7 Customs
| (a)
(27107)
15380/05
COM(05) 608
+ ADDs 1 - 2
(b)
(27108)
15381/05
COM(05) 609
+ ADDs 1 - 2[23]
|
Draft Regulation laying down the Community Customs Code (Modernised Customs Code) — Implementing the Community Lisbon programme
Draft Decision on a paperless environment for customs and trade — Implementing the Community Lisbon programme
|
| Legal base | (a) Articles 26, 95, 133 and 135 EC; co-decision; QMV
(b) Articles 95 and 135 EC; co-decision; QMV
|
| Department | Revenue and Customs
|
| Basis of consideration | Minister's letter of 25 May 2006
|
| Previous Committee Report | HC 34-xvii (2005-06), para 5 (1 February 2006)
|
| To be discussed in Council | Not known
|
| Committee's assessment | Politically important
|
| Committee's decision | Not cleared; further information awaited
|
Background
7.1 The Community Customs Code, which establishes the general
rules and procedures applicable to goods brought into or out of
the customs territory of the Community, was set out in Regulation
(EEC) No 2913/92. Since 1992 the Code has had some limited amendments
but it has not kept abreast of recent changes in the global trading
environment.
7.2 The draft Regulation, document (a), is a complete
revision of the Community Customs Code, designed to modernise
and simplify it and to make it compatible with operational changes
in international trade, the greater use of electronic communications
and the evolving role of customs authorities. The draft Decision,
document (b), is intended to promote implementation of interoperable
and accessible automated customs systems that are coordinated
across the Community, committing the Commission and Member States
to re-engineer Customs activity for the electronic age within
specific timescales, in order to achieve the objective of a simple
and paperless environment for customs and trade. The intention
is to establish electronic interfaces for traders with Member
States' systems. Responsibility for implementation is to be shared
between the Commission and Member States.
7.3 When we considered these documents earlier this
year we said these were important proposals which could lead to
significant improvements for traders in regard to customs. However
we commented that before considering the documents further we
should like to:
- hear about the outcome of the
Government's formal consultation and more about the likely costs
of implementation; and
- be kept informed of progress on the issues related
to Member State shares of customs duty, collection national taxes
and statistical information, respect for Member State competences
(notably in relation to the imposition of criminal penalties under
the EC Treaty), the balance between the modernised Customs Code
and its Implementing Provisions and the proposed Guidelines to
which the Government had drawn our attention.
Meanwhile we did not clear the documents.[24]
The Minister's letter
7.4 The Paymaster General (Dawn Primarolo) now writes
with some information about the Government's consultation and
the costs of implementation. On the former the Minister says that
as the Government is only now about to embark on the process with
the issue of the consultation document and that as 12 weeks will
be allowed for responses she is not yet able to tell us the outcome
of the consultation.
7.5 As for implementation costs the Minister tells
us that her department has further reviewed estimated Government
costs for Multi-Annual Strategic Plan (MASP) related projects
which are to be sponsored by the Commission. She encloses a table
showing these projects, under MASP category headings, which we
annex. The total cost over the implementation period, 2005/06
to 2012/13, is estimated at £59.5 million. But the Minister
stresses that these are "high-level" estimates based
on discussions with the department's IT supplier on a requirement
that is not yet fully established. The estimates are therefore
subject to change during the project lifecycle.
7.6 The Minister does not yet update us on the other
important issues we mentioned previously.
Conclusion
7.7 We are grateful to the Minister for the information
she has given us. However we regard this very much as an interim
response and observe that until she is able to respond more fully
on all the issues we have raised we can not consider the documents
further.
7.8 Meanwhile the documents remain uncleared.
23 Note that the documents 15381/05 ADDs 1 & 2
are the same as 15380/05 ADDs 1 & 2. Back
24
See headnote. Back
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