Regulatory Compliance updates November 2023

Published on November 27, 2023

CATTS Article: Updates on the EU Carbon Border Adjustment Mechanism (CBAM)

Since 1 October 2023 the EU Carbon Border Adjustment Mechanism (CBAM) applies to import of the aluminium, iron and steel, fertilisers, electricity, hydrogen and cement from non-EU countries. CBAM is an instrument aimed at tackling the problem of shifting carbon-intensive production abroad to benefit from lower standards or replacing EU products with imported products with higher carbon dioxide emissions. First phase of implementation (31.10.2023 – 31.12.2025) is a transitional period during which the import of goods is not associated with any payments or financial adjustments but importers (or their indirect customs representatives) are obliged to submit quarterly reports covering details related to imported goods and emissions embedded in such products. First report will have to be submitted until 31.01.2024 and cover the last quarter of year 2023. Lack of submission may result in penalties being imposed. The set of information provided in the report includes, among others:

  • Quantity of the goods imported and their CN code;
  • Country of origin of the imported goods;
  • Installation where the goods were produced;
  • Production routes used;
  • Specific embedded direct emissions of the goods;
  • Sector-specific parameters.

Regulation 2023/1773 provides for two target calculation methods, based on accurate analyses and data from measurement systems, however, by the end of December 2024 other methods that provide similar accuracy may be used. Until 31 July 2024, if declarant is not able to gather all necessary information, default values made available and published by the Commission for the transitional period can be used.

European Commission has developed the CBAM transitional registry accessible via Trader Portal as well as guidance and communication template - a form enabling the collection of information about the production process and making calculations. Full implementation of CBAM is scheduled for January 1, 2026. From that point on, importers will have to obtain the status of an authorised CBAM declarant, purchase and redeem certificates as a form of carbon tax payment, and submit annual reports.

Canada: Elimination of ACROSS Service Options (SO) 257 (EDI RMD) and 117 (Paper PARS)

The ACROSS Service Options (SO) 257 (EDI RMD) and 117 (Paper PARS) will be decommissioned and will no longer be in service. This change will not require external commercial clients to upgrade their existing systems. Brokers and importers are encouraged to use SO 911 (Integrated Import Declaration) to obtain release of goods and stop using SO 257 (EDI RMD) and 117 (Paper PARS) as soon as possible to ensure a successful transition. SO 125 (EDI PARS) and SO 174 (Paper RMD) will continue to be available as release options. SO 125 (EDI PARS) can be submitted both pre- and post-arrival. SO 174 (Paper RMD) can also be submitted pre-and post-arrival.

China proposes to ease rules on cross-border data flows

The Cyberspace Administration of China solicited public opinions on the regulations on regulating and promoting cross-border data flows (draft) on Oct 1st . According to the draft, those who provide personal information of more than 1 million people abroad should apply for the data exit security assessment.

According to the draft, data related to international trade, academic cooperation, transnational manufacturing and marketing activities that do not contain personal information or important data will no longer need to go through security assessment or certification procedures to promote domestic business activities. The draft also indicates it is necessary for the conclusion and performance of contracts to which the individual is a party, such as cross-border shopping, cross-border remittance, air ticket and hotel booking, visa processing, etc., and personal information must be provided overseas; Under any of the circumstances in which personal information must be provided overseas in order to protect the life, health and property safety of natural persons in an emergency, there is no need to declare a data exit security assessment, conclude a personal information exit standard contract, and pass a personal information protection certification.

EU enables coordinated export controls by compiling national lists

The European Commission is stepping up efforts to make sure that sensitive technologies do not fall into the wrong hands, by paving the way for better coordination of export controls at EU level. New 'autonomous' controls at EU level were made possible by the publication of a first compilation of EU Member States’ national export control lists on 20 October 2023. This list means that Member States are now able to impose authorisation requirements on exports of items included in other Member States’ control lists, as long as these are included in the Commission’s own compilation.

This first list includes Dutch controls on machines to make semiconductors, as well as Spanish controls on quantum computing, additive manufacturing and other emerging technologies. The publication opens the door for other Member States to coordinate their actions on export controls at a time of increased awareness of essential security concerns. The compilation will be updated whenever Member States notify new or amended national export control measures to the Commission.

EU: Communication on decisions relating to binding information issued by the customs authorities of the Member States 

The customs authorities revoke decisions relating to binding information as a result of the following international tariff measures:

  • Classification Decisions, Classification Opinions or amendments to the Explanatory Notes of the Nomenclature of the Harmonised Commodity Description and Coding System, adopted by the Customs Cooperation Council (CCC document No NC3086 – report of the 71st session of the HS Committee).

EU Common Customs Tariff applicable from January 1st 2024

On 31 October, Commission Implementing Regulation (EU) No 2023/2364 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff was published. This Regulation establishes the latest version of the Combined Nomenclature (CN) and the Common Customs Tariff applicable from 1 January 2024.

EU enables coordinated export controls by compiling national lists

New 'autonomous' controls at EU level were made possible by the publication of a first compilation of EU Member States’ national export control lists on 20 October 2023. This list means that Member States are now able to impose authorisation requirements on exports of items included in other Member States’ control lists, as long as these are included in the Commission’s own compilation.

This first list includes Dutch controls on machines to make semiconductors, as well as Spanish controls on quantum computing, additive manufacturing and other emerging technologies. The publication opens the door for other Member States to coordinate their actions on export controls at a time of increased awareness of essential security concerns. The compilation will be updated whenever Member States notify new or amended national export control measures to the Commission.

EU renews Burundi & ISIL / Al-Qaeda sanctions regimes

23rd October, the EU renewed its Burundi and ISIL/Da’esh and Al-Qaeda sanctions regimes for 1 year until 31 October 2024. Currently, the Burundi regime applies to 1 person, Mathias-Joseph Niyonzima, an officer of the National Intelligence Service, who is subject to an asset freeze and travel ban. For the ISIL/Da’esh and Al-Qaeda regime applies to 14 persons and 5 groups who are subject to asset freezes and travel bans.

EU sets up Niger sanctions framework & renews Guinea sanctions

24th October, the EU set up a Niger sanctions framework sanctioning individuals and entities responsible for actions that threaten the peace, stability and security of Niger, undermine the constitutional order, democracy, the rule of law, or constitute serious human rights violations or abuses, or violations of applicable international humanitarian law in Niger. The EU renewed Guinea sanctions for 1 year until 27 October 2024.  The EU’s sanctions on Guinea currently consist of asset freezes and travel bans on 5 individuals.

EU: CBAM Commission launches call for applications for new informal expert group

The European Commission has published a call for application for members of a new informal expert group to provide advice and expertise on certain elements of the implementation of the Carbon Border Adjustment Mechanism (CBAM). An integral part of the EU’s efforts to become a carbon neutral continent by 2050 at the latest, the CBAM is a climate measure that should prevent the risk of carbon leakage and support overall global decarbonisation. The group will replace the previous informal expert group, which will cease to operate at the end of 2023 following the launch of the CBAM’s transitional phase on 1 October 2023. The new group will provide advice and guidance on the implementation of the definitive CBAM regime which begins in 2026, including on the preparation of the final methodology for the calculation of embedded emissions of CBAM goods.

EU: Non-EU countries align with EU Russia & Nicaragua sanctions

The candidate countries North Macedonia, Montenegro, Albania, Ukraine, Bosnia and Herzegovina, and the EFTA countries Iceland and Liechtenstein, have aligned themselves with the EU’s addition of 5 entities to its Russia broadcast ban. Switzerland has amended the reasons for the listings of 6 Nicaraguan individuals and 1 entity in line with the EU’s amendments earlier this month.

UK: Updates to Phytosanitary Geographic Groups membership and Authorised Use measures

This update is due to the Department for Business and Trade correcting their dataset entry in respect of phytosanitary geographic group membership. Phytosanitary geographic group membership for Phytosanitary Group 5 (id 4004), Group 6 (id 4005) and Group 9 (id 4008) have been updated to include the following countries as of 1 December 2023:

  • Japan
  • Switzerland

Phytosanitary geographic group membership for Phytosanitary Group 7 has been updated to include Russia (id 4006) as of 1 December 2023.Phytosanitary geographic group membership for Phytosanitary Group 9 has been updated Phyto Group 9 (4008).

United States: AGOA changes expected January 1, 2024

President Biden decided to reinstate African Growth and Opportunity Act (AGOA) trade preference program benefits for one country, Mauritania, and to terminate benefits for four countries – Gabon, Niger, the Central African Republic, and Uganda – effective January 1, 2024. Based on the results of the annual AGOA eligibility review, Mauritania’s eligibility will be reinstated based on progress that it has made with respect to the 2019 termination of its benefits due to worker rights concerns, as well as the government’s willingness to work diligently with the United States to continue to make substantial and measurable progress on worker rights and eliminating forced labor across the country.


United States: Compliance Policy for Cosmetic Product Facility Registration and Cosmetic Product Listing

The Food and Drug Administration (FDA or we) is announcing the availability of a final guidance for industry and the public on the requirements related to cosmetic product facility registration and cosmetic product listing under the Federal Food, Drug, and Cosmetic Act (FD&C Act) entitled “Compliance Policy for Cosmetic Product Facility Registration and Cosmetic Product Listing.” This guidance announces FDA's intention to delay enforcement of the requirements related to cosmetic product facility registration and cosmetic product listing for an additional 6 months after the initial December 29, 2023, deadline.