Centralised Clearance Seminar: Simplified Procedures & Business Expectations

1. American Chamber of Commerce to the European Union Seminar on Single Authorisation for Simplified Procedures / Centralised Clearance Budapest 1 – 3 October 2008 Centralised Clearance Business Expectations Keith Vaughan, UPS Chair, AmCham EU Customs and Trade Facilitation Committee

2. AmCham EU • Represents 140 European companies of US Parentage • 40 of the members are among the Fortune 100 Major US Industrial Corporations • The member companies are long-term investors in Europe and have manufacturing plants throughout the EU • Multi-sectoral industry based • US investment in Europe amounts to €702 billion and currently supports over 4.1 million jobs

3. Current Situtation • Few members have applied for an SEA as the process is costly and time consuming • Lack of centralisation within the EU has led to companies looking for innovative solutions • CPC 4200 • Clearance at first point of arrival with • Importer of record • Onforwarding to destination in free circulation • Intrastat and VIES reporting

4. Current Situtation (Cont.) • Some Member States are strongly opposed to SEA and to SASP • SASP proposals from Working Group strongly supported • The combination of SASP and AEO are Centralised Clearance in all but name • VAT, Statistics, Collection Costs/ Own Resource and National Prohibitions and Restrictions are barriers to progress in Centralisation

5. Centralised Clearance – Expectations • Person applying will be an AEO, or will meet the AEO criteria • Person with AEO authorisation will be a trusted partner • Since the data required for an application for AEO is similar to that for other procedures, approval of applications for other procedures will be automatic

6. Centralised Clearance – Expectations (Cont.) • One customs office in a single Member State for • Lodgement of all data relevant to a specific shipment for any procedure relating to, or controlled by, customs • The payment of customs duties on all shipments imported to or exported from 27 Member States • The payment of or accounting for VAT for all consignments

7. Centralised Clearance – Expectations (Cont.) • One customs office in a single Member State for • Risk analysis for both security, safety, and fiscal purposes • Presentation of Goods • Entry into records • Release of goods • Tariff classification, origin and preference and valuation

8. Centralised Clearance – Expectations (Cont.) • One customs office in a single Member State for • Entry into record • Periodic entry of self assessment • No transit – Virtual Warehouse

9. Centralised Clearance – Benefits • Ability to route goods direct to the point of consumption • Improved communication with customs (one single customs administration, one single language) • Reduction of costs through savings in centralisation (reduction of customs transactions and of the need to use representatives in customs matters)

10. Centralised Clearance – Benefits (Cont.) • Reduction in transit times and costs • Improved compliance • Improved risk management • Competitiveness of European business in the global marketplace