Monthly Customs and Excise Update

Combined Nomenclature 2022

On 29 October, the Commission published the latest version of the Combined Nomenclature (CN) applicable as from 1 January 2022. The main amendments in the CN 2022 include the introduction of new tariff codes (e.g. smartphones, virgin olive oil, e-cigarettes,..), and changes in the classifications of certain substances in the list of common names for chemical and pharmaceutical products.

New application forms for preferential origin authorizations

The Belgian customs authorities have published new application forms for two authorizations in relation to preferential origin. First, there is an altered form to apply for the authorization for approved exporter and issuance of A.TR. Secondly, there is a new application form for an accounting segregation authorization in the context of preferential origin. The latter is mandatory if physical inventory segregation of identical or equivalent non-originating goods is not possible.

Transitional rules of origin implementation in the pan-Euro-Mediterranean (PEM) area

Pending the adoption of the revised PEM Convention, the EU is in the process of amending 21 origin protocols with an alternative set of origin rules with the PEM contracting parties. The transitional rules will be applicable in parallel to the current origin rules of the PEM Convention. In this regard, the EU has recently published Decisions announcing the agreement to start applying the transitional rules of origin with various partner countries. On 1 September, the following countries started to apply the transitional rules: Albania, Faroe Islands, Georgia, Iceland, Jordan, Palestine, Norway and Switzerland. North Macedonia and Moldova followed on respectively 9 September and 16 November.

Notice on pan-Euro-Mediterranean preferential origin diagonal cumulation

The Commission published notice (2021/C418/12) on the update of the matrices providing for an overview of the diagonal cumulation possibilities in the pan-Euro-Mediterranean (PEM) zone applicable on 1 August 2021. Please note the PEM transitional rules of origin, agreed upon in the amended origin protocols, are not covered in the matrices, as they only entered into force as of 1 September 2021.

Change of export procedures for airfreight at Brussels airport

15 November 2021 marked the next step in the implementation of the ECS II System at Brussels Airport, as handling agents need to submit all necessary messages in ECS II in order to trigger the exit confirmation. This implies that exit confirmations via BRUcloud and the brigade are discontinued.

Additionally, as of 15 January 2022, freight forwarders will no longer be able to deliver goods to the handling agent without having submitted the charge report (i.e. export arrival notification) in the ECS II system.

Vaccine export authorization regime to be replaced with new monitoring tool

The current EU COVID-19 vaccines export authorization mechanism will end on 31 December 2021. The mechanism will be replaced with a new monitoring tool as of 1 January 2022. This means vaccine exporters will no longer have to apply for an authorization for the export of vaccines outside of the EU.

The aim of the monitoring tool is to collect data on exports of COVID-19 vaccines and the active substances to produce such vaccines at company level. Processing this data is a means to control deliveries of vaccines to Europeans in line with contractual obligations.

Anti-dumping duties

The Commission has published various regulations imposing anti-dumping duties: 

• Commission Implementing Regulation (EU) 2021/1784 of 8 October 2021 imposing a definitive anti-dumping duty on imports of aluminium flat-rolled products currently falling under CN codes ex 7606 11 10, ex 7606 11 91, ex 7606 11 93, ex 7606 11 99, ex 7606 12 20, ex 7606 12 92, ex 7606 12 93, ex 7606 12 99, ex 7606 91 00, ex 7606 92 00, ex 7607 11 90 and ex 7607 19 90 originating in China. Due to temporary and exceptional changes in market conditions during the COVID pandemic, the Commission announced the suspension of the application of these measures for 9 months. This means that the anti-dumping measures will be applicable as from 11 July 2022. Although the market conditions in the EU have improved, including a rise in demand, the Commission believes this improvement to be of temporary nature and to deteriorate again after the temporary suspension as no structural changes have been made.
  
  
• Commission Implementing Regulation (EU) 2021/1805 of 12 October 2021 imposing a definitive anti-dumping duty on import of wire rod currently falling under CN codes 7213 10 00, 7213 20 00, 7213 91 10, 7213 91 20, 7213 91 41, 7213 91 49, 7213 91 70, 7213 91 90, 7213 99 10, 7213 99 90, 7227 10 00, 7227 20 00, 7227 90 10, 7227 90 50 and 7227 90 95) and originating in China.
  
  
• Commission implementing regulation (EU) 2021/1820 of 18 October 2021 imposing a definitive anti-dumping duty on imports of high tenacity yarns of polyesters currently falling under CN code 5402 20 00 and originating in China following an expiry review.
  
  
• Commission implementing regulation (EU) 2021/1976 of 12 November 2021 imposing a definitive anti-dumping duty and definitively collecting the provisional duty imposed on imports of mono ethylene glycol, currently falling under CN code ex 2905 31 00 (TARIC code 2905310010) and originating in the United States of America or the Kingdom of Saudi Arabia.
  
  
• Commission Implementing Regulation (EU) 2021/2012 of 17 November 2021 imposing a definitive anti-dumping duty and definitively collecting the provisional duty imposed on imports of stainless steel cold-rolled flat products, currently falling under CN codes 7219 31 00, 7219 32 10, 7219 32 90, 7219 33 10, 7219 33 90, 7219 34 10, 7219 34 90, 7219 35 10, 7219 35 90, 7219 90 20, 7219 90 80, 7220 20 21, 7220 20 29, 7220 20 41, 7220 20 49, 7220 20 81, 7220 20 89, 7220 90 20 and 7220 90 80 and originating in India or Indonesia.
  
  
• Commission Implementing Regulation (EU) 2021/2011 of 17 November 2021 imposing a definitive anti-dumping duty on imports of optical fiber cables, currently falling under CN code ex 8544 70 00 and originating in the People’s Republic of China.
  
  
• Commission Implementing Regulation (EU) 2021/1930 of 8 November 2021 imposing a definitive anti-dumping duty and definitively collecting the provisional duty imposed on imports of birch plywood, currently falling under CN code ex 4412 33 00 and originating in Russia.
  
  

WTO launched improved quantitative COVID-19 restrictions database

On 8 November, the WTO launched an improved Quantitative Restrictions (QR) Database. The QR Database is an online platform providing information on export prohibitions and restrictions introduced by WTO members in response to the COVID-19 pandemic. Amongst others, the type of information provided by the QR database are: the affected products, the intended duration of the measures and their WTO justifications.

Brazil requests WTO dispute consultations on EU’s poultry import measures

Brazil has requested dispute consultations with the European Union regarding the EU measures on the importation of poultry meat preparations, such as salted chicken meat and turkey meat with pepper, from Brazil. Brazil considers that there is no technical or scientific evidence to justify the application of more stringent microbiological criteria for the detection of salmonella in poultry meat preparations compared to the criteria used for fresh poultry meat. By doing so, it considers the EU to be in violation of the WTO's Agreement on Sanitary and Phytosanitary Measures.

EU and US agree to start discussion to decarbonize steel and aluminium

The EU and the US have agreed to start discussions on a Global Arrangement on Sustainable Steel and Aluminium. This is an important step in achieving the decarbonization of the global steel and aluminium industries in the fight against climate change. Following the United States' announcement that Section 232 tariffs on EU steel and aluminium exports will be removed up to past trade volumes, the European Union promised to take steps to suspend its rebalancing measures against the United States. The EU and the US agreed to put the WTO disputes on this matter on hold.

Switzerland set to eliminate import customs duties on industrial goods

The Swiss Federal Parliament adopted a bill to abolish import duties on almost all industrial goods (chapters 25 -97) and simplify the Swiss customs tariff to reduce costs for both consumers as well as companies. The new import tariffs for all industrial goods would be zero, except for a few industrially produced agricultural products, making compliance and import procedures less complicated and burdensome. The final vote in Parliament, is still subject to an optional referendum. For more info, read the alert from EY Switzerland.

Brexit update

The UK HM Revenue & Customs released an update of its Border Operating Model. The new version incorporates all announced postponements and, among other things, the requirement for hauliers to register and report the movements of goods to and from the UK in the UK Goods Vehicle Movement Services (GVMS) platform. This system was already in place for transit goods since January 2021, but will, as of January 2022, also be implemented for arrivals at a number of specific ports that either request the use of GVMS or operate the pre-lodge import model. Amongst others, Felixstowe, Dover, and the Eurotunnel are impacted. Furthermore, the updated Border Operating Model sets revised timelines: on 1 January 2022, the pre-notification requirement for Sanitary and Phytosanitary (SPS) goods comes into force together with full customs declarations and controls. As from 1 July 2022, Safety and Security declarations and certification and physical checks for plants, plant products, products of animal origin and certain animal by-products will be introduced.