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World Customs Organization, a still unknown body

Kunio Mikuriya, Secretary General of the World Customs Organization(WCO), talks about the birth and the functions of this international, inter-governmental organization still little know for those unfamiliar with customs matters. The WCO, headquartered in Brussels, was created by the Convention establishing the Customs Cooperation Council (CCC), signed on 15 December 1950 and entered into force on 1952. In 1994 the CCC changes its name in "World Customs Organization" and progressively enlarge his membership reaching a total of 176 members. Among its objectives there is the development of global standards for customs procedures (that, in turn, arise from the best practices of its members), as well as the harmonization and the simplification worldwide of customs procedures, so that international exchanges can take place without particular hindrance. This is the main goal, in particular, of the Kyoto Convention, signed on 18 May 1973 and entered into force on 25 September 1974 (on 1999 the Convention is amended and its name is changed in 'Revised Kyoto Convention), one of the most important Conventions that the Organization administers. The revised Convention of Kyoto represents at global level the main tool of facilitation of trade and a blueprint for effective and modern customs procedures. Other important functions that the WCO carries out relate to the administration of the Harmonized System (HS), which is - at global level - the most widespread system of classification of goods for customs purposes (the customs tariffs of more than 200 Countries worldwide are based on the HS), as well as of the technical aspects related to the WCO Agreements on the Customs Valutation (ACV) and on the Rules of Origin (AROO).

 

Thoughts on the ‘first sale’ rule

The "first sale rule" is a particular method of determination of the customs value of goods, applicable each time that a product is subject to a chain of sales before its definitive import. As the first sale price, obviously, is lower than the price of each subsequent resale of the goods, this method can allow operators to obtain substantial savings, being ad valorem customs duties calculated on a lower taxable basis. To date, the main commercial blocks in the world (e.g. EU, USA and Japan), accept the first sale’rule (in the EU its use is expressly admitted by the art. 147, par. 1, of the Commission Regulation N° 2454/1993). In the latest times however, a new trend has come up, especially in the US and in the EU, aiming at replacing such method with the opposite criterion: i.e. the "last sale" rule appraisal methodology. This is raising worries by importaters, trade Groups and Organizations from all around the world, that now fear the the first sale rule will completely disappear in the future.

To the following link you will find an article published in the World Customs Journal with a comparative analysis on this issue in the US and EU. (read the article)

EC Communication 2010/C 107/12: Instructions for importing or exporting during 2011 controlled substances that deplete the ozone layer

With notice Prot. 7536/RU of 22.02.2010, the Italian Customs Agency recently informed the operators that as of 1th January 2010, the Regulation (EC) No 1005/2009 on the substances that deplete the ozone layer (so-called “ODS”) has entered into force, describing the procedures for the execution of the relative controls.

(continues in Italian)

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New discipline of the customs representation services in Spain

Spain is the first member State to reconfigure within its territory, with the Real Decreto 335/2010 of 19 March 2010, the provision of customs representation services, anticipating what established by the EC Regulation n. 450/2008, of 23 April 2008 (Modernized Customs Code), and clarifying what kind of persons fall within the definition of "Customs representatives" (a figure introduced by the new Customs Code). The purpose of the new law is to harmonize whitin the Country the exercise of such activities, by uniforming the conditions under which the different categories of customs representatives (professionals and not-professionals) can provide their services in Spain.

(continues ...in Italian)

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Radiometric controls extended to the import of semi-finished metal products

Today (7 April 2010) the legislative decree n. 23/2009 enters into force. Such a decree, implementing the Council Directive 2006/117/Euratom (on the supervision and control of shipments of radioactive waste and spent fuel), amends the legislative decree n. 230/1995 introducing an obligation of radiometric surveillance on all semifinished metal products imported from extra-EU countries, for those importing them for industrial or commercial purposes (as well as for those carrying out for industrial and commercial purposes activities of collection, warehousing or merging of scaps or other metallic materials).

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