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The latest issue of our regular TradeWatch publication is now available.

This publication outlines key legislative and administrative developments for customs and trade featuring insights and tax alerts from our network of Global Trade professionals trade around the world. It comes in an interactive and easy to share format, with links to articles on ey.com and other EY resources.

In this first edition of the year, we see several of the trade trends that we identified in 2022 —supply chain disruption; a focus on environmental, social and governance (ESG) matters; and ongoing uncertainty around customs valuation — are still high on the agenda, and they are still presenting challenges and opportunities for businesses.

In 2023, we continue to experience high levels of trade disruption. For example, as a result of the war in Ukraine, countries continue to impose or increase sanctions and resettle sources and supplies of vital energy products and we are seeing stricter export controls for technological products from the US to China, also affecting supplies for other parts of the world to China.

We continue to explore customs valuation issues and look at the interplay of transfer pricing and customs valuation in Brazil, where new transfer pricing guidelines have recently been introduced, and in the UK, where new tax authority guidance throws significant doubt on the use of customs valuation Method 1 for intercompany imports. We also focus on the European Union’s binding valuation information process, a potential opportunity for EU importers to gain certainty about their customs values in the future.

Key upcoming developments in the ESG sphere that directly affect the trade function include the introduction of the European Union’s carbon border adjustment mechanism (CBAM) on 1 October 2023 and the EU’s deforestation regulation effective from 1 January 2024.  Our authors also consider controls on the exportation of strategic goods from the Philippines and measures in Canada to prevent the use of forced labor.

Americas

• Brazil: New transfer pricing rules and their impact on customs valuation

• Canada Border Services Agency (CBSA) releases guidance on Select Luxury Items Tax enforcement and administration

• Canada proposes new reporting obligations on modern slavery in supply chains in 2024

• Colombia: Government increases customs tariff for apparel and footwear imports

• Colombia: Examining the impact of tax reform on free trade zones

• US: WTO rules against the US in cases involving Section 232 tariffs, China origin-marking

Asia-Pacific

• Japan: 2023 tax reform changes to the customs law

• Japan/Indonesia: Economic Partnership Agreement — introducing electronic certificates of origin

• Indonesia: New customs procedures for importing software and digital goods electronically

• Philippines: Customs audits and the Prior Disclosure Program

• Philippines: Strategic trade management update

Europe, Middle East, India and Africa (EMEIA)

• EU: European Commission publishes draft legislation for binding valuation information

• EU: Russia sanctions pose challenges for companies

• EU: Updated CBAM regulation published

• Kingdom of Saudi Arabia: Clearance within two hours initiative

• UK: Customs valuation policy shift — Method 1 under threat for multinationals

• UK: Top seven trade trends in 2023

Why TradeWatch?

In today's global economy, moving goods internationally can be a complex and costly activity. TradeWatch provides timely information about customs and international trade developments to help you develop strategies to manage duty costs and the risks of global trade, to improve trade compliance and to increase the operational effectiveness of international supply chains.

Access the latest issue in the form of an interactive PDF, or please find the file attached below.

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TradeWatch 2023 | Issue 1