French authorities are changing the conditions of screening for sealed containers transported by air which includes drums, cans and jerrycans. This affects any goods transiting through Charles de Gaulle HUB in France.

As of January 1, 2025 screening of containers of more than 5 litres by Explosive Detection Dogs (EDD) will no longer be possible in France.

A transition period is in place (from April 1, 2024 to December 31, 2024), during which EDD screening is authorised, to give customers time to find alternative solutions. However, there are steps that customers need to take now as a prerequisite to benefit from the transition period.

French authorities have created a questionnaire for exporters of drums and other airtight sealed containers. Exporters must complete the questionnaire and send it to the French authorities will then notify receipt of the questionnaire to exporters and this notification receipt must be sent to the FedEx Aviation Security team in France (fr-avsec@corp.ds.fedex.com). Upon receipt of the questionnaire, exporters will be authorized to continue shipping containers by air whatever their capacity until December 31, 2024.

In the absence of the notification of receipt of the questionnaire by French authorities, it is no longer possible for customers to ship these types of packaging containers of more than 25 litres by air from France from April 1, 2024. For containers between 5 and 25 litres they can be screened by XR equipment unless they are too dense.

Exporters have several options to continue shipping drums by air from January 1, 2025:

• Initiate the process during the transition period to become a Known Consignor (KC).
• Modify the packaging: only containers of a capacity between 5 and 25 litres that can be screened by XR equipment will be accepted from January 1, 2025. Drums will be screened individually, and dense drums will be refused.

Any business sending goods packed in hermetically sealed containers of more than 5 litres transiting in France or departing from France.

For transiting cargo the restrictions will only relate to barrels that need to be screened or re-screened in France.

We strongly encourage exporters to send in the questionnaire to French authorities to benefit from the transitional period and if necessary to apply for known consignor status.

Once French authorities have sent the notification of receipt of the questionnaire to customers, the document must be sent to the FedEx Aviation Security team in France (fr-avsec@corp.ds.fedex.com).

The European Union CBAM Regulation came into force in 2023.

If you are an importer of CBAM goods into the territory of the European Union and you are established, you have a reporting obligation under the CBAM Regulation. FedEx will not take on this responsibility on an importer’s behalf.

The European Union (EU) has introduced a Carbon Border Adjustment Mechanism (CBAM) as part of its objective to reduce greenhouse gas (GHG) emissions by at least 55% by 2030 (compared to 1990 emission levels). It aims to prevent the risk of carbon leakage to fight climate change.

Carbon leakage occurs when companies based in the European Union (EU) move carbon-intensive production abroad to countries with less stringent climate policies, or when EU products get replaced by more carbon-intensive imports.

CBAM aims to ensure the carbon price of imports of certain goods into the EU is equivalent to the carbon price of EU domestic production. As a result, importers of the goods in scope (see below) have to comply with specific obligations, including the reporting of information about the emissions embedded in the transported goods, and at a certain stage, the purchasing of certificates to account for these emissions.

The mechanism will initially apply only to imports of a selected number of goods and selected precursors at high risk of carbon leakage, including:

• iron
• steel
• cement
• fertilisers
• aluminium
• hydrogen
• electricity generation

At a later stage, the EU will evaluate how the CBAM is working and whether to extend its scope to more products and services.

More details can be found on page 20 of the European Commission Guidance Document.

A transitional phase runs from October 1, 2023, until December 31, 2025. During that time, importers of CBAM goods into the EU are required to submit a report quarterly via the CBAM Transitional Registry managed by the European Commission.

The required reporting includes:

• the total quantity of each type of goods
• the actual total embedded emissions in tonnes of CO2e emissions per tonne (except for electricity)
• the total indirect emissions (calculated in accordance with the calculation method defined by implementing act)
• the carbon price already due in a non-EU country of origin for the embedded emissions in the imported goods, if any.

From January 1, 2026, onwards, importers will also have to account for the emissions embedded in the relevant imported goods by purchasing CBAM certificates which will be purchased for every CBAM good(s) imported into the EU. There will be a phase-in with increasing coverage of embedded emissions by the CBAM obligation from 2026. The full embedded emissions will only be covered from 2034 onwards.

Once the carbon pricing phase starts, for covered products in the cement, fertilisers, and electricity sectors, both direct and indirect emissions must be priced, while for covered products in the iron, steel, aluminium, and hydrogen sectors, only direct emissions must be priced.

Importers of CBAM goods into the customs territory of the EU should raise their CBAM attention and get prepared. It is their responsibility to comply with all obligations resulting from the CBAM Regulation.

Importers might be obliged to submit a report quarterly via the CBAM Transitional Registry managed by the European Commission. If that is the case, as an immediate first step they will need to register before they can submit the required details (becoming the “authorized CBAM declarant”).

When clearing CBAM goods for import as customs representative, FedEx will not carry out CBAM reporting on behalf of importers who are established in the customs territory of the EU.

We recommend that importers into the EU take the following actions now:

• Importer must first register to enable them to submit their reports
• Familiarize yourself with details and processes via the EU Commission’s CBAM dedicated page: Carbon Border Adjustment Mechanism (europa.eu)
• Review the origin and sourcing patterns of in-scope products to determine possibilities for exemptions or reductions under CBAM
• Determine data availability for the required reporting
• Check if you can improve your business and contact suppliers to reduce carbon emissions and create a more sustainable, environmentally friendly supply chain

To reduce the trade barriers and strengthen international competitiveness of Swiss companies, the Federal Council adopted a package of import facilitation measures, including the lifting of tariffs on industrial goods.

At the same time, the increase of current Swiss VAT rates for all products has been announced.

Lifting of tariffs on industrial goods:

From January 1, 2024, the tariffs on industrial goods imported into Switzerland will be lifted.

The lifting of the industrial tariffs will apply to goods under Chapters 25-97 of the Swiss Customs Tariff, with the exception of agricultural and fishery products falling into Chapters 35 and 38.

Additionally, the tariff structure for industrial products will be streamlined by removing the highly detailed breakdown currently used to levy differentiated customs duties and significantly reducing the number of existing tariff headings, which will further reduce the administrative burden.

Changes to VAT rates:

From January 1, 2024, new VAT rates will apply in Switzerland as follows:

The removal of tariffs and simplification of the Swiss Customs Tariff for industrial goods does not remove the requirement to declare and submit all relevant documents i.e., commercial invoices, authorizations etc.

All import declarations will still have to be submitted with a correct Harmonized System (HS) code for the goods imported. The nomenclature of the customs tariff will still dictate the rules of origin, levying of additional charges, and the enforcement of numerous requirements, e.g., licensing and certifications requirements.

When importing industrial products, that at the time of import are expected to remain or be consumed in Switzerland, application of Free Trade Agreements (FTAs) or the Generalised System of Preferences (GSP) will no longer be required, as non- preferential duty rates will already be set to zero.

When importing merchandise or input materials for further processing and re- export from Switzerland with application of origin cumulation, supplier’s proof of preferential origin will be required at the time of import to Switzerland.

As it is not always clear at the time of import if the product will remain in Switzerland or if it will be re- exported, it is highly recommended that a proof of preferential origin is issued for all shipments to Switzerland.

Please also be prepared for the application of the new, higher VAT rates.

State Secretariat for Economic Affairs (SECO)
https://www.seco.admin.ch/seco/en/home/Aussenwirtschaftspolitik_Wirtschaftliche_Zusammenarbeit/Wirtschaftsbeziehungen/warenhandel/aufhebung_industriezoelle.html

Federal Tax Administration (FTA)
https://www.estv.admin.ch/estv/en/home/value-added-tax/vat-rates-switzerland.html

On January 31, 2020, the United Kingdom left the European Union and began trading on its own terms. As a result of Brexit, goods arriving in GB from the EU and the other way around must follow import, export and transit procedures. On July 13, 2020, UK Government issued the first Border Operating Model explaining how the new border with the EU will work. An essential part of this document was a chapter on rules for importing SPS products. Planned changes were meant to be introduced in stages beginning in January 2021. Due to multiple barriers, introduction of most new controls was postponed, and the government started working on a new Border Target Operating Model.

On August 29, 2023, following extensive engagement with industry, the UK Government published the Border Target Operating Model (BTOM) detailing the final set of planned controls on EU imports. The new model is designed to set out to importers, the border industry, and wider stakeholders, the processes they will need to go through in order to import goods once BTOM is implemented.

In terms of SPS goods, BTOM provides for simplified, risk-based system of biosecurity controls for imports into GB that will be:

• Tailored to the specific risks faced by the UK’s Agri-food industry and natural environment
• Implemented in a phased approach
• Providing certainty for businesses

Animals, animal products, plants, and plant products subject to biosecurity import controls will be divided into three risk categories:

• High risk
• Medium risk
• Low risk

Specific documents and inspections will be required depending on which category imported goods fall into.

The new milestones for introduction of specific documentary and physical controls, are as follows:

• 31 January 2024:
  • The introduction of health certification on imports of medium risk animal products, plants, plant products and high- risk food and feed of non- animal origin from the EU.
  • The removal of pre notification requirements for low-risk plant and plant products from the EU.
• 30 April 2024:
  • The introduction of documentary and risk-based identity and physical checks on medium risk animal products, plants, plant products and high-risk food and feed of non-animal origin from the EU.
  • Existing inspections of high-risk plants/plant products from the EU will move from destination to Border Control Posts.
  • Authorities will also begin to simplify imports from non-EU countries. This will include the removal of health certification and routine checks on low-risk animal products, plants, plant products from non-EU countries as well as reduction in physical and identity check levels on medium-risk animal products from non-EU countries.

EU exporters of any SPS products must check which risk category their goods fall into and provide relevant documentation and information to their GB importer and FedEx. Please refer to useful resources section.

Commercial invoices accompanying any SPS products must contain detailed goods description, Harmonized System (HS) codes, and indication of the risk category they fall into. Failing to include this information on the commercial invoice may result in shipment delays.

As clearly stated in FedEx’s Terms and Conditions of Carriage, the sender is responsible at their own expense for making sure goods shipped internationally are acceptable for entry into the destination country under the applicable laws and complying with all licensing or permitting requirements when applicable. FedEx reserves the right at FedEx’s sole discretion to charge sender with any penalties, fines, damages or other costs or expenses, including storage fees, resulting from an enforcement action by any competent government authority, or by sender’s failure to comply with the obligations hereby laid out.

There is no change to the current process for importing SPS goods from the EU to Northern Ireland.

Reminder: All products of animal and plant origin must travel on Priority services.

The Border Target Operating Model
https://www.gov.uk/government/publications/the-border-target-operating-model-august-2023

Summary table of risk categories for animal product imports from the EU to GB & searchable list with HS codes
https://www.gov.uk/government/publications/risk-categories-for-animal-and-animal-product-imports-to-great-britain

Summary table of risk categories for plants and plant products
https://planthealthportal.defra.gov.uk/trade/imports/target-operating-model-tom/tom-risk-categorisations/

Model Health Certificates for exports of live animals and animal products to Great Britain
https://www.gov.uk/government/collections/health-certificates-for-animal-and-animal-product-imports-to-great-britain

From January 1, 2024, all non-document shipments, outside of Value-Added Tax on e-commerce (VOEC) scheme imported into Norway will require an individual customs declaration and payment of duties and taxes regardless of their value.

At the same time, a number of measures will be introduced to strengthen the VOEC scheme.

VAT on e-commerce (VOEC) is a voluntary, simplified VAT scheme for foreign suppliers and marketplaces selling low value goods directly to consumers in Norway. The low value threshold for the VOEC scheme is set at NOK 3000.00 (currently around EUR 256.00)* excluding freight and insurance cost and any other identifiable taxes and charges.

Suppliers of low value Business to Consumer (B2C) shipments sending their goods under VOEC scheme are obliged to calculate and collect Norwegian VAT at the time of sale and account for it on a quarterly basis.

The NOK 3000.00 limit of the VOEC scheme applies per item, not per invoice or a transaction. Several products in the same shipment, with individual values of below NOK 3000.00 can still be declared under VOEC even if their combined value exceeds the value threshold.

If the value of any individual item in the shipment exceeds the NOK 3000.00 threshold, the whole consignment will not qualify for the VOEC scheme. Not all types of goods can be declared under the VOEC scheme.

The following goods are excluded:

• All types of food and beverages, including nutritional and dietary supplements that are not medicinal drugs,* *
• All goods subject to excise duties,
• Illegal goods and goods restricted under the Norwegian legislation.

*NOK to EUR exchange rate will be changing in time, so shippers are advised to check it when booking the shipment.

**Special rules apply to the import of medicinal drugs.

Import duty is not chargeable on shipments under VOEC scheme.

Foreign suppliers registered for VOEC sending B2C goods with value not exceeding NOK 3000.00 to Norway must calculate and charge the Norwegian VAT at the time of sale, and account for it to Norwegian Tax Authorities quarterly. As of January 1, 2024, senders of VOEC shipments will have to declare their VOEC identification number in the ‘Tax ID’ field of their FedEx or TNT shipping application so that it is automatically populated on the Airway Bill (AWB) and can be declared to Norwegian authorities at importation.

Missing VOEC number on the AWB may result in shipment delays and double taxation, as the Norwegian importer will be charged VAT at importation.

VAT on E- commerce- VOEC
https://www.skatteetaten.no/en/business-and-organisation/vat-and-duties/vat/foreign/e-commerce-voec/

Sending goods under the VOEC scheme
https://www.skatteetaten.no/en/business-and-organisation/vat-and-duties/vat/foreign/e-commerce-voec/sending-goods-under-the-voec-scheme/

VOEC: New solution for VOEC and abolishment of the temporary declaration exemption
https://www.skatteetaten.no/en/business-and-organisation/vat-and-duties/vat/foreign/e-commerce-voec/new-voec/

In response to the conflict in Ukraine that began in February 2022, the European Union (EU), United States (U.S.), United Kingdom (UK) and other countries globally have initiated comprehensive sanctions against Russia and Belarus.

While all FedEx services in Belarus and Russia continue to be suspended until further notice without exception, it is important to be aware of some of the newly adopted restrictive measures.

The U.S., EU and other countries in the region including UK, Norway and Switzerland have issued an import prohibition on certain products originating in Russia (‘’made in’’).

Additionally, as of September 30, 2023, the EU, UK, Norway and Switzerland have prohibited the import of iron and steel products processed in a third country incorporating iron and steel products originating in Russia.

The EU is taking a phased approach for inputs of certain HS codes falling within this prohibition:

• From September 30, 2023: products of iron and steel of Annex XVII containing inputs of iron and steel of the list other than those of CN codes 7207 11,7207 12 10, or 7224 90. This is, iron and steel products with inputs made in Russia falling under these three codes are not prohibited yet.
• From April 1, 2024: iron and steel products with inputs made in Russia falling under CN code 7207 11 are prohibited; and
• From October 1, 2024: iron and steel products with inputs made in Russia falling under CN codes 7207 12 10 or 7224 90 are prohibited.

The UK is not offering a transitional period and all HS codes in scope are included from September 30.

At importation of such iron and steel products, importers must provide evidence of the country of origin of the iron and steel inputs used for the processing of the product in a third country. The purpose is to confirm that the items or their inputs did not originate in Russia.

The approach of customs authorities on this requirement differs from country to country, and it is still subject to review and potential changes. Whereas some national customs authorities only accept the Mill Test Certificate (MTC), others will also accept alternative documents like certificates of origin or the sender’s statement included on the commercial documents relating to specific shipments.

For countries accepting a compliance declaration in the commercial invoice, a possible text to be provided is:

We hereby confirm that goods shipped with AWB _____________________are not subject to the prohibitions set out in Article 3g (1) (d) of Council Regulation (EU) 2023/1214 of 23 June 2023 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia's actions, which destabilize the situation in Ukraine, and no primary materials of Russian origin, as regulated here, are used.

Anyone in the EU, UK, Norway and Switzerland importing iron and steel products with HS codes in scope of the prohibition from anywhere in the world.

Importers must try to proactively work with their suppliers and ensure documentation accepted as evidence of origin by customs in their country is gathered and included at the time of booking the shipment. 

EU Resources:

Council Regulation (EU) 2023/1214 of 23 June 2023 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine.

UK Resources:

UK Sanctions relating to Russia Collection

Russia sanctions: guidance

The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2023

The Russia (Sanctions) (EU Exit) Regulations 2019

UK Guidance on 3rd country processed iron and steel measures (including specific scenarios and list of HS codes)

Information correct at time of publication (October 2023) but is subject to change by the customs authorities.

The UK GSP removes import duties from products coming into the UK market from vulnerable developing countries. It helps developing countries to alleviate poverty and create jobs based on international values and principles, including labor and human rights, environment and climate protection, and good governance.

UK GSP consist of 3 frameworks:

• Least Developed Countries Framework for countries that the United Nations (UN) classifies as Least Developed Countries. Imports from these countries have quota - free access and nil rates of import duty on all goods other than arms and ammunition.
• General Framework for countries classified by the World Bank as low-income and lower-middle income countries. Imports from these countries have reduced rates of import duty on certain goods.
• Enhanced Framework for countries classified by the World Bank as low-income and lower-middle income countries and those which are economically vulnerable due to a lack of export diversification and low level of integration with the international trading system. Imports from these countries have nil rate of import duty on certain goods.

On June 19, 2023, UK GSP will be replaced by the Developing Countries Trading Scheme (DCTS). The new scheme offers developing countries one of the most generous sets of trading preferences of any country in the world. The scheme demonstrates the UK’s commitment to building long term, mutually beneficial relationships with emerging economies that are home to more than 3.3 billion people.

The DCTS is a major milestone in growing free and fair trade with developing nations. It applies to 65 countries and offers lower tariffs and simpler rules of origin conditions for shipping to the UK. At the same time, it reduces costs for UK businesses which results in lower prices for consumers across variety of products.

The following countries who ship goods to the United Kingdom:

• Countries that the United Nations (UN) classifies as Least Developed Countries
• Countries classified by the World Bank as low-income and lower- middle income countries and those which are economically vulnerable due to a lack of export diversification and low level of integration with the international trading system

The proofs of origin under DCTS are almost the same as for UK GSP, with only one difference: origin declaration must refer to DTCS instead of GSP. Form A is still acceptable on the same template. Both proofs of origin must be completed by the exporter in the DCTS beneficiary country.

Waiver for formal proof of origin can be claimed if the following conditions are met:

• Total value of goods does not exceed GBP 1000.00
• The goods have been declared as meeting the conditions for benefiting from the Origin Regulations
• There is no doubt as to the veracity of that declaration

There will be a grace period to allow the use of UK GSP documents to claim preferences for goods that qualify for a preferential duty rate under UK GSP and DCTS. It will be available for qualifying goods for which a UK GSP proof of origin was issued before 19 June 2023, provided the goods are released to free circulation in the UK on or before 31 December 2023. The same grace period will apply to goods currently in a customs warehouse or in transit at the time that DCTS comes into force.

DCTS: government policy response
Developing Countries Trading Scheme: government policy response - GOV.UK (www.gov.uk)

Guidance- Trading with Developing Nations
Trading with developing nations - GOV.UK (www.gov.uk)

GSP Form A template
FORM A - GENERALIZED SYSTEM OF PREFERENCES - CERTIFICATE OF ORIGIN (Combined declaration and certificate) (publishing.service.gov.uk)

Origin Declaration guidance
https://www.gov.uk/guidance/using-an-origin-declaration-for-the-developing-countries-trading-scheme

In 2021, the European Union introduced a mandatory contribution for all Member States to encourage them to reduce non-recycled plastic packaging waste and stimulate Europe’s transition towards circular economy by implementing the European Plastic Strategy.

Some Member States will pay the contribution at a uniform rate of 0.8 EUR per kilogram of non-recycled plastic packaging waste from their own budget while others are working on implementing national systems to collect the tax from traders.

Importers of single-use plastic containers to Spain: From January 1, 2023, the additional Plastic Tax for single-use plastic containers applies at the rate of 0.45 EUR per kilogram of virgin plastic material contained in the plastic packaging products manufactured in Spain, acquired from another European Union Member State, or imported into Spain from outside of the European Union. 

The additional tax on single use plastic products is payable at the time of importation and the charged amount will be shown on the FedEx invoice under additional tax. 

Senders shipping any products falling in the scope of the additional Plastic Tax to Spain should provide the correct amount of virgin plastic contained in their product on their commercial invoices to avoid any errors in calculations. 

European Commission Website
https://ec.europa.eu/info/strategy/eu-budget/long-term-eu-budget/2021-2027/revenue/own-resources/plastics-own-resource_en

As of January 2, 2023, the import of pharmaceutical medicines from countries outside of the European Union in express parcels to private consumers in Cyrus is prohibited. 

Consequently, pharmaceutical medication items destined to an unauthorised recipient in Cyprus will either be returned back to the sender at their cost or seized by customs. 

Business to Consumer (B2C) and Consumer to Consumer (C2C): Shipments of pharmaceutical medicines are no longer accepted for import under any circumstances.

Registered suppliers sending commercial shipments destined to business recipients: Shipments are allowed for import, provided that the importing company holds a valid license from Cyprus Customs to import pharmaceutical medicines.

Refrain from sending pharmaceutical medication via our network to private individuals in Cyprus.

Please note that vitamins and food supplements are not classified as pharmaceutical medication. However, equally strict requirements apply to food and feed products imported into the European Union.

On 1 July 2022, new radiometric surveillance regulations have been introduced to the import of metallic materials (semi-finished or finished products) into Italy, based on the EU Council Directive 2013/59/ EURATOM laying down basic safety standards for protection against dangers arising from exposure to ionizing radiation.

Certain metallic products are subject to specialized checks that must be conducted by an authorized external body. A certificate of inspection must be provided before the import customs declaration can be issued. The certificate of the radiometric controls can be issued in a non-EU country provided that a mutual recognition with this country is in place. Currently the mutual recognition agreement is only held with Switzerland.

Radiometric monitoring is the inspection of scrap, semi-finished, and all other metal materials in order to detect radioactive anomalies. The full list of items and HS codes falling into this category is available here.

Radioactive measurements are taken near the external walls of a container with specific and very sensitive instruments, which are equipped with a probe that has a sodium iodide scintillator, in order to detect even the tiniest radioactive anomalies.

This Regulatory change affects importers of the listed finished metal products, semi-finished metal products and/ or scrap and other waste metal materials into Italy.

Each shipment must be inspected, there is no possibility for general authorization for traders importing the same type of products on regular basis.

Upon arrival of the shipment, FedEx will contact the receiver of the shipment indicating a third-party supplier who can provide radiometric inspection and issue the relevant certificate. If the receiver accepts the suggested solution, they will be contacted by the supplier to proceed with payment and inspection; should the receiver refuse, the shipment will be returned to the sender, at the cost of the customer.  The radiometric inspections can take place in all of FedEx’s clearance locations in Italy. The fee for the inspection is approximately EUR 170.00 per shipment and is payable by the importer directly to the inspecting company. FedEx is not involved in the contracting or payment collection.

In order to optimize costs related to radiometric inspection, we recommend that customers import these commodity categories in one single shipment.

If you have any questions, please contact your Sales Representative.

HM Revenue and Customs (HMRC) are introducing a new customs system. Customs Declaration Service (CDS) will replace Customs Handling Import and Export Freight (CHIEF) system and will become the UK single customs platform after 31 March 2023.

HMRC have stated that CDS is a secure platform with flexibility to grow in line with the government’s ambitious trade plans to have the world’s most efficient border by 2025.

The existing CHIEF system will close in two phases:

Phase one: On 30 September 2022 CHIEF will close for import declarations

Phase two: On 31 March 2023 CHIEF will close for export declarations

We can confirm that FedEx and TNT are updating our own clearance systems to be fully compatible with CDS.

Any UK business that imports and/ or exports their goods and all parties submitting import and/ or export declarations.

FedEx and TNT will continue to carry out customs declarations on our customers behalf using CDS and services will continue as they are. However, for FedEx and TNT to continue to make declarations on your behalf using your deferment account, HMRC require you to complete a new CDS Direct Debit Instruction for your payments to be successful. This is because CDS uses a different method to CHIEF.

If you have or want to set up a UK deferment account, you will need to Subscribe to the Customs Declaration Service - GOV.UK (www.gov.uk) and follow the ‘get access’ instructions in order to proceed to Set up a Direct Debit for a duty deferment account on the Customs Declaration Service - GOV.UK (www.gov.uk)

We encourage all UK customers to take action now ahead of the phase 1 implementation date.

In addition, you may be familiar with the Single Administrative Document, referred to as a SAD form with CHIEF. As CDS is paperless, FedEx and TNT will provide you with the necessary data in a slightly different format to the SAD form, known as Import Data Summary (IDS).

Please visit the HMRC website for more information and review the Key differences between CHIEF and the Customs Declaration Service - GOV.UK (www.gov.uk)

The World Custom Organisation’s (WCO) Harmonized System (HS) is used for the international classification of goods when they are being traded across borders. It is applied in more than 200 states, countries and territories worldwide, meaning 98% of the world's trade is classified using the HS nomenclature. It is revised every 5 years, and HS 2022, the seventh edition of the Harmonized System nomenclature, will come into effect from January 1, 2022.

Commodity codes are a key requirement for the completion of customs processes such as completing declarations and are used to determine what duties and other taxes may be payable when goods are traded across borders. It is essential they are correct as product misclassification could lead to customs delays or payment of higher duties and taxes.

The new HS 2022 edition has a total of 351 amendments covering a wide range of goods.

HS 2022 recognises new product streams and addresses environmental and social issues of global concern. Some examples include:

• Electrical and electronic waste (e-waste): HS 2022 includes specific provisions for its classification to assist countries in their work under the Basel Convention.
• Nicotine-based products and unmanned aerial vehicles (UAVs, also known as drones): New provisions simplify the classification of these products.
• Smartphones: Gain their own subheadings.
• Glass fibres and metal-forming machinery: Major reconfigurations have been undertaken because the current subheadings do not effectively represent technological advances in these sectors.
• Multi-purpose intermediate assemblies: there will be more products classified in their own right, such as flat panel display modules.

Goods specifically controlled under various Conventions have also been updated and many new subheadings have been created for dual-use goods.

Changes have also been made to put a greater focus on health and safety. The recognition of the dangers of delays in the deployment of tools for the rapid diagnosis of infectious diseases in outbreaks has led to changes to the provisions for such diagnostic kits to simplify classification. New provisions for placebos and clinical trial kits for medical research to enable classification without information on the ingredients in a placebo will assist in facilitating cross-border medical research. Cell cultures and cell therapy are among the product classes that have gained new and specific provisions.

Given the wide scope of the changes, there are many important changes not mentioned here so it is therefore essential that any business shipping goods across borders review the changes to see if their goods are impacted.

You should review the HS 2022 changes to determine if any of these changes impact your product classifications. Additionally, importers should perform a complete product database review to confirm their existing product classifications are valid for when HS 2022 goes into effect.

The WCO has published 2017 to 2022 correlation tables that can be used to check if the current HS code will change and, if so, where the relevant goods will be classified.

The WCO standardizes HS codes at the six-digit level. That six-digit code is the international standard for all participating countries. The first two digits indicate the HS chapter heading, the second two identify the product heading, and third two identify the specific subheading or subcategory of a given product.

Most countries accept at the six-digit level but there are exceptions and some countries require additional digits. For example, the United States uses a 10-digit code to classify products for export, known as a Schedule B number. In India, 8 digits are used, called the ITC number (Indian Tariff Code number).

It is essential to check the country you are shipping to and from to see what is required.

HS Nomenclature 2022 Edition

Amendments to the Nomenclature

WCO correlation tables

Use of the import VAT reverse charge is compulsory for businesses importing into France with effect January 1, 2022. In addition, the management and collection of VAT on imports has been transferred from French Customs to the French Tax Authority - Directorate of Public Finance (DGFiP).

The declaration and payment of import VAT will be made in the French VAT return instead of the customs declaration. This deferral to the VAT return is known as a ‘reverse charge’. This reverse charge means that the import VAT is no longer paid at the point of importation.

As of January 1, 2022, if a business will act as the importer of record for an import of goods into France, then it is mandatory for that business to be registered for French VAT and to submit a French VAT return.

VAT registration in France can be done directly by businesses established in France or by businesses located in the EU or UK. Businesses not established in the EU or UK that wish to act as the importer of record for their goods will have to appoint a French tax representative to file the VAT registration application on their behalf.

FedEx customers shipping goods from outside of the EU to business customers in France should provide the French VAT registration number for the importer of record for the customs documentation.

Please note:

• The online French VAT return will be pre-filled automatically with the amount of import VAT based on the information previously declared to French Customs on the customs declaration.
• A web portal will be set up by French Customs to allow businesses to download monthly details of all their imports into France.
• The pre-filled VAT return will be available on the 14^th day of each month via French Customs’ online tax portal.
• The deadline for filing the VAT return will become the 24^th day of each month for all businesses liable for import VAT. 

The change applies to businesses that will be importer of record for goods entering France.

The customs declaration will now have to include the importer's French VAT number so you must include this information on the commercial invoice. If a business will be an importer and does not have a French VAT number, it should contact the French tax authority to register for VAT. For businesses based outside the EU, a fiscal representative may need to be appointed.

For importers that are businesses and do not possess a French VAT number or for private individuals, the import VAT will be collected at the time of import via the import declaration, as was the case before January 1, 2022.

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There will be changes coming into effect on January 1, 2022 with regards to imports of specified Sanitary and Phytosanitary (SPS) goods from the EU27 and European Economic Area (EEA) to GB.

Customers in the EU27 and EEA who send the following SPS goods to GB:

• Live animals;
• Germinal products;
• Products of animal origin (POAO) under safeguard measures;
• High risk animal by-products (ABP);
• High Risk Food or Feed not of animal origin (HRFNAO)
• All regulated plants and plant products.

From January 1, 2022:

From January 1, 2022, pre-notification of the import of products, animals, food, and feed system (IPAFFS) will be required. Our UK Import Clearance teams will complete the pre-notifications on behalf of GB importers.

For now, documentary checks have been postponed, and there will be no requirement for the goods to enter GB via an established point of entry as there will be no physical identity inspections. However, these checks will be introduced from July 1, 2022, together with the requirement for Export Health Certificates (EHCs). The EU exporter will have to provide a copy of the EHC to their UK importer prior to sending the goods.

Further changes in 2022:

In addition to IPAFFS pre-notification requirements, from July 1, 2022, all of the above mentioned types of goods will require a valid EHC or SPS Certificate in order to undergo documentary checks.

Beginning on July 1, 2022, all POAO and ABPs and all regulated plants and plant products will also have to enter GB via a point of entry with a specialized Border Control Post (BCP), even if the product is not subject to documentary checks, as per the following timetable:

• 1 July 2022 - All remaining regulated ABP and all meat and meat products;
• 1 September 2022 - All dairy products;
• 1 November 2022 - All remaining regulated products of animal origin, including composite products and fish products. 

If you are an EU exporter to GB, you must classify your goods correctly and provide specific goods descriptions on all commercial paperwork.

Please ensure that you provide the following information on your commercial documents or create an IPAFFS summary page:

• What type of animal product or goods you’re sending (i.e., POAO, ABP, HRFNAO etc.);
• Origin of the animal product or goods (which country it was produced, originated in);
• Commodity code;
• Commodity type;
• Species of the commodity;
• Commodity weight (kg);
• Reason for exporting consignment (i.e. internal market, transit, research, etc.);
• Consignment’s place of destination;
• Addresses and contact details for place of origin, importer and place of destination.

You should also start preparing for July 1, 2022 when you will be required to provide Export Health Certificates (EHC) for your goods before you ship them.

If you are sending marine-caught fish and some shellfish in addition you must ensure you include a validated Catch Certificate with your commercial paperwork.

If you are the GB importer and we contact you for clearance instructions, please provide all requested information in a timely manner.

If you decide to complete your IPAFFS pre-notification yourself, please ensure you inform us about your authorization number before the goods arrive in GB. In order to do so, please email us stating your air waybill (AWB) number in the subject field of the email and your authorization number in the email body. The email addresses to use are as follows:

• For FedEx shipments: stncustomsadmin@corp.ds.fedex.com
• For TNT shipments: GBTNTIPAFFS@fedex.com

Useful Resources

Import or move food and drink from the EU and Northern Ireland to Great Britain - GOV.UK (www.gov.uk)

Import or move composite products from the EU and Northern Ireland to Great Britain - GOV.UK (www.gov.uk)

Import of products, animals, food and feed system (IPAFFS) – GOV.UK (www.gov.uk)

HM Revenue Border Operating Model

The EU-Vietnam Free Trade Agreement (EVFTA) came into force on August 1, 2020. It will replace the EU’s Generalised System of Preferences (GSP) scheme for Vietnam.

Anyone importing or exporting between the EU and Vietnam, with goods of EU or Vietnam origin.

The EVFTA will:

• Eliminate the majority of customs duties immediately
• Phase out tariffs on the remainder of goods covering up to 99% of all trade by 2030
• Simplify and modernise customs and rules of origin procedures, cutting red tape and reducing costs for businesses
• Streamline technical and non-tariff barriers to trade which unnecessarily restrict business
• Establish a legal framework for trade through the EU-Vietnam Investment Protection Agreement (EVIPA), which guarantees the rights of businesses and consumers on both sides. This will come into effect at a later date.

Collectively, the agreements aim to promote sustainable development on both sides, for stronger employment, environmental, and human rights protection.

Vietnam is currently part of the EU’s GSP scheme and this will remain in place for up to two years. You can decide if you prefer to use the GSP or FTA for this period, but you should be aware that the conditions for GSP may vary from the FTA.

EU exporters must complete a statement of origin made out on the commercial invoice to qualify for the FTA. For shipments above €6,000, EU exporters will also need to register in the REX system.

Vietnam exporters must complete a statement of origin made out on the commercial invoice to qualify for the FTA. For shipments above €6,000, Vietnam exporters will also require a certificate of origin.

To find out more about the EVFTA you can read this comprehensive guide, while information on the FTA’s rules of origin requirements are available in the EU’s guidance document.