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(S) Read our solution of how you classify a radiator for an automotive motor vehicle for customs purposes. Imagine you have to import a radiator for an automotive motor vehicle, and you are asked to provide a tariff classification for this. What would you do? About the Product Radiators are heat exchangers that are used to cool internal combustion engines, mostly in vehicles, but also in piston-engined aircraft, railway locomotives, motorbikes, stationary generating facilities, and other applications. We're talking about an automobile radiator here. Internal combustion engines are frequently cooled by cycling engine coolant through the engine block, where it is heated, then through a radiator, where it loses heat to the environment, and finally back to the engine. Engine coolant is often water-based, although it can also be oil-based. A water pump is commonly used to push the engine coolant to circulate, as is an axial fan to drive air through the radiator. The Solution Ambiguity In terms of GRI 1 and GIR 6 a radiator can be classified under tariff subheadings 8409.91 as part of a motor engine used within a motor vehicle, right? Or is it found in Section XVII, 8708.91 as a part and accessory of the motor vehicle, specifically calling out radiators? Which tariff subheading should be used? GIR 1 This is where the GRI 1 comes in handy, since it states, amongst other things, that “classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes.” Note 1 (g) states that Chapter 84, covering machinery and mechanical appliances, excludes radiators for the articles of Section XVII. These win over chapter 84, if the goods we look at are actually in this Section. Now, Chapter 87 falls under Section XVII. Good. But is our radiator to be classified there in the first place? Notes to Section XVII and Note 2 (e) require that parts and accessories of automotive motor vehicles constituting an integral part of an engine or motor is excluded from Section XVII. https://www.trade-tariff.service.gov.uk/chapters/87#notes So, if the radiator was an integral part of the engine or motor then it is not in Section 87 and, therefore, back in Chapter 84, potentially. Staying with GRI 1, the key is found in the detail of the Chapter and Section Notes, that is, it boils down to how well we read these notes. Consult a Dictionary: What means "integral"? Section XVII has a provision that states the parts and accessories are excluded from, for example, Chapter 87 if these parts and accessories constitute or forms an integral part of an engine or motor. Sometimes when you classify goods in accordance with GRI1 and 6 there is a need to consult a dictionary of your choice. The Merriam-Webster On-Line Dictionary gives, amongst other things, the following definition for the word "integral": (1) essential to the completeness (2) composed of integral parts (3) lacking nothing essential. The question then is whether the radiator should be considered an integral part of the motor vehicle engine? Can it be argued that automotive motor vehicle radiators are not directly mounted onto engines but are usually separate from the engine and connected to an engine through tubes - and as a result, it is not an integral part of the motor vehicle engine? It depends.... In other words, if a radiator is part of an engine without using tubes, then Chapter 84 applies. Put another way, an automotive motor vehicle radiator is separate from the engine and this could be the very reason why the Tariff has a specific provision under Section XVII and Chapter 87 for automotive motor vehicle radiators. Recommendation Tariff classification is undoubtedly difficult, and it is recommended that a tariff library be created to retain a record of the procedure followed in applying the GRIs, including how and why a certain product is categorised under a specific tariff subheading. Finally, if the Customs Authority determines that the choice was erroneous, the trader's tariff library records can be utilised to lessen possible fines and, more crucially, testify that the goal is always to apply and comply with the appropriate Customs regulations.

Tariff classification has many layers when it comes to applying the general interpretative rules (GIR) of these tariffs. Imagine you have to import a radiator for an automotive motor vehicle, and you are asked to provide a tariff classification for this. What would you do? About the Product Radiators are heat exchangers that are used to cool internal combustion engines, mostly in vehicles, but also in piston-engined aircraft, railway locomotives, motorbikes, stationary generating facilities, and other applications. We're talking about an automobile radiator here. Internal combustion engines are frequently cooled by cycling engine coolant through the engine block, where it is heated, then through a radiator, where it loses heat to the environment, and finally back to the engine. Engine coolant is often water-based, although it can also be oil-based. A water pump is commonly used to push the engine coolant to circulate, as is an axial fan to drive air through the radiator. Your Challenge How would you classify this and what methodology would you use? Write your answer in the chat. Every submission will get a response from a customs classification specialist. if you leave your e-mail address. Then, check the answer which we have provided here:

You've probably heard the UK Export Licencing authority is changing its system of export control licences. Now find out what this means for your business. It's all a part of the project known as LITE - the licence application tracking and exchange system, created to make it easier for applicants to apply for an export licence. This post has been put together to give you a guide on what is LITE and what it means to you. When do I need to get an export control licence? Before releasing regulated goods to locations beyond your own country, you must apply for a licence or authorization as an exporter of goods or technology. The export control system safeguards a country and its allies from foreign powers acquiring sensitive, carefully restricted, and dual-use commodities, technology, software, and/or information. What is Export Licencing? Export licences are required to export specific products or services to certain countries. In the UK, the Export Control Act and the Export Control Order 2002 establishes the legal framework for export licensing, which is complemented by secondary legislation and instructions. Who runs the UK's Export Control System? The UK's export control system is the responsibility of the Department for International Trade, but it involves several departments, including HM Revenue & Customs (in respect of licensing issues), Her Majesty's Armed Forces (in respect of national security), the Department for Business, Energy and Industrial Strategy (responsible for policy on the Strategic Export Control Lists), and the Foreign & Commonwealth Office (in relation to bilateral sanctions, human rights, conflicts and humanitarian law). Helping you get your Export Control Licence Applications for licences are evaluated on a case-by-case basis against the Consolidated UK and National Arms Export Licensing Criteria (known as the Consolidated Criteria). We help you to determine if your export has a licence requirement or not. We evaluate your product against the UK: Strategic Control lists of military and dual-use items that require export authorisation and let you know if a licence is required. If so, we help you get one. We work with you on Spire or LITE to make the application and support you in managing the application process from start to finish, including communication with the authorities. Why is the licencing system changing? SPIRE is administered by a third-party service. The new upgraded service, LITE, is being deployed by an in-house team of subject-matter experts in digital, data, and the Export Control Joint Unit. In addition, businesses who wish to export certain items outside the UK apply for an export licence through SPIRE. SPIRE is the export licence database maintained by the Export Control Joint Unit (ECJU). Businesses have to utilise this online system to register for Open General Licences or to apply for export or trade licences. This could be a long process with many steps and was often confusing for businesses. Let's make it LITEr To maintain the efficiency of the export control licencing process, the ECJU is deploying a new digital licencing technology called LITE to replace SPIRE. LITE stands for "Licensing Infrastructure Requirements for Exports". LITE aims to leverage greater automation to speed up the application process and enhance solid licence decision-making. Intuitive user interface with helpful tips LITE's user-friendly interface seeks to save exporters time by expediting licence application processing and better directing them to useful information. 10 services that LITE will offer User-friendly interface Helpline for Public Awareness and Training Online Tools – Goods Checker and OGEL Checker Export Licence Application Service OGEL Registration Service End-User Advisory Service Control List Classification Service Advice Service to help you prepare better applications for complex exports New online tools to help you classify goods and identify if you are eligible for an Open General Export Licence Integration with the new HMRC CDS, to eliminate the need for OGEL returns Decommission SPIRE will be discontinued after the public launch. All past SPIRE application details are converted into LITE, ensuring that all users have a record of earlier applications. Please contact us to discuss how we can support you in migrating from SPIRE to LITE. More to read UK: Top Tips for understanding the Consolidated list of strategic military and dual-use items. Download the UK's Strategic Goods List and analyse the latest changes UK Export Controls: The 8 Strategic Export Licensing Criteria of 2022. The following eight criteria are applied in the UK to decide is an export control licence can be granted or not. Exporters should know them. UK Export Control: Revised Control Criteria & End-Use Catch all and China 2022 changes The UK is amending its export control legislation and criteria for issuing licences. Exporters should be aware of the upcoming changes. UK Export Controls: Export Licencing for dual use and military items - Explainer Video Watch this video introducing export controls in the UK and why it matters. UK: Official Export Control Guide for military goods, software and technology Download the guide to licensing procedure and other restrictions for export of controlled military goods, software and technology. UK: Official Export Control Guide for dual-use items, software and technology etc. Download the guide to licensing procedure and other restrictions for export of controlled dual-use items, software and technology Documents for download

How To Choose Whom You Trade With: A blog detailing how to handle business partners when dealing with sanctions or restricted parties. In the world of international trade, it is important to consider who you are doing business with, where they are from and what they want to do with the product you send to them. This is important when you deal with sanctions or restricted parties. There may be a government regulation against trading with individuals or entities from certain countries, and in some regions, there may even be a restriction on trade for specific products. Sanctions regimes can be imposed by a single government (such as the United States), or by multiple governments acting in concert (such as the European Union). They can also be imposed by international organisations such as the United Nations and World Bank. Sanctions are typically imposed by a government or other international body to prevent certain activities from occurring. Sanctions can include: Arms embargoes Asset freezes Bans on dealing with certain people or companies Bans on investment in particular sectors Bans on exports or imports to particular countries Discover four steps that you can take to prevent sanctions violations by knowing your counterparty. Step 1: Determine if you are covered by sanctions. The first step is to determine whether you are covered by the sanctions. The key question is, do you have any business relationship with any of the sanctioned entities? A first step is to find out if there are sanctions or embargoes against the countries where your business partners are. You are much easier to encounter a banned person or entity in Russia than in Germany, for example. Next, you want to get familiar with sanctions and check your own and destination country's regulations. This will clarify if or not your export is subject to sanctions or not. Some areas you may want to explore are US, EU, UK, UN, Chinese or Russian Sanctions. Step 2: Adopt the motto “Prevent rather than cure” Prevention is critical in terms of sanctions compliance. Regulators all across the world look down on organisations that fail to recognise dangers and take preventative measures to mitigate such risks. Being aware of the obstacles that sanctions compliance provides, being up-to-date on global trends, and predicting future changes are all critical considerations when determining the preventative measures that should be put in place and ensuring that they continue to function effectively. The implementation of rules and processes, customer screening systems, training, due diligence, transaction monitoring, and transaction screening are all key preventative steps that businesses should consider. But know this: There is no one-size-fits-all solution for sanctions compliance, and risk assessments should be at the centre of all compliance programmes. Understanding the sanctions risk posed by your firm and its third parties is the greatest place to start when developing an effective sanctions compliance structure. Step 3: Adopt sanction-proof internal processes and procedures Understanding the underlying reasons for apparent sanctions violations is also incredibly beneficial for developing and implementing a successful sanctions compliance programme, as well as determining the preventative steps that may be suitable. Make sure you don’t fall for these traps - fundamental causes of sanctions violations, which include the following: the absence of a structured penalties compliance programme; compliance tasks are decentralised, and there is no formal escalation mechanism. an audit function that is ineffective or unable; failing to comprehend the scope of punishments; insufficient punishments screening; and inadequate customer and third-party due diligence We help companies achieve export compliance. Contact us for more details. Step 4: Screen your partners Speaking of the last bullet point, a due diligence background check will help you evaluate the risks of doing business with a company or person. A thorough background check may reveal that a potential partner has been the subject of legal action or has ties to people or businesses you would prefer not to work with. We do this by screening against a variety of sanctions and watch lists, including: U.S. government watch lists (OFAC, BIS, DDTC) EU and UK sanctions United Nations sanctions Also, screen against PEPs (politically exposed persons) and individuals who are connected to them. This can be done by a specific software that screens against restricted entities; however, you can also do this manually if you have access to the relevant list. No matter if you use software or a manual search, be sure to include both their name and their address. You will also want to check against any aliases or subsidiaries those entities may use. Takeaway It is important to know who you are doing business with, where they are from, and what they want to do with the product you send to them. This is especially true when dealing with sanctions and restricted parties. While due diligence can be time-consuming, it will help you avoid penalties and fines, as well as improve your company's reputation. Government agencies have restrictions on the sale of certain goods or items to certain countries and/or individuals. Due diligence can help prevent exporting these items illegally. As the world becomes more digitally connected, the need for transparency in business is more important than ever. It's not enough to have an idea of who you are doing business with—you need to know for certain. That is why at Customs Manager Ltd. we provide a full range of due diligence services and offer sanctions support. More Reading KYC: Tips on Know Your Customer Controls when dealing with Sanctions Sanctions on Individuals, Entities and Bodies require businesses to know their customers very well. We provide some top tips that you may wish to consider before engaging in a business venture How to shield your business from trading with sanctioned people (FREE) Sanctions make it hard for businesses to trade in certain countries and certain people. But there are steps companies can take to avoid trading with sanctioned persons. Dedicated Expert Blog on Sanctions for Global Trade Professionals Expert Blog for customs and global trade professionals to stay up to date and to get expert advice tips and tricks. You will learn everything you need to know to conduct your global trade business. Customs and Global Trade professionals worldwide trade experts rely on Customs Manager for all of their global trade solutions.

(FREE) What You Need to Know About The Latest US Sanctions against Russia + Infographic The relationship between the United States and Russia has been tense lately, and there’s no indication that it will be getting better any time soon. Even before the military invasion in Ukraine, over the past few years, Russian military forces have already invaded several countries on its border, including Georgia; it has also actively sought to influence elections in several more countries, including the United States. As such, it’s no surprise that relations between Russia and the United States have been on an ever-downward spiral over the past few years. After the discovery of potential war crimes in cities in Ukraine, the US imposed further sanctions against Russia. What are these new Sanctions about Sberbank, Russia's largest financial institution, and Alfa Bank, Russia's largest private bank, have been sanctioned entirely. This move will result in the freezing of all Sberbank and Alfa Bank assets that have a connection to the US financial system, as well as the prohibition of US citizens from doing business with them. Sberbank controls roughly one-third of the assets in the Russian banking industry and is systemically important to the Russian economy. Alfa Bank is Russia's largest privately held financial institution and the country's fourth-largest overall. Russian elites and their family members face full blocking sanctions, including sanctions on President Putin's adult children, Foreign Minister Lavrov's wife and daughter, and members of Russia's Security Council, including former President and Prime Minister of Russia Dmitry Medvedev and Prime Minister Mikhail Mishustin. These persons have amassed wealth at the cost of the Russian people. Some of them are in charge of giving essential assistance to Putin's attack on Ukraine. This step disconnects them from the US financial system and freezes whatever assets they have in the US. The US Treasury barred Russia from paying its debts with cash subject to US jurisdiction. Sanctions do not yet restrict payments on Russian government debt, as long as Russia utilises money outside of US jurisdiction. Russia, on the other hand, is a worldwide financial pariah, and it will now have to choose between depleting its limited money to make debt payments and defaulting. New investment in the Russian Federation is prohibited, and sanctions on vital Russian state-owned firms have been imposed in their entirety. This may have the biggest impact on businesses. We discuss the impact of both in the next section. How will businesses be affected? U.S. businesses should be aware of new sanctions on Russian entities, including financial institutions and energy companies, that came into effect on April 6th. The new measures were part of a broader law passed by Congress last year that was designed to punish Moscow for its alleged meddling in U.S. elections and other acts meant to destabilize democratic processes worldwide. We break down what you need to know about these latest sanctions and their impact on businesses here at home in one infographic: click here or on the Image below! What impact do these Sanctions have? In regard to these sanctions, Russian officials say they won’t have much effect. Whether that’s true, US citizens, businesses and businesses outside the US which have American ownership or headquarters are going to be affected. These new sanctions prohibit American businesses from doing business with a great deal of major Russian companies, including Rosneft and Gazprom Neft. Already today, more than 600 global corporations withdraw from Russia. With the decision by the US to prohibit investment in Russia by US people anywhere in the world. the exodus of the private sector from Russia will continue. It now includes manufacturers, energy companies, large retailers, financial institutions, as well as other service providers such as law and consulting firms. The Russian Federation's global competitiveness is highly likely to be permanently weakened as a result. Sanctions on vital Russian state-owned firms have been imposed in their entirety. This will prevent any U.S. individual from engaging with these corporations and would freeze any of their assets subject to U.S. jurisdiction, undermining the Kremlin's ability to use the entities on which it relies to enable and fund its war in Ukraine. These organisations have been announced by the Treasury Department. What should businesses trading with Russia do? It is important that all businesses conducting trade with individuals or entities of Russian nationality perform Due Diligence on their counterparties and review any business relationships they may have. It is also recommended that you monitor future sanctions lists by governments around the world to ensure you are compliant with global regulations. This will help minimize risk exposure and ensure your business continues operating in a safe and lawful manner. How we can help Customs Manager Ltd can help you with this. We offer restricted party screening tools to help you manage your exposure to risk, carry out our due diligence investigation and help you set up an export control and sanctions compliant business.

(S) Access the guide on how to import POAO products into the EU. Every day, meat, milk and other products of animal origin are traded or introduced into the EU. In order that all these products can be moved safely avoiding the transmission of diseases to either the public or other animals, the EU has laid down a wide range of animal health requirements. These lay down health certificates that must accompany all animal products when introduced into the EU. These documents must be signed by an official veterinarian of the competent authority of the exporting third country, guaranteeing that the conditions for import into the EU have been met. On arrival in the EU, the animal products and the accompanying certificates must be verified and checked by EU official veterinarians at a designated Border Inspection Post. Further checks on the products may also be carried out at the final destination. Fact Sheet: Import Conditions for fresh meat and meat products Guidance for importing meat and meat products into the EU PowerPoint Presentation

(P) How to complete CHED's + Four systems to manage food and drink imports are regulated by IMSOC. Let's find out how it works and download the law. IMSOC consists of several EU information systems (iRASFF, ADIS, EUROPHYT, TRACES). These allow EU countries to exchange information on official controls of food, animals and plants to prevent food fraud. This initiative aims to further specify and clarify existing procedures on how IMSOC works. It will focus on the following systems: ADIS (animal disease alerts) EUROPHYT (plant health alerts) TRACES (certification). iRASFF (alerts). Implementing Regulation (EU) 2019/1715 describes the rules for the functioning of the information management system for official controls and its system components (the IMSOC Regulation). The rules apply in the UK, too and have been transposed into UK Law The legal basis of the IMSOC Implementing Regulation derives from the general food law (Regulation (EC) No 178/2002), the animal health law (Regulation (EU) 2016/429), the plant health law (Regulation (EU) 2016/2031), and the regulation of the official control (Regulation (EU) 2017/625). IT system The official controls regulation requires the European Commission, in collaboration with EU countries, to set up and manage a computerised information system for official controls (IMSOC)* to manage, handle and automatically exchange data, information and documents in relation to official controls. 4 in 1 The IMSOC is to integrate the 4 existing information systems managed by the Commission, namely: the rapid alert system for food and feed (RASFF) established by General Food law; the animal diseases information system (ADIS)* to be established by the Animal Health Law; the system for notifying and reporting the presence of pests (EUROPHYT)* to be established by the Plant Health Law; and the TRACES* system (referred to in the Official Controls Regulation). The purpose of the IMSOC Regulation to set out in the same act all rules on the functioning of the IMSOC and its 4 components; and to set out rules for the exchange of data, information and documents between IMSOC’s components and in certain cases, with other systems such as EU countries’ national systems, information systems of non-EU countries and international organisations. The regulation lays down the rules for the functioning of the IMSOC and its system components in relation to the computerised handling and exchange of information, data and documents necessary for the performance of official controls. IMSOC components the rapid alert system for food and feed (RASFF); the computerised information system for the notification and reporting of animal diseases (ADIS); the electronic system (EUROPHYT) for notifying outbreaks such as the presence of quarantine pests; the computerised system for data, information and document exchange (TRACES). Scope The regulation’s scope covers official controls to verify compliance with food and feed law, animal health and welfare, plant health and animal-by products rules. It specifically covers: procedures for notifications and additional information for the RASFF set up by Regulation (EC) No 178/2002; procedures for the EU’s computerised system for reporting diseases under Regulation (EU) 2016/429; rules for submitting notifications under Regulation (EU) 2016/2031; rules for computerised data and document handling in the IMSOC necessary under Regulation (EU) 2017/625, concerning: the common health entry document (CHED)* and instructions for its use; cooperation between customs and other authorities; electronic certificates and electronic signatures for official certificates; standard formats for information exchange concerning requests for assistance and recurrent notifications; technical tools and procedures for communication between the designated liaison bodies; the proper functioning of the IMSOC. Each component of the IMSOC has its own network of which the Commission is a part, with each network member being responsible for the data, information and documents it inserts or produces in the relevant component. Database linkage The following links between components aim to complement data, providing relevant and up-to-date information to each network member for the performance of its tasks: iRASFF* and TRACES, allowing data sharing about border rejection notifications and common health entry documents; EUROPHYT and TRACES, allowing data sharing about EUROPHYT outbreak and interception notifications; iRASFF, EUROPHYT and TRACES, allowing data sharing about operators’ past records of compliance with the rules. International standard file formats Data exchanges between the IMSOC and other electronic systems, including the EU national systems, are based on international standards and use XML, CMS or PDF formats. iRASFF EU countries designate a liaison body responsible for exchanging information on food fraud notifications and appoint a single contact point for RASFF and AAC networks (that coordinates with the FF network). RASFF, AAC and FF network contact points exchange notifications, requests and responses in iRASFF. Single contact points submit in iRASFF alert notifications to the Commission contact point within 48 hours of the risk being reported to them or information notifications and news notifications without undue delay. They also submit border rejection notifications, non-compliance notifications and follow-up notifications to their counterparts in the network. Food fraud notifications are exchanged using a dedicated IT tool by Food Fraud contact points, until they are integrated into iRASFF. ADIS Each ADIS network member can designate more than one contact point to submit notifications of outbreaks of disease and reports. Each ADIS network contact point is responsible for keeping the list of notification and reporting regions established by its EU country up to date in ADIS. EUROPHYT network Each EUROPHYT network member designates: a contact point responsible for submitting outbreak notifications to the outbreak network; and a contact point responsible for supervising the submission of interception notifications for consignments of plants, plant products and other objects entering the EU submitting interception notifications for those consignments traded in the EU, using TRACES, within 2 working days of the interception. TRACES Each TRACES network member designates at least one contact point for each functionality that is available in TRACES. Each operator has access to the data, information or documents it handles, produces or transmits in TRACES, and each competent authority has similar access for those data, information or documents handled, produced or transmitted under its area of responsibility whether by its staff or by the operators it manages in TRACES. EU countries’ customs authorities have access to data, information and documents relating to animals and goods entering the EU from non-EU countries and to any official control decisions, through either TRACES or EU countries’ national systems, or the EU Single Window environment for customs when interconnected with TRACES. The regulation lists the requirements for issuing electronic official certificates for consignments of animals and goods entering the EU. The TRACES network contact points need to maintain and keep up to date the lists of the designated border control posts, control points and approved or registered food business or animal by-products establishments. Common Health Entry Document (CHED) The regulation sets out the template of the CHED and instructions for its use and lays down the requirements for the use of an electronic CHED. It has applied since 14 December 2019, except for Section 2 of Chapter 3 on the ADIS network, which applies from 21 April 2021. Article 40 lays out the details Format of the CHED and instructions for its presentation and use The CHED must contain entries for the information set out in Part 1 of Annex II to the Regulation and be used by the operator and the competent authorities in accordance with Article 56(3) of Regulation (EU) 2017/625. The format options are: (a) a CHED-A follows the template in Section A of Part 2 of Annex II to this Regulation, for consignments of animals that are: (i) referred to in point (a) of Article 47(1) of Regulation (EU) 2017/625; or (ii) subject at their entry into the Union to measures provided for in points (e) or (f) of Article 47(1) of Regulation (EU) 2017/625; (b) a CHED-P drawn up in accordance with the template in Section B of Part 2 of Annex II to this Regulation, for consignments of products that are: (i) referred to in point (b) of Article 47(1) of Regulation (EU) 2017/625; or (ii) subject at their entry into the Union to measures provided for in points (d), (e) or (f) of Article 47(1) of Regulation (EU) 2017/625; (c) a CHED-PP drawn up in accordance with the template in Section C of Part 2 of Annex II to this Regulation, for consignments of: (i) plants, plant products and other objects referred to in point (c) of Article 47(1) of Regulation (EU) 2017/625; or (ii) plants, plant products and other objects subject at their entry into the Union to one of the measures or conditions provided for in points (d), (e) or (f) of Article 47(1) of Regulation (EU) 2017/625; or (iii) specific plants, plant products and other objects of a particular origin or provenance for which a minimum level of official controls is necessary to respond to recognised uniform hazards and risks to plant health as provided for in Implementing Regulation (EU) 2019/66; (d) a CHED-D drawn up in accordance with the template in Section D of Part 2 of Annex II to this Regulation, for consignments of feed and food of non-animal origin subject at their entry into the Union to any of the measures or conditions provided for in points (d), (e) or (f) of Article 47(1) of Regulation (EU) 2017/625. 2. The CHED referred to in paragraph 1 shall be: (a) drawn up in at least one of the official languages of the Member State of entry; (b) duly completed in at least one of the official languages of the Member State of entry in accordance with the explanatory notes provided for in Part 1 of Annex II to this Regulation, by: the operator responsible for the consignment, as regards the information on the details of the consignment, as described in Part I of the templates in Sections A to D of Part 2 of that Annex; the competent authority at a border control post or control point, as regards the information on the decision taken on the consignment, as described in Part II of the templates in Sections A to D of Part 2 of that Annex; the competent authority at the border control post of exit or final destination, or by the local competent authority, as regards the information on the follow-up measures taken on the consignment after a decision has been taken, as described in Part III of the templates in Sections A to D of Part 2 of that Annex. DOWNLOAD THE LEGISLATION BACKGROUND For more information, see: Legislation on official controls (European Commission) RASFF — Food and Feed Safety Alerts (European Commission) Integrated Management System for Official Controls — IMSOC (European Commission) European Union Notification System for Plant Health Interceptions — EUROPHYT (European Commission) TRACES (European Commission). IMSOC: the information management system for official controls, set up to handle and automatically exchange data, information and documents related to the agri-food chain. ADIS: the computerised information system for notifying and reporting animal diseases, set up by Article 22 of Regulation (EU) 2016/429. EUROPHYT: the EU notification system for submitting EUROPHYT outbreak notifications, in accordance with Article 103 of Regulation (EU) 2016/2031. TRACES: the computerised system for exchanging data, information and documents concerning official controls and other official activities. CHED: the common health entry document, including its electronic equivalent, used by businesses to prenotify the entry into the EU of consignments of animals and goods covered by the Official Controls Regulation (EU) 2017/625, and by EU countries’ authorities to record the outcome of official controls performed on those consignments. iRASFF: an online application through which EU countries can transmit notifications about products presenting a risk or notifications of non-compliance concerning animals or goods. DOCUMENTS Commission Implementing Regulation (EU) 2019/1715 of 30 September 2019 laying down rules for the functioning of the information management system for official controls and its system components (the IMSOC Regulation) (OJ L 261, 14.10.2019, pp. 37-96) Successive amendments to Commission Implementing Regulation (EU) 2019/1715 have been incorporated into the original text. This consolidated version is of documentary value only. Regulation (EU) 2017/625 of the European Parliament and of the Council of 15 March 2017 on official controls and other official activities performed to ensure the application of food and feed law, rules on animal health and welfare, plant health and plant protection products, amending Regulations (EC) No 999/2001, (EC) No 396/2005, (EC) No 1069/2009, (EC) No 1107/2009, (EU) No 1151/2012, (EU) No 652/2014, (EU) 2016/429 and (EU) 2016/2031 of the European Parliament and of the Council, Council Regulations (EC) No 1/2005 and (EC) No 1099/2009 and Council Directives 98/58/EC, 1999/74/EC, 2007/43/EC, 2008/119/EC and 2008/120/EC, and repealing Regulations (EC) No 854/2004 and (EC) No 882/2004 of the European Parliament and of the Council, Council Directives 89/608/EEC, 89/662/EEC, 90/425/EEC, 91/496/EEC, 96/23/EC, 96/93/EC and 97/78/EC and Council Decision 92/438/EEC (Official Controls Regulation) (OJ L 95, 7.4.2017, pp. 1-142) Regulation (EU) 2016/2031 of the European Parliament of the Council of 26 October 2016 on protective measures against pests of plants, amending Regulations (EU) No 228/2013, (EU) No 652/2014 and (EU) No 1143/2014 of the European Parliament and of the Council and repealing Council Directives 69/464/EEC, 74/647/EEC, 93/85/EEC, 98/57/EC, 2000/29/EC, 2006/91/EC and 2007/33/EC (OJ L 317, 23.11.2016, pp. 4-104) Regulation (EU) 2016/429 of the European Parliament and of the Council of 9 March 2016 on transmissible animal diseases and amending and repealing certain acts in the area of animal health (‘Animal Health Law’) (OJ L 84, 31.3.2016, pp. 1-208) Regulation (EC) No 183/2005 of the European Parliament and of the Council of 12 January 2005 laying down requirements for feed hygiene (OJ L 35, 8.2.2005, pp. 1-22) Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, pp. 1-24)

(S) A Packing List is an essential documentation for import or export clearance. What is involved? If the company does not know what documentation is required, it is important that they at least know where they can find out what their documentary responsibilities and obligations are. What is a packing list? A packing list is a formal document that shows an itemised list of the goods within a shipping package (for identification and tallying purposes). The document will typically state a number of details relating to the shipment, including how they have been physically packed. Who produces this and why? A packing list is produced by the seller primarily for the use of the buyer. Knowing what the goods are and also how they are packing them, helps relevant parties identify how to properly handle them, as it is not uncommon that there is a difference between the people arranging the transportation and the people who physically handle the goods. The information contained within the packing list should correspond with all other documentation relating to the shipment, such as the commercial invoice, a bill of lading or an air waybill. Not only does this help to ensure consistency but it also helps to form part of the audit trail necessary for compliance and of course your own records. A packing list may be required for customs clearance in certain countries, however, if the commercial invoice contains all the specifics usually included within a packing list, then this may suffice. Typical contents of a packing list Whilst this list is not exhaustive, it is indicative of some of the more common information required: The full name, address and contact details of the seller (Referred to as the shipper in trade terms) Where the goods are physically coming from. The full name, address and contact details for the buyer The full name, address and contact details for the delivery point As this may be a different address to the address of the buyer Incoterm Number of packages Type of packaging used such as pallets or boxes The dimensions of each piece The net weight and the gross weight for each piece Quantities of products within each package ‘Marks and Numbers’ The literal markings on the packages. Ordinarily, this would be the delivery address and any relevant job references This can and does often show as ‘Fully Addressed’ A description of the goods, often also showing the relevant commodity codes A reference number to signify the commercial sale with correlates with other shipping documentation, often a ‘sales order number’ or a ‘purchase order number’ An example of what a packing list may look like: Often documents such as packing lists are produced in a standardised format, for ease of reference, however, there generally isn’t a strict format that the document has to appear in. What is more important is that the information included is both accurate and adequate.

(S) Let's zoom in on EU Value Added Tax fundamentals that every business needs to know. Introduction The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union. Thus, goods which are sold for export or services which are sold to customers abroad are normally not subject to VAT. Conversely, imports are taxed to keep the system fair for EU producers so that they can compete on equal terms on the European market with suppliers situated outside the Union. What VAT is Value-added tax is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. However, if the annual turnover of this person is less than a certain limit (the threshold), which differs according to the Member State, the person does not have to charge VAT on their sales. a consumption tax because it is borne ultimately by the final consumer. It is not a charge on businesses. charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain. collected fractionally, via a system of partial payments whereby taxable persons (i.e., VAT-registered businesses) deduct from the VAT they have collected the amount of tax they have paid to other taxable persons on purchases for their business activities. This mechanism ensures that the tax is neutral regardless of how many transactions are involved. paid to the revenue authorities by the seller of the goods, who is the "taxable person", but it is actually paid by the buyer to the seller as part of the price. It is thus an indirect tax. Why do all EU countries use VAT? At the time when the European Community was created, the original six EU countries were using different forms of indirect taxation, most of which were cascade taxes. These were multi-stage taxes which were each levied on the actual value of output at each stage of the productive process, making it impossible to determine the real amount of tax actually included in the final price of a particular product. As a consequence, there was always a risk that EU countries would deliberately or accidentally subsidise their exports by overestimating the taxes refundable on exportation. It was evident that if there was ever going to be an efficient, single market in Europe, a neutral and transparent turnover tax system was required which ensured tax neutrality and allowed the exact amount of tax to be rebated at the point of export. As explained in VAT on imports and exports, VAT allows for the certainty that exports there are completely and transparently tax-free. How is it charged? The VAT due on any sale is a percentage of the sale price but from this the taxable person is entitled to deduct all the tax already paid at the preceding stage. Therefore, double taxation is avoided and tax is paid only on the value added at each stage of production and distribution. In this way, as the final price of the product is equal to the sum of the values added at each preceding stage, the final VAT paid is made up of the sum of the VAT paid at each stage. Registered VAT traders are given a number and have to show the VAT charged to customers on invoices. In this way, the customer, if he is a registered trader, knows how much he can deduct in turn and the consumer knows how much tax he has paid on the final product. In this way the correct VAT is paid in stages and to a degree the system is self-policing. Examples Stage 1 A mine sells iron ore to a smelter. The sale is worth €1000 and, if the VAT rate is 20%, the mine charges its customers €1200. It should pay €200 to the treasury, but as it has bought €240 worth of tools in the same accounting period, including €40 VAT, it is only required to pay €160 (€200 less €40) to the treasury. The treasury also receives the €40 and now gets €160 making €200 - which is the correct amount of VAT due on the sale of the iron ore. Supply: €1000 VAT on supply: €200 VAT on purchases: €40 Net VAT to be paid: €160 Stage 2 The smelter has paid €200 VAT to the mine and, say, another €20 VAT on other purchases, such as furniture, stationery, etc. So when the smelter sells €2000 worth of steel it charges €2400 including €400 VAT. The smelter deducts the €220 already paid on his inputs and pays €180 to the treasury. The treasury receives this €180 from the smelter plus €160 from the mine, plus €40 paid by the supplier of tools to the mine, plus €20 paid by the furniture/stationary supplier to the smelter. Supply: €2000 VAT on supply: €400 VAT on purchases: €220 Net VAT to be paid: €180 €180 (paid by the smelter) + €160 (paid by the mine) + €40 (paid by the supplier to the mine) + €20 (paid by the supplier to the smelter) = €400 or the correct amount of VAT on a sale worth €2000. VAT rates EU law only requires that the standard VAT rate must be at least 15% and the reduced rate at least 5% (only for supplies of goods and services referred to in an exhaustive list). Actual rates applied to vary between EU countries and between certain types of products. In addition, certain EU countries have retained other rates for specific products. The most reliable source of information on current VAT rates for a specified product in a particular EU country is that country's VAT authority. An overview of the different rates applied in all EU countries is available. Why are there different VAT rates in the EU? European acts in the field of taxation have to be adopted by unanimity. The current provisions on VAT rates are thus the result of different compromises agreed by all the EU Ministers of Finance. The VAT Directive sets the framework for the VAT rates in the EU, but it gives national governments freedom to set the number and level of rates they choose, subject only to 2 basic rules: Rule 1: The standard rate for all goods and services Rule 2: An EU country can opt to apply one or two reduced rates but only to goods or services listed in the VAT Directive Standard VAT rate This is the rate that EU countries have to apply to all non-exempt goods and services (Article 96 VAT Directive). It must be no less than 15%, but there is no maximum (Article 97 VAT Directive). Reduced rates of VAT EU countries have also the option to apply one or two reduced rates (Article 98(1) VAT Directive which: may be applied to goods or services listed in Annex III of the VAT Directive but not to electronically supplied services (Article 98(2) VAT Directive) must be no less than 5% (Article 99 VAT Directive) Exceptions to the rules – "special rates" of VAT "Special rates" refers to the multiple exceptions to the basic rules. Largely for historical reasons and under certain conditions, many EU countries (in some instances, most of them) have been allowed to depart from these rules for a transitional period, with the objective to allow for the gradual alignment of national laws with the VAT Directive, pending the definitive adoption of agreed VAT arrangements by all EU countries. This enables them to keep "special rates" - reduced rates under 5% (including zero rates) and reduced rates for goods and services other than those listed in the directive (Articles 102-128 VAT Directive). How do the EU countries apply VAT? EU countries implement common rules set in VAT Directive in their national legislation. The practical application and the administrative practices of each EU country therefore vary. Sources: EU Commission Website

(P) There have been key changes in import VAT since 1 July 2021. Find out about the new law and changes B-2-C businesses need to know. Download a presentation, explanatory notes and IOSS contacts. PRESENTATION FOR DOWNLOAD We have created a presentation for you to understand the key changes in a Presentation for you to download. EU Explanatory Notes EU Member States Contacts that deal with IOSS All you need to know about the one-stop-shop (OSS) Currently EU businesses making distance sales of goods from within the EU above a certain threshold (EUR 35 000 or 100 000, depending on the Member State) to buyers located in another EU Member State need to register and pay VAT in the buyers’ Member State. This is very costly and burdensome. From 1 July 2021 new rules enter into force. According to these new rules, below a threshold of EUR 10 000 VAT can be paid to the Member State where the selling business is located. Above this threshold, businesses will be able to easily register in a One-Stop Shop (OSS) – where they can easily declare and pay the VAT due in other Member States. From the EU Commission Englsih German French Spanish

(S) Do you export low-value parcels to Europe? Arne Mielken of Customs Manager says non-EU sellers can use simplifications to accelerate imports. The growth in online shopping has been turbocharged by the global pandemic, with more and more small parcels being exported between the UK and Europe. Until recently, non-EU businesses could sell goods directly to consumers in the European Union (EU) without paying import VAT if the consignment was valued at €22 or below. This has given the UK and other sellers a competitive edge over EU suppliers of similar goods, although the system has been abused by some sellers who under-declare the value of their goods to avoid import VAT. VAT exemption axed But the exemption on low-value consignments was scrapped on 1st July 2021 and since then, all imports are subject to EU VAT, irrespective of their value. Now, you will have to charge your EU customers VAT at the point of sale, rather than pay import VAT, for consignments of €150 or below. Not surprisingly, many UK businesses fear that having to collect and account for this additional VAT will result in even more red tape. Not only will you have to work out what VAT rate to charge customers in different EU countries, but you may also have to adapt your e-commerce payment systems to charge VAT at the point of sale. In some cases, however, you may be able to offload the VAT collection to postal operators, express carriers and customs agents. Import One-Stop-Shop The good news is that you can opt to use the EU's Import One-Stop-Shop (IOSS), which is designed to simplify the reporting and payment of VAT on consignments valued at €150 or less. This should reduce paperwork for many non-EU traders, who won’t have to register for VAT in different EU countries. Those that use it can submit a quarterly return to just one tax authority in one member state and pay your VAT wherever you have registered your IOSS account. Bear in mind, though, that the different VAT rates of the countries where your customers live will still apply, so you will need to invoice them accordingly. The new VAT regime should also benefit EU consumers, who won’t have any surprise import costs when their goods arrive, because they will have already paid for them. If you are eligible to use the one-stop-shop, remember to include your IOSS identification number on all relevant invoices and packages. This will ensure that the customs authorities know that import VAT has been correctly declared. And if you sell goods via online platforms, check whether you need to make changes to your IT systems to allow for the correct VAT to be charged. More detail We have created a presentation for you to understand how IOSS really works in a Presentation for you to download. Also, access EU guidance, EU Member States OSS contact points and much more. https://www.customsmanager.org/post/ioss-eu-vat-rules

(S) Move to Postponed VAT accounting in France. Download the note from the Directorate General of Public Finances / DGFIP on the postponed VAT accounting on Import VAT (ATVAI). Since January 1, 2022, the declaration and payment of import VAT will be made directly through the VAT declaration instead of the customs declaration. For this purpose, no prior authorization is required. This new declaration method is mandatory for any taxpayer identified for VAT. It will allow businesses to simultaneously collect and deduct import VAT on their VAT return, without a cash advance. Your VAT return will evolve to integrate operations relating to imports. Download the note (In French)