Customs Compliance & Risk Management
Knowledge
Acquiring customs competence: What is the process?
The removal of the World’s 5th largest economy (the UK) from the EU Single Market faced all European countries with an unprecedented challenge – to rapidly develop business understanding and expert competence in customs, trade and international regulation – in an environment where the progressive liberalisation of trade had effectively depleted customs expertise over a period of 50 years. Brexit also presents us with a unique opportunity to address some key questions in training.
Favourite article on customs and tips for writing an article
What is your favourite article on customs? What advice would you give to the author writing the first practical (non-academic) article? In this overview, you will learn the views shared during the 7th Authors’ Meeting, which took place on 26 August 2021.
Overviews and comments
Why is it important to control wood packaging material?
We often do not even think that the wood packaging material (WPM) used in trade to support, strengthen, and transport any production can pose any threat. However, there is a huge threat. Pests can spread with WPM. These harmful organisms do not choose - parks, private gardens, private yards with cultivated vegetation, or forest. Once in the country and under the right conditions, pests spread very quickly, and it is extremely difficult to eradicate them. The fight against already existing pests causes severe economic, emotional damage by cutting down and destroying all trees that are infected, regardless of where they grow and the value they have.
Dangerous product - release for free circulation in the EU not authorised
Editorial word. The website of the State Consumer Rights Protection Authority (SCRPA), Lithuania contains numerous reports of prohibited products to be placed on the market, for example, due to the risk of injury, it is prohibited to place a scooter from China on the market (see picture below). Therefore, importers seeking the smooth release of goods for free circulation need to be certain of the product's compliance with EU safety requirements. Mr. Arvydas Naina, Head of the Market Surveillance Planning and Risk Assessment Division, SCRPA, kindly agreed to answer questions on the topic.
EU CE marking: requirements, the responsibility of the importer, actions in case of non-compliance
Editorial word. We keep hearing stories of products, such as massage chairs, plush toys, 'stuck' in customs and not allowed into the EU market due to incorrect or non-existent CE marking. What should be known to EU importers to prevent such situations? Mr. Arvydas Naina, Head of the Market Surveillance Planning and Risk Assessment Division, State Consumer Rights Protection Authority (SCRPA), Lithuania, kindly agreed to answer related questions.
Trade defence instruments (TDIs): what EU importers and exporters should know
The European Commission has published its 39th Annual Report on the use of trade defence instruments (TDIs) in 2020. The TDIs are applied to prevent unfair trade practices, mainly cheap imports due to dumping or subsidies, which harm EU producers. However, EU importers, especially SMEs, are often caught by a newly launched TDI unprepared and not aware of the unfair trade. The price of unawareness is high - the amount of import duties to be paid may be similar to the price of the goods themselves.
Planning tariff changes: suspensions
The possibility of tariff suspensions is actively used by businesses in the EU - importers save significant amounts of duties. It is also important for EU exporters, for instance, exporting their products to the UK, where tariff suspensions are used as well and may result in increased demand for certain products from the EU. We are talking to Žydrė Bartaškienė, Adviser of the Tariff Division of the Customs Department, about various aspects of this topic - news, tariff classification of goods, financial planning in business, and others.
Changes in the application of the Pan-Euro-Mediterranean (PEM) rules of preferential origin from 1 September 2021
The contracting parties to the PEM Convention have agreed on the application of the transitional rules pending the application of the modernized PEM Convention. This opens the possibility for economic operators to choose between the rules of preferential origin set out in the PEM Convention and the transitional rules. The latter rules are in many cases more flexible and simpler. Let us look at this new possibility.
News
EU law news: August/ September 2021
News in week 38: amendments of TIR Convention relating to the eTIR procedure; Commission proposes new EU Generalised Scheme of Preferences; anti-dumping and countervailing measures concerning imports of electrolytic chromium coated steel products and certain rainbow trout; amendments of regulations as regards the entry into the Union of consignments of certain animals and products of animal origin; and more news!
Compliance
EU-UK trade 2021 – Top 5 customs compliance mistakes and how to avoid them
For businesses trading between the EU and UK, 2021 has been a year of change. The various easements introduced by HMRC with the aim to phase in the changes caused more confusion. With three months left to the year, take a look at the top 5 common mistakes made by businesses this year and read about how you can avoid them.
Customs procedures
Canada: where the EU (or other countries) exporter acts as the importer of record
Are you planning to export your goods to Canada? In this article, we overview some of the important points for you to consider: free trade agreements, the federal goods and services tax (the Canadian VAT), and we focus on the situation where the exporter (a non-resident of Canada) acts as an importer of record.
Outward processing procedure in the EU: the basics
Everyone entering the import-export sector should be aware of the variety of customs procedures to work in the most efficient way and satisfy their economic needs. Outward and inward processing are two of the often-used procedures that can help you pass through the borders paying less duties or no duties at all. In this article, we overview EU’s Customs Decisions System and focus on one of 22 authorizations that might be applied there – the outward processing. In the following article, we will continue the topic by looking at inward processing.
Inward processing procedure in the EU: the basics
We continue the overview of tax-saving possibilities for economic operators provided in the Union Customs Code (see Outward processing procedure in the EU: the basics). In this article, we focus on the inward processing procedure - how it works, the benefits, what is necessary, and point out some special features. Finally, we look at the recently updated European Commission Guidance for trade on special procedures.
Origin
EU-Mercosur Association Agreement: the opportunities for European products in Brazil
On July 7, 2021, Brazil disclosed its tariff elimination schedule embodied in the EU-Mercosur Association Agreement announced on June 28, 2019, in Brussels (Belgium). The official documents will only be binding after the ratification in each Member-State. However, the disclosed Annex gives an idea to European traders and practitioners of the gains that can be obtained when the deal enters into force.
Controversies and peculiarities regarding application of rules of origin in EU Member States: practice in the Republic of Lithuania
The article discusses the peculiarities of the practical application of European Union (EU) rules on customs origin in the EU Member State - the Republic of Lithuania and presents the current practice of national authorities in this area (in tax disputes related to the origin of imported goods), emphasizes its peculiarities and differences from practices in other EU Member States. The analysis performed and described in the article substantiates that in the Republic of Lithuania the possible sources of proof of customs origin of goods are assessed and interpreted in a unique and rather formal way. Besides, the burden of proving the origin of imported goods and its distribution between customs and importer is understood specifically and can be considered as more favourable to importers than the usual practice at the EU level.
Import taxes
Returned goods relief: requirements in various countries
There are often situations where goods exported from a country are returned for various reasons. Therefore, countries have special regulations on returned goods which provide for relief from duties and possibly other import taxes. In this article, we overview regulations in the European Union, the United Kingdom of Great Britain and Northern Ireland, Switzerland, Ukraine, Mexico and the United States.
Country update
Ukraine news: August/September 2021
News in international trade in September at a glance: 2022 duty rates on imports from the EU; new safeguard and anti-dumping measures were established on imports of cement, wires and cables; new safeguard and anti-dumping investigations on imports of PVC profile and PVC windowsill boards, aluminum ladders, seamless cold-drawn and cold-rolled pipes; e-service for submitting an application for AEO authorization.
Northern Ireland: a case study on import-export customs formalities
The case study is about a company, which brings in a lot of equipment and manufactures some equipment in Northern Ireland (which is in a unique situation as it has become part of two customs territories this year - the UK and the EU) and then exports 95% of its products again. What does the company need to do to engage in the new customs environment between GB, Northern Ireland and the EU?