EU Customs and Trade Contact Group Quiz

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Questions and Answers

What is the primary purpose of the Trade Contact Group (TCG)?

  • To develop new customs technologies
  • To discuss customs policies and procedures (correct)
  • To conduct customs audits
  • To enforce trade regulations

The main goal of EU customs is to make trade easier while ensuring security and compliance.

True (A)

What document must be submitted for the Entry Summary Declaration (ENS)?

Entry Summary Declaration (ENS)

Customs authorities assess risks upon receiving the __________.

<p>Entry Summary Declaration (ENS)</p> Signup and view all the answers

Which of the following is NOT a challenge addressed by the Trade Contact Group?

<p>Market Expansion (D)</p> Signup and view all the answers

Match the following customs processes with their descriptions:

<p>Entry Summary Declaration = Document submitted before goods arrive in the EU Temporary Storage = Initial placement of goods upon arrival in the EU Customs Declaration = Required for moving goods into the EU market Export Declaration = Document submitted for goods being exported</p> Signup and view all the answers

The primary role of the customs declaration is to determine the duties applicable to imported goods.

<p>True (A)</p> Signup and view all the answers

What must be submitted for goods placed in temporary storage?

<p>Simplified declaration</p> Signup and view all the answers

What is required in Box 44 of the customs declaration?

<p>Special entries regarding additional documents (D)</p> Signup and view all the answers

The customs declaration document is only applicable to EU member states.

<p>False (B)</p> Signup and view all the answers

What does a green status in customs validation signify?

<p>Release approved.</p> Signup and view all the answers

Which of the following describes Inward Processing?

<p>Raw materials imported for processing and then re-exported. (A)</p> Signup and view all the answers

The customs declaration supports tax collection on imports and __________ exemption for exports.

<p>VAT</p> Signup and view all the answers

The Integrated Tariff (TARIC) provides a list of customs rules specific to Belgium.

<p>False (B)</p> Signup and view all the answers

What does the Harmonised System (HS) do?

<p>It helps countries use the same names and codes for products in international trade.</p> Signup and view all the answers

What does Box 2 of the customs declaration include?

<p>Exporter’s name, address, and EORI number (A)</p> Signup and view all the answers

Goods are brought in temporarily for exhibitions under __________.

<p>Temporary Import</p> Signup and view all the answers

Match the box number with its corresponding information:

<p>Box 1 = Declaration type Box 37 = Requested customs procedure Box 30 = Location of goods Box 14 = Declarant's information</p> Signup and view all the answers

Humanitarian goods are exempt from customs regulations.

<p>True (A)</p> Signup and view all the answers

Which of the following examples describes External Transit (T1)?

<p>Goods from Australia transiting through Rotterdam. (C)</p> Signup and view all the answers

Match the term with its description:

<p>Customs Warehouse = Stored without duties or VAT Outward Processing = EU goods exported and then re-imported Temporary Export = Items sent out temporarily like artwork Combined Nomenclature = EU classification system with more details</p> Signup and view all the answers

Emergency procedures require documentation of issues and records to be kept for __________ years.

<p>two</p> Signup and view all the answers

Duties are paid during temporary export procedures.

<p>False (B)</p> Signup and view all the answers

What does DAP stand for in shipping terms?

<p>Delivered At Place (D)</p> Signup and view all the answers

Belgium's set of customs rules is known as __________.

<p>TARBEL</p> Signup and view all the answers

In CIF, the seller is responsible for both shipping and insurance to the destination port.

<p>True (A)</p> Signup and view all the answers

What are the buyer's responsibilities under DDP?

<p>Simply receives the goods.</p> Signup and view all the answers

Under FOB terms, the buyer is responsible for costs after the goods are __________.

<p>loaded</p> Signup and view all the answers

What is the primary responsibility of the seller under DPU?

<p>Delivers and unloads goods (D)</p> Signup and view all the answers

Match the shipping term with its seller responsibility:

<p>DAP = Delivers goods to a specified location CFR = Pays for shipping to the destination port CIF = Pays for shipping and insurance FAS = Delivers goods beside the ship at the port</p> Signup and view all the answers

Under FAS, the seller is only responsible for delivering the goods next to the ship.

<p>True (A)</p> Signup and view all the answers

What does CFR stand for?

<p>Cost and Freight</p> Signup and view all the answers

What defines similar goods in customs valuation?

<p>They have the same function and are interchangeable. (C)</p> Signup and view all the answers

Customs uses the price of goods sold to unrelated buyers in the EU market to estimate their value.

<p>True (A)</p> Signup and view all the answers

What is included in the computed value of goods?

<p>Cost of manufacturing, profit, transport costs</p> Signup and view all the answers

The seller must deliver goods to the carrier chosen by the buyer under _______ terms.

<p>FCA</p> Signup and view all the answers

Match the cost adjustments to their categories:

<p>Sales commissions = Addition (+) Duties and taxes within EU = Reduction (-) Freight costs to EU border = Addition (+) Buying commission = Reduction (-)</p> Signup and view all the answers

When using reasonable means, which of the following is true?

<p>It is a flexible approach based on available data. (D)</p> Signup and view all the answers

Under EXW terms, the buyer is responsible for transportation, insurance, and customs.

<p>True (A)</p> Signup and view all the answers

List two types of costs that can be added to the base price.

<p>Sales commissions, packaging costs</p> Signup and view all the answers

What do the first four digits of HS codes represent?

<p>General category (A)</p> Signup and view all the answers

Anti-dumping duties are permanent and do not require regular review.

<p>False (B)</p> Signup and view all the answers

What is the tool offered by customs authorities to classify goods under the HS codes?

<p>Binding Tariff Information (BTI)</p> Signup and view all the answers

The total value of goods declared to customs when importing into the EU is known as the ______.

<p>customs value</p> Signup and view all the answers

Match the following valuation methods with their descriptions:

<p>Transaction Value of Imported Goods = The actual price paid for the goods during their sale for export. Transaction Value of Identical Goods = Price of identical goods imported at the same time.</p> Signup and view all the answers

Which of the following is a requirement for imported goods under SPS measures?

<p>Meeting EU health and safety standards (B)</p> Signup and view all the answers

Quota systems allow unlimited importation of specific goods into the EU.

<p>False (B)</p> Signup and view all the answers

What is the primary function of anti-dumping duties?

<p>To protect local industries from unfair competition.</p> Signup and view all the answers

Flashcards

Trade Contact Group (TCG)

A group where businesses and trade organizations meet with EU officials to talk about customs rules and their effect on EU businesses.

Integration and Uniformity

Making sure all EU countries follow customs rules in the same way.

IT Systems

Creating systems that work well together to make customs faster and cheaper.

Customs Competition

Preventing differences between EU countries in their customs rules.

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Evolving Roles

Adapting to new challenges like online scams, terrorism, and organized crime.

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Stakeholder Engagement

Keeping businesses involved in the development of customs policies.

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Entry Summary Declaration (ENS)

A document submitted when goods enter the EU, giving information about the shipment.

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Simplified Declaration

A quick notification to customs when goods arrive in the EU and are stored temporarily.

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Value of Similar Goods

Used when no identical goods are available, this method values similar goods with the same function and interchangeability.

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Unit Price in the EU Market

Customs determines the value by looking at the price goods are sold for in the EU to unrelated buyers, subtracting costs like transport, profit margins, and taxes.

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Computed Value

Calculates the value based on the cost of manufacturing the goods, plus profit and transport costs to the EU.

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Reasonable Means

Used as a last resort when other methods fail, customs utilizes flexible and fair methods based on available data to estimate value.

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Sales Commissions

Fees paid to sales agents for handling product sales.

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Packaging Costs

Costs for containers, packaging materials, and labor used to prepare goods for shipment.

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Freight Costs to EU Border

Expenses related to transporting goods from the seller's location to the EU border.

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Buyer Deliveries

Goods or services provided by the buyer to assist in the production process.

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CIP (Carriage and Insurance Paid To)

Seller pays for delivery and insurance to the destination. Buyer assumes risks after goods are handed to the carrier. - Example: Similar to CPT, but includes insurance.

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DAP (Delivered At Place)

Seller delivers goods to a specified location. Buyer handles customs duties and import taxes. - Example: Seller delivers to the buyer's warehouse.

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DPU (Delivered at Place Unloaded)

Seller delivers and unloads goods at the specified location. Buyer handles customs and import duties. - Example: Seller unloads goods at the buyer's dock.

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DDP (Delivered Duty Paid)

Seller handles everything (transport, insurance, customs duties). Buyer simply receives the goods. - Example: Seller delivers fully cleared goods to the buyer's warehouse.

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FAS (Free Alongside Ship)

Seller delivers goods beside the ship at the port. Buyer loads goods onto the ship and pays for everything after. - Example: Seller delivers goods to the dock next to the ship.

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FOB (Free On Board)

Seller loads goods onto the ship at the port. Buyer covers costs and risks after loading. - Example: Seller ensures goods are safely on board.

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CFR (Cost and Freight)

Seller pays for shipping to the destination port. Buyer handles insurance and risks once goods are loaded. - Example: Seller arranges sea transport, but the buyer insures the goods

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CIF (Cost, Insurance, Freight)

Seller pays for shipping and insurance to the destination port. Buyer takes over risks once goods are loaded. - Example: Similar to CFR, but includes insurance.

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Transit

Allows goods to move through the EU or other countries without paying duties until the final destination.

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Customs Warehouse

Goods are stored without paying duties or VAT until they are moved.

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Temporary Import

Goods brought in temporarily (e.g., for exhibitions) with partial or no duties.

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Re-Exportation

Goods leave the EU after temporary storage or processing.

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Inward Processing

Raw materials imported for processing and then re-exported without duties.

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Outward Processing

EU goods exported for processing and re-imported with reduced duties.

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Temporary Export

Items like artwork sent out temporarily (e.g., for exhibitions).

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Harmonized System (HS)

A worldwide system that helps countries use the same names and codes for products in international trade.

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Combined Nomenclature (CN)

The EU's version of product classification that adds extra details to the worldwide system. It includes more specific information needed for trade within Europe.

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Integrated Tariff (TARIC)

A complete list of EU import taxes and rules.

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Belgian Customs Tariff (TARBEL)

Belgium's own set of customs rules that work alongside the EU systems. It includes specific requirements that only apply in Belgium.

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Raw Materials

Basic, unprocessed goods like ores or agricultural products.

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Unworked Products

Slightly processed goods, such as untreated wood or crude metals.

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Semi-Finished Products

Intermediate goods used for further manufacturing, like steel sheets or fabric.

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Finished Products

Fully manufactured goods ready for consumption, such as cars or clothing.

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Customs Declaration

A standardized EU document used for declaring goods moving across borders, containing essential information for customs.

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Special Entry Code

A specific code used in Box 44 of the customs declaration to indicate additional requirements like permits or certificates needed for importing or exporting goods.

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Commodity Code

A system used by customs to classify goods based on their characteristics, which determines their tariff codes and potential duties.

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Green Status

A customs declaration status assigned to goods that have been approved for release without additional checks.

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Orange/Red Status

A customs declaration status assigned to goods that require further document or physical checks before release.

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Sampling

A process where customs officials can take samples of imported or exported goods to verify their nature or origin.

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Emergency Procedures

A set of procedures implemented when customs systems face outages or technical problems, ensuring the continuity of declaration processing.

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Customs Control

The process of validating customs declarations to ensure accuracy and compliance with regulations, leading to the assignment of a status to the goods.

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Harmonized System (HS) Codes

A system used to classify traded goods using a numerical code. It's a global standard, but the EU uses a 10-digit version called TARIC.

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HS Code: First 4 Digits

The first four digits of an HS code representing a broad product category. For example, code 10 begins with '10', indicating edible grains.

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HS Code: 6 Digits

The next two digits in an HS code that provide more specific details about the product within its category. For example, code 1001 refers to wheat.

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TARIC (EU Specific Codes)

The last four digits of an HS code used by the European Union (EU) to include tariffs and trade measures. It follows the first six digits of the HS Code.

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Binding Tariff Information (BTI)

A service provided by Customs authorities to companies where they receive a legally binding decision on how their goods should be classified under the Harmonized System (HS) codes.

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Dumping

An unfair trade practice where a company exports a product at a lower price to a foreign country than its own domestic market, sometimes even below production cost.

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Anti-Dumping Duties

A tool used by governments to protect their domestic industries from unfair competition from imports. They increase prices of imported goods, encouraging buyers to purchase domestic products.

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Quota System

A system that restricts the amount of specific goods imported into a country. It can be preferential, meaning some countries receive special treatment with lower duties on a limited quantity.

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Box 39

A record kept in Box 39 of a customs declaration. It refers to the quota numbers associated with the imported goods under a quota system.

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Sanitary and Phytosanitary (SPS) Controls

Measures implemented to ensure imported goods meet EU health and safety standards, often through inspections and certifications.

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Customs Value

The total value of goods declared to customs when importing into the EU. It includes the price of goods, transportation, insurance, and other charges.

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Transaction Value of Imported Goods

The actual price paid for goods during their sale for export to the EU. It's the most common method to determine customs value.

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Transaction Value of Identical Goods

A valuation method used when the exact price of imported goods is not available. It uses the price of identical products imported at the same time.

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Study Notes

EU Customs Union and Its Challenges

  • The EU Customs Union simplifies trade within the EU by removing customs taxes between member countries and using a unified external tariff for trade with non-EU countries.
  • It enforces health, environmental, safety, and security legislation.
  • Article 3 TFEU grants the EU full control over customs rules, competition, and related areas.
  • Article 28 TFEU establishes the customs union, eliminating internal customs charges and creating a shared tariff for non-EU trade.
  • Article 29 TFEU allows goods from outside the EU to move freely within the EU if customs duties are paid.
  • Article 30 TFEU prohibits customs charges between EU countries.
  • Article 32 TFEU helps the EU maintain fair trade competition.

Customs Legislation

  • Regulation No. 952/2013 (Union Customs Code) is the primary set of rules governing customs in the EU.
  • The UCC is supported by two additional regulations: Regulation No. 2015/2446 (Delegated Act) and Regulation No. 2015/2447 (Implementing Act).
  • The Common Customs Tariff (Council Regulation No. 2658/87) ensures consistent tariffs for goods traded with non-EU countries.
  • Customs authorities are national agencies that enforce customs rules, adhering to both EU-wide customs laws and national rules.

Organizational Framework

  • DG TAXUD (Directorate-General for Taxation and Customs Union) is the EU's tax and customs office.
  • The Customs Policy Expert Group (CEG) provides specialized advice to the European Commission on customs matters.
  • The Customs Code Committee implements and enforces customs rules and tariff decisions across EU member states.
  • The Trade Contact Group (TCG) serves as a forum for business representatives, trade organizations, and European Commission officials to discuss customs policies, procedures, and implementation of trade rules.

Customs Challenges

  • Ensuring EU countries uniformly follow customs rules;
  • Developing interoperable IT systems to improve efficiency and reduce costs;
  • Addressing trade disparities among member states;
  • Addressing evolving issues like e-commerce fraud, terrorism, and organized crime.
  • Maintaining dialogue with businesses to ensure policies remain relevant.

EU Customs Main Goals

  • Facilitating secure, compliant trade;
  • Developing innovative IT solutions;
  • Collaborating with other countries to prevent fraud and protect borders.

Import (Processes)

  • Entry Summary Declaration (ENS) is submitted when goods are loaded onto freight in a third country.
  • ENS provides information about the goods being transported.
  • After arrival in EU customs territory, goods are placed in temporary storage (e.g., airports, ports, borders).
  • Simplified declarations are submitted notifying customs to arrange temporary storage.
  • Customs declarations are required before goods can be moved to the EU market or other destinations.
  • Customs officials review declarations, assess duties, ensure EU regulations are met, and approve releases.

Export (Processes)

  • The declarant submits an export declaration electronically.
  • The declaration details goods being exported (type, quantity, and destination).
  • Customs officials inspect goods to confirm compliance, and match the declaration.
  • After export release, a pre-departure message notifies the designated office about departure.
  • The declarant receives printed transport documents to accompany the goods to the exit point.
  • Customs perform security checks at the export office.
  • Confirmation of exit and receipt of the export document (printed) confirms that the goods have officially left the EU.

Harmonized System (HS) and Customs Controls

  • Harmonized System (HS) helps classify products for international trade, provides uniform naming, and codes for products.
  • Combined Nomenclature (CN) provides additional details for trade within Europe.
  • Integrated Tariff (TARIC) is a complete EU import tax and rule list.
  • The Belgian Customs Tariff (TARBEL) are Belgium’s special customs rules.
  • Anti-dumping duties are a defense mechanism against unfair competition in trade where companies export at a cheaper price than their domestic market.
  • Quota systems limit the volume of specific goods imported.

Sanitary and Phytosanitary (SPS) Controls

  • Measures to ensure imported goods meet EU health and safety standards.
  • Inspections of food products to prevent pests or diseases.

Customs Value

  • The total value of goods declared to customs.
  • Includes costs of goods, transportation, insurance, and other charges.
  • Methods for determining customs values include Transaction Value of Imported Goods, Transaction Value of Identical Goods, Transaction Value of Similar goods.

Incoterms

  • EXW, FCA, CPT, CIP, DAP, DPU, and DDP are incoterms that outline responsibilities of both sellers and buyers in international trade transactions.

International Sanctions

  • Sanctions directly from European regulations for the EU
  • Types include embargoes on weapons, certain goods or technology, financial sanctions, and visa restrictions.
  • Exceptions to sanctions may be possible in cases of humanitarian goods and diplomatic travel.

Customs Declaration & Administration

  • Single customs declaration document that applies across all EU member states.
  • Supports tax collection on imports and VAT exemption for exports, with 54 boxes for information.

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