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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,…
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Customs classification, parts and European Court of Justice
The European Court of Justice Chamber X with case n.725/21 of 9.03.2023 , stated that: in the customs nomenclature there is not a definition of ‘part’ ; part does not cover items which are not indispensable, for the completed good, to fulfil its function. It is useful to share the following points of the judgement: “….in accordance with General Rule 1 for the interpretation of the CN, the tariff classification of goods is determined according to the terms of the headings and section or chapter notes of that nomenclature. In the interests of legal certainty and ease of control, the decisive criterion for the tariff classification of those goods must…
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European Union, circular economy and customs compliance
The report “Squaring the Circle. Policies from Europe’s Circular Economy Transition” published in December 2022 by the highlights (among other thinks) the following peculiarities of the European circular economy: The private sector is playing a crucial role in the enforcement of the circular economy with its trade and environmental policies; Customs controls on the ecodesign compliance of the products (like the batteries). Indeed: “…New policy proposals are shifting the focus upstream toward more sustainable and circular products. With the proposal for a new Ecodesign for Sustainable Products Regulation (ESPR) published in March 2022, the EC has presented a framework that will allow it to regulate circularity requirements for almost all…
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CBAM ,climate mitigation, Q&A
The European Commission released on 10.05.2023 a memo with “Questions and Answers: Carbon Border Adjustment Mechanism (CBAM)”. In this documenti t is analysed the following topic: “…How will you engage with third countries and industry going forward?…”. The answer is that: “… When preparing the CBAM proposal, the Commission already consulted stakeholders widely, both through an open public consultation and more targeted consultations. In addition, the Commission engaged in extensive bilateral consultations with public authorities in EU and non-EU countries, business associations, individual companies and NGOs. Targeted consultations were also undertaken with senior managers and associations from the basic materials sectors, manufacturers, NGOs and policymakers. During this transition period we…
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Classification, green goods and Customs reform
On 17.05.2023 the EU Commission released the communication “ Customs reform: Taking the Customs Union to the next level” COM(2023) 257 final. This communication underlines that: “…the EU should take a leading role in developing a global green customs policy…” and “…There are several areas in which global customs can support environmental objectives. Besides greening customs administrations themselves41, modernising the classification of goods in line with the objectives of the twin transitions should be part of the ongoing strategic review of the harmonised system convention. Options for greening the harmonised systems (HS) classification range from issuing lists of environmental goods, to changing the structure of the HS, or even alterations…
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EU Customs Reform: AEO, environment, simplifications and digitalization
On 17.05.2023 the EU Commission released the communication “ Customs reform: Taking the Customs Union to the next level” COM(2023) 257 final. This interesting document starts with a short message of Ursula von der Leyen for which “…It is time to take the Customs Union to the next level, equipping it with a stronger framework that will allow us to better protect our citizens and our Single Market. I will propose a bold package for an integrated European approach to reinforce customs risk management and support effective controls by the Member States…”. The three principles on which is based the reform of the european customs are: An efficient Customs…
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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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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…