8 Customs
| (27108)
15381/05 +
ADDs 1-2
COM(05) 609
| Draft Decision on a paperless environment for customs and trade — Implementing the Community Lisbon programme
|
| Legal base | Articles 95 and 135 EC; co-decision; QMV
|
| Department | Revenue and Customs
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| Basis of consideration | Minister's letter of 8 March 2007
|
| Previous Committee Report | HC 34-xvii (2005-06), para 5 (1 February 2006), HC 34-xxxi (2005-06), para 7 (14 June 2006) and HC 41-x (2006-07), para 6 (21 February 2007)
|
| To be discussed in Council | ECOFIN Council 27 March 2007
|
| Committee's assessment | Politically important
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| Committee's decision | Cleared
|
Background
8.1 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.
8.2 We have under scrutiny a draft Regulation which
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.[35]
The draft Decision in this document, which has been under consideration
in conjunction with the draft Regulation, 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.
8.3 When we considered these documents in February
2006 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 additional information. In relation to the draft Decision
this related to the likely costs of implementation. In June 2006
we reported further information about the likely costs of implementation.
In February 2007 we reported further information about both documents,
including that work on the technical and functional specifications
of the IT systems was ongoing and that, understandably, until
this work was finalised the Government could not refine further
the estimates already given to us.
8.4 Furthermore, in relation to the draft Decision,
we were told that there was the possibility of more rapid progress
on this than on the draft Regulation, but that discussion
in the Council's Customs Union Group (CUG) of the draft Decision
had led to substantial amendment of important elements relating
to implementation timescales. The German Presidency would be carrying
discussions forward with a view to CUG agreement on text to be
transmitted to the European Parliament.[36]
The Minister's letter
8.5 The Paymaster General (Dawn Primarolo) tells
us now that, although CUG discussions of the draft Regulation
continue, the group has reached a common position on a revised
text of the draft Decision for adoption by the Council. She says
this revised text is an excellent result for both UK businesses
and the Government and was only achieved after extensive lobbying.
The Minister says the redraft:
- removes many of the previous
fixed deadlines;
- requires Member States and the Commission only
to "endeavour" to establish many of the projects within
a specified time frame, and only then after a positive evaluation;
- removes entirely any deadline for establishing
"single window" services;
- has revised timelines which better reflect the
practicalities of designing and building complex IT projects and
has the necessary lead-in times for roll-out and testing; and
- provides for projects to be abandoned at the
evaluation stage before any substantial investment has been made.
8.6 Recalling that the European Parliament has already
agreed the original proposal without amendment, the Minister comments
that there is a risk that it will be disappointed by the removal
of the deadlines, feeling that this is disadvantageous to businesses.
But she says:
- UK businesses shared the Government's
view that the original deadlines were ambitious in the extreme;
- the Government will be lobbying European Parliament
committee members to persuade them that it is in the best interest
of businesses and customs administrations alike to take the more
flexible approach set out in the latest text; and
- it will resist any attempt to reintroduce more
stringent deadlines.
Conclusion
8.7 We are grateful to the Minister for this information
on where matters stand on this proposal, particularly in regard
to the improved timetable in the text to be sent to the European
Parliament. We have no further questions to ask on this matter
and clear the document.
8.8 However we remind the Minister that the draft
Regulation remains under scrutiny and that we await her response,
in due course, on the outstanding issues relating to it.
35 (27107) 15380/05 ADDs 1 & 2: see headnote. Note
that the documents 15381/05 ADDs 1 & 2 are the same as 15380/05
ADDs 1 & 2. Back
36
See headnote. Back
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