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AEO: customs and businesses data monitoring, artificial intelligence and customs obligation.
The AEO (authorized economic operator) is a customs authorization[1] able to qualify its ower as “reliable”. This is an “unicum” inside the group of customs decisions that can be granted: inwards processing relief, outward processing relief, customs warehouse, temporay admission, end use and free trade zone and the approved exporter allow the economic operator either to exercise the right to apply for a special regime or to declare the preferential origin status in the statement of origin instead by means of EUR.1 certificate. In other words, except for the authorized economic operator, the authorizations impact only on the objective element of the customs obligation (it means: the customs debt).…
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Binding value information, EU: new tool for compliance, circular economy and environmental goods
From 1 December 2027 the economic operator can apply for the BVI (binding value information) which is a custom decision on controversional and unclear aspects of the customs value of goods imported. In general, the decisions relating to binding information (origin, customs classification or value-for the future) aim at setting up a transparent and formal process whereby exporters and importers can apply for and obtain in advance, from the customs authorities, binding decisions on the customs treatment to be given to imported or exported goods. In the EU, a decision relating to binding information taken by one Member State is valid in all Member States, and binding on its holder…
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2024 a New Year of customs challenges
The 2023 has been an year very rich in customs news which will impat on the custom operations and compliance. We would list the following topics already published in our website: CBAM carbon border adjustments mechanism for which it is required to: 1) take into account HS codes;2) supply chain management; 3) special regimes; 4) made in/non-preferential origin; 5) customs value; The European regulantion on f-gases import; The due diligence on some goods (cattle,cocoa,palm oil, rubber, soya, wood,coffee) with specific focus on “deforestation and forest degradation”; The ecodesign, recycle and second life for batteries manufactured and imported into the EU; The free trade agreement with the New Zealand; The free…
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FAQ, CBAM and French Customs: an interesting update
The French Customs published its “frequently questions & aswers” about the following points: Import/export of packaging: “ …Nomenclatures 7310 and 7612 are included in Annex 1 of the CBAMregulation. When this packaging is released for free circulation, it is covered by the CBAM. When this packaging is intended to be re-exported, it can benefit from the temporary admission regime which is not a customs regime subject to the CBAM…”; Freight: “…The threshold of €150 per shipment excludes customs-cleared shipments with Delta H7. In contrast, express freight shipments cleared through Delta X and Delta G are covered by the CBAM. Customs regime: “The CBAM is applicable to all procedures giving rise…
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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…
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OECD, AEO and goods and services in international trade
Our focus into AEO and customs compliance brings us to read and share (very shortly) the very interesting OECD Policy paper n.274/2023 “interactions between goods and services in international trade” which: “…examines whether the customs valuation systems and rules of origin are sufficiently attuned to the changing landscape of commercial realities characterised by new and diverse configurations of goods-services trade…”; “…suggests that, while goods-services interactions in international trade do not require a radical restructuring of existing trade law, challenges for the current approaches and practices for customs valuation and origin determination call for policy solutions specific to each type of goods-services configuration…”; Identifies and distinguishes the following trade configurations (goods-services)…
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Chips act, EU trade policy and semiconductor
On 25 July 2023 the European Council approved the regulation to strengthen Europe’s semiconductor ecosystem, better known as the ‘Chips Act’ which aims to: create the conditions for the development of a European industrial base in the field of semiconductors; attract investment; promote research and innovation; prepare European Union for any future chip supply crisis. From a customs perspective, the chips generate consequenses on: value; origin; classification; compliance.
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The next challenge of AEO: deforestation and CBAM
Environment protection is one of the key factor of the European trade policy. This requires a strong due diligence for the import of relevant commodities and the export of relevant product to prevent deforestation and forest degradation linked to cattle, cocoa, coffee, oil palm, rubber, soya and wood trade and deployment. From the other side, from October 2023 the reporting required by the Carbon border adjustment mechanism will enter into force for the import of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. CBAM implies a good management of the following customs aspects required for the AEO: The customs classification will play an important role to well identify the…
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CBAM and penalties
The article 16 of the document draft Ares(2023)4079551 will provide the cases where a penalty is imposed “…(a) the reporting declarant has not taken the necessary steps to comply with the obligation to submit a CBAM report, or (b) the reporting declarant has not taken the necessary steps to correct the CBAM report to comply with the obligations…”. The amount of the penalty, for each tonne of unreported embedded emissions shall be between EUR 10 and EUR 50. Moreover, the penalty can increase in accordance with the European index of consumer prices; in parallel, the national competent authorities may determine the exact amount based on the following criteria: “…(a) the…
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CBAM and carbon price paid
The reporting declarant has to provide in the CBAM report the following information regarding the carbon price paid in a country of origin for the embedded emissions: (a) form of carbon price; (b) the country of origin; (c) any rebate or other form of compensation available in the country that would have resulted in a reduction of that carbon price; (d) indication of the provision of a legal act providing for the carbon price, rebate, or other forms of relevant compensation, including a copy of the provision; (e) type of product indicated by CN code; (f) quantity of embedded emissions covered by the carbon price; (g) quantity of embedded emissions…