Explanatory Memorandum to COM(2005)609 - Implementing the EC Lisbon programme - Proposal for a Decision of the European Parliament and of the Council on a paperless environment for customs and trade - Main contents
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| dossier | COM(2005)609 - Implementing the EC Lisbon programme - Proposal for a Decision of the European Parliament and of the Council on a paperless ... |
|---|---|
| source | COM(2005)609  |
| date | 30-11-2005 |
The Decision promoting electronic customs is an instrument for the implementation of interoperable and accessible automated customs systems, both under the current and the future modernized Customs Code, and for coordinated processes and services. It is intended to create the necessary commitment, with regard to border agencies other than customs, to implementing the Single Window and One-Stop Shop concepts. Its main purpose is to determine what action needs to be taken and what deadlines met by all stakeholders in order to achieve the objective of a simple and paperless environment for customs and trade by the time the modernized Customs Code enters into force.
All stakeholders will commit themselves to setting up and operating secure, interoperable and accessible electronic customs systems that improve and facilitate supply chain logistics and customs processes. Customs clearance will become more efficient, administrative burdens will be reduced, trade will be facilitated, the safety of goods and security of international trade will be increased and environmental and consumer protection will be enhanced through better targeted customs controls based on electronic risk management systems.
Member States have committed themselves to actions within the framework of e-Europe and, in particular, e-Government [Communication from the Commission to the Council, the EP, the EESC and the CoR on "the role of e-Government for Europe's future" of 26.9.2003, COM(2003) 567]. The Council Resolution of 5 December 2003 (OJ C 305, 16.12.2003, p.
1), which endorsed the Commission Communication on a simple and paperless environment for customs and trade [COM(2003) 452, 24.7.2003], invites the Commission to 'draw up, in close cooperation with Member States, a multi-annual strategic plan, aimed at creating a European electronic environment, which is consistent with the operational and legislative projects and developments scheduled or underway in the areas of customs and indirect taxation'. Consequently, the Commission has drafted a vision statement and plan designed to establish a list of actions for implementation and a timetable for what is now called the 'electronic customs initiative', to be agreed upon and adhered to by all of the parties involved.
Member States have already invested significantly in the development of automated customs systems. However, the difference between existing systems, sets of rules and data used offsets the advantages of any harmonization achieved in this field so far, primarily because of the lack of interoperability between these systems. It is essential that customs systems are able to exchange electronic information and are provided with a range of interfaces with the trade, based on commonly used technology.
Community-wide IT applications for customs clearance do not yet exist, apart from the new computerized transit system, NCTS, which has successfully demonstrated the feasibility of such systems and opens new opportunities for similar applications in other customs regimes. This would require the introduction of a convergence framework and, where appropriate, common standards and structures.
Consequent to Regulation (EC) No 648/2005 amending Regulation (EEC) No 2913/92 (Community Customs Code), goods must be declared prior to their departure from or their arrival in the customs territory of the Community. This information will be subject to risk management, primarily security-related, and be exchanged electronically between the competent inland and border customs offices. The implementing provisions relating to this Regulation are currently being discussed in the Customs Code Committee and with economic operators.
In order to coordinate implementation of the multi-annual strategic plan, it is essential that Member States accept milestones as binding deadlines. The Commission and the Member States will commit themselves to actions requiring both human and financial resources, as well as to milestones intended to achieve simultaneous implementation of commonly agreed electronic customs systems based on existing legislation, including the above-mentioned changes, which can readily be adjusted to the principles of the modernized Customs Code.
Without this Decision, it would be impossible to ensure simultaneous implementation by all Member States. The lack of prior coordination may make a posteriori Community action necessary in order to enforce Community legislation, such as Regulation (EC) No 648/2005. Furthermore, if the Member States have not committed themselves to providing for the necessary resources, the new customs systems are not likely to be implemented by the time the modernized Customs Code enters into force. This would result in the continued parallel use of paper-based and electronic procedures (at least where more than one Member State is involved in the procedure), which will lead to unnecessary costs for both customs and trade and is likely to affect the competitiveness of companies doing business in the Community. Furthermore, it would increase the risk of fraud, compromise safety and security at external borders and weaken the role of customs as the principal agency for border protection and supervision in respect of the international movement of goods.
These are Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code and Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92. These regulations contain the Community customs legislation (customs rules and procedures), which provides the legal background of the electronic customs initiative and the present proposal. Both regulations have been amended several times. The latest amendment, Regulation (EC) No 648/2005, is particularly relevant for electronic customs, as it provides for electronic summary declarations and the electronic exchange of data between customs administrations.
Decision No 253/2003/EC of the European Parliament and of the Council of 11 February 2003 adopting an action programme for customs in the Community (Customs 2007) provides for the financing of the Community components of the IT projects put forward in the proposed Decision. The successor programme (Customs 2013) will be the subject of a new Decision. The proposal will be submitted by the Commission in due course.
The proposal is consistent with the Council Conclusions of 2005 on Re-launching the Lisbon Strategy: A Partnership for Growth and Employment (Commission Communication on common actions for growth and employment, [COM(2005) 330)] and with the Commission's e-Europe and the e-Government initiatives [COM(2002) 263 and COM(2003) 567].
Consultation of interested parties
Consultation methods, main sectors targeted and general profile of respondents
Stakeholders consultation on the electronic customs initiative and the modernized Customs Code took place during seminars in Toledo (2003), Vuokatti (2003), Budapest (2005), Wroclaw (2005), Vilnius (2005) and Helsinki (2005). Furthermore, the modernized Customs Code and electronic customs were regularly discussed in the Customs Code Committee, the Customs Policy Group, the Customs 2007 Electronic Customs Group, and the Trade Contact Group.
Most traders reacted favourably to the modernization of the Customs Code and the implementation of accessible and interoperable pan-European customs clearance systems, and the Single Window/One-Stop-Shop concepts. Furthermore, they believe that simply computerizing existing procedures is not sufficient, even if Member States' systems are made interoperable. They therefore expressed a clear preference for combining progress on the IT side with the streamlining of customs legislation. The same position is taken by most customs administrations. The detailed results of the consultations relating to the modernized Customs Code and Electronic Customs and further information to what extent they were taken into account are published on the internet:
europa.eu.int/comm/taxation_customs/common See also the Annexes of the attached Impact Assessment.
There was no need for external expertise.
Making only those changes required under the security amendment of the Customs Code (electronic pre-arrival and pre-departure declarations, automated risk management), would bring about a certain degree of progress towards electronic customs, but would not be sufficient to cope with the increasing volumes of goods moving across EU borders. The complexity of the modern supply chain, the number of parties involved, and the increasing volume of just-in-time deliveries require readily available information on international trade transactions both for suppliers, buyers and carriers, and for customs and other border agencies. The increasing use of information and communication technologies throughout the supply chain has created a new business environment requiring an appropriate response by customs. Traders expect low customs-related transaction costs and rapid clearance of goods.
The proposed Decision will allow for the simultaneous development of interoperable customs systems, enabling customs administrations to exchange data with other customs administrations throughout the Community and with other authorities involved in the movement of goods into or out of the Community. Service providers and administrations will be encouraged to create single access points, whereby traders can submit declarations to the competent customs authorities via their existing interface. Information will be more readily accessible, via common customs information portals. Member States will commit themselves to the development of interoperable customs systems, Single Windows and One-Stop Shops. Traders will benefit from lower transaction costs, greater involvement in international trade and more competitiveness; customs and other administrations will benefit from more efficient controls and better allocation of resources. However, without a complete overhaul of the customs rules and procedures, as put forward in the proposed modernized Customs Code, paper-based and electronic declarations would co-exist and customs procedures remain complex, thereby reducing the efficiency of the system.
A centralized customs system, rather than interoperable customs systems, would also meet the objectives described above. However, a centralized customs system would require major operational changes: centralized management of the Customs Union. It would therefore take more years to implement and thus the benefits for traders would materialise much later. Furthermore, such a shift of operational responsibility from the Member States to the Commission would go against the principles of subsidiarity and proportionality.
The results of this impact assessment coincide with the opinion expressed by most traders and administrations, namely that pan-European electronic customs systems should be implemented as soon as possible.
The Commission carried out an impact assessment, as listed in the Work Programme. A report entitled 'A combined impact assessment of the proposal for a modernized Customs Code' is attached. Option 2 of that assessment describes the impacts of the electronic customs Decision if it were taken alone, whereas Option 3 combines the electronic customs Decision with the modernized Customs Code.
Contents
- LEGAL ELEMENTS OF THE PROPOSAL
- BUDGETARY IMPLICATION
- GROUNDS FOR AND OBJECTIVES OF THE PROPOSAL
- General context
- Existing provisions in the area of the proposal
- Consistency with the other policies and objectives of the Union
- 2. CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT
- Summary of responses and how they have been taken into account
- Collection and use of expertise
- Impact assessment
- Summary of the proposed action
- Legal basis
- Subsidiarity principle
- Proportionality principle
- Choice of instruments
- 5. ADDITIONEL INFORMATION
- Detailed explanation of the proposal
This proposal contains actions and deadlines for the implementation of accessible and interoperable electronic customs systems, describes the responsibilities of the Member States and the Community and establishes a governance framework. The Member States must commit themselves to the objectives and actions laid down in the Decision, and in particular ensure the provision of a Single Window and a One-Stop Shop for all authorities and agencies involved in the control of the import and export of goods.
Articles 95 and 135 of the EC Treaty.
The subsidiarity principle applies insofar as the proposal does not fall under the exclusive powers of the Community.
The objectives of the proposal cannot be sufficiently achieved by the Member States alone for the following reason(s). External trade policy and the Customs Union require a common approach to the import and export of goods. This proposal provides for simultaneous pan-European implementation of electronic customs systems which are interoperable and accessible to traders throughout the EU. The cost of keeping in place a burdensome, diversified system which is no longer in line with the economic and technological environment is much higher than the transitional cost of replacing it by a simpler, more transparent and better managed system. Unlike under the centralized system option, no shift of responsibilities from the Member States to the Commission will be necessary.
Interoperable customs clearance systems throughout the EU cannot be introduced by the Member States alone.
Community action will be more effective in achieving the objectives of the proposal for the following reason(s).
Without such a Decision, harmonisation and simultaneous implementation of pan-European electronic customs systems cannot be guaranteed; as a consequence, there will be a high risk of divergent electronic processes and information portals, which will lead to unnecessary costs for business and customs administrations, and will reduce the efficiency of customs controls.
Without the involvement of the EU, an equal level of implementation of interoperable automated customs systems cannot be achieved.
National actions alone cannot ensure coordination between all Member States, which is necessary to achieve simultaneous implementation of interoperable automated customs systems, and common standards for customs portals and Single Windows.
The proposal therefore complies with the subsidiarity principle.
The proposal complies with the proportionality principle for the following reason(s).
The proposed Decision limits Community action to the provision of the components necessary for interoperable customs systems and the common standards needed for customs portals and Single Windows (Article 4(3)). Within this framework, Member States will develop their own national components, customs portals and Single Windows.
The Decision not only limits financial commitments to what is necessary in order to provide for interoperable customs systems and common standards for customs portals and Single Windows, it also commits Member States to minimizing costs by cooperating to the greatest extent possible (Articles 2 i and 10(5)).
Proposed instruments: Other.
Other means would not be adequate for the following reason(s).
The proposed Decision of the Council and of the European Parliament is addressed to the Member States. It does not lay down rights or obligations of citizens, but provides for commitments by the Member States.
See attached financial statement.
Simplification
The proposal provides for simplification of administrative procedures for public (EU or national) and private parties.
Electronic exchange of information between customs administrations and between customs administrations and other authorities involved in the international movement of goods will make for more efficient and effective controls and, consequently, more efficient risk management and allocation of resources.
An electronic environment for customs and trade, consisting of accessible and interoperable customs systems, will allow for faster release of goods. Furthermore, economic operators will, under certain conditions, be able to conduct their customs-related business with the customs administration at the place where they are established (centralized customs clearance and single access point).
The proposal is included in the Commission's Work and Legislative Programme under reference 2005/TAXUD-016, which is related to 2004/TAXUD-015.
Articles 1 - 3 (Electronic customs systems, Objectives, and Data exchange): The Commission and the Member States aim to deliver pan-European e-Government services through interoperable and accessible electronic customs systems (see Article 1). This will facilitate supply chain logistics and customs processes for the movement of goods into and out of the European Community and reduce the risk of threats to the safety and security of citizens. Based on this premise, Article 2 lays down the main objectives of electronic customs systems. Article 3 requires that the customs systems operated by the customs administrations and by the Commission are to be accessible to economic operators and to be interoperable, both with each other and with systems operated by other authorities involved in the international movement of goods.
Article 4 (Systems and services, and time-table): This provision contains a list of systems and databases related to the electronic customs initiative, in order of their implementation deadlines (starting from the publication of this Decision in the Official Journal of the European Union ):
- within three years:
- interoperable automated customs clearance systems;
- an interoperable system of registration for economic operators;
- common customs information portals;
- within five years:
- a framework for single access points;
- an integrated tariff environment corresponding to Community standards;
- within six years:
- single window services.
Articles 5 - 7 (Components, Tasks of the Commission, and Tasks of the Member States): Articles 6 and 7 describe the main implementation tasks of the Commission and the Member States.
Article 8 (Implementation): Article 8 describes the implementation procedure and the governance framework relating to the electronic customs initiative. Management will be provided by the Commission, assisted by the Customs Policy Group. The role of the Customs Code Committee and the Customs 2007 Committee, which support the implementation of this Decision, will not be affected by the Decision.
Article 9 - 10 (Resources and Financial provisions): Article 9 defines the responsibilities relating to the human, budgetary and technical resources of the Community and of the Member States that will required for the purposes of establishing, operating and improving the electronic customs systems. Article 10 lays down the rules for the sharing of costs between the Member States and the Community with regard to the implementation and operation of the electronic customs systems covered by this Decision. Costs will be minimized through cost-sharing and the use of common solutions.
Article 11 - 12 (Monitoring, Reports): Measures financed out of the Community budget will be monitored by the Commission, in cooperation with the Member States (Article 11). The completion of tasks will be notified to the Commission. Furthermore, the results of monitoring visits and other controls will be the subject of annual reports (Article 12).
Articles 13 - 14 (Consultation of economic operators and Accession and candidate countries): Article 13 requires a trade consultation mechanism to be put in place both at Commission and Member States level. Bulgaria, Romania and candidate countries will regularly be kept informed by the Commission at all stages; they may also take part in the preparation, development and deployment of the customs systems and services.
Article 15 (Entry into force).
Article 16 (Addressees): The Decision is addressed to the Member States.