Customs and trade compliance requirements

Country of origin

The basis for origin legislation is the 'Rules of Origin'. In addition, various countries or regions maintain agreements with other countries or groups of countries - often these are so-called Free Trade Agreements. Correct proof of the goods' origin is therefore crucial in international trade. The necessity of complete proof of origin information and documentation is a consequence of the most diverse customer requirements.

Regarding the European Union, if goods are manufactured in and sourced from the EU or any other country where the EU maintains a trade agreement, Nord Gas Solutions prefers these to have preferential origin status, as this will also serve our customers globally once they have to import the products involved.

Due to the global distribution of materials, Nord Gas Solutions requires the official ISO country code of the material involved. This means a miscellaneous or unspecified code such as: EU, QQ, QR, QS, QU, QV, QW, QX, QY, QZ cannot be accepted.

Origin related documents

We request suppliers to always include customs and trade compliance related data on origin and commodity code (and where relevant, also ECN/ECCN for dual use products) on the invoices at each material item line specified.

Process for European Union based vendors

The European Union provides general guidelines on supplier declarations. Long-term declaration is valid for all deliveries for mentioned materials during the stated validity date.

Single consignment declaration is recommended when the origin of the product changes from delivery to delivery.

Single consignment declarations may also be included directly on the related invoice and/or other commercial document for that specific delivery, such as delivery note or packing list.

It is preferred that preferential and non-preferential status materials are separated, so that they are not put on one declaration, and that the relevant document template is used.

Process for non-European Union based vendors

As indicated above, origin information should be included on commercial documents, such as invoices.

1. In situation that the country of departure has a trade agreement with the EU, such as a Free Trade Agreement, (Stabilisation &) Association Agreement:

If a trade agreement exists between the exporting country and the EU and also the origin qualifies for preferential treatment, then indicate the preferential (or where valid, the non-preferential) statement on the documents, and whether the exporter qualifies as Registered Exporter or Approved Exporter. In such cases the customs authorisation number should also be included in the statement.

2. In situation that the country of departure has no trade agreement with the EU:

If no trade agreement exists then at least we require the relevant customs and trade compliance related data (e.g. country of origin, HS code, ECN/ECCN, etc.) to be included on the invoice and/or other commercial documents, such as delivery note or packing list.

Tariff classification

General

All products are classified under a commodity code that carries information on:

• duty rates and other levies on imports and exports

• any applicable protective measures (e.g. anti-dumping)

• trade statistics / trade negotiations

• import and export formalities and other requirements such as restrictions

• shared product description with all similar products classified under a specific code based on the classification rules

Correct classification is the key for smooth customs clearance processes across the world, ensuring compliance by paying the correct amount of import VAT and duties.

Harmonized System nomenclature

• The Harmonized System nomenclature (HS) is an internationally standardised system of names and numbers to classify traded products, maintained by the World Customs Organization.

• There are specified HS classification rules for every commercial product.

• HS-code works as a common language between countries and customs territories. This is done by encoding the goods description in a number format to be read by using the local language at destination.

Export control and sanctions

Nord Gas Solutions is committed to complying with all mandatory domestic and applicable international export laws and regulations. Nord Gas Solutions supports the efforts of the international community to prevent the manufacture and proliferation of chemical, biological and nuclear weapons and their delivery mechanisms, as well as to combat international terrorism.

Export control is an internationally used legal instrument focusing on cross-border exchange of goods and services (so called controlled items) relevant from a security policy point of view. By export control, a country's or economic area's foreign trade may be subjected to legal restrictions.

Sanctions are political instruments of national and international organisations, including but not limited to the United Nations and the European Union. Nord Gas Solutions and its employees are required to comply with all national and international export control and sanctions legislation applicable to Nord Gas Solutions' business operations.

For further information on customs and trade compliance requirements, please visit nordgassolutions.com or contact your Nord Gas Solutions representative.