1. Graham Bartlett Policy Director SITPRO Ltd UK Experience of Implementing WCO SAFE Framework of Standards

2. SITPRO Simplifying International Trade SITPRO LTD The UK’s Trade Facilitation Agency The World’s Leading Trade Facilitation body Predominantly funded by UK Government Supported by business

3. SITPRO Simplifying International Trade What Do International Traders Want? Traders want to trade in overseas markets: Quickly - Safely - Easily - Securely follow commercial practice and meet official obligations without increasing costs or burdens MAKE A PROFIT

4. International Trade Is Complex Freight Forwarder Importer Importer Licensing Authorities Exporter InspectionAgencies Customs Consulate Advising Bank Advising Bank HealthAuthority Issuing Bank Carrier Frontier Post Agent Port Operator

5. SITPRO Simplifying International Trade SITPRO Ltd Cuts Red Tape in International Trade

6. SITPRO Simplifying International Trade What I will Cover The Security Environment WCO Safe Framework of Standards EU Authorised Economic Operator Scheme

7. SITPRO Simplifying International Trade Role of Customs Meanwhile, role of Customs changing : Revenue Trade defence Trade management (including revenue) Border security

8. SITPRO Simplifying International Trade Security Drivers and Impacts 9/11! Increased regulation Uncertainty for traders Increased compliance costs Security = the biggest threat to facilitation

9. SITPRO Simplifying International Trade

10. SITPRO Simplifying International Trade Security Initiatives International ISO 28000 ISPS TAPA SAFE National C-TPAT CSI SFI IAN Act Cyclamen Known Shipper

11. SITPRO Simplifying International Trade Security “spaghetti” http://www.sitpro.org.uk/policy/security/initiatives0108.pdf

12. SITPRO Simplifying International Trade WCO SAFE Common standard Strengthened co-ordination and co- operation SAFE = Secure AND Facilitate

13. SITPRO Simplifying International Trade Mutual recognition of AEO AEOC-TPAT 27 Member States ? ? ? + others

14. SITPRO Simplifying International Trade Obstacles / Risks Different bases, different starting points Readiness to compromise (on requirements, NOT border security) Not invented here Lack of trust in authorisation process = lack of trust in companies authorised No benefits to business = no mutual recognition

15. SITPRO Simplifying International Trade UK Experience of AEO The EU legal framework –Council Regulation (EEC) 2913/92 establishing the Community Customs Code –Regulation (EC) 648/2005 of the European Parliament and of the Council – the Security Amendment to the Customs Code –Commission Regulation (EC) 1875/2006 – the Implementing Regulation

16. SITPRO Simplifying International Trade 3 Types of EU AEO 1.Customs Simplifications 2.Security 3.Customs Simplifications and Security

17. SITPRO Simplifying International Trade The EU AEO Concept AEO (from 1 January 2008) Risk Management Framework Pre-Arrival and Pre-Departure data (from mid 2009) Security intervention at port of first call in the Community Administered in each of the 27 Member States

18. SITPRO Simplifying International Trade EU Common AEO Criteria No criminal convictions or liability to conviction Financially solvent and not subject to bankruptcy proceedings Record of compliance with customs requirements Satisfactory system of records management and IT security

19. SITPRO Simplifying International Trade EU Security AEO Criteria Additional Criteria: –Physical security measures –Measures allowing clear identification of trading partners in order to secure the supply chain –Security screening of employees and security awareness programmes for staff –Procedures for handling import/export licenses connected to prohibitions and restrictions

20. SITPRO Simplifying International Trade EU AEO 2000 applications in the EU Scheme not promoted in UK Impact of Customs Consultants Slow process - currently 120 days Lack of direct benefits –Yes –No –Maybe

21. SITPRO Simplifying International Trade Indirect Benefits Pioneers Badge a saleable commodity Customs health check What if………..

22. SITPRO Simplifying International Trade Thank You Graham Bartlett Policy Director 00 44 20 7215 8068 graham.bartlett@sitpro.org.uk