Following on from the turbulence and uncertainty of 2010 we are now entering a period of cautious optimism. Commentators generally agree that 2011 will be a difficult year but a number of key polls report on a feeling that we are slowly turning the corner.  

In a customs sense, 2011 has already witnessed two significant changes with the introduction of the Import Control System and the new preferential rules of origin.  We expect that 2011 will usher in a number of changes in the sphere of customs law and practice and our main article this month focuses on the year ahead and what businesses can expect. In particular, we outline the issues facing those businesses looking to expand into new markets and highlight the main risks to look out for when importing from outside the European Union.   

This article reflects our view of the likely customs developments and trends for 2011. 

We see these trends being shaped by customs regulatory changes on the one hand and the customs implications of key strategic business changes on the other. 

Customs Regulatory Changes

New Regulations

From a customs point of view, 2011 has already seen the introduction of the Import Control System as well as the new preferential rules of origin. The carrier of the cargo is responsible for compliance with the Import Control System but importers will need to discuss and liaise with their freight forwarders to ensure that there are no unnecessary delays to the shipment of their goods.

The preferential rules of origin have been relaxed but importers should be aware that the obligations on importers are being interpreted extremely narrowly so if you are benefitting from preference you will need to ensure that your goods meet the relevant origin rules and that you protect your business under the Good Faith Provisions.

New Customs Code

The EU Commission continues to work through the detailed implementing provisions of the new customs code which must be implemented by 2013.  There are a number of key decisions which have yet to be finalised including the customs treatment of payments for intellectual property rights (royalties and licence fees for trademarks etc.) and whether the First Sale option will be maintained.  We will endeavour to bring the key changes to your attention as soon as there is something concrete to report.

Earlier Notice of Customs Changes

The EU Commission and HMRC have been criticised for the amount of notice given to businesses of proposed changes in law and practice.  There is a growing awareness of the need to give businesses time to implement any changes and we are hoping to see improvement in this area.

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International Trade Solutions helps medium to large companies build world-class customs functions, delivering cost-savings while ensuring effective compliance with customs regulations.