European Commission / Taxation and Customs Union ECASBA 2009 European Seminar CUSTOMS POLICY 6 May 2009, Brussels

European Commission / Taxation and Customs Union Customs Policy Short term: « safety and security amendment » Medium term: Modernised Customs Code Long term: Policy Vision

European Commission / Taxation and Customs Union Short term: 'Safety and Security Amendment‘ enter into force: 1 st of July It covers three major changes to the Customs Code: Requiring traders to provide customs authorities with information on goods prior to import to or export from the European Union; Providing reliable traders with trade facilitation measures - Authorised Economic Operator (AEO);Authorised Economic Operator Introducing uniform Community risk-selection criteria for controls, supported by computerised systems for goods brought into, or out of, the EU customs territory;

European Commission / Taxation and Customs Union Transitional period concerning the safety and security amendment. The principle rule: From 1 July 2009 onwards the safety and security data has to be provided before the goods enter or leave the Community customs territory. The security data has to be sent electronically by economic operators. The transitional period: From 1 July 2009 to 31 December 2010, this pre-arrival and pre-departure information will be an option for traders and not an obligation. It means that during that transitional period goods not declared in advance will be submitted to risk analysis after arrival or before the exit is allowed. Short term: 'Safety and Security Amendment‘

European Commission / Taxation and Customs Union Legislation: Regulation (EEC) No 2913/92 establishing the Community Customs Code as amended by Regulation (EC) No 648/2005 and Regulation (EEC) No 2454/93 providing provisions for the implementation of Regulation (EEC) No 2913/92 establishing the Community Customs Code as amended mainly by: –Regulation (EC) No 1875/2006, –Regulation (EC) No 312/2009, and –a third regulation already adopted by the Commission but which the publication is pending (foreseen for 9 May) Short term: 'Safety and Security Amendment‘

European Commission / Taxation and Customs Union Commission Regulation (EC) No 273/2009 of 2 April 2009 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code, derogating from certain provisions of Commission Regulation 2454/93 (transitional period). Short term: 'Safety and Security Amendment‘ Legislation (cont.):

European Commission / Taxation and Customs Union Communication initiatives: The leaflet with the information address mainly to the economic operators dealing with the road transport – to be distributed by the end of June 2009; The “mini Website” to be provided under Commission responsibility enabling to accede all information concerning the implementation of the security amendment by June The building up of the mock-up for European Customs Information Portal (mECIP) – pilot phase of ECIP project, based on the security information. To be provided by the end of Short term: 'Safety and Security Amendment‘

European Commission / Taxation and Customs Union Modernisation: WHAT? (1) Rights and obligations of persons No national restrictions on customs representation but possible conditions and common criteria to be fulfilled by those persons who want to act as representatives in other Member States; Common rules for all types of decisions by customs authorities – including right to be heard before a negative decision is taken and more protective appeal procedures; Prohibition of customs fees, charges and costs not corresponding to a service actually rendered; Possible extension of binding information (advance rulings) to other areas than tariff classification and origin – e.g. valuation; Common principles for customs penalties. Medium term: Modernised Customs Code enter into force: 2013

European Commission / Taxation and Customs Union Modernisation: WHAT? (2) Customs debt and guarantees Common rules on guarantee for a potential or existing customs debt, covering all procedures; Streamlined rules and procedures allowing debtors to benefit from non-recovery or repayment/remission of duties in specific situations; Streamlined rules on limitation in time (3 years or 10 years) of the possibility for customs to recover duties. Medium term: Modernised Customs Code enter into force: 2013

European Commission / Taxation and Customs Union Modernisation: WHAT? (3) Customs procedures All customs formalities and exchanges of data, documents, decisions and notifications between operators and customs made using electronic data processing techniques, as a rule; Unification of the simplified procedures for customs declaration (1 instead of 3 procedures); Community-wide management of customs procedures:‘single authorisations’ and ‘centralised clearance’; Additional simplifications of formalities and controls and self- assessment Medium term: Modernised Customs Code enter into force: 2013

European Commission / Taxation and Customs Union Centralised Clearance (Art. 106 MCC) Centralised Clearance offers the possibility for an economic operator to lodge its electronic customs declarations at the customs office of the place where he is established and hold his records, irrespective of the place where the goods enter, leave or are presented in the customs territory The place of declaration is dissociated from the place where the goods are physically presented and responsibilities are divided between the different customs offices involved: - the ‘border’ office of entry/exit is responsible for security and safety control and other possible controls of the goods declared on request by the office of import/export before releasing them on the Community market - the ‘inland’ office of import/export is responsible for the other formalities and controls related to the tariff, Medium term: Modernised Customs Code enter into force: 2013

European Commission / Taxation and Customs Union Create a coordination (governance mechanism) Develop an action plan Ensure also external consultation Medium term: Modernised Customs Code enter into force: 2013 Modernisation: How?

European Commission / Taxation and Customs Union External Governance Commission TAXUD Internal Governance Action Plan Draft MCCIP Explanatory Notes & Guidelines Business Process Modelling IT systems Customs 2013 Working Groups MCCIP Project Groups - PG (sub-groups A, B, C) - PG AEO - PG Customs Value Other groups… MCC National Coordinators Customs Code Committee Specialised Sections General Customs Legislation Section Electronic Customs Group assistance Member States Monitoring National Coordinators Trade Trade Contact Group European Parliament & Council right of scrutiny Third Countries Candidate countries EFTA/EEA countries Customs Unions Neighbouring Countries Other countries International Organisations WCO WTO UN-ECE Institutions Customs Policy Group Open consultation

European Commission / Taxation and Customs Union Action Plan A single tool to identify and follow in a coherent way developments in the three main initial components of the MCC Implementation: Legal provisions  Business Process Modelling  IT systems A presentation of legal provisions, documents, IT systems, process/system owners, corresponding to the customs processes resulting from MCC/MCCIP, to be implemented, with various degrees of priority and dependencies A common instrument for COM and MS to ensure both the internal and external governance of the implementation

European Commission / Taxation and Customs Union Long term: Policy Vision What is the objective? 1- Mainly to integrate all current initiatives into a complete and coherent picture 2- To introduce modern management techniques (such as Business Process Modelling) and clear governance of the process 3- To exploit the possibilities of new areas (example System Based Approach)

European Commission / Taxation and Customs Union What next? Future of customs’ impact on activities Working methods Common audit approach Expertise on supply chain management Process mapping Harmonisation & standards in customs control Perf. Meas. Common training Customs leading in SW concept Contact groups Co-op. / Coord. Systems based Transaction based ICT Leg. Risk management strategy & framework Crisis management Equiv. results Management, profiles, sharing information Other MS experts Trade MS experts/COM

European Commission / Taxation and Customs Union Long term: Policy Vision How? 1- Coordination to be ensure by the governance mechanism 2 - Implementation Plan to be prepared by the end of the year (general Multi Annual Strategic Plan (GMASP) covering all aspects – and not only the IT developments)

European Commission / Taxation and Customs Union Thank you for your attention. EUROPEAN COMMISSION DG TAXUD Customs policy and Electronic customs Unit C1 tel.: