The current COVID-19 pandemic has disrupted supply chains and logistics practices around the world. It has forced us to take a serious look at end-to-end solutions, globalisation, and how it works for our businesses. The European Union have made some changes to customs regulations allowing products specific to the fit against COVID-19 enter into free circulation more easily.
Customs Duty Relief
For example, EU Commission Decision (EU) 2020/491 on 3 April 2020 provides for the importation of goods to combat the effects of COVID-19 from outside the European Union (EU) without the payment of Customs Duty and Value-Added Tax (VAT) from 30 January 2020 to 31 July 2020. In addition, critical pharmaceutical products and medicines were given a Customs ‘green routing’ to facilitate uninterrupted importation and supply.
In order to qualify for relief, goods must be imported to combat the effects of COVID-19 and be imported by one or on behalf of the following organisations:
- State bodies, public bodies and other bodies
governed by public law - Disaster
Relief Agencies - Organisations
approved by Revenue including organisations regulated by the state and involved
in the care, support, and treatment of people at risk of COVID-19
For more information on customs reliefs pertaining to the COVID-19 pandemic visit the Revenue website
Export Authorisation Scheme
EU Commissioner for trade Phil Hogan, announced on April 24th that there would be adjustments made to the Export Authorisation Scheme for Personal Protective Equipment (PPE). The adjustments require Member States to swiftly grant authorisations for exports for humanitarian purposes.
Phil Hogan commented: “The scheme reflects our continuing commitment to protect people’s health and support humanitarian actions and the needs of our neighbours or trade partners. We have concluded that a short extension of the export authorisation requirements is consistent with those commitments. This scheme is also fully in line with our commitments at the G20: it is temporary, targeted, proportionate and transparent.”
For an extensive report on the new Export Authorisation Scheme visit the EU Commission’s website
Future proofing
As we come out of lockdown around the world, we still must be vigilant when it comes to coronavirus prevention measures including social distancing and regular handwashing. The narrative in the media is one of a post- Covid-19 world and how certain things may never be the same. This is in part true, but we will be living with COVID-19 for the foreseeable future. It is worth noting that no vaccine has yet been discovered for SARS or MERS. These are both types of coronavirus.
The tendency towards digitalisation of logistics processes may very well accelerate due to the changes companies experience in 2020. Close physical contact at warehouses, ports and office spaces may become a thing of the past. For more on how to implement new digital processes click here.
