Customs Compliance & Risk Management

Dear Reader,

Over the past two months, the United States has become a central focus in global economic developments. Its revised trade policy has generated significant international concern. The imposition of new tariffs by the US has affected a wide range of countries, particularly among democratic nations. President of the European Commission has cautioned that "uncertainty will spiral and trigger the rise of further protectionism." There is increasing apprehension that the global, rules-based trading system - painstakingly developed since 1947 - could be significantly undermined in a relatively short period of time.

In response to US tariffs, the EU continues to advocate for a negotiated resolution to the crisis, while also enacting counter-measures. The UK, in what might be considered a “better” position with import tariffs set at 10% (compared to the EU’s 20%), has launched a consultation on the potential introduction of retaliatory tariffs.

Exporters are reminded that tariff rates are determined by the origin of goods. Consequently, for example, goods originating in the EU but exported from the UK will nonetheless remain subject to the 20% tariff. We explore this topic in greater detail in the pages of this issue. We are also broadening our coverage to include the latest developments in customs and trade from the US. This will complement our continued reporting on the EU, the UK and Ukraine.

In this issue, we begin a series of articles on export controls. The first article will be particularly helpful for those who are just starting to familiarise themselves with the topic. We also cover sustainability-related issues and invite you to read an article outlining the position of the European Association of Forwarding, Transport, Logistics, and Customs Services (CLECAT) on the Commission's Omnibus Package - specifically the proposed simplification of the Carbon Border Adjustment Mechanism. Additionally, another article focuses on the forthcoming changes in the regulation of packaging compliance with sustainability requirements.

The case law section features articles on tariff classification and the legality of local restrictions on the provision of customs brokerage services. You may also find it useful to explore country-specific insights on various topics from Israel, Brazil, Colombia and other countries.

Lastly, we have also addressed the topics of overregulation and artificial intelligence.

I hope you enjoy this issue!

Dr Ilona Mishchenko
Member of the Editorial Board