Latest edition of EY Belgium’s customs and excise update

Key Takeaways:

• ECJ cases on customs valuation: AG Opinion in Keladis I & II and judgment in Tauritus
• Steel safeguards tightened: Liberalization rate reduced from 1% to 0.1% and carry-over mechanism eliminated as of 1 July 2025
• Trade defense update: New anti-dumping and countervailing duties, plus import registration measures on steel, biodiesel, glass fibre, cast iron, and plywood
• 17^th EU sanctions package on Russia: Targets shadow fleet operations, oil revenues, and dual-use exports
• TradeWatch Issue 1 2025 is now available: Featuring the latest updates on EU and global trade developments
• EY Belgium Supply Chain Day – 2 October 2025, Diegem: Explore strategies for building resilient, future-ready supply chains
   

EU customs valuation court cases: Keladis I and II and Tauritus 

Several questions have been raised to the European Court of Justice (ECJ) in recent months in relation to customs valuation, reflecting the growing complexity of global trade and the evolving challenges in determining customs value. Two key cases are the Advocate General’s Opinion in the Keladis cases (C-72/24; C-73/24) and the Court of Justice’s recent judgment in Tauritus (C-782/23). Both address fundamental questions about how customs value should be determined when traditional valuation methods are strained—whether due to suspected undervaluation or the use of provisional pricing mechanisms.

In the ECJ cases Keladis I & II, the Court examines whether aggregated statistical values compiled at the EU level can be used for determining the customs value of imported goods where there is reasonable suspicion of undervaluation but where it is impossible to verify the declared value based on goods descriptions or physical inspection. 

On 8 May, Advocate General Norkus expressed the opinion that statistical values cannot be used as a secondary method according to EU customs legislation (UCC Art. 74(2)). However, they can be utilized as a fall-back, last resort method for customs valuation based on data available in the Member State (UCC Art. 74(3)). The use of statistical values cannot be regarded as “arbitrary” values or “minimum prices.” Economic operators must always be given access to the data used by the authorities, and their right to be heard must be preserved (UCC Art. 22(6)). They must also have the opportunity to justify low prices, demonstrating compliance with customs valuation principles. Additionally, the data used must be as close as possible to the controlled transaction, with the 90-day time limit specified in UCC-IA Art. 142(2) applied with reasonable flexibility. We should wait for the court's judgement to see if it will follow the AG's opinion.

In its recent judgment in Tauritus (C-782/23), delivered on 15 May 2025, the Court of Justice of the European Union reaffirmed the primacy of the transaction value method under Article 70 of the Union Customs Code (UCC), even when the final price of goods is not known at the time of importation. The Court held that such a valuation remains valid provided the final price is determined based on objective and pre-agreed criteria that are beyond the unilateral control of either the buyer or the seller. This interpretation aligns with the broader principle that customs value must reflect the real economic value of the goods at the time of import.

The Court emphasized that importers must rely on the simplified customs declaration procedure under Articles 166 and 167 UCC, declaring a provisional value at import and submitting a supplementary declaration once the final price is established. The Court distinguished this scenario from the precedent set in Hamamatsu (C-529/16), where post-import transfer pricing adjustments were unilaterally applied by the importer. In contrast, Tauritus involved a pricing mechanism that was contractually fixed and objectively verifiable. This distinction is particularly relevant in the context of transfer pricing adjustments, which are typically not based on objective, pre-defined criteria but rather on retrospective profitability analyses or benchmarks. 

For more information regarding the Tauritus case, please consult this alert.
 

Tightening of the definitive safeguard measures on imports of certain steel products in the EU

On 25 March 2025, the European Commission announced significant adjustments to the EU's steel import safeguard measures. The primary modification involves reducing the liberalization rate for tariff-free steel imports from 1% to 0,1%, substantially limiting the volume of steel imports eligible for tariff-free entry into the EU and effectively decreasing the overall import quota. In addition, the Commission will eliminate the "carry-over" mechanism, which previously allowed unused import quotas from one quarter to be transferred to the next. Finally, countries will no longer be permitted to use unused quota volumes allocated to other countries. 

The adjustments entered into force on 1 April 2025, with the reduced liberalization rate and the removal of the carry-over mechanism for certain categories taking effect on 1 July 2025. The duration of the safeguard mechanism remains unchanged and will continue until 30 June 2026, subject to extension. 

This strategic move aligns with the broader objectives outlined in the European Commission’s Steel and Metals Action Plan, which aims to ensure a competitive and decarbonized steel and metals industry in Europe. The plan highlights the need to address global overcapacity, promote circularity through improved recycling, and support the transition to a net-zero emissions future for Europe’s most polluting industries.
 

EUDR benchmarking system – EU publishes country classification list

On 22 May 2025, the European Commission adopted Implementing Regulation (EU) 2025/1093, establishing the list of countries classified as presenting either a low or high risk under the EU Deforestation Regulation (EU) 2023/1115. This classification determines the level of due diligence required from operators and traders placing impacted commodities and products on the EU market. The classification is based on an objective and transparent assessment using internationally recognized data, including the Global Forest Resources Assessment by the FAO, and considers both quantitative and qualitative indicators as outlined in Article 29 of Regulation (EU) 2023/1115. Countries not listed in the Annex are considered to have a standard risk level.

The regulation includes an annex listing countries classified as low or high risk. Among the low-risk countries are all the EU Member States, Canada, Japan, and Brazil. High-risk countries include Belarus, Myanmar, the Russian Federation, and Korea. 

This classification means that operators and traders sourcing relevant commodities (such as cattle, cocoa, coffee, oil palm, rubber, soya, and wood) from within the EU or other low-risk countries benefit from simplified due diligence obligations under Article 13 of Regulation (EU) 2023/1115.
 

EU Commission implements new trade measures to combat unfair practices

The European Commission has recently adopted several new trade defense measures aimed at addressing unfair pricing practices and protecting EU industry competitiveness. 

• In accordance with Implementing Regulation (EU) 2025/670, effective 8 April 2025, the European Commission has imposed a provisional anti-dumping duty of up to 31.8% on imports of certain hot-rolled flat products of iron, non-alloy steel, or other alloy steel from Egypt, Japan, and Vietnam. These include products in coils, cut-to-length, and narrow strip forms, provided they are not further worked, clad, plated, or coated. Some product types are excluded, such as tool steel and high-speed steel. Additionally, cooperating exporters in each country may benefit from lower individual duty rates. If definitive duties are adopted later, they may be applied retroactively to imports declared up to 90 days before the provisional duties took effect (i.e., from 8 January 2025). 

• On 5 May 2025, the Commission imposed definitive countervailing duties on imports of biodiesel originating in Argentina, under Implementing Regulation (EU) 2025/835. This follows an investigation which concluded that the Argentine biodiesel industry benefits from unfair subsidies, causing injury to EU producers. A general countervailing duty of 33,4% now applies to all imports from Argentina. However, for non-sampled cooperating companies, specific rates ranging from 25% to 33,4% apply, depending on the company. These individual rates—and any exceptions—are contingent upon the presentation of a valid commercial invoice and an Export Undertaking Certificate. In the absence of such documentation, the general duty rate will apply. 

• On 16 May 2025, the Commission introduced import registration requirements for continuous filament glass fibre products originating in Bahrain, Egypt, and Thailand, under Regulation (EU) 2025/890. This follows an anti-dumping investigation initiated on 17 February 2025 after a complaint by Glass Fibre Europe. The measure targets chopped glass fibre strands (≤50 mm), certain types of glass fibre rovings, and mats made from glass fibre filaments. Preliminary findings indicate provisional dumping margins of 49% for Bahrain, 95% for Egypt, and 146% for Thailand. The registration period will last for nine months, until February 2026. 

• On 20 May 2025, the EU imposed registration requirements on imports of specific cast iron articles from India and Türkiye, under Regulation (EU) 2025/924. The measure follows an anti-dumping investigation launched on 26 February 2025 after a complaint by EUROFONTE. It applies to lamellar graphite cast iron and spheroidal graphite cast iron articles for ground and subsurface access, excluding certain certified drainage and utility components.  Preliminary dumping margins range from 17,6% to 44,3% for India and 52,9% to 61,2% for Türkiye. The registration period runs until February 2026.

• On 21 May 2025, the Commission introduced registration requirements for imports of Brazilian softwood plywood, under Regulation (EU) 2025/922. This follows an anti-dumping investigation initiated on 6 March 2025 after a complaint by the Softwood Plywood Consortium. The measure targets coniferous wood plywood with all plies under 6 mm thickness (excluding bamboo), classified under CN code 4412 39 00. Preliminary findings suggest dumping margins between 87% and 131%, with a potential injury margin of 73%. The registration period will remain in effect until February 2026. 
   

EU’s published 17^th sanctions package against Russia

On 20 May 2025, the Council adopted the 17^th package of economic and individual restrictive measures aimed at cutting off Russia’s access to key military technology and reducing its energy revenues that fund its aggression against Ukraine. This package targets Russia's "shadow fleet" of oil tankers and a major oil producer. The new measures double the number of vessels banned from port access and receiving port services, adding 189 newly designated vessels from third countries to bring the total to 342. Individual sanctions have also been imposed on shipping companies and a key insurer facilitating the shadow fleet's operations, including entities from the UAE, Türkiye, and Hong Kong. 

Since the introduction of the oil price cap and restrictive measures, Russian revenues have decreased significantly, with March 2025 revenues down 13.7% from March 2023. The EU has extended sanctions to industrial enablers, including Russian and Chinese entities supplying machine tools to the military, as well as three Chinese entities, one Belarusian, and one Israeli company providing critical components to the Russian military. 

The EU has introduced tighter export restrictions on dual-use goods and technologies for 21 new entities involved in circumventing export restrictions, particularly in third countries. Further restrictions target exports contributing to Russia’s military enhancement, including chemical precursors and spare parts for machine tools (e.g., boron, chlorates of sodium, needle roller bearings, ball or roller screws, …). 

With 75 new listings, EU restrictive measures now apply to over 2.400 individuals and entities, subjecting them to asset freezes and travel bans.
 

Register now for our EY BE supply chain day on 2 October 2025 at our office in Diegem

Join us on Thursday, 2 October 2025 at EY Diegem “The Wings” for the EY Belgium Supply Chain Day, where we’ll explore how to turn geopolitical challenges into strategic supply chain opportunities. Expect expert insights, peer discussions, interactive sessions, and networking with industry leaders — all designed to help you build a more resilient and future-ready supply chain.

Secure your spot here. 
 

TradeWatch Issue 1, 2025 is now available

The first edition of TradeWatch for 2025 has been published. This issue highlights how trade disruption continues to rise on the corporate agenda, with trade functions increasingly positioned as strategic business partners in many organizations. 

The publication explores the growing complexity of global trade, driven by geopolitical shifts, regulatory reforms, and the acceleration of protectionist measures. It also examines how businesses are adapting to this new era of uncertainty, with features on customs valuation, sustainability, digital sovereignty, and the evolving role of trade professionals. A key focus in this edition is the interplay between transfer pricing (TP) adjustments and customs valuation 

This edition also includes an overview of EY Global Trade webcasts, podcasts, articles, and tax alerts published throughout the year.