EU Parliament, circular economy and import export flow

On 25.04.2023 the EU Parliament published a short report about the circular economy where it is stated that: “…The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended…”.

Moreoever, this report, about the need of reduction of  raw material dependence, hilights that

• The world’s population is growing and with it the demand for raw materials. However, the supply of crucial raw materials is limited;
• Finite supplies also means some EU countries are dependent on other countries for their raw materials. According to Eurostat, the EU imports about half of the raw materials it consumes.
• The total value of trade (import and exports) of raw materials between the EU and the rest of the world has almost tripled since 2002, with exports growing faster than imports. Regardless, the EU still imports more than it exports. In 2021, this resulted in a trade deficit of €35.5 billion.
• Recycling raw materials mitigates the risks associated with supply, such as price volatility, availability and import dependency. This especially applies to critical raw materials, needed for the production of technologies that are crucial for achieving climate goals, such as batteries and electric engines.

Also in this case, from the customs point of view, the circular economy consequences might be:

• Determination of non preferential origin;
• Knwoledge of rules of origin laid down by the free trade agreement which allow criteria for calculating the preferential status of goods recycled, reworked, etc;
• Customs classification of the goods recycled, sustainable, etc;
• The customs valuation of these goods;
• AEO compliance
• Other regulatory issues (like: waste import/export regulations).