Navigating changes in international trade and customs regulations in 2024

Switzerland will abolish the industrial customs duties for goods falling under Chapters 25–97 of the Swiss customs tariff, effective 1 January 2024 (with few exceptions). As a result, products within the mentioned chapters will no longer face customs duties upon import to Switzerland, irrespective of their origin, marking a significant policy change aimed at reducing trade barriers and enhancing economic competitiveness. At the same time, the number of tariff codes will be reduced, which requires the updating of master data for importers as well as exporters (same codes used for both directions).

The EU is tackling greenhouse gas emissions beyond its borders with CBAM, placing a carbon price on certain imported products. This mechanism aims to prevent carbon leakage and maintain the competitiveness of European industries. Businesses must be aware of the transitional period requirements (started on 1 October 2023) and quarterly reporting associated with CBAM (first report to be submitted 31 January 2024) to ensure compliance. Key industries to be affected include, among others, heavy industry, chemicals and fertilisers, energy-intensive manufacturing, electricity and power generation and certain agricultural products.

Effective from 1 January 2024, a new version of the EU Combined Nomenclature takes effect. Although the tariff changes are relatively minor, businesses must ensure their customs declarations accurately reflect any updates or new CN codes to avoid errors, fines and customs delays.

BTOM in the UK is a phased approach to managing changes in border processes following the country’s exit from the European Union. The model, initially planned for October 2023 but later postponed to 31 January 2024, aims to provide businesses with sufficient time to adapt. Businesses need to assess the risk levels of their commodities to prepare for changes in the border process, with subsequent phases scheduled for April and October 2024.

On 1 March 2024, the third release of the European Union’s Import Control System 2 will be implemented. Businesses must ensure compliance by obtaining an Economic Operators Registration and Identification (EORI) number and participating in self-conformance testing.

Talks initiated in October 2022 between the EU and Japan have resulted in a landmark deal to include cross-border data flow rules in the EU-Japan Economic Partnership Agreement. This agreement, expected to benefit various sectors, will streamline data handling and eliminate costly data storage requirements.

The European Council recently adopted two decisions to sign the Advanced Framework Agreement (AFA) and the interim Trade Agreement (iTA) with Chile, which together constitute an updated version of the EU-Chile Association Agreement currently in place since 1 March 2005.

The new agreement will strengthen EU-Chile political and economic relations and deepen cooperation and trade. 

On 7 December 2023, the PEM Joint Committee adopted the new and modernised rules of origin that aims to increase trade between the European Union and neighbouring countries in the PEM region. The rules of origin will be implemented as of 1 January 2025 and will aim to modernise all preferential trade agreements among the 24 PEM trading partners by making the relevant rules of origin in those agreements more flexible and business-friendly.

The PEM Joint Committee also agreed to develop the use of electronic certification of origin in the view of further simplification of customs formalities.

As of 1 March 2024, the Union status of goods with a value exceeding EUR 15,000 must be declared with an electronic declaration in the new EU Proof of Union Status system (POUS). The MRN of a declaration submitted to the customs e-service must be presented electronically upon arrival of goods. At the first stage of the renewal, it will no longer be possible to confirm T2L and T2LF documents at customs offices. 

Your current SAP GTS 11.0 is going to change…! A new version SAP GTS E4H has been released and SAP set a challenging deadline end of 2025 by when their support for 11.0 will stop and by when everybody has to convert to the new version.

Also to be considered: legal and system changes of customs authorities in Switzerland, Germany and other countries that are happening in parallel.