A tobacco traceability solution is an important tool for ensuring compliance with regulations related to the production and distribution of tobacco products.(EU TPD). Here are the key features and details of this system:

• Purpose of traceability: The main objective is to prevent the illegal trade in tobacco products, to ensure that all products on the market comply with regulatory requirements, and to protect consumers.
• Product identification: Each tobacco product has a unique identifier that allows it to be tracked from production to sale.
• Tracking system: This system involves collecting and storing data on every step in the supply chain. The data includes information about production, distribution, and sales.
• Technology: Various technologies such as QR codes, barcodes or RFID are used to allow for easy and fast product tracking.
• Regulation: European Union regulations, in particular the Tobacco Products Directive (2014/40/EU), stipulate the obligation to implement traceability systems for all Member States.
• Advantages of the system:
  • Consumer protection: Ensuring that consumers buy legal and safe products.
  • Fight against smuggling: Reduce the illegal tobacco trade, which brings higher tax revenues for the state.
  • Improved inventory management: More efficient inventory and logistics management for manufacturers and distributors.
• Challenges: Implementing such a system can be costly and complex, requiring cooperation between governments, manufacturers and distributors.

Overall, the traceability system for tobacco products is a key tool for ensuring transparency and legality in the tobacco industry.

Trade compliance software is a tool that helps companies comply with laws and regulations related to international trade. This software is crucial to ensure that businesses meet all regulatory requirements when exporting and importing goods. Here are the main features and benefits of such software:

• Process automation: The software helps automate the complex processes associated with business regulations, reducing the risk of human error.
• Regulatory Updates: Provides up-to-date information on changes in international trade regulations, ensuring that businesses are always compliant with applicable laws.
• Documentation Management: Enables efficient management and archiving of necessary documentation, such as licenses, certificates, and other important documents.
• Tracking and reporting: Offers tools to track business transactions and generate reports to help identify and address potential compliance issues.
• Integration with ERP systems: Many trade compliance software solutions integrate with existing ERP systems, improving data flow and increasing efficiency.
• Risk analysis: Helps identify and assess risks associated with business transactions, allowing businesses to take preventive measures.

The use of trade compliance software is particularly important for companies that operate in a global market where they encounter diverse and frequently changing regulatory requirements. This software not only ensures compliance with laws but also improves the overall efficiency of business operations.

Dual use in export is a term used to refer to products, technologies or services that may have both civil and military applications. This issue is particularly important in the context of international trade and security. Here are the key information:

• Definition: Dual use means that a product or technology can be used for both civil purposes and military or defence purposes.
• Examples:
  • Technology: Encryption software that can be used to secure data in the civilian sector, but also for military purposes.
  • Materials: Chemicals that can be used in industrial production, but also for the production of weapons.
  • Equipment: Drones that can be used for terrain mapping, but also for military reconnaissance.
• Regulation:
  • International agreements: There are various international agreements and regimes, such as the Wassenaar Arrangement, that regulate trade in dual-use items.
  • National legislation: Each country has its own laws and regulations that control the export of these items to prevent their misuse.
• Challenges:
  • Security risks: The potential for misuse of these technologies in conflicts or terrorist activities.
  • Business restrictions: Businesses must comply with complex regulatory requirements, which can slow down business processes.
• Relevance: Proper management and control of dual-use exports is key to maintaining international security and stability, while enabling legal and secure trade.

The topic of dual-use in export is complex and requires careful attention from both governments and businesses to ensure that technology and materials are not misused.

Trade compliance is a key concept in international trade that ensures that companies comply with all relevant laws, regulations, and rules regarding the import and export of goods. Here are the main points regarding trade compliance:

• Legislation and Regulation: Trade compliance involves complying with national and international laws, such as customs regulations, sanctions, embargoes, and other trade restrictions.
• Risk Management: Companies must identify and manage the risks associated with international trade to avoid legal penalties and financial losses.
• Documentation: Correct and accurate documentation is crucial to ensure compliance. This includes invoices, customs declarations, permits and licenses.
• Education and training: Employees of companies should be regularly trained on current trade compliance regulations and procedures.
• Technology and automation: Modern technology can help automate trade compliance processes, minimizing the risk of human error and increasing efficiency.
• Internal controls and audits: Regular internal controls and audits help identify and correct any inconsistencies in processes.

Trade compliance is therefore an essential part of successful and legal international trading, helping to protect companies from legal and financial risks.

A digital product passport is a tool that provides detailed information about a product, its composition, origin and life cycle. This concept is increasingly used in various industries, especially in the context of sustainable development and the circular economy.

Key elements of a digital product passport:

• Product identification: Each product has a unique identifier that allows it to be tracked throughout the supply chain.
• Ingredient Information: Details of the materials and chemicals contained in the product, which helps with recycling and ensuring safety.
• Origin and production: Data on the place and method of production, including information on suppliers and production processes.
• Lifecycle: Information about the product's life, repair, reuse, and recycling options.
• Sustainability: Assessing the environmental impact of a product and its compliance with environmental norms and standards.

Advantages of Digital Product Passport:

• Transparency: Consumers have access to detailed product information, which encourages informed purchasing decisions.
• Sustainability: It helps businesses and consumers reduce their environmental footprint by encouraging recycling and minimizing waste.
• Regulations and standards: Facilitates compliance with international regulations and standards related to safety and sustainability.

The digital product passport is becoming a key tool for businesses seeking to improve their sustainability and environmental responsibility, and for consumers who want to be better informed about the products they buy.

The European Union Tobacco Products Directive (TPD) is a legislative framework that regulates the manufacture, presentation and sale of tobacco products within the EU. The aim of this directive is to protect the health of citizens, in particular young people, and to ensure a high level of protection of public health. The following are the key points of this directive:

• Restrictions on advertising and promotion: The Directive prohibits the advertising and promotion of tobacco products in order to reduce their attractiveness, especially for young people.
• Graphic health warnings: Packaging must display graphic health warnings that cover at least 65% of the front and back of cigarette and roll-your-own tobacco packages.
• Prohibited flavours: The Directive prohibits the use of characterising flavours, such as menthol, which could make tobacco products more attractive.
• Track and trace: Establishing a system to track and trace tobacco products to prevent illegal trade.
• Electronic cigarettes: The directive also sets out rules for electronic cigarettes, including the maximum permitted nicotine concentration and the volume of cartridges.
• Ingredient disclosure: Manufacturers must disclose the ingredients of their products and adhere to strict labelling requirements.

The Tobacco Products Directive has been updated several times, with the latest changes coming into force in 2021, and is binding on all EU Member States. These states must ensure that their national legislation complies with this directive.

The track and trace system for tobacco products is a key part of the European Union's Tobacco Products Directive -TPD. This system was introduced to combat the illegal trade in tobacco products and to ensure that all products on the market are legal and meet the standards set. Here are the main elements of this system:

• Unique identifier: Each tobacco package must have a unique identifier that allows it to be tracked from the manufacturer to the retail store.
• Central database: All information on the movement of tobacco products is stored in a central database that can be used by control authorities to monitor and verify the legality of products.
• Transaction Records: Manufacturers, importers, and distributors are required to keep detailed records of all transactions involving tobacco products, allowing for traceability and verification of the origin of the products.
• Mandatory registration: All entities involved in the tobacco supply chain must be registered and approved by the competent authorities.
• Regular audits: The system is regularly reviewed and audited to ensure its effectiveness and to detect any deficiencies or attempts to circumvent the rules.

This track and trace system is designed to enhance transparency and accountability throughout the supply chain of tobacco products, thereby reducing the risk of illegal trade and protecting consumers' health.

Tracking and tracing in the food industry

What is it?

Tracking and tracing are processes that help track the movement and history of food from production to sale. This includes all the steps that food goes through, such as production, packaging, transportation and sale.

Why is it important?

• Food safety: it helps to quickly identify and remove unsafe food from the market, protecting people's health.
• Quality: It ensures that food meets certain quality standards.
• Consumer confidence: Consumers have more confidence in products that can be tracked from start to finish.

How does it work?

• Technology: Various technologies such as barcodes and RFID (radio frequency identification) are used to track products.
• Databases: Food information is stored in databases where it can be easily traced. Benefits for companies: Efficiency: Helps companies better manage inventory and improve logistics.
• Reputation: Companies that pay attention to tracking and tracing can gain a better reputation in the market. In this way, tracking and tracing helps keep food safe and of good quality for everyone.

EU-Chile agreement

• Validity: The agreement came into force in February 2025.
• Relevance: It helps the EU expand export and import markets, reduces risks and strengthens economic ties.
• Chile: One of the largest economies in Latin America, the EU's main partner in the region.
• Trade relations: In 2021, trade between the EU and Chile amounted to €16.9 billion in goods and €6.7 billion in services.
• Trade growth: From 2002 to 2021, trade between the EU and Chile grew by 142%.

Key benefits of the agreement:

• Elimination of tariffs: 99.9% of European products will be duty-free, which could increase exports by €4.5 billion.
• Access to raw materials: Better access to lithium, copper and hydrogen for the green economy.
• Conditions for services: Simplification for European companies in telecommunications, maritime transport and financial services.
• Investment: A level playing field between European and Chilean investors.
• Public procurement: Better access to contracts in Chile for European companies.
• Supporting small businesses: Reducing administrative burdens and supporting smaller firms.

Modernisation of the agreement:

• Legal instruments: Two instruments – the Advanced Framework Agreement and the Interim Trade Agreement (ITA).
• Trade and investment: Elimination of tariffs on most European products, better rules of origin.
• Digital commerce: E-commerce support, data protection and digital transactions.
• Sustainability: Commitments to environmental protection and labour rights.

Other aspects:

• Lithium: The EU gets access to Chilean lithium on fair terms.
• Hydrogen: The agreement facilitates trade in renewable hydrogen.
• Geographical Indications: Protection of 216 European products in Chile, such as Parmigiano Reggiano and Bayerisches Bier.

This agreement strengthens trade relations between the EU and Chile, promoting economic growth and sustainable development.

The carbon tariff, also known as CBAM, is becoming a key issue in trade policy and environmental sustainability. This new instrument aims to reduce greenhouse gas emissions and support the transition to a more sustainable economy. What are its implications for entrepreneurs and companies? How to prepare for this change? In the following article, we look at all the aspects you should know.

What is a carbon tariff (CBAM)?

A carbon tariff, or CBAM (Carbon Border Adjustment Mechanism), is a newly introduced European Union instrument that aims to reduce greenhouse gas emissions. This mechanism targets imports of goods that have high CO2 emissions and ensures that third country producers who do not meet the same environmental standards as the EU face additional costs. How does CBAM work? The CBAM works on the principle of additional charges for CO2 emissions that are generated when goods are produced outside the EU. If a company imports goods that have been produced with high emissions, it will have to pay an additional duty that corresponds to the amount of CO2 emissions associated with the production of those goods. The aim is to level the playing field between European and foreign producers and to encourage greener production practices.

Why is CBAM important?

CBAM is important for several reasons: Environmental protection: Through CBAM, the EU aims to reduce overall greenhouse gas emissions and contribute to the climate goals set out in the Paris Agreement. Promoting fair competition: It allows European companies to compete in the market with products that are produced with lower environmental standards. Raising awareness of sustainability: CBAM encourages companies to rethink their production processes and switch to sustainable methods. How will CBAM affect entrepreneurs? The carbon duty presents a number of challenges but also opportunities for entrepreneurs. It is important for entrepreneurs to understand how CBAM will affect their business models and how to prepare for this change. Challenges associated with CBAM Increased costs: companies that import high-emitting goods may face increased customs costs, which may affect their price competitiveness. Need to track emissions: Businesses will need to start tracking CO2 emissions associated with the production and import of their products, which may require investment in new technologies and processes. Regulation and compliance: Companies will have to comply with new regulations and rules, which may impose additional administrative burdens. Opportunities for businesses Innovation and sustainability: CBAM can encourage companies to invest in more sustainable technologies and processes, which can lead to long-term savings and improved brand image. New markets: With the growing emphasis on sustainability, new markets for green products and services are opening up. Improving competitiveness: Companies that adapt and invest in sustainability can gain a competitive advantage in the marketplace. How to prepare for CBAM? Preparing for CBAM requires a strategic approach and careful planning.

Here are some steps that businesses can take to prepare for this change.

1. Monitor emissions The first step is to start tracking the CO2 emissions associated with the production and importation of your products. You can start by identifying key areas where emissions are high and focus on reducing them.

2. Invest in sustainability Consider investing in technologies and processes that reduce CO2 emissions. This may include switching to renewable energy sources, improving energy efficiency or switching suppliers to those that comply with environmental standards.

3. Education and training Ensure that your employees are informed about CBAM and its implications for your business. Education programs and training can help your team better understand and adapt to these changes.

4. Collaborate with experts Consider working with experts in environmental standards and regulations. These experts can help you better understand CBAM and design strategies for effective implementation. Conclusion The carbon tariff (CBAM) represents a significant change in EU trade policy and has the potential to affect entrepreneurs and companies in many areas. While it brings some challenges, it also offers opportunities for innovation and sustainability. The key to success is a proactive approach and a willingness to adapt to new conditions. If entrepreneurs prepare for these changes and invest in sustainable technologies, they can become leaders in environmentally friendly business.

The Corporate Sustainability Reporting Directive (CSRD) is a revolutionary step towards greater transparency and corporate responsibility in the area of sustainability. This new regulation brings significant changes to how companies report on their environmental, social and governance (ESG) practices. What are the implications of the CSRD for businesses and how can they prepare for this change? In the following article, we look at the key aspects of this directive.

What is the CSRD?

The CSRD, or Corporate Sustainability Reporting Directive, is a new European Union directive that replaces the previous Non-Financial Reporting Directive (NFRD). The CSRD aims to ensure that companies provide relevant, reliable and comparable information about their sustainability practices. This directive targets a wider range of companies and emphasises transparency on environmental, social and governance responsibilities.

The main objectives of the CSRD

The CSRD has several key objectives:

Increase transparency: the CSD aims to ensure that companies provide clear and understandable information about their sustainable practices, which will help investors and other stakeholders better understand their impact on society and the environment.
Promoting sustainable development: the CSRD supports the transition to more sustainable business models by requiring companies to take environmental and social considerations into account in their decision-making.
Improving comparability: The new Directive sets uniform reporting standards, allowing better comparisons between different companies and sectors.
Who must follow the CSRD?

The CSRD applies to a wide range of companies, including:

Large companies with more than 250 employees.
Companies with a turnover of more than €40 million or a balance sheet total of more than €20 million.
All listed companies, including small and medium-sized enterprises (SMEs).
What are the main changes compared to the NFRD?

The CSRD introduces several major changes compared to the previous NFRD:

1.

The CSRD covers more companies than the NFRD, which means that more companies will have to report on their sustainable practices. This includes not only large companies, but also smaller companies that meet certain criteria.

2. Tightening reporting requirements

Under the CSRD, companies will be required to provide more detailed information about their ESG practices, including:

Sustainability targets and their achievement.
Environmental protection measures.
Impacts on employees and the community.
3. Verification of information

The CSRD requires sustainability information to be verified by independent third parties, which increases the credibility of the reported data and reduces the risk of greenwashing.

How will the CSRD affect businesses?

The CSRD presents both challenges and opportunities for businesses. It is important for entrepreneurs to understand how the CSRD will affect their business models and how to prepare for this change.

Challenges associated with the CSRD

Increased administrative burden: companies will need to invest in new systems and processes to track and report their ESG data, which may incur additional costs.
Staff training required: Given the new reporting requirements, staff will need to be trained in sustainability and reporting.
Increased expectations from investors: Investors will expect more detailed and transparent sustainability information, which may require changes in business practices.
Opportunities for entrepreneurs

Improved reputation: Companies that actively engage in sustainability and transparency can gain the trust of customers and investors.
Innovation and competitiveness: Adapting to new standards can lead to innovation and improved market competitiveness.
Access to new markets: Sustainable practices can open up new markets and opportunities for growth and expansion.
How to prepare for CSRD?

Preparing for CSRD requires a strategic approach and careful planning. Here are some steps entrepreneurs can take to prepare for this change.

1. Assess the current state of play

Start by assessing what sustainability information you already have and what additional data you will need to meet CSRD requirements.

2. Develop a sustainability strategy

Consider how you can improve your sustainable practices and develop a strategy that includes sustainability goals and measures.

3. Invest in technology

Consider investing in technology to help you track and report your ESG data more effectively.

4. Employee training

Ensure that your employees are informed about the CSRD and its requirements. Educational programs and training can help your team better understand and adapt to these changes.

Conclusion

The CSRD represents a significant change in sustainability reporting and has the potential to impact businesses in many areas. While it presents some challenges, it also offers opportunities for innovation and sustainability. The key to success is a proactive approach and a willingness to adapt to new conditions. If businesses prepare for these changes and invest in sustainable practices, they can become leaders in environmentally friendly business.

The European Union has decided to adopt a new regulation known as the European Union Deforestation Regulation (EUDR) to combat deforestation and forest degradation. This regulation has far-reaching implications for businesses that trade in products related to forest resources. What are the key aspects of EUDR and how to prepare for this regulation? In the following article, we look at all the important information you need to know.

What is EUDR?

EUDR, or EU Deforestation Regulation, is a legislative measure to ensure that products marketed in the EU are not linked to deforestation or forest degradation. It covers a wide range of products, including palm oil, coffee, cocoa, timber and other raw materials that may contribute to deforestation.

The main objectives of the EUDR

EUDR has several key objectives:

Combat deforestation: regulation aims to reduce deforestation and forest degradation, which are key to biodiversity conservation and climate change mitigation.
Increasing transparency: EUDR requires companies to provide clear and understandable information on the origin of their products, which will help consumers make more informed choices.
Promoting sustainability: The regulation promotes sustainable practices in agriculture and forestry, which contributes to the long-term conservation of natural resources.
Who must comply with EUDR?

EUDR applies to a wide range of businesses, including:

Producers and importers of products related to forest resources and the raw materials or products mentioned above.
Traders and distributors who market these products in the EU.
Small and medium-sized enterprises (SMEs) that trade in these products.
What are the main changes brought about by the EUDR?

EUDR brings several major changes that will affect the way businesses trade forest resource related products.

1. The requirement for proof of origin

Under EUDR, companies will have to prove that their products are not linked to deforestation. This includes providing documentation on the origin of raw materials and supply chains.

2. Increased traceability requirements

Companies will need to implement traceability systems that allow products to be traced from their origin to the final consumer. This includes collecting data on suppliers and production processes.

3. Verification and audit

EUDR requires that information on the origin and sustainability of products is verified by independent third parties, which increases the credibility of the reported data and reduces the risk of greenwashing.

How will EUDR affect businesses?

EUDR brings a number of challenges but also opportunities for businesses. It is important for businesses to understand how EUDR will affect their business models and how to prepare for this change.

The challenges of EUDR

Increased costs: Implementing EUDR requirements may mean additional costs for administration, staff training and investment in new traceability systems.
Need for staff training: Due to the new requirements, companies will need to train their staff in regulatory compliance and traceability.
Increased expectations from consumers: Consumers will expect greater transparency and accountability from companies, which may require changes in marketing strategies.
Opportunities for businesses

Improved reputation: Companies that actively engage in sustainability and transparency can gain the trust of customers and investors.
Innovation and competitiveness: Adapting to new standards can lead to innovation and improved competitiveness in the market.
Access to new markets: Sustainable practices can open up new markets and opportunities for growth and expansion.
How to prepare for EUDR?

Preparing for EUDR requires a strategic approach and careful planning. Here are some steps entrepreneurs can take to prepare for this change.

1. Assess the current state of play

Start by assessing what information you already have on product origin and sustainability and what additional data you will need to meet EUDR requirements.

2. Develop a sustainability strategy

Consider how you can improve your sustainable practices and develop a strategy that includes sustainability goals and measures.

3. Invest in technology

Consider investing in technology to help you track and report your sourcing data more effectively.

4. Staff training

Ensure your staff are informed about EUDR and its requirements. Education programs and training can help your team better understand and adapt to these changes.

Conclusion

EUDR represents a significant change in the regulation of trade in forest-related products and has the potential to affect businesses in many areas. While it brings some challenges, it also offers opportunities for innovation and sustainability. The key to success is a proactive approach and a willingness to adapt to new conditions. If businesses prepare for these changes and invest in sustainable practices, they can become leaders in environmentally friendly business.

Customs barriers between the EU and China are an important element shaping the trade relationship between the two economic powers. In this article, we explore what tariff barriers are, their historical background and how they affect businesses and consumers. Introduction to customs barriers Tariff barriers are used to regulate the import and export of goods between countries. These barriers can take various forms such as tariffs, quotas and administrative barriers. In the case of the EU and China, tariff barriers are often the subject of negotiations and disputes that affect trade policy on both sides. What are tariff barriers? Tariff barriers are measures that governments put in place to protect the domestic market from foreign competition.

The most common types of tariff barriers include:

Tariffs: Taxes on imported goods that increase their price.

Tariff quotas: Limits on the amount of goods that can be imported without additional tariffs.

Regulatory barriers: Various administrative and technical standards that make imports more difficult.

History of EU-China tariff barriers The history of tariff barriers between the EU and China is influenced by many factors, including political and economic relations. Following China's accession to the World Trade Organisation (WTO) in 2001, there was some relaxation of tariff barriers, but in recent years the situation has become more complicated again, mainly due to trade conflicts and concerns about unfair competition. Main types of tariff barriers There are several main types of tariff barriers that affect trade between the EU and China: Tariffs and their impact on trade Tariffs are one of the most common tools used by governments to protect their domestic market. In the case of the EU and China, high tariffs on imported goods can lead to higher prices and reduced demand for these products. Political and economic reasons for tariff barriers Political and economic factors play a key role in the introduction of tariff barriers. These barriers are often motivated by a desire to protect the domestic economy, secure jobs and balance trade deficits. For example, the EU is concerned that Chinese goods are subsidised, which reduces the competitiveness of European products. How tariff barriers affect consumers Customs barriers can have a negative impact on consumers who face higher prices and limited choice of goods. For example, if high tariffs are imposed on imported electronic products, consumers may be forced to pay more for technology, which can affect their standard of living. Impact of tariff barriers on businesses Businesses, especially those that rely on imports of raw materials or components, can be significantly affected by tariff barriers. These barriers can increase the cost of production and reduce competitiveness in the market, which can result in redundancies or even the closure of some facilities. Examples of industries affected by customs barriers Some sectors are more affected by customs barriers than others. For example:

Automotive: High tariffs on imported cars can lead to higher prices and reduced demand.

Technology: Tariffs on electronics can affect the availability and prices of advanced technologies in the market.

How the EU and China are trying to overcome tariff barriers

The EU and China are trying to find ways to overcome tariff barriers and improve trade relations. International trade agreements and dialogues on trade practices are key tools for removing trade barriers. International trade agreements and their importance These agreements aim to eliminate tariffs and quotas, which should lead to more trade and economic growth. However, negotiating these agreements is often complex and can take a long time, making it difficult to reach consensus. The future of EU-China tariff barriers The future of EU-China tariff barriers remains uncertain. Political changes, economic factors and global events may affect trade relations and the implementation of tariff barriers. It is likely that both sides will continue negotiations to remove barriers, but striking a balance between protecting the domestic market and promoting free trade remains a challenge.

Conclusion: How trade relations are evolving Customs barriers between the EU and China play a key role in trade relations between the two regions. It is important to monitor how the situation evolves, as changes in customs policies can have far-reaching consequences for businesses and consumers. Both sides have an interest in improving trade relations, but striking a balance between protecting the domestic market and promoting free trade remains a challenge.

The need to comply with EUDR-related obligations is slowly coming for all entities that import or trade with commodities such as timber, rubber, cattle, cocoa, coffee, soya and oil palm (also products derived from them)

EUDR is an EU regulation, which means that it is a directly applicable regulation. In other words, the EUDR obligations apply automatically, without the need to implement them through national law. Nevertheless, this regulation contains elements that are rather typical of directives – it contains only general assumptions and a basic list of measures and sanctions that Member States may impose on economic operators and traders. Specific measures and sanctions (including their amount) are thus decided by individual states. The first category is precautionary measures, for which the Regulation provides minimum guidance. These are immediate measures when a possible violation of relevant commodities or products is detected under the Regulation. These measures include confiscation and, where appropriate, suspension of their placing on the market or making available on the market or their export. Another category is corrective measures that an economic operator or trader must take at the request of the competent authorities. Such measures include, for example, correcting formal deficiencies, preventing the placing on the market or making available or exporting the relevant product, withdrawing the product from the market or donating it to charity, or disposing of it. If the economic operator or trader fails to take such corrective action, they shall be taken by the competent authorities. It is important to remember that remedies do not serve as a substitute for penalties – they can be imposed alongside them. Penalties must be effective, proportionate and dissuasive under the Regulation. As the EUDR provides only a minimal list of sanctions and leaves the final decision on their form to individual Member States, these sanctions may vary within the European Union. The minimum range of sanctions includes, for example, fines, confiscation of products or income earned, temporary exclusion from public procurement and public financing, temporary ban on marketing, supply or export of commodities and products, and prohibition to carry out certain activities.

In December 2023, new rules for the PEM Agreement were adopted, which aim to increase trade between the European Union and neighbouring countries in the Pan-Euro-Mediterranean (PEM) region. The rules of origin will apply from 1 January 2025 and will cause changes to all preferential trade agreements between 24 countries or countries. Parties to the PEM Agreement.

This change in rules of origin concerns: the European Union, Iceland, Liechtenstein, Norway, Switzerland, Faroe Islands, Turkey, Morocco, Algeria, Tunisia, Egypt, Israel, Jordan, Lebanon, Palestine (this designation should not be construed as recognition of a Palestinian state and is without prejudice to the individual positions of Member States on this issue), Georgia, Republic of Moldova, Ukraine, Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia and Kosovo.

Trade with these countries amounted to around €700 billion in 2022, half of the EU's preferential trade.

These provisions will make it easier for products to benefit from trade preferences such as:

• simpler product-specific rules, such as the removal of cumulative requirements, thresholds for local added value, better tailored to the EU's production needs and the new twin transitions for textiles;

• Increased tolerance for non-originating materials from 10% to 15%;

• Introduction of 'full' cumulation, whereby the production operations required to establish the origin of most products can be split between several countries;

• Duty drawback (duty drawback on imported parts) for most products.

Regulation (EU) 2023/1115 of the European Parliament and of the Council, the so-called "Regulation against deforestation and soil degradation", directly or indirectly affects many companies. To meet the requirements of this legislation, it is necessary to start by performing an analysis of the product portfolio, logistics, trade flows, contractual relationships with business partners, etc. Subsequently, sophisticated IT solutions that are created specifically for EUDR can be used. It is only necessary to start working on this issue as soon as possible, as the obligation to report to authorised authorities is coming. Do not hesitate to contact us!

In 2023, Regulation (EU) 2023/1115 of the European Parliament and of the Council, the so-called "Regulation against Deforestation and Soil Degradation", came into force, replacing the Timber Regulation 995/2010 (EUTR). The regulation applies to commodities such as coffee, cocoa, beef, rubber, soy, palm oil and timber products. Economic operators will be forced to collect and provide data on the origin of products or commodities that are traded in the EU. To ensure compliance with all the requirements of the Regulation, it is possible to use advanced applications developed specifically for this purpose.

In 2021, the European Commission adopted a proposal for a carbon adjustment system for imports of selected commodities into the EU. The CBAM (Carbon Border Adjustment Mechanism) regulation applies to all entities that import iron and steel, aluminium, cement, electricity, hydrogen, fertilisers, certain precursors (active cathode materials) and, to a limited extent, downstream products (e.g. screws and bolts) from third countries to EU. From October 2023, a transitional period has begun, in which importers will have to collect information on emissions,  generated during the production of imported products and then report this data to the administrative authority, which is the national customs office. In addition, after the end of the transition period, each entity will have to register with the CBAM authority and, as an approved declarant, submit annual reports, as well as pay for the emissions contained in imported goods. This is a relatively complex issue, that is very likely to evolve over time and the related legislative developments will need to be closely monitored. 

The current system for monitoring the production and circulation of cigarettes and RYO tobacco in the EU, Track and Trace, will be extended to other tobacco products such as cigars from May 2024. By this date, it must have already been implemented. If this topic  also touches your business, do not hesitate to contact us with any question.

In the context of the current situation of mutual relations with the Russian Federation, strict rules have been introduced  for EU exports. The European Commission has published a list of companies and goods subject to specific sanctions. For exports to Russia, it is first of all necessary to monitor the possibility of the so-called dual use of the goods. For more detailed information regarding specific types of goods and demands for exports, do not hesitate to contact us.

The Treaty on reciprocal trade between EU and other Mediterranean states, EFTA States (Norway, Iceland, Switzerland, and Liechtenstein) and the Faroe Islands, the so-called PEM Convention, which aims to facilitate trade between them, inter alia, by a system of recognition of the origin of goods, was modified again in September 2021. Some new or updated rules for determining the origin of goods when using components of a traded product originating in third countries apply. If you need more information about the PEM convention, do not hesitate to contact us. 

In September 2021, a new, revised EU regulation on trade in dual-use items entered into force. These are types of goods that are intended for legal, civilian use, can be used at the same time, for example, for the production of weapons. For trade in this type of goods, special licenses are required, or other obligations are fulfilled. The new regulation concerns, inter alia, exporters of dual-use items. The provision of software or various related services may also be subject to licensing proceedings. Violation of the rules on trade in dual-use items means the risk of heavy fines and, where appropriate, criminal liability. For more detailed information about trade in this type of goods, do not hesitate to contact us.

In the context of Regulation (EU) 2019/2152 of the European Parliament and of the Council and Commission Implementing Regulation (EU) 2020/1197, changes to intrastat reporting will enter into force from 1 January 2020. The changes concern, for example,  the codes of the nature of the transaction, the indication of the customer's TAX ID in the direction of sending the goods , or the indication of the country of origin of the goods. In addition, new option will be introduced- so called simplified reporting for reporting parties with an annual sent/received  goods volume of up to CZK 20 million. The limit for the aggregate reporting of small consignments is also increased to EUR 400.

Safeguard measures for imports of steel and iron products into the EU are extended until mid-2024. However, in accordance with the legislation in place, it is possible to benefit from a partial or total suspension of duty and to benefit from the regularly opening tariff quotas. Access to the quota must be requested by the importer or his customs representative in the customs declaration. The quotas set are drawn gradually (by the FIFO method), so it is not possible to "book" the duty reduction in advance in any way. Therefore, where the suspension of duties is conditional on a terminal use regime in the EU, only entities authorized by that customs procedure may benefit from it. Quotas can be monitored on the European Commission's website, in the QUOTA database.

When goods are imported into the EU from third countries, consignments are now not subject to customs duties or VAT at low levels (up to EUR 22). With effect from 1 July 2021, these consignments will be subject to VAT. Consignments up to EUR 150 will continue to be exempt from customs duties, but will be subject to customs clearance and will have to be lodged with a customs declaration. For more information, please do not hesitate to contact us!

While it may seem that the tobacco industry is on a downward trend and more and more consumers are turning away from tobacco products, the opposite is true. In particular, due to new types of products, such as heated tobacco products like Heets for example, the entire industry is growing. However, the big problem for the tobacco industry is the illegal market. In order to eliminate the illegal trade with tobacco products, there is a very sophisticated system within the EU to monitor tobacco products along their entire route from the factory to the final consumer. Thanks to this system, it is possible to find not only the manufacturer, but also the specific production line, batch or way in which the product reached the consumer by simply scanning the code from the cigarette packaging. It is not yet an obligation to use the Track and Trace tracking system for cigars, for example. Since 2024, however, the obligation to participate in track and trace has been extended to cigars, cigarillos and other tobacco products. The implementation of this system is financially demanding and time consuming and many legislative and technical regulations need to be met. In case you need more information on this topic, do not hesitate to turn to us!

The situation of trade between the UK and the States of the European Union is still not stabilised and there are supply delays. According to a survey of 350 managers of logistics and retail companies, there are delays in deliveries of several working days or more. There are outages in the supply to final customers, which is also accompanied by price increases. Many companies also face complications in the handling of customs procedures. For the time being, imports into the United Kingdom from European Union countries is at least be subject to a transitional period until June 2021, during which it is not necessary to make a customs declaration immediately upon importation. Customs clearance may be submitted additionally.

Excise duty rates will change from January 2021. The changes in tariffs mainly affect alcohol and tobacco products. In the case of excise duty on cigarettes, both specific as well as ad valorem excise tax component shall be increased. Other obligations, such as changing the type of excise tax stamp are also related to the changes. The amendments to the Excise Tax Act also affect the operators of tax warehouses. If these changes also apply to your activities and you need to consult on the impact of the changes, do not hesitate to contact us!

A major free trade agreement was signed as part of the Association of Southeast Asian Nations (ASEAN) summit held in Hanoi, Vietnam, in mid-November 2020. A total of 15 Southeast Asian countries, along with Australia and New Zealand, signed the agreement, called the Regional Comprehensive Economic Partnership (RCEP). According to Bloomberg, this is the largest trade agreement involving a market with a population of 2.2 billion and a total GDP of almost USD 26 trillion. The agreement also affects services, investment, information technology, e-commerce and intellectual property. 

The Brexit transition period will end on 31 December 2020. Trade between the European Union and the United Kingdom shall be governed by a free trade agreement or, if the terms of this Agreement are not mutually accepted, import and export shall be governed by the terms of the World Trade Organization. From a customs point of view, it is therefore necessary to prepare yourself for the standard customs process, linked to the possible payment of customs debts, i.e. payments of customs duties and VAT. Of course, the changes will also affect excise duties. It will be necessary to apply for EORI number and declare the JSD and VDD documents on import or export. Trade will no longer be reported in the Intrastat system.

A new announcement has been released in May 2020. It is dedicated for EU based companies which export or plan on export to ESA territory. It is based on agreement between EU and ESA countries.

By 31.8.2020, all ESA countries provide preferential customs clearance procedure for products of EU origin. EU exporters must provide EUR1 document or „EU goods origin declaration“ on export invoice. This regime is valid for products of value not exceeding 6000 EUR.

Since 1.9.2020 the preferential customs clearance will be provided only for EU exporters registered in REX system. A need for „EU goods origin declaration“ on export invoice and validity for products of value not exceeding 6000 EUR remain the same.

You can contact our office to get more information.

The British parliament has approved the brexit and the United Kingdom can leave the European Union by 31.1.2020. After the brexit, the United Kingdom will not use customs system of European union anymore. However, there is a transition period until 31.12.2020. During this transition period, the trade with the United Kingdom will be processed within intrastat system.

There are new excise tax rates valid in Czech republic since the beginning of year of 2020. Previous rates have been valid for several years. Ministry of Finance of Czech republic made a decision, following an increasing average monthly incomes, to increase excise taxes on cigarettes from 27% to 30% in case of percentage part of tax and from 1,46 CZK to 1,61 CZK in case of fixed part of tax. In case of alcohol, excise tax on 0,5 lit. of 40% alcohol increased from 57 CZK to 64,50 CZK. Also excise tax on cigars, tobacco for smoking and smoke-free products increased by app. 10%.

We have opened new office in Kolín, in close proximity of Kolin customs office. We provide services like customs clearance for both import and export, intrastat reporting, customs advisory and all documentation related with customs. We are opened on working days 8 a.m. to 3 p.m. or upon agreement. If you plan on import or export at Kolin customs office, do not hesitate to get in touch with us!