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Navigating Customs Duties: Essential Legal Insights Customs duties are a pivotal component of international trade, involving the taxes imposed on goods as they cross national borders. These duties are essential for generating government revenue, protecting domestic industries, and regulating trade. For businesses engaged in global trade, a thorough understanding of customs duties is vital to avoid legal pitfalls and ensure efficient operations. The Fundamentals of Customs Duties Customs duties, also known as tariffs, are taxes levied on goods imported into a country. They serve multiple purposes: generating revenue for the government, protecting domestic industries from foreign competition, and regulating the flow of goods. Customs duties can be categorized into several types: Ad Valorem Duties: These are calculated as a percentage of the value of the imported goods. Specific Duties: These are based on the quantity or weight of the goods, irrespective of their value. Compound Duties: These combine both ad valorem and specific duties. The rates of customs duties... #AttorneysMedia #customsduties #exportcontrols #globaltrade #importregulations #internationalbusiness #InternationalTradeLaw #legalconsultation #legalinsights #tradecompliance #tradelaw #TradePolicies

The imposition of the customs duty serves several key purposes, which are: 1. Conserving Foreign Exchange: One of the primary objectives of the Customs Act is to regulate imports in a way that helps conserve the country’s foreign exchange reserves. By controlling the flow of imports, the Act aims to strike a balance between meeting domestic demand and preserving valuable foreign currency. 2. Achieving Policy Objectives: The Act serves as a tool for the government to implement its policies related to imports and exports. It allows the authorities to regulate the movement of goods across borders in alignment with the nation’s economic and strategic interests. 3. Regulating Exports: Just as it regulates imports, the Customs Act also provides a framework for regulating exports. This ensures that the export of goods is carried out in a controlled and organised manner, benefiting both the economy and the industries involved. 4. Coordinating with Other Laws: The Customs Act works in coordination with other laws related to foreign trade and foreign exchange, such as the Foreign Trade Act and the Foreign Exchange Regulation Act. This ensures a cohesive and consistent approach to managing international trade. 5. Safeguarding Domestic Trade: By regulating imports and exports, the Customs Act aims to protect domestic trade and industries from unfair competition or practices that could harm the local market. Protecting Revenue: The Act plays a crucial role in protecting the government’s revenue by ensuring that appropriate duties and taxes are collected on imported goods, thus contributing to the nation’s fiscal resources. 6. Protecting Indian Industries: The Customs Act helps protect Indian industries from unfair competition by regulating the import of goods that could potentially undermine domestic production and employment. 7. Preventing Smuggling: One of the key objectives of the Act is to prevent the smuggling of goods and related illegal activities, which can have serious economic and security implications for the country. 8. Preventing Dumping: The Act aims to protect Indian industries from the dumping of goods by foreign producers, which involves selling products at artificially low prices to gain an unfair market advantage. For the access to the complete article. Please visit our website : https://lnkd.in/gAvNbf5T The information provided here and across our online platforms is designed for educational and informational use only. It does not constitute professional advice. For guidance specific to your situation, please seek the expertise of a qualified legal professional.

Customs Controls in Turkey: Regulations and Practices Customs Control in Turkey plays a critical role in regulating the flow of goods across borders, ensuring compliance with national laws and international trade agreements. It involves a range of activities, including inspection of goods, collection of tariffs and taxes, enforcement of import/export restrictions, and prevention of smuggling. Turkey’s customs system is governed by Customs Law No. 4458, which aligns with the EU Customs Code and global trade standards. Secondary legislation, including regulations and communiqués, provides detailed guidelines for customs procedures, risk management, and dispute resolution. Businesses operating in Turkey must navigate customs controls carefully to optimize processes, avoid penalties, and maintain compliance. Bıçak Customs and Foreign Trade Services team aims to support companies in matters such as compliance and risk management in customs transactions, predictability of costs in transactions and increased efficiency, effective relationship management with authorities, and rapid support for operational foreign trade transactions. https://lnkd.in/dCtUGmnf @CustomsControlTurkey

Customs/032/2024 Subject: When is customs duty imposed? What is the threshold for duty exemption or the de minimis limit for imported goods? What are CD and RD rates? What is the maximum amount of RD the government can impose? How long does the RD remain applicable after imposition? Customs Duty: (a) Section 18 of the Customs Act, 1969 discusses dutiable goods. (b) Duties are imposed on goods imported into or exported from Bangladesh. The rates at which customs duty (CD) and regulatory duty (RD) will be imposed are specified in the law or in the Bangladesh Customs Tariff (BCT). (c) For example, in the case of importing footballs, the customs duty is 10% and the regulatory duty is 0%. On the other hand, for the import of unhusked rice, the customs duty is 25%. (d) It should be noted that besides these, other duties and taxes such as supplementary duty, value-added tax, advance income tax, and advance tax must also be paid. Duty Exemption or De Minimis Threshold: (a) No duty needs to be paid if the value of any consignment is less than Tk. 2,000 or the total duty is less than Tk. 2,000. This is the de minimis threshold Types of CD and RD Rates: (a) CD and RD are types of import duty. There are a total of 6 types of CD rates, namely 0%, 1%, 5%, 10%, 15%, and 25%. (b) There are a total of 9 types of RD rates, namely 0%, 3%, 5%, 10%, 15%, 20%, 25%, 30%, and 35% Maximum RD Rate: (a) Through a government notification in the government gazette, the government can impose double the maximum rate of CD as RD. (b) Currently, the maximum rate of CD is 25%, so the government can impose RD up to 50%. However, the current maximum RD rate is 35%. (c) The RD imposed remains applicable until the end of the financial year in which it is imposed Md. Delowar Hossain Mondol 12.03.2024

Alinea Customs contributed a 2024 Guide to Customs Compliance and Moving Goods Between Borders to Trade Finance Global (TFG).   The article addresses areas of customs compliance to consider when moving goods between borders, including tariff classification, customs valuation and rules of origin, and the associated multilateral agreements and conventions which ensures trade is for the most part harmonised. It also reflects briefly on the concept of pacta sunt servanda – “agreements must be kept” in relation to international trade, the current Red Sea crisis, and the underlying contracts of sale; and increased requirements for scrutiny of areas to consider, for example, liability for damages which may be incurred due to the late arrival of goods, on the basis of increased costs or an extended timeframe of delivery. The article is available to read at: https://lnkd.in/eYgz2F5B #customscompliance #customs #ukcustoms #redseacrisis #internationaltrade #theinternationalsaleofgoods #tradefinance #insurance #logistics #commerciallaw

Latest news on customs and foreign trade law The following compilation of current reports on customs and foreign trade law does not claim to be complete. The EU Commission wants to generally order customs monitoring of imports in the future November 14, 2024 The European Commission decided at the end of September 2024 to generally order customs registration for all imports of goods that are the subject of anti-dumping or anti-subsidy investigations. This is intended to strengthen trade policy protection instruments. The corresponding communication from the EU Commission can be found here. The customs registration of imports of goods that are the subject of an investigation enables, under certain conditions, the retroactive collection of anti-dumping and countervailing duties up to the start of customs registration. However, the decision on retroactive collection is not automatic, but is only made in the final phase of each investigation. This requires the issuance of a regulation. According to Article 14(5) of the basic anti-dumping regulation and Article 24(5) of the basic anti-subsidy regulation, imports are registered at the request of the Union industry, which contains sufficient evidence to justify this action. Imports can also be registered at the initiative of the Commission. In previous practice, customs registration was usually ordered at the request of the Union industry concerned. In the future, the Commission generally intends to act on its own initiative. Since the beginning of October 2024, the notices of initiation have contained a corresponding reference at the end of the "procedure" section. Combined Nomenclature 2025 1 November 2024 The European Commission has published the latest version of the Combined Nomenclature (CN), which will apply from 1 January 2025. The Combined Nomenclature is the basis for the declaration of goods (a) upon import or export or (b) for intra-EU statistical purposes. The classification of the goods determines the applicable customs duty and the manner of statistical treatment. The CN is therefore a fundamental working tool for both the economy and the administrations of the Member States. The Combined Nomenclature finds its legal basis in Council Regulation (EEC) No 2658/87 on the customs and statistical nomenclature and on the Common Customs Tariff. It is updated annually and published as a Commission Implementing Regulation in the EU Official Journal (L series). The latest version was published as Commission Regulation (EU) 2024/2522 in the EU Official Journal 2024/2522 L series of 31 October 2024. It applies from 1 January 2025.

Russian parliament’s upper house approves online trade protocol The document separately categorizes goods acquired within the online trade framework and determines specificities of online trade regulation MOSCOW, August 2/ The Federation Council, the upper house of the Russian parliament, approved at its plenary session the law ratifying the protocol on amendments to the Agreement on the Customs Code of the Eurasian Economic Union (EAEU) for the purpose of settling issues of online trade goods’ moving across the customs border. The protocol to the 2017 Agreement was signed in St. Petersburg on December 25, 2023 by heads of member-states of the Eurasian Economic Union. The document separately categorizes goods acquired within the online trade framework and determines specificities of online trade regulation. The protocol also provides for creation of a new institution in the customs sphere - the online trade operator. The document identifies support of the goods, including support of logistics for goods acquired on an international online platform, and responsibility towards customs authorities as its key functions. Customs declaration will be made using the declaration for online trade goods. Consumers will be able to process formalities either on their own or via the electronic trade operator or via a customs representative with an appropriate contract to be made by an individual with it. Customs duties on goods intended for sale to individuals will be paid at rates set by the EAEU single customs tariff and for goods delivered directly to an individual - at a single import duty rate to be fixed by the Eurasian Economic Commission. The protocol enables each EAEU member-state to set a value-added tax for such goods. There is an opportunity for a duty-free threshold for imports of goods in electronic trade if these are imported directly by individuals. The protocol will come into force from the date when the depository will receive the last notice about performance of required internal procedures by member-nations of the EAEU. #business #finance #financialservices

As businesses expand globally, comprehending customs regulations becomes vital. The Indian Customs Act 1962 governs imports and exports, ensuring adherence and fostering trade ties. Recent talks on Free Trade Agreements (FTAs) and potential rule amendments have implications for business customs operations. This piece explores FTA advantages and forthcoming changes under the Indian Customs Act 1962. Understanding Free Trade Agreements (FTAs): FTAs are pacts between nations aiming to boost trade by slashing tariffs and trade barriers. India has inked various FTAs with countries like ASEAN, Japan, and South Korea. These pacts offer perks such as reduced tariffs, simplified customs, and market expansion. Benefits of FTAs for Businesses: Tariff Reduction: FTAs slash tariffs on specific goods, saving costs for businesses. Market Access: FTAs ease entry into foreign markets, broadening customer reach. Competitive Edge: Preferential tariff rates under FTAs enhance product competitiveness. Streamlined Procedures: FTAs simplify customs processes, cutting down paperwork and clearance times. Upcoming Rule Changes in Indian Customs Act 1962: While FTAs are advantageous, businesses must track customs law updates. The Indian government plans to digitize customs operations, bolster risk management, and introduce trade facilitation measures. Stricter compliance enforcement is also on the cards. FTAs offer significant trade advantages, but businesses must adapt to evolving customs regulations. Staying informed about rule changes is crucial for Tax compliance and efficient trade operations. By leveraging FTA benefits and adjusting to regulatory shifts, businesses can thrive in the global market. #internationaltrade#freetradeagreements#taxcompliance#riskmanagement #trademacilitationmeasures

Ireland reaps €700m Brexit bonanza from customs duties 💼💶 Ireland is celebrating a significant economic windfall following Brexit, with a staggering €700 million increase in tax revenues from customs duties. 📈 Before Brexit, Britain enjoyed customs-free exports to Ireland and the rest of the EU. However, the shift in regulations meant fresh controls, checks, and duties on exports to the EU, leading to this remarkable increase in tax revenues for Ireland. New data reveals a whopping 90% surge in customs duty receipts in Ireland between 2020 and 2021, demonstrating the tangible impact of Brexit on Ireland's economy. The surge in revenues, even amidst the challenges of the pandemic, showcases Ireland's resilience and adaptability in the face of changing global trade dynamics. A significant portion of customs duties came from imports from Great Britain, making up almost half of Ireland's total customs revenues last year. 🛃🔍 While this Brexit bonanza is undoubtedly good news for Ireland, it also raises important questions about the broader implications of Brexit, including who ultimately bears the costs of customs duties. Moreover, Ireland's adeptness in seizing these opportunities reaffirms its position as a key player in the dynamic realm of international trade. 💪 For Customs and Supply Chain Services contact: e: info@customscomplete.com t: +353 91 429 737 / +44 20 3830 7780 / +33 259 600 398 #Brexit #Economy #Ireland #CustomsDuties #Customs #GlobalTrade 

The Customs (Miscellaneous Amendments) (No. 2) Regulations 2024 - Customs rules The below is quite an interesting proposal that will change the overpayment process as we know it (C285's etc). From what i read, if you process a reclaim for duty you believe you have overpaid, which at the time of applying, the lower rate of duty is no longer applicable, it will be refused by HMRC. I see two main practical cases this may apply to : Scenario 1 : You applied to change a commodity code to a duty rate that was applicable at the time of import in 2023, the new commodity code had an updated rate of duty as of January 1st, 2024 and you submitted the reclaim on January 22nd, 2024. As the new rate is higher; you will only be able to reclaim against the new rate of duty which applies to the commodity code at the time of application (this may be higher than your original HS duty rate!). Scenario 2: Your application is to retrospectively apply preference to a shipment you imported in 2023 as you were unaware at the time of import this was an option. You now make an application in 2024 providing your origin statement &/or preference document (EUR1 etc), only to understand : - A suspension/withdrawal is currently in place under the FTA for the commodity code and your application is refused (we have seen this happen with Cambodia). - The duty rate was increased before your application was submitted in 2024 and now results in your reclaim being lower than originally anticipated or refused! Im sure there are more examples than this but some food for thought! #customs #HMRC #import https://lnkd.in/exK3EjRd