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ETS, CBAM and carbon leakage
The European Commission in its memo published on May 2023 answers to this question: “…Isn’t carbon leakage already addressed by the Emissions Trading System?...” in the following way: “… The EU’s Emissions Trading System (ETS) is the world’s first international emissions trading scheme and the EU’s flagship policy to combat climate change. It sets a cap on the amount of greenhouse gas emissions that can be released from industrial installations in certain sectors. Allowances must be bought on the ETS trading market, though a certain number of free allowances is distributed to prevent carbon leakage. That system has been effective in addressing the risk of leakage, but it also dampens…
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EU, Carbon Border Adjustment Mechanism: how it does work?
The European Commission released on 10.05.2023 a memo with “Questions and Answers: Carbon Border Adjustment Mechanism (CBAM)”. The second question is “How will the CBAM work?…” The answer is “…Designed in compliance with World Trade Organization (WTO) rules and other international obligations of the EU, the CBAM system will work as follows: • As from the CBAM’s entry into force in 2026, EU importers will buy carbon certificates corresponding to the carbon price that would have been paid, had the goods been produced under the EU’s carbon pricing rules; Conversely, once a non-EU producer can show that they have already paid a price for the carbon used in the production…
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UE, CBAM Question and answers
The European Commission released on 10.05.2023 a memo with “Questions and Answers: Carbon Border Adjustment Mechanism (CBAM)”. The first question is “…Why is the EU putting in place a Carbon Border Adjustment Mechanism?…” The EU is at the forefront of international efforts to fight climate change. Indeed, the EU Commission added “…The European Green Deal set out a clear path towards realising the EU’s ambitious target of a 55% reduction in carbon emissions compared to 1990 levels by 2030, and to become a climate-neutral continent by 2050. In July 2021, the Commission made its Fit for 55 policy proposals to turn this ambition into reality, further establishing the EU as…
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16 May 2023: CBAM enters into force
Today 15 May 2023, the EU regulation 2023/956 of 10 May 2023 establishing a carbon border adjustment mechanism (CBAM) has been published on the Official Journal. Its article 36 lays down that “… This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union…”. It means: 16 May 2023 the mentioned regulation will enter into force.
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Spanish customs and AEO maintenance: the suggestions of Agencia Tributaria
In April 2023, the Spanish Customs (Agencia Tributaria) about the maintenance of the AEO underlined that: It is duty of the AEO authorisation holder to verify that the requirements that were audited by the customs for the concession continue to be fulfilled; This obligation requires: the check of the compliance with procedures or tools established for the management of customs activities; the update of ; to detect non-compliance and irregularities in its operations; taking the necessary corrective measures to resolve such situations; The holder of an AEO authorization has to inform the issuing customs authority without delay of any element arising after the granting of the authorisation which may…
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APEC and AEO recommendations
The APEC (Asia Pacific Economic Cooperation) Sub-Committee on Customs Procedures published the “Manual of Best Practices According to the AEO Benefits Survey Under Pillar 3 WCO SAFE Framework” which: focuses on the cooperation between customs and other government agencies (OGAs) in achieving a balance between trade facilitation and trade security control; The purpose for customs to establish the Authorized Economic Operator Program (AEO) programmes to strive for more facilitation in the rapidly changing digital era for enterprises that meet the AEO standard, attract more enterprises to apply for AEO certification, and make trade more convenient; In terms of the collaborative participation of OGAs, this study (performed in the 2020) puts…
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EU Commission answers to ECA report on AEO: target 2025
The EU Commission prublished the “Replies of the European Commission to the European Court of Auditors special report” about the AEO. The first point underlined by ECA and taken into consideration by the European Commision is that “…ECA concludes that the regulatory framework for the EU AEO programme is generally robust, but it also suggests that more adequate provisions might be needed as regards serious and repeated infringements, consultations between the national customs authorities, the benefit of priority treatment of AEO companies as well as the performance measurement of the AEO programme…”. The Commissions’s answers are: commitment to elaborate further guidance to the national customs authorities on priority treatment…
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AEO, compliance and special report 2023 European Court Auditors
On 5.05.2023 the European court of auditors published the “Special report 13/2023: Authorised Economic Operators – Solid customs programme with untapped potential and uneven implementation”. In this document, the Court highlights: About the process: “… The AEO programme is implemented by Member States, whose customs authorities are responsible for granting and managing AEO authorisations in the EU. Member States customs authorities can grant AEO status to any economic operator established in the EU’s customs territory, if the economic operator meets certain EU-wide criteria established in the UCC…” and “…Member States must have clear authorisation processes in place, with detailed national instructions and procedures…”. About the measuring the performance: “…The legislation…
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FLEGT license and customs codes
The FLEGT license is required for the following customs codes: customs code: 4403 Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared. Customs code: 4404 Hoopwood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking sticks, umbrellas, tool handles or the like; chipwood and the like. Customs code: 4406 Railway or tramway sleepers (cross-ties) of wood. Customs code: 4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm. Customs code: 4408…
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EU,Guyana, forest and trade in timber products
The EU and the Republic of Guyana signed a voluntary parthership on forest law enforcement, governance and trade in timber products. This partnership aims to: provide a legal framework aimed at ensuring that all imports into the Union from Guyana of timber products covered by this Agreement have been legally produced; promote trade in timber products. It requires a FLEGT licence to import the wood originating from Guyana; indeed it lays down that: “…FLEGT licensing scheme establishes a set of procedures and requirements aimed at verifying and attesting, by means of FLEGT licences, that timber products shipped to the Union from Guyana were legally produced. In accordance with Regulation (EC)…