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Court rules on EU-Singapore trade deal process, with Brexit implications

Legislation | | MIC Customs Solutions |

The European Court of Justice has determined that the planned free trade deal between the EU and Singapore must be approved by all European member states before it can become law.


A court ruling on the legal process underpinning the planned trade deal between the European Union and Singapore could have numerous repercussions for other trade pacts agreed in future.

The European Court of Justice has ruled the proposed EU-Singapore deal requires the individual ratification of all 28 EU member states before it can become law, and that the EU does not have the power to conclude the deal on its own.

Agreed in September 2013, the deal is part of a new generation of bilateral free trade agreements that goes beyond the classical provisions on the reduction of customs duties and non-tariff barriers to also include rulings on related matters such as intellectual property protection, investment, public procurement, competition and sustainable development.

The European Commission and European Parliament had argued that the EU should have exclusive competence enabling it to sign and conclude the agreement by itself, but the court has decided that since the deal concerns matters of non-direct foreign investment and dispute settlement between investors and states, it must be signed off by member states on a case-by-case basis.

A statement from the European Commission said: "The European Commission welcomes today's opinion of the European Court of Justice on the division of competences between the EU and the member states in the EU-Singapore trade agreement.

"The commission will now carefully assess and analyze the opinion of the court and will continue engaging with the European Parliament and member states on the way forward."

This decision could have particular implications for the UK, which has expressed a desire to quickly secure a new free trade deal with the EU before it leaves the bloc in March 2019.

Confirmation that any such deal would need to be approved by all member states could result in a final agreement being delayed, as was the case with the recent EU-Canada trade deal, which was almost derailed entirely due to opposition from one of Belgium's regional parliaments.


Software Solutions
MIC - Customs and Trade Compliance Software Solutions worldwide

Multinational companies are facing greater compliance challenges when addressing the continuously evolving international legal requirements. Customs and trade compliance management has a significant impact on production location and purchasing decisions, delivery times, cost savings and competitive advantages. Thus, it is crucial to establish processes that are accurately, effectively, and efficiently managed utilizing proven global IT solutions.

The international requirements for companies regarding customs and trade compliance management are complex and subject to ongoing legal changes covering a multitude of topics, such as: Correct product classification, compliance with export control regulations, numerous sanction list screenings, calculation of origin based on ratified free trade agreements, supply chain security initiatives, and management of special customs regimes as part of the import and export clearance processes. In addition, country-specific legal requirements that include legislative and technical changes make it increasingly difficult to completely fulfill the requirements of international customs and trade compliance.

A partnership with MIC strengthens a company’s ability to deal with the daily operational challenges of international customs and trade compliance management. MIC has a trendsetting Global Trade Management (GTM) software solution that allows companies to standardize and automate their customs and trade compliance processes. MIC’s software solution is available on 6 continents and can be configured according to the company’s specific needs to significantly improve legal compliance, thus saving time, money, and eliminating future business disruptions.

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MIC provides the software via its data center infrastructure. On request, a MIC partner can take over the daily operational handling (managed services).

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Automated electronic export and import customs clearance processes, including special customs regimes and inventory management: Import, Export, Transit, Inward & Outward Processing Relief, Bonded Warehouse, Foreign Trade Zones, Intrastat, Central Clearance – SASP, EMCS and more. “We do the last mile!”

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Central Classification

Global part master data management with increased degree of automation in customs tariff & export control classification of products based on regularly updated national customs tariffs and export control commodity lists.

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FTA Management

Automated preferential and non-preferential origin calculation for 250+ free trade agreements as well as electronic exchange of customer supplier declarations. Management of supplier declarations via supplier web portal.

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Central export control check of business transactions, including sanctioning list check, embargo check, end-user / end-use check, determination of approval requirements and management of approvals.

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There are various customs regulations and requirements programs throughout the world. Examples include ACE, FTZ and Duty Drawback in the USA, IMMEX in Mexico, the Union Customs Code (UCC) in the EU (and its various national characteristics), the Free Zone in Thailand, and the China Single Window. All of these have the objective of making customs procedures simpler, more modern and more efficient.

MIC Global Trade Management (GTM) software helps companies maintain international visibility and to take advantage of these program changes in legislation. We know the intricacies of national and regional customs and export control requirements. Our software takes account of the respective regulations and uses similarities in global customs and export control law. This is done in 55+ countries on 6 continents with regularly updated trade content for 150+ countries. In addition, our data analytics & visualization tool enables improved decision making by identifying optimization potentials and supply chain trends across global customs and trade compliance processes. As a result, global business processes can be designed and automated more efficiently. This not only increases compliance, but also saves time, money and increases global competitiveness.

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