facilitation of customs

Session 1. Facilitation of customs declaration compliance

Ana Arévalo, Barcelona Port Authority

B2MOS MID-TERM CONFERENCE

Valencia, 31 October 2014

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Initiatives in this session

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SESSION 1. FACILITATION OF CUSTOMS DECLARATION COMPLIANCE

Initiative 1. Trade facilitation with ultra-peripheral regions

Initiative 3. Improvement of customs and Port control efficiency in trade flows with EU Neighboring countries

Initiative 11. Facilitation of Customs inspections procedures in the port area

Main problems addressed

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Trade flows between EU member states and ultra-peripheral regions need to solve the

administrative burden linked to customs procedures.

Trade flows between EU and neighboring countries need to improve the customs and inspection procedures in all the import-export process.

Customs physical procedures in the port’s areas need to be improve in time savings and ensuring the full traceability of the inspection process.

Almost 2 million export Customs declarations to the Canary Islands will not need to bepresented anymore. Additionally, these initiative prototypes will demonstrate that doublemanual entry of data in origin and destination systems will be avoided and sanction risk willdecrease with the use of these prototypes.

Main benefits

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MAIN BENEFITS:

Improve customs and phyto-sanitary inspection procedures in the trade flows between EU andneighboring countries will represent time savings for customs agents and drivers and costsavings for clients. Thus will positively impact in the reliability and quality of the Short SeaShipping services.

Using mobile technologies in customs physical inspections will allow ensuring the full traceability of the inspection process and reducing process time (time to execute a process activity) and lead time (time elapsed between the initiation and execution of a process).

Initiative 1. Trade facilitation with ultra-peripheral regions

Miguel Llop – Valenciaport Foundation


Valencia, 30-31 October 2014

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Current situation

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Decreasing the administrative burden linked to Customs procedures for trade flows

between Italy, Spain and other member states and ultra-peripheral regions such as

the Canary Islands, Ceuta and Melilla is a highly demanded measure by most business

stakeholders involved in this traffic.

Territory where Community rules for VAT apply

Territory where Community rules for VAT do not apply

Forwarding SAD & T2LF

Departure manifest

ENSArrival

Manifest / SDTS

Introduction SAD & T2LF

Canary Islands are not covered by the VAT directive although they are in the same EU customs territory, so customs authorities together with the Canaries Tax Agency need to make the mandatory controls in the forwarding and introduction of goods.

Trade facilitation measures between the Spanish Peninsula and theCanary Islands

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Current situation

The Spanish Tax Agency aware of the additional difficulties in this ultra-periphery

region signed an agreement in 2005 with the Canaries Tax Agency to constitute a

Customs Single Window (VEXCAN) for both agencies.

On February 2014, they announced the introduction of measures to simplify the

formalities linked to e-commerce and freight exchanges. The particular measures

presented in Fall 2014 to simplify procedures being introduced are:

The exemption of lodging the SAD for forwarding freight exchanges of less

than 3,000€ value and in those shipments exchanged where there is not any

transfer in the ownership of goods: The use of a commercial invoice with the

mention T2LF will be used instead of the forwarding SAD and when the

introduction SAD is presented a destination a TVA exemption certificate will

be available in the customs website.

The exemption of lodging the SAD for forwarding goods from Canary Islands

not only for shipments to Spain but to the rest of Europe, jointly with the

possibility to present a T2LF document through the e-T2L system.

The possibility that a simplified SAD for introduction of goods is used by

citizens and SMEs; and

The possibility that a seller or its customs broker presents the SAD for

introduction of goods, paying all the taxes, minimizing the additional costs of

the buyer when acquiring the goods.

• Avoid manual entry of data in the systems

• Take away the risk of sanctions

• Improve the invoicing process to the customers as the port fees are calculated correctly

• Improves business management

• Provides a new dimension of knowledge

• Application of the exemptions and simplifications introduced by Customsand Tax Agencies

Objective of the initiative

OBJECTIVES:

Design new processes to automate the documentary customs obligations with ultra-peripheral regions by sharing information among different business stakeholders, PCS and customs systems to decrease the quantity of formalities and declarations, the data to fill in, the time to compile the data, the errors introduced in the documents submitted and avoid to submit the same information twice.

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MAIN BENEFITS:

PROTOTYPE 1. Customs@Stream by Contenosa

Prototype and pilot new shipping carrier information systems to improve management documentation processes required by the customs authorities for shipments between the Spanish peninsula and the Canary Islands.

PROTOTYPE 2. Paperless clearance controls at departure for containers included in facilitation trade measures to Canary Islands

To create the proper environment and knowledge to pilot the introduction of the simplification of the exemption of presenting and forwarding SAD for the freight movements from the Spanish peninsula and the Canary Islands.

PROTOTYPE 3. Trade facilitation with ultra-peripheral regions

The initiative, for the partner Autorità Portuale Livorno is focused on studying the current situation in Italy and offering a view on the problem of transit with ultra-peripheral regions. The initiative will also allow Autorità Portuale Livorno to do an on field analysis with Port operators and economic operators of what seems to be an obstacle to trade between member states within EU borders.

Prototypes included in the initiative

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Example: Preparation and presentation of the outbound and inbound sea declaration process

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Outbound sea declaration process

Inbound sea declaration process

Partners participating in the initiative

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Initiative 3. Improvement of customs and Port control efficiency in trade flows with EU Neighbouring countries Mònica Rivera – on behalf of Barcelona Port Authority



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Current situation

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Initiative 2.3 aims to analyze the trade flows of freight between EU countries (Italy,

Slovenia, Spain) with neighboring countries (Morocco and Middle East Countries).

Different commercial maritime services have been studied in order to obtain common

trends and conclusions to establish global solutions. The three prototypes that are

going to be developed resulted from this analysis.

Figure 1. Three commercial maritime lines analysed

Current situation

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Port of

Barcelona

Port of

Koper(Intereuropa)

Ports

Middle East

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Analysis Analysis

BIP, Customs and others

3 linesPort of

Livorno

Port of

Tanger Med

Ro–ro cargo

Figure 2. Tipology of the three lines under study

Collaborative and efficient approach among different actors working in thistype of traffic.

Time and cost savings for customers (customs agents , hauliers, finalclients….)

Clarify the procedures for the issuance of the customs declaration.

Reducing hard copy documentation and reducing needed time toprepare/handle requested documentation.

Consolidate the reliability and quality of the SSS.


OBJECTIVES:

The initiative main goal is the improvement of customs and port control efficiency in trade flowswith EU neighboring countries. The specific objectives are: Analyse the customs procedures limitations related to customs process in all the supply chain

of the import-export;

Analyse the phyto-sanitary inspection procedures in force and possible proceduresimplifications.

Determine the process that includes all necessary procedures to declare, release and deliverthe goods from the arrival and departure point in a simple basis form as referring customs andphyto-sanitary procedures.

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MAIN BENEFITS:

PROTOTYPE 1. Prototype 1. Port Authority of Livorno (APL)

APL has analysed the loading-unloading process is the admission of different kind of cargo flows(EU cargo coming from Barcelona and going to Livorno plus cargo coming from Tanger to Livorno)and of passengers (both schengen and non schengen passengers). The prototype will be orientedto improve the efficiency for these trades, using electronic handheld to monitor security andtraceability of travelling cargos.

PROTOTYPE 2. Prototype 2. Intereuropa (IE)

IE has analysed the functional and process-oriented overview of cooled cargo flows in short seatransport with neighboring countries; basic knowledge on maritime freight transport, portoperations, phyto-sanitary controls and customs clearance procedures valid and in use in Slovenianport community for business through the Port of Koper. The prototype is focused on thedevelopment of a platform based on standard Electronic Data Interchange (EDI).

PROTOTYPE 3. Prototype 3. Port Authority of Barcelona (APB)

APB has analysed the import and export procedures in the commercial line between Barcelona andTanger. This analysis has identified three technical solutions allowing to quantify time andmonetary savings. The prototype will be the development of one of these solutions.


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Partners participating in the initiative

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1 public administration1 IT company2 port authorities 1 logistic operator

Initiative 11. Facilitation of Customs inspections procedures in the port areaCatalina Grimalt



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Current situation

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In many occasions in Barcelona, one physical inspection may block more containers or trucks or goods declared in the same Single Administrative Document.

Once the inspection is done the clearance is needed as soon as possible. Now the SAD is released in hours , an important amount is released the next day.

Customs select one container or a truck (in case of a roll-on roll-off traffic) to inspect from the list of elements declared but the rest of elements are held until Customs clearance of the chosen one has been obtained. When the inspection is finished, the customs broker must resend the scanned report of dilligence of the inspection or even present it at Customs premises to release the rest of the equipment.

An additional problem is posed by the fact that several inspection bodies need to control and inspect shipments unloaded from a particular vessel and they each have their own rules and procedures and carry out their work separately from the rest.

Current situation

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Focus process:

Current situation

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General process flow:

Current situation

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In the UK, a number of agencies currently operating Destin8 have specific examination and local hold functions which are interfaced with terminal operations systems thus providing consignment status information to terminal operators as well as the wider community.

• Reduce process time (time to execute a process activity) and lead time (time elapsed between the initiation and execution of a process).

• Control and mesure the activity of the process

• Unique data set

• On-line data save

• Access to the process information (schedule, procedures…)


OBJECTIVES:

Reduce the time required for Customs physical inspections

Ensure full traceability of the inspection process

Use the mobile technologies

Improve the coordination of the different authorities and bodies inspecting the cargo

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MAIN BENEFITS:

It is intended to introduce a prototype for new functionality that will be embedded in Destin8through which Customs whereby UK Borderforce and other government agencies can easilymanage and share presentation of consignments for inspection and other types of detentions,thus improving status visibility through a single enquiry function.

In addition to these enforcement specific changes we have also included a number of functionalchanges that will sustain and ease procedures for transhipments and transit cargo byautomatically approving cargo being transferred between approved and non-approved vesselswithout the need for Customs intervention.


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OBJECTIVES:

Methodology

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The next figure explains the methodology to analyse the reduction of process times for a terminal inspection.

FINISH SEND START

RELEASED GOODS AFTER INSPECTIONS IN A KIOSK AND ATTACH DUA IN A TABLET APP


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• DES-166 - B2MoS A2 i11 - Prototype RTR\RTD transaction -improved auto-clearance for ARSS transhipments.

– Improve the control of transhipments in non authorized vessels

• DES-5889 - B2MoS A2 i11 - Prototype LHT - new Trading Standards hold function

– Now this function is hold by customs

• DES-5948 - B2MoS A2 i11 - Prototype HMRC Hold/Exam Improvements and Trade Visbility

– A single screen for applying and removing holds/exams,

identification of officer and/or agency applying the hold/exam

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• DES-6077 - B2MoS A2 i11 - Extract COO and CN data from Import CUSDEC

– To that end it is proposed we develop new prototype

functionality to extract the Country of Origin and CN codes from

the import CUSDEC declarations being submitted by the

agents via a freight software application. It is estimated that

early provision of this data will reduce Port Health detains on

non-target consignments by some 50000 units per annum at

Felixstowe alone.


Prototyped solution:

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Home: public view without login. There is logistic’s information, some real-time alerts and direct

access to Terminal, PIF Area, Scanner and ALL


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Main Terminal: once an agent is logged on each section (terminal here) he can access to all hispositionings, timetables, procedures, useful URLs and the PIF’s screen


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PIF Screen: from the PIF Area one can access to the public data available via web that is embedded

in the app


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Positioning orders: a distributor page shows the positioning orders of “Aduanas Pujol Rubió” sorted

desc. by date. The positionings can be filtered by date and state and contain only partial and primary

information


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Details: this screen contains the specific data of a positioning and there it is possible to, take a photo,

add it as an attachment and send it to the office by mail

Q&A

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Conclusions of the session

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Thanks for your attention!www.b2mos.eu · [email protected]

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http://www.b2mos.eu

facilitation of customs

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