-
Risk management and legal nature of the AEO
The risks management is the pillar of the internal compliance systems linked to the AEO status. According to the “Authorised economic operator-guidelines” TAXUD/B2/047/2011 –Rev.6 an AEO must focus on processes, management of risk, internal controls and measures taken to reduce risks. The AEO approach, based on the risks management, should include a regular review of processes (directly or indirectly impacting on the customs obligation), controls and, measures taken to reduce or mitigate risks related to the international movement of goods. In particular, internal control is the process implemented by the AEO to prevent, detect, and address risks in order to assure that all relevant processes are adequate. In other words,…
-
New European customs code proposal: AEO, trust and check trader status and the monitoring
European Parliament, on 22 February 2024, voted and published the document “…The compromise amendments Establishing the Union Customs Code and the European Union Customs Authority and repealing Regulation (EU) No 952/2013” Proposal for a Regulation (COM(2023)258 – 2023/0156(COD))…” It has been adopted in the committee with 34 votes in favour to 0 against and 5 abstentions. It has to be put to a vote at an upcoming plenary session (most likely in March) and constitute Parliament’s position at first reading. In particular, find below, from our point of view, the main points of the proposal: a) The list of the tasks of the customs authorities. This is a very interesting…
-
AEO and EU Customs union reform: EU Parliament report 20 February 2024
As we informed on 2023 the European Commission published on the official journal the “Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing the Union Customs Code and the European Union Customs Authority, and repealing Regulation (EU) No 952/2013”. About the AEO, the mentioned document (n. Document 52023PC0258 and COM/2023/258 final) provides with the following provisions. Firstly, about the “ex-post evluation/fitness checks of existing legislation” indicated into the explanotry memorandum “…the proposal undelines that “…Second, some tangible progress in improving the customs environment has been realised but does not evenly concern all the areas analysed in the evaluation. The UCC contributed to clarifying and harmonising customs…
-
The legal nature of AEO between circular economy, compliance and environment protection
The AEO status represents an accidental and non-mandatory element of the customs obligation. This is given by the authorization which is the unique customs decision able to “defining and qualifying” its owner. Indeed, in this way the economic operator becomes reliable within the context of a participatory cooperation relationship with the customs administration. The AEO authorization is an administrative deed released by the national customs entity/bodies in accordance with the EU regulations. This is valid throughout the EU customs territory and, if a mutual recognition agreement is valid, also with third countries; furthermore, despite being regulated in customs regulatory acts, it is important to highlight that it constitutes an authorization…
-
CBAM and AEO: the workflow to comply with
The Guidance document on CBAM implementation for importers of goods into the EU shares the following workflow aiming to simply the operational aspects of the CBAM compliance: The importer (reporting declarant) receives CBAM goods from various installations, possibly from different countries outside the EU. For each import, the importer lodges the usual customs declaration. The customs authority of the relevant EU Member State checks and clears the import, as usual. The customs authority (or the IT system used) informs the European Commission (using the CBAM Transitional Registry) of this import. This information can then be used to check the completeness and accuracy of quarterly CBAM reports. The reporting declarant requests…
-
CBAM: What needs to be monitored by operators
TheGuidance document on CBAM implementation for importers of goods into the EU informs that the first element is the monitoring of direct emissions of the installation. Whenever an installation produces several different products, the emissions must also be appropriately attributed to the individual products. This non binding document adds that must be reported also the embedded emissions of the precursor materials. Where operators purchase precursors, they need to obtain data on the embedded emissions of precursor materials used in the production of the CBAM goods from the supplier of these precursors. The following information must be reported by importers in the CBAM report: The total quantity of each type of…
-
CBAM, sanctions and AEO
The regulation draft C(2023) 5512 final “…laying down the rules for the application of Regulation (EU) 2023/956 of the European Parliament and of the Council as regards reporting obligations for the purposes of the carbon border adjustment mechanism during the transitional period…” provides with the regulations for sanctions related to CBAM transitional register regulation. In particular, it lays down that “member States shall apply penalties in the following cases: (a) where the reporting declarant has not taken the necessary steps to comply with the obligation to submit a CBAM report, or (b) where the CBAM report is incorrect or incomplete in accordance with Article 13, and the reporting declarant has…
-
Circular economy, free trade agreement and AEO
The OECD report (2020) International trade and the circular economy underlines that: “…At the regional level, different economies are considering including circular economy provisions in free trade agreements (FTAs). In order to implement these provisions, it is necessary to better understand the interrelations between trade and circular economy…”; “…Transitioning towards a more resource efficient and circular economy provides a way to decrease material use and reduce associated environmental impacts across the value chain. A resource efficient circular economy has broad interlinkages with international trade through global supply chains, end-of-life value chains, and services trade…”; “…thus, facilitating trade is important to support refurbishment and remanufacturing activities. Barriers in bringing back a…
-
Due diligence, import deforestation free goods and blockchain
The EU Regulation 2023/1115 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010” has the following goals: minimising the Union’s contribution to deforestation and forest degradation worldwide, and thereby contributing to a reduction in global deforestation; reducing the Union’s contribution to greenhouse gas emissions and global biodiversity loss The due diligence statement requires companies to collect information, identify risks and mitigate them, organise and keep the information and evidence relating to each relevant product for a period of five years from the date of placing, making available or…
-
Customs classification, relevant goods and trade compliance
The EU Regulation 2023/1115 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010” has the following goals: minimising the Union’s contribution to deforestation and forest degradation worldwide, and thereby contributing to a reduction in global deforestation; reducing the Union’s contribution to greenhouse gas emissions and global biodiversity loss Relevant commodities and relevant products will not be placed or made available on the market or exported, unless all the following conditions are fulfilled: (a) they are deforestation-free; (b) they have been produced in accordance with the relevant legislation of…