It is being reported from both sides of the Atlantic that the EU and the US have reached a provisional agreement in the long-running dispute over the EU ban on American hormone-treated beef.
What has been agreed?
Under the agreement, the EU will provide access at zero duty of up to 45,000 tons of US beef produced from non-hormone treated cattle. At present 11,500 tons of US beef are allowed into the EU and they are subject to a 20 percent duty rate.In return, the US has agreed to forego new sanctions against a wide-range of EU products that were due to come into force at the beginning of May 2009. The US has also agreed to eliminate all sanctions against EC products but in the fourth year of this agreement. Exporters who export to the US should be aware that existing (reduced) sanctions will remain in place for the coming four years.
EU-US Trade
The EU and the US form the largest bilateral trade partnership in the world in goods and services combined. Goods trade in 2008 amounted to €435 billion and in the same year the EU enjoyed a trade surplus of €63 billion in goods trade with the US, importing €186 billion while exporting €249 billion.
Action Steps
The additional customs duties under the above agreement are limited to a number of specific customs commodity codes.Businesses adversely affected by these measures should review the codes they use as errors are often made in this area.
If the codes used are correct and your goods suffer under these measures then we recommend you look at other planning issues to minimise the impact of these penalties including tariff engineering, stripping legitimate costs out of the customs value and the use of duty relief schemes.
If you would like to discuss any of these steps then please call Rob Jenkins on 01905 619229 or e-mail us at
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
"Rob explains clearly, and gets on with people. He is very constructive and pragmatic. His loyalty to the reds is admirable, if misguided. One of my favourite Scousers!"
{/tpfont}
Nick Mallett, Partner DHM Stallard
{tpfont}
"I have worked with Rob on complicated HMRC issues. As well as direct assistance, Rob has provided excellent training for operational staff. I recommend ITS."
{/tpfont}
G. Mitchell, Senior Operations Manager EPSON
{tpfont}
"ITS helped us to reach a successful conclusion when HM Customs tried to reject our proposed changes by using technicalities."
{/tpfont}
D. Suddens, Finance Manager Blanc Aero Industries UK Ltd
{tpfont}
"Rob has provided customs advice on many occasions, always demonstrating deep knowledge of his subject to help the business mitigate its duty liabilities."
{/tpfont}
Stuart Reid, Financial Director Komatsu UK
{tpfont}
"ITSs broad knowledge of Customs has proved invaluable"
{/tpfont}
D. Widdowson, Director of Financial Accounting Croda Chemicals Europe Ltd
{tpfont}
"ITS have highlighted significant cost saving opportunities."
{/tpfont}
CW Winter, Financial Controller Special Metals Wiggin Ltd.
{tpfont}
"ITSs experience and knowledge has ensured projects were completed with a favorable result."
