Latest edition of EY Belgium’s customs and excise update

Key Takeaways:

1. President Trump announced a 90-day suspension of country-specific tariffs, excluding those on China, as part of the "Reciprocal Trade Plan.”
2. The unexpected pause prompted the EU to delay its own retaliatory measures, postponing them from 15 April to 14 July 2025.
3. Starting 1 May 2025, the EU Customs Decisions System (CDS) will manage 22 customs authorizations.
4. The EU published regulations for authorized CBAM declarants and proposed the Omnibus CBAM Simplification Package.
5. The European Steel and Metals Action Plan aims to enhance the competitiveness and sustainability of the EU’s steel and metals industry.
6. The EU Commission's proposed simplifications to the EUDR are expected to reduce administrative costs for companies by approximately 30% and facilitate more efficient compliance.
7. The EU imposed provisional anti-dumping duties on decor paper and glyoxylic acid from China and introduced registration measures for candles from China
    

US Trade war: Temporary tariff suspension and EU’s retaliatory response

On Wednesday 9 April, just hours before sweeping country-specific tariffs were set to take effect, US President Trump announced a 90-day suspension of the country-specific tariffs — with the notable exception of tariffs on China. The move comes as part of the administration’s broader “Reciprocal Trade Plan,” introduced on 2 April 2025 to address long-standing concerns over trade imbalances, disparate tariff rates, and what the administration describes as a lack of reciprocity in bilateral trade relationships.

Under the Reciprocal Trade Plan, a universal additional ad valorem tariff of 10% on all imported goods took effect at midnight on 5 April. The country-specific additional tariffs, ranging from 11% to 50%, targeted countries with the largest trade surpluses with the US and those with significant non-tariff barriers. An example of countries which have received additional tariffs are the EU, India, Japan and South Korea. These tariffs were set to come into effect at midnight on 9 April, with major trading partners such as the EU facing a 20% additional tariff. Several goods are, however, excluded from the scope of the reciprocal tariffs, including:

• Goods already subject to 25% tariffs under Section 232 (i.e., steel, aluminum, automobiles, and automotive parts),
• Goods under ongoing Section 232 investigations, most notably copper, lumber, pharmaceuticals, semiconductors, critical minerals, and energy products
• Certain electronics, such as smartphones, laptops and goods used in semiconductor manufacturing (With President Trump expected to impose new tariffs on imported semiconductors)
• Imports from Canada and Mexico, which remain subject to separate country-specific tariffs introduced following the US "fentanyl crisis".

The duty free de minimis treatment remains available – except for imports from China and Hong Kong – until adequate systems are in place to fully and expeditiously process and collect duties on low-value shipments.

Following the publication of the Reciprocal Trade Plan, which included a 34% additional tariff on imports from China, China responded in kind by imposing a 34% reciprocal tariff on all US imports. This tit-for-tat escalation triggered a tariff war between the two economic powers. In response to China’s retaliation, the US raised its tariffs on Chinese goods to 84%, with China immediately matching the increase with its own 84% tariff on US goods. Tensions continued to mount as the US subsequently increased its tariffs to 125% as a further punitive measure against China's countermeasures. This means that the total US rate on Chinese imports now amounts to 145%, considering the combined 20% fentanyl rate. China, in turn, retaliated with a 125% tariff on US goods.

For more information on the US measures and the suspension, consult this alert.

Meanwhile, the EU proposed a “zero-for-zero” tariff arrangement for industrial goods to defuse tensions. The US rejected the offer, urging the EU instead to increase purchases of US Liquefied Natural Gas (LNG). While the EU signaled openness to discussing LNG imports and broader trade balances, EU Member States approved a €22 billion retaliation package targeting US goods in response to the reciprocal tariffs.

However, the unexpected 90-day pause on country-specific tariffs, announced by President Trump on the evening of 9 April, prompted the EU to delay implementation of its own retaliatory measures. On 14 April 2025, the EU announced that the countermeasures initially set to apply from 15 April will now be postponed to 14 July.  More information on the EU’s countermeasures can be found in our latest trade alert. In light of these developments, a meeting was held on 17 April at the White House between President Donald Trump and Italian Prime Minister Giorgia Meloni, with hopes of reaching a trade deal to ease tensions between the US and the European Union.

The US administration framed the pause as a diplomatic window to allow further negotiations toward a lasting resolution of trade disputes.

Although the pause provides temporary relief from rising global trade tensions, the situation remains highly unpredictable. Businesses and stakeholders should stay vigilant and closely monitor ongoing developments, as trade policy changes continue to unfold.

Disclaimer: Please note that the information provided covers the period until 21 April 2025 and may not include subsequent developments.
 

Customs authorizations to be managed by the EU Customs Decisions System (CDS)

Starting 1 June 2025, the management of 22 customs authorizations, including national variations, will transition to the EU Customs Decisions System (CDS). With the exception of Temporary Storage (TST) authorizations, which will continue to be governed through MyMinFin for now. From 1 June 2025, economic operators are required to use the EU Trader Portal to obtain, renew, or amend customs authorizations.
 

Publication of Implementing Regulation regarding the CBAM authorized declarant and Omnibus CBAM simplification package

On 17 March 2025, the Commission adopted Implementing Regulation (EU) 2025/486 concerning the authorization of CBAM declarants. From 31 March, applicants can submit their authorizations electronically through the Authorization Management Module in the CBAM registry, allowing importers and indirect customs representatives to apply in their Member State of establishment. The Commission has also launched several guidance documents to assist applicants in navigating the registry, including procedures for submission, amendments, withdrawals, and other requests.

To qualify as an authorized CBAM declarant, applicants must meet specific financial and organizational criteria. They must have no serious violations of customs, tax, or market abuse laws in the past three years, nor serious criminal offenses in the last five years. Applicants must demonstrate financial stability, be current on customs duties and taxes, and maintain strong internal controls for managing CBAM certificates.

The Omnibus proposal introduces notable changes to CBAM, including a "de minimis" threshold that exempts imports of CBAM goods up to 50 tons per year from CBAM obligations. This change is expected to exempt approximately 90% of current CBAM goods importers. Other proposed simplifications include extending the deadline for annual CBAM declarations from 31 May to 31 August of the year following the year of import. Accordingly, the first financial obligation will apply on 31 August 2027, for the embedded emissions declared in 2026. Additionally, the requirement to hold CBAM certificates has been reduced from 80% to 50% of embedded emissions. While the final text may differ slightly, the core reasoning behind these proposed changes is expected to remain unchanged. These simplifications will be crucial for a potential future scope extension, as the Commission plans to present a comprehensive CBAM review report in mid-2025, in accordance with Article 30 of the CBAM regulation.

The Commission advises importers anticipating exceeding the de minimis threshold for CBAM goods not to delay their authorization applications. Conversely, those who do not expect to exceed the threshold should wait until early autumn to submit their applications. Applicants need to be aware of the timelines, as Competent Authorities have 120 days to assess applications, with possible extensions bringing the total to 150 days. For applications submitted before 15 June 2025, the competent authority will assess the application within 180 calendar days.

National Competent Authorities have begun sharing their guidelines and clarifications regarding the application process. In Belgium, the National Competent Authority (FPS Health, Food Chain Safety and Environment) has indicated that they will soon provide more information about the authorization procedure, including answers to questions such as what information applicants need to provide, the format thereof, the expected duration of the process, and any specificities for Belgium.
 

European steel and metals action plan

On 19 March 2025, the Commission unveiled the European Steel and Metals Action Plan to enhance the competitiveness and sustainability of the EU’s steel and metals industry. The plan addresses current challenges by focusing on energy affordability, carbon leakage prevention, capacity expansion, decarbonization, and job protection.

Key elements include ensuring an affordable and secure energy supply through Power Purchasing Agreements (PPA), tax flexibility, reduced network tariffs, and faster grid access for energy-intensive industries. The plan also proposes reviewing and tightening safeguard measures, introducing a new long-term measure to protect the steel sector by mid-2026, and assessing the "melted and poured" rule to determine the origin of metal goods.

Additionally, the plan emphasizes the importance of the Carbon Border Adjustment Mechanism (CBAM), proposing to extend CBAM to downstream products and strengthen anti-circumvention measures by the end of 2025.
 

The EU Commission announced new simplifications to the implementation of EUDR

The European Commission has announced the introduction of a series of simplifications to the EU Deforestation Regulation (EUDR) aimed at reducing administrative burdens and responding to feedback from Member States, partner countries, businesses, and industry stakeholders. These updates are designed to ensure regulatory certainty while promoting harmonized implementation across Member States.

On 15 April, the European Commission published a draft Delegated Act, which is open for consultation until 13 May. This draft Delegated Regulation provides further clarifications on the EUDR's scope, specifically addressing certain product categories. Additionally, the country benchmarking system is set to be finalized by 30 June.

Key simplifications include allowing large companies to reuse existing due diligence statements for reimported goods, enabling authorized representatives to submit due diligence statements on behalf of members for company groups, permitting annual submissions of due diligence statements, and clarifying obligations for large companies to streamline their processes, ascertaining that due diligence has been carried out.

Overall, these measures are expected to reduce administrative costs for companies by approximately 30% and facilitate more efficient compliance with the EUDR.
 

EU Commission implements new trade measures to combat unfair practices

The EU Commission has recently introduced several measures to regulate trade and protect the EU industry from unfair practices.

• On 14 February 2025, the European Commission announced a provisional anti-dumping duty on imports of decor paper originating in China. This measure follows an anti-dumping investigation initiated in June 2024, in response to a complaint filed by four Union producers of decor paper. The provisional anti-dumping duty applies to imports classified under CN codes ex 4802 54 00, ex 4802 55, ex 4805 91 00, and ex 4811 60 00, with specific characteristics. The anti-dumping duty ranges between 31,0% and 34,9%, depending on the manufacturer.
  
  
• Since 22 March 2025, a registration measure applies to imports into the EU of candles, tapers and similar products, classified under the commodity code 3406 00 00 00, originating in China. This 9-month registration measure is adopted as part of an anti-dumping investigation initiated on 19 December 2024 by the Commission following a complaint by Union producers.
  
  
• As from 25 March, the EU imposes a provisional anti-dumping duty on glyoxylic acid of a purity of at least 95 % by dry weight, originating in China. On July 25, 2024, the European Commission launched an anti-dumping investigation into glyoxylic acid imports from China. Glyoxylic acid, identified by CAS Numbers 298-12-4 or 6000-59-5, is a chemical used in various sectors including pharmaceuticals, food, fertilizers, and cosmetics. The product is classified under TARIC code 2918 30 00 13. The anti-dumping duty rate ranges between 27,2% and 280,3%.