Companies Need To Pay Attention To The Adjustment Of Customs Policy After Brexit

The incident that the EU wants to impose retroactively up to 2 billion euros of tariff debt on the UK has been rampant. Bao Yongqing said that tariffs are one of the EU’s fiscal revenues, because the EU is a single customs territory, and products entering the EU can flow freely within the EU after customs declaration in its member states. Many importers choose countries that have relatively easy customs enforcement or supervision among the member countries to declare customs, use "false and wrong invoices and declare inaccurate customs prices." Upon discovery, the European Union asked the British government to investigate and collect all evaded taxes retrospectively. "The protection of tariff interests is actually the protection of fiscal revenue." Bao Yongqing said that the EU currently attaches great importance to customs affairs, not only for the safety of products in the EU customs territory, but also for the protection of the unity of the EU market.

Bao Yongqing reminded that it is an objective obligation of operators to bear tariffs, and the bearers are mainly importers. If they are indirect agents of the European Union, logistics companies and customs brokers may become obligors. How much import tax is levied depends on the three major elements of product classification (tariff number), the origin of the product, and the value of the product. The importer must be able to provide factual evidence for the declared information. If it is the origin, it must have a certificate of origin. If it is the value of the commodity, it must produce sufficient evidence to prove the value of the declared commodity during the process of customs valuation. . “Even if the goods have been cleared, the customs still has many means of post-investigation.” He mentioned, for example, the customs can carry out some surprise inspections in the EU or the final buyer with the cooperation of the police department, and the law enforcement strength or authority is very large. It is possible to detain the information about the business operation of the enterprise or to use the method of administrative detention to inquire the relevant responsible persons. In addition, EU customs have also signed bilateral customs cooperation agreements with many third-country governments. For example, China's customs have had such cooperation with EU customs. Therefore, the EU can require third-country governments, the exporting government, to cooperate with them to conduct investigations. The European Commission has even established OLAF (European Anti-Fraud Agency), which is dedicated to investigating and investigating fraud involving EU financial funds and resources.

The implementation of the "EU-UK Trade and Cooperation Agreement" clearly stipulates that the UK will withdraw from the EU Customs Union and all EU policies and international agreements. The UK has become an independent customs territory after Brexit, which means that import and export rules apply to trade between the EU and the UK. British products are treated as non-EU products and treated the same as third-country products. Bao Yongqing said that in response to the new challenges of EU customs enforcement, companies should attach importance to the prudential review of customs compliance, take compliance and risk into consideration in the decision-making process, and do a good job in the production rules, third-party production capacity, and supporting research and analysis. Compliance program and strict implementation. Where possible, companies can include exemptions or limitation of liability clauses in their contracts with customers, and transfer responsibilities in their contracts with suppliers. At the same time, enterprises must fully cooperate with the investigation after customs clearance, be vigilant about "routine" information verification, and remind EU customers; keep information unblocked but not disclose unnecessary information; maintain the integrity of documents and materials, and protect procedural rights.

Compliance has always been the most concerned issue of enterprises. In a questionnaire survey conducted on companies doing business in the UK, the interviewed companies stated that the main challenges they face in the process of Brexit include commercial terms (General Rules for the Interpretation of International Trade Terms), customs declarations, etc. Brexit has caused many changes in regulations. Qu Jun suggested that companies should first review the trade terms and the responsibilities and obligations of both parties to the transaction. "Different trade terms in commercial terms will not only have different effects on compliance, but also play an important role in price negotiations." Secondly, companies need to register with GB/UK EORI and allow sufficient time for registration. EORI is a necessary registration number for all individuals/enterprises with economic activities in EU countries, especially for import and export businesses. Finally, companies should look for suitable import and export agents, and it is best to have the ability to obtain all the information needed to complete customs declarations, especially data on product classification, value, and origin. "The optimal strategy for companies is to choose countries with free trade agreements to reduce tariff costs." Qu Jun said that in the case of free trade agreements, companies should pay special attention to the rules of origin, one is the standard of completely original products, and the other It is a substantial change in standards. If there is no free trade agreement, then companies can use some bonded mechanisms, but they should try their best to apply their business models to save relevant tariff costs. Qu Jun reminded that companies that have business in the UK must take action as soon as possible, not only considering fiscal and taxation, but also sorting out the requirements of the supply chain, customs declaration, etc., and setting up an internal control system including the ERP system as required.