International standards in use for e-customs in Europe

1. International standards in use for e-customs in Europe Jean-Luc Delcourt TAXUD-C-1 Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

2. Context • Customs declarations at the centre of Customs processes • Vector for data exchange (B2C, C2C) • Helps identify good flows – Risk-analysis • Customs declarations <> « Summary » declarations • Paper support > IT systems • Security concerns Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

3. Presentation structure • Customs declarations • Origin: Single Administrative Document (SAD) – International standards • Harmonisation of simplified procedures • Summary declarations (“Cargo report”) • Origin: Cargo manifest • Supply chain security >> • Electronic Customs • The steps • Single window • International standards • Perspective for South Caucasus Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

4. SAD - context SAD (1988): EU + EFTA • Rationalised and reduced administrative documentation • Ensured openness in national administrative requirements • Reduced amount of data • With possibility for countries to require or not some of the data elements (“Optional boxes”) • Standardise and harmonise data • Which implies use of common codes for certain data elements Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

5. SADStandardizes and harmonizes data (1) • Use of common codes for as many data elements as possible • Trader identification numbers (boxes 2, 8 ...) • Delivery terms (box 20) • Nature of transaction (box 24) • Preference codes (box 36) • Procedure codes (box 37 – partially) • Valuation method code (box 43) • Special mentions (box 44 – partially coded) • Tax types (box 47) • Mode of payment (box 47) • Warehouse identification (box 49) • Guarantee (box 53) Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

6. SADStandardizes and harmonizes data (2) • As far as possible international standards • Country codes (iso alpha 2 codes – ISO 3166-derived) (Boxes 15, 17, 21, 34 ...) • Currency codes (box 22 – ISO 4217)) • Modes of transport (boxes 25 and 26 – UN-ECE rec. 28) • Customs offices (box 29, 51 – UN LOCODE - partially) • Package codes (box 31 UN-ECE rec. 21) • Commodity code (box 33 – HS code) • Documents identification (boxes 1, 40, 44, partially 1001 Edifact codes) • ... • More in my next presentation ... Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

7. Simplified declarationsHarmonisation • Context: the security amendment of the Customs Code • Need to minimize disruptive effects on private and public IT systems • Important to : • avoid multiple changes of legislation that would affect customs data collection in quick succession. • ensure coherence throughout the data collection chain from Pre-arrival / pre-departure information to SAD declaration data. • Need to harmonize first steps of simplified procedures Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

8. Summary declarations Harmonisation (1) • Summary declarations (“Cargo report”) • Origin: Cargo manifest • Objective: Identify goods to ensure efficient customs control • EU law not very detailed • Supply chain security >> • new data, • new data flows, • EU harmonisation necessary Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

9. Summary declarations Harmonisation (2) New security environment: Consequences for Customs • Origin: International developments • EU response: New Customs code security-related provisions: • Electronic information exchange between customs administrations; • Rationalisation of customs controls • safety and security-related controls at entry or exit of goods into or from the Community, • transfer of those concerning fiscal matters to the place where the trader is established; • Provide reliable traders with special, user-friendly options; • require traders to provide customs authorities with information on goods before they are imported into or exported from the European Union, via electronic summary declarations; • introduce risk selection criteria that will apply throughout the Community and that will be supported by a co-ordinated computerised system. • WCO framework of standard: WCO data model, AEO concept Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

10. Summary and Simplified declarationsHarmonisation • LEGAL FRAMEWORK • Council regulation N° 648/05 • Commission Regulation N° 1875/06 (Implementing provisions, which include data requirements). • Most provisions to be applicable on 1.7.2009 • Some provisions (AEOs) on 1.1.2008 • RESULTS • Harmonise security data • Integrate simplified procedures • Define necessary requirements for adequate risk-analysis • Ensure coherence throughout the data collection chain • Ensure that data is provided by party best able to provide it reliably • Ensure balance between : • objective security needs and • minimization of burden for traders Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

11. Electronic customs EU Project Objectives • Commission and EU Member States objectives • To deliver pan-European e-Governmentservices, • To provide for efficient, effective and interoperable information and communication systems between public administrations, • To enable exchanges and process of information across Europe in a secure manner. • Actions: They shall set up and operate: • What?Electronic customs systems which are secure, integrated, interoperable and accessible, • Why? • To facilitate supply chain logistics and customs processes for the movement of goods into and out of the European Community and • To reduce the risks of threats to the safety and security of citizens • How? By minimising the remaining differences between Member States' Customs processes. • Programme structured in 3 stages. Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

12. Electronic customs EU ProjectStage 1 • Stage 1 • Builds on existing work, notably NCTS and work in the field of risk management • It creates the foundation for an electronic customs declaration environment by adding ICS, ECS and NCTS-TIR to the existing NCTS. • Provides aspects of the EU electronic customs vision which also address trader concerns: • Economic Operators' Registration and Identification System, • Authorised economic operators (AEO), • This work is on-going; Objective: Initially operational by 2009. Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

13. Electronic customs EU Project Stages 2 and 3 • Stage 2 • More ambitious aspects of the electronic environment to lead to: • Completion of a fully automated export and import system (AES and AIS), • Completion of the Integrated Tariff Environment (ITE). • EU Customs Information Portal • Some preparatory work will begin during the earlier stage, the aim would be for the main developmental, testing and implementation to be after 2009. • Stage 3 • Single Windowproject. This would put in place the final elements foreseen in the electronic customs initiative; Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

14. Single window in the EU • What: To enable economic operators to lodge electronically and once only all the information required by customs and non-customs legislation for EU cross-border movements of goods. • How: • By fostering the development of national single windows systems in all Member States • By ensuring that national single window systems and EU centrally-managed systems operate smoothly together. • Details of Single Window design currently discussed within EU. • Programme coordinated by DG TAXUD. Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

15. International standards • Wherever possible, all these developments are conducted in coherence with international instruments such as: • WCO framework of standards – WCO data model • UN-ECE standards and recommendations • Where this is not possible, the EU links with the relevant organisations to maintain those instruments. Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

16. Data requirements harmonization from the perspective of the SAD and its use in South Caucasus • By nature, the SAD encourages and presupposes • Data requirements as harmonized as possible in their definitions and representations • The use of international standards for data and codes • This enables traders to provide export and import data to customs at a lower cost: Data can be « recycled »: • from export to import formalities / declarations, • from commercial to Customs documentation. • This ensures better quality of data for Customs administrations. • The connection and integration of national procedures in a coherent, global standards-compliant, modernized framework is paramount for the development of the economy and the modernization of public systems. Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi

17. THANK YOU VERY MUCH FOR YOUR ATTENTION ANY QUESTIONS ? • Jean-Luc DELCOURT • European Commission - TAXUD C/1 • Telephone: + 32 2 296 23 24 • Fax: + 32 2 296 59 83 • e-mail: Jean-Luc.Delcourt@ec.europa.eu • Web: E-customs page of TAXUD website Conference on trade facilitation, single window, data harmonization and SAD in the South Caucasus – Tbilisi