Opinion on the proposal for a European Parliament and Council Decision adopting an action programme for Community customs (Customs 2000)

(95/C 301/03)

On 7 June 1995 the Council decided to consult the Economic and Social Committee, under Article 100a of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Industry, Commerce, Crafts and Services, which was responsible for preparing the Committee's work on the subject, adopted its Opinion on 12 July 1995. The Rapporteur was Mr Giesecke.

At its 328th Plenary Session (meeting of 14 September 1995), the Economic and Social Committee adopted the following Opinion unanimously.

1. Introduction

1.1. The completion of the European Single Market on 1 January 1993 was a decisive, forward-looking step in the Community's development. In order to achieve the Single Market aims defined in Article 7a of the EC Treaty, numerous adjustment procedures were required from national customs administrations and those using their services. The Commission feels that, to a considerable extent, these adjustments have been completed.

1.2. The trading area without internal customs frontiers within the 15 Member States requires uniform customs clearance for equivalent transactions in all places in the customs area; in this, as many aspects as possible of the associated free trade in goods within the Single Market should be taken into consideration. The public and the business sector in the Member States - and equally their counterparts in third countries - should be confident of receiving the same treatment from the customs authorities in any part of the uniform customs area.

1.3. Community customs legislation, i.e. the Community Customs Code and its implementing provisions, requires uniform application by the 15 customs administrations in the Member States as well as by the economic operators. Only by coordinating, standardizing and simplifying customs procedures can a uniform interpretation of Community customs provisions be achieved.

1.4. The Community has concluded numerous agreements with third countries in order to expand its international trade relations. In this way, the third countries have become familiar with, or integrated in, the EC's economic structure. Close technical and administrative cooperation between the signatories is necessary for implementing the agreements.

1.5. Cooperation with third countries which border on the EC, in particular, can facilitate free-flowing cross-border goods traffic and uniform implementation of Community legislation by the customs administrations in the various Member States.

1.6. In order to achieve these objectives, it is necessary to build up an efficient communications network between the various bodies involved. Business must also have access to these data, so as to keep it abreast of current legislation.

1.7. As far as possible, the necessary legal provisions should be drawn up by Community bodies, Member States and the economic interest groups concerned. This would foster an understanding of the objectives of the other institutions involved.

2. The Commission's action programme

2.1. The Commission's action programme set out in COM(95) 119 final is designed to move on to yet another stage, now that the single market has been completed and the Community expanded to 15 Member States. Effective uniform application of Community legislation is the key prerequisite for smoothly operating internal and external trade. In this connection, uniform application of legislation at the Community's external frontiers assumes particular importance.

2.2. Likewise, cooperation between Member States' customs administrations, the Commission's bodies and business is to be improved as part of the strategic five-year programme. Basic and further training for customs officials in individual Member States is to be structured in an efficient, uniform manner so as to employ resources economically. These measures are to be backed up by the coordinated development of computerized information and customs clearance systems.

2.3. To create an international environment conducive to the best possible management of the Community's external border, cooperation between Community customs administrations and third countries must be consolidated and developed. Community assistance programmes which are already up and running should therefore be expanded and structured as effectively as possible. This will boost the effectiveness of the administrations in the Community's partner countries. Efficient partners will then be able to ensure that trade is carried out in accordance with the agreements and also to protect the economy from illegal trade activities.

2.4. In order to achieve these objectives, all customs measures must be rendered more transparent. Continuous monitoring of current measures means that what is actually achieved can be constantly compared with the objectives of all the parties concerned.

3. Committee's comments

3.1. The Committee endorses the aims of the strategic programme. In the context of the following observations it also welcomes the approach the Commission has adopted in order to assess the results of the 1994 pilot programme quickly and pragmatically and thus to tackle the real shortcomings by drafting this action programme.

3.1.1. More specifically, the Committee welcomes:

- this type of programme, which provides not only for close partnership between all levels of administration - from individual customs offices to the Commission's services - but also for the involvement of the business circles concerned and, consequently, of all participants in European economic life;

- the closest cooperation possible with the customs authorities from third countries with which the EC has concluded agreements. More particularly, this includes the new countries of central and eastern Europe and trading partners in the Mediterranean;

- the planned monitoring of the programme, which is expected to provide a major impetus for the further development of uniform customs procedures;

- the constant review of Community legislation through the monitoring, bearing in mind the requirements of international trade set out in Article 6. This secures the necessary further improvements to existing legislation;

- the provision that the reports drafted in the monitoring process be forwarded to the Committee too. Of particular value will be the inclusion provided for in Article 3(2)a) of complementary studies reflecting the views of business circles (for example those expressed by chambers of industry and commerce and regional associations on both sides of the borders);

- the call for fluid, uncomplicated customs procedures, using new working methods and more modern instruments.

3.2. The Committee would like to make a number of comments on the following aspects of the strategic programme ():

Improvement of working methods

3.2.1. Information must flow quickly within the administration of each Member State for laws to be applied in a uniform manner. Information sent from Community bodies to the Member States must be passed on using standard procedures from the national ministries concerned to their subordinate services. Only in this way can customs officials in, say, Greece, Germany and Sweden, but also at airports, receive the same information at the same time and take these new provisions immediately into account in equivalent customs clearance procedures.

3.2.2. This information flow can only be achieved by building up a modern, Europe-wide customs administration infrastructure. In the first place, this means all customs offices in one Member State must be interlinked by computer. In choosing the system, compatibility with other Member States' systems and those used by the economic operators concerned must be sought from the outset. The Committee considers it absolutely essential for the systems interface to be defined using the UNEDIFACT standard (EC-wide customs communication network).

3.2.3. One of the key requirements of the European business community is for computerized customs clearance procedures to be introduced in a coordinated way, as described above. Currently, all EC Member States are attempting to set up computerized systems and liaise with the business sector in their countries. However, 15 different solutions should not emerge from this approach. Customs union and the drive for uniform application of customs law (customs code and implementing provisions) and related legislation (e.g. on foreign trade, the origin of goods, the protection of intellectual property rights) throughout the Community urgently require Europe-wide customs communications.

3.2.4. Moreover, the Committee feels that computerized information flows will rapidly overtake printed information in practical importance. This development alone should boost the drive to apply such systems on a more widespread basis.

3.2.5. The computerization of cross-frontier communications can, for example, enable the customs office of departure to pass on information about transit arrangements to the customs office of destination in another Member State. In this way, recent cases of fraud relating to consignments attracting high tax could have been considerably reduced in number ().

3.2.6. Another aim of this highly cost-intensive effort by Member States must be to ensure that, for example, a customs agent from Italy using a uniform EC computerized procedure can issue a customs declaration in France or Portugal.

3.2.7. So as to maximize European customs administrations' limited resources, in addition to existing possibilities for simplified customs clearance, a procedure should be developed whereby non-Community goods on import at external borders are physically checked only once and undergo customs clearance only once. This information should then be stored in a databank (see 3.2.8) and could then be retrieved for any further customs requirements. Apart from a few necessary exceptions the subsequent use of these goods once they had entered Community territory would then be subject only to accounting checks. A mirror-image of this procedure should also be set up for processing exports. For both procedures, EC-wide communications need to be improved.

3.2.8. Each Member State sends in the information needed for customs procedures to a central point where it can be accessed. If necessary, data can also be processed at EC level in a central computer at the Commission ().

3.2.9. Equipping customs administrations with modern computerized systems also makes communication between the economic operators concerned possible. This can lead to a situation where movements of goods and customs declarations are checked mainly by accounting procedures. Physical controls can be used only when absolutely necessary; the flow of goods will thus speed up.

3.2.10. Obligatory customs tariff information, because it applies throughout the Community, should be available to all, and not just to certain, customs offices and, as far as possible, to the business communities concerned. This would make customs tariff matters considerably more transparent.

3.2.11. Communications networks can also be used in monitoring movements of people and are beneficial in the extension of the Schengen Agreement.

3.2.12. To secure a uniform application of customs legislation, uniform principles also have to be applied in carrying out audits on firms. This is a prerequisite for equal treatment of economic operators in the various Member States.

3.2.13. Even modern procedures for controlling the cross-border flow of goods will not be able to dispense entirely with physical checks. These should be conducted only once and should, as far as possible, be limited to sensitive product categories. They should always be carried out at places where the customs administrations concerned have specialist staff and the necessary resources at their disposal. In addition, controls conducted pursuant to customs law must be limited to purely accounting measures.

3.2.14. Closer cooperation with the Member States' financial authorities and customs investigation services is essential in order to combat effectively the growing number of cases of fraud. The fight against crime must not start at the border.

3.2.15. The Committee feels that completion of the European Single Market requires speedy, comprehensive expansion of cross-border cooperation between national customs investigation services within the EU and that this should also proceed progressively with the equivalent services of our principal trading partners. The closer and smoother the cooperation the greater its effectiveness and deterrent effect.

3.2.16. In the medium term, it would be useful to establish a European Community customs investigation service (EUROCUSTOMS similar to EUROPOL).

3.3. Gearing training to the needs of a modern European customs administration

3.3.1. There is an undeniable need for 'a common core of training' in customs law and procedure for customs officials in the Member States. Besides respecting the subsidiarity principle, this should take account of the different careers open to customs officials and corresponding training courses.

3.3.2. Comparable careers must be based on comparable training programmes. In the interests of this objective the exchange of trainees is necessary, for certain careers at least.

3.3.3. Further development of the common training policy established by the Matthaeus programme would seem essential. Only with a knowledge of other Member States' procedures can the mutual understanding required to surmount any difficulties be built up.

3.3.4. This cannot be achieved solely by the exchange of qualified officials; national customs trainees must also be familiarized with the practices of other Member States as part of their training. To this end, instructors and lecturers should also be included in an EC-wide exchange programme ().

3.3.5. In conjunction with improved training, the working conditions in customs offices should be brought into line with the new level of duties ().

3.3.6. The Committee stresses the importance of basic and continuous training for customs employees, but would alert the Commission to the particularly difficult situation of customs officials who have been made redundant and who should also be able to benefit from measures to facilitate career development and retraining.

3.4. Creation of an international environment conducive to the best possible management of the external border

3.4.1. Openness in the application of Community customs law and, in particular, the identification of difficulties in the application of the Community provisions are considerably influenced by the actions of the customs administrations of neighbouring third countries. The difficulties which arise vary according to the particular external border, e.g. those at the Community's external borders with the central and eastern European countries are certainly of a different nature from those at the external border between Greece and Turkey or an international airport.

3.4.2. This should prompt the Member States to pinpoint the specific difficulties and jointly seek workable EC-wide solutions with other customs administrations. If necessary the Commission can help to ensure that customs law is applied uniformly at all the Community's external borders.

3.4.3. This cooperation should take place at local level between the customs officials directly concerned, but must also be encouraged at higher levels. An exchange of customs officials, Community assistance in the form of training measures and technical back-up will help to ensure that trade flows smoothly at common borders.

3.4.4. The action programme should, however, also embrace third countries with which the Community has concluded trade agreements () and is a major trading partner. The uniform application of the Treaty provisions and hence the submission of the necessary documentation when goods cross frontiers are preconditions for the proper functioning of these agreements.

3.4.5. For this reason, the Community measures under the Phare and Tacis programmes are to be welcomed, but should be extended to ensure that foreign customs officials, after training in the application of the legislation, are given further training to help them put their knowledge into practice.

3.4.6. To reduce problems at the Community's external borders, leaflets in the national language of the neighbouring third country could help to inform its exporters and shippers about customs requirements ('European Customs Guide').

3.5. Improved information and communication links with business and professional circles

3.5.1. Information and communication links between administration and business must be improved at all levels. Prompt and detailed information to economic operators on pending new or amended European customs legislation and other relevant legal provisions is essential to enable them to prepare for the new circumstances and make the necessary arrangements in good time.

3.5.2. The active involvement of business and professional circles - firms, associations, Consultative Customs Committee, ESC - in the official decision-making process also encourages mutual understanding and prevents unnecessary difficulties in implementation.

3.5.3. As a rule, business fully supports the tasks of the customs administration as they are clearly justified. Hence a policy of providing detailed information on the part of the administration will help to foster understanding and facilitate procedures for all concerned.

3.5.4. The customs administrations, one of whose tasks is to stimulate the economy, should always try to regulate only as much as is necessary for the performance of their duties.

3.6. Monitoring the joint actions

3.6.1. In the Committee's view, the measures carried out under the five-year action programme should be reviewed every 18 months.

This will provide three opportunities in the course of the programme for any adjustments or amendments which need to be made to current measures.

3.6.2. The proposed body of experts intended to carry out the review should, if possible, also include the business circles concerned. Only in this way can the interests of administration and business be assessed comprehensively in the light of the objectives.

3.7. Concluding comments on the Committee's proposals

3.7.1. The uniform application of legislation at all the Community's external and internal borders requires coordination of procedural detail, the introduction of modern national and EC-wide communications systems and, in particular, a uniform approach on the part of the 15 European customs administrations to the approval of simplified customs procedures. The European Commission and business should also be involved in this process.

3.7.2. In the medium term, it will be essential to introduce a simplified EC-wide customs procedure which can be applied at all stages of the procedure in every Member State.

Done at Brussels, 13 September 1995.

The President

of the Economic and Social Committee

Carlos FERRER

() The proposals follow the order of the Commission's document.

() In the Commission's document COM(95) 108 final of 29. 3. 1995 the financial losses incurred by the Community and Member States as a result of serious cases of fraud in transit procedures are estimated at MECU 750.

() Such demands have already been set out in a variety of studies. In order to introduce such a system, however, a change of thinking is required in individual customs administrations. The details of data processing and data transfer need to be defined clearly, especially in accordance with monetary criteria.

() The exchange of trainees between the Member States is to be welcomed too. Costs should be kept to a minimum; measures should be based on reciprocity and utilize existing accommodation, e.g. in training centres. The aims of getting to know the problems of other Member States and encouraging language learning must be to the fore.

() This includes: the creation of an appropriate working environment for customs officials; access to all necessary information (computerized if possible); availability of the necessary technical equipment for inspection of specific products.

() Central and eastern European countries, countries of the former Soviet Union and Mediterranean countries.