Select Committee on European Scrutiny Twenty-Fifth Report


14 Customs

(27107)

15380/05

+ ADDs 1-2

COM(05) 608

Draft Regulation laying down the Community Customs Code (Modernised Customs Code) — Implementing the Community Lisbon programme

Legal baseArticles 26, 95, 133 and 135 EC; co-decision; QMV
DepartmentRevenue and Customs
Basis of considerationMinister's letter of 4 June 2007
Previous Committee ReportHC 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 Council25 June 2007
Committee's assessmentPolitically important
Committee's decisionCleared

Background

14.1 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. This draft Regulation 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.

14.2 We have considered this document a number of times and on the last occasion, in February 2007, we noted the then position in relation to Centralised Clearance (enabling import duties to be handled where the trader is established in the Community), criminal penalties and comitology and said we wished to see a further report on developments before considering the document again.[36] (We have also considered in parallel a related draft Decision on the introduction of a paperless environment for customs and trade, e-Customs. We cleared this document in March 2007.)[37]

The Minister's letter

14.3 The Financial Secretary to the Treasury (John Healey) writes now to:

  • remind us that it will not be possible to refine the original implementation costs until preparatory work is completed;
  • report that, in relation to Centralised Collection, workable solutions to national taxes and statistical issues are emerging and the proposal on division of collection costs will benefit the UK as the total amount received by the Government will increase;
  • report that the comitology issue has been solved to the Government's satisfaction. An agreed limitation will apply to the use of the regulatory with scrutiny procedure rather than the regulatory procedure alone;[38]
  • comment that the Commission's proposed guidelines and explanatory notes will not be legally binding and that earlier versions have been useful, have not caused serious problems and are a useful insight into the Commission's interpretation of legislation; and
  • tell us that technical discussions in the Customs Union Working Group have been completed and that the German Presidency is working towards a common position for the Competitiveness Council of 25 June 2007.

Conclusion

14.4 We are grateful to the Minister for this latest report. We have no further questions and clear the document.


36   See headnote. Back

37   (27108) 15381/05 + ADDS 1-2: see HC 41-xv (2006-07), para 8 (21 March 2007). Back

38   Comitology is the system of committees which oversees the exercise by the Commission of legislative powers delegated to it by the Council and the European Parliament. Comitology committees are made up of representatives of the Member States and chaired by the Commission. There are three types of procedure (advisory, management and regulatory), an important difference between which is the degree of involvement and power of Member States' representatives. Regulatory with Scrutiny, introduced in July 2006, gives a scrutiny role to the European Parliament in most applications of comitology. Back


 
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Prepared 25 June 2007