Why the term "Economic Impact" in Customs Id with economic impact and etc...

[former_member201804]

Hi Gurus,

Just curious to understand why do we use the term "Economic Impact" as suffix in Customs Id with economic impact, Customs procedure with economic impact?

I know it is quite silly to ask, rather than google, but could not satisfy my question with those searches.

Thanks,

Alex.

[former_member215181]

Hi Alex,

Yes, quite a strange phrase, isn't it?

It applies to Customs procedures like Inward Processing, Outward Processing, End-Use, etc., and as I understand it, describes what would happen if those reliefs were not available. For example, if goods for the repair & maintenance of ships were not duty-free, that industry might simply move out to another country where the tariffs were more favourable. That would have an "economic impact" on the industry and the country.

Does that make sense?

Regards,
Dave