Transcript The Customs union

European Commission /
Taxation and Customs Union
EU Customs Policy Developments
Supply chain security a case study
Manuela Cabral
European Commission
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European Commission /
Taxation and Customs Union
EC APPROACH ON CUSTOMS POLICY
• WHY Community approach?
– The Customs union (1968)
– The Single Market (1993)
– Free circulation of goods, persons, services and
capital
– One external frontier supervised by 27 customs
administrations
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European Commission /
Taxation and Customs Union
Aim of EU customs policy
THE CUSTOMS UNION is a foundation of the EU
o Nearly 40 years
o Single Market
o €uro
TWIN AIMS OF CUSTOMS POLICY:
o To protect the EU and citizens
o To facilitate legitimate trade
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European Commission /
Taxation and Customs Union
Changing environment &
New challenges for customs in general
• Increasing volumes of traffic
• Increasing globalisation of trade and crime
• Increasing threat of terrorist acts
• Increasing interconnectivity and
interdependency of societies/countries
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European Commission /
Taxation and Customs Union
Changing environment &
New challenges for customs in Europe
• Total length of external land frontier: 12.440 km
• Enlargement of the European Union in 2004 and 2007
(e.g. length of the EU Eastern Land Frontier increased nearly
80%)
• About 1.600 million tonnes of seaborne cargo (annually)
• About 8 million tonnes of airborne cargo
(annually)
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European Commission /
Taxation and Customs Union
Changing environment &
New challenges for customs in Europe
• 161.000.000
custom declarations per year
• 441.000
custom declarations per day
• 306
custom declarations per minute
• 5
custom declarations per second
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European Commission /
Taxation and Customs Union
CHANGING ROLE FOR CUSTOMS
• Traditional approach: primary concern of customs
are fiscal matters and revenue collection
• New tasks and new challenges
– due to increasing concerns for safety and security
– demands of globalisation
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European Commission /
Taxation and Customs Union
CHALLENGE FOR CUSTOMS
In the light of the new tasks, customs
have to ensure, among other:
• Protection of citizens and their interests while
facilitating legitimate trade
• Interoperable IT systems as a means to fight
fraud and increase security while not hindering
trade
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European Commission /
Taxation and Customs Union
EU CUSTOMS POLICY DEVELOPMENTS
• Electronic customs
• Modernized customs code
• Security amendments to the customs code
(case study)
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European Commission /
Taxation and Customs Union
EU CUSTOMS POLICY DEVELOPMENTS
DIFFERENT TIMEPATHS
• E-CUSTOMS
 Communication COM(2005)609
– Decision in European Parliament and
Council
• process is started
• Council decision is expected shortly
– Phase implementation: 2006 - 2013
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European Commission /
Taxation and Customs Union
E-Customs
Developing secure and interoperable electronic
customs systems for exchange of data
–
–
–
–
Facilitation of import and export procedures
Reduction of administrative costs
Reduction of clearing times
Improved conjunction between implementation of
legislation and the customs practice
– Ensure the right levying of duties and taxes
– Enable a smooth flow of information between the
relevant parties and re-use of data
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European Commission /
Taxation and Customs Union
EU CUSTOMS POLICY DEVELOPMENTS
DIFFERENT TIMEPATHS
• Modernized Customs Code
 Communication COM(2005)609
–
Decision in European Parliament and
Council
•process is started
–
Implementation:
?
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European Commission /
Taxation and Customs Union
MODERNIZED CUSTOMS CODE
• Simplification of the structure – reduction
of articles
• Revision of the customs procedures –
centralised clearance
• Improving the system for customs
guarantees
• Expansion of the use of authorizations for
the whole EU
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European Commission /
Taxation and Customs Union
EU CUSTOMS POLICY DEVELOPMENTS
DIFFERENT TIMEPATHS
• SECURITY AMENDMENTS TO THE CUSTOMS CODE
Regulation (EC) No. 648/2005
Implementing reg. (EC) No. 1875/2006
Implementation:
AEO
Pre-arrival /Pre-departure
1/1/2008
1/7/2009
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European Commission /
Taxation and Customs Union
EU CUSTOMS APPROACH ON SECURITY
Integration of security aspects in customs
controls and authorisations for traders
• ensure that responsibilities are specified
integration of security aspects in import and
export controls
• increased emphasis on export controls
• ensure that data can be electronically exchanged
• integration of security aspects in authorisations
for operators
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European Commission /
Taxation and Customs Union
EU Customs Security Initiatives
Security amendments to the Community
Customs Code
1) require traders to provide customs authorities with
information on goods prior to import to or export from the
European Union
2) provide reliable traders with trade facilitation measures
(AEO-concept)
3) introduce a mechanism for setting uniform Community
risk-selection criteria for controls, supported by
computerised systems
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European Commission /
Taxation and Customs Union
Import Control System – When is it necessary?
• First port of entry - Entry Summary Declarations
(ESD) for all goods on board (24h (b/loading)-4h-2h)
– If vessels sharing arrangements Pre-Arrival Notification
(PAN) necessary (24h(b/arrival)-4h-2h)
– Manifest for goods to be unloaded
• Subsequent ports:
– ESD for goods to be unloaded – no time limit + manifest
for movement between Community points
• Between Community ports:
– Regular shipping line: no ESD only manifest
– Non regular shipping line: ESD for goods to be unloaded +
manifest for movement between Community ports
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European Commission /
Taxation and Customs Union
Import Control System (Draft FSS)
Person lodging
the Entry summary
declaration
E_Person lodging the Entry
summary declaration
R_MRN communicated to
Person lodging the Entry
summary declaration
Office of first Entry
Office of
Lodgement
Register declaration
+ perform risk
analysis
Entire Entry summary declaration
+ Risk analysis results
Process received
declaration + full risk
analysis for safety
and security
Representative /
Trader at Entry (Carrier)
R_Preventive/prohibitive
measures/controls notified to
Representative /Trader at Entry
Trader
Pre-Arrival
E_Trader Pre-Arrival presenting
Pre-Arrival notification
Trader at Entry
(Carrier)
If risk is identified:
Send Entry summary declaration
+ Risk analysis results
to all subsequent Offices involved
Office(s)
of subsequent Entry
Register risk
analysis results
Request/provide
Entry summary declaration
Request/provide
Entry summary
declaration
Request/provide
Entry summary
declaration
Process Pre-Arrival
notification
R_Pre-Arrival notification
registered at Office of first
Entry
Trader at Entry
(Carrier)
E_Trader at Entry presenting
goods at Actual Office of first
Entry
Process manifest at
Actual Office of first
Entry
E_Trader at Entry presenting
goods at Actual Office of
subsequent Entry
R_Presentation registered at
Actual Office of subsequent
Entry
R_Presentation registered at
Actual Office of first Entry
Decide to control
R_Trader at Entry notified of a
control
R_Goods allowed for Entry
Process manifest at
Actual Office of
subsequent Entry
Decide to control
R_Trader at Entry notified of
a control
R_“Summary declaration“
available for subsequent
customs procedure
R_Goods allowed for Entry
R_“Summary declaration“
available for subsequent
customs procedure
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European Commission /
Taxation and Customs Union
Export Control System - When is it necessary?
For all goods leaving the Community
• Normal situation: export, re-export or transit
declaration (24h (b/loading)-4h-2h)
• Freight remaining on board or transhipped at the place
of unload – no declaration (ESD fills the role)
• Others: exit summary declaration
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European Commission /
Taxation and Customs Union
Export Control System (Draft FSS)
Premises of the Trader
at the point of Export
Office of Export
Office of Exit
E_Exporter/Declarant
initiate export operation
Prepare
consignment &
declaration
Process export
Present goods at
office of exit
Process exit of
goods
R_EAD Accompanying
Document printed
Export operation
finalized
Finalise Export
operation
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European Commission /
Taxation and Customs Union
EC Security Initiatives
Result :
A secure end-to-end supply chain
with secure trading partners and
without weak links !
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European Commission /
Taxation and Customs Union
THANK YOU
FOR YOUR ATTENTION
For up-to-date information about the
Customs Developments
visit our website:
http://europa.eu.int/comm/taxation_customs/index_en.htm
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