# EUR-Lex - 52013PC0796 - EN

*|*

# 52013PC0796

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission to ensure the correct application of the law on customs and agricultural matters /* COM/2013/0796 final - 2013/0410 (COD) */**

			*

			*

EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

1.1.        General context

Action against breach of customs
legislation is integral to the protection of the Union’s financial interests
and to the development of customs cooperation.

Customs legislation may be breached by
various practices such as misdescription of imported goods so as to take
advantage of lower duties, or by misdeclaration of the origin of the goods in
order to circumvent anti-dumping levies and/or to avoid quantitative import
limitation quotas, or by misuse of the transit system, when the goods
effectively imported are declared as being in transit in order to evade the
applicable customs duties.

To combat these breaches of customs legislation
extensive exchange of information is required in the framework of cooperation both
between Member States and between the Member States and the Commission. While
such cooperation has already been successful, a number of areas have been
identified where further action is necessary, mainly as regards the functioning
of the antifraud system in the customs field and the improvement of customs
risk management at national and Union levels[1].

1.2.        Legal context

The main legal instruments applying to
breaches of customs legislation in this context are Regulation (EC) No 515/97
of 13 March 1997 on mutual assistance between the administrative authorities of
the Member States and cooperation between the latter and the Commission to
ensure the correct application of the law on customs and agricultural matters,
and Council Decision 2009/917/JHA of 30 November 2009 on the use of information
technology for customs purposes.

Regulation (EC) No 515/97 governs issues relating
to the customs union which is an area of the exclusive EU competence according
to Article 3(1)(a) of the Treaty on the Functioning of the European Union
(TFEU).

Council Decision 2009/917/JHA addresses
matters relating to the area of freedom, security and justice which according
to Article 4(2)(j) of TFEU is an area of shared competence between the Union and
the Member States.

On this basis, the Commission created an IT
structure, the Anti-Fraud Information System (AFIS), for the implementation of the
relevant legislation, which includes databases for customs issues and for
issues related to cooperation in the law enforcement field.

1.3.        Specific issues

1.3.1.     The
need to address loopholes in the existing systems for the detection of
customs-related fraud

There are various duties, taxes, rates and
quantitative limits which have to be respected by traders operating
legitimately in the EU. The financial gains to be had from avoidance of these
charges constitute an incentive to commit fraud such as misdeclaration of
origin, misdescription of goods and misuse of the transit system. This risk is
even greater since the existing systems for the detection of customs fraud are
still not sufficiently developed and the means of checking the true origin of
imported goods are currently limited. In particular, it is not possible for
customs officers to verify whether the declared origin of goods is consistent
with the route followed by the container transporting the goods. The
information on container movements (Container Status Messages - CSMs) is
considered crucial for detecting cases of misdeclaration of origin. The current
system for the detection of misdescription of goods is also unsatisfactory. In
this context, the identification of suspicious cases by customs authorities is
based on notifications that may be received from various sources (for example
other customs authorities or economic operators) and risk analysis based on
limited data. The main drawback of this procedure is that the controls are
still not sufficiently targeted as they are based on analyses of limited data.
Similarly, gaps exist in the system for the detection of misuse of the transit
system. The procedure currently used for the verification of goods in transit
consists of document checking and physical controls. However, the effectiveness
and efficiency of these methods are limited by the available resources and by
limitations in the scope and quality of data available for automated risk
analysis and targeting of controls. To effectively target instances of
misdeclaration of origin, misdescription of goods and misuse of the transit
system, it is appropriate to use automated and scientific risk analysis methods
for identification of suspect shipments. The Commission believes that these
methods can be more effectively and efficiently implemented when supported by
systematic availability of high-quality and timely data on CSMs, imports,
exports and transit at national and EU levels.

1.3.2.     The need to enhance customs
risk management and supply chain security at national and EU levels

The need to establish an equivalent level of
customs controls for goods brought into/ taken out of the customs territory of
the Union is recognised, alongside the need to introduce a Union-wide risk
management framework to support a common approach. In that context, Regulation
(EC) No 648/2005 amending the Community Customs Code provides for the common
risk management framework which has been implemented by the Commission and the
Member States. In its Communication on Customs Risk Management and Security of
the Supply Chain[2], the Commission identified a number of strategic implementation
challenges. Of particular importance are the difficulties caused by gaps in the
availability and quality of data for pre-arrival screening for safety and
security risks. The Communication emphasises that 'provision
by traders of quality data and its availability to the authorities involved in
risk management at the appropriate level is a major priority'. In this context, the collection of CSMs and their integration in
pre-arrival risk analysis can make a vital contribution to enhancing the supply
chain security in general and to the work of the Commission and the Member
States in managing the risks identified in Article 4 (25) of the Community
Customs Code, including the threats posed to the Union’s security and safety,
to public health, to the environment and to consumers.

1.3.3.     The need to address delays
in OLAF investigations

As a result of
the recent introduction of e-Customs, the documents supporting import and
export declarations (invoice, certificate of origin, etc.) are kept by the
economic operators and no longer by the customs administrations. Importantly,
these documents are often necessary for OLAF to conduct its investigations. The
current procedure used by OLAF to obtain those documents is to send a request
to the Member States. However, such a system is inefficient because, as
previously mentioned, the Member States are no longer in possession of relevant
information and thus they have to request it from the economic operators before
forwarding it to the Commission. This causes a loss of time before the
documents become available to OLAF. There is currently no provision in the
legal framework which could be used to accelerate procedures relating to OLAF
investigations.

1.3.4.     The
need for clarification on the possibility to
restrict visibility of data

The AFIS IT system is currently underused because Member States are
not able to select the potential users of the information they insert in the
system. Consequently, protection of the Union's financial interests and customs
cooperation are sub-optimal and unnecessarily obstructed. There is thus a need for technical clarification that data inserted
by the owners can be restricted to particular users. A provision in the
Regulation clearly enabling data owners to restrict visibility to specific
users would considerably increase the exchange of information and improve
further the possibility to prevent, detect and investigate customs-related
fraud. In addition, restricted visibility protects confidentiality and
therefore improves the level of confidence in the system. The ability to shield
sensitive data would lead to increased willingness to share information within
the AFIS system. Moreover the restricted visibility feature would enable the
Commission to improve data management, making it possible to store, update and
search for information thus far only exchanged.

1.3.5.     The
need for streamlined data protection supervision

In line with the current legislation, two
different bodies (i.e. European Data Protection Supervisor – EDPS and Customs
Joint Supervisory Authority – CJSA) carry out audits. There are cases where a lack
of coordination between these bodies leads to diverging recommendations causing
inefficient use of resources in the Commission and Member States. The
implementation process is prolonged because it is necessary to accommodate the recommendations
of both the EDPS and CJSA. This causes inefficiency and generates additional
costs in terms of time and resources. Carrying out the recommendations can
continue even one year after the audit took place. Closer collaboration between
the two supervisory bodies is therefore necessary.

Another issue in the area of data
protection which needs to be further clarified is the responsibility for the
technical systems established by the Commission on the basis of Regulation (EC)
No 515/97. Currently, the Commission is providing Member States with technical
assistance, training, communication activity and other operational support by
means of technical systems. However, the responsibility for data protection supervision
with regard to those technical systems has not been specifically assigned. For
this reason, the proposal clarifies the EDPS' competence.

1.3.6.     The
need for clarification on the admissibility of evidence collected under mutual assistance

Currently, national prosecutors are
reluctant to use documents obtained via mutual assistance channels as evidence
in criminal proceedings because the provisions of Regulation (EC) No 515/97 are
not sufficiently clear on such a possibility. This inevitably causes delays in
national criminal proceedings or may even result in the dismissal of a case due
to time barring. Importantly, it also undermines the principle of legal
certainty, given that relevant provisions of Regulation (EC) No 515/97 are subject
to differing interpretations. It appears necessary to clarify that the evidence
obtained via mutual assistance may be used by prosecutors in the national criminal
proceedings. The proposal does not oblige national courts to accept such
evidence automatically as it still has to satisfy the national procedural
rules.

1.3.7.     The European Public
Prosecutor’s Office

The Commission recently proposed the
setting up of the European Public Prosecutor’s Office[3]. Given the associated changes
in the investigation and prosecution of crimes affecting the Union’s financial
interests, the Commission should assess the need for revision of the current Regulation
once the European Public Prosecutor’s Office is established. In that event, all
national authorities of the Member States and all institutions, bodies, offices
and agencies of the Union must immediately inform the European Public
Prosecutor’s Office of any conduct which might constitute an offence within its
competence. In accordance with the draft Regulation establishing the European
Public Prosecutor’s Office, the latter will have access to the databases
operated by the Commission or the Member States under this Regulation.

1.4.        Proposed solution

In order to address the above shortcomings,
it appears necessary to amend Regulation (EC) No 515/97.

2.           RESULTS OF CONSULTATIONS WITH THE
INTERESTED PARTIES AND IMPACT ASSESSMENTS

2.1.        Consultations with
stakeholders

The Commission has consulted stakeholders
on a number of occasions and has taken into account the comments received.

2.1.1.     Member States’ customs authorities

Member States were consulted by means of a questionnaire
in February 2012. Member States expressed their needs for access to customs-related
data (import, transit and export) regarding transactions in another Member
State and the perceived usefulness of information on container movements. They
also provided their views on the best way of collecting, storing and analysing
such information.

In May 2012, the Commission organised a conference
to gather feedback and suggestions from Member State experts on the overall
functioning of the Anti-Fraud Information System (AFIS), as well as on the
implementation of and prospects for Regulation (EC) No 515/97. The conference
consisted of a plenary session and four specific workshops on legal issues,
Joint Customs Operations, applications, and technical and IT security aspects
of the current status and future evolution of AFIS.

On a number of occasions, the Commission
consulted the ‘Mutual Assistance Committee’, established on the basis of
Article 43 of Regulation (EC) No 515/97, consisting of the representatives
of the Member States responsible for mutual administrative assistance matters.
Recent discussions took place during the meetings on 24 May 2012 and on 25 September
2012.

2.1.2.     Shipping companies - World
Shipping Council

A major consultation of the shipping
industry took place on 15 March 2012, with participation of private sector companies
and the World Shipping Council (WSC)[4].
The aim was to inform carriers about the proposed initiative and to obtain
their feedback on the envisaged provision of CSMs to the Commission. The
Commission also proposed a pilot exercise in this area. Discussion focused on the
type of data that container carriers must provide to the Commission and how
this should be done, as well as the methods of transmission, etc. The
Commission did its utmost to involve the industry in the preparations, so as to
ensure easy implementation of its proposal.

In addition, several meetings were held between
the Commission and representatives of the WSC.

Based on these consultations, the type of
information to be submitted by the companies was established. The most cost-effective
method of transmitting this information is through a ‘global dump’, i.e. a
daily copy of all container movements. Alternatively, companies may opt for
selective submission of data. Remaining modalities will need to be further
specified.

The shipping industry has underlined the
need to ensure that data provided by the companies should be transmitted only
once. The Commission should then be responsible for communicating these data to
international and/or European institutions, as well as Member States, for the
purposes for which the database is established.

2.1.3.     Data Protection Supervisors

In the course of the preparations for this
proposal, meetings with the EDPS and CJSA were organised in May and June 2012.

2.2.        Impact assessment

The Commission carried out an impact
assessment of policy options, taking into account the consultations of the
interested parties. The conclusion was that, amongst other things, the
solutions sought by the main amendments of the Regulation would comprise the
following:

·
Create conditions for improved fighting of
customs fraud related to misdeclaration of goods origin through the submission
of Container Status Messages by the deep sea carriers to the Commission. The
recommended submission method is global reporting (‘global dump’) involving
near zero costs. An alternative submission method is also possible.

·
Create conditions for improved fighting of
customs fraud related to misdescription of goods through the
creation of a central database for import and export data. A legal basis for the supply of such data would need to be created.
This measure will not impose any additional costs on Member States because the
information that is required already exists in electronic format, namely in
respective databases operated by the Commission. Therefore, only consent of the
Member States to copy these data is required.

·
Create conditions for improved fighting of
customs fraud related to misuse of the transit system through the
creation of a centralised repository for transit-related data.

·
Speed up OLAF investigations by enabling direct access to documents supporting import and export
declarations. Expected costs for private sector operators are near zero, since
the obligation already exists (businesses are required by national law and also
the Customs Code to keep the relevant documentation). Importantly, the expected
volume of requests addressed to economic operators that would be necessary for
OLAF investigations is expected to be very small (a few cases per year).

The Impact Assessment concluded that the
proposed options are in line with the fundamental rights. In this context it is
important to note that the envisaged CSM database would contain no personal
data. Databases on import, export and transit would contain personal data and
protection of this data is to be monitored by the EDPS according to already
applicable standards laid down in Regulation (EC) No 515/97.

3.           LEGAL ELEMENTS OF THE PROPOSAL

3.1.        The legal basis

The proposal to amend Regulation (EC) No 515/97
should be based on Articles 33 and 325 of the Treaty on
the Functioning of the European Union (TFEU).

Article 33 TFEU provides the basis to cover
most of the scope of exchanges of information between customs authorities and
between the customs authorities and the Commission for the purpose of customs
cooperation. Article 325 TFEU sets out the EU’s competence to enact the
necessary measures in the fields of prevention of and fight against fraud and
any other illegal activities affecting the Union’s financial interests which ‘act
as a deterrent’. Article 325(4) and Article 33 of the TFEU provide for the legislative
procedure to adopt the necessary measures with a view to affording effective
and equivalent protection.

3.2.        Subsidiarity,
proportionality and respect for fundamental rights

3.2.1.     Subsidiarity and
proportionality

The need for EU-level legislation on mutual
administrative assistance and customs cooperation stems from the following
facts:

·
The need for EU legislation on mutual
administrative assistance and customs cooperation has already been recognised
by the European legislator with the adoption of Regulation (EC) No 515/97 and
Council Decision 2009/917/JHA.

·
It is acknowledged that many customs risks manifest
themselves on a transnational basis. Illicit supply chains can quickly adapt to
improvements in the risk management environment at a given point of entry and
focus on other points with lower levels of protection. Action at EU level is
necessary to ensure an equivalent level of protection against customs risks at
all points of the external borders, as envisaged in Regulation (EC) No 648/2005.

·
Given that trade is global, Member States alone
cannot efficiently observe, detect and mitigate risks entailing breach of
customs legislation and other customs-related risks; complementary action at EU
level would substantially facilitate the work of Member States in pursuing
investigations, especially in cases where cross-border transfer of goods is
involved. Organising activities in the area of customs cooperation at EU level
would create significant added value, with a coherent approach and coordination
of the activities.

·
The EU has exclusive competence in the areas of fraud
prevention and the Customs Union.

·
It is clear from consultation with trade
stakeholders that a single central submission of CSMs will have lower costs
than submission only to the Member State through which the container enters or
leaves the customs territory of the Union.

·
The EU is best placed to drive such collective
action because it already possesses the necessary experience, systems and
expertise to guarantee the rapid and cost-efficient gathering, communication
and sharing of data.

·
National customs authorities alone cannot
effectively share information and conduct a large-scale fight against breach of
customs legislation and other customs risks at reasonable cost. Systematic collection
of the data required to analyse customs risks which pose a threat to the EU and
its Member States would constitute a disproportionate effort for 28 individual
Member States and can be achieved more effectively and efficiently by action at
EU level.

It can thus be concluded that EU action to
collect, store, process, use and make available to the Member States the data
identified in this Regulation in pursuit of the fight against fraud and other
customs risks is necessary and proportionate to the nature and scale of the
risks concerned, and satisfies the principle of subsidiarity.

3.2.2.     Relation with fundamental
rights

This initiative concerns in particular the
fundamental right to protection of personal data. This right is enshrined in
Article 8 of the Charter of Fundamental Rights and Article 16 TFEU, based on
Directive 95/46/EC, as well as in Article 8 of the ECHR.

The respect of personal data protection
rights has already been duly considered in Regulation (EC) No 515/97 and
Council Decision 2009/917/JHA through rigorous rules as regards the content
coverage of data, data preservation and data protection supervision. In this
context, it is important to note that the envisaged CSM database would contain
no personal data. Databases on import, export and transit would contain
personal data and protection of those data is to be ensured by the EDPS
according to already applicable standards laid down in Regulation (EC) No 515/97.

3.2.3.     Value added

The proposed action at EU level would
significantly improve the detection, investigation and prevention of
customs-related fraud, by increasing the exchange of information and the
available evidence, and improving the functioning of the established system,
thus rendering the action more efficient and effective. It would also
significantly enhance the capacity of the EU to identify and mitigate the risks
identified in Article 4 (25) of the Community Customs Code, including the
threats posed to the Union’s security and safety, to public health, to the
environment and to consumers. Consequently, the envisaged action will
strengthen the protection of the Union’s financial interests, improve risk
management, and further promote customs cooperation.

To guarantee that full value can be
delivered, the Commission will ensure that the governance and administration of
the future databases and information concerning CSMs, transit, import and
export is formally shared between its services for the purposes indicated in
the Regulation. It will ensure that the databases are available for seamless
incorporation in risk management activities of the Commission and the Member
States, including systematic real-time pre-arrival and pre-departure risk
analysis. An appropriate inter-service governance structure will be provided to
streamline operational management and the allocation of responsibilities for
data protection and security.

3.3.        Choice of instruments

The instrument proposed is a Regulation,
corresponding to the instrument being amended.

3.4.        Specific provisions

3.4.1.     Definitions – Article 2

The definition of the concept of customs
legislation is updated, in order to have the terminology aligned with the
customs field, namely adding references to entry and exit of goods. A
definition of service providers active in the international supply chain in
order to clarify to whom the obligation laid down in Article 18c(1) shall apply.

3.4.2.     Admissibility of evidence –
Article 12

The proposed amendment of Article 12 aims
at removing legal uncertainty that currently exists in relation to the possible
use of information collected through mutual assistance as evidence in national
criminal proceedings.

3.4.3.     Information related to
movements of containers – Article 18a and new Articles 18c, 18d, 18e and 18f

Article 18a of Regulation (EC) No 515/97
provides for the establishment of a directory to collect data on container
movements and to analyse these data. However, the wording of this article does
not oblige the relevant economic operators (i.e. carriers) to supply the
Commission with the information to be inserted in the directory (i.e. Container
Status Messages — CSMs). Consequently, while the Commission has tested the effectiveness
of such a directory and the analysis system is of proven quality, it is limited
in quantity due to insufficient access to necessary data.

The proposed amendments aim to ensure that
the necessary data are provided, by creating an obligation in a new Article 18c
for the relevant service providers to supply the information in question. This
information can substantially contribute to the fight against various types of
customs fraud including misdeclaration of origin, and to the management of
other customs risks identified in Article 4(25) of the Community Customs Code.

Article 18d specifies that for containers
destined to be brought into the customs territory of the Union, the time period
of reporting is delimited by the empty status of the container. In practice,
this means that carriers will have to report the CSMs for containers imported
into the EU from the most recent moment when the container was empty before
being brought into the customs territory of the Union until the moment the
container is again reported empty after leaving the customs territory of the
Union. For containers leaving the customs territory of the Union the time
period of reporting is limited to the moment the container is reported empty
outside the customs territory of the Union. If it is not possible to determine
specific empty container events, carriers may report CSMs according to the following
time periods:

(a)
for containers destined to arrive in the customs
territory of the Union: 3 months prior to arrival in the customs territory of
the Union and 1 month after the arrival in the customs territory of the Union
or when a non-EU location is reached (whichever comes first).

(b)
for containers leaving the customs territory of
the Union: during 3 months after the container has left the customs territory
of the Union.

Without prejudice to the outcome of the ongoing
analysis, it may be envisaged that the main elements of the future delegated
acts would be as follows:

The delegated act envisaged in Article 18f(1)
will set out, inter alia, the exact events for which CSMs will have to be
reported to the Commission. These may include the following: confirmation of
booking, arrival at a loading or unloading facility, departure from a loading
or unloading facility, loading on or unloading from a conveyance, instruction
of stuffing or stripping, confirmation of stuffing or stripping, intra-terminal
movements, terminal gate inspection and sending for heavy repair.

As far as the frequency of reporting is
concerned, each carrier may choose either:

(a)
to submit, on a daily basis, all new CSMs
generated or collected in the carrier’s electronic equipment tracking system within
the previous 24 hours, regardless of whether the CSMs concern containers which are
destined to be brought in/taken out of the customs territory of the Union or
not (‘data dump’); or

(b)
to submit, on a daily basis, CSMs specifically related
to containers (whether laden or not) destined to be brought into/taken out of
the customs territory of the Union, generated or collected in the carrier’s
electronic equipment tracking system within the previous 24 hours.

The minimum data elements of the CSM
messaging will also be determined by means of delegated acts. The message
formats and methods of transmission of the CSMs will be determined by means of
implementing acts.

3.4.4.     Data related to import, export
and transit – new Article 18g

With a view to achieving more targeted
controls and increasing the effectiveness of the fight against customs fraud,
it is proposed to introduce a legal basis for the processing of import and
export data.

With regard to data related to transit, an
administrative arrangement on the Anti-Fraud Transit Information System was put
in place in 2011 between the Commission and the Member States[5]. Under this arrangement OLAF
automatically receives the information on the movement of goods placed in transit.
OLAF analyses these data and provides reports that are regularly shared with
the Member States and the interested Commission services. However, while acknowledging
the Commission’s efforts, several Member States feel that the Commission should
define a clear legal basis for this activity replacing the present arrangement.
The proposal introduces the appropriate legal basis. This does not put any
additional reporting burden on the Member States, as the electronic data are already
circulated and exchanged among Member States in an electronic system operated
by the Commission. The proposal involves replicating the data from the systems
operated by the Commission and analysing these data in order to trace
fraudulent cases and build patterns useful for identifying potential instances
of customs fraud and protecting the financial interests of the European Union.
The proposed database will be available for use by the Commission and the customs
administrations of the Member States. The Commission is the responsible data
controller for this directory.

Article 13(2) of Council Regulation (EEC)
No 2913/92 establishing the Community Customs Code requires that customs
controls (other than spot checks) be based on risk analysis using automated data processing techniques, and provides for the
establishment of a common risk management framework in that context. Article
4(25) defines the risks concerned, and Article 4(26) provides for risk
management activities to include ‘collecting data and information, analysing
and assessing risk, prescribing and taking action and regular monitoring and
review of the process and its outcomes, based on international, Community and
national sources and strategies.’ It is appropriate
therefore to ensure that the data collected can be used in risk management for
all customs risks and to provide for their availability to the relevant
authorities at EU and Member State level for this purpose in appropriate
circumstances.

3.4.5.     Supporting documents – new
Article 18h

In cases where OLAF requires customs-related
supporting documents for the purposes of its investigations, it cannot request
them directly from the economic operators but needs the intermediation of
national authorities. This leads to delays in investigations and, frequently,
to failure of investigations due to time barring. This is particularly
problematic in customs-related cases where the limitation period of three years
applies. The situation has worsened since 1 January 2011 with the introduction
of e-Customs, as the documents supporting import and export declarations (invoice,
certificate of origin, etc.) are no longer kept by the customs administrations
but by the economic operators.

With a view to accelerating investigation
procedures, a new provision is proposed to empower the Commission to obtain
directly from private sector companies, the documents supporting import and
export declarations, for purposes of the investigations based on Regulation (EC)
No 515/97.

3.4.6.     Restricted visibility and
publication of the authorities – Articles 29 and 30

It is expected that introduction of the
possibility to select the potential users of data (restricted visibility) would
significantly increase the use of databases by Member States and consequently
contribute to efficiency. Therefore, it is proposed to amend Article 29 accordingly.
The proposed amendment also includes a more flexible way of publishing the updates
of the lists of the relevant authorities mentioned in Articles 29 and 30.

3.4.7.     Data protection – Articles 18b,
33, 37 and 38

The complex structure of the supervision of
data protection rules results from the dual legal structure of the customs
information system: Regulation (EC) No 515/97, Article 37(3)(a); and Council
Decision 2009/917/JHA, Article 25(2) which reflect the pre-Lisbon structure.
Hence, two separate bodies have been established: CJSA and EDPS ensure that
data protection rules are implemented according to the legislation. However, as
recommendations are applicable to both parts of the IT system, it is clearly
difficult to implement different opinions and recommendations. This creates
redundancies in the use of resources.

To address this problem, the proposal
introduces a provision which aims at simplifying and harmonising the rules for
the supervision of data protection rules applicable to each of the systems. The
objective is to ensure coherence during the supervision process and encourage
the use of common audits, leading to joint reports.

In addition, the proposal clarifies that
the EDPS is responsible for data protection supervision of the technical
systems established by the Commission on the basis of this Regulation.

The proposal also introduces a maximum
retention period of ten years for data stored in the CIS, stipulating additionally
that in cases where personal data are stored for a period exceeding five years,
the EDPS should be informed accordingly.

Finally, in order to safeguard the rules
governing data protection, a specific provision is introduced in Article 38 on
the security of processing.

3.4.8.     Consistency with the Lisbon
Treaty – Article 23(4), Article 25(1), Article 33, Article 38, Article 43 and
Article 43a

In order to ensure increased consistency of
Regulation (EC) No 515/97 with the Treaty on the Functioning of the European
Union, the proposed amendment takes account of the necessary adjustments as
regards granting the Commission delegated powers (Article 290 TFEU) or implementing
powers (Article 291 TFEU).

3.5.        Entry into force

The proposed Article 18c(1) introduces an
obligation for public or private sector operators active in the international
chain to send to the Commission data on container movements. Given that this
provision may conflict with contractual obligations between companies and their
clients relating to non-disclosure and confidentiality, the Article concerning
entry into force provides for an appropriate transitional period, during which
carriers should renegotiate their private law contracts in order to comply with
the amended Regulation.

4.           BUDGETARY IMPLICATION

The budgetary effort concerns mainly the IT
costs to maintain and further develop the existing AFIS system. The costs
related to the implementation of this proposal will be handled within the
framework of the existing forecast in the context of Multiannual Financial
Framework and therefore no additional request for budgetary allocation is
required. The overall costs of the proposal are comparable to those of the
previous period and are considered as a mere continuation of recurrent costs.
The budgetary development related to this proposal is in line with the
Multiannual Financial Framework.

2013/0410 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

amending Regulation (EC) No 515/97 of 13
March 1997 on mutual assistance between the administrative authorities of the
Member States and cooperation between the latter and the Commission to ensure
the correct application of the law on customs and agricultural matters

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Articles 33 and 325 thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

After having consulted the European Data
Protection Supervisor,

After having consulted the Court of
Auditors,

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)       In order to ensure that Regulation
(EC) No 515/97 covers all possible movements of goods in relation to the
customs territory of the Union, it is appropriate to clarify the definition of
customs legislation with regard to the concepts of entry and exit of goods.

(2)       With a view to further
enhancing administrative and criminal procedures for dealing with irregularities,
it is necessary to ensure that evidence obtained through mutual assistance can
be considered as admissible in proceedings before the administrative and
judicial authorities of the Member State of the applicant authority.

(3)       The Commission Communication
on Customs Risk Management and Supply Chain Security COM(2012) 793 recognises
an urgent need to improve the quality and availability of data for use in
pre-arrival risk analysis, in particular for the effective identification and
mitigation of safety and security risks at national and EU levels, within the
Common Risk Management Framework established under Article 13(2) of Council
Regulation (EEC) No 2913/92. The integration of data on container movements in
pre-arrival risk management will greatly improve supply chain visibility and
will significantly enhance the capacity of the EU and the Member States to
target higher-risk consignments for controls, while facilitating the flow of
legitimate trade.

(4)       With a view to increasing clarity,
consistency and transparency, it is necessary to define in more concrete terms
the authorities which should have access to the directories established on the
basis of this Regulation; for that purpose a uniform reference to competent
authorities will be established.

(5)       Data concerning container
movements make it possible to identify fraud and risk trends with regard to
goods that are moved in and out of the customs territory of the Union. Such
data serve to assist in preventing, investigating and prosecuting operations
which are or appear to constitute breaches of customs
legislation, and to assist the competent authorities in
managing customs risks defined in Article 4 point 25 of Regulation (EEC) No
2913/92. In order to collect
and use a set of data as complete as possible, while avoiding potential
negative impacts on small and medium sized enterprises in freight forwarding
sector, it is necessary that public or private sector providers active in the
international supply chain submit to the Commission data concerning container
movements in so far as they collect such data in electronic formats via their
equipment tracking systems or have access to such data.

(6)       The detection of fraud,
identification of risk trends and the implementation of effective risk
management procedures depend significantly on the identification and
cross-analysis of relevant operational data sets. It is necessary therefore to establish,
at European Union level, a directory containing data on import, export and transit
of goods including transit of goods within the Member States and direct export.
For that purpose, Member States should allow systematic replication of data on
import, export and transit of goods from the systems operated by the Commission
and should supply to the Commission data relating to transit of goods within a Member
State and direct export.

(7)       For the implementation of Article
18b, the Commission has created a number of technical systems enabling the
provision of technical assistance, training or communication activity and other
operational activity to the Member States. These technical systems need to be
explicitly referred to in this Regulation and covered by data protection
requirements.

(8)       The introduction of the
e-Customs in 2011, by which documents supporting imports and exports are no
longer kept by the customs administrations but by the economic operators, has
led to delays in the conduct of European Anti-fraud Office (OLAF)
investigations in the customs area, as OLAF needs the intermediation of these
administrations to obtain such documents. Moreover, the 3-year limitation
period applicable to customs documents held by the administration, puts
additional constraints to the successful conduct of investigations. In order to
accelerate the conduct of investigations in the area of customs the Commission
should therefore have the right to request documents supporting import and
export declarations directly from the economic operators concerned. These
economic operators should be obliged to provide the Commission with the
requested documents.

(9)       In order to ensure
confidentiality of the inserted data, provision should be made for limiting
access to inserted data to specific users only.

(10)     In order to ensure up-to-date
information and to secure transparency and information right of data subjects
as enshrined in Regulation (EC) No 45/2001 and Directive 95/46/EC, the
possibility of publishing on the internet updates of the lists of competent
authorities designated by the Member States and the Commission departments to
have access to the Customs Information System (CIS) should be introduced.

(11)     Regulation (EC) No 45/2001
on the protection of individuals with regard to the processing of personal data
by the Community institutions and bodies and on the free movement of such data applies
to the processing of personal data by Union institutions, bodies, offices and
agencies.

(12)     In order to improve
consistency of data protection supervision, the European Data Protection
Supervisor needs to cooperate closely with the Joint Supervisory Authority
established under Council Decision 2009/917 JHA, with a view to achieving coordination
of the audits of the CIS.

(13)     The provisions governing
the storage of data in the CIS frequently result in unjustifiable loss of
information; this is because Member States do not systematically carry out the
yearly reviews due to the administrative burden involved. It is therefore
necessary to simplify the procedure governing the storage of data in the CIS by
removing the obligation to review data annually and by setting maximum retention
period of ten years, corresponding to periods provided for the directories
established on the basis of this Regulation. This period is necessary due to
the long procedures for processing irregularities and because these data are needed
for the conduct of joint customs operations and of investigations. Furthermore,
to safeguard the rules governing data protection, the European Data Protection Supervisor
should be informed about cases where personal data are stored in CIS for a
period exceeding five years.

(14)     In order to further enhance
the possibilities for analysis of fraud and facilitate the conduct of
investigations, data concerning current investigation files stored in the Files
Identification Database (FIDE) should be rendered anonymous, after one year
since the last observation, and retained in a form in which identification of
the data subject is no longer possible.

(15)     Since the objectives of enhancing
customs risk management as defined in Article 4 points 25 and 26, and Article
13(2) of Regulation (EEC) No 2913/92 laying down the Community Customs Code,
and of improving detection, investigation and prevention of customs-related
fraud in the Union cannot be sufficiently achieved by the Member States themselves,
the Union may act in accordance with the principle of subsidiarity as set out
in Article 5 of the Treaty on European Union. In accordance with the principle
of proportionality, as set out in that Article, this Regulation does not go
beyond what is necessary to achieve the stated objectives.

(16)     Public or private service providers
active in the international supply chain who, at the time of the entry into
force of this Regulation, are bound by private contract obligations as regards the
supply of data on container movements, should be entitled to benefit from a
deferred application of Article 18c in order to renegotiate their contracts and
ensure that future contracts are compatible with the obligation to provide data
to the Commission.

(17)     Regulation (EC) No 515/97
confers powers on the Commission to implement some of the provisions of that
Regulation; as a consequence of the entry into force of the Lisbon Treaty, the
powers conferred on the Commission under this Regulation need to be aligned to
Articles 290 and 291 of the Treaty.

(18)     In order to supplement
certain non-essential elements of Regulation (EC) No 515/97 and in particular
to create a streamlined and structured directory of CSMs, the power to adopt
acts in accordance with Article 290 of the Treaty should be delegated to the Commission
in respect of the events for which CSMs should be reported, the minimum data elements
to be reported in CSMs and the frequency of reporting.

(19)     In order to supplement
certain non-essential elements of Regulation (EC) No 515/97 and in particular
to specify the information to be inserted into the CIS, the power to adopt acts
in accordance with Article 290 of the Treaty should be delegated to the
Commission in respect of determining the operations concerning the application
of agricultural legislation for which information has to be introduced into the
central database of the CIS.

(20)     It is of particular
importance that the Commission carry out appropriate consultations during its
preparatory work, including at expert level. The Commission, when preparing and
drawing-up delegated acts, should ensure simultaneous, timely and appropriate
transmission of relevant documents to the European Parliament and the Council.

(21)     In order to ensure uniform
conditions for implementation of this Regulation, implementing powers should be
conferred on the Commission in respect of the format of the data and method of
transmission of CSMs. Those powers should be exercised in accordance with
Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16
February 2011 laying down the rules and general principles concerning mechanisms
for control by Member States of the Commission’s exercise of implementing
powers[6].
The examination procedure should be used for the adoption of implementing acts.

(22)     In order to ensure uniform
conditions for implementation of this Regulation, implementing powers should be
conferred on the Commission in respect of the specific elements to be included
in the CIS under each of the categories referred to under items (a) to (h) in
Article 24. Those powers should be exercised in accordance with Regulation (EU)
No 182/2011 of the European Parliament and of the Council of 16 February 2011
laying down the rules and general principles concerning mechanism for control
by Member States of the Commission’s exercise of implementing powers[7]. The examination procedure
should be used for the adoption of implementing acts. The specific elements to
be included in the CIS will be based on those listed in the Annex to the Commission
Regulation (EC) No 696/98,

HAVE ADOPTED THIS REGULATION:

Article 1

Regulation
(EC) No 515/97 is amended as follows:

1.           Article 2(1), is amended
as follows:

(a)
The first indent is replaced by the following:

‘― ‘customs legislation’ means the body
of Union provisions and the associated delegated and implementing acts
governing the entry, exit, import, export, transit and presence of goods traded
between Member States and third countries, and between Member States in the
case of goods that do not have Union status within the meaning of Article 28(2)
of the Treaty or goods subject to additional controls or investigations for the
purposes of establishing their Union status,’

(b)
The following indent is added:

‘―‘service providers active in the
international supply chain' means owners, shippers,
consignees, freight forwarders, carriers and other intermediaries or persons
involved in the international supply chain.’

2.           Article 12 is replaced by
the following:

‘Documents, certified true copies of documents,
attestations, all instruments or decisions which emanate from the
administrative authorities, reports, and any other intelligence obtained by the
staff of the requested authority and communicated to the applicant authority in
the course of the assistance provided for in Articles 4 to 11 may constitute
admissible evidence in administrative and judicial proceedings of the applicant
Member State in the same way as if they had been obtained in the Member State
where the proceedings take place.’

3.           Article 18a is amended as follows:

(a)
Paragraph 1 is replaced by the following:

‘1. Without prejudice to the competences of the
Member States, for the purpose of risk management as set out in Article 4,
points 25 and 26, and Article 13(2) of Regulation (EEC) No 2913/92, and with a
view to assisting the authorities referred to in Article 29 to detect movements
of goods that are the object of operations in potential breach of customs and
agricultural legislation and means of transport, including containers, used for
that purpose, the Commission shall establish and manage a directory of data
received from public or private service providers active in the international
supply chain. That directory shall be directly accessible to those authorities.’

(b)
Paragraph 2 is replaced by the following:

‘2. In managing that
directory, the Commission shall be empowered:

(a) to access or extract and store the contents
of the data, by any means or in any form, and to use data for the purposes of an
administrative or judicial procedure in compliance with legislation applicable to
intellectual property rights. The Commission shall put in place adequate
safeguards against arbitrary interference by public authorities including
technical and organisational measures and transparency requirements towards the
data subjects. Data subjects shall be provided with the right of access and correction
in relation to data processed for this purpose;

(b) to compare and contrast data that are
accessible in or extracted from the directory, to index them, to enrich them
from other data sources and to analyse them in compliance with Regulation (EC)
No 45/2001 of the European Parliament and of the Council of 18 December 2000 on
the protection of individuals with regard to the processing of personal data by
the Community institutions and bodies and on the free movement of such data[8];

(c) to make the data in this directory
available to the authorities referred to in Article 29, using electronic
data-processing techniques.’

(c)
The following paragraphs 5 and 6 are added:

‘5. The European Data Protection Supervisor
shall supervise compliance of this directory with Regulation (EC) No 45/2001.

The Commission shall implement appropriate
technical and organisational measures to protect personal data against
accidental or unlawful destruction, accidental loss or unauthorised disclosure,
alteration and access or any other unauthorised form of processing.

6. Without prejudice to Regulation 45/2001, the
Commission may transfer, subject to the agreement of the public or private
service providers active in the international supply chain, data referred to in
Article 18a(3) to international organisations and/or EU institutions/agencies
which contribute to the protection of the financial interests of the Union and
correct application of customs legislation with which the Commission concluded a
relevant arrangement or memorandum of understanding.

Data shall be transferred under this paragraph
only for the general purposes of this Regulation also including the protection
of the financial interests of the Union, and/or for the purpose of risk
management as set out in Article 4 points 25 and 26 and Article 13(2) of
Regulation (EEC) No 2913/92.

The arrangement or memorandum of understanding based
on which the transfer of data may take place under this paragraph shall include,
inter alia, data protection principles such as the possibility for data subjects
to exercise their rights of access and correction and to seek administrative
and judicial redress, as well as an independent oversight mechanism to ensure
compliance with the data protection safeguards.

Data received from public or private service
providers active in the international supply chain shall be kept only for the
time necessary to achieve the purpose for which they were introduced and may
not be stored for more than ten years. If personal data are stored for a period
exceeding five years, the European Data Protection Supervisor shall be informed
accordingly.’

4.           Article 18b is amended as
follows:

(a)
Paragraph 2 is replaced by the following:

‘2. The Commission may make expertise,
technical or logistical assistance, training or communication activity or any
other operational support available to the Member States both for the
achievement of the objectives of this Regulation and in the performance of
Member States’ duties in the framework of the implementation of the customs
cooperation provided for by Article 87 of the Treaty on the Functioning of the European
Union. For that purpose, the Commission shall establish appropriate technical
systems.’

(b)
The following paragraph 3 is added:

‘3. The European Data Protection Supervisor
shall supervise compliance of all the technical systems provided under this
Article with Regulation (EC) No 45/2001.’

5.           The following Articles are
inserted:

‘Article 18c

1. The public or private service providers active
in the international supply chain referred to in Article 18a(1) that store data
on the movement and status of containers or have access to such data shall
report to the Commission Container Status Messages (‘CSMs’).

2. The required CSMs shall be reported in
either of the following situations:

(a)
containers destined to be brought by vessel into
the customs territory of the Union from a third country;

(b)
containers leaving the customs territory of the
Union to a third country by vessel.

3. The required CSMs shall report the events
referred to in Article 18f insofar as they are known to the reporting public or
private service provider active in the international supply chain.

4. The Commission shall establish and manage a
directory of reported CSMs, the ‘CSM directory’.

Article18d

1. Where a container, including containers which will not be discharged in the Union, is destined to be brought by vessel into the customs territory of
the Union from a third country, the public or private service providers that
are subject to the obligation in Article 18c(1) shall report CSMs for all events taking place from the moment when the container
was reported empty before being brought into the
customs territory of the Union until the container is again reported empty.

2. In cases where the
specific CSMs needed to identify the relevant empty container events are not
available in the provider’s electronic records in any given case, the provider
shall report CSMs for events taking place at least three months prior to
physical arrival at the customs territory of the Union
until one month after the entry into the customs territory of the Union or, if
occurring first, until arrival at a destination outside the customs territory
of the Union.

Article 18e

1. Where a container is leaving the customs
territory of the Union to a third country by vessel, the public or private
service providers that are subject to the obligation in Article 18c(1) shall
report CSMs for all events taking place from the moment when the container was
reported empty in the customs territory of the Union until the container is
reported to be empty outside the customs territory of the Union.

2. In cases where the specific CSMs needed to identify the relevant empty
container events are not available in the provider’s electronic records in any
given case, the provider may report CSMs for events taking place during at
least three months after exit from the customs territory of the Union.

Article 18f

1. The Commission shall be empowered to adopt
delegated acts in accordance with Article 43 laying down the container status
events for which CSMs are to be reported in accordance with Article 18c, the
minimum data elements to be reported in the CSMs and the frequency of reporting.

2. The Commission shall adopt, by means of
implementing acts, provisions regarding the format of the data in the CSMs and
the method of transmission of the CSMs. Those implementing acts shall be
adopted in accordance with the examination procedure referred to in Article
43a(2).

Article 18g

1. The Commission shall establish and manage a
directory containing data on import, export and transit of goods, including
transit within a Member State, as detailed in Annexes 37 and 38 of Commission
Regulation (EEC) No 2454/93, the "Import, export, transit directory".
The Member States shall authorise the Commission to systematically replicate
data relating to import, export and transit from the sources operated by the Commission
on the basis of Regulation (EEC) No 2913/92 establishing the Community Customs
Code. The Member States shall supply to the Commission data concerning the
transit of goods within a Member State and direct export.

2. The directory shall be used to assist in
preventing, investigating and prosecuting operations which are, or appear to
constitute, breaches of customs legislation and for the purpose of risk
management including risk-based customs controls as defined in Article 4,
points 25 and 26, and Article 13(2) of Regulation (EEC) No 2913/92 establishing
the Community Customs Code.

3. The directory shall be accessible
exclusively to the Commission departments and to the national authorities
referred to in Article 29. Within the Commission and national authorities, only
designated analysts shall be empowered to process personal data contained in
this directory.

Without prejudice to Regulation (EC) No 45/2001,
the Commission may transfer, subject to the agreement of the supplying Member
State, selected data obtained in accordance with the procedure specified in
paragraph 1 to international organisations and/or EU institutions/agencies
which contribute to the protection of the financial interests of the Union and
correct application of customs legislation with which the Commission concluded a
relevant arrangement or memorandum of understanding.

Data shall be transferred under this paragraph
only for the general purposes of this Regulation also including the protection
of the financial interests of the Union, and/or for the purpose of risk
management as set out in Article 4 points 25 and 26 and Article 13(2) of
Regulation (EEC) No 2913/92.

The arrangement or memorandum of understanding
based on which the transfer of data may take place under this paragraph shall
include, inter alia, data protection principles such as the possibility for
data subjects to exercise their rights of access and correction and to seek
administrative and judicial redress, as well as an independent oversight
mechanism to ensure compliance with the data protection safeguards.

4. Regulation (EC) No 45/2001 shall apply to
the processing of personal data by the Commission in the context of data
included in this directory.

The Commission shall be considered as data
controller within the meaning of Article 2(d) of Regulation (EC) No 45/2001.

The import, export, transit directory shall be
subject to prior checking by the European Data Protection Supervisor in
accordance with Article 27 of Regulation (EC) No 45/2001.

Data contained in the import, export, transit
directory shall be kept only for the time necessary to achieve the purpose for
which they were introduced and may not be stored for more than ten years. If
personal data are stored for a period exceeding five years, the European Data
Protection Supervisor shall be informed accordingly.

5. The import, export, transit directory shall
not include the special categories of data within the meaning of Article 10(5)
of Regulation (EC) No 45/2001.

The Commission shall implement appropriate
technical and organisational measures to protect personal data against
accidental or unlawful destruction, accidental loss or unauthorised disclosure,
alteration and access or any other unauthorised form of processing.

Article 18h

1. The Commission may obtain directly from the economic
operators documents supporting import and export declarations, with respect to
investigations related to the implementation of customs legislation as defined
in Article 2(1).

2. Within the time limits obliging economic
operators to maintain the relevant documentation, economic operators shall
provide the Commission upon request with the information mentioned in paragraph
1.’

6.           Article 23(4) is amended
as follows:

‘The Commission shall be empowered to adopt
delegated acts in accordance with Article 43 determining those operations in
connection with the application of agricultural regulations which require the
introduction of information into the CIS.’

7.           Article 25(1) is amended
as follows:

‘The Commission shall adopt by means of implementing
acts, provisions regarding the items to be included in the CIS relating to each
of the categories referred to in Article 24(a) to (h) to the extent that this
is necessary to achieve the aim of the System. Personal data may not appear in
the category referred to in Article 24(e). Those implementing acts shall be
adopted in accordance with the examination procedure referred to in Article
43a(2).’

8.           Article 29 is amended as
follows:

(a)
Paragraph 1 is replaced by the following:

‘Access to data
included in the CIS shall be reserved exclusively for the national authorities designated
by each Member State and the departments designated by the Commission. These
national authorities shall be customs administrations but may also include
other authorities competent, according to the laws, regulations and procedures of
the Member State in question, to act in order to achieve the aim stated in
Article 23(2).

The supplying CIS partner shall have the right
to determine which among those national authorities mentioned above may have
access to data that it has included in the CIS.’

(b)
Paragraph 2 is replaced by the following:

‘Each Member State
shall send the Commission a list of its designated competent national authorities
which have access to the CIS stating, for each authority, to which data it may
have access and for what purposes.

The Commission shall inform the other Member
States accordingly. It shall also verify the list of the designated national
authorities against disproportionate designations and inform all the Member
States of the corresponding details concerning the Commission departments
authorised to have access to the CIS.

The list of national authorities and Commission
departments thus designated shall be published for information by the
Commission in the Official Journal of the European Union and subsequent
updates to the list shall be made public by the Commission on the internet.’

9.           In Article 30(3), the third
subparagraph is replaced by the following:

‘The list of the
authorities or departments thus designated shall be made public by the
Commission on the internet.’

10.         The title of Chapter 4 is
replaced by the following:

‘Chapter
4

Storage
of data’.

11.         Article 33 is amended as
follows:

‘Data included in the CIS shall be kept only
for the time necessary to achieve the purpose for which they were introduced
and may not be stored for more than ten years. If personal data are stored for
a period exceeding five years, the European Data Protection Supervisor shall be
informed accordingly.’

12.         Article 37 is amended as
follows:

(a)
Paragraph 3a is replaced by the following:

‘3a. This Regulation particularises and
complements Regulation (EC) No 45/2001.

The European Data Protection Supervisor shall
supervise compliance of the CIS with Regulation (EC) No 45/2001.’

(b)
The following paragraph 5 is added:

‘5. The European Data Protection Supervisor shall
co-ordinate with the Joint Supervisory Authority, established under Council
Decision 2009/917/JHA, each acting within the scope of their respective
competence, with a view to ensuring coordinated supervision and audits of the CIS.’

13.         Article 38 is amended as
follows:

(a)
In paragraph 1, point b is deleted.

(b)
Paragraph 2 is replaced by the following:

‘2. In particular, both the Member States and
the Commission shall take measures:

(a) to prevent any unauthorised person from
having access to installations used for the processing of data;

(b) to prevent data and data media from being
read, copied, modified or deleted by unauthorised persons;

(c) to prevent the unauthorised entry of data
and any unauthorised consultation, modification or deletion of data;

(d) to prevent data in the CIS from being
accessed by unauthorised persons by means of data-transmission equipment;

(e) to guarantee that, with respect to the use
of the CIS, authorised persons have right of access only to data for which they
have competence;

(f) to guarantee that it is possible to check
and establish to which authorities data may be transmitted by data-transmission
equipment;

(g) to guarantee that it is possible to check
and establish ex post facto what data have been introduced into the CIS,
when and by whom, and to monitor interrogation;

(h) to prevent the unauthorised reading,
copying, modification or deletion of data during the transmission of data and
the transport of data media.’

(c)
Paragraph 3 is replaced by the following:

‘3. The Commission shall verify that the searches
carried out were authorized and were carried out by authorised users. At least
1% of all searches made shall be verified. A record of such searches and
verifications shall be entered into the system and shall be used only for the
said verifications. It shall be deleted after six months.’

14.         Article 41d is amended as
follows:

(a)
Paragraph 1 is replaced by the following:

‘1. The period for
which data may be stored shall depend on the laws, regulations and procedures
of the Member State supplying them. The maximum and non-cumulative periods,
calculated from the date of entry of the data in the investigation file, which
may not be exceeded are as follows:

(a)
data concerning current investigation files may
not be stored for more than three years without any operation in breach of
customs and agricultural legislation being observed; data must be anonymised before
that time limit if one year has elapsed since the last observation;

(b)
data concerning administrative enquiries or
criminal investigations in which an operation in breach of customs and
agricultural legislation has been established but which have not given rise to
an administrative decision, a conviction or an order to pay a criminal fine or
an administrative penalty may not be stored for more than six years;

(c)
data concerning administrative enquiries or
criminal investigations which have given rise to an administrative decision, a
conviction or an order to pay a criminal fine or an administrative penalty may
not be stored for more than ten years.’

(b)
Paragraph 3 is replaced by the following:

‘3. The Commission shall anonymise the data as
soon as the maximum storage period provided for in paragraph 1 has elapsed.’

15.         Article 43 is replaced by
the following:

‘1. The power to adopt delegated acts is
conferred on the Commission subject to the conditions laid down in this
Article.

2. The power to adopt delegated acts referred
to in Articles 18f(1) and 23(4) shall be conferred on the Commission for an
indeterminate period of time from [dd/mm/yyyy] [insert date of entry into
force of this Regulation].

3. The power to adopt delegated acts referred
to in Articles 18f(1) and 23(4) may be revoked at any time by the European
Parliament or by the Council. A decision to revoke shall put an end to the
delegation of the power specified in that decision. It shall take effect on the
day following publication of the decision in the Official Journal of the
European Union or at a later date specified therein. It shall not affect
the validity of any delegated acts already in force.

4. As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and to the
Council.

5. A delegated act adopted pursuant to Articles
18f(1) and 23(4) shall enter into force only if no objection has been expressed
by either the European Parliament or the Council within a period of two months
of notification of that act to the European Parliament and the Council or if,
before the expiry of that period, the European Parliament and the Council have
both informed the Commission that they will not object. That period shall be
extended by two months at the initiative of the European Parliament or of the
Council.’

16.         The following article is
inserted after Article 43:

‘Article
43a

1. The Commission shall be assisted by a
committee. That committee shall be a committee within the meaning of Regulation
(EU) No 182/2011.

2. Where reference is made to this paragraph,
Article 5 of Regulation (EU) No 182/2011 shall apply.’

Article 2

This Regulation shall enter into force on
the 20th day following that of its publication in the Official Journal of
the European Union.

For public or private service providers who,
at the time of the entry into force of this Regulation, are bound by private
contracts that prevent them from fulfilling their obligation stipulated in Article
18c(1), this shall take effect one year after the Regulation has entered into
force.

This Regulation shall be binding
in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

LEGISLATIVE FINANCIAL STATEMENT

1.         FRAMEWORK OF THE
PROPOSAL/INITIATIVE

1.1.      Title of the proposal/initiative

1.2.      Policy
area(s) concerned in the ABM/ABB structure

1.3.      Nature
of the proposal/initiative

1.4.      Objective(s)

1.5.      Grounds
for the proposal/initiative

1.6.      Duration
and financial impact

1.7.      Management
method(s) envisaged

2.         MANAGEMENT MEASURES

2.1.      Monitoring
and reporting rules

2.2.      Management
and control system

2.3.      Measures
to prevent fraud and irregularities

3.         ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.      Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.      Estimated
impact on expenditure

3.2.1.   Summary
of estimated impact on expenditure

3.2.2.   Estimated
impact on operational appropriations

3.2.3.   Estimated
impact on appropriations of an administrative nature

3.2.4.   Compatibility
with the current multiannual financial framework

3.2.5.   Third-party
participation in financing

3.3.      Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

FRAMEWORK OF THE PROPOSAL/INITIATIVE

Title of the proposal/initiative

Proposal
for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending
Regulation (EC) No 515/97 of 13 March 1997 on mutual assistance between the
administrative authorities of the Member States and cooperation between the
latter and the Commission to ensure the correct application of the law on
customs and agricultural matters.

Policy area(s) concerned in the ABM/ABB
structure [9]

Policy
area: Fight against fraud

Activity :
title 24

Nature of the proposal/initiative

 ̈ The
proposal/initiative relates to a new action

 ̈ The proposal/initiative
relates to a new action following a pilot project/preparatory action[10]

n The proposal/initiative relates to the
extension of an existing action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

Objectives

The Commission's multiannual strategic
objective(s) targeted by the proposal/initiative

The
proposed amendment will contribute to the Union’s commitment to fighting fraud
and other illegal activities in the area of customs and to strengthening the
protection of the financial interests of the European Union.

Specific objective(s) and ABM/ABB
activity(ies) concerned

Specific
objective No 5: prevent, deter and combat fraud and
corruption

Specific
objective 5a. Develop anti-fraud policy and legislation

ABM/ABB
activity concerned

24 04
Anti-fraud information system (AFIS)

Expected result(s) and impact

Specify the
effects which the proposal/initiative should have on the beneficiaries/groups
targeted.

On the Commission:
the proposed amendments will allow the Commission to improve risk management
including risk-based customs controls and to make detection, investigation and
analysis of customs fraud more effective. It is also expected that this
proposal will contribute to greater efficiency in the area of data protection
and will further enhance the cooperation by optimising systems and processes
that should lead to better use of the existing tools.

On Member
States: the proposed amendments will further facilitate customs cooperation
between individual Member States and between Member States and the Commission.

In the long
term, the revised Regulation presents an opportunity to significantly increase
the number of detected fraud cases and other irregularities in relation to customs
matters, thereby helping to protect the financial interests of the European
Union and to guard against other risks as defined in the Community Customs
Code.

Indicators of results and impact

Specify the
indicators for monitoring implementation of the proposal/initiative.

Export/import/transit
data/CSMs:

•           number
of detected breaches of legislation

•           number
of investigations opened based on these data

•           number
of requests for use of data by investigators

•           amounts
recovered on the basis of such information

Duration of
related OLAF investigations

•           whether
the change resulted in faster procedures

•           whether
it increased the number of investigations and the amounts recovered

Grounds for the proposal/initiative

Requirement(s) to be met in the short or
long term

The
objectives that are to be met in a short and long term include:

- creating
conditions for improved fighting of customs fraud related to misdeclaration of
goods origin

- creating
conditions for improved fighting of customs fraud related to misdescription of
goods

- creating
conditions for improved fighting of customs fraud related to misuse of the
transit system

- speeding-up
OLAF investigations.

Added value of EU involvement

National
customs authorities alone cannot effectively share information and conduct a large-scale
fight against breach of customs legislation at reasonable cost. Systematic collection of the data required to analyse customs risks
which pose a threat to the EU and its Member States would constitute a
disproportionate effort for 28 individual Member States and can be achieved
more effectively and efficiently by action at EU level.

The need
for more efficient customs risk management, particularly in relation to safety
and security risks, is recognised in the Commission Communication on Customs
Risk Management and Supply Chain Security (COM (2012) 793).

Lessons learned from similar experiences in
the past

The ‘ConTraffic’
pilot project developed by OLAF in collaboration with the Commission's Joint
Research Centre demonstrates that by analysing container movements, it is
possible to effectively identify inconsistencies between the origin declared by
the importer and the geographical origin/dispatch country derived from the
container routing data. Preliminary results have demonstrated that more than
50% of the cases identified using such indicators do indeed involve breach of
customs legislation. This pilot project illustrates perfectly the added value
of the data that are currently not available to the Commission.

ATIS, which
is a joint project by OLAF and Member States, illustrates the importance of
information on transit for detecting customs-related fraud. It is used for the
analysis of transit-related data in order to detect abnormal patterns in a transit
movement and diversion of destination.

Coherence and possible synergy with other
relevant instruments

Enhanced
synergy with Regulation (EU) No 883/2013 is expected, in particular, as regards
access to supporting documents. Under the current regulatory set-up, if an investigation
is based on either Regulation (EU) No 883/2013 or Regulation (EC) No 2185/96, economic
operators are obliged to provide the Commission with the supporting documents.
However, in cases where the investigation is premised on Regulation (EC) No 515/97
the Commission is required to request the supporting documents from the
national authorities. The proposal aims to remove those inconsistencies in
order to ensure a unified approach.

Provision
for use of the new data collections in risk management will significantly
support the agenda proposed in the Commission Communication on Customs Risk
Management and Supply Chain Security and the Council Conclusions (8761/3/13) on
the same subject.

Duration and financial impact

 ̈ Proposal/initiative of limited
duration

 ̈         Proposal/initiative in effect from [DD/MM]YYYY to
[DD/MM]YYYY

 ̈         Financial impact from YYYY to YYYY

n Proposal/initiative of unlimited
duration

Implementation with a start-up period from
YYYY to YYYY,

followed by full-scale operation.

Management mode(s) envisaged[11]

n Centralised direct management by the Commission

 ̈ Centralised indirect management with the delegation of implementation tasks to:

 ̈         executive agencies

 ̈         bodies set up by the Communities[12]

 ̈         national public-sector bodies/bodies with public-service
mission

 ̈         persons entrusted with the implementation of specific
actions pursuant to Title V of the Treaty on European Union and identified in
the relevant basic act within the meaning of Article 49 of the Financial
Regulation

 ̈ Shared management with the Member States

 ̈ Decentralised management with third countries

 ̈ Joint management with international organisations (to be specified)

If more than one
management mode is indicated, please provide details in the
"Comments" section.

Comments

MANAGEMENT MEASURES

Monitoring and reporting rules

Specify
frequency and conditions.

Starting
from the date of this Regulation's entry into force, the Commission will report
every three years on the Regulation's application to the European Parliament,
the Court of Auditors and the Council.

Management and control system

Risk(s) identified

- Expenses
invoiced without contract:

As contracts
are awarded after having completed a procurement process, this risk is narrowed
since a large part of the expenditure will be legally and financially covered
by a framework contract.

In line
with the Commission requirements, a risk assessment exercise will be performed
each year.

- Implementation
of the transfer of data may turn out to be technically challenging.

Control method(s) envisaged

The control
procedures of this initiative are in compliance with the Financial Regulation.

Ex-ante
verifications on commitments & payments

OLAF has
chosen a financial management plan which is a partially decentralised model,
for which all of the ex-ante verification is done in the central Budget Unit.
In OLAF, all files are verified by at least three agents (the file manager and
financial verifying agent in the budget unit and the operational verifying
agent in the unit responsible for the expenditure) before they are accepted by
the Authorising Officer by sub-delegation.

Every head
of unit has been granted a sub-delegation from the Director-General and consequently
every head of unit is responsible for the implementation of his part of the
programme.

- Ex-ante
controls are carried out by the FVA on every transaction which requires
approval of the AOSD.

- Controls
are done on the sensitive variables following the results of the risk
assessment carried out in the context of the Accounting Quality Report (such
as: LE and BA, G/L accounts, budget lines, amounts and calculations, etc).

- Detailed
terms of reference are drafted and form the basis of the specific contract.
Anti-fraud measures are provided for in all contracts concluded between OLAF
and the external party.

-OLAF
performs controls of all deliverables and supervises all operations and
services carried out by our frame work contractor.

Measures to prevent fraud and
irregularities

Specify
existing or envisaged prevention and protection measures.

Audits may
be carried out during the contract and for a period of five years following the
last payment in order to lead, where appropriate, to recovery decisions by the
Commission. The rights of access of Commission staff as well as outside authorised
personnel are defined and the Court of Auditors and OLAF will enjoy the same
rights.

The
controls established enable OLAF to have sufficient assurance of the quality
and regularity of the expenditure and reduce the risk of non-compliance. The depth
assessment reaches level four for all contracts and agreements signed. The
above-mentioned controls reduce the potential risks virtually to zero and reach
100 % of the beneficiaries.

On-the-spot
checks could be considered.

The
programme control strategy is deemed efficient to limit the risk of
non-compliance and is proportionate with the risk entailed.

ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

Heading(s) of the multiannual financial
framework and expenditure budget line(s) affected

Existing expenditure budget lines

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Description........................................] || Diff./non-diff. ([13]) || from EFTA[14] countries || from candidate countries[15] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

1A || 24.0401 Anti-fraud information system (AFIS) || Diff || NO || NO || NO || NO

Estimated impact on expenditure

Summary of estimated impact on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || Number || 1A Smart and inclusive growth

DG: OLAF || || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021 || TOTAL

Ÿ Operational appropriations || || || || || || || || ||

24.0401 || Commitments || (1) || 6.423 || 6.922 || 6.629 || 7.151 || 7.664 || 7.195 || 7.454 || || 49.438

Payments || (2) || 5.800 || 6.200 || 6.000 || 6.400 || 6.900 || 6.500 || 6.700 || (1) 4.938 || 49.438

Number of budget line || Commitments || (1a) || || || || || || || || ||

Payments || (2a) || || || || || || || || ||

Appropriations of an administrative nature financed  from the envelope for specific programmes[16] || || || || || || || || ||

Number of budget line || || (3) || || || || || || || || ||

TOTAL appropriations for DG OLAF || Commitments || =1+1a +3 || 6.423 || 6.922 || 6.629 || 7.151 || 7.664 || 7.195 || 7.454 || || 49.438

Payments || =2+2a +3 || 5.800 || 6.200 || 6.000 || 6.400 || 6.900 || 6.500 || 6.700 || 4.938 || 49.438

Ÿ TOTAL operational appropriations || Commitments || (4) || 6.423 || 6.922 || 6.629 || 7.151 || 7.664 || 7.195 || 7.454 || || 49.438

Payments || (5) || 5.800 || 6.200 || 6.000 || 6.400 || 6.900 || 6.500 || 6.700 || (2) 4.938 || 49.438

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || || || || || || || ||

TOTAL appropriations under HEADING 1A of the multiannual financial framework || Commitments || =4+ 6 || 6.423 || 6.922 || 6.629 || 7.151 || 7.664 || 7.195 || 7.454 || || 49.438

Payments || =5+ 6 || 5.800 || 6.200 || 6.000 || 6.400 || 6.900 || 6.500 || 6.700 || 4.938 || 49.438

If more than one heading is affected by the proposal /
initiative:

Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || || ||

Payments || (5) || || || || || || || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || || || || || || || || ||

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || 6.423 || 6.922 || 6.629 || 7.151 || 7.664 || 7.195 || 7.454 || || 49.438

Payments || =5+ 6 || 5.800 || 6.200 || 6.000 || 6.400 || 6.900 || 6.500 || 6.700 || 4.938 || 49.438

Heading of multiannual financial framework: || 5 || " Administrative expenditure "

EUR million (to 3 decimal places)

|| || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

DG: OLAF ||

Ÿ Human resources || 1.014 || 1.014 || 1.014 || 1.014 || 1.014 || 1.014 || 1.014 || 7.098

Ÿ Other administrative expenditure || 0.570 || 0.570 || 0.570 || 0.570 || 0.570 || 0.570 || 0.570 || 3.990

TOTAL DG OLAF || Appropriations || 1.584 || 1.584 || 1.584 || 1.584 || 1.584 || 1.584 || 1.584 || 11.088

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || || || || || || || ||

EUR million (to 3 decimal places)

|| || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021 || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 8.007 || 8.506 || 8.213 || 8.735 || 9.248 || 8.779 || 9.038 || || 60.526

Payments || 7.384 || 7.784 || 7.584 || 7.984 || 8.484 || 8.084 || 8.284 || 4.938 || 60.526

Estimated impact on operational
appropriations

 ̈         The proposal/initiative does not require the use of
operational appropriations

n         The proposal/initiative requires the use of operational
appropriations, as explained below:

Commitment
appropriations in EUR million (to three decimal places)

Indicate objectives and outputs ò || || || Year 2014[17] || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL ||

OUTPUTS ||

Type of output || Average cost of the output || Number. outputs || Cost || Number. outputs || Cost || Number. outputs || Cost || Number. outputs || Cost || Number. outputs || Cost || Number. outputs || Cost || Number. outputs || Cost || Total number output || Cost ||

OPERATIONAL OBJECTIVE No 1 || Create conditions for improved fighting of customs fraud related to mis-declaration of goods origin

Action 1: Development, launch and maintenance of CSM database || || || || || || || || || || || || || || || || || ||

Development and launch of CSM database || || || 2 || 0.100 || 3 || 0.150 || 1 || 0.050 || 1 || 0.050 || 1 || 0.050 || 0.5 || 0.025 || 0.5 || 0.025 || 9 || 0.450

Maintenance of CSM database || || || 1 || 0.100 || 1 || 0.100 || 1 || 0.100 || 1 || 0.100 || 1 || 0.100 || 1 || 0.100 || 1 || 0.100 || 7 || 0.700

Sub-total for Operational Objective 1 || 3 || 0.200 || 3 || 0.200 || 4 || 0.250 || 2 || 0.150 || 2 || 0.150 || 2 || 0.150 || 1.5 || 0.125 || 1.5 || 0.125

OPERATIONAL OBJECTIVE No 2 || Create conditions for improved fighting of customs fraud related to mis-description of goods

Action 1: Development, launch and maintenance of import/export database || || || || || || || || || || || || || || || || || ||

Development and launch of import/export database || || || 2 || 0.075 || 2.5 || 0.106 || 1 || 0.035 || 1 || 0.035 || 1 || 0.035 || 0.5 || 0.017 || 0.5 || 0.017 || 8.5 || 0.320

Maintenance of import/export database || || || 1 || 0.080 || 1 || 0.080 || 1 || 0.080 || 1 || 0.080 || 1 || 0.080 || 1 || 0.080 || 1 || 0.080 || 7 || 0.560

Sub-total for Operational Objective 2 || 3 || 0.155 || 3 || 0.155 || 3.5 || 0.186 || 2 || 0.115 || 2 || 0.115 || 2 || 0.115 || 1.5 || 0.097 || 1.5 || 0.097

OPERATIONAL OBJECTIVE No 3 || Create conditions for improved fighting of customs fraud related to misuse of the transit procedure

Action 1: Development, launch and maintenance of transit database || || || || || || || || || || || || || || || || || ||

Development and launch of transit database || || || 2 || 0.020 || 2.5 || 0.026 || 1 || 0.008 || 1 || 0.008 || 1 || 0.008 || 0.5 || 0.005 || 0.5 || 0.005 || 8.5 || 0.080

Maintenance of transit database || || || 1 || 0.020 || 1 || 0.020 || 1 || 0.020 || 1 || 0.020 || 1 || 0.020 || 1 || 0.020 || 1 || 0.020 || 7 || 0.140

Sub-total for Operational Objective 3 || 3 || 0.040 || 3 || 0.040 || 3.5 || 0.046 || 2 || 0.028 || 2 || 0.028 || 2 || 0.028 || 1.5 || 0.025 || 1.5 || 0.025

OPERATIONAL OBJECTIVE No 4 || To support Mutual Assistance in Customs Matters

Action 1: Development, launch and maintenance of new mutual assistance database with restricted visibility replacing the current CIS and FIDE || || || || || || || || || || || || || || || || || ||

Development and launch of new mutual assistance database with restricted visibility || || || 5 || 0.600 || 5 || 0.500 || 4 || 0.400 || 3 || 0.300 || 3 || 0.300 || 3 || 0.300 || 3 || 0.300 || 26 || 2.700

Maintenance of new mutual assistance database with restricted visibility || || || 4 || 0.400 || 4 || 0.400 || 3 || 0.300 || 3 || 0.300 || 2 || 0.200 || 2 || 0.200 || 2 || 0.200 || 20 || 2.000

Action 2: Organisation of Joint Customs Operations (JCOs), EU wide and Regional. || || || || || || || || || || || || || || || || || ||

Coordination, logistical, and technical support to Member States for the implementation of EU wide and Regional JCOs || || || 10 || 1.000 || 12 || 1.200 || 14 || 1.400 || 16 || 1.600 || 18 || 1.800 || 20 || 2.000 || 22 || 2.200 || 112 || 11.200

Upgrade, Maintenance and operation of the v-OCU to support the secure exchange of information during JCOs || || || 5 || 0.500 || 6 || 0.600 || 7 || 0.700 || 8 || 0.800 || 9 || 0.900 || 10 || 1.000 || 10 || 1.100 || 55 || 5.600

Sub-total for Operational Objective 4 || 24 || 2.500 || 27 || 2.700 || 28 || 2.800 || 30 || 3.000 || 32 || 3.200 || 35 || 3.500 || 37 || 3.800 || 213 || 21.500

OPERATIONAL OBJECTIVE No 5 || To facilitate secure electronic communication tools for the Member States to fulfil their obligation to report irregularities detected in agricultural, structural, cohesion and fisheries funds as well as pre-accession aid.

Action 1: Development, launch and maintenance of new irregularities reporting modules for the new programming period 2014-2020 || || || || || || || || || || || || || || || || || ||

Development and launch of new irregularities reporting modules for the new programming period 2014-2020 || || || 4 || 0.500 || 4 || 0.500 || 4 || 0.400 || 3 || 0.300 || 3 || 0.300 || 3 || 0.300 || 3 || 0.300 || 24 || 2.600

Maintenance of new irregularities reporting modules for the new programming period 2014-2020 || || || 3 || 0.300 || 2 || 0.200 || 2 || 0.200 || 2 || 0.200 || 2 || 0.200 || 2 || 0.200 || 2 || 0.200 || 15 || 1.500

Sub-total for Operational Objective 5 || 7 || 0.800 || 6 || 0.700 || 6 || 0.600 || 5 || 0.500 || 5 || 0.500 || 5 || 0.500 || 5 || 0.500 || 39.0 || 4.100

OPERATIONAL OBJECTIVE No 6 || To operate, maintain and evolve the AFIS service platform in order to guarantee technical readiness, information security and business continuity.

Action 1: Operate, maintain and upgrade the AFIS infrastructure and IT service platform || || || || || || || || || || || || || || || || || ||

Operate, maintain and upgrade the hardware, software, network and security equipment infrastructure. || || || 6 || 0.700 || 6 || 0.700 || 6 || 0.636 || 6 || 0.700 || 8 || 0.800 || 5 || 0.500 || 5 || 0.500 || 42 || 4.536

Maintain and upgrade the AFIS Portal technical framework hosting the AFIS business applications. || || || 7 || 0.728 || 7 || 0.840 || 7 || 0.700 || 8 || 0.858 || 8 || 0.871 || 5 || 0.548 || 5 || 0.507 || 47 || 5.052

Provide helpdesk services, e-Learning, training and technical assistance and business support to the AFIS end-users. || || || 7 || 0.700 || 8 || 0.800 || 8 || 0.800 || 8 || 0.800 || 10 || 1.000 || 9 || 0.900 || 9 || 0.900 || 59 || 5.900

Sub-total for Operational Objective 6 || 26 || 2.728 || 28 || 3.040 || 29 || 2.936 || 32 || 3.358 || 36 || 3.671 || 29 || 2.948 || 29 || 2.907 || 209 || 21.588

TOTAL COST || 66 || 6.423 || 72 || 6.922 || 69 || 6.629 || 73 || 7.151 || 79 || 7.664 || 73.5 || 7.195 || 75.5 || 7.454 || 508 || 49.438

Estimated impact on appropriations of an
administrative nature

Summary

 ̈         The proposal/initiative does not require the use of
administrative appropriations

þ         The proposal/initiative requires the use of administrative
appropriations, as explained below:

EUR million (to 3
decimal places)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

HEADING 5 of the multiannual financial framework || || || || || || || ||

Human resources || 1.014 || 1.014 || 1.014 || 1.014 || 1.014 || 1.014 || 1.014 || 7.098

Other administrative expenditure || 0.570 || 0.570 || 0.570 || 0.570 || 0.570 || 0.570 || 0.570 || 3.990

Subtotal HEADING 5 of the multiannual financial framework || 1.584 || 1.584 || 1.584 || 1.584 || 1.584 || 1.584 || 1.584 || 11.088

Outside HEADING 5[18] of the multiannual financial framework || || || || || || || ||

Human resources || || || || || || || ||

Other expenditure of an administrative nature || || || || || || || ||

Subtotal outside HEADING 5 of the multiannual financial framework || || || || || || || ||

TOTAL || 1.584 || 1.584 || 1.584 || 1.584 || 1.584 || 1.584 || 1.584 || 11.088

Estimated requirements of human resources

 ̈         The proposal/initiative does not require the use of human
resources

n         The proposal/initiative requires the use of human resources,
as explained below:

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020

Ÿ Establishment plan posts (officials and temporary agents)

24 01 07 00 01 01 01 OLAF || 6.5 || 6.5 || 6.5 || 6.5 || 6.5 || 6.5 || 6.5

XX 01 01 02 (Delegations) || || || || || || ||

XX 01 05 01 (Indirect research) || || || || || || ||

10 01 05 01 (Direct research) || || || || || || ||

Ÿ External personnel (in Full Time Equivalent unit: FTE)[19]

24 01 07 00 01 02 01 (SNE) || 2 || 2 || 2 || 2 || 2 || 2 || 2

XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || || || || || || ||

XX 01 04 yy [20] || - at Headquarters[21] || || || || || || ||

- in delegations || || || || || || ||

XX 01 05 02 (CA, INT, SNE - Indirect research) || || || || || || ||

10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || ||

Other budget lines (specify) || || || || || || ||

TOTAL || 8.5 || 8.5 || 8.5 || 8.5 || 8.5 || 8.5 || 8.5

XX is the
policy area or budget title concerned.

The human
resources required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints.

Description of
tasks to be carried out:

Officials and temporary agents || Management of the pilot project for data transfer from DG TAXUD's Surveillance 2 system to AFIS. Management of the IT development projects for the new AFIS databases for import and export-related data and container status messages. Responsibility for deploying the new databases on the AFIS platform into production Organisation of the Joint Customs Cooperation activities and trainings Secretarial tasks

External personnel || The SNE assigned to the task. The main responsibility will be the project management of the modifications to the Surveillance 2 system and the Export Control System (ECS) which will be required for the transfer of import and export-related data to the new AFIS databases.

Compatibility with the current multiannual
financial framework

n         Proposal/initiative is compatible the current multiannual
financial framework.

 ̈         Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[22].

Explain what is required, specifying the headings and
budget lines concerned and the corresponding amounts.

Third-party contributions

The proposal/initiative does not provide
for co-financing by third parties

Estimated impact on revenue

þ         Proposal/initiative has no financial impact on revenue.

 ̈         Proposal/initiative has the following financial impact:

 ̈         on own resources

 ̈         on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[23]

Year N || Year N+1 || Year N+2 || Year N+3 || ... insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6)

Article ............. || || || || || || || ||

For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.

Specify the method
for calculating the impact on revenue.

ANNEX II.6.2
to the LEGISLATIVE FINANCIAL STATEMENT

Name of the proposal/initiative:

Amending
Regulation (EC) No 515/97 of March 1997 on mutual assistance between the
administrative authorities of the Member States and cooperation between the
latter and the Commission to ensure the correct application of the law on
customs and agricultural matters

1.           NUMBER
and COST of HUMAN RESOURCES CONSIDERED NECESSARY

2.           COST
of OTHER ADMINISTRATIVE EXPENDITURE

3.           METHODS
of CALCULATION USED for ESTIMATING COSTS

3.1.        Human
resources

3.2.        Other
administrative expenditure

This annex must accompany the legislative
financial statement when the inter-services consultation is launched.

The data tables are
used as a source for the tables contained in the legislative financial
statement. They are strictly for internal use within the Commission.

1.           Cost
of human resources considered necessary

o         The proposal/initiative does not require
the use of human resources

þ         The
proposal/initiative requires the use of human resources, as explained below:

in EUR million
(to 3 decimal places)

HEADING 5 of the multiannual financial framework || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

FTE || Appropriations || FTE || Appropriations || FTE || Appropriations || FTE || Appropriations || FTE || Appropriations || FTE || Appropriations || FTE || Appropriations || FTE || Appropriations

|| || || || || Ÿ Establishment plan posts (officials and temporary staff)

24 01 07 00 01 01 01 OLAF || AD || 1 || 0.131 || 1 || 0.131 || 1 || 0.131 || 1 || 0.131 || 1 || 0.131 || 1 || 0.131 || 1 || 0.131 || 1 || 0.917

AST || || || || || || || || || || || || || || || ||

XX 01 01 02 (Headquarters and Commission’s Representation Offices) || AD || || || || || || || || || || || || || || || ||

AST || || || || || || || || || || || || || || || ||

|| || || || || Ÿ External staff[24]

24 01 07 00 01 02 01 OLAF || CA || || || || || || || || || || || || || || || ||

SNE || 1 || 0.078 || 1 || 0.078 || 1 || 0.078 || 1 || 0.078 || 1 || 0.078 || 1 || 0.078 || 1 || 0.078 || 1 || 0.546

INT || || || || || || || || || || || || || || || ||

XX 01 02 02 (Delegations) || CA || || || || || || || || || || || || || || || ||

LA || || || || || || || || || || || || || || || ||

SNE || || || || || || || || || || || || || || || ||

INT || || || || || || || || || || || || || || || ||

JED || || || || || || || || || || || || || || || ||

Other budget lines (specify) || || || || || || || || || || || || || || || || ||

Subtotal HEADING 5 of the multiannual financial framework || || 2 || 0.209 || 2 || 0.209 || 2 || 0.209 || 2 || 0.209 || 2 || 0.209 || 2 || 0.209 || 2 || 0.209 || 2 || 1,463

XX is the policy area or budget title
concerned.

The human resources required will be met by staff from
the DG who are already assigned to management of the action and/or have been
redeployed within the DG, together if necessary with any additional allocation
which may be granted to the managing DG under the annual allocation procedure
and in the light of budgetary constraints.

Outside HEADING 5 of the multiannual financial framework || Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

FTE || Appropriations || FTE || Appropriations || FTE || Appropriations || FTE || Appropriations || FTE || Appropriations || FTE || Appropriations

Ÿ Establishment plan posts (officials and temporary staff)

XX 01 05 01 (Indirect research) || AD || || || || || || || || || || || ||

AST || || || || || || || || || || || ||

XX 01 05 01 (Indirect research) || AD || || || || || || || || || || || ||

AST || || || || || || || || || || || ||

Ÿ External staff[25]

XX 01 04 yy Sub-ceiling for external staff from operational appropriations (former "BA" lines). || - at Headquarters || CA || || || || || || || || || || || ||

SNE || || || || || || || || || || || ||

INT || || || || || || || || || || || ||

- Delegations || CA || || || || || || || || || || || ||

LA || || || || || || || || || || || ||

SNE || || || || || || || || || || || ||

INT || || || || || || || || || || || ||

JED || || || || || || || || || || || ||

XX 01 05 02 (Indirect research) || CA || || || || || || || || || || || ||

SNE || || || || || || || || || || || ||

INT || || || || || || || || || || || ||

10 01 05 02 (Direct research) || CA || || || || || || || || || || || ||

SNE || || || || || || || || || || || ||

INT || || || || || || || || || || || ||

Other budget lines (specify) || || || || || || || || || || || || ||

Sub-total – Outside HEADING 5 of the multiannual financial framework || || || || || || || || || || || || ||

TOTAL || || 2 || 0.209 || 2 || 0.209 || 2 || 0.209 || 2 || 0.209 || 2 || 0.209 || 2 || 1,463

XX is the policy area or budget title concerned.

The
human resources required will be met by staff from the DG who are already
assigned to management of the action and/or have been redeployed within the DG,
together if necessary with any additional allocation which may be granted to
the managing DG under the annual allocation procedure and in the light of
budgetary constraints.

2.           Cost
of other administrative expenditure

þ         The
proposal/initiative does not require the use of administrative appropriations

o         The
proposal/initiative requires the use of administrative appropriations, as
explained below:

EUR million (to
three decimal places)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

HEADING 5 of the multiannual financial framework || || || || || || || ||

Headquarters: || || || || || || || ||

24 01 07 00 01 02 11 - Mission and entertainment expenses || || || || || || || ||

XX 01 02 11 02 – Conference and meeting costs || || || || || || || ||

24 01 07 00 02 01 00 – Investigations || || || || || || || ||

XX 01 02 11 04 – Studies and consultations || || || || || || || ||

XX 01 03 01 03 – ICT[26] equipment || || || || || || || ||

XX 01 03 01 04 – ICT4 services || || || || || || || ||

Other budget lines (specify where necessary) || || || || || || || ||

Delegations: || || || || || || || ||

XX 01 02 12 01 – Mission, conference and entertainment expenses || || || || || || || ||

XX 01 02 12 02 – Further training of officials || || || || || || || ||

XX 01 03 02 01 – Acquisition, rental and related expenditure || || || || || || || ||

XX 01 03 02 02 Equipment, furniture, supplies and services || || || || || || || ||

Subtotal HEADING 5 of the multiannual financial framework || || || || || || || ||

XX is the policy area or budget title
concerned.

EUR million (to
three decimal places)

|| Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

Outside HEADING 5 of the multiannual financial framework || || || || || || || ||

XX 01 04 yy – Expenditure on technical and administrative assistance (not including external staff) from operational appropriations (former 'BA' lines) || || || || || || || ||

- Headquarters || || || || || || || ||

- Delegations || || || || || || || ||

XX 01 05 03 - Other management expenditure - indirect research || || || || || || || ||

10 01 05 03 - Other management expenditure - direct research || || || || || || || ||

Other budget lines (specify where necessary) || || || || || || || ||

Sub-total – Outside HEADING 5 of the multiannual financial framework || || || || || || || ||

XX is the policy area or budget title concerned.

TOTAL HEADING 5 and Outside HEADING 5 of the multiannual financial framework || || || || || || || ||

The administrative
appropriations required will be met by the appropriations which are already
assigned to management of the action and/or which have been redeployed, together
if necessary with any additional allocation which may be granted to the
managing DG under the annual allocation procedure and in the light of existing
budgetary constraints.

3.           Methods
of calculation used to estimate costs

3.1.        Human
resources

This part sets out the method of calculation used to
estimate the human resources considered necessary (workload assumptions,
including specific jobs (Sysper 2 work profiles), staff categories and the
corresponding average costs)

HEADING 5 of the multiannual financial framework

NB: The average costs for each category of staff at Headquarters are available on BudgWeb: http://www.cc.cec/budg/pre/legalbasis/pre-040-020_preparation_en.html#forms

Ÿ Officials and temporary staff AD: 1 FTE project leader - €131.000 overall average cost

Ÿ External staff SNE: 1 FTE - €78.000 overall average cost

3.2.        Other
administrative expenditure

Give details of the method of calculation
used for each budget line

and in particular the underlying assumptions (e.g.
number of meetings per year, average costs, etc.)

HEADING 5 of the multiannual financial framework

Outside HEADING 5 of the multiannual financial framework

[1]               Having regard in particular to Commission
Communication COM (2012) 793 of 8th January 2013 on Customs Risk Management and
Supply Chain Security

[2]               COM (2012)793.

[3]               COM(2013) 534, 17 July 2013

[4]               WSC members provide transport
services accounting for about 60 per cent of the value of global seaborne
trade. The WSC generally provides a coordinated voice for the liner shipping
industry.

[5]               The ATIS administrative arrangement was adopted in
Brussels on 6 July 2011, between the Committee on Mutual Assistance , covered
by Art.43 of Regulation 515/97 and the EC/EFTA Working Group on Common Transit
and the Simplification of Formalities in Trading in Goods.

[6]               OJ L 55, 28.2.2011. p. 13.

[7]               OJ L 55, 28.2.2011. p. 13.

[8]               OJ L 8, 12.1.2001, p. 1.

[9]               ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[10]             As referred to in Article 54(2)(a)
or (b) of the Financial Regulation No 966/2012.

[11]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[12]             As referred to in Article 185 of the Financial
Regulation.

[13]             Diff. = Differentiated appropriations / Non-diff. =
Non-Differentiated Appropriations

[14]             EFTA: European Free Trade Association.

[15]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[16]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[17]             Year N is the year in which implementation of the
proposal/initiative starts.

[18]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[19]             CA= Contract Agent; INT= agency staff ("Intérimaire");
JED= "Jeune Expert en Délégation" (Young Experts in
Delegations); LA= Local Agent; SNE= Seconded National Expert;

[20]             Under
the ceiling for external personnel from operational
appropriations (former "BA" lines).

[21]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[22]             See points 19 and 24 of the Interinstitutional
Agreement.

[23]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25% for collection costs.

[24]             CA
= Contract Staff; LA = Local Staff; SNE = Seconded National Expert; INT= agency
staff; JED = junior experts in delegations.

[25]             CA
= Contract Staff; LA = Local Staff; SNE = Seconded National Expert; INT= agency
staff; JED = junior experts in delegations.

[26]             ICT: Information and Communication Technologies