16. 1.85 Official Journal of the European Communities NoC 15/1 
II 
(Preparatory Acts) 
COMMISSION 
Commission communication to the Council on the Coordinated Development of 
Computerized Administrative procedures 
(CD. PROJECT) 
COM(84) 556 final 
(84/C 15/01) 
Table of Contents 
SECTION 
0. Executive Summary (i)-(iii) 
1. Introduction 
2. Community requirements 
3. Problems and Constraints 
4. The proposed approach 
5. Outline Computerization Framework 
6. Objectives and Priorities 
7. Costs and Benefits 
8. Indicative Implementation Timetable 
9. Work Programme 
10. Council Policy Decisions 
ANNEXES 
1. Glossary 
2. Import Sub-systems, functions and facilities 
3. Export Sub-systems, functions and facilities 
4. Commission systems, functions and facilities 
5. Member States' own resources refunds 
6. Benefits summary 
7. Work programme 
8. Provisional timetable — stage 1 
9. Organisational structure Pages 
2 
4 
4 
6 
7 
8 
13 
15 
16 
18 
19 
20 
21 
22 
23 
25 
25 
28 
32 
33 
NoC 15/2 Official Journal of the European Communities 16. 1.85 
CD. PROJECT 
Executive Summary 
(i) 
1. On 15 May 1984 the Council adopted a Resolution calling on Member States to 
computerize their administrative procedures relating to intra-Community trade and 
agreeing to the progressive interconnection of the computer systems concerned. The 
Commission was invited to present a Community framework for this computerisation 
together with a detailed work programme by 1 October 1984. In the time and with the 
resources currently available, the Commission has not been able to prepare definitive 
proposals but has identified the main requirements and has prepared proposals for an 
outline framework and a provisional work programme. These will be followed up by 
progressively more detailed proposals as the project proceeds. The work on this pro­
ject, called for convenience the CD. Project, will be undertaken within the overall 
framework of the CADDIA Project (')• 
2. The Commission has concluded that it is impracticable to develop in isolation 
computer systems devoted solely to intra-Community trade. The Community frame­
work, therefore, needs to cover intra-Community trade, trade with third countries, 
interfaces with traders, relevant Commission systems, systems interconnection require­
ments, and data interchange standards. 
3. In developing and implementing such systems due account has to be taken of a 
number of problems and constraints. New systems have to be designed around exist­
ing customs requirements which form an essential part of the 'acquis communautaire'. 
The existence of differing Member State computer systems and plans for computerisa­
tion will necessarily constrain the way in which new systems to meet Community 
requirements can be implemented. Simplified procedures for imports and exports 
implemented by a number of Member States will need to be rendered compatible with 
one another. Lack of harmonization of national requirements in fields such as VAT, 
excise duties, trade statistics, etc., will affect the efficiency of the new systems. Finally, 
a number of difficult legal problems need to be solved. 
4. The Commission proposes that Community requirements should be met through 
close cooperation between Member States and the Commission, a larger degree of sys­
tems harmonization, the adoption of common standards, an effective coordination of 
individual development projects and close cooperation with relevant trade interests. 
(ii) 
5. The various elements in the outline computerisation framework are then 
explained. For intra-Community trade the 'user requirements' need to be specified in 
more detail before the framework can be filled out. The Commission considers, how­
ever, that the flow of information on intra-Community trade will have to be seen as a 
total system. Community and national procedures will have to be rationalised to 
achieve optimum results. A number of possible approaches requiring further analysis 
(') OJ84/C112. 
16. 1. 85 Official Journal of the European Communities No C 15/3 
are presented. These include an extension of facilities currently granted to 'authorised 
traders', and the introduction of new simplified procedures for the generality of goods 
which are not subject to special customs regimes. For third country imports and 
exports the position is clearer as a result of computerisation already undertaken in a 
number of Member States. The Commission's proposals identify the basic elements of 
future import and export sub-systems, taking account of the elements of existing Mem­
ber State systems and additional requirements identified by the Commission. The var­
ious types of interfaces with trader systems and the requirements for system to system 
interconnection are identified as a basis for further technical work. Commission sys­
tems which will be interlinked with those of the Member States are also identified. 
Requirements for Information Technology (IT) standards, as well as data interchange 
standards, are also stated. 
6. The Commission considers it essential to lay down in broad terms objectives to be 
met in designing the new systems and the main design objectives are therefore speci­
fied. Priorities are also dealt with in broad terms. Whilst it would be desirable to give 
absolute priority to the development of systems to facilitate intra-Community trade, 
the Commission recognises that the constraints previously identified make this impos­
sible. It nevertheless proposes that greater priority than hitherto should be given to the 
needs of intra-Community trade. 
7. Costs and benefits have always been a major preoccupation of the Member States' 
administrations. The Commission concludes that, at this stage, it cannot produce even 
tentative costings for the new systems. However, it adduces arguments to demonstrate 
that, from experience and in the light of the continuing decrease in the cost/power 
ratio of computer equipment, the cost/benefit ratios for customs computerisation 
should be positive. A qualitative summary of the benefits of computerisation prepared 
by the Customs Cooperation Council is also included. 
(iii) 
8. The Commission presents an indicative timetable for the development and imple­
mentation of the new systems. It concludes that Member States will be moving at dif­
ferent rates towards the common goal. The bulk of the work on the third country 
sub-systems should be completed by the end of the decade. The implementation of 
certain elements of the intra-Community trade sub-system could be expected in 
1987/88. The completion of the sub-system through the progressive interconnection of 
Member States' systems could be expected to start from about 1988 and be completed 
no later than 1992. 
9. The requirements of the work programme are specified and the Commission pre­
sents a detailed provisional programme for stage 1 of the project covering the period 
up to early 1987. Stage I includes the specification and agreement of the functions and 
facilities to be included in the new systems; the production and agreement of state­
ments of user requirements and system descriptions for each of the agreed functions 
and facilities; the preparation and agreement of data interchange standards; and trials 
involving a limited number of Member States aimed at testing systems concepts and 
standards. The proposals also include an organisational structure for the management 
and coordination of the project activities. The Commission emphasises its need to 
recruit high-calibre and experienced customs systems analysts without which the pro­
ject cannot be pursued. The initial requirement is estimated to be four analysts. The 
NoC 15/4 Official Journal of the European Communities 16. 1.85 
Commission expects the Council to provide the necessary temporary posts and calls 
on the Member States to nominate suitable candidates. 
10. The proposals conclude with a number of essential policy decisions which the 
Commission considers the Council needs to take. These include agreement to the prin­
ciple that the functions and facilities provided by customs computer systems should 
be harmonized, as well as agreements on the proposed objectives and priorities, on the 
indicative timetable and work programme and on close cooperation between the 
Commission and the Member States. Finally, the Commission calls on the Council to 
agree to give priority to providing the temporary posts necessary for the project. 
Commission Communication to the Council on the Coordinated Development of 
Computerized Administrative Procedures 
1. INTRODUCTION 
1.1. On 15 May 1984 the Council adopted a Resolution (') calling on Member States to 
expand the computerization of their administrative procedures relating to intra-Com-
munity trade as quickly as possible. The Resolution also agreed to the computerization of 
exchanges of data and to the progressive interconnection of the computers used in these 
procedures. It also invited the Commission to continue work already in hand and, taking 
into account the characteristics of the Member States, to present proposals by 1 October 
1984 for a Community framework for computerization together with a work programme 
and precise timetable. 
1.2. In order to lay down a complete computerization framework it is necessary to analyse the 
user requirement' (2) for each of the procedures to be computerized and then to construct 
a framework which meets these requirements. This requires detailed systems analysis tak­
ing into account the characteristics of Member States, as required by the Council Resolu­
tion, as well as the analysis already done at national level by a number of Member States. 
In addition, it is necessary to examine the interrelationship between customs, agricultural 
and statistical requirements and between Community requirements and traders' systems. 
Consequently, close consultation with numerous Member State experts and representa­
tives of trade interests is required. The Commission has started this exercise but it has not 
been able to complete it in the time and with the resources available. Nevertheless, the 
Commission has been able to specify the main Community requirements, identify the 
main problems and constraints; and to prepare an outline computerization framework, 
including a provisional work programme and an indicative timetable. Its present propo­
sals are, therefore, presented subject to the above limitations and should be seen as the 
first of a series of proposals which will be supplemented by progressively more detailed 
proposals as the project proceeds. For convenience, the project will be referred to as the 
CD. Project. 
1.3. Work on the CD. Project will be undertaken within the overall framework of the CAD-
D1A programme (3). 
2. COMMUNITY REQUIREMENTS 
2.1. The recent disruption of intra-Community trade, which stemmed from the annoyance of 
transporters at frontier delays, has highlighted the need to Find ways of speeding up 
administrative controls at frontiers, pending their total abolition. The Council has recog-
(') OJ84/C 137/01. 
(:) See Glossary at Annex 1. 
O OJ 84/C 112. Commission's Communication to the Council on CADD1A dated 16 March 
1984. 
16. 1. cS5 Official Journal of the European Communities No C 15/5 
nised that the computerization of certain of these controls, essentially those operated by 
national customs services, should make a substantial contribution to the solution of the 
problems of border delays. Customs controls on intra-Community trade are closely inter­
related with those on imports from third countries and, normally, customs posts are 
required to handle both types of traffic. Consequently, it would be inefficient as well as 
impracticable, both from a customs as well as a trade point of view, to develop customs 
computer systems dedicated exclusively to intra-Community trade. The computerization 
of intra-Community trade and third country trade procedures has therefore to be treated 
together. In addition, in order to optimise the use of the systems, the requirements for 
inter-linking with Commission systems need to be taken into account at the same time. 
2.2. As a result of its enquiries in all Member States (') and its analysis of the complex prob­
lems involved, the Commission is convinced that the computerization framework 
requested by the Council must cover the following six basic areas: 
2.2.1. Intra-Community Trade 
Future customs computer systems of the Member States will need to provide the func­
tions and facilities (:) necessary to process intra-Community trade transactions, whilst 
minimising controls on goods in free circulation. In this context, a reappraisal of the 
information handling requirements for the customs clearance of goods in free circulation 
and the further simplification of both Community procedures and residual national pro­
cedures appear essential. 
2.2.2. Third country trade 
2.2.2.1. Imports 
Future customs computer systems will need to provide all the necessary functions and 
facilities to ensure that Community legal and administrative requirements relating to 
imports from third countries, including those relating to own resources, are properly and 
uniformly applied. This will limit the risk of traders circumventing regulations and pro­
vide the security necessary to promote the facilitation of intra-Community trade. This 
conforms with the concept, often expressed in the Council, of improving the effectiveness 
and uniformity of customs controls on external trade in order to promote the free move­
ment of goods within the Community. It should be clearly understood, however, that 
improving import control systems does not imply creating barriers to genuine trade but 
rather reducing them. 
2.2.2.2. Exports 
The functions and facilities necessary to ensure that Community legal and administrative 
requirements for exports to third countries are applied will also have to be provided. 
2.2.3. Trader interfaces 
Future customs computer systems will have to provide for computer interfaces with 
importers and exporters, forwarding agents, carriers, and port or airport authorities. The 
systems will have to accept a number of different approaches ranging from the supply of 
information on magnetic media to direct system to system interconnection. 
2.2.4. Commission systems 
Commission computer systems will have to include the functions and facilities necessary 
to enable them to receive data from and transmit data to Member States, as well as to 
process efficiently the data concerned. 
(') Reports on the Commission's enquiries have been distributed to interested departments of 
the Member States. 
(:) See Glossary at Annex 1. 
No C 15/6 Official Journal of the European Communities 
2.2.5. Systems interconnection 
Appropriate PTT services using common technical standards will be required to provide 
for trader interfaces for data to be exchanged directly between the computers of national 
customs administrations, and between national customs administrations and the Com­
mission. The computer systems used by the various parties will have to be compatible to 
the extent needed for systems interconnection. 
2.2.6. Data Interchange Standards 
Common interchange standards for data and messages will also be required. 
3. PROBLEMS AND CONSTRAINTS 
3.1. If the Community were starting with a clean slate it would, in theory, be possible to spe­
cify all the detailed administrative requirements and the computerized procedures neces­
sary to meet them. However, in the customs field, there is a whole corpus of procedures 
developed over many years which represents an essential part of the 'acquis communau-
taire'. As a consequence, new computer systems have to be designed around existing legal 
requirements. 
3.2. The majority of Member States have already implemented or are in the course of imple­
menting customs computer systems. Some started over 15 years ago and have steadily 
upgraded their systems; others are relative newcomers. In designing and implementing 
their customs computer systems Member States have, understandably, taken account 
mainly of national rather than Community needs. Thus they have concentrated on the 
development of computer systems to process imports from third countries since these 
present the most difficulties for them. They have given priority to implementing these sys­
tems in the places where the volumes of traffic are the highest without particular regard to 
the need to facilitate intra-Community trade. Most Member States have not yet signifi­
cantly computerized the processing of intra-Community trade data or such Community 
requirements as tariff quota management. For practical and economic reasons, customs 
and other related services cannot be expected to scrap their existing systems or plans. 
This factor necessarily constrains the way in which systems to meet Community require­
ments can be implemented. 
3.3. Customs services are required to carry out their tasks without interruption throughout the 
year, in some cases on a 24 hour/7 days per week basis. New procedures and new systems 
have to be introduced without hindering the flow of goods. This requirement also affects 
the implementation of new computer systems. 
3.4. Many Member States have introduced simplified procedures for imports and exports 
which enable declarants to defer or in some cases dispense with the presentation of indi­
vidual customs declarations. The scope of these procedures differs between Member 
States and they do not, as a general rule, cover the whole export/transit/import operation 
in any one case. This problem, therefore, has to be examined in the context of the simpli­
fication of intra-Community trade procedures. 
3.5. There exists a whole range of national requirements relating to VAT, excise duties, trade 
statistics (other than those harmonized at Community level), health, veterinary and phyto-
pathological controls, etc., which are not yet sufficiently harmonized. This will also affect, 
to varying degrees, the development of efficient computerized procedures unless the 
Council is prepared to accept Commission proposals for harmonization in the context of 
the current computerization exercise. 
3.6. In addition to the problems mentioned above, there are a number of legal problems 
which need to be solved if the new technologies are to be exploited to the full. These 16. 1.85 
16. 1.85 Official Journal of the European Communities NoC 15/7 
include the elimination of the current requirement for signed documents to authenticate 
customs declarations, the enabling of computer-generated data to be accepted as evi­
dence in Court proceedings, and the compatibility with Community law of fees for the 
use of customs computer facilities. In addition, data privacy and data protection laws 
currently limit the possibilities of data exchange between systems. 
4. THE PROPOSED APPROACH 
4.1. The planning and implementation of large scale computer projects take many years. The 
coordinated development of computerized administrative procedures is a particularly 
complex project. Because of the problems and constraints mentioned in section 3 above, 
the only feasible way of meeting Community requirements is through close cooperation 
between the Member States and the Commission, a larger degree of systems harmoniza­
tion, the adoption of common standards, and an effective coordination of individual 
development projects. In addition, close cooperation with trade interests is essential to 
provide for the necessary interfaces with trade systems. Under this approach the Commis­
sion and the Member States need to work together, in consultation with trade interests 
where appropriate, to agree on the functions and facilities (') to be incorporated in their 
systems and the standards to be used, and then progressively implement them as soon as 
reasonably possible in accordance with an agreed timetable. 
4.2. Fortunately, this approach is feasible for a number of reasons. Firstly, the majority of the 
functions performed by these systems are governed by Community regulations and proce­
dures and, consequently, have essentially common requirements. Secondly, computer sys­
tems are upgraded from time to time to take advantage of improved technology. It is 
therefore possible to incorporate substantial new facilities smoothly over time without the 
unacceptable cost penalties which would be incurred if systems and plans had to be dis­
carded prematurely and be replaced by totally new ones. Furthermore, Member States 
customs administrations recognise the benefits to be achieved through coordination and 
standardisation in the computer field and, in particular, from an interconnection of 
administrative systems with the computer systems operated by traders. The benefits are 
also recognized by traders. 
4.3. In addition, the technological explosion which has taken place in the informatics field 
over the past five years has produced the tools required to meet Community require­
ments. System to system interconnection and interfaces with traders systems, which 
would have been impracticable a few years ago, are now clearly feasible. Such systems 
are already operational in the private sector in some Member States as a result of the 
development of data interchange standards in the United Nations and the growing avail­
ability of public data networks. Virtually all requirements for data interchange will be 
covered by international standards over the next few years. Furthermore, the hardware 
costs of providing computing facilities continue to fall (2); and the standardisation of 
Community requirements will enable software costs to be shared. All these developments 
provide totally new opportunities which can be exploited to meet Community require­
ments. 
4.4. In the light of the foregoing considerations, it is proposed that the Commission and the 
Member States should jointly undertake a development programme covering the specifi­
cation of the functions and facilities to be built into future systems, the standards to be 
adopted, and their implementation in accordance with an agreed framework and time­
table. This proposal is explained in detail in the following sections. 
(') See Glossary at Annex 1. 
O Projections, based upon the cost records of the US Institute of Electrical and Electronic 
Engineers (IEEE) for 1960-80, indicate that by 1990 the cost of computing power, in terms of 
the processing that can be carried out in a given time, will be reduced by comparison with 
1980 by a factor of about 8 for main frame computers and about 15 for minicomputers. 
No C 15/8 Official Journal of the European Communities 16. 1. 85 
5 OUTLINE COMPUTERIZATION FRAMEWORK 
5.1. In this section and the associated annexes, the Commission sets out its initial proposals 
tor an outline computerization framework designed to meet the requirements of section 2 
above. For the purposes of its proposals, the Commission makes a logical distinction 
between intra-Community trade, imports and exports but in practice these will be devel­
oped as part of a total system and should, therefore, be regarded as three major 
sub-systems. 
5.2. Intra-Community trade sub-system 
5.2.1. Preliminary observations 
5.2.1.1. As a result of its studies, the Commission is convinced that, if intra-Community trade is 
to be facilitated to the maximum, it will be necessary in the future to make a clear distinc­
tion between exports to third countries and 'exports' from one Member State to another. 
It further believes that a considerable reorientation of thinking will be required. 
5.2.1.2. The Single Administrative Document (S.A.D.) is an important first step in this direction. 
The overall data requirements for goods in intra-Community trade have been reduced 
and harmonized. The concept of data provided by the exporter being used to facilitate 
clearance in the importing Member State has also been advanced. The processing of the 
S.A.D. will now have to be integrated into the computerized procedures to be developed 
to handle intra-Community trade. This requirement will continue to exist until such time 
as the S.A.D. can be replaced by a very simple control document when system to system 
data exchange is introduced. 
5.2.1.3. More work is required to define the overall user requirements and, consequently, it is not 
yet possible to specify in detail the functions and facilities for the intra-Community trade 
system. At this stage, therefore, the Commission can only present broad ideas on possible 
approaches for the Intra-Community trade system. 
5.2.2. Possible approaches 
5.2.2.1. The final objective is to abolish completely special controls on intra-Community trade 
and to assimilate such trade to intra-Member State trade. In order to reach this objective 
completely, it will be necessary to harmonize or substantially modify Member States' fis­
cal and other requirements. This objective is, consequently, one which can only be 
achieved in the long term. 
5.2.2.2. In the meantime, it will be necessary to rationalise still further intra-Community trade 
procedures. The Commission believes that the flow of information in intra-Community 
trade will need to be regarded as a total system and that three possible approaches which 
could, perhaps, co-exist need to be examined. 
5.2.2.3. The first approach is to widen the application of simplified procedures currently granted 
to 'authorised traders' and apply them in a consistent manner in all Member States so as 
to cover the complete export/transit/ import operation. The information required on 
arrival of goods in free circulation would be limited to what is required to enable the cus­
toms to decide whether a detailed examination of documents or goods is required and to 
satisfy themselves that the full data will be provided within a specified period. Two stage 
entry procedures are relatively inefficient under manual systems, in that they require cer­
tain of the data to be presented twice and it is difficult to organise the follow up neces­
sary to ensure that the full data is provided on time. With computerized systems, this is 
much less of a problem. Data presented at the first stage can be added to later without 
duplication and the follow-up can be done by computer. The facilities can be withdrawn 
if the trader does not respect his obligations to present the complementary information on 
time. 
16. 1.85 Official Journal of the European Communities NoC 15/9 
5.2.2.4. The second approach is for exporters to provide, on an optional basis, the data necessary 
for import clearance at the moment when the goods are despatched. The benefits of so 
doing, e.g. the quicker settlement of their accounts, would however need to be demon­
strated in order to facilitate acceptance of the latter concept. 
5.2.2.5. The third approach is to establish simplified procedures for the generality of goods which 
are not subject to special customs requirements and which are owned or carried by traders 
who are registered under a Community scheme. 
5.2.2.6. The Commission intends to examine the feasibility of each of the above approaches. In 
this context it will be necessary to cover the handling of all elements of data provided for 
in the S.A.D., including those required for national purposes. Otherwise, the facilitation 
anticipated from the rationalisation of Community data handling requirements could 
well be frustrated by the maintenance of incompatible national requirements. 
5.2.3. Data interchange 
5.2.3.1. The French authorities proposed in a memorandum of 24 February 1983 that customs 
computer systems should be interconnected and that they should be used, in effect, as an 
electronic 'poste restante' system. Data entered into the system of the Member State of 
export would be transferred rapidly to the importing Member State using modern batch 
file transfer techniques. The time between departure of the goods and data transmission 
would need to be short to take account of cases where journey times were short. The data 
transmitted would, in effect, be that contained on copies 5/6/7 of the SAD. Consign­
ments would be accompanied by a document bearing a unique identifier. Once this iden­
tifier was available to the importer or his forwarding agent, he would be able to interro­
gate the file in the importing Member State, call up the data and amend or add to it as 
necessary in order to make his import declaration. This would enable the customs clear­
ance procedures to be expedited. In addition, this system would provide for Phase II of 
the Community Transit discharge system. 
5.2.3.2. The Commission will examine this and other possible methods of data interchange 
between Member States. It will also examine and establish with Member States the 
requirements for interchange of data between national customs computer systems and 
other governmental systems, such as fiscal systems, in order to facilitate intra-Community 
trade. The Commission will present proposals in due course in the light of its detailed 
conclusions on the user requirements. 
5.3. Third country trade sub-systems 
5.3.1. Imports 
It is proposed that the systems dealing with imports from third countries should be made 
up of the functions and facilities listed at annex 2. These cover a large number of func­
tions and facilities which have already been integrated to varying degrees into the cus­
toms entry processing systems of a number of Member States. In addition, however, they 
include a number of functions necessary for Community purposes which, as a general 
rule, have not so far been fully automated. These include tariff quota management, 
import licensing control and import surveillance. The list also includes a module relating 
to simplified procedures. Such procedures using 'schedules' of data have been introduced 
in Member States to avoid the need for transaction by transaction processing. The Com­
mission supports these procedures and considers that their use should be extended wher­
ever possible. It considers, however, that the application of computerized scheduling 
procedures should be harmonized so as to provide traders in all Member States with com­
parable facilities. 
No C 15/10 Official Journal of the European Communities 16. 1. 85 
5.3.2. Exports 
The systems dealing with exports to third countries should be made up of the functions 
and facilities listed at annex (2). Hitherto, most Member States have tended to give low 
priority to the development of computer systems covering exports. This is largely because 
export declarations tend to be mainly of statistical interest and less complicated to deal 
with than import declarations, and simplified scheduling procedures have also been 
introduced. The Commission considers that the use of simplified procedures for exports 
should be extended in the same way as for imports. In developing computerized export 
procedures, whether normal or simplified, it will be necessary to provide for the effective 
application of export controls laid down by Community law. 
5.4. Trader Interface Requirements 
5.4.1. It is clear from the work done so far that the interlinking of customs systems with those of 
traders will be an important feature in the future. In order that customs administrations 
and traders should obtain the full benefits from the new systems as early as possible, 
priority should be given to establishing the user requirements for trader interface systems 
to provide for direct trader input of data. These will have to cover computer links with 
large importers and exporters which handle their own customs clearance, and with for­
warding agents, airlines, port and airport authorities and inland transport systems. The 
Commission considers that it will be necessary for future systems to provide for the fol­
lowing types of interfaces. The types of interfaces which are appropriate may, however, 
vary depending upon whether simplified or normal procedures are being used by parti­
cular traders. 
5.4.2. Trader's computer/Customs computer 
Interconnection of traders' and customs computer systems will enable data required for 
customs declarations to be selected from data already available in traders 'main frame' 
systems for commercial purposes. The data will be transmitted directly to customs, vetted, 
accepted if they pass the necessary validity and credibility checks, or referred back to the 
trader if there are apparent errors. This approach is considered to be the most efficient 
both from the trader's and the customs' point of view. As an alternative to direct systems 
interconnection, the exchange of data on magnetic media can also be envisaged in some 
circumstances. 
5.4.3. Trader intelligent terminal/customs computer 
This option enables the trader to use a microcomputer as a terminal for inputting data to 
the customs system as well as for his own commercial requirements, such as accounting, 
stock control, word processing. The degree of systems integration is much less than under 
the first option. Nevertheless, this is an efficient approach which will be attractive to 
smaller firms whose operations do not justify a main frame computer. 
5.4.4. Trader dumb terminal/customs computer 
Until now this has been the normal approach for traders to interface with customs sys­
tems. This approach has the advantage of being relatively simple but the disadvantage 
that the use of the equipment is limited to inputting data into, and receiving data from, 
the customs systems. The approach will continue to be justified where there are sufficient 
volumes of data to be exchanged with customs to keep the equipment well loaded and 
the trader's other activities cannot be computerized in an integrated system. 
5.4.5. Bureau service/customs computer 
Experience shows that it is inefficient for customs to operate manual entry processing 
systems alongside computerized ones. It therefore follows that 'bureau' facilities may 
16. 1.85 Official Journal of the European Communities NoC 15/11 
need to be provided for private persons or small traders who make entry only occasion­
ally. 
5.4.6. Type of interfaces 
The types of interfaces to be provided must be left to Member States since they are best 
able to judge requirements in the light of local conditions. 
5.5. Commission systems 
The functions and facilities to be provided by Commission systems are outlined at 
annex 4. They will include facilities to process data received from Member States, to 
transmit data to Member States, on line enquiry facilities enabling the Member States to 
have access to Commission data bases, and message handling facilities. Where appro­
priate, access to the data bases will be extended to traders, e.g. information on tariff clas­
sification and the operation of customs offices. 
5.6. Systems interconnection 
5.6.1. The technical details of the requirements for system interconnection cannot be estab­
lished until the user requirements for the functions and facilities of the new systems have 
been prepared and anticipated data flows and volumes calculated. Once this has been 
done, agreement can be reached with the PTTs on the telecommunications services 
needed to meet the requirements. Nevertheless, the requirements can be tentatively out­
lined as follows. 
5.6.2. Trader/customs 
5.6.2.1. Batch transfers of files containing customs declarations and the return of error messages 
and other information from the customs system. 
5.6.2.2. Interactive communications for the processing of customs declarations on a transaction 
by transaction basis. 
5.6.3. Customs/other departments 
5.6.3.1. Batch transfers of import and export data to agricultural, fiscal and statistical depart­
ments. 
5.6.3.2. Real time transfers of data for fiscal and licence control purposes. 
5.6.4. Member State/Member State 
5.6.4.1. On line batch file transfers of 'export' data and of Community transit data. 
5.6.4.2. Real time exchanges of data required for mutual assistance and other purposes. 
5.6.5. Commission/Member States 
5.6.5.1. Batch transmission to the Commission of files of data relating to imports under tariff 
quota and ceiling arrangements, as well as imports of goods subject to specific import 
limits or under close surveillance, and anti-fraud data. 
5.6.5.2. Access by Member States to Commission data bases e.g. quota management, anti-fraud, 
tariff classification, etc. 
No C 15/12 Official Journal of the European Communities 
5.6.5.3. Receipt by Member States of data from the Commission, e.g. agricultural levy rate 
changes, TARIC II changes, consolidated quota data, etc. 
5.7. Information Technology (IT) Standards 
5.7.1. In order that the computer systems used by the Commission and the Member States can 
be interconnected it will be necessary for both hardware and software to incorporate a 
wide range of international IT standards. Many standards are already well established 
and proven in practice, others are emerging rapidly. 
5.7.2. Action necessary to ensure the timely availability of these standards is being taken by 
CEN/CENELEC, the European Institutions for standardisation. In July 1984 CEN/ 
CENELEC established a work programme aimed at: 
5.7.2.1. harmonizing the use of international IT standards by its members on the basis of avail­
able internationally agreed standards, draft standards and standard-like documents; and, 
5.7.2.2. identifying and establishing standards in cases where no international results are avail­
able but where standards are urgently required. 
5.7.3. The objective of the above programme is to enable users to have a wide choice of IT 
equipment from different manufacturers which can be interconnected and communicate 
with each other using protocols compatible with the 7 layer O.S.I. (Open Systems Inter­
connection) model of the International Standards Organisation. 
5.7.4. CEN/CENELEC will establish common procedures for certification in the IT area which 
will make use of the long experience for certification of conformity for hardware and the 
reference testing service study on the software side. Certification will be started immedia­
tely (although to a limited extent) and will be gradually extended to all other areas once 
final standards (including test methods) are available. 
5.7.5. CEN/CENELEC propose also to collaborate with CEPT(') so that telecommunication 
specifications will be put, where appropriate, into the standards-making machinery to 
achieve the acceptance and use within Europe of internationally agreed standards. 
5.8. Data Interchange Standards 
5.8.1. TARIC II 
TARIC II, the new integrated tariff/statistical system which is currently scheduled to be 
implemented on 1. 1. 87, is a key element in the development of efficient data exchange 
between traders and customs, customs and the Commission and between customs ser­
vices. The Commission has developed a computerized system, using data base manage­
ment techniques, to enable it to manage TARIC II. This system is already partly opera­
tional and ways of interfacing it with the computerized tariff management systems of the 
Member States are currently being studied. 
5.8.2. Syntax Rules 
5.8.2.1. In order for Member State customs services to exchange information with traders, with 
the Commission and between themselves, common syntax rules will be required. A num­
ber of proposals for international trade data interchange syntax rules are currently under 
(') CEPT: Conference Europeenne de Postes et Telecommunications 16. 1.85 
16. 1. 85 Official Journal of the European Communities No C 15/13 
discussion in the Trade Facilitation Working Party of the Economic Commission for 
Europe (ECE) but as yet there is no international agreement on a single standard. 
5.8.2.2. The trade facilitation bodies of the United Kingdom and France (SITPRO and SIM-
PROFRANCE) are currently trying to agree on common rules based on two of the draft 
standards under discussion in the ECE. The Commission expects this work to be com­
pleted successfully by the end of 1984. Provided that it is satisfied that the results meet 
Community requirements, the Commission will propose the adoption of these rules as a 
Community standard. If no satisfactory agreement is reached the Commission will make 
further proposals. 
5.8.2.3. The Commission also envisages that the standard adopted for Community purposes will 
be presented for registration as a full international standard. 
5.8.3. Data Elements Directory 
5.8.3.1. It will also be necessary to have a directory specifying all the data elements to be used for 
trade data interchange within the Community. A Trade Data Elements Directory 
(UNTDED) has been prepared by the ECE and this will provide the basis for a directory 
to meet Community requirements. These standards, together with TARIC II, will form 
the cornerstones of future data exchange systems. They need to be taken into account as 
early as possible in the design of customs and traders systems and a high priority has, 
therefore, to be given to this activity. 
5.8.3.2. In addition to specifying the data elements, it will be necessary to assign codes to them. 
In doing so, it is proposed to use internationally agreed codes wherever possible. The 
work on codes will draw on and expand on the work already done in the context of the 
Single Administrative Document. In order to meet the planning requirements of certain 
Member States, the structure and maximum length of all the codes (but not necessarily 
the codes themselves) will have to be defined by July 1985. 
5.8.4. Standard Messages 
Whilst the trade data syntax rules will enable unstructured messages to be transmitted, it 
will be necessary on grounds of efficiency to use standard structured messages. The defi­
nition of the content of structured messages also needs to be assigned a high priority for 
the same reasons as for data elements. 
5.8.5. Processing Codes 
In order to facilitate the processing of customs data, it will be necessary to establish codes 
to identify the appropriate customs regime and whether the goods are subject to special 
customs treatment. 
5.8.6. Standards Maintenance 
Once trade data interchange standards are laid down for Community purposes it will be 
necessary for them to be permanently maintained. A certain amount of the responsibility 
for maintenance will fall upon the relevant international bodies, to the extent that the 
Community uses international standards. Nevertheless, the Commission will need, on 
behalf of the Community, to liaise with the international bodies and to maintain those 
elements of the standards which are unique to the Community. 
6 OBJECTIVES AND PRIORITIES 
6.1. For the purposes of the work described in the preceding section, it is essential to lay down 
objectives for the project. In addition, priorities must be established for design and imple­
mentation work. 
NoC 15/14 Official Journal of the European Communities 16. 1.85 
6.2. The majority of customs systems are designed to collect data, account for revenues and to 
guard against risks of fraud. All customs services are faced with ever increasing work­
loads and shortages of staff. The Council has already recognised the need to simplify, 
unify, and accelerate customs procedures, as well as harmonizing them to the greatest 
possible extent in order to ensure equality of treatment for traders in all Member States. 
The computerization of all customs procedures will become increasingly feasible, both 
technically and economically, in the coming years. 
6.3. With the foregoing factors in mind the Commission considers that the following design 
objectives and priorities should be adopted for the CD. project. 
6.4. Design objectives 
6.4.1. Computerize all customs import clearance operations involving intra-Community trade 
as well as trade with third countries, so as to improve the efficiency of customs operations 
and security at external frontiers, and provide equality of treatment for traders in all 
Member States. 
6.4.2. Computerize all customs export clearance operations, covering intra-Community as well 
as third country trade, so as to improve the efficiency of customs operations and provide 
equality of treatment for traders in all Member States. 
6.4.3. Interlink Member States' customs systems with one another and with Commission sys­
tems so as to improve efficiency, help to combat fraud and facilitate intra-Community 
trade. 
6.4.4. Maximise the interlinking of customs systems with those of traders, so as to increase effi­
ciency and reduce overall costs on both sides. 
6.4.5. Maximise the use of interactive validity and credibility checks so as to minimise the risks 
of data errors or fraud and reduce the need for costly 'post facto' documentary checks. 
6.4.6. Maximise the use of computerized 'mutual assistance' systems to enable customs services 
to combat fraud. 
6.4.7. Maximise the use of computerized selection routines to enable customs staff to concen­
trate their attention on high risk consignments. 
6.4.8. Maximise the use of computerized 'enquiry' systems to provide information to customs 
staff and traders to help them resolve queries relating to the application of Community 
regulations. 
6.4.9. Optimise systems for providing urgent data required by Community regulations by inte­
grating the necessary data capture and processing functions directly into customs entry 
processing systems. 
6.4.10. Optimise systems for providing routine trade statistics by integrating the collection of 
basic trade statistics data directly into customs entry processing systems. 
6.4.11. Optimise the application of agricultural policy regulations applying to imports and 
exports by integrating CAP requirements into customs entry processing systems where 
appropriate. 
6.4.12. Optimise the application of fishery policy regulations applying to imports by integrating 
fishery policy requirements into customs entry processing systems where appropriate. 
16. 1.85 Official Journal of the European Communities No C 15/15 
6.4.13. Optimise the processing of fiscal information on imports, intra-Community trade and 
exports by linking customs entry processing systems with domestic fiscal systems. 
6.4.14. Optimise the design of data processing and data interchange programs so as to accommo­
date frequent changes in regulations, procedures and data requirements. 
6.4.15. Maximise the use of computerized documentary filing and retrieval systems so as to min­
imise the use of expensive manual sorting and filing. 
6.5. Priorities 
6.5.1. Because of the importance of the correct application of Community regulations to third 
country trade, the interdependence of customs entry processing systems covering third 
country and intra-Community trade and the existence of operational systems or plans in 
an advanced state of implementation, it is not possible to give absolute priority to intra-
Community trade systems. However, the greatest priority which is practicable should be 
given to the following: 
6.5.2. Intra-Community trade functions and facilities 
This covers the development of computerized systems to meet the requirement of facili­
tating intra-Community trade. The development of these functions and facilities will, 
however, depend very largely on the preparation of user requirement statements for 
intra-Community trade. 
6.5.3. Implementation of Systems 
As previously indicated, Member States have tended to give priority to implementing 
their customs computer systems in those places with the largest volumes of trade without 
specifically taking into account the need to facilitate intra-Community trade. Given that 
computerization clearly facilitates customs clearance, even without the introduction of 
special procedures for intra-Community trade, greater priority should be given to provid­
ing computer facilities in those places which handle the highest volumes of intra-Com­
munity trade. 
6.5.4. Quota management 
Member States have not, as a general rule, computerized the management of tariff quotas 
and ceilings, and goods subject to quantitative limits. As a result, problems have arisen 
because limits have been exceeded. A higher priority should be given to this aspect of 
customs work. The Commission has already computerized its tariff quota management 
system and is ready to automate its exchanges of data with Member States in this field. 
7. COSTS AND BENEFITS 
7.1. There has, in the past, been considerable preoccupation with the cost/benefit aspects of 
customs computerization. It is clearly impossible for the Commission to produce detailed 
cost benefit analyses since the costs will depend upon the approaches adopted by Mem­
ber States in building the agreed functions and facilities into their national systems. The 
costs will also depend upon the timing of the implementation of new systems and the 
cost of equipment at the time of purchase. Furthermore, it must be remembered that the 
majority of Member States have already developed or decided to develop customs com­
puter systems for their own purposes. The incremental cost of providing for the addi­
tional facilities needed to meet the specific Community requirements resulting from this 
project, and which have not already been provided for in existing plans, should be rela­
tively small. Furthermore, Member States receive 10% of the yield from customs duties 
and agricultural levies to cover their administrative costs. This provides in the region of 1 
NoC 15/16 Official Journal of the European Communities 16. 1.85 
billion ECUs per year (se'e annex 5). A proportion of this money can readily be assigned 
to the computerization of customs procedures since this will result not only in a more 
effective implementation of Community requirements but also in an improvement in the 
efficiency of national customs administrations. 
7.2. Whilst it is impossible to produce cost estimates, experience in the majority of Member 
States has shown that comprehensive entry processing systems are cost justified, particu­
larly if direct trader input is provided for and trade statistics data are produced as an out­
put from the customs system. Given the projections already mentioned based upon the 
IEEE figures, and the continuing increase in the cost of manual data processing, the 
cost/benefit ratios can only improve. 
7.3. Although it is not possible to quantify the potential benefits of computerization these can 
be assessed in qualitative terms. Of particular importance are the improvements in the 
prevention and detection of fraud which can be expected as a direct result of computeri­
zation. The summary of qualitative benefits at annex 6 demonstrates the benefits which 
may be expected. The summary reflects not only thinking within the Commission but also 
the views of a wider public in the Permanent Technical Committee of the Customs 
Co-operation Council (CCC). 
7.4. In any event, cost/benefit analyses tend to be largely theoretical and do not always take 
into account all relevant factors, and in particular political ones. In the present case the 
Council has already signified its preoccupations with the problems of intra-Community 
trade and its intention to see them solved through the computerization and interconnec­
tion of customs computer systems. In the final analysis, political will and political deci­
sions are likely to be the determining factors. 
8 INDICATIVE IMPLEMENTATION TIMETABLE 
8.1. At this stage it is clearly impossible for the Commission to propose a precise timetable for 
the development and implementation of the new systems. As previously indicated, user 
requirements have to be specified and a great deal of systems analysis needs to be done. 
Furthermore, some Member States are much more advanced than others and, as a conse­
quence, they will be moving at different rates towards the common goal. 
8.2. Certain Member States are already in the late stages of planning or implementing new 
systems and may find it impossible for the time being to take account of Community 
requirements which have not already been adequately specified. They will have to modify 
their systems to incorporate agreed functions and facilities as soon as they can. They will 
also have to modify their systems to apply new standards which are agreed in the future. 
8.3. Those Member States which are less advanced in the development of their customs sys­
tems will be able to benefit from the experience of the more advanced ones. The Commis­
sion welcomes the fact that certain of the former have indicated that they envisage the 
possibility of implementing a version of a system already operational in another Member 
State. The Commission considers that it is in the Community's interest for the more ad­
vanced Member States to provide technical assistance to the less advanced, in order to 
achieve the objectives set out in this communication. This will enable them to introduce 
advanced features, including direct trade input, at an early stage and thereby make up 
some of the lost ground. 
8.4. On the basis of its enquiries in the Member States, the Commission is satisfied that it 
should be possible for them to complete the bulk of the development and implementation 
of their customs systems by the end of the decade, given the political will demonstrated 
by the Council Resolution. Once Member States have developed their systems to a suffi­
cient degree it will be possible to begin interlinking them before the coverage of the sys­
tems within Member States is complete, and before all Member States have completed 
16. 1.85 Official Journal of the European Communities NoC 15/17 
their development work. The implementation of certain elements of the intra-Community 
trade sub-system could be expected in 1987/88. The completion of the sub-system 
through the progressive interconnection of Member States' systems could be expected to 
start from about 1988 and be completed no later than 1992. 
8.5. Trials involving the Commission and a limited number of Member States, to test out con­
cepts and standards, could be expected to be implemented in the period 1985-87. These 
could include urgent data exchanges between Member States and Commission, data 
exchange between Member States, and the discharge of Community Transit transactions. 
8.6. In the light of the foregoing the Commission proposes that the following indicative time­
table should be adopted. It will be updated and expanded in the course of the project. The 
timetable is intended merely to show the periods during which particular activities will be 
undertaken and does not indicate priorities. Work will begin immediately on the design 
of the intra-Community trade sub-system and the highest priority will be accorded to the 
development of this sub-system. 
INDICATIVE IMPLEMENTATION TIMETABLE 
84 86 87 92 93 
Systems analysis 
and design 
Develop Data 
Interchange standards 
Implement Taric II 
Trials 
Implement Import Sub-System 
Implement Export Sub-System 
Implement 
C.T. Phase I 
Implement Intra-Community Trade Sub-System 
Implement 
C.T. Phase II 
No C 15/18 Official Journal of the European Communities 16. 1. 85 
8.7. In section 9 the Commission sets out its proposals for a work programme aimed at pro­
viding the functions and facilities specified in the outline computerization framework in 
accordance with the indicative timetable. 
9. WORK PROGRAMME 
9. t. Introduction 
9.1.1. As previously indicated, the 'coordinated development' project is a particularly complex 
one for a number of reasons. These include differences in organisation and responsibili­
ties at Member State level; unharmonized requirements and procedures; varying levels of 
computer development and experience which will result in Member States implementing 
the new systems in different ways over differing timescales; the absence of common stan­
dards; diffused lines of communication and decision-taking; and, last but not least, dif­
fering languages. 
9.1.2. In the light of the foregoing, the Commission proposes the following working methods, 
work programme and organisational structure which take account of the above problems. 
9.2. Working methods 
9.2.1. The project will be divided into stages. Stage 1 will cover the specification and agreement 
of the functions and facilities to be included in the new systems; the production and 
agreement of user requirement statements and systems descriptions (') for each of the 
agreed functions and facilities; the preparation and agreement of data interchange stan­
dards; and trials involving the Commission and a limited number of Member States 
aimed at testing systems concepts and standards. The subsequent stages will cover the 
preparation and agreement of systems specifications, programming, testing and finally 
implementation, including the implementation of standards. The stages are logical not 
physical ones and it is expected that work will begin on the latter stages before the stage 1 
is complete, at least so far as certain Member States are concerned. 
9.2.2. Since the latter stages are activities which depend largely on the progress of stage 1, the 
Commission has limited its current proposals to stage 1 which will cover the period 
broadly until the early months of 1987. Further proposals for the latter stages will be 
made in due course. 
9.2.3. In undertaking the work in stage 1 the Commission will adopt the following approach. 
For relatively new development areas such as intra-Community trade and quota manage­
ment, the Commission will present draft proposals for discussion based upon its own 
analysis of the user requirements. In the case of the functions and facilities to be included 
in the third country import and export systems, which have already been implemented to 
varying degrees in certain Member States, a pooling of knowledge and experience will be 
required. In these cases, the starting point will be the detailed analysis of requirements 
already done by these Member States. The Commission will aim to identify the common 
features of existing Member State systems and use these as the basis for its proposals. 
This will avoid duplication of effort and help to ensure that the work is completed 
quickly. 
9.2.4. A further aspect of the working methods concerns the statements of user requirements 
and system descriptions. Because Member States have adopted differing solutions in 
developing their computer systems, the Commission considers it necessary to produce 
'ideal' statements. That is to say, that the definitions of the user requirements should be 
as complete as possible and the systems descriptions should define the best way of meet­
ing the requirements, without being constrained by existing computerized solutions. In 
(') See Glossary at Annex 1 
16. 1.85 Official Journal of the European Communities NoC 15/19 
preparing the statements, the elements would be classified into essential and optional. 
This would give each Member State, and the Commission where appropriate, the neces­
sary flexibility to implement the system modules (') in the way which corresponds best 
with its own overall systems development requirements. 
9.3. Stage 1 tasks 
9.3.1. The tasks to be completed in Stage 1 of the work programme are listed and described at 
Annex 7. They cover the six areas identified in Section 5, as well as the legal problems 
mentioned at paragraph 3.6. 
9.3.2. At the present time it is difficult to estimate with any precision the resources and the time 
required to complete this work. This is partly because the extent to which analysis and 
design work already done by certain Member States can be used is unknown, and partly 
because the amount of time required to discuss and agree Commission proposals cannot 
be clearly estimated. Nevertheless, a provisional programme for stage 1 is provided at 
Annex 8. The programme covers the period up to early 1987. 
This assumes that the Commission will have at its disposal the necessary staff; that Mem­
ber States will collaborate actively and closely in the work; and that the political will 
demonstrated by the Council Resolution will result in priority being given to the project 
and decisions being taken within agreed timescales. 
9.4. Organisational structure 
In view of the importance and complexity of the project it will be essential to ensure that 
the work is properly organised and managed. Detailed proposals for an organisation and 
management structure are, therefore, set out at Annex 9. 
9.5. Staffing 
The Commission needs to recruit at least four high-calibre and experienced customs sys­
tems analysts for the CD. Project. Without these staff the Commission cannot perform its 
functions and the project cannot be pursued. The problem of staff has two elements — 
posts and people. Hitherto the Commission has, as a stop gap, obtained a limited number 
of customs analysts under special arrangements with their national departments. For var­
ious reasons this has become increasingly more difficult to organise. The only satisfactory 
solution to this problem is for the Commission to be provided with temporary posts. Pro­
posals for such posts are being made within the normal budgetary context and the Com­
mission expects the Council, having regard to the political importance and complexity of 
this project, to grant these posts without delay. The granting of posts will not, however, 
solve all the problems. Staff with the right qualifications and experience are in very short 
supply and the Commission has experienced great difficulty in persuading Member 
States to release suitable individuals. The Commission, therefore, calls on the Member 
States to assist the Commission by presenting suitable candidates to work on this project. 
10. COUNCIL POLICY DECISIONS 
The Commission is convinced that a long term development programme for the 
coordinated development of computerized administrative procedures within the frame­
work of the CADDIA project is essential to meet Community needs. In order to ensure 
the success of the project the Council should take a number of important policy deci­
sions. In the light of the policies already decided in its Resolution of 15 May 1984 and 
having regard to the outline computerization framework at Section 5, the Council is 
invited to: 
10.1. agree that, in order to facilitate the progressive integration of customs operations and to 
ensure equality of treatment for traders in all Member States, the functions and facilities 
provided by customs computer systems should be harmonized; 
(') See Glossary at Annex 1 
NoC 15/20 Official Journal of the European Communities 16. 1.85 
agree the objectives and priorities for computerization set out in Section 6; 
agree that the Commission and the Member States will cooperate closely in preparing the 
user requirements for the functions and facilities specified in Section 5; 
agree the indicative timetable presented at Section 8; 
agree the work programme at Section 9, recognising that until this is agreed the Commis­
sion will continue its tasks under the draft programme in order to avoid delay; 
recognise that the Commission cannot carry out its role without staff with the necessary 
qualifications and experience and agree to give priority to providing temporary posts to 
enable the Commission to recruit such staff. 
ANNEX I 
GLOSSARY 
For the purpose of the proposals contained in document SUD/946/84, the terms listed are 
defined as follows: 
Facility 
A service to be provided by a computer system. 
Function 
A set of operations performed by a computer system which together form a logical entity. 
Sub-system 
A number of related system modules which together form a substantial part of a total system. 
System description 
A statement presenting a logical solution to meet a user requirement and which is not related to 
any specific computer hardware or software. 
System module 
A logical subdivision of a system designed to perform a specific task or tasks. 
User 10.2. 
10.3. 
10.4. 
10.5. 
10.6. 
Any party involved in a customs procedure who exercises control over information required 
under that procedure or requires access to such information. 
16. 1. 85 Official Journal of the European Communities No C 15/21 
User requirement 
A problem statement specifying the requirements of Community legislation or operational and 
other requirements which are to be provided for in the systems design. 
ANNEX 2 
IMPORT SUB-SYSTEM 
1. Goods declaration processing 
1.1. Data capture and validation 
1.2. Conversion routines 
1.3. Valuation control 
— checks on declared values and application of unit values system. 
1.4. Special Customs regimes 
— temporary importation, end use, preferential regimes, inward processing etc. 
1.5. Licence control 
1.6. Quantitative restrictions (Q.Rs.) 
— including textiles and other auto-limitation arrangements. 
1.7. Prohibitions and Restrictions. 
1.8. Quota management 
— tariff quotas and ceilings. 
1.9. VAT 
— interfacing with customs requirements. 
1.10. Excise 
— interfacing with customs requirements. 
1.11. Duty calculation 
1.12. CAP 
— implementation of CAP requirements applied by customs. 
1.13. Accounting 
— traders immediate and deferred payment accounting; 
— own resources accounting. 
1.14. Selection routines 
— selection for special examination of documents and/or goods based on a mixture 
Community, national, local and random criteria. 
2. Simplified procedures 
3. Surveillance 
— extraction of data on sensitive imports. 
4. Trade statistics 
— extraction of data for processing of trade statistics. 
5. Warehousing 
— interfacing of customs import entry processing system and warehousing system. 
No C 15/22 Official Journal of the European Communities 16. 1. 85 
6. Free Ports 
— interfacing of customs import entry processing system with that for control and regu­
lation of goods consigned to/from Free Ports, 
7. Management Information 
7.1. Operational statistics 
7.2. Fraud control 
— Community information requirements. 
7.3. Community data exchange 
— transfer of data to, and receipt from, the Commission of required data and any 
required processing. 
7.4. Member States data exchange 
— exchange of agreed data between Member States. 
8. Audit 
— requirements for auditors at specified levels including audit trails and access to 
system. 
9. Security 
— physical security, measures to ensure protection of the system and its data with 
planned resilience levels. Where full resilience is not available recovery criteria will 
also be included; 
— data security, measures to protect data on file or in transmission against unauthorised 
access. 
10. Inventory Control 
— inventory control modules to be developed in places where the necessary 
co-operation from the various trade interests is ensured. 
11. Member States National Requirements 
— indicative list without detailed specification. 
ANNEX 3 
EXPORT SUB-SYSTEM 
1. Goods declaration processing 
1.1. Data capture and validation 
1.2. Conversion routines 
1.3. Special Customs export regimes 
— temporary exportations etc. 
1.4. Licence control 
1.5. CAP 
— implementation of CAP requirements applied by customs. 
1.6. Prohibitions and Restrictions 
1.7. Excise duties 
— interfacing with customs requirements. 
1.8. VAT 
— interfacing with customs requirements. 
Official Journal of the European Communities No C 15/23 
2. Simplified procedures. 
3. Export trade statistics. 
4. Management Information 
4.1 Operational statistics 
4.2 Fraud control 
— Community information requirements 
4.3 Community data exchange 
— transfer of data to, and receipt from, the Commission of required data and any related 
processing. 
4.4 Member States data exchange 
— exchange of agreed data between Member States. 
5. Warehousing 
— interfacing of customs export entry processing system and warehousing system. 
6. Free Ports 
— interfacing of customs export entry processing system with that for control and regu­
lation of goods consigned from/to Free Ports. 
7. Audit 
requirements for auditors at specified levels including audit trails and access to 
system. 
8. Security 
— physical security | > as for import sub-system. — data security J 
9. Inventory Control 
— inventory control modules to be developed in places where the necessary 
co-operation from the various trade interests is ensured. 
10. National Requirements 
— indicative list without detailed specification. 
ANNEX 4 
COMMISSION'S SYSTEMS, FUNCTIONS AND FACILITIES 
The following functions and facilities provided by Commission systems are of particular relev­
ance to the CD Project. Some are fully or partially operational; others are planned or envisaged. 
The functions and facilities listed are ones managed by the Customs Union Service (CUS). Fur­
ther detail on most of the systems is provided in Section 5 and Annex B 2 of COM(84) 119 Final 
dated 13 March 1984 — the Commission's Communication to the Council on CADDIA. 
The following list of functions and facilities is not exhaustive. It will be completed or modified as 
additional user requirements are specified in the course of the project. In this context the interre­
lationship between Member State customs systems and the systems managed by the Commis-
NoC 15/24 Official Journal of the European Communities 16. 1.85 
sion's Directorate General for Agriculture and the Statistical Office of the European Communi­
ties will be examined. 
1. Tariff quota control 
For management of GSP and other quotas and ceilings. System already operational. 
2. Textile control 
For negotiation and management of bilateral agreements under MFA. System already 
operational. 
3. Duty Free imports of scientific equipment 
For management of duty free arrangements provided for under UNESCO Convention. 
System ('RAPID') already operational. 
4. Unit values 
For management of system of average values for customs valuation of perishable fruit and 
vegetables. System already operational. 
5. List oj customs offices 
System providing information on ±3 000 customs offices authorised to handle Com­
munity Transit operations. System partly operational. 
6. TARIC Management System 
For management of Community integrated tariff/statistical instrument — TARIC II. Sys­
tem in process of implementation. 
7. Chemical repertoire 
For management of repertoire of ±20 000 chemical denominations in all Community lan­
guages. System already operational except for Greek. 
8. Customs Information System 
Information system for purposes of customs classification and other aspects of customs 
work. System under development. 
9. Fraud control 
Facilities to analyse data required for anti-fraud operations and to provide generalised 
mutual assistance data base. Facilities partly operational (origin fraud), remainder under 
development or to be studied. 
10. TARIC Interface 
System to interface Commission TARIC management system with computerised tariff 
management systems of Member States. Feasibility study nearing completion. 
1 i. Message handling 
Generalised message handling facilities for communications with Member States adminis­
trations, including electronic mail. (Part of generalised facilities to be provided by the 
Commission under the INSIS programme). 
16. 1. 85 Official Journal of the European Communities No C 15/25 
ANNEX 5 
Flat rate refunds to Member States in order to cover expense incurred in the collection of traditional 
own resources 
The following table shows the amounts received by Member States to cover the cost of collection 
of Own Resources. The table gives the 1983 payments and the budget credits for 1984. The 
amounts are calculated in ECUs but, for convenience, their equivalent values in national curren­
cies, based upon the exchange rate at 1.8.1984, are shown. 
1983 
ECUs 
78 177 794 
20 534 811 
243 057 818 
16 290 489 
141981 564 
11 831019 
107 507 904 
466 538 
84 931 543 
223 640 915 
928 420 395 N/CC) 
BEF 
DKK 
DEM 
GRD 
FRF 
IEP 
ITL 
LUF 
NLG 
GBP 3 539 827 970 
168 074 964 
544 507 846 
1 434 247 233 
976 036 644 
8 608 735 
147 785 740 233 
21 124 467 
215 000 804 
131 973 858 
N/C(') 
BEF 
DKK 
DEM 
GRD 
FRF 
IEP 
ITL 
LUF 
NLG 
GBP 3 786 427 821 
178 102 989 
613 476 283 
2 168 474 460 
1 183 426 239 
9 110 065 
182 717 103 350 
21 054 828 
238 648 329 
142 310 953 
1. The Customs Cooperation Council has published two draft guidelines, which were pre­
pared by the Working Party on Customs applications of computers. 
(!) ISO Code 4217 — International Standard Currency Code. Belgium 
Denmark 
Germany 
Greece 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
United Kingdom 
Total 
1984 
Belgium 
Denmark 
Germany 
Greece 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
United Kingdom 
Total ECUs 
83 624 000 
21760 000 
273 844 000 
24 630 000 
172 150 000 
12 520 000 
132 919 000 
465 000 
94 273 000 
241 158 000 
1 057 343 000 
ANNEX 6 
BENEFITS SUMMARY 
No C 15/26 Official Journal of the European Communities 16. 1. 85 
2. The first draft guideline (CCC N. 30.729 E and dated 16. 11. 83) deals with the subject of 
'Computer applications in the field of customs enforcement'. 
3. The second draft guideline (CCC N. 31.566 E and dated 26. 7. 84) deals with the subject of 
interfaces between customs and traders involving interactive data input, transfer and 
retrieval'. 
4. Both draft guidelines summarize the benefits to be gained by the various participants in 
the computerised procedures and they are listed in paragraphs 5 and 6 below. 
5. Extract from CCC document 30.729 paragraph 19 & 20 of Appendix. 
BENEFITS OF AUTOMATION 
The main advantages or benefits associated with the use of ADP techniques for enforce­
ment purposes are: 
Passenger processing 
— centralization of known and suspected or potential threats in one data-base, 
— reduced risk of selection criteria or alert messages being overlooked due to human 
error, 
— reduction in the volume of clerical functions and facilitation of concentration on 
intuitive assessment and effective control, 
— provision of assistance and rapid responses to other enforcement agencies with regard 
to the processing of passengers, 
— production of reliable and timely intelligence data, 
— rapid availability of movement details, 
— availability of accurate up-to-date statistics (e.g. air passenger movements during 
particular time periods) to facilitate more effective staff scheduling, 
— improved co-ordination of investigative action betweri enforcement agencies, i.e., 
Customs, police, immigration, etc., 
— facilitation of passenger movements. 
Goods processing 
— efficient centralization of selection criteria in one data-base, 
— reliable and efficient application of selectivity criteria to Goods declaration data, 
— access to all relevant data concerning owners, suppliers and commodities and avail­
ability of a comprehensive overview of importations, 
— rapid access to current and historical data at national and regional, level and retrieval 
of such data in a user-suitable format, 
— provision, within information retrieval systems, of totalling facilities which indicate 
the size of each inquiry and the effectiveness of control methods, 
— provision of statistics for planning and management information purposes, and, of 
particular importance, rapid provision of information for use in investigations, 
— provision of an important tool for judging and controlling trade and for Customs 
enforcement purposes, 
— creation of a higher level of enforcement-related procedural activity, 
— facilitation of the rapid release of goods. 
Automated processing systems can be used both for control purposes, i.e. to assist 
enforcement agencies in the processing of passengers and goods, and for facilitation pur­
poses, i.e. to facilitate the movement of passengers and goods in international trade. 
16. 1.85 Official Journal of the European Communities No C 15/27 
6. Extract from CCC document 31.566 paragraph 27: 
BENEFITS 
Benefits identified as a result of using DTI techniques are summarized hereunder: 
General 
— generalized interfaces between Customs and traders are mutually beneficial in furth­
ering stream-lined cost effective control of procedures related to Goods declarations, 
movements of goods and Customs clearance, 
— reduction of time and work involved in the Customs clearance of cargo, 
— linking of traders with Customs systems avoids double investment and double key­
ing, 
— DTI allied with automated selectivity systems results in quicker, more efficient data 
processing and clearance procedures, 
— improved accuracy of Customs entries^ 
— standardized entry preparation and processing, 
— quicker transfer of data between traders and Customs via data transmission, 
— system flexibility to meet future changes, 
— increased use of port and transport facilities, 
— expedition of the clearance procedure, 
— reduced costs by avoiding double data input, 
— staff savings in the longer term or containment of staff increases, 
— reduced paper handling, 
— ability to monitor progress of individual transactions. 
Customs 
— simplified departmental workflow, 
— more accurate entries, 
— reduced investment and a reduced or nil data capture workload as a result of the 
transfer of the data input function from Customs to the private sector, 
— user responsibility for input validity, 
— earlier collection of revenues, 
— enforced application of standards and accuracy with regard to Goods declarations, 
— guaranteed trader correction, prior to the acceptance of declarations, of all errors 
highlighted by validation and credibility checks, 
— more effective control over goods movements as a result of inventory control, 
— economic use of staff, 
— fewer enquiries due to the existence of interrogation facilities, 
— reduced work and fewer incorrect entries as a result of immediate display and correc­
tion facilities, 
— release of personnel for other tasks (e.g., concentration on measures to prevent drug 
smuggling, collection of uncollected VAT, etc.). 
Agents/importers 
— reduced work as a result of immediate detection, display of details concerning Cus­
toms requirements and correction of errors, 
— possibility of rapid processing by inputting data from users' offices where users have 
total access to their own data, 
— ability to correct erroneous entries and gain acceptance of the data input prior to 
submitting documents to Customs, 
NoC 15/28 Official Journal of the European Communities 16. 1.85 
— quicker issuance of removal notes, 
— provisional clearance subject to submission of documents, 
— Customs intervention within a specific time period for a minority of consignments, 
— quicker and more standard cargo clearance times, 
— commercial competitive advantage as a result of quicker clearance procedures, 
— more accurate and quicker entries with less manpower, 
— access to information concerning clearances (for planning and other purposes). 
ANNEX 7 
WORK PROGRAMME 
1. Intra-Community Trade Sub-system 
1.1. Prepare and obtain agreement on the overall approach to be adopted for the facilitation 
of intra-Community trade. 
1.2. Prepare and obtain agreement to statement of User Requirement. 
1.3. Prepare and obtain agreement to System Description. 
1.4. Identify system modules for early development. 
1.5. Assess impact of agreed User Requirement on the Community Transit (CT) computerisa­
tion project proposals. 
2. Import Sub-system 
For each of the functions and facilities specified at Annex 2: 
2.1. Prepare and obtain agreement to User Requirement. 
2.2. Prepare and obtain agreement to System Description. 
3. Export Sub-system 
For each of the functions and facilities specified at Annex 3: 
3.1. Prepare and obtain agreement to User Requirement. 
3.2. Prepare and obtain agreement to System Description. 
4. Experimental Trials 
4.1. Identify suitable subjects for limited experimental trials. 
4.2. Prepare and agree proposals. 
16. 1. 85 Official Journal of the European Communities No C 15/29 
4.3. Implement trial systems. 
4.4. Evaluate results. 
5. Trader Interfaces 
5.1. Prepare User Requirement statements for trader interfaces. 
5.2. Define standards for agreed interfaces. 
5.3. Agree technical specification of interfaces to be provided. 
6. Commission Systems 
6.1. Prepare and obtain agreement to User Requirement statements for Commission functions 
and facilities identified from analysis of Member State and Traders requirements. 
6.2. Review existing and planned Commission systems and identify necessary modifications 
or extensions, including systems managed by DG VI and SOEC. 
6.3. Prepare System Descriptions. 
6.4. Review existing systems documentation to ensure compliance with agreed standards and 
the Data Elements Directory. 
7. Data Interchange Standards 
7.1. System Compatibility 
7.1.1. List computer systems and protocols in use or planned by Member States. 
7.1.2. Identify and evaluate potentially suitable protocols supported by the listed system manu­
facturers. 
7.1.3. Review against projected progress in development of international standards. 
7.1.4. Formulate and agree policy with Member States and if necessary consult CEN/CENE-
LEC on Intercept Standards. 
7.2. Syntax Rules 
7.2.1. Evaluate results of SITPRO/SIMPROFRANCE discussions. 
7.2.2. Accept results or formulate alternative proposals. 
7.2.3. Agree Standard and publish. 
7.3. Data Elements Directory 
7.3.1. Load directory with defined SAD data elements 
7.3.2. Identify other customs data elements in use by Commission and Member States. 
No C 15/30 Official Journal of the European Communities 16. 1. 85 
7.3.3. Compare with UNTDED. 
7.3.4. Resolve discrepancies. 
7.3.5. Publish agreed customs data elements directory as Community Standard. 
7.4. Standard Message Formats 
1A. 1. Update the files developed by CADDIA Preliminary Task Force (PTF). 
7.4.2. Complete review of requirements. 
7.4.3. Design standard formats for messages in compliance with standards set at 7.2. 
7.4.4. Agree and publish as Standards. 
7.5. Standard Codes 
7.5.1. List data elements and code structures used by Member States and Commission in com­
puterised applications (including customs transaction codes). 
7.5.2. Resolve incompatibilities. 
7.5.3 Devise codes, as necessary, for data elements not already coded in context of SAD. 
7.5.4. Agree and publish as Standards. 
7.6. System Interconnection 
For each planned system interconnection: 
7.6.1. Determine range of options available and their compatibility with international or Com­
munity Standards. 
7.6.2. Identify dataflows and frequencies. 
7.6.3. Quantify dataflows and identify peaking. 
7.6.4. Evaluate and agree requirements. 
7.6.5. Agree with PTTs options for communication links. 
7.6.6. Determine standards to be used and publish. 
7.7. Standards Maintenance 
Establish arrangements within Commission for: 
7.7.1. Control and maintenance of Standards. 
7.7.2. Defining the procedures for adoption and publication of Standards. 
7.7.3. Liaison with Member States Standards Officers. 
7.7.4. Liaison with the various Standards bodies. 
7.7.5. Defining procedures for evaluating each Standard in use and ensuring proper control of 
any required modification to that Standard. 
16. 1. 85 Official Journal of the European Communities No C 15/31 
8. Legal Problems and Constraints 
8.1. Identify and study legal problems which constrain the full exploitation of new tech­
nologies. 
8.2. Formulate and agree solutions to these problems with Member States. 
No C 15/32 Official Journal of the European Communities 16.1.85 
5 • = £ — 
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16. 1.85 Official Journal of the European Communities No C 15/33 
ANNEX 9 
WORK ORGANISATION 
The main participants in the project will be the Customs Union Service of the Commission and 
the customs departments of the Member States. Their work will need to be properly coordinated. 
Coordination will be required with departments responsible for agriculture, statistics and I.T. 
standards. Representatives of trade interests will also have to be consulted. It will be necessary to 
make proposals to the Council from time to time and the European Parliament will have to be 
kept informed of progress on the project. 
The work will be undertaken within the overall CADDIA framework. Nevertheless, since the pro­
ject is mainly of interest to the customs sector of the CADDIA population and since a great deal 
of consultation and coordination will be required, it is considered necessary to establish a spe­
cific organisation and management structure for the CD. Project. The normal CADDIA organi­
sational structure and, in particular, the CADDIA Central Unit and the Commission's CADDIA 
Internal Steering Group will, however, be used to ensure that work on the CD. project is properly 
coordinated with other CADDIA activities and that interested departments are involved where 
necessary. Certain of the CD. Project requirements will be provided for within the context of the 
INSIS Project (') and coordination will be ensured through contacts between the Commission's 
CD. Project Management Board and the INSIS Supervisory Board. 
To meet the requirements outlined above, the Commission proposes the organisation and man­
agement structure which is depicted in Figure 1 on the next page and commented on thereafter. 
(') INSIS — Community Inter-institutional Information System. Ref: Commission proposal to 
the Council — COM(84) 380 final dated 3.8.84. 
NoC 15/34 Official Journal of the European Communities 16. 1.85 
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16. 1. 85 Official Journal of the European Communities No C 15/35 
1. Commission level 
1.1. Project Management Board 
A Project Management Board, chaired by the Director General of the Customs Union 
Service has been set up to oversee the project. 
1.2. CD. Project Team 
In order to carry out its responsibilities the Customs Union Service requires a project 
team consisting of high-calibre, experienced customs systems analysts. So far it has not 
been able to set up the specialist team required for this project. The work has therefore, 
had to be done with the assistance of a number of customs analysts who were recruited 
earlier for other projects and who have not been able, consequently, to devote their full 
time to this project. It is difficult to estimate with any certainty the number of staff 
required but the Commission considers that it needs 4 customs analysts to begin Stage 1 
of the CD. Project. It reserves the right to adjust this figure in the light of experience 
having regard not only to Customs needs but also to the needs of other services 
involved in the project. 
1.3. Other interests 
Staff responsible for legislation and procedures need to be closely involved in the pro­
ject. They will work with the project team under the directions of the Project Manage­
ment Board, insofar as the Customs Union Service responsibilities are concerned. The 
project team will work closely with other interested services as necessary. Similar 
arrangements will apply for contacts with European representatives of trade interests. 
2. Member State level 
International organisation within the Member States will be entirely a matter for them 
but it is assumed that they will need an organisation structure similar to that of the Com 
mission. 
3. Commission/Member States (Joint Bodies) 
3.1. In order to ensure effective coordination of the project, the Commission proposes the 
setting up of a Joint Project Management Committee as a sub-committee of the CAD-
DIA Steering Committee proposed in the draft Council Decision on CADDIA (O.J. 
84/C.l 12). It is proposed that this should be chaired by the Director General of the Cus­
toms Union Service and consist of representatives of the Commission and the Member 
States at Director level. The Joint Project Management Committee will be responsible 
for major decisions affecting the organisation and planning and generally steering the 
project. 
3.2. Customs policy questions of a general nature affecting the project will continue to be 
dealt with in the Customs Questions Committee (C.Q.C.) at Director General or 'Depu­
ties' levels, as appropriate. Technical questions will be dealt with in the existing Cus­
toms Committees responsible for questions relating to procedures and in the Computer 
Working Party of the Customs Questions Committee (Deputies). 
3.3. Other policy and technical questions will be dealt with in the relevant agricultural, sta­
tistical or other committees. 
4. Council level 
4.1. The Commission will continue to make formal proposals to the Council where 
important policy decisions are required. 
No C 15/36 Official Journal of the European Communities 16. 1. 85 
4.2. In addition, it is proposed that the Group of Senior Officials, which was set up in the 
context of the Single Administrative Document project, should play a similar role for 
the CD. Project. It is suggested that this Group should meet at least once every three 
months to discuss progress. 
5. European Parliament 
The Commission, at the request of the European Parliament, has promised to present 
regular progress reports on the CADDIA project. Since the CD. Project represents a 
significant part of the CADDIA project and is of particular interest to the European 
Parliament, these reports will include information on the work of the CD. Project.