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EU Customs & Global Trade update - Week 26

All you need to know on what's been happening in the EU - in a format nowhere else to be found.


  • EU – New Zealand Trade Agreement: Unlocking sustainable economic growth

  • EU suspends customs duties for some products

  • Import Control System 2 (ICS2) - Release 2 - New regulations for incoming air cargo to the EU

  • Further UK border procedures and formalities postponed until the end of 2023

  • UK gets new customs declaration system

  • Reduction in number of Internal Inland Border Facilities

  • ADD: Thermal Paper

  • ADD: Yarn from China

  • Sanctions

  • Congo Sanctions

  • Russian Elites, Proxies, and Oligarchs Task Force Joint Statement

  • Court Ruling on duty and tax liability indirect representative

  • Taxation


The EU and New Zealand have concluded negotiations for a Trade Agreement. The deal is set to open significant economic opportunities for companies and consumers on both sides. Bilateral trade is expected to grow by up to 30% thanks to this deal, with EU annual exports potentially growing by €4.5 billion. The EU-NZ Trade Agreement is the first ever to integrate the EU's new approach to trade and sustainable development. Tariffs will be eliminated as of day one on key EU exports such as pigmeat, wine and sparkling wine, chocolate, sugar confectionery and biscuits. Negotiations for a Free Trade Agreement with New Zealand started in June 2018. Both sides agreed to ambitious TSD commitments covering a wide range of issues. The deal also liberalises green goods and services at entry into force, opening up new opportunities for European companies.


EU suspends customs duties for some products

Certain Common Customs Tariffs (CCT) duties are suspended from 1 July 2022. This ensures a continuous supply of some non-EU agricultural and industrial products and prevents market disruptions. So, goods on the Annex to Regulation (EU) 2021/2278 can be imported with lower or no duties. At the same time, some products made in the EU that are not on the Annex to Regulation (EU) 2021/2278 aren't good enough for EU industries that use them. Because it's in the EU's best interest to have enough of some products and because equal, equivalent, or alternative products aren't created in enough quantities, CCT duties on those products must be eliminated when imported.

In addition, some battery-related products not named in Regulation (EU) 2021/2278 should have CCT tariffs partially suspended. This will boost EU battery integration. For correct interprétation Product description and classification must be altered for some CCT duty suspensions listed in Regulation (EU) 2021/2278. This takes into account product changes and market economic trends. Suspending CCT duties on selected products on the Annex to Regulation (EU) 2021/2278 is no longer in the Union's best interest. These items should be deregulated by July 1, 2022.

Reg. (EU) 2021/2278 reflects this.

This Regulation's changes to tariff suspensions for the affected products should take effect on July 1, 2022.

Import Control System 2 (ICS2) - Release 2 - New regulations for incoming air cargo to the EU

Under the second phase of the EU's new customs pre-arrival security and safety programme - Import Control System 2 (ICS2) Release 2, all freight forwarders, air carriers, express couriers, and postal operators transporting goods to or through the European Union (including Norway and Switzerland) will be required to submit advance cargo information in the form of a complete entry summary declaration (ENS) beginning 1 March 2023. It is the obligation of economic operators to comply with the standards of ICS2 Release 2. Economic operators handling, sending, shipping, and carrying freight, express, or postal consignments to or across the EU by air must comply with new advance data reporting requirements for pre-loading and pre-arrival customs risk assessments beginning 1 March 2023.

Those in the air transportation industry who are now entering advance cargo information into the Import Control System (ICS) will be required to progressively begin filing this data into ICS2 throughout the operational roll-out of Release 2.

ICS2 Release 2 Preparation: Conformance Testing

Economic operators are highly recommended to plan ahead of time for Release 2 to minimise delays and non-compliance.



Further UK border procedures and formalities postponed until the end of 2023

As you may already know, the introduction of additional border procedures and formalities in the United Kingdom (UK) as of the 1st of July 2022 has been postponed. This means that Brexit is not over yet. The announcement of a new regime for import checks in the UK is expected in the autumn.

The United Kingdom (UK) has postponed the introduction of the border procedures and formalities announced for the 1st of July 2022 and beyond. In concrete terms, this means that the business community currently does NOT need to prepare for:

  • Compulsory security declarations for all cargo – ENS

  • Certification for most veterinary and phytosanitary cargo

  • Checks of this veterinary and phytosanitary cargo at Border Control Posts

  • Certification and checks for all dairy products

  • Certification and checks for all remaining veterinary cargo

The British government has announced that it will publish a new import controls regime in the autumn of 2022. This is done in a Target Operating Model, the introduction of which will commence at the end of 2023. The official statement from the British government about the postponement of the customs rules can be found here.

EU Speech on UK, NI and relations

  • The European Union seeks to have a strategic, enduring and mutually beneficial partnership with the United Kingdom.

  • We respect the decision of UK voters to leave our union, as well as the type of Brexit the UK government chose.

  • The Protocol on Ireland / Northern Ireland is an integral part of the Withdrawal Agreement. It marks the first time that the EU has entrusted the control of its economic border to an outside partner.

  • The Protocol is fully compatible with the Belfast Agreement, and the EU will not accept this delicate balance being unilaterally and illegally disapplied because of an outright U-turn by the UK.

  • Even allowing for the effects of the COVID-19 pandemic, the impact of Brexit on trade between the EU and the UK is starting to show more clearly. Trade is no longer as frictionless and dynamic as before, for both goods and services.

  • Eurostat data shows that last year, goods imports from the UK to the EU declined by 13.6% compared to 2020 levels, and by nearly 25% compared to 2019 levels.

  • According to Eurostat, the value of services imported from the UK to the EU fell by roughly 7% last year, compared to 2019.

UK gets new customs declaration system

As of the 30th of September 2022, the UK will replace the existing customs declaration system CHIEF with a modern and more secure IT platform, which will be called the Customs Declaration Service (CDS). All British declarants should prepare for this in good time. The replacement will take place in two phases:

  1. After the 30th of September 2022, it will no longer be possible for British declarants to use CHIEF for import declarations.

  2. After the 31st of March 2023, the export declarations via CHIEF will also be discontinued.

Make sure your UK counterparts are ready in time for this new declaration system. Otherwise, your cargo in the UK may be delayed. More information is available at Customs Declaration Service.

Reduction in number of Internal Inland Border Facilities

The UK is reducing the number of locations for import controls. These Inland Border Facilities (IBFs) were set up to support customs checks following the UK’s departure from the European Union.


Thermal Paper

The EU has made imports of certain lightweight thermal paper originating in the Republic of Korea subject to registration following the re-opening of the investigation in order to implement the judgment of the General Court of 2 April 2020 in Case T-383/17, as upheld by the Court of Justice in Case C-260/20 P, with regard to Commission Implementing Regulation (EU) 2017/763

Yarn from China


Congo Sanctions

Following the judgment of the General Court in case T-108/21 (2), Ferdinand Ilunga LUYOYO was be deleted from the list of persons, entities and bodies set out in Annex Ia to Regulation (EC) No 1183/2005

Russian Elites, Proxies, and Oligarchs Task Force Joint Statement

Russian Elites, Proxies, and Oligarchs (REPO) Task Force has blocked or frozen more than $30 billion worth of sanctioned Russians' assets. Task Force members have also heavily restricted Russia's access to the international financial system. The task force is working collaboratively with the private sector to promote effective sanctions implementation. Task Force: Financial institutions and other entities have helped to identify and immobilize assets subject to sanctions. Where available, REPO members relied on the use of registries, such as bank accounts and beneficial ownership registries. Together, we will ensure that our sanctions continue to impose costs on Russia for its aggression in Ukraine.

Court of Justice

Court Ruling on duty and tax liability indirect representative

The court ruled Article 77(3) of the UCC must be interpreted to mean that, according to only that provision, an indirect customs representative is only responsible for the customs duties payable on goods that he or she has declared for customs purposes, but not also for the import value added tax on the same goods; Article 201 of the EU VAT Directive.



With crises brewing, Europe should plan for the future of taxation.

The Commission issued its Annual Report on Taxation 2022 today, highlighting that EU Member States' tax income has declined for the first time since the 2009 financial crisis, while public spending soared from 46.5% in 2019 to 53.5% in 2020 owing to the COVID-19 problem. This paper reveals that the epidemic and Russia's invasion of Ukraine challenge our economies' resilience and response time. Some urgent actions to address the crisis, including a temporary decrease in energy taxes and income assistance for poorer families, have already been taken. The Annual Report on Taxation 2022 was issued with a report on recent tax trends in member states. Today's report marks the beginning of a series of activities to help shape a future-ready tax structure. Today, Commissioner Gentiloni, Commissioner Schmit, and other high-level speakers will discuss "Mega-trends and the effect on Taxation" and the adjustments required to make taxation more robust and better performing over the long run. This series of activities will conclude in a high-level Tax Symposium on "EU tax mix until 2050" on November 28, 2022. The Symposium will produce information and ideas on large-scale taxation reforms required throughout the EU and will shape future European Commission policy objectives.






If you have any questions about this update, please let us know.

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