TOPIC 7: Technical Issues (4): Customs

Question 1

Types of EU bilateral agreements

Answer 1

1. Custom unions
   - eliminate customs duties in bilateral trade, and;
   - establish a joint customs tariff for foreign importers
2. Association Agreements, Stabilization Agreements, (Deep and
   Comprehensive) Free Trade Agreements and Economic Partnership
   Agreements
   - remove or reduce customs tariffs in bilateral trade
3. Partnership and Cooperation Agreements
   -provide a general framework for bilateral economic relations, and;
   - leave customs tariffs as they are

Question 2

International Trade Agreement

Answer 2

Bilateral Agreements
- Preferential
- Cooperation → ex: the cooperation that there is between the UK and
the EU
- Association

Multilateral agreements “Doha Development Agenda” WTO

New generation agreements

Question 5

Customs Clearance Channels ( colours )

Answer 5

green channel–> goods can exit or enter the country without problem

yellow channel –> a certain type of non-customs services certificate has not been attached to allow the goods to be cleared

orange Channel –> the authorities need to check that the details that we have declared, and our documentation are correct. Ince the review is positive, the goods are dipatched.

red Channel –> involves physical review of the cargo and accompanying documents. Once the review is positive, the goods are dispatched.

Question 6

rules of origin

Answer 6

Origin: economic nationality of goods traded in commerce

The tariff classification, value and origin of a good are determining factors based on
which the customs tariff treatment is applied

Question 7

Types of origin

Answer 7

● Non-preferential origin
● Preferential origin

Question 8

The country of origin is:

Answer 8

a. The country in which the good has been totally produced

b. When there are two or more countries involved in the production process the
country of origin is that one in which the last substantial change, economically
justified, have taken place.

Question 9

Customs Value: What is that ?

Answer 9

The customs value is the tax base for tariffs

Question 10

Custom Valuation

Answer 10

It is made at the very moment in which customs officers accept the
Import Declaration

Question 11

Customs declaration

Answer 11

goods are assigned to an specific customs procedure

Question 12

Presenting the goods to the customs authority

Answer 12

notify the arrival of the goods to
the customs authority

Question 13

Release of shipment

Answer 13

customs authority allows the disposal of the goods for the
purposes stateted in the customs procedure

Question 14

Stages of Custom procedures

Answer 14

1. A customs officer examines your customs paperwork
2. Import duties and taxes are assessed using the customs paperwork
3. Customs requests payment for taxes and duties, if applicable
4. Your shipment cleared customs once all duties are paid.