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EU Customs & Global Trade update - Week 29

More updates from the Official Journal of the EU, DG TAXUD and DG Trade - are essential for any customs and global trade professional.



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Content

  • EU Customs Value Compendium 2022

  • Chapter 84 and 85 Classification. How to go about it?

  • Implementation of EU sanctions against Russia: Commission adopts proposal for “maintenance and alignment”.

  • Ukraine Sanctions Changed

  • More Sanctions against certain persons: Syria Mercenaries

  • Protocol on Ireland/Northern Ireland: EU Commission launches four new infringement procedures against the UK

  • Graphite electrode systems from China

 
Customs Valuation

EU Customs Value Compendium 2022

Customs valuation determines the value of imports. Along with origin and classification, customs value is used to calculate customs debt as a percentage of customs value.


Six valuation methods:

  1. The transaction value method

  2. The transaction value of identical goods

  3. The transaction value of similar goods

  4. The deductive method

  5. The computed method

  6. The fall-back method

The transaction value method is the primary method for valuing imported goods (Article 70 UCC). Article 71 UCC adds and subtracts from the transaction value (Article 72 UCC). If the transaction method isn't applicable, secondary valuation methods are applied sequentially (Article 74 UCC).


WTO's Customs Valuation Agreement outlines customs valuation principles. The CCV of the WTO and the TCCV of the WCO are international customs valuation forums. The WCO Customs Valuation Compendium compiles TCCV instruments that offer guidance on the international interpretation and application of the Customs Valuation Agreement.


The EU customs legislation transposes the Customs Valuation Agreement rules as follows:

  • Union Customs Code (EU Regulation 952/2013) Articles 69 to 76;

  • Commission Implementing Regulation (EU) 2015/2447 Articles 127 to 146, Article 347, and Annexes 23-01 and 23-02;

  • Commission Delegated Regulation (EU) 2015/2446, Article 71; Commission Delegated Regulation (EU) 2016/341, Article 6.

This guidance on customs valuation is set out in the 2022 EU Customs Valuation Compendium, including:

  • Interpretative notes on customs valuation;

  • Conclusions and commentaries on specific valuation topics (recently adopted guidance that is not yet integrated in the Compendium can be found there

  • An overview of rulings of the Court of Justice of the European Union (CJEU) in the customs valuation area (for the complete and authentic rulings, please consult the CJEU website); and

  • Index of instruments issued by the TCCV.

  • The customs authorities of EU Member States are competent to implement these common rules in their respective territory.


2022 EU Valuation Compendium EN
.pdf
Download PDF • 2.12MB

 

Customs Classification

Chapter 84 and 85 Classification. How to go about it?

In the field of mechanical engineering, there is a problem. More specifically, the experts in customs at each company. The different parts of these companies can work well together and share important information for daily business, but the customs tariff is and will continue to be a problem. In this blog post, we try to give an overview of these two chapters and go into some of them in more depth.https://www.customsmanager.info/post/classification-under-chapter-84-and-85-how-do-go-about-it


 

Sanctions

Implementation of EU sanctions against Russia: Commission adopts proposal for “maintenance and alignment”.

The European Commission has decided on a new set of measures to keep the EU's six wide-ranging and unprecedented sets of sanctions against Russia working and to make them even stronger.


The "Maintenance and Alignment" package explains a number of rules to make them clearer for operators and make it easier for the Member States to enforce them. It also makes the EU's sanctions more like those of our partners and allies, especially those in the G7. The package is important because it shows that the Commission is still determined to protect food security around the world. The package will put a new ban on importing gold from Russia and tighten our controls on exporting dual-use and high-tech items. By doing this, it will make sure that EU sanctions are even more in line with those of our G7 partners. It will also make it harder to report, which will make it harder for the EU to freeze assets. The package also says again that EU sanctions have nothing to do with the trade of agricultural goods between Russia and other countries. In the same way, the text makes clear how some financial and economic sanctions work in detail. Lastly, the current EU sanctions could be kept in place for another six months, until the next review at the end of January 2023. In preparation for its adoption, Member States will now talk about the package in the Council.

Website


No content: Ukraine Sanctions

  • Council Regulation (EU) 2022/1269 of 21 July 2022 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine

  • Council Implementing Regulation (EU) 2022/1270 of 21 July 2022 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine

  • Council Decision (CFSP) 2022/1271 of 21 July 2022 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine

  • Council Decision (CFSP) 2022/1272 of 21 July 2022 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine


Ukraine Sanctions Changed

The Council changed Decision 2014/145/CFSP on July 21, 2022 with Decision 2022/1272 (3). This added a new exception to the asset freeze and the rule against giving funds and economic resources to certain people and organizations to stop or lessen an event likely to harm human health, safety, or the environment. In light of the Union's commitment to preventing and fighting global food insecurity, Decision (CFSP) 2022/1272 removes designated banks from the asset freeze and the ban on making funds and economic resources available to them. Decision (CFSP) 2022/1272 makes an exception to the asset freeze and ban to allow for the orderly winding down of operations, including correspondent banking relationships, with one designated bank. To ensure that Regulation (EU) No. 269/2014 is implemented effectively and uniformly, and because of the complexity of schemes to avoid sanctions, designated persons and entities with assets in a Member State must report these assets and work with the competent authority to check that they have done so. It's also a good idea to tighten reporting rules for Union operators to prevent asset freezes from being broken. If this obligation isn't met, it would be a way around freezing assets, which could lead to penalties if the country's rules and procedures allow for such penalties.


Council Regulation (EU) 2022/1273 of 21 July 2022 amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine


More Sanctions against certain persons: Syria Mercenaries

The EU backs Ukraine's sovereignty and territorial integrity and condemns actions that harm it. Syria provides military support for Russia's unprovoked aggression against Ukraine. Due to the gravity of the situation, the Council believes six people and one entity involved in hiring Syrian mercenaries to fight alongside Russian troops in Ukraine should be added to Annex I of Regulation (EU) No 269/2014.


Council Implementing Regulation (EU) 2022/1274 of 21 July 2022 implementing Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine






Syria: Sanctions

Syria still worries the Council. The conflict in Syria is far from over, and the government continues to repress. Also, the Syrian regime provides military support for Russia's unprovoked attack on Ukraine. Due to the gravity of the situation, the Council believes four people and one entity should be added to Annex II of Regulation (EU) No 36/2012. Therefore, Regulation (EU) No. 36/2012 should be changed.

Council Implementing Regulation (EU) 2022/1275 of 21 July 2022 implementing Regulation (EU) No 36/2012 concerning restrictive measures in view of the situation in Syria


 
Brexit

Protocol on Ireland/Northern Ireland: EU Commission launches four new infringement procedures against the UK


EU wants a solid partnership with UK. This partnership must be built on respecting each side's legally binding promises. This entails implementing the Withdrawal and Trade and Cooperation Agreements. Both sides negotiated and signed contracts. After long and hard talks, the EU and UK came up with the Protocol to deal with Brexit and the sort of Brexit the UK chose. The protocol part of the Withdrawal Agreement. It prevents a hard border on Ireland, secures the 1998 Good Friday (Belfast) Agreement, and maintains the EU's, Single Market. The EU has proven it knows how difficult it is to implement the Protocol and that solutions can be found.


The Commission has decided to start four new procedures against the UK for breaking the rules in Northern Ireland:


  1. Not following customs, supervision, and risk control rules for moving goods from Northern Ireland to Great Britain. This makes Northern Ireland smuggling riskier. It allows traders to avoid EU export restrictions to third countries. It also allows goods to be exported to the EU but not leave Northern Ireland's customs territory. On December 17, 2020, the UK declared Northern Irish goods could enter its market "without barriers." EU agreed to provide "equivalent" real-time information through "alternative means" The UK does not collect export declaration data for Northern Ireland-bound goods. It doesn't tell the EU about these movements, so EU officials can't track the goods.

  2. Failure to report the implementation of EU excise duty legislation, which takes effect on February 13, 2023. Member states and the UK (for Northern Ireland) were supposed to implement this Directive by Dec. 31, 2021, and tell the Commission. Not in the UK. If these rules aren't followed, excise-dutied goods moving to and from Northern Ireland could be taxed less than in the EU. This would risk EU finances.

  3. Failure to report EU rules on alcohol excise duties, which help small and artisanal producers get lower rates. All member states and Northern Ireland in the UK had to implement this Directive by December 31, 2021. If these rules aren't followed, excise duties on alcohol entering and leaving Northern Ireland may not be paid or paid at a lower rate than in the EU. This would risk EU finances. Any difference from EU-harmonised excise duties would affect sales competition in the Single Market.

  4. Not following EU VAT rules for online shopping (Import One-Stop Shop) (IOSS). Starting July 1, 2021, businesses can use the IOSS to meet their VAT obligations for internet sales of imported goods. It lets suppliers and electronic interfaces that sell imported goods worth less than €150 to EU buyers declare and pay VAT through one Member State instead of registering in every state where they sell. Clarity for EU consumers. VAT is included in the price they pay a One Stop Shop-registered EU or non-EU seller or platform. The UK has not yet implemented the IOSS in Northern Ireland. This threatens EU finances.


With the decision, formal infringement processes under Article 12(4) of the Protocol and Article 258 of the TFEU have begun. In letters written to the UK, the government is urged to comply with the Protocol. UK has two months to reply. If not, the Commission will act.




 
ADD

Graphite electrode systems from China

Commission Implementing Decision (EU) 2022/1263 of 19 July 2022 terminating the anti-subsidy proceeding concerning imports of graphite electrode systems originating in the People’s Republic of China


Sources

22/07/2022 L195 C281 C281I C282

21/07/2022 L192 L193 L194 C280

20/07/2022 L191 C278 C279

19/07/2022 L190 C277

18/07/202 2L189 C274 C274A C275 C276

+ DG trade and DG Taxud


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

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