The European Parliament and European Council yesterday reached an agreement on a major reform of the European Union (EU) Customs Code to address problems relating to e-commerce, safety of goods and efficiency.

According to the informal agreement, there will be a new handling fee for each item entering the EU from non-EU countries and sent directly to EU consumers, to cover the extra cost of handling an ever-increasing number of individual parcels.

This will be paid by the same entity responsible for paying other customs charges for the same parcel, to avoid shifting the cost to consumers.

The European Parliament and European Council have reached a deal on a major reform of the EU Customs Code to address problems relating to e-commerce, safety of goods and efficiency.
A new handling fee will be charged for each item entering the EU from non-EU nations and sent directly to EU consumers.
The European Commission will establish the level of the fee and reassess it every two years.

The European Commission will establish the level of the fee and reassess it every two years. Member states will start collecting it as soon as the necessary information technology (IT) system becomes operational, and in any case no later than November 1, this year.

Under the new rules, sellers and platforms that facilitate distance sales of goods from non-EU countries directly to EU customers will be treated as importers. This will oblige them to provide customs authorities with all the necessary data, pay or guarantee any charges, and make sure that the goods comply with EU laws, an official release said.

These companies must be established in the EU or be represented by an EU-based entity having either authorised economic operator (AEO) or trusted trader status. This should prevent the use of shell companies.

To incentivise bulk shipments that are easier for customs authorities to check, non-EU country sellers and platforms are encouraged to operate warehouses in the EU. Their intra-EU client shipments would benefit from a lower handling fee, provided their goods were imported in collective packaging and large enough quantities to make customs checks more efficient.

Companies that repeatedly ignore EU rules could be punished with a fine of at least 1 per cent (and up to 6 per cent) of the total value of goods imported into the EU in the previous 12 months.

Additionally, customs authorities may suspend, revoke, or annul their trusted trader or AEO status and flag them as high-risk operators.

Import-export companies that follow the rules and agree to cooperate transparently with the customs authorities may benefit from a simplified ‘trust and check’ regime. This would initially require them to go through thorough vetting and grant customs authorities access to their electronic systems.

In exchange, their shipments would be checked less frequently and they would have more flexibility regarding the payment of duties and fees.

The current AEO qualification will remain in place to keep customs status accessible to smaller economic operators.

The reform also establishes a new customs data hub to be managed by the new EU Customs Authority (EUCA). It will be available for optional use by 2031 and mandatory by 2034.

The data hub will replace at least 111 software systems currently used by customs.

The provisional agreement needs to be officially approved by Parliament in plenary as well as by the EU Council, before it will become law.

Fibre2Fashion News Desk (DS)

The European Union’s (EU) apparel imports dropped by 15.48 per cent year on year (YoY) in January this year to €7.03 billion ($8.15 billion), according to data from Eurostat.

This was driven by an 8.36-per cent YoY decline in import volume and a 7.76-per cent YoY decrease in average unit prices.

The EU’s apparel imports fell by 15.48 per cent YoY in January to €7.03 billion, according to Eurostat.
Bangladesh’s apparel exports to the EU fell to €1.43 billion in January—a 25.25-per cent drop in value.
China remained the top exporter of apparel to the EU (€2.22 billion), but still saw a 6.9-per cent decline YoY in value.
India, Pakistan, Vietnam and Cambodia also remained in negative territory.

Bangladesh’s apparel exports to the bloc fell to €1.43 billion in January—a sharp 25.25-per cent drop in value. It saw a 17.49-per cent YoY decrease in the quantity of goods shipped, coupled with a 9.41 per cent drop in the unit price per kilogram.

China remained the top exporter of apparel to the EU (€2.22 billion), but still saw a 6.9-per cent decline YoY in value. Its unit prices dropped by 8.01 per cent YoY, while its export volume grew a bit by 1.21 per cent YoY.

Turkey faced a severe hit with a 29.12-per cent YoY decrease in apparel export value to the EU in the month, totaling €619.98 million.

Other countries like India, Pakistan, Vietnam and Cambodia remained in negative territory, reflecting a broad-based slowdown in the European fashion retail market.

Fibre2Fashion News Desk (DS)