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Navigating 2024’s New Regulations: Impact on UK, EU Supply Chains

As 2024 unfolds, a wave of new regulations in international trade and customs are poised to reshape operational dynamics for businesses. Understanding these changes is crucial for resilience and success in international trade. Ligentia can help navigate these changes and optimise your customs processes.

EU Emissions Trading System (EU ETS):

Starting January 1, 2024, the EU will integrate shipping into the ETS, imposing emission limits and requiring emissions allowances. This applies to all voyages touching EU/EEA ports, escalating from 40% to 100% of emissions subject to pricing by 2026.

  • UK impact: Expect alterations in shipping costs and availability when importing or exporting through EU/EEA ports, aligned with emissions trading regulations.
  • EU impact: Direct implications for businesses operating within the EU/EEA, necessitating compliance with emission limits and purchase of allowances.
  • Cross-border impact: Dual compliance requirements in both regions, impacting pricing structures and supply chain efficiency.

How we help: We can advise on emission calculations, allowance procurement, and optimising trade routes to minimise costs.

Carbon Border Adjustment Mechanism (CBAM):

To curb carbon leakage, the EU plans to price carbon-intensive imports like cement and steel. The transitional period requires quarterly emissions reporting starting January 31, 2024.

  • UK impact: Anticipate potential cost increments when importing carbon-intensive products into the UK due to the EU’s pricing mechanism.
  • EU impact: Implications for maintaining competitiveness against imports from regions with less stringent climate policies, influencing pricing and procurement strategies.
  • Cross-border impact: Analyse the origin and type of imports to determine CBAM applicability and potential cost increases.

How we help: We can help classify goods under CBAM, calculate carbon costs, and advise on optimising import strategies to minimise the impact.

European Union Combined Nomenclature (CN):

The updated CN, effective January 1, 2024, forms the basis for customs declarations. Compliance is crucial to prevent customs errors and delays for goods entering or leaving the EU.

  • Impact for all: Businesses trading with updated or new CN codes need accurate reflection in customs declarations to avoid delays and fines. Update master data and templates.

How we help: Our experts can ensure accurate CN classification, update your documentation, and handle customs declarations seamlessly.

Border Target Operating Model (BTOM) – UK only:

Phased implementation starts January 31, 2024, introducing health certification for certain imports from the EU. Further phases in April and October 2024 will bring additional changes to border processes.

  • UK impact: Businesses importing medium-risk animal products, plants, and high-risk food from the EU need health certificates starting January 31st. Pre-notification for low-risk plant products from the EU is removed.

How we help: We can guide you through BTOM requirements, obtain necessary certificates, and ensure smooth border clearance for your goods.

Import Control System 2 (ICS2):

Updated customs safety and security system launching March 1, 2024. Compliance involves acquiring an EORI number and self-conformance testing for businesses transporting goods to or through the EU.

  • UK impact: Alignment with updated EU customs security regulations for goods moving through or into the EU, impacting procedural adherence.
  • EU impact: Adherence to updated EU customs security regulations for goods entering or transiting through the EU/EEA region.
  • Cross-border impact: Enhanced compliance requirements for goods moving between the UK and EU, necessitating aligned adherence to customs security measures.

How we help: We can assist with EORI registration, ICS2 testing, and ensure your systems meet the new requirements.

Customs Declaration Service (CDS):

The CDS is the UK’s single customs platform for submitting import and export declarations. It’s mandatory for all businesses moving goods into or out of the UK, replacing previous customs systems, from 30 March 2024.

  • Impact for all: Businesses trading with the UK must use the CDS for customs declarations, requiring software adaptation and potential training for customs teams.
  • UK impact: Businesses within the UK need to adapt their systems and processes to comply with CDS requirements.
  • EU impact: Businesses exporting to the UK need to ensure their systems and documents are compatible with the CDS platform.
  • Cross-border impact: Businesses trading between the UK and EU need to adapt their processes to accommodate CDS requirements for both import and export declarations.

How we help: Ligentia has extensive experience with the CDS and can assist with:

  • Documentation and declarations: We can help you prepare accurate and compliant customs declarations through the CDS system.
  • Post-declaration checks and amendments: We can assist with managing post-declaration checks and amending declarations if necessary.

Northern Ireland Retail Movement Scheme:

Phased labelling requirements for food products entering Northern Ireland. The second phase, effective October 1, 2024, expands labelling criteria for dairy products, impacting imports into Northern Ireland and Great Britain.

  • UK impact: Impact on labelling requirements for goods moving into Northern Ireland under specific schemes, potentially influencing packaging and labelling practices.
  • EU impact: No direct impact unless involved in trade specific to Northern Ireland.
  • Cross-border impact: Potential adjustments in labelling practices for goods traded between the UK and Northern Ireland, impacting packaging and information dissemination.

How we help: We can advise on labelling requirements, prepare compliant labels, and manage the labelling process for efficient customs clearance.

EU-Japan Economic Partnership Agreement (EPA):

Negotiations to include cross-border data flow rules in the EPA benefit various sectors, easing online business and data handling. The agreement’s expected amendment will eliminate stringent data storage requirements.

  • UK impact: Potential benefits from eased online business and streamlined data handling in trade with Japan, impacting digital commerce strategies.
  • EU impact: Direct impact on trade facilitation and digital commerce practices when dealing with Japanese markets.
  • Cross-border impact: Operational adjustments necessary for trade interactions between the UK, EU, and Japan, aligning with the amended partnership agreement.

How Ligentia can help

Ligentia’s team of customs experts is here to guide you through these changing regulations and help you navigate the evolving UK / European trade landscape with confidence.

We assist in leveraging free trade agreements, optimising customs processes, including navigating the complexities of the CDS, and transitioning from transactional to strategic customs operations, ensuring businesses stay compliant and efficient amidst evolving regulations.

Contact Ligentia today to discuss your specific needs and how we can help your business thrive in the new regulatory environment.