Newsletter - First Week Of October in Customs and Trade

In this edition we will cover the most important customs and trade headlines of the first week of October.

The EU’s Carbon Border Adjustment Mechanism entered into application in its transitional phase, Sunday, 1 October.

CBAM is a policy tool introduced by the EU to reduce carbon emissions by imposing a carbon tax on imported products, ensuring that they are subject to the same carbon costs as products produced within the EU.

In its transitional phase, CBAM will only apply to imports of cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.

EU importers of those goods will have to report on the volume of their imports and the greenhouse gas (GHG) emissions embedded during their production, but without paying any financial adjustment at this stage.

Source

More details on CBAM here

The UK and EU implemented additional import controls on iron and steel products under the Russian Sanctions legislation.

New EU and UK sanctions came into effect last week targeting the imports of specified iron and steel products which are processed in third countries and incorporate Russian-origin iron and steel inputs.

The focus is on establishing if the iron or steel used in manufacturing products within Chapters 72 and 73 of the Tariff originated or was processed in Russia.

The EU is imposing a phased introduction of the new measures, this being the first phase - covering iron and steel products as listed in Annex XVII of the EU Regulations , imported, or purchased directly or indirectly in a third country incorporating iron and steel products originating in Russia.

Importers and traders will now need to declare upon import whether the imported goods are compliant and should prepare to have available documents to demonstrate the imported goods’ supply chain. Failure to provide evidence may lead to EU customs authorities refusing to release the imported iron and steel products.

EU Regulations

Frequently asked questions on the import, purchase & transfer of listed goods concerning sanctions adopted following Russia’s military aggression against Ukraine and Belarus' involvement in it

The UK Guidance contains scenarios which provide examples of how the rules may be applied in practice and sets out the tariff codes for the relevant iron and steel products caught by the new measures.

UK Regulations

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NCTS Phase 5, the latest version of the New Computerised Transit System, will roll out on 16 November 2023

The UK will be moving to NCTS5 on 16 November 2023. This means that all new transit declarations for movements on or after 16 November, must be submitted into NCTS5.

Source

Trader Support Service (TSS) Extension

HMRC has confirmed the extension of the Trader Support Service until 31 December 2024.

Source