European Commission customs harmonisation poses risks for cosmetics importers
Planned reforms to create a harmonised and modernised EU customs code could force EU personal care product importers to pay higher customs duties. The European Commission is proposing to ban importers from declaring the price that a foreign exporter paid to a local supplier before they shipped the goods to Europe, which could be less than the price paid by the eventual European customer. This ‘first sale for export’ valuation is been opposed by the World Customs Organisation – and the Commission is taking its advice.
Planned reforms to create a harmonised and modernised EU customs code could force EU personal care product importers to pay higher customs duties. The European Commission is proposing to ban importers from declaring the price that a foreign exporter paid to a local supplier before they shipped the goods to Europe, which could be less than the price paid by the eventual European customer. This ‘first sale for export’ valuation is been opposed by the World Customs Organisation – and the Commission is taking its advice.
Another planned change focuses on royalties and licence fees covering permissions to exploit intellectual property rights. These are currently excluded from the customs valuation, if an exporter can choose suppliers who did not directly demand their payment. But Brussels wants royalties and licence fees included in valuation wherever the value of goods included some kind of trademark, patent, copyright of other intellectual property right – in practice almost any branded good.