The Customs Watch - Edition 21 - 2024
- Arne Mielken
- Jun 16, 2024
- 13 min read
Legislative, Policy and Guidance Updates in Customs - For Customs Professionals by Customs Professionals
Edition No: 21
Week Coverage: 24
Dates covered: Monday, 10 June 2024 until (and including) Sunday, 16 June 2024
Time to Read: Approx 10 Minutes
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Table of Contents of Edition 21
ADD on electric vehicle value chains in China benefit from unfair subsidies
Commission investigation provisionally concludes that electric vehicle value chains in China benefit from unfair subsidies - IP/24/3231, QaA and Summary
Notice of initiation of an anti-dumping proceeding concerning imports of decor paper (CN codes ex 4802 54 00, ex 4802 55, ex 4805 91 00 and ex 4811 60 00) originating in the People’s Republic of China
EU: Dispute settlement proceedings against Algeria
CBAM: Update to Declarant Portal
CBAM Quarterly Report structure XSD and “stypes.xsd” (ZIP format or XLS format)
China: Battery for electronic vehicles is subsidised unfairly - Countervailing Duties imposed
Russia: Is an EU ban on Russian Aluminium coming?
The Interesting Customs Classification Case of “Calf Hutches”
EU Beef: No more trade restrictions with South Korea for French and Irish beef
Changes Introduced in CDS Release 4.5.0 (6th July 2024)
Barclays Planned Maintenance (CDS Impact) – Saturday/Sunday 6th & 7th July 2024
UK NTFC: Improving Supply Chain Visibility Through Digital Trade Documents
UK Merchandise in Baggage (MIB) Export instructions for Great Britain
Single Trade Window Private Beta Testing
UK: Updates on how to declare your goods to authorised use
UK: Moving Processed or Repaired Goods Guidance updated
June 2024 Update on UK NCTS Phase 5: Multi House Consignment (MHC)
UK NCTS-5 Delivery Update
UK SPS: Notifying the correct risk category for your commodity – compliance
UK SPS: Multiple EHCs on one CHED – compliance
UK SPS: Continuous and/or deliberate non-compliance
ADD on electric vehicle value chains in China benefit from unfair subsidies
Commission investigation provisionally concludes that electric vehicle value chains in China benefit from unfair subsidies - IP/24/3231, QaA and Summary
ADD on decor paper from China
Notice of initiation of an anti-dumping proceeding concerning imports of decor paper (CN codes ex 4802 54 00, ex 4802 55, ex 4805 91 00 and ex 4811 60 00) originating in the People’s Republic of China
EU: Dispute settlement proceedings against Algeria
The EU has initiated dispute settlement proceedings against Algeria due to trade restrictions impacting EU exports and investments since 2021. Issues include import licensing resembling bans, local input requirements for subsidies, and caps on foreign ownership. Seeking to protect EU exporters and companies in Algeria, the EU aims to resolve issues through consultations; arbitration may follow if no agreement is reached. The EU-Algeria Association Agreement, in force since 2005, governs their trade relations, with the EU as Algeria's largest trading partner.
CBAM: Update to Declarant Portal
Most important features for the Declarant Portal for release CBAM 1.2.1.0
CBAM Quarterly Report structure XSD and “stypes.xsd” (ZIP format or XLS format)
China: Battery for electronic vehicles is subsidised unfairly - Countervailing Duties imposed
The EU Commission has provisionally determined that Chinese subsidies to the battery electric vehicles (BEV) industry harm EU producers. Proposed countervailing duties of 17.4% to 38.1% on sampled Chinese producers aim to counterbalance these subsidies. Discussions with Chinese authorities seek a WTO-compliant resolution; duties may be imposed from July 4 if no agreement is reached. Tesla and other producers can request individual duty rates, and procedural steps ensure transparency and compliance with EU regulations throughout the investigation.
Russia: Is an EU ban on Russian Aluminium coming?
Answer given by Ms McGuinness to a MEP written question - Comprehensive ban on aluminium in the 14th package of EU sanctions against Russia. She said: " The EU has been gradually decreasing its dependency on aluminium imports from Russia since early 2023. To date, the EU has not adopted a full import ban on aluminium of Russian origin, however, import bans on various aluminium products have been gradually introduced. Namely, imports of aluminium plates have been restricted since mid-2022 and, on 18 December 2023, with the 12th package of sanctions1 on Russia, the Council banned the import of several new intermediate and finished products (aluminium tubes, pipes, bars, rods and wires), worth over half a billion EUR of annual exports. Russia was the main third country exporting these goods into the EU market"
The Interesting Customs Classification Case of “Calf Hutches”
Dairy calves may live in a calf hutch on large and small farms for the first weeks of life. A calf hutch is an individual pen with a shelter and an outdoor area. The use of calf hutches in farming is a crucial practice. It allows calves with immature immune systems to receive individualized care during the most critical stage of their lives. With a calf living in an individual hutch, we can closely monitor their health by observing their milk and feed consumption, as well as the consistency of their manure. A calf hutch provides a comfortable sleeping space and protects the calves from the elements, making it an essential part of the farming process and the welfare of the animals. The EU Court recently considered a case at hand that is of significant importance as it pertains to the classification of 'calf hutches' under the combined nomenclature (CN). The key question is whether they should be classified under CN heading 9406 00 ('Prefabricated buildings') or CN heading 3926 90 97 ('Other articles of plastics'). The Bundesfinanzhof (Federal Fiscal Court, Germany) has referred the case to the Court of Justice of the European Union (CJEU) for a preliminary ruling, highlighting the gravity of the matter.
Background:
A GmbH & Co. KG imported calf hutches made of polyethylene, seeking classification under CN heading 9406 00 (attracting a lower duty rate), but Customs Office B classified them under CN heading 3926 90 97 (higher duty rate).
Legal Framework:
· CN heading 9406 00 covers "Prefabricated buildings".
· CN heading 3926 90 97 covers "Other articles of plastics".
Dispute: The main issue was whether the calf hutches could be considered "prefabricated buildings" under CN heading 9406 00.
Arguments:
The company argued that the hutches met the criteria for prefabricated buildings despite not forming a fully enclosed space suitable for human use. The Customs Offic argued that the hutches were primarily made of plastic and did not meet the criteria of a prefabricated building.
Court's Decision:
The CJEU ruled that for a product to be classified under CN heading 9406 00 as a "prefabricated building", it must be a structure that persons can enter in an upright position and move around in while upright. The CJEU clarified that a fully enclosed space is not necessary, citing examples like sheds which are included under CN heading 9406 00. Since the calf hutches did not meet the criterion of being usable by persons in an upright position, they were classified under CN heading 3926 90 97.
Conclusion: The CJEU's decision provides guidance that the classification of goods under CN headings should consider objective characteristics and intended use, with a preference for headings providing more specific descriptions.
This ruling clarifies the interpretation of CN heading 9406 00 regarding prefabricated buildings, emphasizing the need for the structure to accommodate human activity in an upright position to qualify under this heading.
EU Beef: No more trade restrictions with South Korea for French and Irish beef
French and Irish beef exports to South Korea resume after EU efforts lift trade restrictions. The Commission's advocacy led to removing barriers and enhancing EU-Korea trade relations. The move recognises EU beef safety standards, marking a significant milestone since Korea's 2001 ban due to BSE concerns. Further EU member states are expected to benefit, supporting the EU's robust beef export sector.
Trade barriers has been removed from exports of French and Irish beef to Republic of Korea.
Changes Introduced in CDS Release 4.5.0 (6th July 2024)
The latest release of the Customs Declaration Service (CDS), Version 4.5.0, brings several important updates affecting customs declarations and procedures:
Export Declarations and GVMS Locations: Export declarations will no longer accept Goods Vehicle Movement Service (GVMS) locations intended solely for imports. Locations affected include Felixstowe, Harwich, Hull, Immingham, Killingholme, Port of Tyne, Purfleet, and Teesport. Using these locations for exports will result in rejection upon submission.
Excise Duty Relief on Denatured Alcohol: New AI Codes (CDAUK, IDAUK, TDAUK) have been introduced for denatured alcohol imports, each corresponding to specific excise duty types and national additional codes. Incorrect codes will lead to declaration rejection.
Removal of National Additional Codes: All X500-series National Additional Codes (X525, X545, X560, X590, X593) have been removed from CDS, affecting declarations using these codes in DE 6/16 or 6/17.
Additional Procedure Code 000: APC 000 must only be used when no other APC applies. Mixing APC 000 with other APCs will result in declaration rejection.
DE 5/27 (Supervising Office) Update: DE 5/27 is no longer mandatory for Import EIDR CCRs under certain conditions, reducing mandatory requirements for customs clearance requests.
Document Code C513 and Supervising Office: When using document code C513 in CCRs, a supervising office is not required unless mandated by specific procedure codes or APCs.
Additional Procedure Codes with Previous Document Code 955: When declaring Previous Document Code 955, APC 11A or 12A must also be declared in DE 1/11 to avoid rejection.
Changes to Document Codes: Several document codes now mandate additional fields (Y891, 9024, 9042), and others have been removed (U003, U031, U052, U058, U072, U073, U077, U095, U096, U097, U100, U500, 9067, 9250-9259).
New Currency Code: Currency code ZIG replaces ZWL for declarations from June 1, 2024, onwards, reflecting Zimbabwe's currency changes.
Goods Location Code Amendments: New Goods Location Codes have been added to CDS, impacting Appendix 16. Updates are detailed in the latest appendices available on GOV.UK.
These updates aim to streamline customs processes and ensure compliance with the latest regulatory requirements. For comprehensive instructions and further details, refer to the CDS documentation on GOV.UK, See all the changes in this detailed document here or contact Arne Mielken.
Barclays Planned Maintenance (CDS Impact) – Saturday/Sunday 6th & 7th July 2024
JCCC
Barclays will be carrying out planned maintenance on their File Gateway environment on Saturday 6th July 2024, 5:30am to 2am Sunday 7th July 2024, this may have an impact on processing durations for some declarations.
If you use Barclays please be aware:
For payments in CDS Cash Account or Duty Deferment Account, Faster Payments is the only bank payment scheme which would normally process on Saturdays and Sundays, so there is no alternative during the outage. The recommendation would be to pay into the account in advance of the outage to ensure sufficient balance was already present.
For Immediate Payment the alternative during the outage would be via the Online Payment Service using Corporate Credit Card or Debit Card. This doesn’t require any change to the declarations, you can choose to make the payment via any supported route, no matter which of the specific Immediate Payment MOP codes you use.
In either scenario, no declarations will be rejected, but they will be held pending release or clearance if the required funds are delayed by the use of Faster Payments during the Barclays outage.
Kind Regards,
UK NTFC: Improving Supply Chain Visibility Through Digital Trade Documents
This was presented to the JCCC group on 10 June 2024. Access the slides here
UK Merchandise in Baggage (MIB) Export instructions for Great Britain
Please find the GB MIB export instructions, the CDS completion instructions will be updated in due course. Download here.
Single Trade Window Private Beta Testing
If any member would like to be invovled in the BETA testing, please let in touch.
Criteria for testing STW are as follows:
You will require a CDS subscription, EORI number and Gov Gateway account.
Imports in the current phase can only be through GVMS locations via RoRo into free circulation in the UK. STW is a live service so dummy information cannot be used for testing.
Features will include:
Manage my company and its users
Set up business relationships
Internal and external collaboration
Simplified declaration procedures
Import amendments
GMR creation
Email notifications
Manual arrival of goods
Agent users (direct representation)
Safety and Security Declarations
When/ if members want to be involved in testing, please contact us and outline clearly that you're interested in being involved in the private beta testing. We will facilitate the contact with HMRC.
UK: Updates on how to declare your goods to authorised use
Learn about declaring goods for authorised use, destruction, or re-export. Updates include guidance on discharging goods with full or retrospective authorisation and by declaration.
UK: Moving Processed or Repaired Goods Guidance updated
Understand procedures for moving goods into free circulation or re-exporting them. Updates include guidance on discharging goods with full authorisation and by declaration.
June 2024 Update on UK NCTS Phase 5: Multi House Consignment (MHC)
To prepare for the implementation of New Computerised Transit System Phase 5 (NCTS5) starting July 1, 2024, important updates have been issued.
What's Changing: In NCTS4, when moving goods from multiple consignors to multiple consignees, consignor and consignee details are provided at the item level. Each item can specify a consignor or consignee.
With NCTS5, the data structure of the transit declaration (IE015) will undergo changes. During the transition period until January 21, 2025, there will be adjustments specifically related to declaring consignor information.
What This Means for You: Transition Period (Until January 21, 2025):
If your goods originate from multiple consignors, individual consignor details cannot be declared for each item. However, consignee information can still be declared per item.
Consignor details can only be declared at the overall consignment level when all goods originate from the same consignor.
Despite changes in declaration, the transit and logistical procedures remain unchanged, allowing goods to move similarly to NCTS4.
'Multiple house consignments' functionality will not be operational during this period, with goods items per declaration limited to 999.
From January 22, 2025 (NCTS5 Final State):
NCTS5 final state introduces 'multiple house consignments' where specific consignor and consignee information can be declared for each house consignment.
Each house consignment covers goods moving from one consignor to one consignee, allowing for flexible declaration based on individual consignment details.
Up to 1999 goods items can be declared in total, an increase from NCTS4’s limit of 999 items.
Third-party or commercial software users will initially have access to multiple house consignments, with availability for users of the free web portal to be announced later by HMRC.
These changes ensure smoother logistics management under the NCTS5 framework, enhancing clarity and efficiency in transit declarations for businesses across the UK. For more details, visit GOV.UK.
UK NCTS-5 Delivery Update
This was presented to the JCCC group on 10 June 2024. Access the slides here:
UK SPS: Notifying the correct risk category for your commodity – compliance
You must notify the correct risk category for animal products and plants. There are more information and tools to help you on GOV.UK.
UK SPS: Multiple EHCs on one CHED - compliance
In most instances, traders will need to have a separate Common Health Entry Document (CHED) and Export Health Certificate (EHC) for each commodity that they are importing. By complying with this, traders will avoid experiencing unnecessary delays and costs.
For compound products, each medium risk POAO element of a compound product must have its own health certificate. Composite products from the EU may need to be accompanied by a health certificate, please review guidance on GOV.UK.
Multiple low risk products can be included on one CHED, but only if they meet all the requirements listed below:
have the same country of origin and the same country of consignment
are travelling on the same transport to the same place of destination and
are covered by the same commercial documentation
For plants: please note if you are completing a CHED PP, you can attach multiple plant certificates to one CHED.
UK SPS: Continuous and/or deliberate non-compliance
It has come to DEFRA'S attention, that some traders and logistics companies are making continuous and/or deliberate errors including:
mis-declaring goods as low risk when they are medium, or as medium when they are high
not including a relevant Export Health Certificate (EHC) or Phytosanitary certificate
including multiple EHCs on one CHED
Continued non-compliance within either the EHC or the CHED is not acceptable and will not be tolerated by Port Health Authorities (PHAs). Deliberate misdeclaration is a criminal offence. PHAs will be actively looking to identify such behaviour.
Where there is repeated non-compliance or evidence of misdeclarations, the appropriate authority will take statutory action. This will result in goods being held at a Border Control Post (BCP) for a physical inspection, which may lead to the consignment being ultimately returned or destroyed at cost to the person responsible for the load.
Our detailed guidance has information on how to comply with your legal responsibilities for:
Paying your SPS charges
You should always pay your documentary, identity and physical inspection charges on time.
PHA’s and the Animal and Plant Health Agency (APHA) will be following up on late payments, and there may be further penalties if they are not paid. Importers are encouraged to establish the applicable SPS charges as soon as possible. Each PHA or Local Authority (LA) will have their own method of payment so please visit the relevant PHA/LA website or contact them direct to ensure you are ready to make the payment. Payments to APHA will be invoiced weekly to the person responsible for the load, notified on IPAFFS.
DEFRA guidance and support: business leaflets and videos
Read our Leaflets to help businesses prepare for a new approach to importing goods to GB under the BTOM.
Visit DEFRA's YouTube channel and watch recordings of our previous webinars for traders.
Contact points for urgent border target operating model (BTOM) queries
Any urgent BTOM/import queries for plants and plant products across England and Wales should be directed to the Animal and Plant Health Agency (APHA), by email, in the first instance: phsi-importers@apha.gov.uk
Alternatively, you can contact them by telephone: +44 (0) 3000 200 301
Any urgent BTOM/import queries for animal products should be directed to the Port Health Authority (PHA) at your nominated Border Control Post (BCP). Find your PHA contact details at your nominated BCP on this map.
If you need technical help with IPAFFS you should call the Animal and Plant Health Agency (APHA) helpline on 0330 041 6999 or email APHAServiceDesk@apha.gov.uk
Sources
EU
Official Journal of the EU
DG TAXUD Website
DG TRADE Website
Social Media (LinkedIn, Twitter, etc).
Information on the National Customs Website of Member States
UK
Information on gov.uk
Information on legislation.gov.uk
Department of Business and Trade
HMRC
DEFRA
Social Media (LinkedIn, Twitter, etc).
Other
World Trade Organisation (WTO)
World Customs Organisation (WCO)
United Nations (Sanctions) - UNCTAD
Social Media (LinkedIn, Twitter, etc).What if I have a question regarding these updates
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