3 Customs
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11837/03
COM(03) 452
| Commission Communication on a simple and paperless environment for customs and trade.
Commission Communication on the role of customs in the integrated management of external borders.
Draft Regulation to amend Council Regulation (EEC) No 2913/92 establishing the Community Customs Code.
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| Legal base | (For the draft Regulation) Articles 26, 95, 133 and 135 EC; co-decision; QMV
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| Document originated | 24 July 2003
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| Deposited in Parliament | 30 July 2003
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| Department | HM Customs and Excise
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| Basis of consideration | Three EMs of 18 August 2003
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| Previous Committee Report | None
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| To be discussed in Council | Not known
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| Committee's assessment | Legally and politically important
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| Committee's decision | Not cleared; further information requested
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The document
3.1 This document is in three parts. In the first part the Commission
suggests simplification and rationalisation of customs regulations
and procedures. Here the Commission's key proposals are:
- reduction of the large variety of the current customs procedures
and regimes to some basic procedures;
- all transactions between the trader and the administration
normally to be handled electronically;
- provision of pre-arrival and pre-departure information
to allow controls related to assessed risks to determine the admissibility
of goods at the frontier and fiscal and trade policy controls
to be performed inland at the traders' premises;
- Community customs administrations to act as if
they were a single administration;
- customs administrations to be able to share data
electronically with other public authorities.
3.2 To achieve this framework the Commission proposes
a review and consolidation of customs legislation. In particular,
legislation would:
- provide for electronic declaration
as the norm;
- significantly reduce the number of existing customs
procedures and other regimes;
- align simplified procedures to electronic treatment
and extend their scope and use;
- redefine the roles of inland and frontier customs
offices and the rights and responsibilities of traders and freight
forwarders; and
- provide for a single guarantee to cover all customs
business regimes and procedures and for a single European authorization
for central simplified clearance, valid throughout the Community,
to be granted by one Member State.
3.3 In the second part of the document the Commission
proposes rationalization of the management of customs controls
through a common strategy for goods. In December 2001 the European
Council commissioned a strategy for the surveillance and control
of the EU's external borders. Its aim was to improve immigration
and other controls, whilst facilitating the movement of legitimate
travellers and trade. The Commission proposes strengthening
of border controls on goods
that pose a threat to Member State's security.
3.4 The strategy includes the introduction of a common
framework of risk management at the external border. The key
points are:
- rationalising customs controls
at the external border of the Community so that fiscal controls
are dealt with inland, allowing a focus on admissibility at the
external frontier;
- establishing a common approach to the risks related
to goods within a common mechanism for co-operation. The Commission
proposes that all the services concerned (customs, police, health,
environment etc.) should work together to establish priorities
and define common risk profiles;
- ensuring an adequate level of human resources
and equipment at the external frontiers;
- establishing a legal and regulatory framework
integrating the security dimension into customs work;
- reinforcing cooperation with police and the other
authorities at the external frontier when work and missions overlap.
3.5 The third part of the document is a draft Regulation
to amend the Community Customs Code Regulation to:
- provide for a standardised
format for pre-arrival and pre-departure information and lay down
timescales for its submission;
- broaden the range of 'competent authorities'
to play a role in customs controls and the range of legislation
to be enforced. This covers functions to support and enforce restrictions
administered by government departments, other than Customs, and
to allow them to be carried out in a shared electronic environment;
- introduce risk and risk management as an explicit
element of customs controls; and
- provide for information exchange between the
customs authorities of the Member States, between them and the
Commission and between customs authorities and other authorities.
The Government's view
3.6 On the Commission Communication on simplification
of customs legislation and procedures the Paymaster General (Dawn
Primarolo) tells us:
"The Government supports the strategic goals
set out in this Communication. They fully accord with its vision
for the future Customs and international trade environment as
outlined in the Customs Blueprint for International Trade. The
individual proposals, which will follow the Communication, will
support implementation of the Customs Blueprint in the UK."
3.7 As for the Communication on the role of customs
in the integrated management of external borders the Minister
says:
"The Government welcomes the Commission's thinking
on locating controls of international trade increasingly inland
and allowing customs posts at the external border to focus on
admissibility controls.
"The Government agrees that security controls
on the movement of goods should be based on risk assessment but
should be sufficiently flexible to take account of national risks.
Therefore, such controls are essentially for Member States, and
should be based on the sharing of best practice, the exchange
of information and the development of common frameworks rather
than unnecessary harmonisation. The Government will examine the
detail of Commission proposals to take forward this Communication.
It will assess whether the proposals strike the right balance
in this respect, and within the wider context of the on-going
work on border controls on the movement of people across the external
frontier."
3.8 In relation to the draft Regulation the Minister
tells us:
"The Government welcomes the proposed regulation,
which would improve the management of pre-arrival and pre-departure
information, by providing consistency for both Customs and the
trade. The 24-hour deadline for submission of the information
aligns this requirement with that already agreed in the US under
the Advance Manifesting Procedures in respect of maritime (sea)
traffic. Additional burdens on trade will be minimised by the
provision of special deadlines for certain types of traffic
(e.g. fast parcel operators) and for authorised traders, who have
an appropriate record of compliance with Customs requirements.
In relation to risk management the overall approach is welcomed
since it emphasises a common framework for control, rather than
common controls, using best practice. The Government will be playing
a key part in the development of the risk management framework."
Conclusion
3.9 We welcome the intention both to simplify
customs procedures and to rationalise the customs role in the
management of the Community's external borders. But we note that
the draft Regulation would allow access by non-customs agencies
to the electronically-based information of customs administrations.
We should be grateful if the Minister would let us know the Information
Commissioner's view of this particular aspect of the proposals.
Meanwhile we hold the document under scrutiny.
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