2012
Welcome to the first edition for 2012 of the IEA Trade and Customs Newsletter - January 2012 Edition
There are a number of key issues we would like your feedback on once you have read this edition ;
- Dublin Port proposed reduced opening hours by Customs at Terminals
- HS and CN tariff code changes introduced on 1st January and impact on BTIs
- Chemicals delisted for import or use –latest update
- AEO how do we compare with UK and rest of Europe
- Iran and increased sanctions
- Syrian and increased sanctions
Dublin Port proposed reduced opening hours by Customs at Terminals
The Customs officials in Dublin Port have advised the IEA that they are losing a number of front line staff in the Port as and from the 29th February. To try to balance the work load with the resources at their disposal from that date, they wish to reduce the Customs officer presence in the 3 Container Terminals from the current closing time at 7.00pm to 3.00pm. They will continue to offer a Customs service in the main Custom House up to 10.00pm.They have asked the IEA to review any difficulty that may arise for export industry as a consequence .
If there are any exporters , terminal operators , shipping lines or freight forwarders who believe this will delay or cause difficulty with these reduced hours in the Terminal offices please e-mail John Whelan ; jfwhelan@irishexporters.ie and I will take the matter up with Customs and seek a mutually satisfactory solution .
HS and CN tariff code changes introduced on 1st January and impact on BTIs
The Harmonised System (HS) is a WCO classification of 98% of goods in international trade and is used in 200 countries. It classifies goods to 6 digits, and is not binding within the EU. On the 1st January 2012 the WCO published it’s once every 5 year update.
The EU also on the 1st January published its Combined Nomenclature (CN) update. It does this once per year. The CN is the EU version of the HS. The EU normally calls it the Customs Tariff and it is applicable in all EU 27 member states, and covers all goods traded into and out of the EU. It classifies goods up to 8 digits and is legally binding.
There were 818 codes deleted and 907 new codes introduced in the January CN update.
There were significant changes in the Agriculture and Chemical sector as well as in multifunctional machines and optical media.
If you have any BTI’s from Customs, these may be affected. Of the 5487 Irish BTI’s valid on the 31st December 2011, 257 of these were affected and are no longer valid.
Revenue has advised us that they have issued notices to any existing BTI holders. But they also advised the IEA that if there is any member who is concerned they may e-mail Joe Cleary at jcleary@revenue.ie , he heads up the BTI unit and has offered to send out to any individual on request an on line spread sheet for use on your own computer to run a check against any CN code you wish to check if there has been any change .
Chemicals delisted for import or use –latest update
The Health and Safety Authority (HSA have requested that we advise you of the following;
In December 2011, the European Chemicals Agency (ECHA), recommended to the European Commission that a further 13 substances of very high concern (SVHCs) should not be used in the future without prior approval (authorisation). Once these substances are subject to authorisation under REACH, manufacturers/importers will not be able to place them on the market for a use, and companies who use them will not be able to continue using them, beyond a certain date (latest sunset date), unless they have been granted an authorisation. In addition, a date will be specified by which companies must apply for the authorisation.
The 13 substances, their main uses and the relevant application and sunset dates, are listed on the ECHA’s website at http://echa.europa.eu/web/guest/addressing-chemicals-of-concern/authorisation/recommendation-for-inclusion-in-the-authorisation-list/previous-recommendations/3rd-recommendation.
As this recommendation could have major implications for many Irish companies using these chemicals, it is important that all affected companies are made aware of the impending new Regulation. At this point, businesses should consider the possibility of using an alternative substance(s) as the authorisation process is expected to be costly and difficult, and companies may find that chemicals are no longer available to them through their supply chain. If this is not possible, then companies should plan to prepare authorisation applications, either alone, or with their suppliers.
Further information on the authorisation process, and on this specific recommendation, can be found on ECHA’s website at http://echa.europa.eu/web/guest/addressing-chemicals-of-concern/authorisation/recommendation-for-inclusion-in-the-authorisation-list/previous-recommendations/3rd-recommendation. If you have any questions, then please do not hesitate to contact the chemicals helpdesk, at chemicals@hsa.ie.
AEO how do we compare with UK and rest of Europe
Aren Mielken , from Deloitte ‘s London office supporting Customs and Global Trade Practice , presented at the recent IEA Customs and Trade seminar and had some interesting advise and comparisons on AEO activity across the EU .
Across the EU ,as of 4th January 2011 , there have been 12,828 AEO applications, of which 1170 or 9% were rejected. However, in the UK there has been a very high rejection rate of 27% , whereas in Ireland there has been no rejections .
When looking at the level of AEO applications across the EU27 member states it is interesting to note that Ireland is well up the ranking as the 6th largest applicant country.
The Irish Revenue as of 16thn January 2012 advise there were 99 business applications for AEO status , 92 were accepted , 7 were withdrawn , 74 certified . 2 suspended at trader request, 2 revoked at trader request.
German businesses have been the most active within the EU in applying for AEO status , with 751 business now certified . This is 10 times more than the UK.
In December amidst great fanfare the EU and US CBP signed off on the Mutual recognition agreement on the AEO and C-TPAT. This agreement recognising each others ‘secure trader ‘ programmes by the EU and US authorities should bring significant benefits in reducing border delays , less red tape and greater predictability.
For further information on AEO you may contact Arne Mielken ; amielken@deloitte.co.uk
Iran and increased sanctions
The EU has added 39 people and 141 companies to the list of entities in Iran subject to ‘restrictive measures’, which in effect will create a ban on travel to Europe and freezing of European assets.This is an step up of pressure on Iran following the consolidated EU Regulation 961/2010, introduced last year. Regulation 961/2010 froze European funds of designated individuals and placed restrictions on assistance, transfer of funds and investment in connection with the oil, gas, mining and nuclear industries and where there is a possible WMD (weapons of mass destruction) or internal repression dimension.
The restrictions on assistance extend to transport, including a ban on proscribed cargoes, and to insurance, including a ban on settlement of claims. The definition of proscribed cargo is extremely technical and is made even more problematic by the concept of ‘dual use’ cargoes, which might be used for a prohibited purpose as well as an innocuous one.
The definition of EU entities subject to Regulation 961/2010 is very widely drawn.
The new development is driven by the suggestion, denied by Iran, but endorsed by a recent International Atomic Energy Agency Report, that Iran is developing ‘non-peaceful’ nuclear weapons. While the current sanctions are making things inconvenient for Iran, it is unlikely that they will have any effect on its nuclear programme. The EU introduced further sanctions in the New Year against the Iranian transport, financial and energy sectors. This may also extend to a ban on oil imports, although this could have serious economic implications.
Syria and increased Sanctions
Similarly, the EU has strengthened its restrictive measures against Syria. The measures include prohibition of insurance, exports of key equipment for use in the oil or gas sectors and technical or financial participation in the construction of new power plants. This is the latest stage in a gradual approach, designed to minimise hardship among the Syrian population as well as to manage the impact on European interests.
The ban on technical support reinforces an earlier ban on oil imports into the EU. It is unlikely that Syria will be able to replace this support with local expertise, and this further step will impact its ability to maintain production, even if it can find alternative buyers to EU states.
The new provision also reinforces personal sanctions - asset freezes and travel bans - imposed on Syrian officials, including the president, the defence minister and the head of internal security, and their respective entourages.
More or less simultaneously with the latest EU action, Turkey and - in an unprecedented move - the Arab League, have imposed asset freezes and travel bans against targeted Syrian individuals. The Arab League has severed transactions with Syrian banks, suspended funding for projects and threatened a ban on commercial flights. There are however signs that support for these moves is not unanimous among all member states of the Arab League. (Unsurprisingly, Syria has been suspended from the Arab League.)
Unless a transaction involves oil, when of course the effect of these sanctions will clearly be sharply felt, the main constraint on anyone trading with a Syrian entity is to take all reasonable steps to ensure that no targeted individual or entity is directly or indirectly involved in the deal. It should also be remembered that banking transactions may be difficult, slow or impossible.
Anyone who suspects that sanctions may impact on their business may contact the DEPT of Jobs Enterprise and Innovation –Licensing Unit, contact below
· Trade Sanctions currently in force (PDF, 43KB)
If you have any queries regarding trade sanctions please contact the Licensing Unit by email at exportcontrol@djei.ie or alternatively you can contact a member of staff on the following numbers:
Bridget Flynn – 00353 (0) 1 6312534
David Cullagh – 00353 (0) 1 6312703
Also you may find the following websites of use in keeping up to date on sanctions changes ;
US
http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx
EU
http://eeas.europa.eu/cfsp/sanctions/index_en.htm
UN
http://www.un.org/sc/committees/
UK
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