In the ever-changing global trade landscape, the new year goes hand in hand with regulatory disruptions and new rules.
Whether you are an online seller, logistics provider, postal operator, or customs broker, to start 2023 off right, you need to know what may disturb your cross-border activities. To help you save time and plan accordingly, we compiled the most important rules that will impact you in 2023.
Are you searching for a reliable solution to automate your global trade and compliance processes? Let’s have a chat!
1 New Singapore GST rules impact businesses selling goods to Singapore
On January 1, 2023, Singapore changed the way it handles the collection of goods and services tax (GST) on low-value imports. GST is now owed on all goods, regardless of their value. Simultaneously, the GST rate has been raised from 7% to 8%. If you send low-value and B2C shipments to Singapore and specific conditions are met, you will have to get a Singapore GST number, collect GST on low-value orders (less than S$400), and remit GST to the Singapore Tax authorities (IRAS) quarterly.
Learn more about the new Singapore GST rules here.
2 Nomenclature updates impact HS code allocation
It is well-known that all items shipped across borders need to be allocated an HS code. Even though the first 6 digits of an HS code are standardized, countries can extend codes with their own nomenclatures to have more targeted tariff policies. While the HS nomenclature is updated every 5 years, country-specific nomenclatures are updated on a more regular basis. Many major markets around the globe like the EU, UK, US, Canada, or GCC published new versions of their nomenclatures, that they implemented from January 1, 2023.
This means that the commodity codes that were accepted by customs in previous versions can become invalid, and new ones can be added. For example, the EU nomenclature significantly changed. Around 300 10-digit codes are becoming invalid, and about 300 new codes have been added. If you are not using an automated solution to allocate HS codes, you need to make sure that you are using the latest versions of the nomenclatures to avoid incorrect declarations and customs delays. With Eurora’s HS code allocation service, you free yourself from manual labor and errors. You can automatically allocate country-specific codes for your goods in real-time, and our database is constantly updated with the latest nomenclature changes.
3 New Dubai Customs duty charges impact businesses selling goods to the UAE
From January 1, 2023, all items shipped from outside the UAE with a value above Dh300 are subject to customs clearance and duties, replacing the previous threshold of Dh1000. Imported products with a value below Dh300 are still free from customs taxes. However, products like tobacco, tobacco goods, e-cigarettes, nicotine liquid, alcoholic drinks, and alcoholic snacks are not exempt from customs taxes, even if they have a low value.
The Dubai Notice No. 5 of 2022, set the charges to 5% for import customs duty, and 5% Value Added Tax (VAT) on imported goods with a value above Dh300. These charges apply to the customers, which can disrupt your activities in the UAE.
4 New Norwegian customs regulations impact exporters to Norway
On 1 January 2023, a new customs legislation was introduced in Norway. Most of the existing legislation is continued in a new form, but there are also specific changes to the customs procedures that impact exporters to Norway. That is why it is crucial for exporters to understand the new legislation and implement changes in logistical procedures and IT systems, so they can avoid delays.
The most significant change affects the import procedures. Currently, goods in transit can be cleared through customs within 10 days when they reach the Norwegian customer. Under the new legislation, goods will have to be cleared through customs before being imported into Norway. This means that it will no longer be possible to ship goods to Norway without all the paperwork in order at the time of departure. This part of the new customs legislation will be implemented gradually, and the customs authorities intend to make it mandatory from September/October 2023.
5 Changes in tariffs impact sellers’ final prices
When you sell goods across borders, the final price that customers pay is impacted by the different tariffs that countries put in place. Tariffs are intended to protect local industries by making imports more expensive and driving consumers to domestic producers. Countries can, on the contrary, decide to set special rules to encourage foreign trade or have trade agreements with other countries. Either way, tariff policies have an impact on sellers, and they are often updated. That is why you should keep an eye on your customers’ markets.
Among the major updates this year, we can mention the UK which launched the new Developing Countries Trading Scheme (DCTS). It will extend tariff cuts to hundreds more products exported from 65 countries across Africa, Asia, Oceania, and the Americas. For example, some seasonal tariffs are removed, meaning that British customers will have more options in shops all year round. In China, however, the Tariff Adjustment Plan raises the import and export tariffs on some commodities to assist with the development of domestic industry and cope with changes in supply and demand.
6 ICS2 second release impacts businesses importing into the EU
In March 2023, the EU will introduce the second release of its Import Control System 2 (ICS2). All goods transported to or through the EU by air will have to come with a new and complete set of data. Although air carriers, postal operators, and express couriers are the ones legally responsible for complying with the second release of ICS2, retailers will also be impacted.
HS codes will be required on customs forms and if retailers do not provide HS codes with their shipments, the carrier or logistics provider will have to assign them. In addition, vague item descriptions on customs forms such as “gifts,” “clothing,” and “electronics” will no longer be acceptable. If your business is not on top of HS code allocation, opting for an automated HS code allocation service like Eurora’s is a safe bet. Learn more about ICS2 second release and how Eurora can help you.
7 The new Customs Declaration Service impacts imports and exports in the UK
On 31 March 2023, the HM Revenue & Customs (HMRC) will be closing its Customs Handling of Import and Export Freight (CHIEF) system. From this date, if you import and/or export from the UK, you or your customs broker will need to make declarations through the Customs Declaration Service (CDS). You will also need to register for CDS even if you use a customs broker for imports and exports.
This shift is operated in 2 phases. On 20 September 2022, the CHIEF system was closed for import declarations. As for export declarations, the CHIEF system will be closed on 31 March 2023. This means that exporters who are currently still using CHIEF should take steps today and make sure that they are able to make declarations via CDS instead, given the potential disruption to their supply chains.
8 The CARM impacts businesses importing into Canada
The Assessment and Revenue Management (CARM) project is a multi-year initiative that will transform the collection of duties and taxes for goods imported into Canada. The country is moving from a manual system to the CARM Client Portal (CCP), implemented in several phases. The first release in 2021 introduced the CARM Client Portal and importers can already get familiar with it. From October 2023, the CARM Client Portal will become mandatory, and new functionalities will be added.
This means that from October 2023, every company importing goods into Canada must be registered in the online CCP to carry on their activities. Even though the deadline is close to the end of 2023, it is important to get familiar with the portal today to ensure your activities won’t get disturbed. Sellers will either have to delegate brokerage responsibility to their carrier, give their customs broker access to their account, or work with the CCP themselves to manage and clear their shipments.
Stay compliant in 2023 with Eurora
With growing challenges in an increasingly complex trading landscape, businesses involved in the cross-border supply chain can get trapped in the regulatory maze. As a consequence, they face delays that will impact their end users’ experience.
Eurora simplifies cross-border trade and compliance processes for online sellers, carriers, postal companies, and customs authorities, improving efficiency, overall business flow, and customer experience for the end users.
By using Eurora’s cross-border compliance platform, you can:
- Assign HS codes: Get the correct HS/HTS code for your goods in real-time. We support up to 10 digits HS codes and country-specific nomenclatures.
- Calculate Duty & Tax: display the applicable VAT and duty rates in real-time at checkout. We support any currency and more than 160 countries.
- Put your EU tax compliance on autopilot: Eurora’s fully automated IOSS service offers a secure way to take care of your VAT registration and reporting when shipping goods to the EU.
- Check for restrictions: check if your items are subject to any import/export restrictions, and make sure your customer is not on any denied parties` list. Our database covers most countries in the world.
- Automate your customs declarations: use one single platform to automate custom declaration processes for the entire EU market. We fully support H7 and H1 customs declarations.