Customs Compliance & Risk Management
Case law
Royalties and customs value: CJEU clarification to Bulgarian courts
The goal of the EU law on customs valuation is to introduce a fair, uniform, and neutral system excluding the use of arbitrary or fictitious customs values. The customs value must therefore reflect the real economic value of an imported product and take into account all of the elements of that product that have economic value. In this article we are going to review how the Bulgarian courts apply the provisions related to customs valuation, more specifically, to the inclusion of royalties in the customs value of the goods.
Overviews and comments
The main fines for customs infringements in Brazil
We overview fines in Brazil for customs infringements, focusing on the fines imposed as a consequence of incorrect classification and description of goods, and pointing out the importance of voluntary disclosure.
Combined Nomenclature 2021 – overview of changes
The new version of the Combined Nomenclature 2021 is already approved and will be published in the Official Journal of the European Union in October or November 2020. It will be applicable from 1 January 2021. We overview the changes, which are indeed not many this year.
AEO-company-specific monitoring from a customs risk perspective
In the article, we take a look at the role of monitoring of existing customs authorizations in a company, the areas and standards to be checked, and monitoring structure. We also draw your attention to one of the possible outcomes of monitoring: the application for an AEO-C or AEO-S suspension. A company case is provided as an example; and the AEO-Security control sheet as a practical tool for monitoring.
India’s Customs management of rules of preferential origin
The Indian Central Board of Indirect taxes & Customs (CBIC) has introduced new regulations under section 156 read with section 28DA of Customs Act, 1962 related to Rules of Origin under Trade agreements. These rules may be called “CAROTAR 2020” (Customs Administration of Rules of Origin under Trade Agreements). The CAROTAR 2020 shall come into force on 21 September 2020, thereby deemed to provide sufficient time for transition and to ensure that the prescribed/ required conditions be complied with.
EU VAT e-commerce package: questions raised by express and postal operators in Lithuania
Although quite some time has elapsed since the announcement of the amendments to the provisions on distance selling of goods and the EU Council has adopted a number of documents setting out implementing measures for the VAT e-commerce package and details of the operation of the VAT one-stop-shop since the end of 2017 until now, there is still a lack of exceptionally important information needed for express and postal operators to be properly prepared for the practical application of the new VAT e-commerce rules. Even extension of the period of the implementation of the rules for six months does not seem to be a long enough period for settlement of all ambiguities.
EU customs law and international maritime law: relationship and its problematic issues
The article seeks to identify legal issues related to the implementation of economic activities in maritime areas by analyzing the customs law of the European Union (EU) and its regulations (Union Customs Code (UCC) and the regulations related to its implementation) defining the boundaries of the EU customs territory, determining the customs origin of goods and describing the order of the customs procedures. The author also presents suggestions on how the identified legal issues should be addressed by amending EU customs legislation and what are the tax risks associated with them.
Application of WTO law in tax disputes with Lithuanian customs authorities: mission (not) possible?
In this article, by evaluating the latest case law of the Supreme Administrative Court of Lithuania (Order of 27 May 2020 in Administrative Case No. eA-2474-968 / 2020, etc.), we will review how the provisions of WTO law in national courts have been (and are) applied in the Republic of Lithuania in tax disputes with customs authorities and what are the possibilities for relying directly on them to defend the rights and legitimate interests of the taxpayers.
BREXIT: "NO DEAL" in sight!
We are heading straight for a "no-deal" with the UK - i.e. the application of the rules of the World Trade Organisation, which means high tariffs and tighter customs controls. The European Union will apply the same rules as for any country with which it does not have a trade agreement (the United States, for example). You should therefore build this scenario into your business and contact your service providers to prepare for this deadline as well as possible. For your information, you will find materials made available by the French authorities, Brussels and British authorities, and information about CE marking change to UKCA marking.
Inward processing: did you know that…?
Continuing the topic of Inward Processing launched in August article under the heading “Processing Procedures: Examination of Economic Conditions”, I would like to draw attention to a several changes brought about by the new Union Customs Code and, possibly, opportunities less frequently applied by economic operators: release for free circulation with lower customs duty rate (applicable to the processed product), the use of Union goods (equivalent goods), movement of goods without customs formalities (transfer), generalization.
Review of anti-dumping measures in the EU
The global market and increasing competition among market participants encourage unfair trade practices. Various anti-dumping measures are in place to stop unfair trade and protect EU producers. The number of anti-dumping measures is growing every year in the EU, which ensures fair trade and reduces the formation of monopoly positions on the market. From 2019, the EU more focuses on small and medium-sized enterprises (SMEs) to protect them from unfair trade by simplifying procedures. The anti-dumping and anti-subsidy measures have led to an average reduction of 80 per cent in unfair trade. This shows that the anti-dumping measures in the EU are working effectively.
AEO: Trusted Partners in India
Authorised Economic Operator (AEO) certified company is acknowledged as customs’ trusted trade partner. If you choose a cooperation partner from India and plan to ask for an AEO certificate to prove compliance with this standard, here is what you should know about the Indian AEO programme (the AEO programmes are not harmonized globally, therefore there are differences from country to country).
Interview with a customs chemist from Ireland
Dr. David Savage joined the Irish State Laboratory, where he worked in the Customs and Excise Section from 2003 to 2018. During this time, he supported the Irish Customs authority process BTI applications and validated the tariff classification of goods subject to audit in addition to other duties. David also represented Ireland at the Customs Code Committee. Now he works for a Customs and International trade consultancy in Dublin. In the interview, we talk about the tariff classification of goods, Brexit, SMEs and customs knowledge, and other topics.
Intelectual property: electronic documents - better enforcement
While the digital transition of communication between individuals and customs is increasingly taking place, as well as the need to reduce or even eliminate the transmission of paper documents arises, from 15-09-2020 amendments of Regulation (EU) No 608/2013, providing for a different procedure for applications for customs supervision measures, entered into force. The biggest change is related to the form of submission of documents. From now on, applicants' national or European Union applications for customs supervision measures, as well as other necessary documentation, is submitted to the responsible customs office via the European Union Intellectual Property Office (hereinafter referred to as EUIPO) IP Enforcement Portal. What else has changed and what action should Rightsholders and other applicants have to take?
Opportunities for producers: tariff suspensions
Due to tariffs suspensions Lithuanian producers saved more than 5.15 million euros in 2019. This amount seems considerable, but it could have been significantly higher! In this article, we draw the attention of producers to an opportunity which, in our view, is not sufficiently exploited yet. We also review the current issues - which goods are no longer subject to tariff suspensions due to the new EU Environmental Policy and Industrial Policy, and exceptions - when tariff suspensions are compatible with the application of the anti-dumping duty. Finally, we will share practical advice on how to complete a customs declaration and briefly review other countries' requests for tariff suspensions.
Interview with an expert of global trade measures
Anna Gayk is Managing Partner of the Mendel company. The company, originally engaged in the production of printed matter and as publishers of foreign trade publications, has evolved to a leading information service and data content provider in the field of global trade measures over the last two decades. The company is specialised in research, provision and updating of foreign trade information and data with a focus on tariff and non-tariff measures of virtually all countries in the world. In the interview, we talk about digitalisation, quality of data, research, what works well internationally in customs and what could be improved, and about other topics.
Brexit Diary August-September
In any other year, the Brexit issue would receive a huge amount of attention. However, 2020 is an unusual year. As the COVID-19 pandemic continued to present Governments all over the world with policy decisions, the clock continued to tick down on the EU-UK Free Trade Agreement negotiations. August was relatively quiet but all of that changed in September as the UK government upped the stakes with the introduction of the Internal Market Bill. This is my Brexit Diary which tracks developments in the upcoming and final EU-UK divorce.
EU law
EU law news: August 2020
From 25 July to 28 August (further news in 'EU Law: September 2020'), there was news related to Covid-19; tariff classification of the goods; preferential origin; duties, antidumping and countervailing duties; non-tariff measures, prohibitions and restrictions.
EU law news: September 2020
Week 39: regulation on the classification of prepared explosives, other than propellent powders; initiation of an anti-dumping proceeding concerning imports of optical fibre cables classified under CN code ex 8544 70 00.
No rubric
Recent tariff classification issues in Latvia: copper alloy ingots
National courts often make use of the possibility to seek a preliminary ruling from the Court of Justice of the European Union (CJEU). The Supreme Court of the Republic of Latvia recently raised a very technical question, which, however, concerns the general interpretation of a provision of the Combined Nomenclature of the EU regarding classification of the copper alloy ingots. The article overviews the case and its importance for the uniform tariff classification of goods in the EU Member States.
Customs law: retrospective change of the customs declarant
It has now been established by the supreme judicial authority, that it is possible to amend the customs declaration subsequently, even with regard to the information relating to the identity of the declarant. However, with some limitations, which we point out in the overview of the recent judgement of the European Court of Justice.