# EUR-Lex - 52013DC0510 - EN

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# 52013DC0510

**COMMUNICATION FROM THE COMMISSION Blue Belt, a Single Transport Area for shipping /* COM/2013/0510 final */**

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COMMUNICATION FROM THE COMMISSION

Blue Belt, a Single Transport Area for
shipping

1.           Introduction

The European Union is highly dependent on
maritime transport for its trade with the rest of the world and within its
internal market. 74%[1]
of the goods imported and exported by the Union and 37%[2] of the exchanges within the
Union transit through seaports. Compared to other modes of transport, maritime
transport has advantages such as its lower costs, and a lower impact on the
environment in relation to the amount of cargo carried.

Nevertheless, shipping is not always used to
its full potential due to unnecessary administrative requirements.

Article 28 of TFEU allows for the free movement
of Union goods[3]
within the EU customs territory. However, as vessels that leave the MS
territorial waters[4]
are considered to pass EU external borders, vessels travelling between ports in
two different Member States are deemed to have left the EU Customs Territory.
As a result, customs formalities become necessary when the vessel leaves the
port of departure and again when the vessel arrives at the port of destination,
even if both are EU ports. While these procedures are required for economic,
safety, security and financial reasons, they involve costs and lead to delays
that put shipping at a disadvantage in comparison to other modes of transport,
when it comes to the movement of Union goods in the EU internal market.

The reduction of costs as well as the
simplification of all administrative procedures is a major objective for
promoting the greater use of Short Sea Shipping and of seaborne trade between
EU ports.

The establishment of a real internal market for
Union goods carried aboard vessels would strengthen the competitive position of
shipping versus other modes of transport and the whole economy, since the
logistical chain would be rendered more effective, complementing trade
facilitation measures already taken. It is important to create a level playing
field between all modes of transport.

One of the existing trade facilitation measures
is the regular shipping service scheme, a customs facilitation scheme for
vessels that call on a regular basis in EU ports only carrying mainly Union
goods. Nevertheless, according to the maritime transport industry, only 10-15%
of maritime traffic, mainly ferries, is operating under this scheme. Given that
the vast majority of vessels carry both Union and non-Union goods and stop frequently
at both Union and non-Union ports (e.g. in Norway, Northern Africa, Russia), a real facilitation needs to cover this type of shipping service if maritime
transport is to exploit its full potential.

Therefore, this Communication creates a policy
framework for the Blue Belt, as concept supported by the Council in 2010[5], increasing the competitiveness
of the maritime transport sector by allowing vessels to operate freely within
the EU internal market with a minimum of red tape, including simplification and
harmonisation measures for maritime transport from third-country ports. To
achieve these goals, it presents the two necessary legal measures amending the Customs
Code Implementing Provisions (CCIP), one already submitted to the competent
Committee in June 2013, and a second to be proposed by the end of the year.

2.           Context

The complexity of administrative procedures was
identified as one of the key bottlenecks for the development of maritime
transport in the Commission Communication and action plan with a view to
establishing a European maritime transport space without barriers[6]. The action
plan contained short and medium term measures as well as recommendations to the
Member States. In relation to customs, it spelt out the need for the
simplification of formalities for vessels sailing between EU ports carrying
goods in free circulation as well as a facilitation for vessels making a call
in a port located in a third country or free zone.

As part of the action plan, the Commission
adopted Regulation (EU) No 177/2010[7]
introducing streamlined procedures for the so-called "regular shipping
services" (RSS) performed by authorised companies. Another part of the
action plan, is the e-Maritime initiative, which aims to foster the use
of advanced information technologies for the maritime transport sector by
promoting interoperability and facilitating the electronic communication
between the different actors involved in maritime transport. A first step to
implement the e-Maritime initiative is Directive 2010/65/EU[8] according to
which ship reporting formalities shall be transmitted and exchanged
electronically via National Single Windows (NSW).

In a broader context, the 2011 White Paper
for the future of transport[9]
(Roadmap to a Single European Transport Area – Towards a competitive and
resource efficient transport system) advocates a genuine Single European
Transport Area in which all residual barriers between modes and between borders
are to be eliminated. In particular, it calls for a Blue Belt in the seas
around Europe which would simplify the formalities for ships travelling between
EU ports.

3.           Blue Belt, a way of completing the internal market for maritime transport

3.1.        The Blue Belt objective

The administrative burden for shipping
companies and their customers and the delay times in ports have a negative
impact on their competitiveness. The efficiency of customs clearance procedures
for goods transported between EU ports has a considerable impact on the timely
and efficient flow of trade between EU companies and businesses. Additional
costs are either borne by the shipping company, constituting an economic drag in
an ever more competitive marketplace, or passed on to their clients with a
price increasing effect for the EU consumer.

The Blue Belt is an area where vessels can
operate freely within the EU internal market with a minimum of administrative
burden while safety, security, environmental protection as well as customs and
tax policies are enhanced by the use of maritime transport monitoring and
reporting capabilities (processes, procedures and information systems).

Its main objective is to improve competitiveness
of the maritime sector through the reduction of administrative burden and costs.
Enhancing the attractiveness of maritime transport and Short Sea Shipping in
particular stimulates employment, reduces the environmental impact of transport.
In short, it promotes real Blue Growth[10].

The efficiency of intra-EU maritime transport
services will be improved and costs are expected to decrease once the Blue Belt
measures are in place and consequently, the competitiveness of European
shippers, freight forwards and manufacturers will be enhanced; a level playing
field between all modes of transport is created. This further facilitation of
intra EU goods transport will be significant both from an economic and
environmental perspective and would generate real effects on the ground.

3.2.        Blue Belt pilot project

In order to validate this concept, the
Commission initiated in 2011 a Blue Belt pilot project in cooperation with the
European Maritime Safety Agency (EMSA). The pilot aimed at demonstrating to
national authorities, including customs, the services which SafeSeaNet[11], the vessel traffic monitoring
and information system managed by EMSA, could offer to support their work, while
reducing the administrative burden for maritime transport. As many as 253
vessels participating in the pilot exercise were monitored and customs
authorities received a notification report before arrival, giving information
on routes, ports of call and vessel behaviour (e.g. encounters at sea).

An evaluation of the project as well as some possible
follow-up actions, such as extending the monitoring to all vessels involved in
purely intra-EU transport or to vessels calling in non-EU ports, giving other
user authorities access to the information, also through national single
windows, and developing more automated formalities for intra-EU shipping, were
described in a Commission Staff Working Paper[12]
and discussed at the Transport Council in June 2012. Transport Ministers
expressed strong support for developing the Blue Belt, and invited the Commission
to come forward with specific proposals.

The Blue Belt pilot project showed that useful
information could be provided to customs on the voyages of the vessels.
Nevertheless, customs authorities pointed out that the information regarding the
vessels should be completed with information regarding the goods carried, in
particular on their status (Union versus non-Union). This distinction allows
customs authorities to ensure the appropriate customs supervision of non-Union
goods while at the same time facilitating the procedures for Union goods.

3.3.        Single Market Act II

On 3 October 2012, the Commission proposed in
its Communication "Single Market Act II, Together for new growth"[13] a set of actions to further
develop the Single Market and exploit its potential as an engine for growth.
Blue Belt was identified as a key action, to consist of a package with
legislative and non-legislative initiatives to reduce the administrative burden
for intra-EU maritime transport to a level that is comparable to that of other
transport modes (air, rail and road).

This key action also refers to the Ports Policy
Review[14],
adopted on 23 May 2013. The review complements the aim of the Blue Belt initiative.
It intends to promote the competitiveness of European sea ports and unleash
their growth potential. The review also imposes a requirement to consult
stakeholders and public administrations operating in the port area on the
efficiency of administrative procedures in ports and, where appropriate,
possible measures to simplify them.

4.           The Blue Belt package

The Commission believes that to create swift
and real operational results, the Blue Belt package should contain two
measures, i.e. an enhancement of the Regular Shipping Service scheme and,
considering economic reality, a facilitation mechanism for vessels that call
also in third-country ports. In addition, the planned revision of Directive
2002/59/EC on Vessel Traffic Monitoring and Information Systems[15] and the implementation of the
Reporting Formalities Directive will support the implementation of this
expanded Blue Belt concept.

4.1.        Present situation

4.1.1.     Current facilitations

Union goods aboard ships that during the course
of the voyage leave the Member States' territorial waters included in the
customs' territory of the Union, lose their Union status and are subject to certain
procedures regardless of whether they circulate only between EU ports or not.
This means that for example Union goods on a truck voyage between Tallinn and Lisbon benefit fully from the single market[16],
while a vessel carrying the same goods between Tallinn and Lisbon is still
considered to have undertaken an international voyage.

Existing legislation already provides for a
simplification for goods transported inside the EU territory through the Regular
Shipping Service procedures. These goods are considered to be Union goods,
unless established otherwise. Certain conditions need to be fulfilled in order
to make an operator eligible:

–        vessels can only ply between EU ports
on a pre-determined route

–        prior authorisation

Non-Union goods can be shipped on regular
shipping service vessels as well, subject to being placed under the external
Community transit procedure[17]
to ensure customs supervision. For this purpose traders may use simplifications
based on the use of a manifest, a solution which is often used by carriers. This
is without prejudice to the application of controls for other purposes,
including those related to the protection of animal, public or plant health of
the Union.

It is up to the shipping company to decide
whether or not to apply for regular shipping service according to its
individual business needs. Such decision will be based on the advantages in
practical terms, depending on whether the vessels carry mainly Union goods (in
which case regular shipping service may be an option since no proof of Union
status is required) or mainly non-Union goods (in which case the use of regular
shipping service may not be an option because there is no obligation to use the
transit procedure outside the service).

4.1.2.     Existing information
systems used for the collection of customs related information from ships

The EU has adopted measures requiring Member
States to establish "National Single Windows" allowing traders to
lodge information through a single interface to meet all import or
export-related regulatory requirements.

A first step towards establishing national
single windows has been accomplished with the launching of the e-customs
project. The project, resulting from Decision No 70/2008[18], aims at replacing paper
format customs procedures with EU wide electronic ones, thus creating a more
efficient and modern customs environment. Customs related information
concerning the outcome of the health controls could be retrieved from the Trade
Control and Expert System, introduced by Decision 2002/459/EC[19], which creates a
trans-European network for the notification, certification and monitoring of
imports, exports and trade of sanitary and phyto-sanitary products. In
addition, regulation (EC) No 648/2005[20]
introduced risk analysis to base customs controls and the improvement of their
efficiency and effectiveness in all areas (security, safety, fiscal).

National customs authorities have also
developed and operated since 2011 the Import Control Systems[21] for receiving automated Entry
Summary Declarations[22]
primarily for safety and security risk screening purposes. Entry summary
declarations are lodged by the responsible parties at the first EU customs
office of entry for vessels departing from non-EU ports. The interoperability
of import control systems already allows customs at the first point of entry to
pass results of safety and security risk analysis on to other Member State customs offices whose ports are listed in the entry summary declarations.

Directive 2010/65/EU on reporting formalities
for ships arriving in and/or departing from ports of the Member States aims to
“simplify and harmonise the administrative procedures applied to maritime
transport by making the electronic transmission of information standard and by
rationalising reporting formalities”. It requires Member States to establish
national single window services for receiving the ship port call notifications
by 1 June 2015. As the information will need to be submitted only once, it will
have to be shared between the relevant administrations, such as customs and
border control.

For such purposes a link has been established between
the Reporting Formalities Directive and the Vessel Traffic Monitoring and
Information Systems Directive, particularly as regards using and developing the
SafeSeaNet's platform in this context. In order to use existing resources and
investments efficiently, avoid duplication and, where possible, reduce the
administrative burden both for industry and administrations involved,
SafeSeaNet should also be used for additional exchange of information for the
facilitation of maritime transport. To achieve this it should be interoperable
with other monitoring and reporting systems. The overall objective is to
guarantee the monitoring of vessels in a system (or interlinked system) that
would be to the benefit of various needs at the national, EU and international
level enabling the establishment of a European maritime transport space without
barriers.

Information relating to cargo which is required
by customs and other authorities are collected via a cargo declaration or
“cargo manifest” transmitted by the shipping company. Despite the adoption of a
standardised cargo declaration in the FAL Convention[23] and the existence of an electronic
format recommended by the World Customs Organization, there is no harmonised
structure for the cargo manifest which has been implemented by the Member
States and that could be used for electronic administrative clearance systems.

4.2.        The future Blue Belt
environment

4.2.1.     Enhancements to the concept
of Regular Shipping Service

Operating a Regular Shipping Service is subject
to prior authorisation by the customs authorities. The application must be
submitted to the customs authorities of the Member State in whose territory
that company is established or, failing this, in whose territory it has a
regional office. The authorising customs authority seeks the agreement of the
customs authorities of the Member States concerned, i.e. those Member States in
whose ports the company wishes to call. Adding new ports of call in other
Member States requires a new authorisation procedure to be launched.

In 2012, the process of application for regular
shipping service and the subsequent management of the authorisation were
updated and streamlined, in particular through the use of an electronic
information and communication system. The procedure for authorisation was
shortened through a reduction of the consultation phase from 60 to 45 days and
subsequent registration of vessels and routes was made easier.

Despite the proven benefits of these facilitations,
the procedure to operate a regular shipping service is still considered to be
cumbersome and not flexible enough by the shipping industry, with the
consequence that many carriers still refrain from applying for this status.
Therefore, some additional modifications could improve the RSS procedure and
make it faster and more flexible.

To introduce further facilitations of the
regular shipping service scheme, an amendment of the current Customs Code
Implementing Provisions[24]
(CCIP) was submitted by the Commission to the competent Committee in June 2013.

The amendment covers:

– 
A shortening of the authorisation period by
further limiting the consultation period between Member States to 15 days.

– 
An extension to future port calls. Currently, operators
applying for regular shipping service authorisation must specify the Member
States concerned by the service. If subsequently they wish to extend it to
another Member State, another consultation is required. Allowing applicants to
specify in advance Member States which could be covered in the future as well
as those actually covered would save time when the business case arises.

Blue Belt facilitation - Example 1

An operator, wanting to offer a regular shipping service between
Felixstowe in the UK, Rotterdam in the Netherlands and Copenhagen in Denmark
and in the future perhaps to Gdansk in Poland, will be able to profit from the
enhanced regular shipping service scheme. The operator will have to ask for an
authorisation to the UK customs authorities to operate this service and will
also be given the opportunity to indicate which Member States might be added to
the service in the future, in this case Poland. The UK authorities will contact
all of the relevant customs authorities, i.e. in the Netherlands, Denmark and Poland and ask for their permission to grant the authorisation. Member States will have
up to 15 days (instead of the current 45 days) to answer. An authorisation will
then be granted and the operator will be able to offer the service at a
relatively short notice. Later on, if the operator wishes to modify the service
to include the port of Gdansk in Poland, this can be done in a very smooth way,
without having to launch a new authorisation procedure.

4.2.2.     The eManifest, a tool to
facilitate voyages of vessels calling also in third country ports

Notwithstanding its benefits, the concept of regular
shipping services is only attractive to a limited number of business operations
and often does not correspond to the needs of shippers, manufacturers,
importers and exporters, trade and industry. Since only intra-EU shipping
services meet the conditions for authorisation and operation, ships involved in
intra-EU trade but calling also at a foreign port are excluded from its scope. It
is estimated that only 10-15% of maritime traffic, mainly ferries, is operating
under the regular shipping service scheme. Given that the vast majority of
vessels carry both Union and non-Union goods and stop frequently at both Union
and non-Union ports (e.g. in Norway, Northern Africa, Russia), a real facilitation needs to cover this type of shipping service if maritime
transport is to exploit its full potential.

The status of the goods carried on-board (i.e. Union or non-Union, Export, Freight Remaining On Board, etc.) needs to be known in order to
determine the appropriate customs supervision. Therefore, facilitations can be
achieved by introducing a tool for easy notification of the required information,
including information to be provided by the shipping company to customs on the
status of the goods. This will allow the authorities to determine the procedure
to be applied according to the status of the goods. Such a tool will allow
customs at the discharge port to arrange for a swift release of Union goods
while ensuring that non-Union goods remain under necessary customs and other
administrative controls, such as health controls, pending their release for
e.g. free circulation.

The electronic cargo 'eManifest' with
information on the status of goods is considered a practical solution to
achieve this. The eManifest would take the form
of a harmonised and electronic cargo manifest and is an instrument to achieve
further facilitation of maritime transport for vessels calling at EU and also
at third country ports.

When the eManifest is lodged in an EU port, the
Union status of the goods on board will be indicated and, if confirmed, customs
controls would no longer be needed for Union goods apart from random checks. This
represents a considerable facilitation of trade for shippers and shipping
companies, as well as a simplification for customs authorities not required to
check Union goods, unless identified for random or specific checks.

Goods loaded at non-EU ports would by
definition be non-Union goods and be mentioned as such on the eManifest. In
addition, if a vessel calls at a third country port between two EU ports but Union
goods remain on board, the goods will maintain their status as declared upon
departure from the last EU port. Furthermore, the verification of accuracy of
the information provided from the port of departure to the port of arrival will
be facilitated due to the harmonised eManifest.

The eManifest would introduce a further simplification:
the indication of the goods' status in the eManifest could be endorsed by an
operator if he is authorised to do so. Traders who do not have such an
authorisation will have to rely on confirmation by the customs authorities.

The eManifest needs to be made available
electronically to the customs authorities in the subsequent EU port of call
where goods will be unloaded, the Union status of the goods being used to
guarantee a quick release. A reference in the eManifest to the cargo-related
information collected in previous ports of call would provide an additional
element for tracking compliance not only with the fiscal but also with the
safety and security requirements of the EU.

The eManifest will need to be fully harmonised
across the EU. IT systems also need to be fully interoperable for the eManifests
to be lodged and information to be exchanged between authorities. However, the
intention is not to create a new system which would imply additional costs, but
to build on existing systems or systems which are being developed, such as the
National Single Window, developed in the framework of the Reporting Formalities
Directive, which would allow the eManifest to be exchanged between national
customs administrations and with other relevant authorities.

With this solution, Union goods will benefit
from the internal market, and this even for voyages with calls in third
countries ports, while non-Union goods will be subject to the same full compliance
requirements that exist today. Customs authorities will be able to devote more
resources to risk assessment and clearance of non-Union goods while Union goods
can circulate more freely.

In order to introduce this facilitation, the
Commission is preparing to present by the end of 2013 an amendment of the
current Customs Code Implementing Provisions (CCIP), including provisions to
establish the eManifest. The Commission expects the eManifest to be fully operational
as of June 2015. This amendment will take into account work which has already
been carried out in implementing the Reporting Formalities Directive which
requires the closer cooperation between all parties involved both at national
and EU level. In addition, eManifest requirements need to be taken into account
when revising the Vessel Traffic Monitoring Information Systems Directive and
during the further implementation of the Reporting Formalities Directive.

Blue Belt facilitation - Example 2

A ship sailing from Shanghai in China calls at Limassol in Cyprus. All goods on board arrive from outside the EU. A risk assessment on the type and
level of risk has been carried out on the basis of the entry summary
declaration lodged prior to departure from Shanghai. All cases on immediate
threat will be subject to all necessary controls, such as health controls, safety
and security, veterinary controls, etc. For those goods from China unloaded in Cyprus, all usual controls will be performed in Cyprus. For the goods remaining on
board and that present a risk
that is not an immediate threat, information is passed to all routing Member
States, in order to enable the customs authorities at unloading ports to
perform the necessary controls. The ship then loads EU cargo to go from Cyprus to
Marseille in France. With the Blue Belt facilitation in Limassol the operator
of the vessel will update the eManifest which includes the indication of the
status of its cargo (respectively non-Union and Union goods) in the electronic
document. On its way to Marseille, the vessel makes a stop in Tangier to unload
goods from China and load additional goods. The eManifest is updated again and
a new entry summary declaration is lodged for safety and security risk
assessment purposes for the goods loaded in Tangier. All goods coming from
China and additional goods loaded in Tangier are
considered to be non-Union goods. When the ship arrives in Marseille, Union
goods loaded in Limassol, their status declared in the eManifest, can be
quickly released by customs based upon their Union status indicated in the
eManifest. All non-Union goods will be subject to the appropriate controls,
such as security, safety, health, veterinary, fiscal, etc.

5.           Reporting

The Commission will report by mid-2016 to the
European Parliament and the Council on the Blue Belt initiative, including on
its implementation, effectiveness, impact on EU economy, further evolution,
etc.

The Commission will also inform on a regular
basis stakeholders on the implementation and effectiveness of the Blue Belt
initiative.

6.           Conclusion

Recalling the objectives of the Single Market
Act II to create a real single market for maritime transport, the Commission
confirms its commitment to develop the Blue Belt concept until its full
implementation, including the expanded simplification measures for third
country calls.

Therefore, the Commission calls for the support
of the European Parliament and the Council as well as the technical involvement
of the shipping industry to put the Blue Belt initiative into practice. Simultaneously,
Member States' customs and maritime authorities are asked to continue and
enhance their cooperation as only a joint effort can make the Blue Belt work
and create – to use the yardstick of the Single Market Act II – real effects on
the ground!

[1]               Source: ESPO, European Port Performance Dashboard,
2012

[2]               Source: Eurostat

[3]               Union goods means goods which are wholly obtained in
the customs territory of the EU, which have been imported from non-EU countries
and released for free circulation, or which are obtained or produced in the EU
from goods falling in the preceding categories. Non-Union goods are other
goods, essentially those which are imported from non-EU countries and have not
been released for free circulation. (article 29 of TFEU)

[4]               Territorial waters, or a territorial sea, is a belt
of coastal waters extending at most 12 nautical miles (~22km) from the baseline
(usually the mean low-water mark) of a coastal state. It is regarded as the
sovereign territory of a state. (United Nations Convention on the Law of the
Sea, 1982)

[5]               The topic was discussed under Belgian Presidency at
the Informal Transport Council in Antwerp on 15-16 September 2010 and resulted
in Council Conclusions of 2 December 2010 on the "Full integration of
waterborne transport into the EU transport and logistics chains".

[6]               COM(2009) 10 final

[7]               OJ L52 of 3.3.2010

[8]               OJ L283 of 29.10.2010

[9]               COM(2011) 144 final

[10]             COM (2012) 494 final

[11]             SafeSeaNet is a system established by Directive
2002/59/EC as amended, hosted and technically developed by EMSA which puts a
reporting and notification obligation on Masters, operators or agents of ships
enabling Member States to provide and receive information on ships and their
hazardous cargoes. It provides, among others, the identification, position and
status of a ship; times of departure and arrival; incidents reports, details on
hazardous cargoes.

[12]             SWD(2012)145 final

[13]             COM(2012) 573 final

[14]             COM(2013)296 final and COM(2013)295 final

[15]             OJ L208 of 27.06.2002

[16]             On the condition that the truck remains within the EU
customs territory and, for example, does not use a route via Kaliningrad or Ukraine.

[17]             This procedure is defined in article 91(1) of the
Community Customs Code. It allows in particular the movement of non-Community
goods from one point to another within the customs territory without such goods
being subject ti import duties and other charges or to commercial policy
measures.

[18]             OJ L23 of 26.1.2008

[19]             OJ L159/27 of 17.06.2002

[20]             OJ L117 of 4.5.2005

[21]             The Import Control System, a system for electronic
information exchange based on common specifications, provides for the handling
of pre-arrival declarations and the link of the information with risk analysis.

[22]             An Entry summary declaration is a declaration referred
to in article 36a of the Customs Code to be lodged for goods brought into the
customs territory of the Union.

[23]             The FAL Convention is a convention for the facilitation
of international maritime traffic, adopted by the International Maritime
Organisation on 9 April 1965 as amended.

[24]             Commission Regulation (EEC) No 2454/93 of 2 July 1993
laying down provisions for the implementation of Council Regulation (EEC) No
2913/92 establishing the Community Customs Code, OJ L 253 of 11.10.1993