On November 27, 2023, the European Union and New Zealand opened a new chapter in their economic cooperation. The two partners have been negotiating the free trade agreement for a long time, and now the European Union has ratified it. The Council Decision (EU) 2024/244 highlights the mutual commitment to improving market access and promoting economic growth between the two regions.

Overview of the Agreement

The agreement marks a significant milestone in the relationship between the European Union and New Zealand. It is designed to simplify trade processes, reduce tariffs, and remove barriers to facilitate a smoother flow of goods, services, and investments. Beyond the economic benefits, this agreement also represents a strong political bond with the aim of strengthening relationships and promoting common values on a global level.

Economic Implications and Benefits

For EU companies, the agreement initially means a significant reduction in trade barriers. The elimination of tariffs and quotas will facilitate market access for a wide range of products and services. This can lead to an increase in trade volume between the EU and New Zealand and open up new markets for EU companies.

The agriculture and food industry of the EU could particularly benefit from the agreement. With simplified trade conditions, EU agricultural products and food can gain a larger market share in New Zealand. Conversely, EU consumers benefit from a greater choice of New Zealand products.

Furthermore, the agreement also includes provisions on services, investments, intellectual property, and sustainable development. Therefore, EU companies can expect improved legal frameworks and better protection of their rights in New Zealand. At the same time, EU companies need to adapt to the new trade conditions and reconsider their competitive strategies. Additionally, some sectors, such as the automotive industry, may face pressure from increased competition from New Zealand.

Future Prospects and Strategic Importance

The free trade agreement between the EU and New Zealand brings both opportunities and challenges. It is therefore important for companies to carefully analyze the impact of the agreement on their specific business areas and develop appropriate adjustment strategies. As always, the customs experts at Gerlach are here to assist you and provide support. Please contact us if you have any questions about the free trade agreement between the EU and New Zealand.

The implementation of the new system will take place in 2 phases. The first phase, beginning on 1 March 2024, will see the transition from paper T2L(F) documents to their digital counterparts within the PoUS system. The second phase will incorporate the customs goods manifest, expected to be implemented by the third quarter of 2025.

What does this mean for your company?

To continue issuing T2L(F) documents, your company will need to access the PoUS system via the EU Customs Trader Portal, which requires eRecognition level 3. Paper T2L(F) documents will be phased out and replaced by a Movement Reference Number (MRN) generated through the new system. This MRN must be presented to the customs authorities of the country where the goods arrive. We recommend that companies review their supply chains to identify any necessary adaptations to this new process.

Gerlach Customs is here to support you

To access the PoUS system, you must log into the EU Customs Trader Portal, which necessitates eRecognition level 3. If you have any questions about this process, we will be happy to assist you. Please do not hesitate to contact your local Gerlach office regarding the use of these documents or the new system.

The Economic Partnership Agreement (EPA) provides a basis for promoting job creation on both sides as well as targeted cooperation to improve Kenya's economic development. It is the most ambitious trade agreement the EU has ever signed with a developing country in terms of sustainability provisions such as climate and environmental protection, workers' rights and gender equality.

The agreement reduces tariffs

The bilateral Economic Partnership Agreement (EPA) permanently eliminates EU import duties on Kenyan goods. In return, Kenya undertakes to gradually liberalize 82.6 percent of imports from the EU over 25 years after the agreement comes into force. Tariffs for various agricultural products, chemicals, plastics, paper and cardboard goods, textiles and clothing, ceramic products, glassware, furniture and certain vehicles will remain in place.

Trade volume at 3.3 billion euros

The EU is Kenya's most important export market and the country's second largest trading partner. The total trade volume in 2022 was 3.3 billion euros, an increase of 27% compared to 2018. The EPA will create even more opportunities for Kenyan companies and exporters. On the one hand, it fully opens up the EU market for Kenyan goods. Secondly, it offers incentives for EU investments in Kenya through greater legal certainty and more stability.

The legal figures of the "certified consignee" and the "certified consignor" must be used in this process. Companies that want to send or receive commercially already taxed excisable goods from or to another Member State need to participate in the electronic procedure. Therefore, those who wish to participate in the electronic procedure must first apply for the new permits and excise tax numbers from the competent main customs office.

How Gerlach Customs can support you

At Gerlach Customs Services, we are happy to assist you with any questions regarding the EMCS procedure. Our customs experts can support you in applying for the necessary authorization(s) as a certified consignor/consignee. We can also help you with the processing/creation of transactions afterwards. If you want to play it safe, feel free to contact us.

All economic operators carrying out business activities subject to EU customs legislation and registered in the EORI system must take immediate steps to comply with these new requirements. This includes any person or company involved in trade, transport or logistics activities requiring interaction with customs authorities, so also importers and exporters.

This issue is particularly acute in countries where a larger number of Economic Operators from other nations are registered (e.g., the Netherlands, Sweden) or where postcodes adhere to a unique national system (such as Ireland).

We now urge you to:

1) Verify the accuracy and completeness of their EORI records immediately.

2) Update their registration to include a valid postcode where necessary.

3) Ensure that all new registrations are complete. (Please note that the postcode field will only become mandatory from Q4 2024 in the EOS system as a centrally developed element).

It is important to know that EORI records can only be updated in the Member State of establishment. This means that from February 2024, if your shipment is held up at the border due to a missing zip code, your shipment will be detained until the national authority of the member state where your company is registered has updated the missing information.

If you have any questions or need support with updating your EORI registration, please do not hesitate to contact us. Our team of Gerlach customs experts is ready to help you to ensure that your trading operations continue without interruption.

Version AES 3.0 was developed to adapt the AES procedure to the requirements of the UCC. It contains a number of innovations that are important for everyday work in customs and export processing.

What changes for participants?

Due to the changeover from AES 2.4 and AES 3.0, there are some changes that are important for exporters.

1. country of origin of the goods

Previously, there was only a subdivision into the corresponding shipping region at the federal state level Germany and countries other than Germany.

From now on it is mandatory to indicate the correct country of origin of the goods. The previously possible indication of the country code QU (unknown origin) is no longer applicable.

If the country of origin is not known when the export declaration is submitted, the presumed country of origin or, alternatively, the country of origin/dispatch can be indicated.

Example: If one has a German federal state as the region of origin (01 - 16), then the country of origin DE must also be indicated.

If you specify a foreign country (99) as the region of origin, then you must also specify a country of origin (e.g. CN for China). For European goods, you can also specify "EU".

This has the consequence that, if necessary, several individual items must be declared in the Export Accompanying Document (ABD) in the future in the case of different origins.

The country of origin of the goods must be stated in your shipment documents. Please provide us with this information in the order in the future.

2. carrier

The carrier is a new legally obligatory information and must therefore be indicated in the export declaration in the future. The carrier is also considered to be the forwarding agent.

If the carrier is not known at the time of submission of the export declaration, the presumed carrier can be indicated.

If you do not provide us with a carrier on your behalf, the declarant (declarant = exporter) is considered the carrier.

The complete address and either the EORI or TCUI (Third Country Unique Identification) number of the carrier must be provided.

Please inform yourself in advance with which forwarding agent or freight company you are shipping the goods and obtain the corresponding addresses as well as the EORI or TCUI numbers.

Please provide us with this information in the order in the future. If you do not provide us with a carrier in your order, we will register you as a carrier accordingly.

3. domestic mode of transport and registration number of the outgoing means of transport.

The registration number of the outgoing means of transport is obligatory information in the export declaration and must always be indicated, among other things, if "road transport" is declared as the domestic mode of transport. If the registration number is known at the time the export declaration is filed, it must be indicated.

If it is not known at the time of submission of the export declaration, the presumed registration number can be indicated.

Please contact your forwarding agent or freight company in advance to find out which registration number must be indicated for the domestic shipment of goods.

In the future, please provide us with this information in the order.

4. mode of transport at the border and registration number of the active means of transport crossing the border.

The registration number of the active means of transport crossing the border is mandatory information in the export declaration and must be declared accordingly.

The same requirements apply as for the registration number of the outgoing means of transport.

Please contact your forwarding agent or freight company in advance to find out which registration number must be given for the cross-border shipment of goods.

In the future, please provide us with this information in the order.

5. indication of registration numbers for chemical substances and preparations within the European Customs Inventory of Chemical Products (ECICS).

In the future, the Chemical Abstract Service number (CAS) and the Customs Union and Statistics number (CUS) must be indicated in the export declaration for certain dangerous goods.

The CAS number (also CAS Registry Number, CAS = Chemical Abstracts Service) is an international designation standard for chemical substances. For each chemical substance (including biosequences, alloys, polymers) registered in the CAS database, there is a unique CAS number.

there is a unique CAS number.

The CUS number is an identifier assigned to chemical substances and preparations within the European Customs Inventory of Chemical Products (ECICS).

ECICS - European Customs Inventory of Chemical Products (europa.eu)

Please provide us with the CAS and CUS number in the order in the future.

6. recording info ECCN number

In the context of U.S. export control, ECCN is the abbreviation for "Export Control Classification Number." The ECCN is an alphanumeric designation used in the U.S. dual-use Commerce Control List (CCL) to classify dual-use items.

An ECCN categorizes goods based on their nature and technical parameters. The Export Control Classification Number serves as an important criterion in U.S. export control for reviewing licensing requirements for export and re-export.

The contents listed in the ECCNs are predominantly identical to those of the goods descriptions in Annex I of the EU Dual-Use Regulation. Both the EU Dual-Use Goods List and the US Dual-Use Goods List are based on decisions of the international export control regimes (e.g. Wassenaar Agreement, etc.).

Please provide us with the EECN number in the order in the future.

7 LRN - Local Reference Number

The LRN represents a reference number (Local Reference Number; LRN) defined and assigned by the participant (and, if applicable, agreed with the competent customs authorities), which is used for the unique identification of the created declaration.

It replaces the previous reference number and is used for the provisional identification of an export transaction between receipt and acceptance.

8. ensuring a smooth processing of your shipment.

If you prepare the export declaration yourself, we need the export accompanying document (ABD) together with your order as a PDF file.

Based on the export accompanying document, all necessary shipping and freight documents will be created promptly, including the transit declaration (T1 or T2) according to the new Europe-wide customs regulations. This includes the mandatory entry of all HS codes, product descriptions and weight in the T1/T2.

Alternatively, if the shipping declaration is created via EDI, please ensure that you send us the electronic copies of the above documents. Our integration team can assist you in setting up API-based automatic document transmission.

To ensure proper customs clearance, the exact trade description of your products is mandatory. General descriptions such as "parts", "machinery" or "electronic components" are not accepted by the authorities and may lead to possible delays due to rejections from the authorities and necessary clarifications from our side.

Please send us the export accompanying documents created on your side in PDF form in the order in the future.

The list is not subsequent. Basic information can be found in ATLAS-Info 0306/2022.

The Carbon Border Adjustment Mechanism (CBAM) aims to align greenhouse gas prices from imports with those of EU-produced products. This involves selected imported goods that would also be priced under the EU Emissions Trading Scheme (EU ETS), which has been in place since 2005, if they were produced in the EU. The CBAM is thus intended to ensure that domestic manufacturers have the same competitive opportunities in terms of greenhouse gas costs as their competitors from third countries ("level playing field") - at least as far as imports and the EU market are concerned. For exports, there will be no CBAM reimbursement system for emission costs.

What should I do now?

Be sure to obtain all the information you need for the transition period reports from the manufacturer or seller of the goods. For the first report, which must be submitted to the Commission no later than January 31, 2024, you will need information covering the period from October 1 through December 31, 2023. This information will include:

- the quantity of imported goods

- direct and indirect emissions from the goods

- any carbon prices paid in the country of origin and any offsets received in return.

Please note that the calculation method for direct and indirect emissions will be determined later.

Companies should also now verify that they have an EORI number, a company identification number required for customs transactions.

To whom do the new obligations apply?

The requirement to submit reports during the transition period and obtain CBAM certificates affects all individuals and businesses importing CBAM goods.

CBAM goods?

• For example, CBAM goods include certain iron and steel products, fertilizers, aluminum and cement products, and hydrogen and electricity. For example:
• - Certain iron and steel products
• - Derivative goods such as screws, bolts and washers
• - iron ores
• - certain fertilizers
• - certain aluminum products
• - certain cement products
• - certain chemicals
• - electricity.
• The CBAM regulation does not apply to the following:
• - Shipments of low value, i.e., not exceeding 150 euros (Customs Duty Exemption Regulation, Article 23).
• - CBAM goods carried in personal luggage, the total value of which does not exceed 150 euros
• - Goods used for military purposes
• - Goods originating in Iceland, Liechtenstein, Norway or Switzerland
• - Goods originating in the
• - the territories of Büsingen, Helgoland, Livigno, Ceuta or Melilla.

Obligations during the transition period October 1, 2023-December 31, 2025:

Reporting obligation to the Commission

- Importers or their representatives shall submit quarterly reports to the Commission on imports of CBAM products.

- The report shall include the following information: Quantity of imported goods, direct and indirect product emissions, carbon costs paid in the country of origin, and resulting offsets.

- Please note that the calculation method and reporting method for direct and indirect emissions will be determined later. They will be published in the Commission's Implementing Regulation once it is adopted.

- The annual reporting deadlines are January 31, April 30, July 31, and October 31.

Please note that the report may be submitted with insufficient data. If the missing information is not submitted by the deadline or if the entire report is missing, a penalty may follow and subsequent obtaining of the CBAM reporting certificate may be impeded.

How to prepare

• - Find out if your imported goods are CBAM goods covered by the CBAM regulation.
• - Make sure you get all the information you need from the manufacturer or seller of the goods for reporting during the transition period.
• - Make sure your company has an EORI business ID that you need to import and report CBAM goods.
• - Create a process for reporting.
• - Record import data to be reported starting October 1, 2023, and prepare to report to the EU Commission.
• - To avoid penalties, please report the data on time, then you can apply for a CBAM reporting certificate.
• - Prepare for after the transition period: acquire the CBAM reporting certificate as early as 2025.
• - Keep yourself informed about the situation.

Preparation of EU and national legislation

The regulation on the carbon adjustment mechanism, approved by the European Parliament and the Council, was published in the Official Journal of the EU on May 16, 2023; it entered into force on May 17, 2023.

In August 2023, the EU Commission adopted detailed reporting requirements for the transitional period of the CO2 limit adjustment system.

Importers of iron and steel products that have been processed in a third country must provide proof that the materials and inputs used do not originate in Russia. Otherwise, these goods are also subject to the import embargo.

Proof must be provided if the customs office requires it in an individual case. In addition to the so-called Mill Test Certificates proposed by the Commission of the European Union, invoices, delivery bills, quality certificates, long-term supplier declarations, calculation and production documents, customs documents of the exporting country, business correspondence, production descriptions, declarations of the manufacturer or exclusion clauses in purchase contracts, which show the non-Russian origin of the input products, can be recognized as suitable proof documents.

For a detailed list of all metal products affected by the import ban, please click here: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=OJ:L:2023:159I:FULL (ANNEX XVII)

Achtergrond:

Bij invoering van het UCC (Union Customs Code) op 1 mei 2016, is opgenomen dat alle communicatie digitaal dient plaats te vinden en dat de aangiftes in lijn moeten zijn met het WCO-model (Word Customs Organization).

De huidige systemen van de douane voldoen niet meer aan alle voorwaarden die daarin zijn gesteld en heeft de douane besloten om over te gaan tot de invoering van DMS 4.0.

De Nederlandse Douane zal stapsgewijs in 2023 haar bestaande aangiftesystemen (AGS, GPA en SPA) omzetten naar het nieuwe Douaneaangiften Management Systeem (DMS). Deze aanpassing heeft gevolgen voor bedrijven die goederen importeren of exporteren van of naar landen buiten de Europese Unie. Doel van dit nieuwe EU-datamodel is dat de verschillende diensten van de lidstaten beter met elkaar kunnen communiceren. Ook Gerlach zal moeten overgaan op het nieuwe DMS.

Wat betekent dit voor u:

Concreet betekent dit dat er meer informatie en andere data in de aangifte moet worden vermeld.

Wij zullen u, indien van toepassing, om additionele informatie vragen om de aangifte correct te kunnen verwerken.

De aangever, Gerlach of logistiekdienstverleners, zullen in DMS zelf de aangifte moeten corrigeren nadat de Douane bij een controle bevindingen heeft geconstateerd, iets wat nu nog door de douanebeambte wordt gedaan. Dit houdt concreet in dat vanaf de introductie van DMS wij contact met u zullen opnemen indien de aangifte gegevens op ‘te corrigeren’ valt on de juiste aangifte gegevens te achterhalen. Goederen worden pas vrijgegeven als de ‘gecorrigeerde’ aangifte volledig is verwerkt door de douane. De implementatie zal (waarschijnlijk) uiterlijk voor 30 juni 2023 gerealiseerd moeten zijn (na deze datum mogen er geen AGS aangiftes verstuurd, of maandaangiftes op papier of dvd ingeleverd worden).

Andere aangiftes zoals T2L/T2LF zullen in een later stadium maar uiterlijk eind 2024 overgaan op een vorm van digitaal indienen.

U kunt er zeker van zijn dat Gerlach op tijd klaar is met de implementatie van het nieuwe DMS zodat u de service blijft houden die u van ons gewend bent.

Meer informatie:

Voor meer informatie neemt u contact op met uw contact persoon bij Gerlach en voor uitgebreide en meest recente informatie verwijzen wij u naar de site van de douane. Te vinden op: www.douane.nl/dms

Gerlach moves to new mandatory DMS System (Customs Declaration Management System)

Background:

When the UCC (Union Customs Code) was introduced on May 1, 2016, it was included that all communications should be digital and that declarations should be in line with the WCO (Word Customs Organization) model.
Customs’ current systems no longer meet all the conditions set therein and Customs has decided to move to the implementation of DMS 4.0.
Dutch Customs will gradually convert its existing declaration systems (AGS, GPA and SPA) to the new Customs Declaration Management System (DMS) in 2023. This change will affect companies that import or export goods from or to countries outside the European Union. The purpose of this new EU data model is to allow the various member state services to communicate better with each other. Gerlach will also have to switch to the new DMS.

What does this mean for you:

Specifically, it means that more information and other data must be included in the declaration.
If applicable, we will ask you for additional information in order to process the declaration correctly.
The declarant, Gerlach or logistics service providers, will have to correct the declaration in DMS themselves after Customs has identified findings during an inspection, something that is currently still done by the customs officer. In concrete terms, this means that from the introduction of DMS we will contact you if the declaration data can be ‘corrected’ in order to retrieve the correct declaration data. Goods will not be released until the ‘corrected’ declaration has been fully processed by Customs. The implementation will (probably) have to be realized before June 30, 2023 at the latest (after this date, no AGS declarations may be sent, or monthly declarations on paper or DVD submitted).
Other declarations such as T2L/T2LF will transition at a later stage but no later than the end of 2024 move to some form of digital filing.
You can rest assured that Gerlach will complete the implementation of the new DMS in time for you to continue to receive the service you have come to expect from us.

More information:

For more information please contact your contact person at Gerlach and for comprehensive and latest information please refer to the customs site.

The list of dual-use items is updated regularly to ensure compliance with international obligations.

Background

The original EU dual-use regulation had entered into force on September 9, 2021.