25 March 2022

TCG DISCUSSES IMPACT OF WAR IN UKRAINE ON TRADE AND LOGISTICS

On 24 March, CLECAT attended a special ad hoc meeting of the DG TAXUD Trade Contact Group (TCG), dedicated to the war in Ukraine and the challenges EU traders and logistics operators are confronted with. Many TCG members provided factual updates on how the ongoing war in Ukraine and EU trade sanctions against Russia and Belarus are impacting trade and logistics, as well as various recommendations on how to better cope with the operational disruptions. The Commission also presented recent initiatives towards improving coordination among Member States and providing better guidance on the implementation of the EU sanctions currently in place.

CLECAT expressed its appreciation for the opportunity to present the experiences of the European freight forwarders and customs brokers, who are heavily impacted by the war in Ukraine. CLECAT informed the Commission on the operational challenges CLECAT members are experiencing on the ground, including a sharp decrease in trade to Russia and Belarus, as well as Ukraine, lack of sufficient transport operations due to lack of HGVs and drivers, and increased fuel prices, major congestions in port terminals, as well as a boom in physical inspections of cargo leading to additional delays. CLECAT stressed the existing confusion over the EU trade sanctions and their implementation and the diverging approaches by Member States to controls. Regarding cross-border movements of humanitarian aid, CLECAT highlighted the need for detailed guidance on the customs simplifications that have been introduced and an indicative list of goods that could be covered by the facilitations.

Standing in full solidarity with the people of Ukraine, CLECAT and its members will continue to support the Commission towards better implementation of the EU sanctions against Russia and Belarus and addressing the challenges to EU industry stemming from the war in the best way possible.  In this respect the risk of circumvention of the EU sanctions was raised by CLECAT, referring to measures that are already taken to avoid serving ‘hidden exports‘ and related liabilities. The Commission informed in this regard that a special notice was under preparation urging economic operators to pay extra attention to trade transactions and efforts of circumvention.

CLECAT also put forward five specific recommendations to the Commission that could contribute to alleviating the impacts of the war on the industry. CLECAT called for swift and pragmatic solutions to address operational disruptions, referring particularly to the possibility to extend the time limits for temporary storage. CLECAT also highlighted the need for detailed guidance for economic operators on existing measures and their implementation, as well as guidance relating specifically to the movement of humanitarian aid to Ukraine. Other recommendations included the need for better coordination among Member States on the implementation of sanctions and related controls, as well as regular ‘temperature check’ with economic operators. Finally, a call was made for a centralised, up-to-date information portal for easier access to relevant developments.