Customs Compliance & Risk Management
Knowledge
Customs news in our countries. How do we stay on top of them?
To stay compliant means to keep up with regulatory changes. How do we stay on top of сustoms-related legal changes and other news? What are the most preferred communication channels? In this article, we summarise what authors of the CCRM journal shared during the 5th Authors’ Meeting on 22 April 2021: the enormous volume of statutory instruments due to Brexit, the convenience of the U.S. federal register, the importance of support bubbles, useful news alerts from social media, and much more!
Customs Digital - online magazine for digitization of customs
Customs Digital is a newly launched magazine for customs practitioners in Europe. The editor Janine Lampprecht says: "We want to explain things simply, pragmatically, and clearly, and to generate interest in the digitization of customs. Our vision - to revolutionize the customs world and make IT easy to understand for customs practitioners". Learn more about the magazine reading the interview with Janine and watching a video record of the talk during the webinar 'Journals on Customs'.
Global Trade and Customs Journal for practitioners around the world
Global Trade and Customs Journal (GTCJ) is a journal for practitioners around the world. It started 16 years ago. How was the idea born? What are the main topics covered in the GTCJ? What are the most challenging and rewarding aspects of being on the editorial board of the Journal? The general editor Jeffrey L. Snyder kindly agreed to answer these and other interview questions.
Case law
Office machine or checking instrument?
Is the banknote validator classified as an office machine or as a measuring or checking instrument? The situation is interesting in that two Binding Tariff Information (hereinafter – BTI) decisions have been taken on identical goods. According to one of them, this product falls in CN heading 8472 (office machines), while according to the second decision, it is CN heading 9031 (measuring or checking instruments). The Commission classified the product under heading 8472 of the CN by means of an Implementing Regulation. Is such classification correct and valid? The Court of Justice of the European Union (hereinafter – CJEU) answered the question and provided clarification.
Classification of solution for cats against ticks
In this article, we review the judgment of the Court of Justice of the European Union (CJEU), in which the goods relevant at this time of year are examined, namely tariff classification of spot-on solution for cats against fleas and ticks. One of the questions raised was whether permission to place a product on the market as a veterinary medicinal product means that the product should be classified as a medicinal product in the Combined Nomenclature.
CJEU: DAF transaction price and actual transport costs that exceed it
The Court of Justice of the European Union (CJEU) examined a case regarding the determination of the customs value of imported goods (technical sulfuric acid). The question was raised whether customs authorities were entitled to add transport costs to the transaction price if, under the Incoterms DAF terms agreed between the parties, the transport costs were already included in the transaction price but actually exceeded it.
Overviews and comments
Customs law and the international context
We, Milda Stravinskė and Monika Bielskienė, met to discuss the broader international context of our day-to-day customs activities. First and foremost, customs law is a 'companion' to international trade, so the international context and cooperation, common rules, agreements, and approaches, are inevitable. No importer or customs authority operates in isolation. The need to reconcile many spheres and interests leads to an abundance of international agreements and requirements. While preparing the courses for customs brokers, we both saw the need to disclose this context to our future colleagues. The easiest way to do this is by sharing personal experiences. So we talked about it.
Managing the cost of making customs declarations: are software solutions the future?
How much does it cost? When goods cross a border, customs formalities must be completed. Customs brokers help businesses complete these formalities. In the UK, £32.50 per declaration is HMRC’s estimated cost of this service, but in reality, the price tag can be as high as £150 per declaration. For businesses trading between the UK and the EU, this is an additional cost of Brexit. Unlike customs duties, this cost cannot be reduced by using the EU–UK Trade and Cooperation Agreement. Many businesses are considering completing customs declarations in-house with the help of software solutions. But is this the right option for everyone?
Mexican tariff code: the fifth pair of digits
In the Mexican United States, the tariff code is found in the law called “Ley de los Impuestos Generales de Importación y de Exportación” (“Law of General Import and Export Taxes”). The law had significant modifications recently, which were published on July 1st, 2020 to come into effect on December 28th of the same year.
A coffee break with… Mette Werdelin Azzam
This is the first “coffee break” article in our new series featuring thought leaders in the field of customs. Our guest is Mette Werdelin Azzam, a rules of origin geek who spent a decade at the World Customs Organization (WCO) as the Senior Technical Officer focusing on origin. She is now is working as an independent Customs and Trade Agreement Specialist with rules of origin as her main expertise and passion.
An introduction to Binding Origin Information
If an importer or exporter is unsure about the origin of their goods, or simply wants legal certainty, they can apply for a Binding Origin Information decision (BOI).A BOI, also referred to as an advance ruling on origin, is a written decision on the origin of the good, issued by Customs to a company prior to an importation or exportation. The decision can cover preferential or non-preferential origin.
Klaipeda FEZ: benefits of free zones for business, activity standards
We are talking to Eimantas Kiudulas, the General Director of Klaipėda Free Economic Zone Management Company, about the benefits of free zones for businesses, the differences and similarities of these zones in various countries, membership in international organizations, and the importance of compliance with international standards.
After Brexit – the new trading reality in Ireland
It has often been said that a cast-iron rule of international trade is that we tend to trade most with the countries in our immediate vicinity. This is very much true of Ireland’s trading relationship with the United Kingdom. This article looks at some of the main aspects of the new trading environment that Irish companies have to contend with.
Trade agreements: the direct transport rule
One of the conditions of a trade agreement is that goods must travel directly between the signatory countries. How is the direct transport rule enforced in practice? This article provides an overview of the answers based on the experience of local practitioners from Lithuania, the United Kingdom, Switzerland, Ukraine, Mexico, and Vietnam.
Customs tariff in simple terms: "mechanical and electric appliances" of chapters 84 and 85
The mechanical engineering industry has a problem. Or more specifically the customs specialists at the respective companies. The departments of these companies can cooperate so well with each other and provide each other with important information for everyday work, but the customs tariff is and remains a sticking point. Simply because there is little background knowledge about it and also the limited offer of further education often focuses on the customs tariff in general. This is also one of the reasons why ERP master data around foreign trade is often not correctly maintained.
Alternative proof of ending transit procedure
In this article, we outline issues that holders of the procedure (who provide a guarantee to cover the amount of potential debt) might face in case the Union transit procedure or common transit procedure is not properly ended in the electronic customs systems. A real case, when the T1 transit procedure was not ended in Germany, and the goods were shipped to Russia, is provided as an example of an issue.
What's wrong with customs valuation in Ukraine?
Customs valuation of goods imported into Ukraine is one of the most challenging stages of cross-border trade operations. It is relatively easy to determine the customs value of goods; however, it is almost impossible to convince the customs that the value is accurate and based on the actual price. Hence, there are many court appeals against customs decisions to adjust the customs value. The statistics of court proceedings on such cases are not in favour of customs. Thus, in cases involving Ukrainian customs, 80% (2330 out of 2917 considered over 11 months of 2020) of court decisions were made in favour of plaintiffs (importers, declarants, etc.).
A chance for businesses to reduce their post-Brexit customs duty bill – UK tariff suspensions
Exactly a year following the publication of the UK’s Global Tariff, the UK government announced on 20 May 2021 that the UK will launch its own tariff suspension scheme, tailored to the needs of UK businesses. This means legible goods will benefit from paying no customs duties upon import into the UK. As a UK business paying customs duties currently, this is a window of opportunity to apply for a tariff suspension to reduce your future customs duty bill. What does this mean in practice, and who can apply for this benefit?
News
EU law news: April 2021
News in week 17: Trade and Cooperation Agreement between the EU and the UK enters into force on 1 May 2021; additional customs duties on imports of certain products originating in the USA; Commission public consultation on the Union Customs Code; read for more news.
EU law news: May 2021
News in week 21. WCO: two new instruments adopted by the Technical Committee on Customs Valuation concerning royalties and licence fees; note on the cross-border movement of vaccines; the 5th Global AEO Conference. EU: exclusion of imports of products originating in the United Kingdom from tariff quotas; representative prices in the poultrymeat and egg sectors; anti-dumping and anti-subsidy measures on imports of various goods; relief from import duties and VAT exemption granted for goods imported to assist to deal with the migration crisis.