- Court Decision Overview: On December 10, 2024, the EU Court of Justice ruled against Harley-Davidson Europe Ltd, affirming the European Commission’s decision to revoke the binding origin information for Thai-manufactured motorcycles, citing non-economically justified processing operations.
- Anti-Abuse Provision Interpretation: The Court clarified that processing operations aimed primarily at avoiding additional EU import duties do not qualify as economically justified, placing the burden of proof on economic operators to demonstrate valid reasons for such relocations.
- Implications for Businesses: Companies must ensure that any relocation of production activities is backed by legitimate economic reasons beyond duty savings to avoid being penalized for elusive practices under EU customs regulations.
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