Customs and Trade Newsletter

Welcome to the latest edition of my newsletter. Here is a summary of the latest updates and insights from the world of customs and trade. Let’s dive right in! ????

??EU adopts 14th package of sanctions against Russia

EU adopted the 14th package of sanctions against Russia, targeting the trade, services and transport sectors and making sanction circumvention more difficult.

Trade related key measures:

• Extension of the export restrictions on dual use/advanced technology items (e.g., “quad bikes”, microwave and aerial amplifiers and digital flight data recorders), aiming to further weaken Russia's military capabilities.
• Reinforcement of the current export bans on industrial goods focusing on four sectors: chemicals, plastics, vehicles parts and machinery, worth EUR 5 billion of annual exports prior to the invasion (2021). The export as well as the transfer of manganese ore are now prohibited.
• Import ban on helium which generates significant revenues for Russia.
• Enhanced measures to prevent circumvention of sanctions, including compliance support and restrictions on foreign subsidiaries of EU operators.
• Clarification and tightening of the import ban on Russian diamonds, already agreed in the 12th sanctions package. It clarifies that the ban does not apply to diamonds that were located in the EU or in a third country (other than Russia), or were polished or manufactured in a third country, before the ban on Russian diamonds entered into force. It also allows temporary imports or exports of jewellery. After 1 March 2025 the full-traceability scheme for imports of rough and polished natural diamonds will become mandatory.
• Extension of the Common High Priority (CHP) list: the CHP list, compiled by the EU and its international partners, was updated to include five HS codes concerning computer numerical control (CNC) machine tools used for weapons production. This update is now reflected in EU legislation.

??For a detailed overview, read the full press release and Q&A.

????EU further extends the scope of sanctions on Belarus to fight circumvention

EU adopted a new set of sanctions against Belarus, in view of its involvement in Russia's illegal war of aggression against Ukraine, mirroring several of the measures already imposed on Russia, making EU sanctions against Russia more effective.

Key measures:

• Export restrictions on dual use and advanced technology goods have been extended and new restrictions have been introduced on goods which could contribute to the enhancement of Belarusian industrial capacities, as well as maritime navigation equipment, oil refining technology and certain luxury goods.
• Imports of goods allowing Belarus to diversify its sources of revenue as well as gold and diamonds have been prohibited.
• EU operators must from now undertake their best efforts to prevent their foreign subsidiaries from engaging in activities that undermine sanctions.
• To reduce the risk of circumvention with regard to sensitive goods, the transit of certain goods (e.g. dual use, advanced technology, firearms, aviation related materials) via Belarus is from now prohibited. Moreover, EU exporters must include a "no-Belarus clause" in new contracts and EU operators trading in battlefield goods must implement due diligence mechanisms.

For more details read the press release: EU further extends the scope of sanctions on Belarus to fight circumvention

????The European Union and the Kyrgyz Republic sign an Enhanced Partnership and Cooperation Agreement (EPCA)

On 25 June, the European Union and the Kyrgyz Republic signed an Enhanced Partnership and Cooperation Agreement (EPCA) in Brussels, as an important milestone in the strengthening bilateral relations.

The Agreement will provide a new legal basis for reinforced political dialogue and deepening cooperation in many mutually beneficial areas. These include trade and investment, sustainable development and connectivity, research and innovation, education, environment and climate change, as well as rule of law, human rights and civil society.

Source and full press release: The European Union and the Kyrgyz Republic sign an Enhanced Partnership and Cooperation Agreement (EPCA)

??EU gains US market access for certain plants

Producers of certain plants from 21 EU Member States will soon be able to export to the United States, thanks to the European Commission’s efforts to negotiate the removal of US import restrictions.?

The removal of this trade barrier benefits the 21 Member States concerned in different ways. Belgium, Denmark and the Netherlands, which were previously only allowed to export plants for planting with a stem diameter below 10 mm, can now export plants for planting without restriction. The remaining 18 Member States can now also apply to export certain plants for planting that can benefit from the trade facilitation condition.?

The Commission will continue to work with the US on the EU’s remaining demand to also recognise 'country free' status for Finland and Austria, and 'pest-free area' status for the four remaining EU Member States - Croatia, France, Germany and Italy.?

Full press release: EU gains US market access for certain plants

????EU prolongs steel safeguard measure until June 2026

EU extended the current steel safeguard measure for two more years, until June 2026. The regulation also adjusts the functioning of the measure, to adapt it to market conditions. ?

The prolongation and adjustments are justified by a combination of factors that resulted in significant import pressure on the Union market:?

• high levels of global steel overcapacity and the surge of exports from China to third countries, notably in Asia, resulting in increased exports from those third countries to the EU; ?
• the increased number of trade defence measures and other trade restrictive measures imposed by other third countries, and;?
• the significant reduction of demand in the EU.

Full press release: EU prolongs steel safeguard measure until June 2026

UK: Trade remedies notices: tariff-rate quotas on steel goods

This public notice was published on 30 June 2024 with effect from 1 July 2024. It supersedes 4 safeguard measure trade remedies notices on tariff-rate quotas on steel goods, specifically 2022/01, 2022/02, 2023/10 and 23/11.

The TRA recommended, that the safeguard measure should be extended for a period of 2 years in respect of all the goods subject to review. The recommendation was made on the grounds that, for all product categories, it was established that:

• the importation of the goods subject to review in increased quantities is likely to recur
• it is likely that serious injury will recur if the application of safeguard measure is not extended
• the circumstances of UK producers, or domestic or overseas market conditions, are such that the serious injury caused by the importation of the goods subject to review in increased quantities is likely to recur
• UK producers are adjusting to increased imports of the goods subject to review since the implementation of the safeguard measure

Source: GOV.UK

??WCO Unveils Data Model Version 4.1.0

The World Customs Organization (WCO) announced the release of version 4.1.0 of the WCO Data Model. The updated version brings significant enhancements that are set to streamline Customs processes and help foster international trade. This offers a more holistic approach to data management, fostering greater transparency, efficiency, and security in international trade operations.

An important inclusion is the updated version of the Universal Postal Union dataset and Joint Message Standards – Message Implementation Guide, designed to improve the processing and monitoring of postal shipments, ensuring faster and more reliable delivery services across borders. It provides detailed instructions on how to implement the new data sets, ensuring seamless adoption and interoperability among Customs authorities and their trading partners.

Source and more details: WCO

??World Customs Organization Releases Illicit Trade Report 2023

The World Customs Organization (WCO) released the Illicit Trade Report 2023, a comprehensive analysis of the current state and evolving trends of illicit trade, covering several critical areas for enforcement activities, including drugs, the environment, cultural heritage, money laundering and terrorist financing, intellectual property rights, health and safety, revenue and security. One of the key highlights of the report is the emphasis on technological advancements and innovative tools that are being employed to combat illicit trade.

The report also underscores the significance of international cooperation and information sharing.

Source and more details: WCO

??Nigeria Celebrates Successful Launch of ePhyto Solution, Boosting Agricultural Trade

Nigeria successfully implemented the International Plant Protection Convention (IPPC) ePhyto Solution. The ePhyto Solution facilitates the exchange of electronic phytosanitary certificates, or ePhytos, with international trading partners. This digital system eliminates paper-based documentation by reducing costs and processing times, enhancing food security and strengthening competitiveness.

The initiative signifies a major step forward in streamlining Nigerian agricultural trade.

Source and more details here.