1. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 1 Import Control System (ICS) Presentation for representatives of air transportation 29 May 2008, Brussels

2. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 2 Structure of the presentation : Legal base Entry core processes  high level business scenarios in separate presentation Entry Summary Declaration (ENS) Diversion request Arrival notification Presentation of goods Specific topics ENS structure and standards EORI AEO reduced data set Consignee Goods descriptions Empty containers TAXUD website

3. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 3 Legal provisions : Regulation 648/05 (1) (Amendment to Customs Code) Authorised Economic Operators (AEO) Common risk management framework/Customs controls (common risk profiles, MS exchange risk information) Electronic pre-arrival declarations (Entry Summary Declarations, ENS) for goods entering the EU  ICS Electronic pre-departure declarations (Exit Summary Declarations, EXS) for goods leaving the EU  ECS Customs declarations including safety and security data  ECS (Export), NCTS (Transit), MS system (Import)

4. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 4 Legal provisions : Regulation 648/05 (2) Note: Art 36a and 182a talk about ‘summary declarations’ but Entry and Exit Summary Declarations are meant (not ‘summary declarations for temporary storage’)  Clarified in Regulation 1875/06

5. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 5 Legal provisions : Regulation 648/05 (3) Responsibility for providing the ENS/EXS: Reg. 648/05, Art. 36b 3 and 4 The person who brings the goods or who assumes responsibility for the carriage of the goods into the customs territory of the Community. Or ‘with his knowledge and consent’ (agreed interpretation): the person who acts in his name, or any person who is able to present the goods in question or to have them presented to the competent customs authority, or a representative

6. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 6 Legal provisions : Regulation 1875/06 (Amendment to the CC implementing provisions) Implementing provisions for Reg. 648/05 (e.g. time limits) Includes Annex 30A (data requirement for ENS and EXS); Relevant for air transportation: Explanatory notes Table 1 (default data set) Table 5 (AEO reduced dataset) New table 6 to be introduced for ‘diversion request’ Is about to be amended: Fine tuned to reflect the agreed specifications Target date for final text: mid 08

7. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 7 Core processes: Step 1Step 2 only if needed! Step 3Step 4 Entry summary declaration Diversion request Arrival notification Presentation of goods Covered by functional specs ICS phase 1 To be defined and implement by Member States Reg. 1875/06 Art 181b Reg. 1875/06 Art 183e (new process) Reg. 1875/06 Art 184g (new process) Reg. 1875/06 Art 186 (1) Short haul: take off Long haul: 4 hours prior to arrival When diversion is confirmed, prior to arrival Upon arrivalUnloading of goods For all the goods on board, including FROB for third countries (one or multiple ENS) For the aircraft (for parts of the cargo if MRN /MRN item number of the ENS is provided) For the aircraft (for parts of the cargo if MRN /MRN item number of the ENS is provided) For the goods to be unloaded (for parts of the cargo if MRN /MRN item number of the ENS is provided)

8. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 8 ICS phase 1 specifications for 01.07.2009 Scope of commonly agreed specifications for ICS phase 1 (01.07.2009) limited to: Handling of the ENS Exchange of s&s risk analysis results between MS Handling of international diversions Arrival, presentation of goods and handling of customs declarations with s&s data  MS’s matter Trader interface with the MS’s ICS  specifications provided by MS

9. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 9 Step 1 : Entry summary declaration (1) Send ENS to Customs Standardised electronic ICS message (same in all the MS) Sent to: Office of first Entry or Office of Lodgement in another MS (if accepted there) Prior to arrival (legal time limits!) Must contain Annex 30A data, including: Mode of transport at border Identity of means of transport: IATA or ICOA flight number Expected date and time of arrival Office of first Entry The carrier’s EORI number and its transport document number A Representative can be declared

10. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 10 Step 1 : Entry summary declaration (2) Customs register ENS Customs generate Movement Reference Number (MRN) upon registration of the ENS Registration communicated electronically by Customs to: Person lodging ENS and Carrier declared in ENS (if connected to ICS and if EORI number declared) Messages to carrier contain: Person lodging the ENS (e.g. forwarder) Carrier’s transport document MRN and other elements  Enable carrier to make sure that ENS have been lodged for the issued transport document

11. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 11 Step 1 : Entry summary declaration (3) Amendments Sent to Office of first Entry declared in the ENS By Person lodging the ENS or by Representative declared in the ENS Acceptance communicated to: Sender of the amendment request Carrier, if Connected to ICS EORI number declared He has applied for this functionality in the MS (under discussion)

12. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 12 Step 2 : Diversion request (1) Standardised electronic ICS message (same in all the MS) Sent by the operator of the active means of transport entering the EU or by his representative Data requirements about to be incorporated in Annex 30A (new Table 6) Prior to arrival Sent to the Office of first Entry declared in the ENS Required only if : Diversion at Office of first Entry and Diversion to a Member State not declared in the ENS (neither as first nor as subsequent Office of Entry) Not required in case of national diversions or in case of diversions at subsequent Offices of Entry

13. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 13 Step 2 : Diversion request (2) Must contain references enabling Customs to identify the related ENS Mode of transport at border Identity of means of transport: IATA or ICOA flight number Expected date of arrival Declared and Actual Office of first Entry MRN = optional alternative Declared Office of first Entry Notifies the sender of the registration of the diversion request Immediately informs the actual Office of first Entry using ICS (sending the risk analysis results)

14. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 14 Step 3 : Arrival notification Not harmonised (to be implemented by the Member States) Existing reporting systems may be used For the Customs to check ENS risk analysis results and to initiate appropriate controls upon arrival, also for FROB not being presented to Customs Sent by the operator of the active means of transport (aircraft) At the latest upon arrival at the Office of first Entry Not to be provided at Offices of subsequent Entry (at least not for s&s purposes) Must contain references to the ENS: Mode of transport at border Identity of means of transport: IATA or ICOA flight number Expected date of arrival Actual Office of first Entry MRN = optional alternative

15. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 15 Step 4: Presentation of goods Not harmonised (to be implemented by the Member States) Existing systems may be used Must cover goods to be unloaded only Must contain references to the ENS: Mode of transport at border Identity of means of transport: IATA or ICOA flight number Expected date of arrival Actual Office of first Entry MRN = optional alternative ICS functional specifications Process CO3 Exchange of common messages between customs offices (IE 302/IE 303) must be implemented Changes will be required since the legal provisions are about to be amended

16. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 16 Specific topic: ENS structure and standards Structure, content, codes and validation checks binding for the MS Technical format (XML, EDIFACT….) to be defined by MS COM has collected information from the MS Results of the survey available to the Trade Contact Group on CIRCA The data element ‘specific circumstance indicator’ triggers Annex 30A dataset One single message definition (IE315) covering Annex 30A, Table 1-5

17. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 17 Specific topic: EORI (Economic Operator Registration and Identification) Legal provisions adopted on 25 April 2008 Following actors shall be registered in EORI and their number (TIN) shall be declared in ICS: Person lodging ENS Representative For air transportation the Trader at Entry  Carrier All other actors may be registered in EORI List of authorities assigning EORI numbers will be published by the COM

18. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 18 Specific topic: AEO reduced data set Documented in Annex 30A, Table 5 (limited reduction of data) The ‘specific circumstance indicator’ ‘E’ shall be declared The Person lodging the ENS and all Consignees declared in the ENS must: be registered in EORI and declare the EORI TIN and have an AEO certificate for safety and security and/or for customs simplifications and safety and security

19. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 19 Specific topic: Consignee According to Annex 30A the Consignee is the ‘Party to whom goods are actually consigned’ The objective is to get the importer address, if possible Forwarder info acceptable if actual Consignee is not available to the Person lodging the ENS Not providing the actual Consignee may aim to a higher level of risk

20. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 20 Specific topic: Non acceptable goods descriptions Document TAXUD 1407/2007 published on TAXUD website (see last slide) Document provides for guidelines only TCG has been informed that non acceptable goods descriptions may trigger results in the risk analysis Merging goods of different commodities (e.g. shoes and engines) in one single goods item of an ENS should be avoided Further alignment with US list could be envisaged

21. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 21 Specific topic: Empty Containers Regulation 1875/06, Art. 181c (a) and 592a (a) proposed to be amended to say that only for ‘containers transported carried under a transport contract’ ENS/EXS are required

22. European Commission / Taxation and Customs Union 1968-2008 ICS presentation 29 May 2008 updated 22 TAXUD website - Customs and Security: http://ec.europa.eu/taxation_customs/customs/policy_issues/customs_security/index_en.htm Customs related security initiatives of the EU Legal basis AEO Goods descriptions Frequently asked questions Customs security programme Security cooperation with third countries Other topics