Customs Policy

EU anti-dumping (AD) measures are essential to protect European producers from unfair competition from abroad. At the same time, it must be ensured that their application complies with the rules of the World Trade Organisation (WTO). The EU completed the reform of its trade defence instruments, including AD measures, in July 2018.

Bernd Stadtler, chairman of the BDI Working Group on Customs and Trade Defence Instruments, asserts that the corona crisis must not be used as a further catalyst for rising protectionism. In this interview, he discusses the impact of the Covid-19 pandemic, the future relationship with the United Kingdom and European trade defence instruments.

Rules of origin determine when a product can be traded under the preferential conditions of a Free Trade Agreement (FTA). They are intended to prevent trade diversions. However, they significantly increase the complexity of trade agreements. Small and medium-sized enterprises (SMEs), in particular, suffer from the additional bureaucratic costs. Rules of origin should therefore be simplified and harmonised.

In 2019, total trade in goods between the United Kingdom and the other Member States of the European Union  amounted to more than 500 billion euro. Brexit will have a lasting impact on these close economic ties. A hard Brexit would entail severe costs for both the UK and the EU. But even a Free Trade Agreement means less economic growth and job losses on both sides of the Channel.

Customs procedures at the borders ensure the protection of citizens, the economy, and the state. As a result of the terrorist attacks of September 11, 2001, these controls were significantly tightened. Since then, states have focused on greater security in the supply chain. The Authorized Economic Operators (AEOs) is an important tool to ensure high standards of security while at the same time customs clearance is accelerated. But more needs to be done to realize the full potential of the AEOs.

Clearing goods at customs originally meant a lot of bureaucracy and paperwork. For many countries this is still the case today. In the EU, electronic customs procedures are already the norm. However, they vary from country to country and a large number of contact persons makes the clearance of goods unnecessarily burdensome. In the digital age, responsibilities should be more centralised and custom procedures further digitalised.