European Commission

Taxation and Customs Union

My Powerpoint Presentation

Changing role of Customs in the International supply chain

Wil van Heeswijk Unit B2 Risk management and Security

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INDEX

I. Changing role of Customs

II. Update on EU Regulations

III. Role of Technology

IV. Conclusion

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Role of Customs – Objectives

Traditionally responsible for

collection of duties and taxes

Broadened to:

Emphasis on protection of society

Security of the supply chain

Trade facilitation

NO WMD ?NO WMD ?

ANYTHING TO

DECLARE ?

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Roles and Responsibilities

Security is Central policy priority for customs in the European Union

Customs are the primary national authorities that ensure the control of all goods entering and leaving the EU customs territory

DG TAXUD is competent for all customs areas that are

exclusive EU competence ( former 1st pillar)

Customs is now a service provider with a global mission to protect society and its citizens while on the other hand facilitating legitimate trade to faster and more streamlined control of merchandise

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Multi layered Risk management approach

Information sharing (C2C & B2C)

Partnership Trade – Customs (e.g AEO C-TPAT)

Enhanced use of modern technologies

International cooperation

Role of Customs - Means

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Update on The EU Legislation

Amendments to the Community Customs Code Regulation 648/2005 and ist implementing provisions Regulation 1875/2006)

4 main elements :

1. requiring trade to provide customs authorities with information on goods prior to arrival and exit from the European Union (Full implementation as of 01 January 2011) .

2. uniform Community risk-selection criteria for Security and Safety Risk Analysis based controls, adopted in April 2009

3. Recognition of the AEO concept, providing reliable traders with trade facilitation measures (implemented 1 January 2008)

4. Community Customs Risk Management Framework (CRMF)

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Advance electronic data received from the business community

Continuous electronic based risk assessment of supply chain data at all points of entry based on the common risk criteria (security risk rules)

Supported by application of appropriate tools, information channels and technology/control equipment

Deployment of resources to areas of highest risks

Assessing and evaluating the effectiveness at EU level

Objective: to target, identify and mitigate risks posing threats to security and safety of the EU prior to arrival of goods and to facilitate legitimate trade

by avoiding unnecessary controls at external border

EU CRMF - Multilayered risk management approach

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AEO context – securing the supply chain:

Risk management is as much to target high risks as to avoid unnecessary controls of the legitimate trade

a major component of the assessment and management of risk – reduced risk

Objective: Mutual recognition with trading partners to maximise benefits to legitimate businesses and the security of the international supply chain

CRMF - Multilayered risk management approach

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EC AEO - statistics

Applications and certificates:

- 2008 the first year of implementation:

Applications 1850; Certificates 565;

- Total (as of 20-03-2011):

Applications 7500 Certificates 5000

Applications received and certificates issued inAll 27 Member States.

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CRMS provides for secure electronic environment:

Communication network linking all major points of entry (airports, seaports, land frontier) and all 27 national risk analysis centres

Communication between the Commission and Member States and among the Member States

Exchange of risk related information

Implementation of the Priority Control Areas

CRMF – Customs risk management system (CRMS)

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Use of modern Technology - Policy and Approach

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The role of technologyThe role of technology

Technologies are essential tools for border and supply chain security - from a customs point of view, the following areas are of particular interest:

Techniques for advanced and high speed data analysis

Techniques for ensuring container integrity (e.g. E-seals, Container Security Device (CSD) and smart containers)

Techniques for supervision and monitoring maritime and air containertransport (tracking/tracing)

Detection and radiation equipment

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100% scanning does not guarantee 100% security

Does not address biological and chemicals threats

Does not eliminate the possibility of tampering with cargo after the scan was performed.

Focused on one transport mode only

Creates additional burden for trade

No adequate technology is available

Risk of diverting scarce resources

EU CONCERNS TOWARDS 100 % SCANNING AT EXPORT

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Use of modern Technology - Policy and Approach

Supply chain Security is central policy priority for EU customs

Modern technology is one of the cornerstones to enable Customs to adopt modern risk management working methods

EU advocates comprehensive and effective multi layered risk management approach using a range of methods and technologies to focus on the risk associated with specific consignments

Results in increased freight screening, reduction ofphysical inspections and a better deployment of sources to risk

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Use of modern Technology - Policy and Approach

Customs administrations are encouraged to take advantage of emerging technologies to enhance security in the supply chain.

NII and radiation detection equipment is necessary to inspect high-risk containers quickly without disrupting the flow of legitimate trade

Customs community should monitor R&D of technologies and innovations and monitor the benefits customs can extract from its usage

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Use of modern Technology - Policy and Approach

EU detection technology expert group created under Customs 2013 programme.

Provide a platform for information sharing between customs technology experts

Explore and define the needs for new and improved tools or equipment

Work started in January 2011

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Main drivers EU Policy on Supply chain Security

Pre arrival and pre departure information

Uniform Community risk-selection criteria for Security and Safety risk analysis based controls

Authorized Economic Operator

Enhanced use of technology

The EU and its 27 Member States are committed to implement the global standard set by the WCO SAFE Framework and its end-to-end supply chain security concept.

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Supply Chain Security

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Thank you for your attention!

Questions?

DG TAXUD

Unit B.2 Risk Management and Security

Wilhelmus.van-heeswijk@ec.europa.eu