Manuela Cabral European Commission

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EU Customs Policy DevelopmentsSupply chain
security a case study

• Manuela CabralEuropean Commission

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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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Aim of EU customs policy

• THE CUSTOMS UNION is a foundation of the EU
• Nearly 40 years
• Single Market
• uro
• TWIN AIMS OF CUSTOMS POLICY
• To protect the EU and citizens
• To facilitate legitimate trade

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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 andinterdependency
  of societies/countries

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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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Changing environment New challenges for customs
in Europe

• 161.000.000custom declarations per year
• 441.000custom declarations per day
• 306 custom declarations per minute
• 5 custom declarations per second

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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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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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EU CUSTOMS POLICY DEVELOPMENTS

• Electronic customs
• Modernized customs code
• Security amendments to the customs code(case
  study)

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EU CUSTOMS POLICY DEVELOPMENTSDIFFERENT 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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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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EU CUSTOMS POLICY DEVELOPMENTSDIFFERENT TIMEPATHS

• Modernized Customs Code
• ? Communication COM(2005)609
• Decision in European Parliament and Council
• process is started
• Implementation ?

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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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EU CUSTOMS POLICY DEVELOPMENTSDIFFERENT TIMEPATHS

• SECURITY AMENDMENTS TO THE CUSTOMS CODE
• ? Regulation (EC) No. 648/2005
• ? Implementing reg. (EC) No. 1875/2006
• Implementation
• AEO 1/1/2008
• Pre-arrival /Pre-departure 1/7/2009

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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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EU Customs Security Initiatives

• Security amendments to the Community Customs
  Code
• require traders to provide customs authorities
  with information on goods prior to import to or
  export from the European Union
• provide reliable traders with trade facilitation
  measures (AEO-concept)
• introduce a mechanism for setting uniform
  Community risk-selection criteria for controls,
  supported by computerised systems

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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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Import Control System (Draft FSS)
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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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Export Control System (Draft FSS)
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EC Security Initiatives

• Result
• A secure end-to-end supply chain with secure
  trading partners and without weak links !

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THANK YOUFOR YOUR ATTENTION

• For up-to-date information about the
• Customs Developments
• visit our website
• http//europa.eu.int/comm/taxation_customs/index_e
  n.htm