Latest edition of EY Belgium’s customs and excise update | July 2024

Digital portal for requesting the refund of excise duties on professional diesel

As of 1 June 2024, requests for refunds of excise duties paid on professional diesel must be lodged electronically. Throughout the transitional period extending until 31 December 2024, paper forms will still be accepted. To submit the digital form, Belgian companies must use the PDIE application, while foreign companies must use PDIE 2 application. The access to the application is governed through CSAM, therefore foreign persons will be routed to the ForReg application for registration purposes.
 

EU adopts 14th package of sanctions against Russia

On 24 June 2024, the Council of the European Union adopted a new package of sanctions against Russia, further targeting the country’s access to Western sensitive technology that could enhance its military capabilities. These measures are designed to focus on high-value sectors of the Russian economy, like energy, finance, and trade. The measures particularly aim to make circumventing EU sanctions more difficult.  

The EU also intends to further cut Russia’s revenues from exports to the EU. This new package of sanctions stands out from the previous ones as it introduces measures in relation to the sector of liquified natural gas (or LNG). More precisely the following prohibitions are introduced:

• Prohibition to export to or invest in LNG projects under construction in Russia. 
• Prohibition of reloading services for the purpose of transshipment operations of LNG originating in Russia or exported from Russia, unless the LNG is destined to the EU. 
• Prohibition to import LNG originating in Russia or exported from Russia if the import is done through LNG terminals that are not connected to the interconnected natural gas system. 

Given that the majority of EU’s LNG import terminals provide regasification and send-out services, and are connected to a gas pipeline network, this measure mainly ensures that Russian LNG coming into the EU stays in the EU. 

Another significant change is the enhancement of anti-circumvention measures as EU companies will have to “do their best efforts” to ensure that their owned or controlled non-EU companies do not participate in activities that undermine the sanctions. Moreover, the so-called “no-Russia clause” is extended to Intellectual Property Rights transfers related to Common High Priority items (CHP). EU companies and their foreign subsidiaries must also perform due diligence to prevent CHP goods reaching Russia. 

Some of the other measures introduced in the 14th package are: 

• New export restrictions on items which might contribute to Russia’s military and technological enhancement (Annex VII), and on industrial goods (Annex XXIII), e.g., cellulose products, chemicals including chemicals for batteries, vehicle parts, excavating machinery, video/audio equipment, electrical equipment, radios, monitors, microwave amplifiers, digital flight data recorders. 
• An introduction of an import ban of helium as it generates significant revenues for Russia.  
• New items in the list of Common High Priority items for which the “no-Russia clause” applies. 
• An exemption allowing EU economic operators to omit the “no-Russia clause” when concluding a public contract with a public authority or an international organization of a third country. 
• A requirement for EU economic operators to inform the competent authority of the member state where they are established of any public contract that benefits from the exemption within a period of two weeks of contract conclusion. 
• Obligation to have adequate remedies in agreements for violation of “no-Russia clause” and obligation to inform Member States’ competent authorities of such violations. 
• Prohibition of port access for certain listed vessels. 
• Prohibition for any company owned 25% or more by Russian persons to transport goods by road in the EU. 
• An amendment of the import ban of Russian diamonds and postponement of traceability based evidence.   

It should be noted that in terms of previous measures aimed at imports of iron and steel products, Liechtenstein has been added to the list of partner countries applying equivalent measures as introduced in the 12th package. As a result, no Mill Test Certificate or alternative proof is required for imports from Liechtenstein.  

Iceland has also been included in the list of partner countries applying an equivalent set of export control measures to those outlined in the Regulation. 
 

EU increased tariffs on certain agricultural products from Russia and Belarus

Following a proposal by the European Commission, the Council of the European Union has decided to increase the tariff on imports of grain and other agricultural products originating from Russia and Belarus. These increased tariffs are the European Union's response to the substantial increase in imports of these products since the escalation of the conflict between Russia and Ukraine.  

Effective from 1 July 2024, targeted products that originate in or are exported directly or indirectly from the Russian Federation and the Republic of Belarus will be subject to tariff measures (mainly ad valorem duty rate of 50%) with the objective to stop the imports from Belarus and Russia in practice. These measures also apply to products for which a quota had previously been established.
 

EU prolongs steel safeguard measure until June 2026

The European Commission has adopted and published an Implementing Regulation which prolongs the safeguard measure on the import of certain steel products. Initially introduced in July 2018 for a three-year term, the safeguard measure has been subject to multiple reviews and modifications. This measure's duration has been extended by two more years and is now set to expire in June 2026.   

The measure takes the form of tariff-rate quotas, meaning that a predetermined quantity of a product can be imported at a normal duty rate, and a 25% additional duty is levied on imports exceeding this quota. The quantity of the quota depends on the specific product category and country of origin. The products subject to this measure are categorized into 26 steel product categories, ranging from CN code 7208 (Flat-rolled products of iron or non-alloy steel) to CN code 7306 (Other tubes, pipes, and hollow profiles), with categories further allocated by country. Among other changes, the list of countries included in the scope has been amended, and the CN codes for certain product categories have been updated. 

The new regulation entered into force on 1 July 2024 and is currently set to expire on 30 June 2026.
 

New autonomous tariff suspensions and tariff quota applicable from 1 July 2024

On 28 June 2024 and 4 July 2024, the EU published Council Regulations 2024/1829 and 2024/1852 amending the existing Regulations on respectively tariff quotas and autonomous tariff suspensions. The changes are applicable as of 1 July 2024. 

We recommend you assess carefully whether you can benefit from any of the new or existing tariff suspensions and tariff quota and consider applying for new suspensions or quota if any of the products that your business is importing meets the applicable criteria. 
 

Use of PoUS system to apply for proof of Union status certificates from 1 August 2024 onwards 

Belgian customs allowed operators to continue to use PLDA by means of a transitional period since Proof of Union Status (PoUS) system became operational on 1 March 2024. This transitional period has been introduced to allow operators to prepare for this change.  

The new EU Proof of Union Status (PoUS) system to request Union status certificates T2L and T2LF will completely replace PLDA as of 1 August for outbound shipments. For inbound shipments, Belgian customs assumes that the certificates will have been issued via PoUS as well.
 

EU-Kenya EPA

On 1 July 2024, the EU-Kenya Economic Partnership Agreement (EPA) has entered into force.

This agreement is set to enhance bilateral trade in goods, increase investment flows, and strengthen ties between the two reliable partners. Moreover, it is an ambitious deal regarding sustainability as it includes binding provisions on labor matters, gender equality, the environment and the fight against climate change. The agreement is expected to create more opportunities for Kenyan businesses and exporters by fully opening the EU market to Kenyan products and encouraging EU investment in Kenya due to increased legal certainty and stability.
 

Duties e-vehicles - Regulation imposing a provisional countervailing duty on imports of new battery electric vehicles originating in China.

On 4 July 2024, the EU published Commission Implementing Regulation (EU) 2024/1866, which imposes provisional countervailing duties on imports of new battery electric vehicles (BEVs) originating in China. These duties, ranging from 17.4% to 37.6%, are a response to the harm caused by subsidized Chinese imports to the EU's electric vehicle market. This measure is part of the EU's broader strategy to ensure fair competition and support the local electric vehicle industry.  

This action follows an anti-subsidy investigation initiated by the European Commission on 4 October 2023, prompted by concerns over their impact on the EU market. The findings from this investigation confirmed that these vehicles benefit from subsidies, enabling them to expand their presence in the EU at the expense of domestic producers. The provisional duties, which will be in place for a four-month period starting on 5 July 2024, vary between 17.4% and 37.6%. The regulation specifies the companies affected and outlines the measures that will be subject to further investigation and assessment.
 

Centralised Clearance system for import

Starting 1 July 2024, the Centralised Clearance for Import (CCI) system has begun its initial phase across several European member states.  

It is already available in Bulgaria, Estonia, Spain, Luxembourg, Latvia, Lithuania, Poland, and Romania, with plans for other member states to join gradually, CCI allows businesses to submit customs declarations in one EU member state for goods presented to customs in another member state.  

The first phase of the CCI system will enable automated processing of standard customs declaration for placing goods under release for free circulation, customs warehousing, inward processing and end-use.

By June 2025, phase 2 can be expected, expanding CCI's capabilities to include more types of declarations and goods.