[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 23.5.2005

SEC(2005) 657 final

Draft

DECISION OF THE EC/EFTA JOINT COMMITTEE ON COMMON TRANSIT

amending the Convention of 20 May 1987 on a common transit procedure

- Draft common position of the Community -(presented by the Commission)

EXPLANATORY MEMORANDUM CONTEXT OF THE PROPOSAL |

110 | Grounds for and objectives of the proposal The objective of the proposal is to ensure the full usage of the new computerised transit system (NCTS) in the framework of the Convention on a common transit procedure aligned with the Community legislation. |

120 | General context NCTS is fully operational and has been proven to be reliable and satisfactory both for customs administrations and for economic operators. |

139 | Existing provisions in the area of the proposal There are no existing provisions in the area of the proposal. |

141 | Consistency with other policies and objectives of the Union Not applicable. |

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT |

Consultation of interested parties |

211 | Consultation methods, main sectors targeted and general profile of respondents Contacts with economic operators in the context of the Transit Contact Group. |

212 | Summary of responses and how they have been taken into account As the proposal is an alignment with the Community legislation, it has been welcomed by traders. |

Collection and use of expertise |

229 | There was no need for external expertise. |

230 | Impact assessment Non- alignment with Community legislation implies the use of two different systems for transit. Alignment with Community legislation implies that one system will be enough. |

LEGAL ELEMENTS OF THE PROPOSAL |

305 | Summary of the proposed action The computerised transit system being fully operational in all the Contracting Parties of the Convention on common transit and the system having been proven to be reliable and satisfactory both for customs administrations and for economic operators, it is no longer economically justified to permit formalities to be carried out on the basis of a transit declaration made in writing, exception made to exceptional cases such as non-availability of computerised systems (customs or operators) or declarations presented by travellers. However, the decision to allow for transit declarations made in writing should be left within the discretion of each Contracting Party in order to allow for a better compliance with the general requirements in the Contracting Party. Since some countries need to finalise the development of the necessary tools and links in order to allow all economic operators to be linked to the computerised transit system a transitional period permitting the use of transit declarations made in writing should be envisaged. Except in cases where the customs' computerised transit system or where the principal's application is not functioning, the competent authorities accepting transit declarations made in writing should ensure that the transit data is exchanged between the competent authorities using information technology and computer networks. This is the object of the draft decision no XX/2005 of the EC-EFTA Joint Committee. This draft decision received the favourable opinion from the EC-EFTA Working group "Common Transit". This draft decision is submitted to the Council in order to establish a Community position with a view to its final adoption by the EC-EFTA Joint Committee "Common transit" by way of the written procedure. |

310 | Legal basis Art 15 (3) (a) of the Convention on a common transit procedure of 20 May 1987. |

329 | Subsidiarity principle The proposal falls under the exclusive competence of the Community. The subsidiarity principle therefore does not apply. |

Proportionality principle Since the proposal is a modification to an international Convention to align it with Community legislation, the proportionality principle is without objective. |

Choice of instruments |

341 | Proposed instruments: other. |

342 | Other means would not be adequate for the following reason(s). Since the proposal is a modification to an international Convention to align it with Community legislation, no other means is adequate. |

BUDGETARY IMPLICATION |

409 | The proposal has no implication for the Community budget. |

ADDITIONAL INFORMATION |

Simulation, pilot phase and transitory period |

505 | There was or there will be a simulation or a pilot phase for the proposal. |

507 | There was or there will be a transitory period for the proposal. |

510 | Simplification |

511 | The proposal provides for simplification of administrative procedures for public authorities (EU or national), simplification of administrative procedures for private parties. |

513 | One single procedure (computerised instead of paper-based) used to control transit movements. |

514 | One single procedure and the possibility for economic operators to know the state of the procedure foreseen by some Member States and EFTA countries. |

1. Draft

DECISION OF THE EC/EFTA JOINT COMMITTEE ON COMMON TRANSIT

amending the Convention of 20 May 1987 on a common transit procedure

THE JOINT COMMITTEE,

Having regard to the Convention of 20 May 1987 on a common transit procedure[1], and in particular Article 15(3) (a) thereof,

Whereas

(1) The computerised transit system is fully operational in all the Contracting Parties of the Convention on common transit and the system has been proven to be reliable and satisfactory both for customs administrations and for economic operators.

(2) Under these circumstances it is no longer economically justified to permit formalities to be carried out on the basis of a transit declaration made in writing, the use of which implies that the competent authorities are obliged to enter manually the declaration data into the computerised system In general, all transit declarations should therefore be lodged using a data-processing technique.

(3) However, the decision to allow for transit declarations made in writing should be left within the discretion of each Contracting Party in order to allow for a better compliance with the general requirements in the Contracting Party.

(4) The use of transit declarations made in writing should be permitted in exceptional cases where customs' computerised transit system or where the operator's application is not functioning in order to allow economic operators to carry out transit operations.

(5) In order to allow travellers to carry out transit operations the competent authorities should authorise the use of transit declarations made in writing, where the travellers cannot directly access the computerised transit system.

(6) Since some countries need to develop and implement necessary tools and links in order to allow all economic operators to be linked to the computerised transit system a transitional period permitting the use of transit declarations made in writing should be envisaged.

(7) Except in cases where the customs' computerised transit system or where the principal's application is not functioning, the competent authorities accepting transit declarations made in writing should ensure that the transit data is exchanged between the competent authorities using information technology and computer networks.

(8) The concerned provisions should be amended accordingly,

HAS DECIDED AS FOLLOWS:

Article 1

Appendix I of the Convention of 20 May 1987 is amended as shown in the Annex to this Decision.

Article 2

This Decision shall enter into force on the date of its adoption.

It shall be applicable from 1 July 2005.

However, the competent authorities may continue to accept transit declarations made in writing until 31 December 2006 at the latest.

Where the competent authorities decide to accept transit declarations made in writing after 1 July 2005, the decision shall be communicated to the Commission in writing before 1 July 2005. In this case the competent authorities of these countries shall ensure that the transit data is exchanged between the competent authorities using information technology and computer networks.

Done at ,

For the Joint Committee

The President

ANNEX

Appendix I is amended as follows:

1. Article 17 is replaced by the following:

"Transit declarations by means of a data processing technique

Article 17

1. Transit declarations shall be lodged at the office of departure by means of a data-processing technique.

2. Transit declarations lodged by the exchange of EDI standard messages shall comply with the structure and particulars set out in Appendix III.

3. Where a transit declaration is lodged by entering in the data-processing system of the competent authorities the information required for completing formalities, the particulars of the written declaration referred to in Appendix III shall be replaced by transmission for computer processing, to the competent authorities designated for that purpose, of data in coded or any other form specified by those authorities and equivalent to the particulars required for written declarations.

4. Where the common transit procedure in the country of departure succeeds another customs approved treatment or use, the office of departure may request production of these documents.

5. The goods shall be presented together with the transport document. The office of departure may waive the requirement to produce this document when the customs formalities are completed, on condition the document is kept at its disposal."

2. Article 18 is replaced by the following:

"Transit declarations in writing

Article 18

1. Goods may be placed under the common transit procedure by means of a transit declaration made out on a form corresponding to one of the specimens set out in Appendix III and in accordance with the procedure defined by the Contracting Parties in agreement with each other

(a) where the competent authorities' computerised transit system is not functioning,

(b) where the principal's application is not functioning;

2. The use of a written transit declaration under paragraph 1, point (b) shall be subject to the approval of the competent authorities.

3. The provisions of paragraph 1 also apply

(a) where a Contracting Party so decides,

(b) where the goods are transported by travellers who have no direct access to the customs' computerised system and so have no means of lodging the transit declaration using a data processing technique at the office of departure. The competent authorities shall authorise the goods to be placed under the common transit procedure by means of a transit declaration made out on a form corresponding to one of the specimens set out in Appendix III.In these cases, the competent authorities shall ensure that the transit data is exchanged between the competent authorities using information technology and computer networks.

4. The transit declaration may be supplemented by one or more continuation sheets corresponding to one of the specimens set out in Appendix III. The forms shall be an integral part of the declaration.

5. Loading lists drawn up in accordance with the specimen in Appendix III may be used instead of continuation sheets as the descriptive part of a transit declaration, of which they shall be an integral part.

6. The forms referred to in paragraphs 1, 3 to 5 shall be completed in accordance with Appendix III. They shall be printed and completed in one of the official languages of the Contracting Parties accepted by the competent authorities of the country of departure. Where necessary, the competent authorities of a country concerned in the common transit operation may request a translation into the official language, or one of the official languages, of that country.

7. Article 17(4) and (5) shall be applicable mutatis mutandis."

[1] OJ L 226, 13.8.1987, p. 2. Convention as last amended by Decision No 2/2002 (OJ L 4, 9.1.2003, p. 18).