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Customs Duty Reliefs Due to COVID-19

COVID-19 pandemic has disrupted supply chains and logistics practices around

CustomsBusinessJune 9, 2020

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
  • Disaster
  • Organisations

governed by public law

  • Disaster
  • Organisations

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.

Contact Custran today for your no obligation, free first consultation