The Economic Partnership Agreement (CEPA) between the EFTA States (Switzerland, Iceland, Liechtenstein and Norway) and Indonesia entered into force on 1 November. It is intended to further expand trade relations between the partners.

According to EFTA, the agreement will give EFTA countries access to export products such as fish and marine products, agricultural and food industry products, industrial and technical products, machinery and watches, as well as chemicals and pharmaceuticals. The CEPA is also intended to promote trade in services, e.g. for energy-related services, telecommunication services, the financial industry or through access for maintenance personnel. It also provides an improved framework for cross-border investment.

Sustainable development is a special focus. The agreement includes commitments by the contracting parties in the areas of environmental protection, fundamental rights and the sustainable management of forest resources and vegetable oil.

Changes in customs law

For Switzerland, the agreement brings about a decisive change in terms of customs clearance: Indonesia will no longer be considered a developing country once it enters into force. As a result, in future preferential imports into Switzerland will no longer require the Form A or the declaration of origin on the invoice (GSP agreement), but only the declaration of origin under this free trade agreement in order to benefit from preferential treatment (preferential tariff treatment).

According to EFTA, trade in goods between the EFTA States and Indonesia amounted to more than €1.1 billion in 2020. The EFTA States exported goods worth €628 million. For imports, this value amounted to 518 million euros.

More information on the significance of the agreement for Switzerland can be found on the website of the State Secretariat for Economic Affairs.

Accordingly, Zimbabwe has been using the Registered Exporter (REX) system for documentation of origin for preferential exports from Zimbabwe since 1 July 2021. Preferential certificates are issued exclusively by the exporter within the framework of self-certification. A transitional arrangement granted by the EU Commission ended on 26 September 2021, meaning that the following TARIC document codes must now be declared in the atlas when applying for preferential tariff treatment:

The previously admissible proofs of preference – movement certificate EUR.1 (TARIC document code N954) and invoice declaration issued by an approved exporter – may no longer be recognised for preferential tariff treatment as of 27 September 2021.

Comprehensive agreement

The modernised Free Trade Agreement between the EFTA States and Turkey covers a comprehensive scope. For example, Turkey has granted Switzerland new trade concessions for Swiss imports of cheese, meat preparations, fruit juices, coffee, tobacco, chocolate, biscuits, muesli and certain baby foods.

The provisions in the chapter on trade and sustainable development establish a common frame of reference, and the contracting parties undertake to comply with it in their preferential economic relations in such a way that the economic objectives pursued by the free trade agreements are consistent with their objectives in the area of environmental protection and labour rights. Institutional mechanisms are provided for to verify the correct implementation of these provisions.

The modernised free trade agreement with Turkey was signed on 25 June 2018 and entered into force on 1 October 2021.

The European Free Trade Association (EFTA, or in French: Association européenne de libre-échange, AELE) was founded in 1960 by originally seven countries. Today’s members are Switzerland, Norway, Liechtenstein and Iceland.

Felix Zeller: I started my training as a forwarding agent at DHL Freight in Maintal in 2011 and then the opportunity arose through a contact to start at Gerlach. In the meantime, I completed a degree in business administration.

When I started at Gerlach, the customs issue was completely new to me. I had had little contact with customs before. Through experienced colleagues and according to the motto “learning by doing”, I was able to acquire the knowledge.

Today, I am the head of customs clearance at the Frankfurt/Main location, and at the same time I train apprentices here at our branch.

Gerlach: What do you like about your work at Gerlach and especially in the customs department?

Felix: In the area of logistics and customs, you experience trade at first hand. And above all, you come into contact with many current topics.

Last year, for example, in connection with the pandemic, we took over the import of masks. Or I remember cases and exports of dual-use goods for the German armed forces. Those were very complex procedures.

At Gerlach, I also see myself to some extent as a translator between the customers and the customs authorities. Often, for example, the clients don’t know what customs consequences their handling entails. Terms and procedures such as inward and outward processing, for example, are not known to everyone. You have to listen very carefully and help the customer choose the right procedures.

Gerlach: Why do you recommend that young people start working for customs?

Felix: If you want to do an apprenticeship in the field of forwarding and logistics services, customs is certainly demanding from a technical point of view. It is the supreme discipline within logistics – I would say. And you can’t do without customs. All large companies operate globally today.

If you choose Gerlach and customs as your focus, I see many opportunities for development. De facto, customs experts are rare on the market. In addition, we as Gerlach are internationally active and are looking for professionals with customs knowledge in many countries.

The important thing is to enjoy the subject and be open to it. The rest you learn as you go along.

Mexico is an important market for European and especially German companies. In 2020, the German-Mexican trade volume amounted to 19.1 billion euros, according to the Federal Ministry of Economics and Technology (BMWi). Mexico thus remains the most important recipient country of German exports in Latin America.

What was negotiated – details on the modernised agreement

First things first: With the modernisation of the existing trade agreement from the year 2000, the EU and Mexico have agreed to reduce further tariffs. For example, Mexico’s existing high tariffs on agricultural products are to be phased out. This means that under the modernised EU-Mexico Agreement, almost all trade in goods between the EU and Mexico will be duty-free in the future. This will create new export opportunities for high-value food and beverages, as well as EU exports from other sectors.

The new agreement will also introduce new rules regarding customs clearance to simplify and speed up “paperwork” and goods checks at Mexican customs.

The EUR.1 movement certificate used up to now will be abolished. In future, only the declaration of origin on the invoice or other commercial document will count as proof of preference. For consignments of preferential goods with a value of more than 6,000 euros, these may only be made in the EU by Registered Exporters (REX). Existing REX registrations (for example for Canada or Japan) can be used for Mexico. The authorisation as an approved exporter no longer applies to Mexico.

In Mexico, only exporters authorised by the local authorities may issue declarations of origin for consignments of preferential goods worth more than 6,000 euros.

Gerlach Zolldienste is happy to support companies in the process of obtaining “Registered Exporter (REX)” status. “We advise our customers and all companies in general not to miss out on these export opportunities arising from the modernisation of the EU-Mexico Agreement. With our extensive customs experience and expertise, we are here to help them not only with the REX procedure, but with all customs-related issues. Please feel free to contact us at any time,” says Thomas Weins, VP Customs & CEO Gerlach Germany.

In addition to trade in goods, the new agreement also offers new opportunities for the export of services in areas such as financial services, transport, e-commerce and telecommunications. It is also the first agreement between the EU and a Latin American country that also protects investments, and in which anti-corruption provisions and measures against bribery and money laundering have been agreed. In addition, 340 geographical indications (GIs) of European regional food and drink products will be protected in the Mexican market.

More details on the EU-Mexico agreement on the modernisation of the trade part of the Global Agreement can be found on the homepage of the European Commission “In focus EU-Mexico Trade Agreement“.

Stroke of fate becomes a new opportunity

Only 5 years after the company was founded, a catastrophe followed: Jean Arnaud Gerlach, his eldest son and also Gerlach’s business partner, the Jewish merchant Jacob Baruch, died shortly after each other. The only one in the family who was now able to continue the business was Arnaud, Gerlach’s youngest son, who attended a commercial college in Amsterdam. He had no choice but to drop out of his studies at the age of 17 and continue the business. Arnaud led Gerlach Zolldienste to many more successes and consistently drove expansion. After his death in 1929, his wife and two other business partners took over the management of the company, which by then already employed 200 people.

Reconstruction in the post-war period

The Second World War was a disaster, both in human and business terms. After the war, the two sons Arnaud (A.J.) and Willem (W.H.) took over the business and had to do a lot of reconstruction work. Only 16 employees had survived, 50% of the buildings were destroyed or damaged. But Gerlach started all over again and continued to expand – a short time later the company was represented in the Netherlands, Germany, Belgium and Austria.

Today, the company still operates under the Gerlach name as a leading neutral provider of customs services in Europe. The company’s 140th anniversary was celebrated yesterday by the employees at a virtual event.

On the occasion of this great event, Gerlach has also published a new image video. Feel free to have a look here:

GERLACH is the leading neutral provider of customs services in Europe. With a network of 170 offices in 27 European countries and more than 1000 customs experts, the company covers the entire spectrum of customs services: From import, export and transit customs clearance to complex customs solutions, supply chain assessment and customs consultancy. A development that has only been possible since 1881 thanks to Gerlach’s employees. They are the ones who have ensured that the company has always stood for expertise in the field of customs, and who work hard and give their best every day.

Just like Jean Arnaud Corneille Gerlach once did, who turned a shipwreck into the leading customs service provider in Europe with great dedication and absolute customer orientation. And the company is also very well equipped for the future: Gerlach is consistently pushing ahead with digitalisation and thus continues to keep its finger on the pulse for its customers.