Customs Compliance & Risk Management
Online tools and resources
Customs in Switzerland: reinvention through digitalization and paperless clearance
With numerous innovations such as smartphone apps as well as the elimination of Swiss sub-headings in the customs tariff numbers, Swiss Customs aims to drive digital transformation. Since Switzerland is not part of the EU customs union, shipments of goods have always had to be cleared at the Swiss border. Now, cooperation with neighboring countries is to be promoted in order to exchange the data that is now available electronically with each other. This will speed up customs clearance on both sides. In this article, you will find out what innovations are in store for EU as well as Swiss companies.
Customs-related databases
What customs-related databases do you use, find the most useful and/ or the most interesting? An exchange on customs-related databases used worldwide took place on 18 February 2021 during the 4th meeting of the authors of the CCRM journal. Why there is no comprehensive list of such databases? Herewith we could start the list! We would be happy to amend it with the databases you use, write to us: info@lcpa.lt
ICS2: the new European customs “Import Control System” just arriving!
The purpose of this note is to introduce the new European Import Control System (ICS2) in the safety and security measures framework and the launch of its first "release 1" version for express courier and postal shipments transported by air. Looking at it from a French perspective.
How to enhance customs risk management with external data?
The Pan-European Network of Customs Practitioners (PEN-CP) has published a study that explores the data landscapes of the today’s customs world, marking yet another concrete highlight for the world’s first innovation-boosting customs network.
WCO releases new online tool to support actors in international trade: www.wcotradetools.org
Get to know more about WCOTradeTools.org and watch a video with some practical applications on the platform. Benefit also from a promotional code on the purchase of your subscription!
Knowledge
'Lex Portus' fueling discussion on Customs in Ukraine and the EU
“It is important for us to provide the floor for discussion of issues important for scientists and practicing lawyers focusing on respective fields, for logistic and customs professionals.” - Prof Dr Borys Kormych, the Editor in Chief of 'Lex Portus' journal, tells in an interview about the journal, shares insights from articles, provides interesting facts about the case-law (Ukraine has an extensive practice of customs appeals), and answers other questions.
Q&A
Cases of repayment of import duties
Is it possible to recover import duties if the imported goods are exported? For example, a Lithuanian company imports goods from China (releases them into free circulation). After a few months, it happens that unchanged goods are sold and exported to a company in Switzerland. In such a case, could a Lithuanian company apply for a refund of import duties? Because the goods were exported and the company itself, if it had foreseen that such a situation would arise, would not have released the goods for free circulation but would have placed them in a customs warehouse.
Case law
Different duty tariffs: tractor towing broken-down or undamaged vehicles
‘The aircraft tractor’ hauls an undamaged vehicle - the rate of the duty is higher than it hauls a broken-down vehicle! The correct classification of goods is important for the proper and correct payment of customs duties.
The concept of a customs debtor and the case-law in Lithuania
In tax disputes with customs authorities, the question often arises as to whether a person in respect of whom a customs debt is calculated can be regarded as a customs debtor. This issue is particularly evident in cases where the person concerned did not import the taxable goods himself, but only indirectly or directly contributed to their importation. While in the European Union (EU) such issues are mainly regulated and covered by the Union Customs Code, in practice the implementation of EU customs law differs in various EU Member States, which sometimes even adopt their own national laws in this area. With this in mind, the article discusses the latest practice in Lithuania and the position of its national courts whether such an expansive interpretation of the concept of customs debtor is possible and in which cases.
Overviews and comments
AEO: a look at other countries’ programmes and mutual recognition agreements
Continuing the overview launched a year ago, we present a review of the AEO Compendium 2020 published by the World Customs Organization (WCO). There was in the previous review mentioned that, following Brexit, the EU and the United Kingdom are likely to sign an agreement on the mutual recognition of AEO programmes (which has already been signed) and that the AEO certificate will become even more desirable. We are after Brexit and before the VAT changes on low-value consignments entry in force - the number of businesses facing customs formalities is growing, as is the number of companies planning to apply for AEO status, so the topic of AEO remains important. What do we learn by reading the AEO Compendium? The compendium presents how the AEO programme has been developed in various countries over the past year, what mutual agreements have been concluded between the countries and the benefits for businesses with AEO status.
Significance of guidelines, explanatory notes and other "soft law" acts
In the European governance the EU legislation distinguishes between the so called “formal law” and the “informal law”. The latter also known as measures of soft law. Formal law compromises regulations, directives and decisions, whereby recommendations and opinions, as well as other methods of developing policy: e.g. policy guidelines are considered soft law. Practical examples of informal law in the field of customs are the Guidelines for Customs Valuation of Goods, the Customs Valuation Compendium, the Transit Guide. What is the significance of these documents in practice?
EU-UK Trade and Cooperation Agreement: returned goods relief vs preferential origin
European Commission released Guidance on preferential treatment, origin and customs procedures to assist EU businesses importing from and exporting to the UK. One of the questions clarified: “Goods originating in the EU are exported to the UK and released for free circulation there. They are not transformed. Can they come back to the EU without paying duties?”. The only suggestion is to customs clear them as returned goods. Does the same principle apply to all EU FTAs? What are the requirements for returned goods to claim “zero duty”? What about “zero VAT”? Other requirements like Sanitary and Phyto-Sanitary?
U.S. export law between third countries
While most trade compliance professionals are likely aware of U.S. Export Administration Regulations (EAR) as it pertains to exports originating from the U.S., many are not aware its scope can extend to shipments that do not physically involve the U.S.
EU hard law: hierarchy, types, and opportunities
Sources of European Union (EU) law can be classified according to their binding nature. 'Hard law' defines binding legislation, and 'soft law' includes non-obligatory guidelines, recommendations, opinions. Andrius Košel has published an excellent article on soft law and here we will examine hierarchy and types of hard law, as well as opportunities in its application.
News
EU law news: February 2021
Monthly overview of customs-related legal acts, case law, notices published in the Official Journal of the EU, and information published by the European Commission and by the World Customs Organization.
EU law news: March 2021
News in week 13. Judgements of the Court of Justice of the European Union: tariff classification of bank note validator and cash boxes (headings 8472 and 9031), inward processing and failure to present goods to customs, anti-dumping duties on imports of certain seamless pipes and tubes of iron or steel originating in the People’s Republic of China. Regulation imposing a definitive anti-dumping duty on imports of aluminium extrusions originating in the People’s Republic of China.
EU - UK trade
One month of Brexit at the French 'smart border'
Jean-Michel Thillier, Director of Customs for the Hauts-de-France region of northern France and in charge of Brexit, took stock of the 'smart border' after one month of Brexit. The attention of operators was drawn to various issues identified: unpreparedness for customs formalities, unnecessary requesting of preferential origin, etc.
Import a car from UK to Ireland
Importing a car from the UK has always seemed attractive as there is a much bigger choice than in Ireland, prices are very competitive, and anyone could travel freely to make their purchase. The currency exchange rate can also be favourable to Irish buyers. But importing a car from the UK has become more complicated in 2021 post Brexit. Here is an overview of the requirements for imports of cars to the Republic of Ireland from Great Britain and Northern Ireland.
Using importer’s knowledge to claim preferential treatment: a gift or a trap?
Trade agreements have their own unique rules of origin to determine whether something has preferential origin. They also each have their own rules on how preferential origin should be evidenced. This can be confusing when a business is using multiple trade agreements. The focus of this article is on a particular method of evidencing preferential origin: importer’s knowledge. This is a relatively new concept in the EU, first appearing in the EU-Japan Economic Partnership Agreement, replicated in the UK-Japan Comprehensive Economic Partnership Agreement (CEPA) and now contained in the EU-UK Trade and Cooperation Agreement.