Review of Three Major EU Regulations
1. Customs Duty Suspension Regulation:
Updates the EU’s duty relief system by suspending import duties on products with insufficient EU production. Introduces new product categories and partial duty suspensions, particularly for battery production materials until 2025. Contains detailed lists of products with specific CN codes, TARIC codes, and duty rates, along with technical specifications for chemical compounds and industrial products.
2. Financial Institutions Reporting Regulation:
Creates new uniform reporting formats for credit institutions and investment firms, implementing Basel III standards. Establishes comprehensive reporting requirements for own funds, financial information, exposures, and risks. Introduces new elements such as crypto-asset exposure reporting and output floor reporting templates. Sets varying reporting frequencies (monthly to annual) and includes specific requirements for Global Systemically Important Institutions. Full implementation scheduled for June 2025.
3. Maritime Emissions Monitoring Regulation:
Expands greenhouse gas emissions monitoring to include 31 types of offshore vessels. Modifies CO2 emission factors for renewable and low-carbon fuels in maritime transport. Applies to vessels of 5,000 gross tonnage and above. Introduces specific provisions for Renewable Fuels of Non-Biological Origin, Recycled Carbon Fuel, and synthetic low-carbon fuels. Implementation dates are staggered: January 2024 for sustainable fuels and January 2025 for offshore ships monitoring.
Review of each of legal acts published today:
Council Regulation (EU) 2024/3211 of 16 December 2024 amending Regulation (EU) 2021/2278 suspending the Common Customs Tariff duties referred to in Article 56(2), point (c), of Regulation (EU) No 952/2013 of the European Parliament and of the Council on certain agricultural and industrial products
Essence of the Act
The regulation modifies the EU’s Common Customs Tariff duty suspension system by updating the list of products eligible for duty relief. It addresses supply gaps in the EU market by suspending import duties on products that are not sufficiently produced within the Union. The measure particularly focuses on agricultural and industrial products, including raw materials and intermediate goods needed by EU industries.
Structure and Main Changes
The regulation is structured around modifications to Council Regulation (EU) 2021/2278, primarily consisting of detailed product lists with specific tariff classifications. Key structural elements include:
– Comprehensive tables of products with CN codes, TARIC codes, and duty rates
– Specific end-use requirements for certain products
– Temporal provisions including review dates
– Special provisions for battery production-related items until December 2025
Key Provisions
The most significant provisions include:
1. Introduction of new product categories to the duty suspension list where EU production is insufficient
2. Implementation of partial duty suspensions for strategic sectors, particularly battery production
3. Technical updates to product descriptions and classifications to ensure proper application
4. Removal of products where duty suspension is no longer economically justified
5. Detailed specifications for hundreds of chemical compounds and industrial products with their corresponding technical parameters and duty rates
Commission Implementing Regulation (EU) 2024/3117 of 29 November 2024 laying down implementing technical standards for the application of Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to supervisory reporting of institutions and repealing Commission Implementing Regulation (EU) 2021/451
This Regulation establishes uniform reporting formats and requirements for credit institutions and investment firms regarding supervisory reporting to competent authorities. It implements changes introduced by the Basel III standards and replaces the previous Implementing Regulation (EU) 2021/451.The Regulation consists of 26 articles and annexes that detail specific reporting requirements across different areas including own funds, financial information, large exposures, leverage ratio, liquidity coverage, stable funding, asset encumbrance, and interest rate risk. It establishes frequency of reporting (monthly, quarterly, semi-annual or annual) and specific thresholds that trigger reporting obligations.The main provisions include:
- Detailed requirements for reporting on own funds and capital requirements, including new templates for output floor reporting
- Updated credit risk reporting templates reflecting changes to exposure classifications and risk weights
- New reporting requirements for crypto-asset exposures
- Revised reporting frameworks for market risk, operational risk and CVA risk
- Specific reporting obligations for identification of Global Systemically Important Institutions (G-SIIs)
- Technical specifications for data exchange formats and IT solutions to be developed by EBA
The Regulation introduces transitional provisions with extended remittance deadlines for the first reporting period in 2025 and will fully apply from June 28, 2025, replacing the previous reporting framework established by Regulation (EU) 2021/451.
Commission Delegated Regulation (EU) 2024/3214 of 16 October 2024 amending Regulation (EU) 2015/757 of the European Parliament and of the Council as regards the rules for the monitoring of greenhouse gas emissions from offshore ships and the zero-rating of sustainable fuels
This Regulation amends the EU rules for monitoring greenhouse gas emissions from maritime transport by including offshore ships and updating provisions for sustainable fuels. It extends monitoring requirements to a wide range of offshore vessels and establishes specific rules for zero-rating of sustainable fuels in maritime transport.The Regulation consists of two main amendments to Regulation (EU) 2015/757:
- Introduction of new Part AA in Annex I listing 31 types of offshore ships that must monitor their emissions during voyages to, from, and within EU ports
- Modification of Annex II regarding CO2 emission factors for renewable and low-carbon fuels to align with other ETS sectors
Key provisions include:
- Detailed classification of offshore vessels subject to monitoring, from anchor handling tug supply vessels to hopper dredgers
- Special rules for determining CO2 emission factors for Renewable Fuels of Non-Biological Origin (RFNBO), Recycled Carbon Fuel (RCF), and synthetic low-carbon fuels
- Different implementation dates: January 1, 2024 for sustainable fuels provisions and January 1, 2025 for offshore ships monitoring
- Application to offshore ships of 5,000 gross tonnage and above from 2027 under the EU ETS, with potential future extension to smaller vessels
