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🔒  China-Iran Barter Networks | EU Export Control Forum Preview | UK Sanctions Consolidation | OFAC Hits Prince Group Edition 34-2025 - Week 42-2025 Period Covered: 10 October 2025 - 16 October 2025 Published: 17 October 2025

🔒 EU Steel Safeguards | CN 2026 | No delay on EUDR? | US-Swiss Tariff | EU-Mercosur Framers’ Safeguard | CDS updates Edition 36 - Week 42/2025 Period Covered: 07 October 2025 – 13 October 2025 Published: 14 October 2025 The past week brought major trade and customs developments across the EU and UK, with important implications for businesses navigating compliance and market access. We have four Special Reports this week:

🔒 U.S.–China 100% Tariffs | Swiss Trade Freeze | WCO Tariff Decisions | CBP Tightens ACE Controls | USTR Pushes WTO Digital Trade Talks Edition 33 - Week 42/2025 Period Covered: 06 October 2025 – 13 October 2025 Published: 13 October 2025

🆓 Significant updates to customs classifications have been released! Explore the newest rulings, download the official document, and learn which products are affected. World Customs Organization unveils major classification updates—essential insights for refining your import/export compliance strategy. The 76th Session of the Harmonized System Committee (HSC) concluded successfully, marking significant progress in promoting the consistent interpretation and application of the Harmonized System (HS). The session, held from 17 to 26 September 2025 with the report reading on 3 October, brought together 74 Members representing 73 countries and the European Union, under the chairmanship of Mr. Tom Beris (United States). In his opening remarks, Mr. Beris welcomed El Salvador and Jamaica, the newest Contracting Parties to the HS Convention, and emphasized the Committee’s vital role in providing clear guidance for uniform HS application. During the two-week session, the Committee achieved the following: Examined 71 agenda items Adopted 40 classification decisions Approved two amendments to the HS 2022 Explanatory Notes Created 21 new Classification Opinions and deleted two existing Opinions The Committee also began work on developing Correlation Tables between HS 2022 and HS 2028, adopting an improved format to enhance clarity and usability. These Tables will support effective implementation of HS 2028 amendments. Additionally, Mr. Taufik Ismail (Indonesia) was elected Chairperson for the 77th and 78th Sessions. The 77th Session is scheduled for March 2026 at the WCO Headquarters in Brussels, Belgium. Disclaimer This blog is for educational and informational purposes only. It does not constitute legal advice. Always consult with customs or legal professionals for specific classification queries. Hashtags #Customs #ImportRegulations #TradeCompliance #ExportCompliance #WCO #ClassificationDecisions #TariffCodes #Export #Import #EUCustoms #UKCustoms #USCustoms #CustomsConsultant #HarmonizedSystem #HSC75 #TradeUpdates #DutySavings #HSClassification #BTI #TariffAdvice #ComplianceTraining #BorderCompliance #RiskManagement

Stay updated with the latest WCO HS classification decisions! Find out how certain products are classified and ensure import/export regulations compliance. The Harmonized System Committee is a global organization responsible for developing and maintaining the Harmonized System, a standardized system used for classifying products for trade purposes. In order to facilitate international trade, the WCO HS committee has made decisions on how to classify certain products. Below is a list that includes the Harmonized System code numbers for these products, along with the reasons for their classification in some cases. This information is crucial for importers and exporters to ensure that their products are properly classified and comply with international trade regulations.

🆓 Learn why getting customs valuation right matters. Avoid fines, delays, and surprises with clear policies, checks, and smart governance. Think customs valuation is boring paperwork? Think again. It’s one of the most critical pieces of the import puzzle—and ignoring it can cost you big. From surprise penalties to stuck shipments, the stakes are real. In plain English:  Customs valuation is how authorities figure out the monetary value of your imported goods so they can calculate duties, taxes, or tariffs. Get it wrong, and your business feels the pain. The Real Cost of Getting It Wrong Picture this: Your company imports high-tech components from a related company overseas. You declare the price—but forget to add royalties, design fees, and tooling costs. Fast-forward a few months, and a customs audit hits. Suddenly, you owe back duties, penalties, interest, and face shipment delays. Ouch. 💡 Pro tip: Every missing cost is a potential red flag for customs. Even small oversights can snowball. 1. Misalignment with Transfer Pricing Transfer pricing and customs valuation both follow “arm’s length” rules, but they’re not twins. Transfer pricing is tax-focused. Customs valuation is trade-focused. Treat them as identical, and you’ll draw attention from both authorities. What can go wrong:  Conflicting numbers trigger audits, penalties, and bruised reputations. Quick Fixes: Keep policies separate but aligned. Document all pricing models, adjustments, and rationale at import time. Benchmark related-party transactions independently. Regularly reconcile tax vs. customs values. 🔍 Did you know? Some companies got fined millions for simply “copy-pasting” transfer pricing into customs declarations. True story. 2. Missing Additions and Assists Customs wants the full picture. Royalties, commissions, tooling, design, and free “assists” matter. Leave them out, and duties are underpaid—risking retroactive bills and shipment holdups. Fix it: Involve finance, procurement, engineering, and product development. Systematically identify all value-relevant costs. Build repeatable, auditable procedures. Keep spotless records to defend your valuation. 📦 Fun fact: Even a free sample you send your supplier counts in the eyes of customs. 3. No Clear Policy Without a written policy, local teams do their own thing. Methods differ, documentation is patchy, and costs get overlooked. Why it matters:  Even compliant companies get penalties if they can’t prove how values were calculated. Fix it: Document valuation methodology, related-party rules, additions, and documentation. Standardize procedures globally. Train teams and give practical guidance. Implement internal controls to catch mistakes early. 📝 Remember: A policy isn’t just a document—it’s a defense shield in case of audits. 4. Weak Entry Controls Errors happen—wrong prices, missing costs, outdated info. Without checks, small mistakes become systemic problems. Consequences:  Retroactive duty bills, interest, penalties, delayed shipments. Fix it: Pre-entry verification: check prices, additions, and docs before submission. Post-entry audits: verify accuracy after import. Escalate discrepancies fast. Make this a repeatable, integrated compliance program. 🚦 Heads-up: Customs can audit entries years later. Early checks save you headaches. 5. Inconsistent Governance and Oversight Customs valuation touches many teams. Without clear roles, errors go unnoticed, and corrective actions lag. Why it matters:  Poor governance hides risks, weakens audit defense, and sparks conflicts between finance, procurement, and customs. Fix it: Assign senior-level ownership of customs valuation. Clearly define responsibilities for all teams. Conduct regular reviews and audits. Track performance and systemic risks to improve continuously. 👥 Teamwork alert:  Everyone from procurement to compliance has a role—nobody can afford to shrug. Putting It All Together Customs valuation isn’t a boring compliance box. It’s a strategic risk area that touches multiple parts of your business. Companies that: Have clear policies Align with transfer pricing without copying it Capture all relevant additions Enforce strong entry controls Maintain consistent governance …are the ones that avoid nasty surprises, defend declared values confidently, and keep cross-border operations running smoothly. Think of customs valuation like a seatbelt. You might not notice it every day, but when trouble hits, it saves your business. Want more insights? Sign up for our weekly policy briefing, the Monday Mandate. Visit www.customsmanager.info  and leave your e-mail to receive it. Free Expert Call Book a free expert call at www.customsmanager.org . Join Our Customs Valuation Training Learn how to manage customs valuation effectively, reduce risk, and ensure compliance with practical, hands-on guidance from experts. Visit www.cusotmsmanager.org/events How We Can Help At Customs Manager Ltd, we help businesses take control of customs valuation. Too often, it’s treated as a compliance afterthought—but errors can be costly. We assess your valuation practices across all markets, identify hidden risks, and create practical policies designed specifically for customs compliance. We clarify how all cost elements and additions should be treated, ensure documentation meets audit standards, and implement governance structures that make valuation consistent, defensible, and efficient. We also guide clients in leveraging opportunities—like programs that optimize the dutiable base—without ever compromising compliance. Our goal is simple: turn customs valuation from a potential liability into a clear, structured process that supports your business and protects your bottom line.

🔒 Navigating Procedure 42: A Guide to Efficient VAT Management for EU Importers

🔒 China’s MOFCOM issues 7 announcements tightening export controls on rare earths, superhard materials, lithium battery inputs, and more. We explain.

🆓 Cocoa expansion in Liberia drives deforestation. EU importers may soon need to follow EUDR due diligence, risk assessment, and geolocation rules to prevent it. Ivory Coast, the world’s largest cocoa exporter, has exhausted much of its productive forest area. Decades of intensive cultivation, repeated clearing, and chemical fertiliser use have depleted soils and weakened local ecosystems. Producers are increasingly moving into Liberia, attracted by comparatively fertile and intact forests. According to the report "ALERT ON THE SUPPLY OF CACAO FROM LIBERIA -How do a combination of factors and players encourage the presence of Liberian cacao in the Ivory Coast supply chain?" from the Independent Cocoa Observer Report - April 2024 (Author IDEF with the participation of ID Cocoa), this expansion presents complex environmental and social challenges, demonstrating how global demand for cocoa interacts with local land use, labour practices, and ecosystem sustainability. In Liberia’s Grand Gedeh region, cocoa expansion has transformed nearly 500,000 hectares of primary forest  into plantations since 2020. Families have ceded plots ranging from 50 to 300 hectares , a dramatic increase from the 8–10 hectares observed in previous years. The scale of forest clearance is unprecedented. Satellite data shows a yearly average loss of 40,000–50,000 hectares  of primary forest, with secondary forests also being cleared to maintain productivity. Habitat loss threatens species such as forest elephants, pygmy hippos, and numerous endemic birds and plants. Soil degradation, reduced water retention, and carbon release are additional environmental consequences. Socially, the expansion involves labour-intensive land clearing. Investigators report widespread use of child and adolescent labour , with young people often engaged in hazardous tasks, including forest clearing and pesticide application. Communities face increased vulnerability as traditional livelihoods are replaced by monocrop farming, and conflicts over land access have risen. Download report The EU Deforestation Regulation (EUDR) The EUDR , adopted in 2023, is designed to prevent commodities linked to deforestation from entering EU markets. It covers cocoa, coffee, soy, palm oil, timber, beef, and rubber. For EU importers, the regulation establishes a structured supply chain due diligence framework  to mitigate risks associated with deforestation and social harm. Key components include: Risk Assessment:  Identify sourcing regions with potential deforestation, biodiversity loss, and social violations. Risk Mitigation:  Work with suppliers to reduce risks and ensure compliance with environmental and human rights standards. Due Diligence Statements (DDS):  Document that imported commodities meet deforestation-free and social compliance criteria. Geolocation Tracking:  Map exact production sites to verify legality and prevent the entry of illegally produced commodities. How EUDR Can Help Combat Deforestation in Liberia If implemented effectively, the EUDR can provide incentives for deforestation-free cocoa production  in Liberia. Importers will be required to source from plantations that comply with legal and sustainability standards. This encourages sustainable land use, discourages illegal forest clearance, and fosters transparency across supply chains. Our EUDR Knowledge Hub EUDR Compliance Ops Checklist 🔒Unlock 10 practical steps, in the right order, to fully prepare for EUDR by 30 Dec 2026—don’t risk being caught off guard! EUDR Delay & Quick Prep Guide 🔒EU may delay EUDR to Dec 2026 due to IT challenges. Prepare now to ensure smooth compliance and avoid border disruptions. EUDR: Country Risk List & Law For Download 🔒Download the full EUDR country risk list, official regulation, methodology & annex—instantly available for your compliance planning. EUDR: Your Questions & Our Answers 🆓 Introducing Our Blog Series "EUDR: Your Questions & Our Answers" where we answer your questions on EUDR. Due Diligence Under the EUDR 🔒 Master EUDR due diligence requirements with this step-by-step guide to risk assessment, mitigation, and compliance obligations. Why World Forest Day Matters to Customs 🆓 Celebrate World Forest Day by understanding its impact on global trade and why deforestation-free supply chains are vital for compliance. EUDR: Space Drives Deforestation-Free Trade 🔒We examine how businesses can utilize free EU Space Tools to promote sustainable, deforestation-free products while minimizing compliance costs. EUDR Compliance: Facts vs. Fiction Think the EUDR is all about red tape and trade barriers? Let’s separate fact from fiction and uncover what it really means for your business. EU's EUDR Implementation 🔒Learn about the EU's approach to implementing the EUDR, addressing due diligence, IT systems, and compliance challenges. Implications for EU Importers Companies sourcing cocoa from Liberia, in the future, may need to apply the EUDR’s due diligence measures: Track suppliers and plantation locations through geolocation data . Conduct comprehensive risk assessments  for deforestation and social violations. Implement mitigation measures  with suppliers. Maintain Due Diligence Statements (DDS)  to document compliance. Non-compliance could result in blocked imports, reputational damage, and legal exposure. The regulation is designed to integrate environmental, social, and supply chain transparency standards into business operations. Conclusion Liberia’s cocoa boom highlights the intersection of global trade, environmental conservation, and social responsibility. The EUDR provides a clear framework  for managing these risks through due diligence, risk assessment, DDS, and geolocation verification. Applied consistently, it allows EU importers to source cocoa responsibly, mitigating deforestation and social harms, and promoting sustainable production in regions like Grand Gedeh. How We Can Help We cover case studies like this in our EUDR training , helping EU importers understand how to apply due diligence, risk assessment, DDS, and geolocation in real-world scenarios. Check out our EUDR trainings at www.customsmanager.org/events 🆓 We, at Customs Manager Ltd, support EU importers in navigating the EUDR through tailored risk assessment guidance, and bespoke compliance advice. Schedule a free call to discuss your supply chain challenges and next steps. Free Expert Call: www.customsmanager.org  ⇒ Book Expert Call 🆓 You can also sign up for The Monday Mandate, our biweekly, free briefing for trade compliance professionals, to receive the latest updates on EUDR, due diligence, and global trade regulations directly to your inbox. Free The Monday Mandate Newsletter: www.customsmanager.info ⇒ Drop E-mail in box

🆓 From Jan 2026, France ends one-off fiscal representation under Regime 42. Non-EU traders may need to register for VAT and manage compliance directly. From 1 January 2026, France will abolish the long-standing VAT simplification available under Customs Procedure 42 (Regime 42) for non-EU importers, including businesses established in the United Kingdom, Norway, Switzerland, and other non-EU jurisdictions. This reform, introduced under the French Finance Act 2025, aims to tighten VAT control and align France with broader EU anti-fraud measures. For specifically, From 1 January 2026, France will end the “one-off fiscal representation” mechanism under Customs Procedure 42 (Regime 42) , fundamentally changing how non-EU companies, including UK businesses, can import goods into France. Key French VAT Changes for Traders in 2026 Non-EU importers will face new compliance obligations when importing through France: Register for French VAT Submit periodic VAT returns  declaring import VAT and intra-EU supplies Appoint a fiscal representative  (mandatory for non-EU businesses) Pre-finance import VAT , unless deferred accounting applies via a fiscal representative EU businesses may register directly; a fiscal representative is not mandatory but remains an option. Are EU-established businesses affected? EU-established businesses are not affected  and can continue trading under normal intra-EU VAT rules. However, they may still require a French VAT registration in certain cases. Legal Review Until the end of 2025, the French Finance law (Code général des impôts) allowed: This translates to: Here’s an accurate English translation of your text: "III – By way of derogation from the first paragraph of I, persons not established in the European Union who carry out exclusively transactions for which they are exempt from tax payment under 4 of II of Article 277 A or transactions exempt under 4° of III of Article 291 may appoint a taxable person established in France, accredited by the tax authorities, to fulfil the reporting obligations related to the relevant transaction. This taxable person is liable for the tax on the transaction for which they must complete the reporting obligations, as well as any related penalties, if the conditions for the exemption from payment or the tax exemption are not met. A decree defines the conditions under which the reporting obligations provided for in Article 287 are simplified for these transactions" Download here: This law allowed non-EU businesses to appoint freight forwarders or customs representatives as a one-off fiscal agent , using the agent’s French VAT number for Regime 42 imports . This allowed companies to avoid registering for VAT in France and simplified compliance for goods imported under DDP terms and immediately sent to other EU member states. From 1 January 2026, this option disappears. This follows the French Finance Act 2025 (LOI n° 2025-127 du 14 février 2025) , which repeals Article 289 A III of the French General Tax Code: Non-EU companies wishing to continue using Regime 42 must: Register directly with the French tax authorities  to obtain their own VAT number. File their own French VAT returns , assuming full responsibility for compliance. Regime 42: What Really Ends – and What Remains There has been confusion about Regime 42’s status: Myth:  France is abolishing Regime 42 completely. Fact:  The procedure itself remains. Non-EU businesses will no longer be able to use the simplified “one-off” model. To continue importing via France, non-EU businesses must: Register for French VAT Appoint a full fiscal representative Submit VAT returns covering import VAT and onward EU movements For EU-established businesses , Regime 42 continues under standard intra-EU VAT rules. The reform primarily removes the exemption benefiting non-EU importers. Business Impact for Non-EU Traders The withdrawal of Regime 42 will have significant administrative and financial implications for global exporters, particularly UK, US, and Asian businesses using France as an EU gateway. While France may lose some competitiveness, importing remains possible with the support of a qualified fiscal representative  to manage compliance and cash-flow risks. Read Our Guide Procedure 42: Guide to Postponing EU Import VAT 🔒Navigating Procedure 42: A Guide to Efficient VAT Management for EU Importers Why This Matters The change affects any non-EU business using Regime 42 for EU-wide distribution: Cash flow impact : VAT will now be accounted for directly, affecting working capital. Operational changes : Internal processes for VAT filing and compliance will require review. Preparation time : French VAT registration can take up to 45 days, making early action essential. Strategic Considerations While Regime 42 remains available, businesses must reassess: Whether direct VAT registration suits their operational model. Whether alternative customs procedures, such as Regime 40, might be more practical. How EU distribution strategies should adapt under the new rules. Alternative EU import routes offering VAT deferral Read our guide Our Guide to French VAT Deferral Alternatives 🔒 France will update Regime 42 in 2026. Discover 5 proactive steps, like EU VAT deferral options in the Netherlands and Belgium, to protect your supply chain. Stay up to date with Customs Manager's Trade Intelligence Sign up to the Monday Mandate, the free trade briefing coming out every week. Visit www.customsmanager.org and leave your email address. Five Steps to Prepare for France’s 2026 VAT Reform Review current import routes  – Identify where Regime 42 is used and assess cash-flow impact. Compare alternative EU ports  – Evaluate Netherlands, Belgium, or Germany for VAT deferral and cost efficiency. Register for French VAT early  – Start registration now to avoid delays. Reassess Incoterms  – Consider moving from DDP to DAP or EXW to reduce VAT exposure. Work with a trusted fiscal representative  – Ensure experienced support in managing compliance and cash-flow. Early preparation helps avoid customs delays, penalties, and unnecessary administrative costs. Next Steps Customs and VAT procedures continue to evolve, and proactive planning is essential. Companies should act early to ensure uninterrupted operations and full compliance with French VAT requirements. How Customs Manager Ltd Helps Businesses Prepare Customs Manager Ltd. supports businesses in navigating France’s 2026 VAT changes by providing end-to-end solutions: French VAT registration  and submission of periodic VAT returns. Customs clearance  and coordination with local authorities. Alternative import routes  via the Netherlands or Belgium to improve efficiency and cash flow. Supply chain restructuring  to maintain compliance and minimise disruption. Cash-flow impact analysis  and practical mitigation strategies. If your business is based outside the EU and currently imports via France, now is the time to act. Schedule a free call  with our experts to discuss your options and plan next steps. Stay informed by signing up for The Monday Mandate , our free weekly trade briefing for customs and trade professionals. It delivers practical insights, regulatory updates, and expert guidance straight to your inbox. Free Call ⇒ www.customsmanager.org ⇒ Book Expert Call Free Newsletter ⇒ www.customsmanager.info ⇒ Drop e-mail in box Take action today to protect liquidity, maintain smooth EU operations, and ensure a seamless transition ahead of France’s 2026 VAT reform.

🔒 France will update Regime 42 in 2026. Discover 5 proactive steps, like EU VAT deferral options in the Netherlands and Belgium, to protect your supply chain.

🆓 We explore a landmark agreement between the EU and Mercosur promises to reshape trade, sustainability, and economic ties for years to come. What Questions I Will Answer in this blog: What are the key benefits of the EU-Mercosur agreement for customs and trade professionals? How will this agreement impact EU exporters and Mercosur countries' access to the European market? How Will Tariffs Be Eliminated? What sustainability measures are embedded in the EU-Mercosur partnership, and how do they align with global climate goals? Introduction The recent political agreement between the European Union and the Mercosur countries (Brazil, Argentina, Paraguay, and Uruguay) marks a pivotal moment in international trade. This deal, the largest of its kind, promises to enhance economic, political, and environmental ties, creating numerous opportunities for businesses on both sides of the Atlantic. Understanding the nuances of this agreement is crucial for customs professionals, importers, exporters, and consultants. In this blog, I will delve into the implications for trade and customs procedures, while providing insights to help you navigate this exciting new phase of global commerce. "As a customs professional, this EU-Mercosur deal represents not just a shift in trade dynamics but also a profound opportunity to streamline operations, reduce costs, and bolster sustainability efforts across international supply chains."— Arne Mielken, Managing Director of Customs Manager Ltd Abbreviations I Use in this Blog To ensure clarity and understanding throughout, I will define some key terms: EU : European Union Mercosur : A South American trade bloc consisting of Brazil, Argentina, Paraguay, and Uruguay Geographical Indication (GI) : A label that identifies a product as originating from a specific place, with qualities or reputation linked to that location Paris Agreement : An international treaty aimed at reducing carbon emissions and limiting global warming What are the Key Benefits of the EU-Mercosur Agreement for Customs and Trade Professionals? The EU-Mercosur agreement is a groundbreaking achievement for international trade. As customs professionals, you must be aware of the many benefits this deal offers tothe EU and Mercosur countries. Cost Savings : EU businesses can save approximately €4 billion annually in export duties. This tariff reduction significantly boosts exporters, especially small and medium-sized enterprises (SMEs) who may have previously faced prohibitive costs. Streamlined Customs Processes : One of the deal's most exciting aspects is removing red tape. This means fewer barriers and delays, making it easier and quicker to clear goods through customs. For customs consultants and agents, this means less paperwork and smoother operations for your clients. Diversified Supply Chains : The agreement strengthens trade and investment flows, securing access to critical raw materials and boosting the resilience of global supply chains. EU businesseswill benefit from preferential trade terms, particularly in industries such as renewable energy technologies and low-carbon fuels. This deal is a true win-win for both sides. EU companies will benefit from greater access to Mercosur markets. At the same time, Mercosur exporters gain privileged entry to the EU market, with the assurance of compliance with EU health and safety standards. How Will This Agreement Impact EU Exporters and Mercosur Countries' Access to the European Market? The EU-Mercosur agreement is set to enhance market access for both parties, with specific provisions supporting businesses' competitiveness on both sides. Increased Access for EU Exports : Over 350 EU products now have the protection of Geographical Indication (GI). This ensures that high-quality EU food and drinks, such as Parmesan cheese and Prosciutto di Parma, maintain their protected status in the Mercosur market. For EU exporters, this safeguard represents a competitive edge, ensuring that inferior imitations do not dilute their products. EU Health and Safety Standards : EU export standards remain a cornerstone of the agreement. Mercosur exporters will have to meet stringent EU regulations, particularly regarding animal health and food safety. This means safer, higher-quality products for consumers while EU exporters retain the integrity of their brands. Opportunities for Mercosur : The agreement opens up lucrative opportunities in the EU market for Mercosur countries, particularly in the agriculture and food sectors. However, Mercosur exporters must comply with EU standards to gain entry, which may require adjustments in their production and quality control processes. The agreement between the EU and Mercosur will bring several key achievements that will benefit both regions, especially in terms of trade, economic growth, and social responsibility. How Will Tariffs Be Eliminated? One of the major economic benefits of the agreement is the removal of high tariffs imposed by Mercosur on European goods. Currently, European products face significant tariff barriers when exported to Mercosur countries, making them more expensive. Products affected by these tariffs include: Cars Machinery Information and communications technology equipment Textiles Chocolate Spirits Wine The removal of these tariffs will make European products more competitive in Mercosur markets, allowing EU companies to expand their exports and increase market share in these high-growth regions. How will trade barriers be removed? In addition to tariff elimination, the agreement will facilitate trade by addressing non-tariff barriers that have previously hindered EU exports to Mercosur. Key provisions include: Removing Restrictive Rules and Regulations:  EU firms will no longer face obstacles such as overly complex rules that differ from international standards. Eliminating Non-Automatic Import Licenses:  The new agreement will streamline the import process, making it more predictable and efficient. Simplifying Conformity Assessment Procedures:  The agreement will reduce the burden of complex and costly certification procedures for European businesses. These measures will particularly benefit EU exporters in sectors such as: Agri-food products Machinery Pharmaceuticals Cars Textiles and clothing As trade barriers are reduced, European firms will have more opportunities to expand their presence in Mercosur markets, which can result in job creation and economic growth both in the EU and Mercosur. What is the importance of Rules of Origin? As with any trade agreement, adherence to the rules of origin  is crucial. These rules determine the origin of the goods traded between the two regions and ensure that only products that meet the necessary criteria benefit from tariff reductions. Ensuring compliance with these rules is essential for businesses to fully capitalize on the advantages of the agreement. As a customs consultant, you must advise your clients in Mercosur on navigating these requirements and ensuring compliance. At the same time, you must assist EU exporters in making the most of these new opportunities. What Sustainability Measures are Embedded in the EU-Mercosur Partnership, and How Do They Align with Global Climate Goals? One of the most significant aspects of the EU-Mercosur agreement is its focus on sustainability. The deal includes firm commitments to environmental protection, making it a cornerstone of both trade and climate action. Commitment to Halting Deforestation : The agreement includes binding commitments to combat deforestation in Mercosur countries, particularly in Brazil, which is home to the Amazon Rainforest. These measures will be vital in addressing global concerns about climate change. Alignment with the Paris Agreement : The deal places the Paris Agreement at the heart of EU-Mercosur relations. This means both parties are committed to reducing carbon emissions and working together to achieve global climate goals. Civil Society Oversight : The agreement includes provisions for civil society organisations to monitor the implementation of these commitments, ensuring that environmental protections are upheld. This accountability is critical for maintaining the integrity of the agreement. For customs professionals, this represents a new layer of compliance that may require updates to procedures and processes, particularly in relation to the sustainability credentials of imports and exports. Arne’s Takeaway The EU-Mercosur agreement is a landmark development that promises to reshape global trade, offering a wealth of opportunities for customs professionals. As this deal unfolds, it is essential to stay informed about the implications for both customs clearance and sustainability compliance. For those of you working in import-export operations, this is an exciting time to streamline processes, reduce costs, and align with global environmental standards. Expert Recommendation: For EU exporters : Take advantage of the tariff reductions and GI protections to expand your reach into Mercosur countries. For Mercosur exporters : Prepare for stricter compliance with EU health and safety standards, particularly in food and agriculture sectors. For customs professionals : Familiarise yourself with the sustainability commitments of this agreement to advise your clients on the new compliance requirements. Fancy a Call? I offer comprehensive support for navigating the EU-Mercosur agreement, from customs clearance to sustainability compliance. I would love to talk to you about your questions and challenges with the EU-Mercosur partnership. I offer a free expert call of up to one hour, which you can book seamlessly here. I provide public, in-house, and on-demand training tailored for customs professionals, importers, exporters, and their partners. Our membership services include Weekly customs trade intelligence and updates. I also offer UK import and export customs clearance services. For more details on services, visit www.customsmanager.org . Sources That I Base Our Information in This Blog On FTA: EU & Mercosur - Legal Text  : The legal text of the EU-Mercosur Free Trade Agreement (FTA) contains detailed provisions on trade, tariffs, and market access. EU & Mercosur FTA: 5 Factsheets : Explore the EU-Mercosur FTA with key facts and factsheets on agriculture, raw materials, health & safety. EU & Mercosur FTA: FAQ : Get Answers to Frequently Asked Questions on the EU-Mercosur deal. Summary of the agreement