1. 1 A paperless environment for customs and trade, balancing security and trade facilitation Dr. Panayota ANABOLI Head of sector eCustoms European Commission DG Taxation and Customs Union e-mail: panayota.anaboli@cec.eu.int 20.06.2005

2. 2 Overview I. Milestones/background  Adapting to an evolving environment II. Legal initiatives  Adaptation of legislation to security requirements  Simplification of legislation III. Operational initiatives ensuring:  interoperability  accessibility.

3. 3 Legal and information sources Background documents e-EuropeCommission Communication of 28th May 2002; COM (2002) 263 e-GovernmentCommission Communication of 26th September 2003; COM (2003) 567 Communication on paperless customs and trade Commission Communication of 24th July 2003; COM (2003) 452 Council resolution on paperless customs and trade OJ 2003/C 305 E/01, p. 1

4. 4 Adapting to an evolving environment  Legal adaptation to an evolving political, legal and IT-related environment –Lisbon strategy: Business competivity –e-Europe and e-Government –Enlargement  Commission Communications and Council Resolution on paperless customs and external border security

5. 5 1. eCustoms Communication COM (2003) 452 Simplify customs legislation Integrate safety and security requirements Electronic declaration and electronic exchange of data between: customs administrations customs administrations and traders customs administrations and other administrations or agencies involved to the movement of goods Significant reduction and amalgamation of existing customs treatments Single guarantee, Community-wide decisions Promotion of Single European Authorization Review of customs debt provisions, centralizedclearance

6. 6 CC Security related amendment  Pre-notification of : –arrival of the goods to the entry point of EU territory –departure of the goods from the exit point of EU territory  Within time limits  In order to allow risk analysis  Extra-burden?

7. 7 Authorized Economic Operator ()  Essential concept with regard to security related controls and facilitation  EU wide recognition of the status  Benefits:  facilitations with regard to customs controls relating to security and safety and/or  simplifications provided for under the customs rules  Implementing provisions: –Criteria for granting AEO status, –rules for the authorization procedure, –simplifications CC Security related amendment

8. 8 Simplification of legislation Modernized Customs Code  Electronic declarations  A single simplified procedure  New concepts: centralized clearance, single window, one-stop shop  Non-compliance: harmonization  Authorized Economic Operator concept  Merger and alignment of special procedures

9. 9 Operational actions MASP (Multi-annual strategic plan)  An obligation foreseen by the Council resolution a simple and paperless environment for Customs and Trade which follows to the Commission Communication  2 axes: –interoperability –accessibility

10. 10 MASP INTEROPERABILITY Between customs administrations (exchange of data to perform risk analysis and decide on physical control of goods at the EU border) First implementations: 1)current ECS (Export Control System) pilot project based on NCTS structure and messages foreseen for 2006 2) AES (Automated Import System) user requirements foreseen for 2006

11. 11 MASP INTEROPERABILITY (continues 2)  Setting up a convergent automated system of risk-analysis (proposed in the draft regulattion currently under discussion at the Council)  Automated importation system  Links with existing common systems and reference data (e.g.NCTS, quotas, TARIC etc)

12. 12 MASP INTEROPERABILITY (continues 3)  Interoperability between Customs and other administrations (taxation, agriculture, environment etc).> Single Window in order to facilitate accessibility

13. 13 MASP ACCESIBILITY  Single access point for the trader (=no 25 interfaces, no harmonised interface, but give the data once for the whole EU customs transactions)  Single window for customs related legislation (this implies interoperability between customs administrations and other agencies)  Customs common portal to provide customs- related info

14. 14 MASP  Next steps: –MASP has to be endorsed by MS (agree on priorities and timelines) –Council decision binding all stakeholders to the implementation of eCustoms

15. 15 Modernized Customs Code and eCustoms MASP and Council decision  Basis: Council resolution on paperless environment for customs and trade  Objective: Synchronized implementation of eCustoms by MS, traders, COM  Means:Setting up governance for implementing and running eCustoms

16. 16 Common electronic customs systems  NCTS  ECS / AES  ICS / AIS  Traders database

17. 17 Common electronic customs systems ICS / AIS  User requirements are being prepared by AIS-WG  Cover all goods subject to customs supervision, except NCTS and AES  Exchange of data between customs administrations, in particular in the case in which the office of entry and import are in different MS  Exchange of data between the importer and the customs administrations  Seamless flow of data between AIS and other systems (AES, NCTS and others) allowing the importer, where this is possible, to enter the data once

18. 18 Operational actions Traders database  Regulation (EC) 648/2005 "security amendment" –AEO concept: recognition by all MS –Risk management: identification of traders  Draft modernized Customs Code –AEO concept –Risk management –Exchange of electronic data  Vision: register once for all  Options –Centralized database –Harmonized national databases

19. 19 Operational actions Single access point (1)  e-governement compatible concept  Traders lodge all their electronic customs declarations to one single access point, even if the goods are cleared in another Member State.  This data is automatically made available to the customs office where the goods are presented after technical validation of data format / transcription of the data to the format and semantics required by the receiver of the data.  Feedback to the trader in the format agreed with the trader.  Free choice of SAP (run by MS or private operators)?

20. 20 Operational actions Single Access Point (2) MS a MS c MS b Customs MS d Customs SAP Customs Debt Customs Debt NCTS

21. 21 Operational actions Single access point (4) Today Single Access Point

22. 22 Operational actions Single Window and One-Stop Shop SINGLE WINDOW  Traders submit all data required for the customs procedure to customs, even if they are required by non-customs legislation and need to be submitted to health, environment, police and other authorities and agencies (e.g. electronic certificates)  Real-time exchange of data between customs and these authorities and agencies will enable customs to validate this data submitted by traders  ONE-STOP SHOP  Physical controls required by different authorities and agencies involved in customs transactions are performed at the same time and at the same place

23. 23 Operational actions Single Window Cust Admin MS Import or Export Commission Nat Agency d Nat Agency c Nat Agency b Nat Agency a Declaration + Acc docs (Licenses, Certificates,..)

24. 24 Operational actions Information Portal  Information needed for import/export transactions in a Member State is available at the same website  Web of national and EU customs webs  Seemingless surfing from one to other sites

25. 25 Provisional timeframe Implementation phases  Specifications:2004 - 2006  Implementation:2006 – 2009  "0 to 25" transition: 2009 - 2010

26. 26 Provisional timeframe Legal threads  Amendment to the Customs Code –Mid 2006 Security amendment (Reg. (EC) 648/2005) with implementing provisions in force –Mid 2009Electronic systems in place  Modernized Customs Code –Autumn 2005Commission proposal –2009Entry into force (together with IP)  Council decision implementing eCustoms –Automn 2005Commission proposal –Mid 2006Adoption –Timeframeuntil 2009

27. 27 Legal and information sources Legal acts and information sources Amendment to the Customs Code OJ 2005 No. L 117, p. 13 Draft modernized Customs Code TAXUD/458/2004 Rev. 4 Multi-annual strategic planTAXUD/477/2004 Rev. 3 Working document Draft Council decisionIs being drafted by TAXUD

28. 28 Conclusion Balancing security and trade facilitation is a difficult task Requires comittment by all stakeholders at all levels (national, EU, international) Requires strong governance scheme The benefits for competitiveness, security and saftery are worth the investment Traders and customs partnership as key factor to success! THANK YOU!

29. 29 Further information  Website TAXUD: http://europa.eu.int/comm/taxation_customs/in dex_en.htm  E-Mail taxud-c3@cec.eu.int