What is the role of customs?
Customs carry out various diverse missions that can be grouped into three main categories:
• Economic missions
- Managing international trade by controlling the flow of goods and facilitating exchanges.
- Applying regulations and trade defense measures to combat excessive competition.
- Establishing tailored procedures and facilitation regimes.
• Fiscal and statistical missions
- Collecting duties, VAT, and specific taxes (for the EU, the French State, local authorities, or other entities).
- Managing and collecting indirect contributions (alcohol, tobacco, etc.).
- Monitoring the EMBI (formerly DEB) in intra-community trade.
• Protection missions
- Protecting national territory (combating smuggling and major trafficking, controlling restricted goods).
- Safeguarding public health (combating drug trafficking, sanitary and phytosanitary controls).
- Security-related tasks (territorial monitoring, immigration control).
- Environmental protection (plants and animals, hazardous material transport, pollution at sea).
- Cultural heritage protection (cultural goods).
Why are customs duties imposed?
Customs duties are implemented to regulate market prices and protect national industries. By increasing the cost of imported products, they aim to align prices with those of locally manufactured goods. Customs duties vary depending on the product and its origin and are managed by the OECD. They can be reduced or eliminated under a trade agreement.
What are anti-dumping duties?
Anti-dumping measures often involve imposing an additional import duty on a product originating from the exporting country in question. This aligns the product’s price with its “normal value” or eliminates harm to the importing country’s domestic production sector. To activate an anti-dumping measure, the concerned state must prove that prices were significantly manipulated downward. This is assessed by referring to the product’s domestic market price, its price in another country, or its production costs.
The importing government must also conduct an investigation demonstrating that the abnormally low price risks causing harm to its national production. The maximum duration of an anti-dumping measure is 5 years.
The aim of such measures is to restore fair competition between imported products from third countries and those manufactured in the European Union (EU). The goal is not to penalize imports or artificially increase the cost of imported products but to counter practices deemed unfair by the WTO. For this reason, these measures apply only to imports from countries engaging in unfair practices.
Investigations lead to the following actions:
Adoption of provisional duties during the investigation:
If a preliminary examination concludes the existence of dumping or subsidies and harm to the EU industry, the Commission may decide to adopt provisional duties. This can occur no earlier than sixty days and no later than nine months after the procedure’s opening.
The imposition of provisional duties requires a guarantee equal to the duty amount before goods can be released for free circulation.
Provisional duties aim to protect European businesses during the investigation and serve as a precautionary measure.
Implementation of a registration procedure during the investigation:
The Commission may, during the investigation, request customs authorities to take appropriate measures to register imports potentially subject to anti-dumping or countervailing duties. This is done upon a duly justified request from EU industry.
At the conclusion of its investigation, the Commission may confirm the existence of dumping or subsidies.
Note:
- Possibility of an interim review: At the request of an exporter, importer, or EU producers, if at least one year has passed since the introduction of definitive measures.
- Possibility of a review upon expiration: This takes place six months before the measures expire, and the Commission notifies stakeholders.
It is crucial to regularly monitor developments in anti-dumping measures, as overlooking them during customs clearance can have serious consequences.
What is the customs value?
The customs value is the value of the goods upon arrival at the EU border (CAF value) plus transport insurance. To determine the customs value, additional costs are added to the price paid for the imported goods: transport, insurance, loading, and handling costs related to transport up to the point of entry into the customs territory of the community, provided these costs are not included in the price paid (transactional value).
What is the purpose of the customs value?
Its purpose is to assess the value of the goods at the time of importation to calculate the applicable duties and taxes.
When is a customs operation required?
All goods entering or leaving the European Union (EU) require an administrative declaration. When goods leave the EU, it involves trade between EU countries and the rest of the world. On purchase, it is referred to as importation; on sale, it is referred to as exportation. For trade between EU countries, purchases are referred to as acquisitions, and sales are referred to as transfers.
What are the different purchasing zones?
In France: purchases include VAT.
In the EU: purchases exclude VAT (EMEBI) and are treated as acquisitions with VAT payment.
Outside the EU: purchases exclude VAT and require a customs declaration.
What is a customs declaration?
A customs declaration, or SAD (Single Administrative Document), is a document that justifies an import or export. Depending on the operation, the SAD may take different forms (IMA for import, EXA for export, EUA for certain countries, IMZ for bonded warehouses).
It contains essential elements for tracking movements, such as statistical and tax data, and is validated by customs. Starting in early October 2024, the SAD will be replaced by the new DELTA I/E procedure.
What is a customs tariff?
A customs tariff is the designation assigned to an imported good according to customs tariff classifications, based on a methodical nomenclature system. It is categorized under a tariff classification recognized by the EU. Customs tariffs are critical for regulating and taxing products, which is why consulting a professional is recommended to avoid errors.
How to determine a customs tariff?
The determination of a customs tariff depends on several criteria (designation, usage, composition, etc.). It is linked to the notes in the TARIC customs system, the notes of the customs nomenclature, and the Harmonized System (HS) notes. It also relies on general classification rules and, in some cases, assortment rules. Precautions must be taken before assigning a customs nomenclature, as customs terminology may differ from commercial language.
What is a Binding Tariff Information (BTI)?
A Binding Tariff Information (BTI) ensures the correct tariff classification of a product for three years within the EU. It provides legal certainty regarding tariff classification and serves as a valuable tool in case of disputes over the declared tariff species. Errors in classification can have severe consequences.
What is origin?
Origin refers to the geographical and economic link connecting a product to the country or group of countries where it was produced or manufactured. It is important not to confuse origin with provenance.
What is provenance?
The country of provenance is the last country from which the goods were shipped before being introduced into the territory, but it is not necessarily the country of origin.
What is the difference between non-preferential origin and preferential origin?
Non-preferential origin determines the "Made In" designation and external trade restrictions. It applies to imports from third countries with which the EU has not signed agreements or when products are excluded from preferential agreements or fail to meet the rules of origin.
Preferential origin allows for reduced or zero customs duties through trade agreements between the EU and third countries. Customs duties are determined within the framework of free trade agreements signed by the EU or unilateral tariff concessions granted by the EU (GSP).
What is an RCO?
The Binding Origin Information (RCO) certifies the origin of a product for three years within the EU. It is a document issued free of charge to all EU customs administrations, providing security for your imports.
What are the impacts of a false declaration of species or origin?
A false declaration can distort regulations and taxation, leading to significant financial adjustments and penalties. Customs can verify declarations up to four years retroactively and the current year, or even up to ten years in cases of fraud. Customs duties, once paid, are non-refundable, thus impacting company margins. In the event of a customs audit, you must keep your records archived for the same period.
Legal issues can fall into two categories:
- A contravention, handled by the Police Court, may result in fines, confiscation, or imprisonment.
- A crime, in the case of non-declaration of goods, may result in up to 3 years of imprisonment, confiscation, and fines.
Importing prohibited goods or those subject to control carries similar penalties, with fines potentially reaching 4 to 5 times the value of the goods.
What is the status of a good?
The status of a good refers to a stage in its international journey that determines its market entry rights. A good changes its status each time it crosses an external border.
What is an RDE?
An RDE (Customs Representative Entity) is an entity (individual or legal) that acts as an intermediary between international trade operators and customs authorities.
Its mission is to facilitate import, export, transit, or warehousing operations while ensuring compliance with applicable customs regulations.
Specialized knowledge enables the RDE to navigate the complexities of customs regulations effectively.
To obtain RDE status, a series of strict conditions must be met:
Representatives must be established within the European Union to operate in any member state, ensuring complete coverage within the EU customs territory.
The RDE can act in two different ways:
• In direct representation, the RDE acts in the name and on behalf of another, meaning that the importer or exporter remains legally responsible for customs declarations. In this case, the RDE serves as an intermediary.
• In indirect representation, the RDE acts in its own name while operating on behalf of a third party. In this case, the RDE and the client share legal responsibility for declarations.
This results in shared responsibility for customs obligations. Both the client and the RDE are jointly responsible for declarations. Therefore, it is essential to clearly define in your contracts what information you provide and what you expect from the RDE.
What is an AEO?
An Authorized Economic Operator (AEO) is a status recognized across the entire European Union (EU) and in countries with mutual recognition agreements. It is granted for three years or longer if no audit is conducted.
The AEO status is issued based on specific competencies and provides certain advantages, such as access to summary declaration data (ICS, ECS, etc.). This status facilitates smoother and more secure trade operations within and outside the EU.
What is an EORI number?
Companies and individuals wishing to engage in commercial activities must use their EORI (Economic Operators Registration and Identification) number as an identifier in all customs procedures when exchanging information with customs authorities.
The registration number is therefore essential for businesses involved in import/export activities. It is issued free of charge by customs services.
• If you intend to carry out customs clearance operations in Delta G or Delta X, you must use an EORI number based on the SIRET.
In France, the EORI number is primarily used in online services (electronic declarations) related to the customs clearance of goods:
• Delta G1, Delta X:
Enables customs clearance for imports and exports.
• NSTI:
Allows the placement of goods under transit procedures.
• ICS:
Facilitates security and safety formalities before importation.
• ECS:
Certifies the exit of goods from the European Union to obtain VAT exemption at export; ECS also handles safety and security formalities for export.
Note: For DELTA IE, operators are recommended to request an EORI SIREN (except for AEOs who already possess an EORI SIREN). This request should be submitted through the SOPRANO EORI platform.
This is important for transitioning to European applications. It should be noted that the EORI SIRET will be deactivated as of December 2025. EORI SIREN is intended to be unique in accordance with Articles 7 § 2 AE UCC and 1 § 18 AD UCC.
Where can I request a Binding Tariff Information (RTC)?
RTC requests can be submitted through the SOPRANO platform. However, starting mid-October 2024, all RTC requests must be made via the European EBTI portal.
What are the Explanatory Notes of the Harmonized System (NESH) from the WCO?
As their name suggests, these notes explain, clarify, and comment on the data listed in the Harmonized System (HS) nomenclature. They provide detailed information on classification, the content of subheadings, and definitions of terms used.
What are the Explanatory Notes of the Combined Nomenclature (NENC) from the EU?
These notes explain, clarify, and comment on the data listed in the Combined Nomenclature (CN). They provide detailed information on classification, the content of subheadings, and definitions of terms used. They integrate and complement the NESH or refer to them. These notes are subject to continuous updates. Their PDF format is freely available online.
What is DELTA I/E?
This online service is designed for all operators importing goods from territories outside the European Union and their customs representatives. It also covers trade between mainland France and overseas territories.
What is the purpose of DELTA I/E?
DELTA I/E (Import/Export) refers to the new customs clearance service for imports and exports offered by French Customs.
DELTA I/E is set to replace all existing customs clearance applications (DELTA G, ECS BS, DELTA X Import, and DELTA X Export).
DELTA I/E represents the realization of three projects within the IT work program of the Union Customs Code (UCC):
• Updating national import systems to meet UCC standards (NIS Update - National Import System Update);
• Developing a system to interconnect national customs clearance systems for centralized clearance at import (CCI - Centralized Clearance at Import) and export (CCE);
• Adapting customs systems for export and exit tracking (AES - Automated Export System).
This new online system marks the end of the current customs declaration form (Single Administrative Document - SAD). Customs declarations will now be handled as datasets electronically submitted by operators to customs.
Exchanges between operators and the customs IT system for DELTA I/E will use the "JSON" format for this application. The "Mareva" messaging service will no longer be used. This new solution will improve system availability and processing times.
Who is affected by DELTA I/E?
All stakeholders involved in import operations into Europe and export operations outside Europe are affected by this new customs clearance process.
The EORI Number: Currently, DELTA G operates with EORI SIRET numbers
Operators are advised to request an EORI SIREN (except for AEOs who already have an EORI SIREN) as soon as possible. (Requests can be made through SOPRANO EORI).
This is not only for DELTA I/E but also for transitioning to European applications. EORI SIRET numbers are scheduled to be deactivated in December 2025 to complete the transition to EORI SIREN. At that point, EORI SIREN will become mandatory.
From a regulatory standpoint, the EORI is intended to be unique under Articles 7 § 2 AE UCC and 1 § 18 AD UCC.
The DECO Relationship (Common Customs Clearance)
The DECO is the new customs clearance relationship that replaces the PDCI, PDDI, and PDXI relationships.
An operator with multiple PDCI relationships across various establishments within the same customs office will now have a single DECO at the SIREN level for that office.
A DECO relationship will be created per SIREN and customs office. Operators can have multiple DECOs per SIREN since each DECO only covers one declaration office.
For existing DELTA G and X relationships, DECOs will be automatically created from the current customs clearance relationships without requiring requests from operators. For new DECOs, customs offices will create them based on Delta conventions.
Standard Declaration (Single Step) or Simplified Declaration + Complementary Declaration (Two Steps)
- Authorization for a simplified declaration is mandatory to file a simplified declaration. (Request to be submitted through the European T P CDS application, see previous posts).
- To delay the presentation of a document, you must hold a simplified declaration authorization.
- A complementary declaration is required for a simplified declaration (no global declaration).
- No liquidation occurs on the simplified declaration; liquidation is performed only on the complementary declaration.
- Regarding value, if the timeframe to obtain the final value exceeds 30 days after the submission of the simplified declaration, a provisional value authorization must be requested.
The instruction on "Simplified and Complementary Declarations (and revision of D48 and AVP)" will be published soon.
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We organize free themed group demonstrations (e-declaration, compliance, customs database, etc.) 2 to 3 times per month. To participate, simply register by clicking here: Register and choose your preferred time slot.
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I already use another customs software. Is it possible to transfer my data to Okiduty?
If you are already using a different solution and wish to migrate without losing your information, it is possible. With Okiduty, you can import all your data, such as declaration templates, your product database, and the history of your declarations.
Can multiple users share the same Okiduty account?
Simultaneous logins with the same account are not possible. If you wish to increase the number of users in your subscription plan, it is possible. Simply contact your sales representative for assistance.
How frequently is Okiduty's data updated?
Data is updated nightly: 99% automatically, with certain updates requiring manual intervention.