Customs Compliance & Risk Management

Dear Readers,

Welcome to the 12^th issue of CCRM Journal. As this is December/January issue, I would like to congratulate you on the 2022 International Customs Day on behalf of our Editorial Board and wish you all the best in all your endeavours!

As you may know, the WCO has dedicated this year to scaling up Customs Digital Transformation by Embracing a Data Culture and Building a Data Ecosystem. From the WCO perspective, recent developments of customs IT systems have enhanced the issues relating to data ethics, such as privacy, commercial secrecy, and regulations for data processing by authorities. At the same time, the building of a customs data ecosystem goes far beyond mere standardisation and intra-organisational data management, embracing transparency and interactions with other public and private actors.

From this point, I would like to draw your attention to the article Customs valuation IS: rules and practice of using the data written by Enrika Naujokė, where she presents insight into the usage of data stored in the Lithuanian national customs valuation information system and related importers rights in cases of valuation disputes. The usage of customs valuation databases has proved to be a sensitive issue, apparently due to different approaches of customs and traders regarding whether there are grounds for reasonable doubts in declared value. Eventually, there is a very narrow margin between utilising such databases as a risk assessment tool and making decisions on value adjustments. 

Continuing the digital transformation topic, Dr Momchil Antov describes advantages and possibilities for applying e-CMR within the frameworks of different customs procedures, given the experience of countries already implementing respective Protocol to the CMR Convention. At the same time, Peter Mitchell provides a detailed overview of online resources available for customs brokers and traders in Canada for tariff classification, adjustments to transaction value, the origin of goods, commercial invoice, customs accounting declaration, calculation of duties, and GST.

In addition, this issue offers two articles reviewing practical aspects of filling out customs declarations regarding the correlation between SAD boxes and data elements of electronic customs declarations and peculiarities of procedure codes utilisation while filling out SAD box 37.

Another important January 'event' for all customs practitioners is, obviously, the introduction of the 2022 revision of Harmonised System and the respective new version of the EU Combined Nomenclature, which is addressed in the article Combined Nomenclature 2022 by Eglė Pučkuvienė and Virginija Dordzikienė. Also, Jonas Sakalauskas analyses the CJEU decision answering the question of how a subsequent change in the tariff classification of a product affects the imposed anti-dumping measures.

The latter reminds us that current international trade faces a growing number of non-tariff barriers and trade restrictions of different forms, which requires traders to make additional efforts on compliance. The present CCRM issue provides you with a number of fresh insights into the field. Lourdes Catrain and Eleni Theodoropoulou review the recent court rulings on the EU ‘Blocking Regulation’ alongside some practical considerations on its further application. The issue may become even more topical as the present political tensions in Europe and beyond may soon result in additional sanctions and restrictions. At the same time, Jovita Dobrovalskienė points out that it is essential to know the active trade defence instruments applied and to be aware of ongoing anti-dumping and anti-subsidy investigations, which may reduce compliance costs and risks of unintended non-compliance in the future.

The knowledge section of the issue is devoted to the 2^nd Global Webinar ‘Books on Customs’ held by CustomsClear on December 16, 2021, which has become an outstanding event gathering most influencing authors writing on customs-related topics. The section opens with an interview with the leading trade facilitation expert Prof Andrew Grainger on his new book Cross-Border Logistics Operations Effective Trade Facilitation and Border Management, which focuses on a better understanding of international logistics operational and legal aspects given the current demands of globalisation. It is then recommended to read insights by Prof Hans-Michael Wolffgang, the author of an absolute classic of customs literature, Textbook of European Customs Law, the first edition of which was published 30 years ago and for now has 10 editions. Last but not least, Dr Momchil Antov, the author of the fascinating book Customs Representation, discusses the recent developments in Bulgarian customs affairs.

I sincerely hope you enjoy this CCRM issue.

Prof Dr Borys Kormych
Member of the Editorial Board