Regulatory Compliance updates February 2025

February 14, 2025

China imposed additional  tariff and export control measure on U.S. Products 

The Ministry of Commerce and China’s customs administration announced that starting February. 10, China will impose an additional tariff on coal and liquefied natural gas, crude oil, agricultural machinery, large-displacement automobiles and pickup trucks. The relevant measures are outlined as follows:

  • A 15% additional tariff will be levied on coal and liquefied natural gas classified under HTS headings 2701, 2702 and 2711.
  • A 10% additional tariff will be imposed on crude oil, agricultural machinery, large-displacement vehicles, and pickup trucks classified under HTS headings 2709, 8419, 8424, 8432, 8433, 8434, 8436, 8437, 8438, 8479, 8701, 8703, 8704 and 8716.

The additional tariffs will be applied on top of the currently applicable tariff rates. Existing bonded and duty reduction/exemption policies remain unchanged, and the additional tariffs imposed under this measure will not be eligible for any exemptions. 

The Ministry of Commerce and China’s customs administration also announced new export controls effective immediately on more than two dozen metal products and related technologies. Those include tungsten, a critical mineral typically used in industrial and defense applications, as well as tellurium, which can be used to make solar cells.

The ministry also added two American firms — biotech company Illumina and fashion retailer PVH Group, owner of Calvin Klein and Tommy Hilfiger — to its unreliable entities list, saying they “violated normal market trading principles.”

In a separate statement, China’s State Administration for Market Regulation said it was initiating an investigation into Google for suspected violation of its anti-monopoly. The company, whose search engine is not available in China, has minimal operations in the country.

European Union: CBAM- Compliance with reporting requirements and new reporting portal

As of 1 January 2025, a new portal section of the CBAM Registry will allow installation operators outside the EU to upload and share their installations and emissions data with reporting declarants in a streamlined manner, instead of submitting it to each declarant separately. From early 2025, CBAM declarants will be able to apply for the ‘authorised CBAM declarant’ status via the CBAM Registry. Their application will be processed by the National Competent Authority of the EU Member State where they are established. This status will become mandatory as of 1 January 2026 for the import of CBAM goods in the EU customs territory.

European Union: Report highlights EU’s approach to export controls of dual-use items

Annual report on dual-use export controls highlights increased EU and Member State activity in monitoring sensitive goods and technologies. The report - which is the first of its kind – is mandated by the modernised EU Export Control Regulation. It provides not only a complete overview of 2022 data, but also includes key highlights from 2023 and 2024. Check out all the findings by clicking below. Link

European Commission approves €500 million French State aid scheme to support chemical recycling of plastic waste

The European Commission has approved, under EU State aid rules, a €500 million French scheme to support the chemical recycling of certain types of plastic waste. The measure contributes to the achievement of the priorities of the European Commission for 2024-2029, based on the Political Guidelines, which call for a more circular and resilient economy.

France notified the Commission of its plans to introduce a €500 million scheme to support investments for the chemical recycling of certain types of plastic waste, such as trays, films, non-beverage bottles and textile materials with a certain amount of polyester content. The scheme aims to support chemical recycling technologies that convert mixed and/or contaminated plastic waste back into ‘virgin-like' raw materials. The scheme will contribute to the EU's objective of circularity of production and consumption processes as part of a broader transformation of the industry towards climate neutrality.

Under the scheme, the aid will take the form of direct grants. The scheme is open to companies of all sizes and operating in all sectors. The maximum amount of aid is 40% of the eligible costs, which are the extra investment costs calculated by comparing the total investment costs of a project of chemical recycling of plastic waste with those of less environmentally friendly projects.

European Union: Imports of choline chloride

Commission Implementing Regulation (EU) 2025/92 of 20 January 2025 making imports of choline chloride originating in the People’s Republic of China subject to registration http://data.europa.eu/eli/reg_impl/2025/92/oj

  • Additional code 89ID designates the product concerned: choline chloride.
  • Additional code 89ZZ designates products outside the scope of the proceeding.

To limit the registration to the product concerned, the registration measures have been created only on additional code 89ID. Additional code 89ZZ remains linked to measures for the Notice of initiation), who have no impact on the declaration. Entered into force: 22.01.2025

European Union: Extension of the Transition period to the Automated Export System (AES)

The Commission is pleased to announce that the committee in charge has just approved the revised Implementing Regulation on Technical Arrangements (IRTA) containing a provision enabling the extension of the transition period  to the Automated Export System (AES)  until 14 December 2025. This extension is crucial to avoid serious trade disruptions. It also limits the impact on European businesses exporting goods out of the Union. Thanks to the extension of the transition period, Member States and economic operators will have sufficient time to finalise the migration to AES. Due to the extension of the transitional period, Member States and economic operators need to promptly adjust their systems to avoid technical issues and desynchronisation between Member states. DG TAXUD is working closely with the national project managers and is ready to provide assistance.

European Commission announces actions for safe and sustainable e-commerce imports

The Commission is taking action to tackle risks stemming from low-value imports sold via non-EU online retailers and marketplaces hosting non-EU traders. These actions are part of the Communication on E-Commerce, ‘A Comprehensive EU Toolbox for Safe and Sustainable E-commerce', which the Commission is proposing today. The Commission encourages actions, among others, in the areas of customs and trade, such as launching customs controls, consumer protection and the Digital Services and Digital Markets Acts.

In the Communication, the Commission sets out all the tools the EU already has at its disposal and highlights initiatives that are currently discussed by the co-legislators. In addition, it proposes new joint actions to address concerns arising from the surge of unsafe, counterfeit and otherwise non-compliant or illicit products entering the market: 

  • Customs reform, including calling for co-legislators to swiftly adopt the proposed Customs Union Reform Package, allowing rapid implementation of new rules to level the playing field in the area of e-commerce. These include removal of the duty exemption for low-value parcels worth less than €150 and reinforcing capabilities for controls such as better data-sharing and risk assessment. The Commission also invites the co-legislators to consider further measures, such as a non-discriminatory handling fee, on e-commerce items imported in the EU directly to consumers, to address the scaling costs of supervising compliance of billions of such consignments with EU rules.
  • Targeted measures for imported goods, including launching coordinated controls between customs and market surveillance authorities, as well as coordinated actions on product safety, such as the first-ever product safety sweep. This should lead to removing non-compliant goods from the market and contribute to evidence collection to feed risk analysis and complementary actions. Future controls will be intensified for certain operators, goods or trade flows, on a rolling basis, in the light of the risk analysis. The higher the rate of non-compliance, the greater should be the level of vigilance in subsequent stages, while penalties should reflect cases of systematic non-compliance.
  • Protecting consumers on online marketplaces, highlighting e-commerce practices as a clear enforcement priority under the Digital Services Act, as well as tools such as the Digital Markets Act, and those that apply to all traders: the General Product Safety Regulation, the Consumer Protection Cooperation Regulation, and the Consumer Protection Network.
  • Using digital tools, which can help to facilitate the supervision of the e-commerce landscape through the Digital Product Passport and new AI tools for the detection of potentially non-compliant products.
  • Environmental protection, including adopting the first action plan on the Ecodesign for Sustainable Products Regulation, and calling for the swift adoption of the targeted amendment for the Waste Framework Directive.
  • Empowering consumers and traders through awareness-raising campaigns concerning consumer rights, risks and redress mechanisms.
  • International cooperation and trade, including providing training activities on EU product safety rules and assessing any evidence that may emerge relating to dumping and subsidisation.

Next Steps
The Commission calls on the cooperation with Member States, the co-legislators and all stakeholders, to put in place the measures outlined in the Communication. Within a year, the Commission will assess the effect of the announced actions and publish a report on the findings of the increased controls. In light of the results and in consultation with the relevant authorities of the Member States and stakeholders, the Commission will consider whether existing frameworks and enforcement activities are sufficient and adequate. If not, further actions and proposals will be considered to strengthen the implementation and enforcement of EU rules.

EU Import Control System 2 (ICS2) extends to rail and road transportation from April 2025

The European Union's Import Control System 2 (ICS2) aims to enhance the safety and security of goods entering the EU by introducing a standardized pre-arrival customs process for all transportation modes, including road and rail, in addition to the existing air, maritime, and inland waterway requirements. By mandating the submission of accurate and complete Entry Summary Declaration (ENS) data prior to arrival, ICS2 enables customs authorities to better assess the risks associated with incoming goods, thereby improving the EU's ability to prevent and combat customs offenses, and ultimately ensuring a safer and more secure trade environment. From 1 April 2025, road and rail carriers will need to provide data on goods sent to or through the EU prior to their arrival, through a complete ENS. This obligation also concerns postal and express carriers who transport goods using these modes of transport as well as other parties, such as logistics providers. In certain circumstances, final consignees established in the EU will also have to submit ENS data to ICS2.

European Union: Update of export measures on fluorinated greenhouse gases

TARIC export measures on F-gases for labelling requirements in export have been modified:
- TARIC document codes Y164, Y160 and Y162 relate to labelling requirements for equipment that functioning or relies on F- gases have been removed from the existing export measures (according to article 12(9) of Reg. 2024/573 labelling requirement is imposed only for containers and not for the equipment or products).
- Start date of this modification is 31/1/2025

Regulation (EU) 2024/573 of the European Parliament and of the Council of 7 February 2024 on fluorinated greenhouse gases, amending Directive (EU) 2019/1937 and repealing Regulation (EU) No 517/2014

European Union: Binding origin information

List of authorities designated by Member States and the United Kingdom regarding Northern Ireland to receive applications for, or to issue, binding origin information. Link

Norway: National Competent Authorities issues guidance on weapons exports

The Norwegian Agency for Export Control and Sanctions (DEKSA) is the national competent authority for sanctions in Norway as of 1 January 2025. The DEKSA has published guidance on the export of weapons for hunting, sport and competition. The guidance provides details on:

- firearms and ammunition on Norway’s control list for military products, the export of which requires a licence
- weapons that are exempt from the licensing requirements (e.g. weapons that only fire blanks and smooth-bore weapons for hunting and sport)
- when licensing requirements apply for parts and accessories (e.g. the obligation applies to silencers and gun mounts)
- varied requirements according to good and recipient country. For instance, A-materials (which contribute significantly to a weapon’s performance) have stricter requirements and can only be exported to an approved list of countries
- reporting obligations for items – reporting is often a condition for a licence
- special permits required if the weapon to export is a cultural monument Link

Switzerland adopts new EU regulations for aviation

The Joint Committee of the bilateral air transport agreement between Switzerland and the EU decided to adopt various decrees by Switzerland. They serve to maintain a high and uniform level of safety in European civil aviation. The Federal Council had approved the adoption of the new provisions at its meeting on 15 January 2025. The new regulations came into force on February 1, 2025. Link

United Kingdom: Update to Commodity Code Structure to maintain dynamic alignment with the EU

The following updates were incorrectly provided in the 20 January 2025. Further Update Stop Press Notice and are to be ignored: The following commodity codes have ended as of 7 January 2025:
The following commodity codes are being absorbed as of 7 January 2025:

  • 3919908031 is being absorbed into 3919908099

Please note that commodity code 3919908031 is live in the Tariff.

United States: 25% tariffs on steel and aluminium products to apply from 12 March 2025

President Donald Trump has officially confirmed that 25 percent tariffs will be imposed on all steel and aluminium imports into the US beginning March 12, 2025. The tariffs will also be expanded to include derivative steel articles once the Department of Commerce has implemented “adequate systems” to collect the tariffs on such articles. These blanket tariffs will apply to all imports into the US, regardless of the exporting country, affecting allies and competitors alike. President Trump has also intimated that he will announce reciprocal tariffs in the coming days, to be applied against tariffs imposed against the US by other countries.

The steel and aluminium tariffs mirror those imposed during Trump’s first presidency, which included a 25 percent tariff on steel and 10 percent on aluminium, while expanding the tariffs to include derivative steel articles. The previous tariffs on steel and aluminium articles saw a number of countries retaliate with their own measures, including most notably the EU, which in 2018 imposed tariffs on a number of symbolic US goods, including bourbon whiskey, jeans and motorcycles. Trump subsequently granted exemptions to several trading partners, including Canada and Mexico, and the Biden administration agreed to tariff-rate quotas for others, such as the EU.  No exclusions or exemptions from these additional tariffs will be considered. And the order revokes the exclusion process for the original Section 232 tariffs, directs that exclusions already in effect will not be renewed, and revokes general approved exclusions effective March 12, 2025.

Responding to the initial announcement that President Trump would impose additional steel and aluminium tariffs, the European Commission stated that they would “react to protect the interests of European businesses, workers and consumers from unjustified measures”, whilst Australian Prime Minister Anthony Albanese announced that he would attempt to seek an exemption to the tariffs.

United States: Temporarily (and Indefinitely) Permits Imports of Chinese Goods Duty-Free Under De Minimis Exemption

President Trump signed an executive order on February 7, 2025, temporarily suspending the prohibition against products from China being imported duty- and tax-free under the de minimis exemption for low-value imports.  The executive order amends the February 1, 2025, executive order imposing 10% tariffs on all imports of Chinese-origin goods that became effective on February 4, 2025. This latest executive order follows significant confusion as the February 1, 2025, executive order went into effect, with the US Postal Service suspending, then allowing, shipments of imports into the United States of low-value goods imported under the de minimis exemption provided at Section 321 of the Tariff Act of 1930 (19 USC § 1321).  Duty-free entries of goods under the de minimis exemptions have exploded since the threshold to qualify was raised to $800 and the substantial growth of e-commerce, particularly during the pandemic.  CBP estimates that the number of imports under the de minimis exemption has increased in the past ten years from 139 million per year to over 1 billion per year.

President’s Trumps amendment provides a temporary reprieve for Chinese-origin low-value goods to continue to qualify for duty-free entry under the de minimis exemption.  The order directs that the suspension will be lifted once the Secretary of Commerce notifies the President that “adequate systems are in place to fully and expediently process and collect tariff revenue applicable” to Chinese-origin low-value imports.

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