European Union: Extension of trade liberalization with Ukraine
Members of the European Parliament (MEPs) voted on Thursday (08.05.2025) to extend the suspension of import duties and quotas on certain imports from Ukraine, such as iron and steel, which expire on 5 June 2025. The new regulation will enter into force for three years, until June 2028, once an agreement has been reached with the Council. Source: European Parliament
European Commission consults on possible countermeasures and readies WTO litigation in response to US tariffs
The European Commission has launched a public consultation on a list of US imports which could become subject to EU countermeasures, if ongoing EU-US negotiations do not result in a mutually beneficial outcome and the removal of the US tariffs. The list put to consultation concerns imports from the US worth €95 billion, covering a broad range of industrial and agricultural products. The Commission is also consulting on possible restrictions on certain EU exports of steel scrap and chemical products to the US worth €4.4 billion. This consultation is designed to address both the US universal tariffs and the tariffs on cars and car parts. Since the US imposed its unjustified and harmful tariffs, the EU has prioritised finding a mutually beneficial and balanced solution through negotiations, including within the framework of the 90-day partial suspension of tariffs announced by the US. These negotiations are ongoing both at political and technical level. The EU continues to prepare potential countermeasures to defend its consumers and industry, in parallel with the negotiations and in case these fail to deliver a satisfactory outcome. While the public consultation is a necessary step in this process, it does not automatically result in the adoption of countermeasures.
In parallel, the EU will also launch a WTO dispute against the US on its universal so-called “reciprocal” tariffs and tariffs on cars and car parts, by formally lodging a request for consultations. It is the unequivocal view of the EU that these tariffs blatantly violate fundamental WTO rules. The EU's objective is thus to reaffirm that internationally agreed rules matter, and these cannot be unilaterally disregarded by any WTO member, including the US. Finally, the Commission continues to carefully monitor the potential diversion of global exports onto the EU market, which might be caused by the US tariffs imposed on third countries. In addition, the Commission will continue to pursue negotiations with other trading partners to find new export outlets and diversify our sources of supply. We will also continue ongoing work to reduce barriers and strengthen the EU's Single Market. Source: European Union
EU to review agreement with Israel over Gaza concerns
The European Union will review a pact governing its political and economic ties with Israel due to the "catastrophic" situation in Gaza, EU top diplomat Kaja Kallas said after a meeting of the bloc’s foreign ministers. International pressure on Israel has mounted in recent days amid complaints about the lack of humanitarian aid reaching Gaza and as Prime Minister Benjamin Netanyahu’s government launched a new military offensive in the enclave. Diplomats said 17 of 27 EU members backed the review, which will focus on whether Israel is complying with a human rights clause in the agreement, and was proposed by Dutch Foreign Minister Caspar Veldkamp.
European Union: New approach to VAT for e-commerce imports to simplify trade and compliance
EU finance ministers reached a significant agreement on a new approach to the Value Added Tax (VAT) focusing on e-commerce imports and the taxation of distance sales of imported goods. This agreement will further enhance the effectiveness of the Import One-Stop Shop (IOSS) by simplifying VAT declaration and payment, reducing administrative burdens for EU importers, and further improving the fight against VAT fraud.
By incentivising wider adoption of IOSS, the EU intends to simplify the processing of small packages and ensure VAT payments are consistently collected on online sales to EU consumers. Under the new rules, a wider number of suppliers selling goods worth up to €150 will be responsible for paying import VAT, and therefore be encouraged to use IOSS.
European Union: Carbon Border Adjustment Mechanism (CBAM) Scope Narrowed
On May 27, 2025, EU member states agreed to limit the scope of the upcoming Carbon Border Adjustment Mechanism. Initially set to impact approximately 200,000 importers, the revised plan will now apply to about 10% of those companies, specifically targeting firms importing more than 50 metric tons annually of high-emission goods such as steel, cement, aluminium, and fertilizers. These companies account for over 99% of the emissions covered by the mechanism. The policy aims to align import costs with the EU’s internal carbon pricing and will require companies to start purchasing emissions permits in 2027 for imports made starting in 2026.
New approach to VAT for e-commerce imports to simplify trade and compliance
As on 15th May 2025, EU finance ministers reached a significant agreement on a new approach to the Value Added Tax (VAT) focusing on e-commerce imports and the taxation of distance sales of imported goods. This agreement will further enhance the effectiveness of the Import One-Stop Shop (IOSS) by simplifying VAT declaration and payment, reducing administrative burdens for EU importers, and further improving the fight against VAT fraud.
By incentivising wider adoption of IOSS, the EU intends to simplify the processing of small packages and ensure VAT payments are consistently collected on online sales to EU consumers. Under the new rules, a wider number of suppliers selling goods worth up to €150 will be responsible for paying import VAT, and therefore be encouraged to use IOSS.
While using IOSS remains voluntary, suppliers who choose not to participate face the risk of complicated and costly multiple VAT registrations across EU member states. In cases where a supplier fails to comply, a fallback procedure allows member states to permit the customer to pay the VAT directly in order to release and deliver the goods. By reinforcing the use of IOSS, the new directive streamlines the VAT process for imports and marks a significant step towards broader customs reforms, ensuring a more efficient and compliant trading environment across the European Union. Source: European Commission
France: Mandatory Logistics Envelope ELO: New Requirement for Carriers from September 2025
The Mandatory Logistics Envelope ELO will become compulsory at the France-UK border from September 1, 2025. The new ELO system (Enveloppe Logistique Obligatoire) is part of the Smart Border and aims to simplify customs procedures, speed up clearance, and reduce documentation errors.
The Mandatory Logistics Envelope ELO is a digital tool that consolidates all necessary customs documents into a single integrated system. Each vehicle, including empty trucks, must have a unique ELO containing:
- ENS declaration,
- Import, export, and transit declarations,
- Key information about transported goods, including those subject to phytosanitary and veterinary controls.
Drivers will need to present the ELO barcode when crossing the border, allowing for the automatic assignment of customs clearance to the vehicle.
This requirement applies only to Smart Border crossings and ro-ro transport. Ultimately, every driver using these crossings will need to scan just two barcodes: the GMR for UK-side. Source: France Customs
India likely to allow government contracts to foreign firms including US amid trade talks
India is preparing to open a significant portion of its protected government procurement market to foreign companies, including firms from the United States, two government sources said, marking a notable policy shift that could extend to other trading partners. This move comes shortly after India granted British companies access to select federal contracts under a new trade agreement earlier this month.
Total public procurement in India—including purchases by federal, state, and local governments, along with state-owned enterprises—is estimated at $700 billion to $750 billion annually. Most of this market is currently reserved for domestic companies, with 25% specifically set aside for small businesses. Foreign suppliers are only allowed in limited sectors such as railways and defence when local alternatives are unavailable."
United Kingdom: update to office for Nuclear Regulation Measures
his update is due to the Department for Business and Trade correcting their dataset entry in respect of measure type 351 - Health and Safety Executive Import Licensing Firearms and Ammunition for the following commodity codes as of 23 May 2025: 2844100000, 2844200000, 2844431000 and 2844500000.
United Kingdom: Update to Common Health Entry Document (CHED) Measures
This update is due to the Department for Business and Trade correcting their dataset entry in respect of measure type 475 - Restriction on entry into free circulation for the following commodity code as of 17 May 2025: 0910000000
This update will affect the measures for Ethiopia and India.
Document code Y937 is a waiver for fresh ginger and is now only applicable to measures for the following commodity codes: 0910110000 and 0910120000.
United Kingdom open general licenses changes
The Export Control Joint Unit (ECJU) has updated 13 open general export licences (OGELs) to exclude military nuclear power generating and nuclear power propulsion equipment from the scope of the licences. Source: The Government of UK