On 17 May 2023, the European Commission has published proposals of significant reforms of the EU Customs Union, describing them as ‘the most ambitious and comprehensive reform of the EU Customs Union’ since its inception 1968. The reforms will create a data-driven vision for EU customs and simplify and enhance the customs procedures. According to the Commission’s press release, the reforms respond to the current pressures under which EU customs operates, including a huge increase in trade volumes especially in e-commerce, a fast-growing number of EU standards, unnecessarily complex customs procedures and shifting geopolitical realities and crises. The reforms are promised to make the customs framework fit for a greener, more digital era and contribute to a safer and more competitive Single Market and to reduce costs significantly. The Union Customs Code will be repealed and a new UCC introduced with a complete rearrangement of articles. The reform is awaited, as especially the national customs administrations wish for cost savings and streamlined and simple processes through digitalization.

Over recent months, one of the most highly debated issues in the field of international trade law has been the expected introduction of a novel instrument of trade restrictions – the so-called Outbound Investment Screening. In Berlin, Brussels and Washington DC, governments and legislators are currently engaged in discussions over the exact nature of the tool, which seeks to both monitor and – under certain circumstances – restrict investments by Western companies in third countries (in particular China). While reports suggest that a Presidential executive order on this subject is imminent in the US, the EU has now equally taken a further step to clarify its intentions through a newly published position paper, which forms part of the new “European Economic Security Strategy”. The document entitled An EU approach to enhance economic security begins to illustrate how the European Commission intends to conceptualise the instrument for the EU single market, with European Commission representatives announcing concrete proposals for the end of the year. The position paper’s contents are also likely to have significant influence on the ongoing reform attempts by the German Ministry for Economic Affairs and Climate Action.

BLOMSTEIN assists Goodwin with regard to the foreign direct investment law aspects of Summit Partners’ sale of shares in ELATEC group. The shares will be acquired by SGT German Private Equity, a subsidiary of the renowned private equity firm SGT Capital. With a transaction value estimated at approximately EUR 400 million, the deal is expected to close later this year, pending the fulfillment of customary regulatory approvals.

On 18 April, the European Parliament adopted the CBAM, an unprecedented carbon border adjustment charge, which takes into account the greenhouse gas emissions embedded in imported goods of emissions-intensive sectors with a high risk of so-called “carbon leakage”. Carbon leakage takes place when, for reasons of costs related to climate policies in the EU, businesses transfer their production plants to other countries outside the bloc with less costly climate policies (see our briefing from July 2021). The initiative is part of the 2030 Climate and Energy “Fit for 55” legislative package under the European Green Deal, an ambitious plan to reduce greenhouse gas emissions by at least 55% until 2030 compared to the levels of 1990.

On 19 April, the European Parliament approved the Regulation on deforestation-free products, which prohibits the placement of a number of agricultural and livestock products originating from deforested or degraded forest areas on the EU market (text will be available here). The Regulation aims to block imports associated with deforestation, particularly cattle (whether live, meat or leather), cocoa, coffee, palm oil, soy, timber and rubber (read our briefing from November 2021).

In its ruling dated March 9, 2023, in the case C-571/21, the ECJ clarified that electricity manufacturers are entitled to exemption from electricity tax for a large number of operations that are upstream and downstream of the actual generation of electricity, in accordance with an interpretation of national law that is consistent with EU law. The ECJ thus sets limits to the hitherto prevailing view in customs administration and case law.

After a reportedly heated debate among EU leaders, the EU has adopted its long announced tenth package of sanctions at the anniversary of Russia’s aggression against Ukraine. The latest package introduces yet another set of comprehensive sanctions, including additional financial sanctions on individuals, companies, and three additional Russian banks, the expansion of export and import bans, measure aimed at strengthening enforcement and preventing circumvention, as well as further measures. No additional measures were taken with respect to Belarus. Here are the details:

At the beginning of February, the European Commission (Commission) presented its Green Deal Industrial Plan, a package of measures designed to help the EU industry to make progress in the transition to climate neutrality and strengthen its position in global competition.

The 12th edition of Getting the Deal Through: Foreign Investment Review has just been published. Roland Stein and Leonard von Rummel once again contributed the chapter on the German foreign investment review regime, as in the previous years’ editions.

After 6 years of a loud silence, Germany has re-established its relationship with Brazil. Chancellor Olaf Scholz paid an official visit to Brazil on 30 January 2023 with a bag of 200 million euros in investments on environmental / sustainability initiatives in Brazil, and a clear interest on fostering sustainable agriculture, the production of green hydrogen and to advance trade agreement between the Southern Common Market (Mercosur) and EU.