experiences.
Overviews and comments
Indonesia: customs in the country of 17508 islands
Indonesia is the largest economy in the Association of Southeast Asian Nations (ASEAN). It represents about 35% of the region's GDP and has a population of 264 million inhabitants. An interesting trading partner for sure! In this article, you will learn a brief history of Indonesia and, in the context, the history of the Directorate General of Customs and Excise (DGCE), which has to manage export-import operations in the world's largest island country.
What you need to know about the EORI number and national differences in EU countries
Although the business form, such as the relocation of production to another country under an outsourcing agreement is already considered as a fairly common form of business, third-country companies still face challenges in supplying raw materials to their processing sites. One of them is obtaining an EORI number when a company does not actually operate in the EU Member States but sees an economic benefit in importing raw materials into the EU on its own behalf.
Customs supervision measures – effective protection of intellectual property rights
Once goods infringing intellectual property rights are released for free circulation, more than one entity is affected. To begin with, the biggest and most obvious damage is caused to the right owner or holder himself due to the fact that counterfeits on the market have a negative impact on sales, price, product position in the market. The buyer does not benefit in this situation as well, the acquired good does not meet quality or even safety standards, usually there is no possibility to take advantage of consumer protection. In addition, IP infringements distort competition, which means that honest and law-abiding manufacturers or traders are put in an unequal position. Finally, counterfeit and pirated goods market creates damage in terms of uncollected taxes as well.
Incoterms® 2020 - the latest edition of the rules
What has changed? Maybe it is about time to start preparing international trade contracts according to the latest edition?
Customs infringements and sanctions: different sets of legal rules in EU
Customs infringements and sanctions follow different sets of legal rules, set by each Member State individually. There are ongoing discussions on the EU’s common legal framework. In this article we overview provisions of the latest version of the framework adopted by the European Parliament and provide you with a look at the sanctioning system and changing interpretation of legal norms of one EU member state – Lithuania.
What should we know about customs procedure 42?
Although customs procedure 42 has been applied in Lithuania for a number of years, there are still questions from declarants and companies on how to declare goods and what actions should be taken after customs clearance. We provide an overview of the questions and answers and also point out why fiscal representation in Lithuania is rarely used.
Problematic areas of the application of customs duties in the international trade between the EU and Republic of India: tax disputes arising in the EU and its Member States (Lithuania)
The article seeks to answer the question what are the specific practical regulatory problems currently facing the international trade operators engaged in international trade business between the EU Member States and the Republic of India and how they can be reflected/solved in the possible free trade agreement between them. Problematic areas of the application of customs duties are being identified on the basis of a case study of tax disputes regarding imports of goods from India on EU level (in the Court of Justice of the EU and national level of the EU Member States (using the Republic of Lithuania as the main example)).
Brexit and Northern Ireland
In these extraordinary days where the emergence of the COVID-19 virus has effectively closed down large parts of the world economy, Brexit, the issue that dominated the news cycle in 2019 continues to play out albeit under the radar. In this article, the story is recounted of how the UK left the EU. In addition, the article explains why the Northern Ireland question is such a sensitive topic in the context of Brexit and why it remains a major impediment to the UK and EU agreeing a Free Trade Agreement.
Tariff classification of goods and Customs Laboratory tests. A look at Lithuanian practice
Some of the most difficult disputes in the field of customs regulation arise due to the findings of the Customs Laboratory on the tariff classification of goods. If a tax dispute is pending in court, the latter must verify the compliance of the Customs Laboratory's tests with the formal requirements and assess the comprehensiveness of the testing analysis together with the consistency of the examination data with the conclusion. This condition is essential. Hence, after transferring the dispute over the classification of goods to the court, they must evaluate the analysis carried out by the Customs Laboratory and the documents in accordance with the same rules as for other evidence in the case.
Preferential trade arrangements of the EU: a non-systematic glance at the current non-uniformity
Taking a look back over the last couple of years – more precisely 15, when the WTO’s Doha Round was expected to end in 2005 – economic operators were facing the results of a multilateral approach to facilitate global trade which clearly lagged behind its actual intentions. As regards preferential trade, the major challenge for economic operators in these times seemed to have been the confrontation with the strengthening of individual national proceedings resulting in more and more bilateral and partially plurilateral trade agreements. The spaghetti bowl was no longer a valued Italian ‘secondo piatto’ but a feared opaque and impenetrable mass of regulations of many different free trade agreements. As we know, this situation has not changed much since then – so companies simply got used to the fact that the exploitation of potential preferential benefits is bound to the prior analysis of the (preferential) trade relations of their destination market countries – bilaterally but also among each other. They cannot count on the advantages of a multilateral agreement with lowered or abolished tariff rates and harmonised rules.
News
EU law news: May 2020
We overview customs-related legal acts, information, and notices published in the Official Journal of the EU. There was news related to Brexit, Covid-19, the tariff classification of certain goods, preferential origin, duties, antidumping and countervailing duties, and non-tariff measures.
EU law
EU law news: April 2020
We overview customs-related legal acts, information, and notices published in the Official Journal of the EU covering the period 24.3.2020 - 30.4.2020. There was news related to Brexit, Covid-19, common transit procedure, tariff classification of certain goods, preferential origin, duties, antidumping duties, and non-tariff measures.
No rubric
ECJ ruling on the tariff classification of heat patches to treat muscle injuries and soreness
From a tariff classification point of view, the scope of the term ‘medical products’ has been and continues to be controversial in some instances. For businesses, classification of goods that may or may not have medical application outside of Harmonised System Chapter 30 can result in their goods attracting a significant customs duty rate. This article summarises the case where heat patches, designed to treat muscle injuries and soreness, were originally classified by Commission Implementing Regulation 2016/1140 under heading 3824, but following an appeal to the ECJ, these items were found to be a products of heading 3005.