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  • The Customs Watch - Edition 13 - 2024

    Legislative, Policy and Guidance Updates in Customs - For Customs Professionals by Customs Professionals Edition No: 13 Week Coverage: 15 Dates covered: 08 April 2024 - 15 April 2024 Time to Read: Approx 10 Minutes FEATURE ARTICLE UK: 2023 Duty Suspension Outcomes for 2024 have come into force Navigating Duty Suspensions: A Guide for Customs Professionals: Can you benefit? As a custom professional, are you looking to save on customs duties for your specific products? Dive into this insightful blog entry where we unravel the intricacies of duty suspensions in 2023 and how your business can benefit from them. Learn about the sectors that stand to gain, the application process, and how expert assistance can streamline your efforts. Community Meet-up This Week UK Duty Suspensions: How Can You Benefit? Join us this Friday, 19 April 2024, at 12pm UK time (1pm CET) for our community meet-up where we unravel all details about UK Duty Suspensions. We will be discussing answers to these questions related to duty suspensions: What products benefit from the 2023 duty suspensions? What Harmonized System (HS) chapters can benefit from these suspensions? When do these suspensions come into force? Which business sectors benefit from these suspensions? How can businesses apply for duty suspension in the future? What is the process of duty suspensions? Who can help submit a successful duty suspension application to the government? An open forum discussion will also be held where you can ask all your questions. Register here: www.customsmanager.org/events UPDATES - FOR ACTION 1. Access Trader Testing for the New Computerised Transit System Phase 5 HMRC announces the availability of the online service for testing the New Computerised Transit System (NCTS) Phase 5 starting in July 2024. This platform offers users an opportunity to engage in practice declarations and notifications before the official launch. Key features of the service include: ·         Sending departure declarations and arrival notifications ·         Saving draft declarations ·         Cancelling declarations ·         Amending rejected declarations Let’s test it! 2. Prepare for import controls from 30 April 2024 At the JCCC Customs Processes and Procedures (CPP) Subgroup meeting this week (which Arne Mielken attended), HMRC emphasised the importance of data alignment between CHED on IPAFFS and CDS declarations to avoid "no match" scenarios. Importers were advised to comply with all requirements by 30 April, with heightened controls expected at each location. Please see our BONUS Fictional Case Study for detailed information: 3. Get your hands on this Infographic concerning the new SPS controls The infographic will outline the following steps in the correct order to ensure smooth importing on April 30: 1. Obtain Export Health Certificates (EHCs) for your products. 2. File an Import of Products, Animals, Food and Feed System (IPAFFS) notification. 3. Submit a customs declaration. 4. Ensure there are no "No Match" validation problems in ALVS. 5. Proceed with importing, potentially using the Goods Vehicle Movement Service (GVMS) for SPS products. 6. Identify the designated BCP responsible for you. 7. When selected for an inspection, the driver will call (drive to) BCP. Do not ignore an inspection request, or your goods will most likely be destroyed. 8. Deal with the inspections and provide access to the goods and documents. Each step will be visually represented with clear instructions to ensure that importers follow the correct sequence of actions for seamless importing. FOR INFORMATION 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 4-In-1 Support Services: How to get more support 1. Customs & Global Trade Updates (Fee Subscription): www.customsmanager.info 2. Customs & Global Trade Consultancy & Advice (Free First Call): https://www.customsmanager.org/consultancy 3. Customs & Global Trade Training & Education: https://www.customsmanager.org/education-training 4. Compliant & efficient UK Customs Clearance: https://www.customsmanager.org/customs-agent Connect with us on socials LinkedIn: https://www.linkedin.com/company/customs-manager-ltd/ X: @customsmanager YouTube: https://www.youtube.com/c/CustomsManagerLtd Get in Touch · Website: www.customsmanager.org · E-Mail: info@customsmanager.org About Customs Manager’s Customs & Global Trade Intelligence Services The Premium Professional Legislative Monitoring Service (PLM) is a research and curation service which checks for legislative updates from official government websites based on the selected jurisdictions and topics. Paid Plan subscribers can access regular law change notifications to ensure they never miss a significant legal change on www.customsmanager.info – a website dedicated to customs & trade intelligence. At the same time, they save valuable time by engaging our dedicated trade specialists to carry the monitoring out for them. Premium subscribers also unlock all content on the Customs Manager’s Ltd. website, including our Customs & Trade Blog on www.customsmanager.info , providing vital thought leadership development services to empower them to trade effectively, efficiently and, of course, compliantly, across borders. Premium Subscribers can add jurisdictions and topics for an additional charge. About Customs Manager Ltd. We aim to empower people with import, export and transport responsibilities with helpful advice, insightful training and relevant trade intelligence services. We devote all our passion and energy to helping businesses grow faster cross-border. Working with us means having your own multilingual Customs Manager on standby to help you trade effectively, efficiently and, of course, compliantly wherever you want to go. Includes Brexit support and the ability to lodge customs declarations + Rules of Origin Stay in Touch · Website: www.customsmanager.org · E-Mail: info@customsmanager.org · YouTube: https://www.youtube.com/c/CustomsManagerLtd · Twitter: @customsmanager · Linked In: https://www.linkedin.com/company/69768402/admin/

  • UK: 2023 Duty Suspension Outcomes for 2024 have come into force

    Navigating Duty Suspensions: A Guide for Customs Professionals: Can you benefit? As a custom professional, are you looking to save on customs duties for your specific products? Dive into this insightful blog entry where we unravel the intricacies of duty suspensions in 2023 and how your business can benefit from them. Learn about the sectors that stand to gain, the application process, and how expert assistance can streamline your efforts. Executive Summary In 2023, duty suspensions offer a lucrative opportunity for businesses to save on customs duties. This blog entry provides a comprehensive guide for customs professionals, outlining the products eligible for duty suspensions, the sectors poised to benefit, and the application process. With expert assistance, businesses can navigate this landscape effectively, maximizing savings and optimizing operations. Table of Content 1. Executive Summary 2. Introduction 3. Background 4. What Products Benefit from 2023 Duty Suspensions? 5. When Do These Come Into Force? 6. Which Business Sectors Benefit? 7. How Can My Business Apply for Duty Suspension in the Future? 8. What Is the Process of Duty Suspensions? 9. Who Can Help Me Submit a Successful Duty Suspension Application to the Government? 10. Conclusions 11. Recommendations Introduction Customs duties represent a significant cost for businesses engaged in international trade. However, duty suspensions present a promising avenue for savings. In this blog entry, we delve into the intricacies of duty suspensions in 2023, offering actionable insights for customs professionals seeking to capitalize on this opportunity. Background Duty suspensions are temporary exemptions from customs duties, often granted to stimulate economic activity or support specific industries. These exemptions can significantly reduce the financial burden on businesses, leading to increased competitiveness and profitability. What Products Benefit from 2023 Duty Suspensions? Duty suspensions in 2023 cover a diverse array of products, ranging from agricultural goods to industrial materials. Here are some examples of group of products and some examples: Chemical Compounds - Terephthalic acid and its salts. - Tetrachloroethylene (perchloroethylene). - Melamine. - Dichloromethane (methylene chloride). - Phthalic anhydride. - Tetrahydrofuran. - Pyridine. Food Products - Pineapple juice. - Tomato paste. - Mango puree. - Garlic, onions, and related vegetables. - Red currants, blackcurrants, blueberries, cranberry slices, and vegetable oil. - Strawberries. - Food preparations in powder form. - Hydrolysed Vegetable Protein. - Autolysed or inactive yeast extract. Industrial Materials - Precious metal catalyst coated membrane. - Multilayer film. - Laminate film. - Multilayer electrolyte membrane. - Synthetic poly-alpha-olefin. - Weft-inserted warp-knitted synthetic polyester yarn. - Magnesium alloy frame and fork. - Allylpalladium (II) chloride dimer. Textile and Leather Products - Gloves, mittens, or mitts. - Pig grain nappa leather. - Cow and goat hair on hides. - Sheepskins. Automotive Components - Automatic transmissions. - Suspension and engine mounting assemblies. Plastic and Polymer Products - Film of expanded polytetrafluoroethylene. - Multilayer film of poly(ethylene terephthalate) and polyethylene naphthalate. - Laminate film of ethylene tetrafluoroethylene / poly(ethylene terephthalate). - Film of poly(ethylene terephthalate). - Bags made of polypropylene with polyethylene line. Chemical Additives - Preparation containing astaxanthin. - Feed additive containing l-lysine sulphate. Metals and Alloys - Magnesium alloy frame and fork. Miscellaneous Products - Cut flowers and flower buds. - Anhydrous Citric Acid. - Trisodium citrate dihydrate. - Tin bis-(2-ethylhexanoate). - Salicylonitrile. - (3H)-Benzofuran-2-one. This categorization helps to organize the products based on their nature and intended use. These are just a few examples, but the list includes a wide range of products used in various industries, from chemicals and plastics to food and beverages. Download the full list of 2023 Duty Suspensions for Great Britain What HS Chapters can benefit from these suspensions? Based on Harmonized System (HS) 2022: - 11: Products of the milling industry; malt; starches; inulin; wheat gluten. - 12: Oil seeds and oleaginous fruits; miscellaneous grains, seeds, and fruit; industrial or medicinal plants; straw and fodder. - 19: Preparations of cereals, flour, starch, or milk; pastrycooks' products. - 20: Preparations of vegetables, fruit, nuts, or other parts of plants. - 21: Miscellaneous edible preparations. - 23: Residues and waste from the food industries; prepared animal fodder. - 27: Mineral fuels, mineral oils, and products of their distillation; bituminous substances; mineral waxes. - 28: Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes. - 29: Organic chemicals. - 32: Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments, and other colorants; paints and varnishes; putty and other mastics; inks. - 34: Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles, and similar articles, modeling pastes, "dental waxes" and dental preparations with a basis of plaster. - 38: Miscellaneous chemical products. - 39: Plastics and articles thereof. - 40: Rubber and articles thereof. - 41: Raw hides and skins (other than furskins) and leather. - 43: Furskins and artificial fur; manufactures thereof. - 56: Wadding, felt, and nonwovens; special yarns; twine, cordage, ropes, and cables and articles thereof. - 60: Knitted or crocheted fabrics. - 63: Textiles, made up articles; sets; worn clothing and worn textile articles; rags. - 69: Ceramic products. - 71: Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewelry; coin. - 73: Articles of iron or steel. - 76: Aluminum and articles thereof. - 80: Tin and articles thereof. - 81: Other base metals; cermets; articles thereof. - 87: Vehicles, other than railway or tramway rolling stock, and parts and accessories thereof. - 94: Furniture; bedding, mattresses, mattress supports, cushions, and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated nameplates, and the like; prefabricated buildings. Download the full list of 2023 Duty Suspensions for Great Britain When Do These Come Into Force? The suspensions were expectedly put into effect on April 11, 2024. They will remain in place until June 30, 2026, with a review for possible extension before this date. Which Business Sectors Benefit? Here's is how these business sector can benefit from the 2023 suspensions: 1. Chemical Industry: - Businesses importing chemicals like Melamine, Phthalic anhydride, Tetrahydrofuran, and Pyridine can benefit. For example, if a company imports Tetrahydrofuran into the UK, they can enjoy duty-free imports as long as they meet the specific description outlined in the tariff suspension agreement. 2. Food and Beverage Industry: - Companies dealing with food products such as tomato paste, mango puree, and garlic can benefit. For instance, if a food processing company imports mango puree meeting the specified criteria, they can save on import duties, reducing production costs. 3. Manufacturing and Industrial Materials: - Manufacturers importing materials like precious metal catalyst coated membrane, synthetic poly-alpha-olefin, and magnesium alloy frames can benefit. For example, if a bicycle manufacturing company imports magnesium alloy frames for electric bikes meeting the suspension criteria, they can save on import tariffs, making their products more competitive in the market. 4. Textile and Leather Industry: - Businesses importing textile products like gloves, leather hides, and yarn can benefit. If a company imports pig grain nappa leather for shoe production as specified in the suspension agreement, they can avoid paying import duties, reducing their manufacturing costs. 5. Automotive Sector: - Automotive companies importing components such as automatic transmissions and suspension assemblies can benefit. For instance, if an automobile manufacturer imports automatic transmissions equipped with a double clutch system meeting the suspension criteria, they can save on import duties, making their vehicles more cost-effective for consumers. 6. Plastics and Polymers Industry: - Companies importing plastic and polymer products like multilayer films and laminate films can benefit. If a packaging company imports multilayer film of polyethylene terephthalate and polyethylene naphthalate according to the suspension agreement, they can avoid import duties, reducing packaging costs for their products. 7. Chemical Additives and Feed Industry: - Businesses importing chemical additives and feed additives can benefit. For example, if a company imports a feed additive containing l-lysine sulphate meeting the suspension criteria, they can save on import tariffs, making their animal feed products more affordable for farmers. 8. Miscellaneous Products: Businesses importing miscellaneous products like cut flowers, citric acid, and tin bis-(2-ethylhexanoate) can benefit. For instance, if a flower shop imports cut flowers as specified in the suspension agreement, they can avoid paying import duties, reducing the cost of their floral arrangements for customers. But my product is no on the list, how can my business apply for Duty Suspension in the future? Businesses can apply for duty suspensions through the UK Department of Business and International Trade. This involves, usually: Demonstrating the economic or industrial significance of the product, such as its role in manufacturing, job creation, or contribution to the economy. Articulating how the duty suspension would benefit not only the applying business but also the broader industry or economy. Ensuring compliance with all relevant regulations and standards, including those related to product safety, environmental impact, and labor practices. Engaging with stakeholders, such as industry associations, trade groups, and government agencies, to garner support and advocate for the duty suspension. Monitoring the application progress and promptly addressing any queries or concerns raised by the authorities during the review process. Timely and accurate submission of applications is essential for success in the duty suspension process. The experts at Customs Manager Ltd can facilitate this process by ensuring that all required documentation is prepared and submitted correctly. By following these steps and ensuring compliance with regulatory requirements, businesses can increase their chances of securing duty suspensions for their products. What Is the Process of Duty Suspensions? The process of duty suspensions involves thorough evaluation by government agencies to assess the economic impact and eligibility of the products in question. Key steps in the process include: 1. Initial Application: Businesses submit applications for duty suspensions, providing detailed information about the products, their intended use, and the rationale for seeking a suspension. 2. Evaluation: Government agencies review the applications, considering factors such as the potential economic benefits, industry competitiveness, and alignment with trade policies. 3. Decision: Based on the evaluation, authorities decide whether to grant duty suspensions for the requested products. Approved suspensions are typically communicated to stakeholders through official channels. Who Can Help Me Submit a Successful Duty Suspension Application to the Government? Expert assistance from Customs Manager Ltd can streamline the application process, ensuring compliance with regulations and maximizing the chances of approval. Customs professionals with experience in duty suspensions can provide valuable insights and guidance throughout the application process, including: Determining the eligibility of products for duty suspensions based on tariff classifications and trade regulations. Preparing comprehensive application packages, including product descriptions, supporting documents, and justification for seeking duty suspensions. Navigating any complexities or challenges that may arise during the evaluation process, such as requests for additional information or clarification from authorities. By leveraging the expertise of customs professionals, businesses can enhance their chances of submitting successful duty suspension applications and realizing significant cost savings on customs duties. Conclusion In conclusion, duty suspensions in 2023 offer a valuable opportunity for businesses to reduce customs duties and enhance competitiveness in the global market. By understanding the products eligible for duty suspensions, the application process, and the role of expert assistance, customs professionals can effectively navigate this landscape and maximize savings for their businesses. With strategic planning and proactive engagement, businesses can leverage duty suspensions to optimize their customs duty obligations and drive growth in their respective industries. Recommendations We recommend that businesses proactively assess their import activities and identify opportunities to leverage duty suspensions for cost savings. By staying informed about upcoming duty suspensions and seeking expert assistance when needed, businesses can streamline the application process and increase their chances of securing duty suspensions for their products. For personalized guidance and support in navigating duty suspensions, we encourage businesses to contact us. With our expertise and experience, we have helped numerous businesses successfully obtain duty suspensions and unlock significant savings on customs duties. Don't miss out on this opportunity to optimize your import operations and enhance your competitive advantage in the global marketplace. From a compliance and cost-saving perspective, Customs Manager Ltd offers unparalleled expertise in duty suspensions. To explore personalized recommendations and strategic insights, schedule a free expert call on www.customsmanager.org. Enhance your skills with our specialized training programs at www.customsmanager.org/events. Stay updated with essential updates curated by customs experts by subscribing to our newsletter at www.customsmanager.info. For inquiries, contact Arne Mielken at +447914650183 or info@customsmanager.org.

  • UK Customs Declarations: Upcoming Changes

    Upcoming Changes to the UK’s Simplified Customs and Export Declaration Processes To streamline the customs and export declaration processes for businesses, HMRC announces significant updates to the Simplified Customs Declaration Process (SCDP) and Simplified Export Declaration Process (SEDP) coming into effect in May 2024. These changes, inspired by industry feedback, aim to provide businesses with additional time for submissions and enhanced flexibility in declaration aggregations. Executive Summary In May 2024, HMRC will introduce updates to the UK's Simplified Customs and Export Declaration Processes, extending the Duty Deferment Account (DDA) payment deadline to the 16th calendar day and introducing an option for monthly aggregation of supplementary declarations. These changes, driven by feedback from a 2022 industry consultation, aim to provide businesses with more flexibility and time for managing customs declarations. Updated guidance will be available in mid-April 2024, ensuring businesses are well-informed on how to apply these adjustments. This initiative demonstrates HMRC's commitment to enhancing the efficiency and accessibility of customs and export processes for the UK's business community. Table of Content 1. Title 2. Executive Summary 3. Introduction 4. Background 5. Main Points 6. Conclusion 7. Recommendations Introduction The UK’s HM Revenue and Customs (HMRC) is set to introduce pivotal modifications to the Simplified Customs Declaration Process (SCDP) and the Simplified Export Declaration Process (SEDP) in May 2024. This announcement comes as a strategic response to the valuable insights gathered from a comprehensive call for evidence in 2022, focusing on improving operational efficiencies and accommodating the business community’s needs more effectively. Background The initiative to revise the SCDP and SEDP protocols was propelled by a call for evidence conducted in 2022, which solicited feedback from businesses and stakeholders within the border industry. The consensus highlighted a demand for extended timelines for declaration submissions and a greater scope for aggregation flexibility, underpinning the forthcoming changes. Main Points 1. Extended Submission Deadlines: Businesses will benefit from an extension in the Duty Deferment Account (DDA) payment deadlines for all Customs Declaration Service (CDS) users, shifting from the 15th to the 16th calendar day of each month. This adjustment aims to alleviate the time pressures currently faced by businesses in meeting declaration requirements. 2. Flexible Aggregation Options: The introduction of an option for monthly aggregation of supplementary declarations represents a significant shift towards offering businesses more leeway in managing their declaration obligations. This move is expected to streamline operations and enhance logistical efficiencies across the board. 3. Updated Guidance: To facilitate these changes, GOV.UK will refresh its guidance in mid-April 2024, including comprehensive details on how businesses can apply for the new monthly aggregation option, ensuring clarity and accessibility of information. Conclusion The modifications to the SCDP and SEDP underscore HMRC’s commitment to fostering a more business-friendly customs and export environment. By extending declaration deadlines and introducing more flexible aggregation options, HMRC is addressing key areas of concern for businesses engaged in international trade, marking a significant step towards simplifying the customs and export processes. Recommendation Review the Upcoming Changes: Businesses should start by thoroughly reviewing the details of the changes to the Simplified Customs Declaration Process (SCDP) and Simplified Export Declaration Process (SEDP) announced by HMRC for May 2024. Understanding these updates is crucial for assessing their impact on your business operations and planning accordingly. Consult Updated Guidance: In mid-April 2024, HMRC will update its guidance on GOV.UK to include new details on the application process for monthly aggregation among other changes. It's important for businesses to consult this updated guidance as soon as it's available. Contact Experts for Support: Navigating changes in customs and export processes can be challenging. Therefore, seeking advice from experts, such as the team at Customs Manager Ltd, can provide you with the support and clarity needed to adapt to these changes smoothly. Participate in Training: To further support your understanding and implementation of the updated customs and export processes, participating in training sessions can be highly beneficial. Schedule a Free Call: For businesses looking for more direct support or who have specific questions, scheduling a free consultation call with Customs Manager Ltd via their website www.customsmanager.org is a recommended step. By following these recommendations, businesses can ensure they are well-prepared for the changes to the SCDP and SEDP, facilitating a smooth transition and maintaining compliance with UK customs regulations..

  • EU: Companies trading globally must respect human rights & environment (Due Dilligence)

    In 2022, the European Union adopted a proposal called the Directive on Corporate Sustainability Due Diligence. This proposal aims to promote sustainable and responsible corporate behavior across the global value chains. Protecting humans and the environment Companies play a crucial role in constructing a sustainable economy and society. As per this directive, companies will have to identify and prevent, end, or mitigate any adverse impacts their activities may have on human rights, such as child labor and worker exploitation, and on the environment, including pollution and loss of biodiversity. What is the new regulation all about? The new EU regulations will provide businesses with legal certainty and a fair playing field, and for consumers and investors, they will increase transparency. The EU's new rules will promote the green transition and protect human rights both in Europe and globally. National Member States are already ahead Several Member States have already implemented national regulations regarding due diligence, and some companies have taken steps on their own accord. However, voluntary actions alone may not be enough to bring about significant improvements. This proposal suggests that a corporate sustainability due diligence obligation be established to tackle negative environmental and human rights consequences.ts consequences. Who should be concerned? The proposal outlines the criteria for the companies that will be affected by the new rules. There are two groups of companies that the proposal targets. The first group consists of all EU limited liability companies that have substantial size and economic power, with 500 or more employees and a net turnover of at least EUR 150 million worldwide. The second group includes other limited liability companies that operate in high-impact sectors but do not meet both Group 1 thresholds. These companies should have over 250 employees and a net turnover of EUR 40 million worldwide or more. For Group 2 companies, the rules will apply two years later than for Group 1 companies. For Non-EU companies that generate a turnover threshold aligned with Group 1 and 2, and operate in the EU, the new rules will apply. Small and medium enterprises (SMEs) are not directly affected by this proposal. Who in the company must act and how? This proposal is applicable to the company itself, as well as its subsidiaries and their value chains, which include direct and indirect established business relationships. To comply with the corporate due diligence duty, companies must: 1. Integrate due diligence into their policies 2. Identify actual or potential adverse human rights and environmental impacts 3. Prevent or mitigate potential impacts 4. Minimize actual impacts or bring them to an end 5. Establish and maintain a complaints procedure 6. Monitor the effectiveness of the due diligence policy and measures 7. Publicly communicate their due diligence activities. It is the responsibility of companies to protect human rights and the environment as specified in international agreements. This means providing workers with safe and hygienic work environments and preventing environmental damage that violates significant environmental treaties. Within this framework, companies must take appropriate measures based on the severity and probability of different impacts, measures available to the company in the specific context, and the importance of setting priorities. What are the Directors' duties? Directors of companies have a crucial role in ensuring that due diligence becomes an integral part of the company's overall functioning. The proposal introduces new duties for directors to establish and oversee the implementation of due diligence, and to integrate it into the corporate strategy. When fulfilling their duty to act in the company's best interest, directors must consider the human rights, climate change, and environmental consequences of their decisions. Directors with variable remuneration will be incentivized to contribute to combating climate change by referring to the corporate plan. What is the role for SME's? The proposal includes support measures for all companies, including SMEs, that may be indirectly affected. These measures include developing dedicated websites, platforms or portals and providing potential financial support to SMEs. The Commission may provide guidance on model contract clauses to support companies. Additionally, the Commission may introduce new measures to complement the support provided by Member States, including helping companies in third countries. The aim of the proposal is to ensure that the Union, comprising both the private and public sectors, upholds its international commitments in terms of protecting human rights and the environment, fostering sustainable development, and complying with international trade rules on the international stage. Who will oversee the rules? National administrative authorities appointed by Member States will supervise these new rules and may impose fines for non-compliance. In addition, victims can take legal action for damages that could have been avoided with appropriate due diligence measures. Group 1 companies must have a plan to ensure their business strategy is compatible with limiting global warming to 1.5°C in line with the Paris Agreement. Next steps The proposal will be presented to the European Parliament and the Council for approval. Once adopted, Member States will have two years to transpose the Directive into national law and communicate the relevant texts to the Commission. For More Information & links https://ec.europa.eu/commission/presscorner/detail/en/IP_22_1145 https://commission.europa.eu/business-economy-euro/doing-business-eu/corporate-sustainability-due-diligence_en How to Get More Support 1. If you have any questions, call our helpline at +44 79 14 650 183 or schedule a call at www.customsmanager.org -> top-right corner. 2. Book Export Control Training for you and your team at www.customsmanager.org/events 3. Download Support Guides, on-demand training and more at www.customsmanager.org/shop About Customs Manager’s Customs & Global Trade Intelligence Services The Premium Professional Legislative Monitoring Service (PLM) is a research and curation service which checks for legislative updates from official government websites based on the selected jurisdictions and topics. Paid Plan subscribers can access regular law change notifications to ensure they never miss a significant legal change on www.customsmanager.info – a website dedicated to customs & trade intelligence. At the same time, they save valuable time by engaging our dedicated trade specialists to carry the monitoring out for them. Premium subscribers also unlock all content on the Customs Manager’s Ltd. website, including our Customs & Trade Blog on www.customsmanager.info , providing vital thought leadership development services to empower them to trade effectively, efficiently and, of course, compliantly, across borders. Premium Subscribers can add jurisdictions and topics for an additional charge. About Customs Manager Ltd. We aim to empower people with import, export and transport responsibilities with helpful advice, insightful training and relevant trade intelligence services. We devote all our passion and energy to helping businesses grow faster cross-border. Working with us means having your own multilingual Customs Manager on standby to help you trade effectively, efficiently and, of course, compliantly wherever you want to go. Includes Brexit support and the ability to lodge customs declarations + Rules of Origin Stay in Touch · Website: www.customsmanager.org · E-Mail: info@customsmanager.org · YouTube: https://www.youtube.com/c/CustomsManagerLtd · Twitter: @customsmanager · Linked In: https://www.linkedin.com/company/69768402/admin/ Important Notice Customs Manager Ltd. owns the copyright in this document, except for external documents and links we refer to or make available. You are not allowed to use this information in any way that infringes its intellectual property rights. You may have to hold a valid licence to use this information. A licence can be obtained by becoming a Paid Plan subscriber to the Customs Managers’ Customs & Trade Intelligence service, also known as Professional Legislative Monitoring (PLM). As a Paid Plan subscriber, you may download and print this information which you may then use, copy or reproduce for your internal non-profit-making purposes. However, you are not permitted to use, copy or reproduce this information to profit or gain. In addition, you must not sell or distribute this information to third parties, not members of your organisation, whether for monetary payment or otherwise. This information is intended to serve as general guidance and not constitute legal advice. The application and impact of laws can vary widely based on the specific facts involved. This information should not be used as a substitute for consultation with professional legal or other competent advisers. Before making any decision or taking action, consult a Customs Manager Ltd. professional. In no circumstances will Customs Manager Ltd be liable for any decision made or action taken in reliance on the information contained within this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

  • UK CBAM: Our Briefing

    The UK plans to introduce a UK Carbon Border Adjustment Mechanism (UK CBAM) by 2027. Here is what we know and what businesses can do. Unlocking Insights: Navigating the UK Carbon Border Adjustment Mechanism (CBAM) for Customs Leaders Executive Summary Embark on a journey of discovery as we delve into the intricacies of the UK Carbon Border Adjustment Mechanism (CBAM). This article serves as your guide to understanding the nuances of CBAM implementation, implications for customs operations, and strategic recommendations for effective compliance. We succinctly summarize the key insights into the UK CBAM, providing clarity on its scope, mechanism of action, transitional measures, sectoral coverage, emission estimation and pricing, and integration with the UK ETS. Dive into our comprehensive analysis to unlock valuable insights and strategic foresight. Table of Content 1. Executive Summary 2. Introduction 3. Background 4. Key Insights on UK CBAM 5. Conclusion and Recommendations 6. Links and Further Information Introduction As the UK Government unveils its plans for the Carbon Border Adjustment Mechanism (CBAM), customs leaders and professionals face a pivotal moment in navigating the complexities of international trade. This article aims to provide a deep dive into the UK CBAM, offering strategic insights and actionable recommendations to ensure seamless compliance and strategic alignment with regulatory requirements. Background The concept of CBAM, aimed at addressing carbon leakage and ensuring a level playing field for domestic and imported goods, has gained prominence on the global stage. With the UK set to implement its own CBAM by 2027, stakeholders must understand the rationale, objectives, and implications of this regulatory framework. Key Insights on UK CBAM (as far as we know and subject to change) Why CBAM in the UK, too? The implementation of the Carbon Border Adjustment Mechanism (CBAM) by the United Kingdom government in 2027 is anticipated to revolutionize carbon pricing. The CBAM aims to ensure that highly traded, carbon-intensive products imported into the UK face a comparable carbon price to domestically produced goods, mitigating the risk of "carbon leakage." Scope of Application Products included in the UK CBAM are those with high carbon intensity. The UK CBAM covers sectors such as iron, steel, aluminium, fertiliser, hydrogen, ceramics, and cement. In addition to sectors covered by the EU CBAM, the UK CBAM extends its purview to include glass and ceramics, excluding electricity. Certain products like scrap aluminium, scrap glass, and scrap iron and steel are excluded from the UK CBAM due to their environmental benefits. Overview of CBAM Operation The CBAM operates by imposing a tax on imported high-emission commodities based on their embodied emissions. Importers are responsible for compliance with CBAM regulations under the jurisdiction of the UK's HMRC / border force and environmental bodies. It is yet to be seen if UK CBAM may not require the acquisition and submission of CBAM certificates like in the EU. Mechanism of Action The UK CBAM calculates embedded emissions using a methodology that considers both direct and indirect emissions. Importers have the option to use default values or actual emissions data for emission calculation. Carbon pricing under the UK CBAM is determined based on the quantity of carbon emitted during the manufacturing process. Transitional Measures: The UK CBAM is scheduled for implementation by 2027. Transitional arrangements for the UK CBAM are yet to be fully disclosed. Transitional measures may impact businesses' compliance strategies and supply chain management. Emission Estimation and Pricing: Emissions under the UK CBAM are estimated using a defined methodology. Carbon pricing under the UK CBAM considers factors such as global standards and overseas carbon pricing disparities. Emission estimation and pricing mechanisms influence businesses' compliance obligations and strategic decision-making. Integration with UK ETS: The UK CBAM is expected to integrate with the UK Emissions Trading Scheme (ETS). Integration with the UK ETS may result in synergies and challenges for businesses. Compliance requirements and strategic planning are impacted by the integration of the UK CBAM with the UK ETS. Preparation for Businesses Businesses can leverage insights from the EU CBAM to initiate preparatory measures for the UK CBAM, including internal control assignments and active engagement with government consultations. Harmonizing data collection procedures between the EU and UK regimes is essential for businesses preparing for the UK CBAM's implementation. Conclusion As the consultation period for the UK CBAM progresses, it presents a distinct opportunity for customs leaders and professionals to influence the trajectory of international trade. Embracing proactive engagement, strategic planning, and collaboration will be essential to ensure smooth compliance and strategic alignment with regulatory mandates. Our team is poised to offer assistance in making a substantial contribution to the consultation process, drawing on our expertise and insights to navigate the intricacies of the UK CBAM. Recommendations Engage Proactively: Stay actively involved in the consultation process for the UK CBAM, providing valuable input and feedback to shape its implementation. Strategize Effectively: Develop comprehensive strategies to ensure compliance with CBAM regulations while aligning with broader business objectives. Foster Collaboration: Foster collaboration among stakeholders within your organization and across the industry to address challenges and maximize opportunities presented by the UK CBAM. Leverage Expertise: Take advantage of expert guidance and insights, such as those offered by our team, to navigate the complexities of the UK CBAM effectively. Stay Informed: Stay abreast of developments and updates related to the UK CBAM and related regulatory frameworks to adapt your strategies accordingly and ensure compliance. Drop you email at www.customsmanager.info to get started. Links and Further Information For additional resources, training programs, and expert consultations on the UK CBAM and its implications for customs operations, please visit our website or contact our team directly. We are delighted to offer our support and expertise to help you navigate the intricacies of the UK CBAM and make a meaningful contribution to the consultation process. If you are concerned by EU CBAM, please get in touch as we can help you.get it right. We can even submit the CBAM report for you.

  • Introduction to the CBAM Resource Hub

    Introducing the CBAM Resource Hub: Your Exclusive Guide to Navigating Carbon Border Adjustment Mechanism (CBAM) Discover the CBAM Resource Hub, a comprehensive platform exclusively available to members of the Customs Manager INFO community. Gain access to essential tools, expert insights, and valuable resources to navigate the complexities of the Carbon Border Adjustment Mechanism (CBAM) seamlessly. Table of Contents 1. Introduction 2. What is the CBAM Resource Hub? 3. Key Features and Benefits 4. How to Access the CBAM Resource Hub 5. Testimonials from Community Members 6. Conclusion Introduction In response to the evolving landscape of international trade and regulatory requirements, Customs Manager INFO is proud to introduce the CBAM Resource Hub. Designed exclusively for members of our community, this platform serves as your go-to destination for navigating the intricacies of the Carbon Border Adjustment Mechanism (CBAM). What is the CBAM Resource Hub? The CBAM Resource Hub is a dedicated online platform offering a wealth of resources, tools, and expert guidance tailored specifically to assist customs professionals and leaders in understanding and complying with CBAM regulations. From informative articles and case studies to practical guides and webinars, the CBAM Resource Hub provides comprehensive support to help you stay ahead in a rapidly changing regulatory landscape. Key Features and Benefits Access to a curated collection of articles, whitepapers, and resources covering various aspects of the CBAM. Exclusive webinars and expert-led sessions offering insights and best practices for CBAM compliance. Practical tools and templates to streamline your CBAM readiness assessment and implementation. Interactive forums and discussion boards for members to share experiences, ask questions, and collaborate with peers. Regular updates and alerts on CBAM developments, ensuring you stay informed of regulatory changes and updates. How to Access the CBAM Resource Hub Membership to the CBAM Resource Hub is exclusive to members of the Customs Manager INFO community. Simply log in to your account on the Customs Manager INFO website to gain instant access to the CBAM Resource Hub. If you're not already a member, sign up today to unlock this valuable resource and join a community of customs professionals dedicated to staying ahead in their field. Testimonials from Community Members - "The CBAM Resource Hub has been instrumental in helping our team navigate the complexities of CBAM compliance. The wealth of resources and expert insights available has truly made a difference in our readiness efforts." - Sarah, Customs Manager - "As a member of the Customs Manager INFO community, I have found the CBAM Resource Hub to be an invaluable resource for staying informed and prepared for upcoming regulatory changes. Highly recommend it to anyone in the customs profession!" - John, Trade Compliance Specialist Conclusion The CBAM Resource Hub is your one-stop destination for all things CBAM-related. Whether you're looking to enhance your understanding of CBAM regulations, streamline your compliance efforts, or connect with peers in the industry, the CBAM Resource Hub has you covered. Join our community today as a member by leaving your email address at www.customsmanger.info and unlock the tools and insights you need to navigate the CBAM with confidence.

  • About Customs Manager Ltd.

    We aim to empower people with import, export and transport responsibilities with helpful advice, insightful training and relevant trade intelligence services. We devote all our passion and energy to helping businesses grow faster cross-border. Working with us means having your own multilingual Customs Manager on standby to help you trade effectively, efficiently and, of course, compliantly wherever you want to go. Includes Brexit support and the ability to lodge customs declarations + Rules of Origin About Customs Manager’s Customs & Global Trade Intelligence Services The Premium Professional Legislative Monitoring Service (PLM) is a research and curation service which checks for legislative updates from official government websites based on the selected jurisdictions and topics. Paid Plan subscribers can access regular law change notifications to ensure they never miss a significant legal change on www.customsmanager.info – a website dedicated to customs & trade intelligence. At the same time, they save valuable time by engaging our dedicated trade specialists to carry the monitoring out for them. Premium subscribers also unlock all content on the Customs Manager’s Ltd. website, including our Customs & Trade Blog on www.customsmanager.info , providing vital thought leadership development services to empower them to trade effectively, efficiently and, of course, compliantly, across borders. Premium Subscribers can add jurisdictions and topics for an additional charge. Stay in Touch · Website: www.customsmanager.org · E-Mail: info@customsmanager.org · YouTube: https://www.youtube.com/c/CustomsManagerLtd · Twitter: @customsmanager · Linked In: https://www.linkedin.com/company/69768402/admin/ Important Notice Customs Manager Ltd. owns the copyright in the documents on www.customsmanager.org except for external documents and links we refer to or make available. You are not allowed to use this information in any way that infringes its intellectual property rights. You may have to hold a valid licence to use this information. A licence can be obtained by becoming a Paid Plan subscriber to the Customs Managers’ Customs & Trade Intelligence service, also known as Professional Legislative Monitoring (PLM). As a Paid Plan subscriber, you may download and print this information which you may then use, copy or reproduce for your internal non-profit-making purposes. However, you are not permitted to use, copy or reproduce this information to profit or gain. In addition, you must not sell or distribute this information to third parties, not members of your organisation, whether for monetary payment or otherwise. This information is intended to serve as general guidance and not constitute legal advice. The application and impact of laws can vary widely based on the specific facts involved. This information should not be used as a substitute for consultation with professional legal or other competent advisers. Before making any decision or taking action, consult a Customs Manager Ltd. professional. In no circumstances will Customs Manager Ltd be liable for any decision made or action taken in reliance on the information contained within this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

  • Export Controls & Sanction Watch - Edition 14-24

    Edition 14 - 2024 - Week 14/15 of your blog-style export controls & sanctions update for EC&S community members. Watch period: 10.04.2024 - 17.04.2024 What is this all about? Feature Article: U.S. Engage with Commerce: Join the RPTAC Meeting on Export Regulations The Regulations and Procedures Technical Advisory Committee (RPTAC) will convene on April 30, 2024, to discuss updates to the Export Administration Regulations (EAR) and policy-driven information. Hosted by the Department of Commerce's Bureau of Industry and Security, the meeting aims to facilitate collaboration between Committee members and U.S. Government representatives in reviewing technical data. The open session will be accessible via teleconference, and interested parties can submit inquiries to participate. Russian Nationals Plead Guilty to US Sanctions Violations Two Russian individuals in Miami-Dade County, Florida, pleaded guilty to conspiracy charges related to breaching the Export Control Reform Act (ECRA) by illegally exporting controlled aviation technology to Russian end users. Oleg Sergeyevhich Patsulya also admitted to conspiracy to commit international money laundering. The unlawful scheme aimed to circumvent US export laws and regulations to transfer aircraft technology from the US to Russia, initiated around May 2022, following escalated US sanctions against Russia due to military actions in Ukraine. Attorney General Merrick Garland emphasized the severity of the case, highlighting national security concerns. FBI Director Christopher Wray emphasized the link between US economic and national security, warning against adversaries misappropriating American technology. Assistant Attorney General Matthew Olsen noted the fraudulent procurement of millions of dollars’ worth of aircraft equipment by the defendants. US Attorney Gary Restaino praised the collaborative efforts in prosecuting the offenders and disrupting the illegal export of sensitive American goods to sanctioned foreign actors. The conspiracy involved Patsulya and Besedin working with others to fulfill orders for aircraft parts from Russian buyers, primarily commercial airline companies, aware that the items required a Department of Commerce license for export. To conceal their activities, the defendants made false representations about their customers' identities and utilized straw-buyer companies overseas. Patsulya agreed to forfeit over $4.5 million associated with the unlawful scheme. Both defendants face a maximum penalty of 20 years in prison, with sentencing scheduled for June 17. EU Adds Humanitarian Exception to Human Rights Sanctions Regime The EU has incorporated a humanitarian provision into its sanctions framework aimed at individuals and entities implicated in human rights abuses. Through Regulation (EU) 2024/1034,  Article 5 of Regulation (EU) 2020/1998 has been revised to exclude sanctions on providing funds or resources for humanitarian aid or support for fundamental human necessities by designated humanitarian organizations. This exception applies not only to 14 UN and UN/EU mixed sanctions frameworks, but also to 10 autonomous sanctions systems within the EU. Actionable Insights Humanitarian organizations involved in delivering aid or supporting basic human needs in sanctioned regions should review the updated regulations to ensure compliance. Entities providing funds or resources for humanitarian purposes should assess whether they fall within the scope of the new exception and adjust their operations accordingly. To effectively navigate potential compliance challenges, stay informed about any further developments or clarifications regarding the implementation of the humanitarian exception. Insights from State/DDTC University Visits: General Findings and Recommendations The Directorate of Defense Trade Controls (DDTC) has released a white paper titled "General Commendations and Recommendations from University Visits by the Directorate of Defense Trade Controls" on April 10, 2024. This paper outlines general compliance commendations and recommendations, including best practices, provided by the Office of Defense Trade Controls Compliance to universities following each visit. For further details, the white paper can be downloaded from the provided link. US Extends Russian Sanctions Amid Ongoing Threat The US has extended sanctions against Russia, citing a national emergency declared on April 15, 2021, due to harmful activities of the Russian Government. The scope of the national emergency was broadened by Executive Order 14066 on March 8, 2022, with further measures implemented through subsequent Executive Orders 14039, 14068, 14071, and 14114. These actions address activities such as undermining democratic processes, cyberattacks, corruption, and human rights violations. The national emergency, initially declared under Executive Order 14024, remains in effect and has been extended for an additional year beyond April 15, 2024, in accordance with the National Emergencies Act. Link US Extends Somali Sanctions The Executive Office of the President has extended the national emergency declared with respect to Somalia, initially declared on April 12, 2010, due to the continued threat posed by the deterioration of the security situation, violence, piracy, armed robbery at sea, and violations of the arms embargo. The extension of the national emergency is deemed necessary to address the ongoing unusual and extraordinary threat to the national security and foreign policy of the United States, as declared in Executive Order 13536, for an additional year beyond April 12, 2024. Link EU Removes Arvan Cloud and Revises 17 Entries on Iran Sanctions List The EU has de-listed Arvan Cloud from its Iran sanctions list.  Arvan Cloud is an Iranian IT company that was listed in November 2022 for allegedly being involved in censorship by setting up an Iranian version of the internet. The statements of reasons for 17 individuals on the Iran sanctions list have been amended. Council Implementing Regulation (EU) 2024/1033, Council Decision (CFSP) 2024/1019. EU Extends Sanctions Against Russia Extended The Council has extended sanctions targeting those undermining Ukraine's territorial integrity until September 15, 2024. Over 2100 individuals/entities are affected, primarily due to Russia's ongoing military aggression against Ukraine. Additionally, three listings were not renewed, and nine deceased persons were removed from the list. Sanctions extended against those threatening Ukraine's territorial integrity until September 15, 2024. Over 2100 individuals/entities were modified, mainly due to Russia's military aggression against Ukraine. Three listings were not renewed, and nine deceased persons were removed from the list. EU continues to condemn Russia's aggression and reaffirms support for Ukraine's sovereignty. Calls for further weakening of Russia's ability to wage war, including through stronger sanctions and prevention of circumvention. Details EU Extends Sanctions Against Bosnia & Herzegovina Extended Furthermore, the EU extended its sanctions regime concerning Bosnia & Herzegovina for two years, valid until March 31, 2026. Under this framework, the EU retains the authority to impose sanctions on individuals or entities that undermine the sovereignty, territorial integrity, constitutional order, and international standing of Bosnia and Herzegovina or those that pose a threat to the Dayton Accords. Find out more EU Court Invalidates Previous Designations of Fridman and Aven The General Court of the EU has annulled the February and September 2022 acts designating Mikhail Fridman and Petr Aven, holding that the reasons for their designations at that time failed to satisfy the listing criteria in Article 3(1) of Regulation 269/2014 (Case T-304/22 and Case T-301/22 and press release).  They remain designated on the basis of a more recent listing. Key points: Court Rules Designations in February and September 2022 Unlawful Reasons Provided for Designations Fail to Meet Regulation Criteria Fridman and Aven Initially Designated for Ties to Alfa Group and Proximity to President Putin Council Relied on Criteria (a) and (d) of Regulation 269/2014 Evidence Deemed Insufficient to Satisfy Criteria (a) and (d) Designations Between February 2022 and March 2023 Deemed Invalid Council Revised Listings in March 2023 Under Criterion (g) Fridman and Aven Challenge Revised Listings Seeking Annulment OFSI is hosting a Q&A on the oil price cap OFSI is hosting a Q&A on the oil price cap on Wednesday 24 April at 10.30am.  Attendees will have the opportunity to raise questions about the updated guidance (on which, please see our previous post). If you are interested in attending the session, please contact oilpricecap.OFSI@hmtreasury.gov.uk for additional details. Upcoming Export Control and Sanctions Training Learn the essentials of sanctions, dual-use products and export limits to avoid expensive fines. Our training will be advantageous to any US and non-US firm engaging in international trade, especially concerning items of US origin. Our training helps prevent expensive export control and sanctions fines. It imparts essential knowledge that personnel responsible for export controls and sanctions compliance must grasp. Sanctions This course develops professionals' competencies to deal with all key compliance aspects of sanctions laws and policies. Using examples from the EU, the UK and the U.S., we will explore how to check entities, individuals, and organisations against sanctions lists, set up an effective restricted party screening programme, and identify economic trade sanctions and how your products may be affected by it. We will determine due diligence requirements and how you can locate attempts for circumvention. We will discuss applying for a sanction’s exemption licence, a licence exception / general licence. Includes a discussion around red flags and how to set up a sanctions policy and programme. Special feature: Participants will workshop through real sanctions’ case studies and explain the action they would take to ensure compliance. Dates (Click To Book) 18 Mar 2024, 09.00 – 13.00 GMT, Virtual Training Course 18 Jul 2024, 09.00 – 13.00 GMT, Virtual Training Course 18 Nov 2024, 09.00 – 13.00 GMT Virtual Training Course No Date Suitable? Buy This Course On Demand Here Export Controls This course develops the competencies that professionals need to deal with the four fundamental aspects of export controls: Product, Destination, End-User and End-Use Controls. Using examples from the EU, the UK and the U.S., we will explore how to determine if an item is subject to export controls and detail the steps to acquire an export control licence and/to apply for a licence exception / general licence. Includes a discussion around red flags and Internal Export Compliance Programmes (ICP/ECP). Special feature: A hands-on workshop where you get to determine the export control rating of your product by yourself (supported by your expert instructor). Dates (Click To Book) 18 Mar 2024, 13:00 - 17:00 GMT Virtual Training Event 18 Jul 2024, 13:00 - 17:00 GMT Virtual Training Event 18 Nov 2024, 13:00 - 17:00 GMT Virtual Training Event No Date Suitable? Buy This Course On Demand Here U.S. Export Controls This course focuses on U.S. Export Controls, the EAR and ITAR.  Discover how an item can be subject to the EAR or ITAR, how to verify items against the CCL or the USML, how to determine licence requirements and licence exceptions, how to make a licence application, check Export Controls specific restrictive lists and more. We cover The enforcement authority of the Bureau of Industry and Security (BIS) extends overseas. Key US law on export restrictions and importance for non-US firms. Concepts and definitions related to dual-use products. the many categories of EAR bans for non-US companies. The many export classifications and categories, including dual use. The Commerce Control List: An Introduction (CCL). the primary dangers associated with doing business with US companies. Fines and penalties. Vigilance and warning signs. How to create an export compliance programme (ECP) that works? How BIS licences are applied for. ​ Special feature: A close look at the extraterritorial application of U.S. Export Controls De Minimis, Foreign Direct Product Rule, Second Incorporation Principle and more Dates (Click To Book) 17 Apr 2024, 13:00 - 17:00 GMT Virtual Training Event 17 Jul 2024, 13:00 - 17:00 GMT Virtual Training Event 17 Dec 2024, 13:00 - 17:00 GMT Virtual Training Event No Date Suitable? Buy This Course On Demand Here What if I have a question regarding these updates We invite you to use the chat function available on www.customsmanager.org to ask any questions related to this update. Our skilled team of export control and sanctions managers will be happy to provide you with the information you need within 24 hours. Sources EU Official Journal of the EU DG TRADE Website Social Media (LinkedIn, Twitter, etc). Information on the National Export Control & Sanctions Website of Member States Social Media Postings U.S. Bureau of Industry and Security (BIS) Department of Commerce Office of Foreign Asset Control (OFAC) Social Media (LinkedIn, Twitter, etc). UK Information on gov.uk Information on legislation.gov.uk Department of Business and Trade Social Media (LinkedIn, Twitter, etc). Other United Nations (Sanctions) Social Media (LinkedIn, Twitter, etc). About Customs Manager’s Customs & Global Trade Intelligence Services The Premium Professional Legislative Monitoring Service (PLM) is a research and curation service which checks for legislative updates from official government websites based on the selected jurisdictions and topics. Paid Plan subscribers can access regular law change notifications to ensure they never miss a significant legal change on www.customsmanager.info – a website dedicated to customs & trade intelligence. At the same time, they save valuable time by engaging our dedicated trade specialists to carry the monitoring out for them. Premium subscribers also unlock all content on the Customs Manager’s Ltd. website, including our Customs & Trade Blog on www.customsmanager.info , providing vital thought leadership development services to empower them to trade effectively, efficiently and, of course, compliantly, across borders. Premium Subscribers can add jurisdictions and topics for an additional charge. About Customs Manager Ltd. We aim to empower people with import, export and transport responsibilities with helpful advice, insightful training and relevant trade intelligence services. We devote all our passion and energy to helping businesses grow faster cross-border. Working with us means having your own multilingual Customs Manager on standby to help you trade effectively, efficiently and, of course, compliantly wherever you want to go. Includes Brexit support and the ability to lodge customs declarations + Rules of Origin Stay in Touch · Website: www.customsmanager.org · E-Mail: info@customsmanager.org · YouTube: https://www.youtube.com/c/CustomsManagerLtd · Twitter: @customsmanager · Linked In: https://www.linkedin.com/company/69768402/admin/ Important Notice Customs Manager Ltd. owns the copyright in this document, except for external documents and links we refer to or make available. You are not allowed to use this information in any way that infringes its intellectual property rights. You may have to hold a valid licence to use this information. A licence can be obtained by becoming a Paid Plan subscriber to the Customs Managers’ Customs & Trade Intelligence service, also known as Professional Legislative Monitoring (PLM). As a Paid Plan subscriber, you may download and print this information which you may then use, copy or reproduce for your internal non-profit-making purposes. However, you are not permitted to use, copy or reproduce this information to profit or gain. In addition, you must not sell or distribute this information to third parties, not members of your organisation, whether for monetary payment or otherwise. This information is intended to serve as general guidance and not constitute legal advice. The application and impact of laws can vary widely based on the specific facts involved. This information should not be used as a substitute for consultation with professional legal or other competent advisers. Before making any decision or taking action, consult a Customs Manager Ltd. professional. In no circumstances will Customs Manager Ltd be liable for any decision made or action taken in reliance on the information contained within this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

  • Due Diligence for Trade Compliance: Best Practices

    Embark on a journey through the complex realm of trade compliance, delving into essential strategies for conducting due diligence in international transactions. Explore how Customs Manager Ltd. plays a pivotal role in guiding companies towards developing effective and cost-efficient due diligence approaches, ensuring they stay ahead in the global marketplace. Dive in now to ensure you're not just complying but excelling in third-party transactions. Table of Content Table of Content Executive Summary Introduction Understanding the Importance of Due Diligence Basic Due Diligence-What's involved? Where would I find all of this information? Start At Home When Basic Is Not Enough: Enhancing Due Diligence Strategies Enhanced Strategy for Due Diligence: Harnessing Open-Source Intelligence Overcoming Bias and Blind Spots Leveraging Third-Party Due Diligence Services Conclusion Recommendations Executive Summary In today's global business landscape, trade compliance is paramount for companies engaging in international transactions. One critical aspect of trade compliance is conducting due diligence on third-party partners to mitigate risks associated with financial, legal, and reputational harm. This blog explores various best practices for ensuring effective due diligence, including leveraging internal data, enhancing due diligence strategies, harnessing open-source intelligence, overcoming bias and blind spots, and leveraging third-party due diligence services. Additionally, it highlights how Customs Manager Ltd. has been instrumental in assisting companies in navigating complex trade compliance challenges. Introduction The global business environment presents numerous challenges for corporations striving to comply with a myriad of regulations while mitigating risks to their finances and reputation. Conducting thorough due diligence on third-party partners is crucial in this context, as it helps companies identify and minimize risks associated with engaging with external stakeholders. At Customs Manager Ltd., we understand the importance of effective due diligence in trade compliance and offer tailored solutions to assist companies in this endeavour. Understanding the Importance of Due Diligence Due diligence in international trade refers to the careful examination and assessment of various aspects involved in conducting cross-border transactions. This comprehensive process includes evaluating the financial, legal, logistical, regulatory, and cultural factors relevant to the trade deal or partnership. It aims to ensure transparency, compliance with laws and regulations of both exporting and importing countries, and mitigate risks associated with international trade, such as currency fluctuations, political instability, and cultural differences. Effective due diligence in international trade helps businesses make informed decisions, build trust with partners, and navigate the complexities of global commerce successfully. Basic Due Diligence-What's involved? Basic checks in due diligence typically involve fundamental assessments to gather essential information about a business, individual, or transaction. These checks serve as initial steps to identify any potential red flags or areas requiring further investigation. Some common basic checks in due diligence include: Background Checks: Verifying the identity and history of the parties involved, including their reputation, track record, and any adverse media coverage. Financial Checks: Reviewing financial statements, credit reports, and other financial data to assess the financial health and stability of the parties. Legal Checks: Examining legal documents, contracts, licenses, and regulatory filings to ensure compliance with applicable laws and regulations. Reference Checks: Contacting references or previous clients to gather insights into the reputation and performance of the parties. Ownership Checks: Confirming ownership structures, shareholders, and beneficial owners of the business or assets involved in the transaction. Due Diligence Questionnaires: Sending out standardized questionnaires to gather specific information from the parties involved, such as business operations, legal matters, and compliance practices. Site Visits: Conducting physical visits to business premises or project sites to verify their existence, operations, and compliance with applicable standards. These basic checks provide a foundation for due diligence efforts and help identify potential risks and areas requiring further investigation. Depending on the complexity and significance of the transaction, additional in-depth assessments and specialized checks may be necessary to ensure thorough due diligence. Where would I find all of this information? Start At Home Before delving into external sources for information, companies should first utilize their internal data to identify potential risks and compliance issues. This step is crucial as it allows businesses to tap into their existing resources to gain insights and assess their operations. For example, a business could start by analysing customer and supplier data for potential red flags. Define Red Flags By examining customer and supplier records, companies can identify patterns or behaviours that may indicate elevated risks or compliance issues. As such, a red flag to watch out for is unusual or unexpected orders that deviate from the customer's typical purchasing behaviour: If a customer suddenly places a large order for goods that are outside their usual product range or are unrelated to their stated business activities, it may indicate a potential diversion of the products to unauthorized end-users or destinations. Additionally, discrepancies in the shipping and billing addresses, especially if they involve high-risk or embargoed destinations, can also raise red flags. For example, if a customer requests shipments to multiple addresses or to locations known for their involvement in illicit activities or terrorism, it warrants further investigation to ensure compliance with export control regulations. Furthermore, inconsistencies in the customer's financial information or payment methods, such as unusually large cash transactions or payments from third parties with no apparent connection to the customer, may indicate attempts to circumvent export controls or conceal illicit activities By scrutinizing customer and supplier data, companies can proactively identify and address potential risks before they escalate into larger problems.By leveraging internal data in this manner, companies can proactively address compliance issues and strengthen their overall risk management practices. When Basic Is Not Enough: Enhancing Due Diligence Strategies Enhancing due diligence strategies in international commerce, however, may sometimes be required. It ensures a more comprehensive understanding of potential risks and opportunities. But this can be expensive. Such a strategy entails implementing various proactive measures to thoroughly assess all aspects of a business transaction or partnership. It can, in particular, involve: More Thorough Background Checks: This involves conducting in-depth research into the background, reputation, and track record of the parties involved in the transaction. It may include verifying the company's registration, ownership structure, previous business dealings, litigation history, and any adverse media coverage. By understanding the background of the parties, companies can identify any red flags or concerns that may impact the transaction's success or integrity. Compliance Verification: Ensuring compliance with relevant laws, regulations, and industry standards is paramount in international commerce. This involves verifying that the proposed transaction complies with export controls, sanctions regimes, anti-money laundering (AML) laws, and other regulatory requirements. Companies may need to conduct due diligence on the parties' compliance history, internal controls, and adherence to ethical business practices. By verifying compliance, companies can mitigate legal and reputational risks associated with non-compliance and ensure the integrity of the transaction. Where dealing with Sanctions or specific transactions, enhancing due diligence strategies in international commerce may be necessary, This can involve a multifaceted approach that includes thorough background checks and compliance verification. By implementing these strategies, companies wishing to perform a more risky transaction, can gain a comprehensive understanding of potential risks and opportunities, mitigate risks effectively, and ensure the success and integrity of their business transactions. Enhanced Strategy for Due Diligence: Harnessing Open-Source Intelligence Open-source intelligence (OSINT) significantly enhances due diligence efforts by leveraging publicly available data to gather insights that might not be readily apparent through traditional due diligence methods. The use of OSINT for due diligence, especially in verifying the ownership structures and legitimacy of business partners, serves as a powerful tool in identifying and mitigating risks. Here's how it can help: 1. Verification of Physical Existence: Using tools like Google Street View allows companies to visually confirm the physical presence of a business partner’s office or operation site. This is particularly useful in cases where businesses claim to operate from a certain location but may not actually have a physical presence, which could be a red flag for fraudulent activity. 2. Ownership Structure Insights: OSINT can uncover details about the ownership and affiliations of businesses that are not always transparent in official documents. Through publicly available databases, social media, and news outlets, companies can gather information on the ultimate beneficial owners, potential conflicts of interest, or affiliations with entities that might raise compliance or reputational concerns. 3. Legitimacy and Reputation Checks: By examining online news articles, industry reports, forums, and social media, companies can assess the reputation of their business partners. Negative news coverage, legal disputes, or regulatory sanctions uncovered through OSINT can signal potential risks associated with engaging with a particular partner. 4. Compliance with Regulations: In many jurisdictions, there are legal requirements to conduct thorough due diligence on business partners, especially in sectors prone to money laundering, terrorism financing, or bribery and corruption. OSINT can help ensure compliance with these regulations by providing a more comprehensive view of potential partners and any red flags that may necessitate further investigation or reporting. 5. Monitoring Changes: The dynamic nature of OSINT allows for ongoing monitoring of business partners. Since new information is constantly being published, companies can set up alerts or conduct regular searches to stay updated on any significant changes or new risks associated with their business partners. In essence, OSINT supplements traditional due diligence processes by adding a layer of verification and insight based on a wide array of publicly accessible information. It enables companies to make informed decisions, mitigate risks, and ensure that they engage with legitimate, reputable partners in their international trade endeavors. Overcoming Bias and Blind Spots Risk cognition is a critical aspect of due diligence, emphasizing the importance of recognizing and addressing biases and blind spots in risk assessments. These biases can lead to either an overestimation or underestimation of potential risks, while blind spots might emerge from over-reliance on familiar sources or methods, potentially overlooking emerging threats. To mitigate these issues, companies are encouraged to diversify their information sources, including leveraging open-source intelligence (OSINT), and to keep up-to-date with the latest in compliance regulations and due diligence practices. Engaging third-party experts and employing advanced technology solutions like analytics and AI can also provide an unbiased perspective and reveal hidden risks. By acknowledging and proactively managing these cognitive limitations, businesses can enhance their compliance efforts, protect against financial and reputational damages, and ensure sustainable success in international trade. This approach underscores the need for continuous vigilance and adaptability in the dynamic landscape of global commerce. Leveraging Third-Party Due Diligence Services Engaging third-party due diligence services, like Customs Manager Ltd., offers companies a significant advantage in dealing with the labyrinth of trade compliance and international business regulations. By outsourcing due diligence tasks to specialized providers, businesses can gain access to a wealth of expert knowledge, industry insights, and global perspectives that might be beyond their internal capabilities. This approach not only enhances the thoroughness and reliability of due diligence processes but also allows companies to focus on their core activities, knowing that their compliance and risk management strategies are being handled by experts. Customs Manager Ltd., with its deep understanding of complex regulatory environments and a commitment to staying abreast of the latest changes in trade laws, can offer bespoke advice and strategies tailored to each company’s specific needs. This level of specialized support helps in identifying potential risks more efficiently, ensuring that companies are not only compliant with current regulations but are also prepared for future changes. The impartial perspective provided by third-party services helps in mitigating biases that might affect internal assessments, leading to a more objective and comprehensive risk analysis. In essence, leveraging the expertise of Customs Manager Ltd. translates into enhanced operational efficiency, reduced risk of non-compliance, and a stronger competitive position in the global market. Conclusion In the intricate arena of international trade, ensuring compliance in third-party transactions demands a multifaceted approach to due diligence. From leveraging internal resources and basic due diligence to employing advanced strategies like open-source intelligence and addressing inherent biases, companies must navigate a complex landscape to mitigate risks effectively. Customs Manager Ltd. emerges as a pivotal ally in this journey, offering specialized due diligence services that harness a wealth of expertise and global insights. This comprehensive exploration underscores the criticality of adopting enhanced due diligence practices, leveraging the latest tools and technologies, and considering the invaluable support of third-party services to safeguard against legal, financial, and reputational risks. By embracing these best practices, businesses adhere to stringent compliance standards and position themselves advantageously in the dynamic realm of international commerce. The question then is not whether companies are doing enough, but rather if they are prepared to evolve and adapt their strategies to meet the ever-expanding demands of global trade compliance. Recommendations Leverage internal data to identify potential compliance issues and detect patterns of unusual conduct. Enhance due diligence strategies by conducting thorough background checks, financial feasibility assessments, and compliance verification. Harness open-source intelligence tools and techniques to verify the credibility of third-party partners and mitigate risks associated with fraudulent activities. Recognize bias and blind spots in risk assessment and adopt proactive measures to enhance compliance efforts. Consider outsourcing due diligence tasks to specialized providers like Customs Manager Ltd. for impartial perspectives and expert assistance. Customs Manager Ltd. has helped many companies develop effective due diligence strategies without breaking the bank. We offer training on due diligence and bespoke advice to support companies in navigating complex trade compliance challenges. Contact us today to learn more about our services and how we can assist you in achieving your trade compliance goals. For more information, visit our website: www.customsmanager.org.

  • Due Diligence for SMEs: Low-Cost Strategies

    Navigating Due Diligence: Cost-Effective Strategies for SMEs. Limited resources shouldn't hinder SMEs from conducting effective due diligence. Discover low-cost strategies to ensure successful partnerships. Table of Content 1. Executive Summary 2. Introduction 3. Background 4. Main Points - Online Research - Government Databases - Industry Associations - References and Recommendations - Credit Reports - Google Alerts - Online Reviews and Ratings - Network Connections - Direct Communication - Training and Education 5. Conclusion and Recommendations Executive Summary SMEs often face challenges in conducting due diligence due to limited resources. However, by employing cost-effective strategies, they can mitigate risks and ensure successful partnerships. This blog explores ten low-cost strategies for SMEs to perform effective due diligence. Introduction For SMEs, conducting due diligence is crucial but can be daunting due to resource constraints. However, with the right strategies, SMEs can navigate this process effectively without breaking the bank. In this blog, we delve into cost-effective due diligence strategies tailored for SMEs. Background Despite the importance of due diligence, SMEs often struggle to allocate resources for comprehensive investigations. This section highlights the significance of due diligence for SMEs and their challenges in implementing it. 10 Low-Cost Strategies for Due Diligence for SME's Online Research: Utilize freely available online resources to gather information about potential business partners. Government Databases: Access online government databases to retrieve essential information about registered businesses. Industry Associations: Seek insights from industry associations or trade organizations related to your business sector. References and Recommendations: Gather references or recommendations from trusted sources within your network. Credit Reports: Obtain credit reports from credit bureaus to assess the financial stability of potential partners. Google Alerts: Stay updated on potential partners by setting up Google Alerts for their name or business. Online Reviews and Ratings: Check online platforms for reviews and ratings about potential partners' experiences. Network Connections: Tap into your professional network for insights and recommendations. Direct Communication: Engage in candid conversations with potential partners to gather valuable insights. Training and Education: Invest in training to enhance your understanding of due diligence practices. Conclusion and Recommendations By implementing these cost-effective strategies, SMEs can conduct due diligence effectively without straining their limited resources. It's essential to prioritize thorough assessments to mitigate risks and ensure successful partnerships. For personalized assistance and further guidance, consider reaching out to experts at Customs Manager Ltd., who have helped numerous SMEs navigate due diligence challenges efficiently. Need to know

  • Mastering Customs - Essential Principles

    Navigating the complexities of customs is crucial for businesses engaged in international trade. Discover actionable insights and expert recommendations to streamline your customs compliance processes. Table of Contents 1. Executive Summary 2. Introduction 3. Background 4. Main Points - Incomplete or Inaccurate Information - Proper Classification of Goods - Valuation of Goods - Rules of Origin - Understanding Incoterms - Impact of Supply Chain Changes - Importance of Internal Controls 5. Conclusion 6. Recommendations Executive Summary In today's global marketplace, mastering customs declarations is essential for businesses to ensure smooth cross-border trade operations. This guide provides actionable insights into common pitfalls and expert recommendations for navigating the complexities of customs compliance. From accurate documentation to understanding rules of origin, businesses can streamline their processes and mitigate risks. Introduction With the rapid pace of globalization and the ever-changing landscape of international trade regulations, businesses face numerous challenges when it comes to customs declarations. In this guide, we delve into the intricacies of customs compliance and offer practical advice for businesses looking to enhance their understanding and efficiency in this critical aspect of global commerce. Background As experts in customs compliance, we understand the complexities and pitfalls that businesses encounter when navigating customs declarations. The global trade environment remains in a state of flux, necessitating vigilance and expertise in customs compliance. Top 10 key points in Mastering Customs Declarations for Customs Professionals 1. Understanding Regulatory Frameworks: Customs professionals must have a comprehensive understanding of the regulatory frameworks governing international trade, including customs laws, tariffs, trade agreements, and rules of origin. 2. Accurate Classification of Goods: Proper classification of goods according to harmonized tariff codes is essential for determining applicable duties, taxes, and regulatory requirements. Customs professionals should be proficient in classifying goods based on their characteristics and composition. 3. Valuation Principles: Knowledge of customs valuation principles is crucial for determining the customs value of imported goods. Customs professionals must understand valuation methods, such as transaction value, and factors influencing the valuation, such as royalties and licensing fees. 4. Rules of Origin Compliance: Compliance with rules of origin is vital for accessing preferential tariff treatment under trade agreements. Customs professionals should be familiar with the rules of origin applicable to specific products and regions and ensure accurate documentation to support claims for preferential treatment. 5. Documentation and Record-Keeping: Proper documentation and record-keeping are essential for customs compliance. Customs professionals should ensure that all required documents, such as commercial invoices, packing lists, and certificates of origin, are accurately prepared and maintained in accordance with regulatory requirements. 6. Customs Clearance Procedures: Understanding customs clearance procedures and documentation requirements is critical for facilitating the smooth flow of goods across borders. Customs professionals should be well-versed in customs clearance processes, including import/export declarations, customs inspections, and clearance documentation. 7. Risk Management and Compliance: Customs professionals play a key role in managing compliance risks associated with international trade. They should implement robust risk management strategies, conduct regular compliance audits, and address any non-compliance issues promptly to mitigate risks and ensure regulatory compliance. 8. Technology and Automation: Leveraging technology and automation tools can streamline customs processes, improve efficiency, and reduce the risk of errors. Customs professionals should stay updated on technological advancements in customs compliance software and tools and adopt relevant solutions to enhance their operations. 9. Continuous Learning and Professional Development: Customs regulations and practices are constantly evolving, requiring customs professionals to engage in continuous learning and professional development. Participating in training programs, attending industry conferences, and staying updated on regulatory changes are essential for staying abreast of developments in the field. 10. Ethical Conduct and Professionalism: Customs professionals should adhere to high ethical standards and professionalism in their interactions with clients, customs authorities, and other stakeholders. Maintaining integrity, honesty, and transparency is essential for building trust and credibility in the profession. Conclusion By mastering these key points, customs professionals can effectively navigate the complexities of customs declarations, ensure compliance with regulatory requirements, and contribute to the smooth functioning of international trade operations. Our Top 10 Recommendations Invest in Education and Training: Equip your team with comprehensive knowledge of customs regulations through training programs and workshops. Understanding the intricacies of customs compliance will empower your staff to navigate the process with confidence and accuracy. Our training offer is here. Utilize Technology: Leverage customs compliance software and tools to automate routine tasks, reduce manual errors, and ensure compliance with regulations. These tools can streamline data entry, validation, and reporting, saving time and resources. Establish Robust Internal Controls: Implement robust internal controls and review processes to ensure accuracy and compliance in customs declarations. Regular audits and quality checks can help identify and rectify any discrepancies or errors promptly. Stay Updated on Regulatory Changes: Keep abreast of changes in customs regulations, tariffs, and trade agreements that may impact your business operations. Subscribe to regulatory updates, participate in industry forums, and engage with customs authorities to stay informed. Join our updates, drop your e-mail address at www.customsmanager.info Engage Expert Assistance: Seek guidance from customs compliance experts to navigate complex regulatory requirements and address specific challenges. Whether it's classification, valuation, or rules of origin, expert advice can provide clarity and confidence in your compliance efforts. Schedule a call to discuss how we can help Centralize Documentation and Records: Establish a centralized system for storing and managing customs documentation and records. This ensures easy access to essential documents for audit purposes and facilitates compliance with record-keeping requirements. Collaborate with Customs Brokers and Agents: Forge strategic partnerships with reputable customs brokers or agents who possess in-depth knowledge of local regulations and procedures. Collaborating with experienced professionals can streamline the customs clearance process and mitigate compliance risks. Regularly Review and Update Procedures: Conduct regular reviews of customs compliance procedures and processes to identify areas for improvement and ensure alignment with regulatory changes. Update internal policies and procedures accordingly to maintain compliance standards. Proactively Address Compliance Issues: Take a proactive approach to address compliance issues and rectify any discrepancies promptly. Promptly respond to inquiries or notices from customs authorities and take corrective actions as necessary to avoid penalties or delays. Monitor and Measure Compliance Performance: Implement Key Performance Indicators (KPIs) to monitor and measure compliance performance regularly. Analyse data trends, identify patterns, and address any recurring issues to continuously improve customs compliance processes. By implementing these actionable insights and expert recommendations, businesses can streamline their customs compliance processes, minimize risks, and ensure smooth cross-border trade operations. Get in touch with us to help you comply with all customs regulations and matters.

  • EU: Due Dilligence for SMEs

    A new study provides top tips on how SME's can manage due diligence legal requirements after studying the German (Lieferkettengesetz). Summary of Study Due diligence regulations, like the EU's CS3D, present challenges for SMEs, particularly regarding cost and resource limitations. SMEs may face shifting compliance burdens and potential exclusion from supply chains, especially in countries with weak governance. However, compliance with due diligence regulations can enhance reputation, competitiveness, and access to talent and markets. German stakeholders highlight both opportunities and challenges presented by the German supply chain act, including expanding customer base and compliance uncertainty. SMEs in developing countries lack awareness and face significant hurdles in complying with due diligence regulations. Tools such as helpdesks and business scouts can assist SMEs in understanding and complying with regulations. Recommendations include establishing multipliers to connect European and developing country companies, providing clear reporting requirements, and ensuring supervisory authorities' adequacy. The German Supply Chain Legislation: A Model for EU Due Diligence Exploration If the EU wishes to deepen its understanding of due diligence, it could draw insights from the German supply chain legislation (Lieferkettengesetz). After scrutinizing existing research on sustainability regulations, the authors conducted interviews with various stakeholders including German enterprises, chambers of trade in developing countries, German overseas chambers of commerce, and German aid groups.interviewed various stakeholders, Identifying Challenges and Assistance Needs for SMEs The objective of the research was to pinpoint the primary challenges faced by small firms in the EU and third countries when striving to adhere to the regulations of the Supply Chain Act. Moreover, the study aimed to discuss the types of assistance that small businesses require or are currently utilizing. Recommendations for EU Support of SMEs in Implementing CS3D This paper presents recommendations on how the EU can support SMEs in implementing the proposed CS3D. Among these recommendations are the establishment of tailored capacity-building regulations for small and medium-sized firms in developing markets, many of which lack familiarity with European due diligence legislation, and the simplification of reporting requirements for SMEs in the EU. Balancing Opportunities and Challenges Due diligence regulations present both opportunities and challenges for SMEs. While the Supply Chain Act provides opportunities for companies to expand their customer base and access public procurement, significant obstacles include uncertainty regarding legal requirements and the passing through of costs from larger buyer companies to smaller suppliers. Measures to Enhance Due Diligence Practices The study suggests measures to enhance due diligence practices, including connecting European companies and developing countries, implementing supplier databases, and employing neighborhood policies and development initiatives. Improving Due Diligence Procedures The first step towards improving due diligence procedures involves providing appropriate information about reporting requirements, adopting a graduated approach to legal requirements, simplifying reporting, and ensuring supervisory authorities are adequately equipped to deliver timely assessments of filed reports. Download the Study Key Conclusions 1. Challenges for SMEs: Due diligence regulations, such as the EU's CS3D, pose significant challenges for SMEs, particularly concerning cost and resource limitations. 2. Compliance Burdens: SMEs may face shifting compliance burdens and potential exclusion from supply chains, especially in countries with weak governance structures. 3. Benefits of Compliance: However, compliance with due diligence regulations can lead to enhanced reputation, competitiveness, and access to talent and markets for SMEs. 4. Opportunities and Challenges: German stakeholders highlight both opportunities and challenges presented by the German supply chain act, including expanding the customer base and compliance uncertainty. 5. Challenges Faced by Developing Country SMEs: SMEs in developing countries lack awareness and face significant hurdles in complying with due diligence regulations. Recommendations for SMEs Implementing Due Diligence 1. Establish Multipliers: The EU should establish multipliers to connect European and developing country companies, facilitating knowledge transfer and assistance programs. 2. Provide Clear Reporting Requirements: Clear and concise reporting requirements should be provided to SMEs, reducing uncertainty and simplifying compliance procedures. 3. Tailored Capacity-building: Implement tailored capacity-building programs for SMEs in developing markets to familiarize them with European due diligence legislation and practices. 4. Utilize Support Tools: Encourage SMEs to utilize support tools such as helpdesks and business scouts to understand and comply with regulations effectively. EU: How to Improve Due Diligence Compliance for SME'S 1. Provide Information: Offer comprehensive information about reporting requirements to SMEs, ensuring they understand their obligations under due diligence regulations. 2. Adopt Graduated Approach: Adopt a graduated approach to legal requirements, distinguishing between mandatory, recommended, and optional practices to ease compliance for SMEs. 3. Simplify Reporting: Simplify reporting procedures for SMEs, minimizing redundancies and ensuring that reporting obligations are clear and straightforward. 4. Ensure Supervisory Adequacy: Ensure supervisory authorities are adequately equipped with resources and expertise to assess filed reports promptly and effectively. Download the Study: Provide a link or information on where to download the full study for further insights and details.

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