The customs value of goods often consists of more than just the price invoiced. Transport costs are not the only other items to be considered. In particular, if the buyer provides the manufacturer of the goods in the third country with objects or intangible assets free of charge, these may impact on the ultimate customs value. The ECJ has now decided, in its judgment of 10 September 2020 (C-509/19 – BMW), that this “impact” is not restricted to intangible assets developed outside the EU.

Regardless of the outcome of the negotiations on a free trade agreement, customs formalities for the movement of goods between the EU and the UK will have to be complied with as of 1 January 2021. Although the UK will provide simplifications concerning importation for a transitional period of six months, these will only apply to companies established in the UK. In our current Customs Newsletter you can find out about the consequences of the UK's new customs and import VAT regulations for companies established in the EU.

Upon the expiry of the agreed Brexit transition period on 31 December 2020, EU legislation on excise duties will no longer apply in the United Kingdom (UK). It will no longer be possible to dispatch or receive excise goods directly to and from the UK. In future, such transactions will have to comply with customs formalities, as well as with EU and UK excise legislation. In this newsletter you will find out what the UK excise duty rules, applicable as from 1 January 2021, will mean for companies established in the EU.

For months, the EU and the United Kingdom (UK) have been negotiating an agreement to regulate their mutual relations after Brexit. After several missed deadlines, the parties finally reached a last minute agreement on 24 December 2020. This agreement is to apply as from 1 January 2021 and regulate, among other things, trade relations between the EU and UK. The previous Withdrawal Agreement remains unaffected. Our latest newsletter summarizes what the trade agreement means for VAT and customs law.

The planned modernisation of the German Tobacco Tax law has now been a topic of debate for many months. On 11 June 2021, during the course of an overnight meeting, the German Bundestag passed far-reaching amendments to the Tobacco Tax Act by means of the so-called Tobacco Tax Modernisation Act. From 1 January 2022, cigarettes, water pipe tobacco and so-called heat-not-burn products will be taxed at much higher rates. As from 1 July 2022, the substances for so-called e-cigarettes will also be subject to tobacco taxation, even if they do not contain any nicotine.

The start of 2022 has brought with it some changes. This also applies to matters relating to customs law. Our newsletter summarizes the most important changes - also with regard to foreign countries.

In practice, the lack of deductibility of irregular import VAT often leads to a final VAT burden falling upon the companies involved. The remedy could, in certain cases, be the analogous application of the customs law provision on the extinguishment of import duties. However, the ECJ has, in a recent decision, now rejected this.

On 1 July 2022 another important change in the tobacco tax sector came into force. Substitutes for manufactured tobacco, which were previously not subject to tobacco tax in Germany, are taxable as from 1 July 2022. This applies, in particular, to liquids for e-cigarettes, the market for which is ever-increasing. Under certain conditions, tobacco tax will be due on these liquids, even if they do not contain any nicotine. Those taxable persons concerned will, consequently, be faced with new challenges.

The impact of a subsequent adjustment of transfer pricing on the customs value of imported goods is an important issue for companies that purchase goods from third countries. Now the German Federal Fiscal Court has finally ruled that subsequent flat-rate adjustments to transfer pricing may no longer affect a customs value once it has been declared. The main customs offices will therefore now have to change their practice on post-release recoveries in the case of subsequent debit charges. Companies concerned should object to post-clearance recovery assessments and, if need be, request that the execution be suspended.

Important changes in excise duty law come into force on 13 February 2023. The so-called Excise Movement and Control System (EMCS) has now been extended to cover the movement of excise goods that are released for consumption between Member States. Minor procedural deviations in the excise duty suspension procedure will now no longer necessarily lead to the chargeability of excise duty. In the case of distance sales of excise goods, the regulations on the chargeability of excise duties have now changed, making it easier for distance sellers from other EU countries to enter the German market.