Andorra is taking a significant step forward in customs modernization with the approval of the new Customs Code, set to come into force on April 1, 2025. This legislative update aims to align Andorra’s customs procedures with European Union (EU) regulations, simplify administrative processes, and introduce key benefits for businesses engaged in international trade.
Key Objectives of the New Customs Code
- Harmonization with EU Regulations
- The new code transposes the EU Customs Code in accordance with the customs agreement between Andorra and the EU.
- Ensures compliance with European standards to facilitate smoother trade relations.
- Simplification and Digitalization
- Elimination of paper customs declarations, streamlining procedures for businesses.
- Automatic return of goods without prior request, reducing bureaucratic burdens.
- Faster and more efficient customs processing through digital solutions.
- Benefits for Authorized Economic Operators (AEOs)
- Reduction or exemption of financial guarantees, improving cash flow for businesses.
- Fewer physical and documentary controls, speeding up import/export operations.
- Automatic access to special customs regimes, enhancing operational efficiency.
- Expanded Rights for Operators
- Broader scope of binding consultations, now covering the valuation of goods in addition to classification and origin.
- Introduction of appeal rights in cases of unfavorable customs decisions.
Combatting Illicit Trade: Updates to the Control of Sensitive Goods Law
In parallel with the new Customs Code, the Andorran government has also approved amendments to the Law on the Control of Sensitive Goods to strengthen measures against illicit trade, particularly in tobacco products. These changes include:
- Mandatory card payments for tobacco purchases exceeding a certain threshold.
- New licensing requirements for companies transporting tobacco within Andorra.
- Expansion of the law to cover water pipe tobacco, ensuring regulatory oversight of emerging product categories.
What This Means for Businesses
For companies engaged in international trade, these reforms bring greater efficiency, reduced compliance costs, and enhanced legal clarity. The new Customs Code represents a pro-business approach, fostering a more transparent and predictable trading environment while reinforcing Andorra’s position in the global economy.
With the April 2025 implementation date approaching, businesses should prepare for the transition by familiarizing themselves with the new regulations and assessing potential benefits under the revised framework.
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