European Commission Taxation and Customs Union June 2009Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi Data harmonisation in the Single Administrative Document (SAD) The EU E-customs project Prospects for South Caucasus countries Jean-Luc Delcourt TAXUD-C-1

European Commission / Taxation and Customs Union 2 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 Presentation structure Single Administrative Document origin, context, harmonization dimension, SAD reform... International standards Prospects for South Caucasus

European Commission / Taxation and Customs Union 3 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Origin The 1980s: Multiplicity of documents (then more than 200) to cover Different Customs procedures In different countries For different modes of transport  Need for simplification and rationalization of Customs declarations processes.

European Commission / Taxation and Customs Union 4 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 The SAD Rationalizes and reduces administrative documentation Ensures openness in national administrative requirements Reduces amount of data Standardizes and harmonizes data SAD Context and objectives

European Commission / Taxation and Customs Union 5 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Standardizes and harmonizes data (1)  Use of common codes for as many data elements as possible Trader identification numbers (boxes 2, 8...) Delivery terms (box 20) Nature of transaction (box 24) Preference codes (box 36) Procedure codes (box 37 – partially) Valuation method code (box 43) Special mentions (box 44 – partially coded) Tax types (box 47) Mode of payment (box 47) Warehouse identification (box 49) Guarantee (box 53)

European Commission / Taxation and Customs Union 6 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Standardizes and harmonizes data (2)  As far as possible international standards Country codes (iso alpha 2 codes – ISO 3166-derived) (Boxes 15, 17, 21, 34...) Currency codes (box 22 – ISO 4217)) Modes of transport (boxes 25 and 26 – UN-ECE rec. 28) Customs offices (box 29, 51 – UN LOCODE - partially) Package codes (box 31 UN-ECE rec. 21) Commodity code (box 33 – HS code) Documents identification (boxes 1, 40, 44, partially 1001 Edifact codes)...

European Commission / Taxation and Customs Union 7 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Geographical scope Legal instruments Used in the EU and EFTA since Community level: Customs Code and its Implementing Provisions (Reg. 2913/92, Reg. 2454/93) International level: Conventions on Simplification of Formalities and on Transit

European Commission / Taxation and Customs Union 8 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Evolution so far  Designed originally as a first step towards abolition of formalities in the EU, it has now virtually disappeared for intra EU trade since the 1993 internal market  30 countries use it within a common legal framework (18 in 1988)  Many countries use forms copied or inspired by the SAD (i.e. through ASYCUDA)

European Commission / Taxation and Customs Union 9 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Brief summary  The SAD replaced about 200 different forms in the 18 original user countries  Through data reduction and standardisation, the SAD reduces traders and Customs workload  The SAD as a form is more and more often replaced by EDI systems  The harmonisation effort achieved to set up the SAD facilitated the introduction of the current EDI systems

European Commission / Taxation and Customs Union 10 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Developments after 1988 G7 >> WCO data model Widespread computerisation of customs declarations systems Development of EU Electronic Customs Project  Need to harmonize further data and codes in the perspective of more computerisation and more integration of Customs declaration systems  SAD Reform

European Commission / Taxation and Customs Union 11 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Reform Implementation on (Some Member States applied it earlier) Reduction of data requirements by 26 % Reduction of optional requirements by 43 % Non-coded data at Community level greatly reduced

European Commission / Taxation and Customs Union 12 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Reform ( ) DATA CODING – Average ALL PROCEDURES 70% reduction of non-coded data

European Commission / Taxation and Customs Union 13 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Reform DATA SET (AVERAGE ALL PROCEDURES) Overall reduction of data requirements by 26% Overall reduction of Optional elements by 43% > Publication of national data and coding where no harmonisation possible.

European Commission / Taxation and Customs Union 14 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 SAD Reform Implementation  IMPLEMENTATION – TEXTS Publication of reg. 2286/03 on 31 December 2003 Implementation date on Some Member States applied it earlier

European Commission / Taxation and Customs Union 15 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 International standards  Wherever possible, all these developments are conducted in coherence with international instruments such as: WCO framework of standards – WCO data model UN-ECE standards and recommendations  Where this is not possible, the EU links with the relevant organisations to maintain those instruments.

European Commission / Taxation and Customs Union 16 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 Data harmonization from the perspective of the SAD and its use in South Caucasus countries By nature, the SAD encourages and presupposes Data requirements as harmonized as possible in their definitions and representations The use of international standards for data and codes  This enables traders to provide export and import data to customs at a lower cost: Data can be « recycled »: from export to import formalities / declarations, from commercial to Customs documentation.  This ensures better quality of data for Customs administrations. The connection and integration of national procedures in a coherent, global standards-compliant, modernized framework is paramount for the development of the economy and the modernization of public systems.

European Commission / Taxation and Customs Union 17 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi23-24 June 2009 THANK YOU VERY MUCH FOR YOUR ATTENTION ANY QUESTIONS ? Jean-Luc DELCOURT  European Commission - TAXUD C/1  Telephone:  Fax:  Web: SAD page of TAXUD websiteSAD page of TAXUD website