-
CBAM, updated frequently questions and answer for a compliance check
On 28 February 2024 the European Commission published the new CBAM frequently questions & answers (FAQ) which modify the points n. 10, 12, 27, 28, 30, 44, 50, 56, 68, 91, 92, 99 of their last version. In particular, the new point n.10: QUESTION N.10: “Does the CBAM apply to ‘returned goods’? ANSWER N.10: “Returned goods are goods defined in Article 203 of the Union Customs Code (Regulation (EU) No 952/2013). They are goods that are released for free circulation and benefit from duty exemption because they were Union goods before, either because they have originally been exported as Union goods or because they were previously released for free circulation,…
-
CBAM: questions and answers from EU Commission
EU Commission on 23 January 2024 updated its “ Carbon Border Adjustment Mechanism (CBAM) Questions and Answers” and checks the following points: General topics about the CBAM; Reporting aspects, responsabilities, procedures and general issues related; The transitional registry; Methodology for calculationg embedded emission in CBAM goods (cement,fertilizer, electricity, hydrogen, iron, steel, aluminum/steel) Customs and CBAM. Definitve period. For what is concerning, the customs implications of CBAM, the “ Carbon Border Adjustment Mechanism (CBAM) Questions and Answers” provides with the following answers: QUESTION: Can an importer use different customs representatives for the customs declaration and the CBAM reporting? As regards the reporting requirements applicable during the transitional period, the CBAM Regulation…
-
AI, customs, origin, value and classification: how to implement the compliance
The artificial intelligence is a way to improve the compliance of the economic operators with the regulations on preferential origin, non-preferential origin, value and classification; shortly, it is a way to: make more robust the pillars of customs obligation on which it is based the audit for the AEO authorization; Well assess and mitigate the risks of non-compliance and, therefore, reduce or avoid: audit costs, operational disruptions, legal expenses; Implement the internal customs knowledge and expertise and the internal skills to develop internal controls (monitoring). ##preferentialorigin. The preferential origin is the status of the goods are eligible for the free trade agreement rules. The free trade agreement is is an…
-
Made in and the substantial working: the point of view of European Court of Justice
The European Court of Justice in its judgment C-Case C‑210/22 released on 21 September 2023 declares that, in the determination of the made in, apart the type of rule of origin for non-preferential origin calculation, it is important to check if a substantial transformation has been performed . Indeed, processing or working operations may still be substantial when that processing or working brings a clear qualitative change to the product. This a very interesting judgement that can provide support in the ongoing management of the AEO. The European legal framework is made by the following pillars: the Guidance on non-preferential rules of origin (March 2022) TAXUD; the regulations currently in force…
-
CBAM and made in: some explanations
CBAM (carbon border adjustment mechanism) obligations require the good knowledge of the non-preferential origin. The first questions that can arise is: what is “non-preferential origin” or “made in”? The non-preferential origin is the economic nationality of a good; for istance: “made in EU, made USA”. In other words, the mentioned status is obtained where goods are “wholly obtained” in one country or, when two or more countries are involved in the manufacture of a product, origin is obtained where goods underwent their last, substantial, economically-justified processing or working, in an undertaking equipped for that purpose, resulting in the manufacture of a new product or representing an important stage of manufacture.…
-
CBAM and definitions for a better understanding
The Guidance document on CBAM implementation for importers of goods into the EU confirms and provides with the following definitions: ‘tonne of CO2e’ means one metric tonne of carbon dioxide (‘CO2’), or an amount of any other greenhouse gas listed in Annex I adjusted to the equivalent global warming potential of CO2. ‘Direct emissions’ means emissions from the production processes of goods, including emissions from the production of heating and cooling consumed during the production processes, regardless of the location of the production of the heating and cooling. ‘Indirect emissions’ means emissions from the production of electricity, which is consumed during the production processes of goods, regardless of the location…
-
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…
-
Non-preferential origin and economically justified working
In Harley-Davidson Europe and Neovia Logistics Services International v Commission (T-324/21), the General Court has dismissed an action for annulment against a Decision by the European Commission (2021/563) on the validity of certain decisions relating to binding origin information (BOI). About the “commercial/non-preferential origin” (made in) of the goods, the Tribunal highlithed that: the relocation of the production in a customs territory outside the European Union, just only to avoid the application of its commercial policy measures, must be considered incapable because it is not economically justified; the EU Commission is entitled to annul any BOI (binding origin information) and also BTI (binding tariff information) when these “rulings” are released…