1. China-EU Smart and Secure Trade Lanes Smart and Secure Trade Lanes An update on the China-EU project

2. China-EU Smart and Secure Trade Lanes Topics 1. Aim and Scope 2. Main SSTL Processes 3. Facts and Figures 4. SSTL phases so far 5. Risk Management 6. Elements of SAFE FoS tested 7. Voices from Traders and Customs 8. Challenges and Next Steps

3. China-EU Smart and Secure Trade Lanes Aim and Scope 1. Aim o Smart: optimize trade facilitation by use of modern technologies (IT, CSD’s) o Secure: cater for safety and security concerns o Trade facilitation as well as safety and security

4. China-EU Smart and Secure Trade Lanes  Pillars - Customs to Customs e.g. mutual recognition of Customs control - Customs to Business e.g. AEO - Customs to Other Government Agencies (future 3 rd pillar)  Four core elements of SAFE - advance electronic data transmission - risk management approach - non-intrusive detection equipment - benefits fro trusted traders e.g. AEO Aim and Scope 2. Scope- To test WCO SAFE FoS in practice

5. China-EU Smart and Secure Trade Lanes Aim and Scope 2. Scope- To test WCO SAFE FoS in practice  C2C advance exchange of quality data  Minimum joint risk rules  Mutual recognition of customs controls  Robust IT tools for exchane data  Promoting and testing the use of CSDs  Further identifiying promoting the facilitation benefits for traders and Customs

6. EU-China Smart and Secure Trade Lanes Main SSTL Processes ( Ⅰ )

7. EU-China Smart and Secure Trade Lanes Main SSTL Processes( Ⅱ )

8. EU-China Smart and Secure Trade Lanes Facts and Figures Present participating ports China: Chongqing, Dalian, Shanghai, Shenzhen, Tianjin HK China:Hong Kong port France: Le Havre Germany: Hamburg Belgium: Antwerpen, Zeebrugge Italy: Genoa the NL: Rotterdam Poland: Gdansk Spain: Barcelona, Valencia UK: Felixstowe

9. EU-China Smart and Secure Trade Lanes Facts and Figures  Partcipating traders: 75  Trade Lanes: 50  Number of containers: 10,845  Messages exchanged: 17,200

10. EU-China Smart and Secure Trade Lanes Phase 1 Launched in 2006 – NL, UK, CN Restricted to maritime containers Phase 2 Started in 2010 – increased participants (DE, BE, FR, IT and PL) – joint risk rules tests 2013 Evaluation of Phase 2 WCO Council offers to share SSTL experiences to enhance SAFE FoS– formal extension of project to HK/ES and possible extension to rail mode Phase 3 Further expansion of SSTL (GNC, data exchange, other transport mode e.g. air) SSTL Phases so far

11. EU-China Smart and Secure Trade Lanes  Critical element in SSTL  Quality data from the source  Risk based controls -2 joint risk rules exercises  Joint risk rules supplemented by risk assessment in country of destination Risk Management

12. EU-China Smart and Secure Trade Lanes Elements of SAFE FoS tested-basis Close cooperation with trade Reliable traders (AEO and AA; mutual recognition, credibility checks) Exchange of data and use of IT platform respecting timing requirements Risk management and controls as early as possible in logistical process Use of CSD’s to ensure integrity of consignments End to end grip on consignments

13. EU-China Smart and Secure Trade Lanes Mutual recognition and definition of types of control Port to port challenges (including consolidations) Platform used and experiences Experience with CSD’s limited so far Solution for Temporary Admission problems for CSDs based on WCO Recommendation Elements of SAFE FoS tested-outcomes

14. EU-China Smart and Secure Trade Lanes Voices from Traders and Customs For Traders: One time submission of data and Customs controls at point of stuffing containers Certainty and predictability at importation Reduced lead time Contribution to certification as AA/AEO Enhanced Customs/trade cooperation (trust) For Customs: Additional layer of risk information Managing risk more effectively Save human resource to focus on high risk shipments

15. EU-China Smart and Secure Trade Lanes Challenges and Next Steps  Challenges Current data exchange Volumes of trade lanes and traders  Next Steps To promote the use of UCR or other appropriate reference number To further promote the use of CSD To include/test more complex trade lanes consolidations/transhipments To extend to rail, road and air modes of transport Should we develop SSTL into a standarized process to implement SAFE FoS?

16. EU-China Smart and Secure Trade Lanes Thank You!