Customs Compliance & Risk Management

Dear Reader,

The Union Customs Code turned ten in May. A decade after it came into effect, now is the perfect time to reflect on the UCC's achievements and shortcomings, and to consider the lessons it offers for the new EU customs legislation expected soon. We open this issue with that reflection.

Many of the challenges and developments that the UCC and other customs-enforced rules must now accommodate were barely imaginable when they were drafted. The circular economy is a clear example of this: as businesses move towards reuse, repair, refurbishment and remanufacturing, rules designed for a linear economy are being put to the test in unforeseen ways. This issue features two articles that address this issue. One examines worn clothing that meets the change-in-tariff-heading rule yet may still be denied preferential treatment under the EU-UK TCA. The other explains why remanufactured goods often become stuck at the border, as they do not fit into the “new” or “used” categories.

The concept of origin runs through many of this issue’s themes. You will find an overview of, and practical recommendations on, the long-awaited EU-Mercosur Agreement, which opens significant new trade opportunities but also raises questions about how preferential origin is established and proven. On a related note, we outline the differences between FTAs and GSP schemes, as well as the challenges of cumulation – a topic that is becoming increasingly relevant, given the growing number of EU FTAs and the new GSP due to take effect in 2027.

Customs valuation also continues to develop through the courts. In this article, we examine how recent CJEU case law is reshaping the fallback method, including the circumstances in which export prices received from a third country can be used to value goods. We also consider another court ruling on freight responsibility.

Our regular news sections provide an overview of the latest customs and trade developments in the EU, the UK, and Ukraine. Further topics include focused analyses of the 20th package of sanctions against Russia and practical guidance on tariff inversion strategies for managing customs duties.

As always, our aim is to help businesses essential to both the linear and circular economies avoid customs-related losses and take full advantage of available simplifications and preferences.

We wish you an insightful and rewarding read.

Sincerely,
Dr Ilona Mishchenko,
Member of the Editorial Board