Transcript SAFE Trade and AEO in the EU

SAFE Trade and AEO in the EU
The 1st National Conference on SAFE
Trade and AEO
Manila 13-14 May 2008
The actual challenges
• Ensuring our security in a context of
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globalisation of trade but also of crime,
Facing increasing threats of terrorism and violent
activities throughout the world,
Managing the increasing interdependency of
societies/countries (goes far beyond security),
Absolute need to avoid any disruption in the
international trade supply chain,
Need to continue improving trade facilitation.
In Customs terms, this means:
• Adjusting (and modernising) our customs systems and projects with
new parameters (data requirements, risk management, controls,
procedures, relations with economic operators),
• Seeking to set up worldwide security standards and requirements,
for:
- More efficient and targeted controls (on all sensitive issues),
- More efficient international customs cooperation,
- An acceptable administrative burden for the trade Community,
• Starting from a constraint (security requirements), trying to end-up
in benefits for legitimate trade and for the public sector.
The concept of security
• Identifying high risk consignments at the earliest possible
point in the supply chain, in time for timely controls (and
subsequent quicker release of other consignments)
• Involving the private sector and identifying traders that
offer a high degree of security guarantees in respect of their
role in the supply chain (AEO concept),
• Requiring increased security at the point of origin and as
the consignment moves throughout the supply chain,
• Developing international cooperation and modernising
customs systems and practices in order to make them more
efficient.
The control of the supply chain (1)
• A key element which covers a global process from
manufacturing goods destined for export until delivery to
the party to whom goods are destined,
• Covers operators representing various manufacturing,
trade, distribution and transport segments,
• A management tool for both public and private sectors.
Control of the supply chain (2)
- use for/by the private sector • A critical tool already used by managers in a number of
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industry, trade and transport sectors in order to :
better understand and manage the risks for their
business,
have a better visibility of what is happening on their
supply chain and for faster access to accurate data,
secure their supplies and trade flows (ensuring the right
stock reach the right place at the right time in the right
conditions),
But also…
Control of the supply chain (3)
- use for/by the private sector • Need to respond to Consumers who are
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increasingly demanding on the products they
buy: origins, ingredients or materials, how it has
been shipped, impact on the environment,
traceability,…
protection of firms’ brand images, quality and
safety of products, checking compliance with
laws, matching public opinion concerns (IPR,
forced labour,…).
Consulting the Business Community
- Key conclusions – (1)
- Everybody has an interest in balanced measures that
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would help avoiding disruption of trade and would allow
the fatest resumption of trade,
Nobody wants to get involved in possible problems
associated with terrorist activities and/or organised
crime,
Strong interest for the business community in dealing
with responsible and reliable partners and
administrations, this going beyond security issues,
Those who make efforts and cooperate must be
rewarded (cf. AEO).
Consulting the Business Community
- Key conclusions - (2)
- The private sector has information and a knowledge of
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key aspects of the supply chain that the public sector
has not,
Most of the relevant information are already available in
the records of different actors in the private sector,
Computerisation is essential to ease gathering and
collecting such information,
Reciprocity and Mutual recognition of AEOs and of
controls with reliable and willing partners are definitely
an objective (the best workable solution).
The new EU legislation
- issues addressed • Setting up the list of information required to identify
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high risk shipments,
Development of common standards for risk
management,
Development of appropriate partnerships with the
Business Community, taking into account existing best
practices
Speeding up some aspects of the EU reform on eCustoms,
Considering our objectives vis-à-vis our partner countries
(reinforced cooperation, mutual recognition )
The new EC security legislation
A package to increase security and facilitate legitimate trade.
3 main elements :
– setting up uniform Community risk-selection criteria for controls,
supported by computerised systems (implementation started, full
computerisation by 2009),
– Improving security and providing reliable traders with trade
facilitation measures (AEO-concept) (implemented 1 January 2008),
– requiring trade to provide customs authorities with information on
goods prior to import to AND to export from the European Union
(applicable 1 July 2009).
AEO
AEO is a status granted to reliable economic operators,
established in the EU, who are involved in activities covered
by customs legislation and complies with objective criteria.
Concept open to importers, exporters, brokers, forwarders,
carriers and other service providers that are established in
the EC (* except 2 cases, including agreements on mutual
recognition of AEO and of controls) and that qualify.
This status is granted to the holder of the relevant AEO
certificate, but not to his clients.
The status gives access to:
• Simplifications provided for under the customs rules
• Facilitation with regard to customs controls relating to
security and safety
Types of AEO in the EU (1)
Three Types of AEO Certificates:
a) Customs simplifications,
b) Security and safety (facilitation of the related
customs controls),
c) combination of a) and b) – recommended for
companies regularly using customs
simplifications and wanting to benefit from
facilitations
Types of AEO in the EU (2)
EU combines new security compliance with traditional
simplifications for reliable traders (e.g. deferred payment,
guarantee waiver)
AEO can choose whether or not they want to benefit from
lower risk score and/or from simplifications like guarantee
waiver - depending on their choice, they have to comply
with appropriate criteria EU didn’t want to take away simplifications from normal
traders but aims at additional benefits for secure AEOs.
Authorised Economic Operator
Legislation focuses on 3 majors areas:
• Criteria to be complied with
• Authorisation procedure
• Benefits in the area of facilitation
and simplifications for customs
procedures
Criteria (1)
(like WCO AEO):
• appropriate record of compliance=no customs
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offence in past 3 years
satisfactory system of managing commercial and
where appropriate, transport records, which
allow appropriate Customs controls
proven financial solvency=ability to pay customs
debt
NEW: for the secure AEO, additional appropriate
security standards
Criteria (2)
Security criteria :
• threat assessment
• security plan
• procedural measures to prevent irregular goods entering
the supply chain
• procedural measures for handling/storage of goods
• employee screening and awareness raising
• physical security of buildings/access control
....as laid down in legislation that is interpreted in uniform
manner in all 27 Member States, and as further explained in
AEO guidelines
Criteria (3)
• Criteria are the same for all economic operators
• Implementation measures will however differ
depending on the sector and the size of the AEO:
* A small company implements same measures
but in a different way than a big company (f.ex.
possibly no need for surveillance camera if staff
can see what happens and who enters and leaves
the building); Rail different from Air or Maritime –
specificities are taken into account. SIZE IS NOT
A DECISIVE FACTOR!
Criteria (4)
Criteria
• If the applicant is the holder of an internationally
recognised security certificate issued on the basis
of international conventions or of an
International or European organisation for
standardisation, the certificate is taken into
account to the extent that the criteria are
comparable (e.g. ISPS, ISO)
• The authority that decides is always customs !
Authorisation process (1)
Status is attributed according to uniform criteria in all
Member States and thus recognised in all MS :
- All applicants use the same form in the EU to apply/fill in
a questionnaire as to whether or not criteria are fulfilled:
importance of self-assessment!
- request to be presented in the Member State where the
applicant's main accounts related to the customs
arrangements are held, and where at least part of the
operations to be covered by the certificate are conducted
- legal entity has to apply
- mother company cannot apply on behalf of all daughter
companies, individual applications needed
Authorisation process (2)
• Close consultation C2C and also C2B - Partnership
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approach
Increased self-policing and self-assessment and
less direct customs involvement
Customs has to evaluate application form and has
to audit (including visits to company) before
attributing AEO status
Customs in Member States exchange
information/consult where necessary
compulsory consultation on criteria that cannot
be assessed by one Member State alone (for
example warehouses in other MS).
Customs has to take a decision within 90/120
days
Authorisation process (3)
• request available to all Member States through a
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data base and open for comments
Appeal and hearing in case of negative decision
Regular monitoring by customs authorities
Re-assessment if doubts on continued compliance
Suspension and revocation in case of noncompliance.
Management of the system
SUSPENSION OF CERTIFICATE
• If conditions are not any longer fully respected
• 30 days to redress situation
WITHDRAWAL OF CERTIFICATE
• If continued non-respect of conditions or AEO
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fails to redress situation
AEO HAS THE RIGHT TO BE HEARD BEFORE
CUSTOMS TAKES THE DECISION TO
SUSPEND/WITHDRAW!
In cases of revocation, no new application
allowed within the next three years !
Benefits for AEO (1)
• Recognition as safe and secure partner in
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international trade – status as quality
criterion + better market position,
Lower risk score for risk analysis for safety
and security purposes, i.e fewer controls,
Less data to be provided for prearrival/pre-departure declarations,
Advanced notice that selected for
inspection,
Priority treatment for controls,
Benefits for AEO (2)
• Less direct customs interventions in the
shipment process + more predictability,
• Increased self-policing with enhanced overall
security of goods, with less theft and
accordingly lower insurance premiums, safer
work and trade, environment, and better use
of resources
• More streamlined internal processes and
better relations C2B,
• Possible mutual recognition with third countries
leading to reciprocal benefits.
Advantages for Customs
• Allow Customs to focus on suspicious or risky (i.e.
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outside the secure chain) shipments and on
unreliable or unknown operators, hence better
revenue collection and better fight against frauds,
Better use of resources, more streamlined and
also modernised internal processes, more
accurate and timely information,
Improved Customs capacities to address new
challenges and to create favourable conditions for
their country’s external trade (reliable partner),
Less congestion of traffic at points of entry,
Improved relationship between business and
customs.
Global impact on trade
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Some constraints, but also obvious benefits:
An incentive for Customs administrations to
modernize their systems and practices (Revised
Kyoto Convention) and use computerised risk
analysis targetting only suspicious operators,
Mechanisms also applicable for addressing other
major challenges (IPR, fair trade,product
safety…),
Legitimate business recognised as a partner ,
Will favour (reorientate ?) trade between
responsible and reliable partners in both private
and public sectors.
Preparation of implementation of
AEO in the EU
– AEO pilot projects in MS in 2006
– Close cooperation with trade as from beginning
– Training of customs officials and economic
operators in MS
– Self assessment tool on TAXUD Homepage +
AEO guidelines
– Exchange of information/best practice
– e-learning tool available on TAXUD Homepage
– Helpdesk in TAXUD for customs
Findings of 2006 AEO Pilot Action
• Importance of partnership approach
• Customs to have client co-ordinator or service
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centre and company to have contact point for
customs
Company to prepare and carry out selfassessment to facilitate and fasten
authorisation/audit by customs
The better a company is prepared, the quicker the
authorisation process can be finalised/status
obtained
Importance of risk management on AEOs
Take into account existing authorisations
Trade to use security declarations or contractual
agreements vis-à-vis non-AEO business partners
Importance of mutual recognition and reciprocity
Implementation; state of play
– Mid April 1.400 applications in all MS
– 6.000 to 20.000 applications expected for 2008
– mutual recognition and trend to AEO status
(security of business partner) could multiply,
– 80% seek combination security-simplifications
– 70% of applications from SMEs,
– Customs needs on average 100 days,
– Monitoring through TAXUD/MS as of May 2008
in all MS to ensure uniform implementation
and have a first assessment of the reform.
International end to end supply chain
Overall objective is international end-to-end supply chain security
through mutual
recognition. This means:
• equivalent security measures that lead to equivalent levels of control and
security,
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agreement on minimum control standards, joint risk rules and exchange of
risk related information and control results,
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trust and close cooperation
matters, and
among customs authorities, including on AEO
• equivalent AEO concepts.
The EU Approach On Security
- international impact -
CONTROL STANDARDS
TRADE FACILITATION
Commonly agreed control
standards and risk indicators
Authorised Economic Operator
(AEO) Programme
Close cooperation with other
services and customs
administrations of third
countries
Simplified customs procedures
Objective:
Objective:
Mutual recognition of security
standards and control results
Mutual recognition of AEO status
(benefits in the global supply chain)
Facilitation on security requirements
Legislation and documentation
• Reg. 648/2005 – Amendment to Customs Code (EUOJ L.117
of 4.5.2005, p.13 to 19)
• Detailed Implementing Provisions to CC - Reg 1875/2006
(EUOJ L.360 of 19.12.2006, p.64 to 125)
• Guidelines for AEO (Part I: Explanations + examples; Part
II: questionnaire for assessment by customs and for selfassessment by trade) jointly worked out by Customs and
business.
• AEO-Database to allow for consultation among Member
States customs authorities
Thank you for your attention
For further information
visit the following website:
http://ec.europa.eu/taxation_customs
/customs/index_en.htm
[email protected]