COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(92) 328 final 
Brussels, 22 July 1992 
Proposal for a 
COUNCIL REGULATION (EFm 
ON MEASURES TO ADAPT THE PROFESSION OF CUSTOMS AGENT 
TO THE INTERNAL MARKET 
(presented by the Commission) 
.ÏSXÏS 
EXPLANATORY MEMORANDUM 
The abolition of tax frontiers and customs controls within the 
Community on 1 January 1993 will force many companies in the sector of 
customs agents to adjust their activities accordingly. Although a 
number of them have begun to diversify in the run-up to this date, the 
process of adaptation to the internal market is far from complete and 
concerns only part of the sector. 
An audit backed by the Commission shows the figures involved: the 
sector has 16 250 companies and 239 000 workers. Of these, 63 000 
(approximately 25%) are at risk of losing their Jobs. Following this 
audit, the Commission consulted representatives of employers and 
workers in the profession and decided to adopt Community back-up 
measures to assist customs agents. These measures are described in the 
Communication from the Commission to the Council and Parliament 
(SEC 92/887) of May 1992. 
The Commission believes that the principle of subsidiarity prevents the 
Community from taking on the responsibilities of the Member States and 
the profession concerned. That is why it is for the Member States to 
take the necessary measures in this area, as several of them have 
already done. The social aspect includes age-related measures (early 
retirement, dispensation from working, etc.) and retraining, 
compensation for loss of earnings, relocation assistance, etc. On the 
economic front, various tax measures designed inter al ia to enable 
companies to write redundancy payments off against tax, have been 
adopted or planned by certain Member States, as well as measures to 
relieve the financial burden on companies fulfilling their 
responsibiIit ies. 
Since the nature of the activities in question makes this an 
exceptional situation, the Commission believes that Community back-up 
measures are both necessary and Justified in order to make it easier 
for the profession to adapt to the internal market. These back-up 
measures come under three headings: measures under the European Social 
Fund, measures under INTERREG and measures outside the structural 
Funds, the last being the subject of this Regulation. 
The ESF can already finance vocational training for people facing 
unemployment, as is now the case for customs agents, in the regions 
listed in Objectives 1, 2 and 5(b). In addition, with effect from 
1 January 1993 the Commission has decided to classify as long-term 
unemployed all customs agents in the Community who have lost their Jobs 
(Objective 3 of the structural Funds). The operations eligible for ESF 
support relate to training and Job creation. 
As far as INTERREG is concerned, the Commission has identified four 
specific types of solution for customs agents: 
the restructuring of the companies concerned; 
the training and reorganisation of their staff; 
the conversion and refitting of goods-handling sites at frontiers; 
the creation of replacement Jobs. 
Lastly, given the particular nature of this problem, the Commission 
believes that specific measures are needed to supplement those carried 
out under the ESF and INTERREG. These measures will be of an 
exceptional nature and are the subject of this proposal for a 
Régulât ion. 
To this end, the Commission has included a one-off budget heading of 
ECU 30 million in the preliminary draft budget for 1993. 
These specific measures, which are not financed under the structural 
Funds, pursue a twin objective. Firstly, to provide assistance to the 
areas of the Community which are particularly dependent on the 
profession concerned in terms of Jobs and income and, secondly, to ease 
the conversion or restructuring of the hardest hit companies in the 
customs sector, notably in order to maintain employment through 
diversification of activities and the creation of alternative Jobs. 
This Regulation will apply, as regards both of its objectives, in all 
the worst affected regions of the Community, including regions already 
covered by Objectives 1, 2 or 5(b) of the structural Funds and 
irrespective of whether the Social Fund or INTERREG are contributing to 
similar measures in these regions. 
The measures for the most severely affected geographical areas include 
development assistance and the establishment of new economic 
act ivit ies. 
The measures to assist the hardest hit companies will include 
assistance in planning the restructuring of companies, market studies 
and technology transfers, co-financing of conversion investment, 
diversification and restructuring. 
•*> 
Draft 
Council Regulation (EEC) No /92 
of 1992 
on measures to adapt the profession of customs agent to the internal 
market. 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Community, and in particular Article 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the Economic and Social Committee, 
Whereas the abolition of tax frontiers and customs controls on 
1 January 1993 will have far-reaching repercussions on economic 
activity at the Community's internal borders; 
Whereas customs agents are heavily involved in customs controls and 
customs formalities; 
Whereas the abolition of customs formalities at the Community's 
internal borders will abruptly end the intra-Community activities of 
this profession; 
Whereas this profession must completely rethink its future beyond 
1 January 1993; whereas this will have major repercussions both for 
employees in the sector and for the companies and areas whose economic 
structure is geared primarily to cross-border activities; 
Whereas, in the light of the circumstances and in accordance with the 
principle of subsidiarity, supplementary Community measures can 
usefully contribute to the work undertaken by Member States; 
Whereas the Community feels that urgent back-up measures to help 
customs agents are called for; 
Whereas these measures will be related in particular to Community 
action under the structural Funds; 
Whereas it is necessary to supplement the action supported by the 
structural Funds with operations not financed under these Funds, in 
order to establish a complete set of measures to assist in the 
restructuring and diversification of the services provided by this 
profession; 
Whereas these specific and exceptional measures, designed to supplement 
structural Fund activities, should be limited in time; 
Whereas the measures covered by this Regulation should be in keeping 
with Community policies, including those relating to competition rules; 
Whereas these measures are designed to contribute to economic and 
social cohesion; 
Whereas the Community aims to assist the areas and companies affected 
by the Community policy of abolishing tax frontiers and customs 
controls; 
Whereas the measures to support the areas and companies concerned 
should provide various types of assistance relating to management, 
access to capital markets, vocational training of workers, etc; 
Whereas the arrangements for Community action should be specified with 
a view to implementing the measures for attaining the objectives set; 
Whereas the applications for assistance submitted by the Member States 
are being drawn up in conjunction with the occupational and social 
interest groups concerned, 
HAS ADOPTED THIS REGULATION: 
Ar 11cIe One 
OblectIves 
Community action under this Regulation shall be designed to achieve the 
following objectives: 
assisting the geographical areas hardest hit by the abolition of 
frontiers to pool local energies and resources for the purposes of 
economic restructuring and the creation of replacement activities; 
promoting the conversion and/or restructuring of the weakened but 
viable firms referred to in Article 2(2) to save all or some 
existing Jobs, by measures to improve strategic planning, company 
productivity and the forecasting of staffing requirements and 
sk iI Is. 
Article 2 
Measures 
1. Operations to assist the geographic areas in question shall be 
concerned with: 
providing the competent authorities with advice on development; 
supporting local development measures; 
funding back-up infrastructure for local development; 
contributing towards the payment of interest. 
2. Operations to assist companies heavily involved in customs controls 
and intra-Community customs formalities shall concern: 
management of the conversion or restructuring of the companies, 
in particular by market studies and research; 
technology transfer, including the collection and dissemination 
of information, and innovation within companies; 
assistance in the creation of replacement Jobs; 
investment in the creation or preservation of permanent Jobs-, 
vocational training for employees and any measures to 
facilitate such training. 
Article 3 
Eligibility 
All areas of the Community shall be eligible for the measures adopted 
under Art icle 2. 
Operations funded under this Regulation shall comply with the 
provisions of the Treaties, instruments deriving from them and 
Community policies. 
Article 4 
Forms pf assistance 
Community financial assistance shall take the form of: 
funding of projects, including refunds, from 1 January 1993 for 
measures implemented from that date; 
general grants allocated to a public or private intermediary 
designated by the Member State, who shall ensure their distribution 
in individual amounts to the final recipients, including refunds 
from 1 January 1993 onwards for measures implemented from that 
date. 
Article 5 
Levels of assistance 
Total Community assistance shall not exceed 50X of the cost of the 
measures set out in Article 2. In certain cases, in particular in 
regions whose development is lagging behind, it shall be possible for 
the Commission to increase the contribution to 75%. 
The Community contribution shall supplement private or public 
expenditure. 
Article 6 
Applications for assistance 
Applications for assistance shall be presented, from 1 January 1993 
onwards, by the competent authorities designated by the Member States 
following consultations with the professional and social interest 
groups concerned. The deadline for receipt of such applications shall 
be 31 March 1993. 
Article 7 
Approval of applications for assistance and implementation 
The Commission shall adopt a decision on the applications for 
assistance, in principle no later than three months after their 
submission, provided that the conditions stipulated in this Regulation 
have been met. 
The Community's operations shall cover a period commencing on 
1 January 1993; the legal commitment for such measures shall be entered 
into by 31 December 1993. 
Art icle 8 
Technical assistance 
Apart from the forms of assistance referred to in Article 4, financial 
support may also be provided for expenditure on technical assistance, 
evaluation and follow-up concerning Community measures. 
For such operations, by way of derogation from Article 5, Community 
funding may account for up to 100% of the cost. However, the overall 
amount for these measures shall not exceed 2% of the total budget 
appropriation provided for in this Regulation. 
Art icle 9 
Foliow-up - evaluation - monitoring 
Community follow-up of the measures shall be conducted in cooperation 
between the Commission and the Member States. 
Member States shall be responsible for the follow-up, evaluation and 
monitoring of the appropriate use of the financial assistance. 
In addition, Member States shall be responsible for refunding to the 
Community any sums paid in error. 
Article 10 
Commitments - payments 
1. Budgetary commitments shall be made on the basis of the decisions 
taken by the Commission approving the measures concerned. 
2. Financial assistance shall be paid in accordance with the budgetary 
commitments and shall be sent to the authority designated for this 
purpose in the application submitted by the Member State concerned. 
3. An advance of 50% of each commitment shall be paid by the Community 
following the commitment. 
4. The balance shall be paid on condition that: 
the designated authority referred to in paragraph 2 submits to the 
Commission a request for payment within six months of the actual 
completion of the measure, and no later than 30 June 1995; 
the Member State certifies the accuracy of the information supplied 
in the request for payment. 
Article 11 
Use of the ecu 
The amounts of the Commission's commitments and payments shall be 
expressed and paid in ecus. 
The exchange rates applicable at the time of receipt of the application 
for assistance and the request for final payment shall be used. 
Article 12 
Report 
The Commission shall report to the Council and Parliament on the action 
taken pursuant to this Regulation by 1 November 1994. 
Art 8cle 13 
Entry into force 
This Regulation shall enter into force on 1 January 1993 for one year 
This Regulation shall be binding in its entirety and directly 
applicable in all Member States. 
Done at Brussels, 
For the CounciI 
The President 
1 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
Measures for adapting the profession of customs agent to the 
internal market. 
2. BUDGET HEADINGS INVOLVED 
B3-4015: 1993 (proposed in the preliminary draft budget for 1993) 
3. LEGAL BASIS 
Council Regulation (EEC) No.../92 of ...1992 on measures to adapt 
the profession of customs agent to the internal market. 
4. DESCRIPTION OF OPERATION 
4.1 Specific objectives of operation 
This proposal for Community back-up measures for operations 
drawn up and adopted by Member States is intended to support 
moves to ease the adjustment to the internal market of customs 
agents, who will lose overnight their role in intra-Community 
trade when the internal market is completed. The measures must 
therefore be implemented urgently. They will apply in 1992 
and, above all, 1993. 
The structural Funds are contributing to this plan through the 
INTERREG initiative and the European Social Fund. 
It is planned that heading B3-4015 will be used to implement a 
series of measures to supplement action taken by the Community 
and Member States in the worst-hit areas. 
4.2 Duration 
1993 
4.3 Target population 
Customs agents and their staff 
5. CLASSIFICATION OF EXPENDITURE OR REVENUE 
5.1 Non-compulsory expenditure 
5.2 Differentiated appropriations 
6. TYPE OF EXPENDITURE 
Co-financing with other public or private sector sources in concert 
with the Member States. 
7. FINANCIAL IMPACT 
7.1 Method of calculating total cost of operation 
ECU 30 mi I I ion. 
The total contribution planned equals 3% of average Community 
annual net earnings of ECU 16 000 multiplied by the number of 
people on the payroll: 
ECU 16 000 x 3/100 x 63 000 - ECU 30 mi I I ion. 
7.2 Breakdown of operation 
Breakdown 1992 Budget 1993 PDB % 
Var iat ion 
30.0 
7.3 Indicative schedule of commitment appropriations 
ECU mill ions 
1992 1993 Indicative programming 
Budget PDB 
1994 1995 1996 1997 and 
subsequent 
f inaneiaI 
years 
30.0 -
Indicate any initial forecasts included In the financial statement: 
- Potential commitment: 
- Period of application: 1993 
- Total planned to have been used by 31 December 1992: 
ECU mi I I ion 
8. WHAT ANT I-FRAUD MEASURES ARE PLANNED IN THE PROPOSAL FOR THE 
OPERATION? 
Member States are to take the necessary control measures to ensure 
the appropriate use of the financial assistance. Member States 
shall also be responsible for refunding to the Community any sums 
paid in error. 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1 Objectives 
Temporary Community back-up measures in support of Member 
States' operations to reorganise the work of customs agents and 
U 
retrain their staff following the abolition of customs and tax 
controls at the Community's internal frontiers. 
9.2 Grounds for the operation 
9.2.1 Cost 
ECU 30 million contribution towards operations aimed at 
retraining those facing unemployment or restructuring firms 
facing particularly severe difficulties. The operations 
will be strengthened in areas recognised, in consultation 
with the Member States, as being particularly hard-hit. 
9.2.2 Spin-off effects 
Dismantling of control structures. Regional conversion of 
the worst-hit areas where economic activity is closely 
bound up with frontier activities. 
9.2.3 Multiplier effect (ability to mobilise other sources of 
finance) 
The proposed action, forming part of an overall package, is 
likely to give an impetus to other measures. 
9.3 Monitoring and evaluation of the operation 
9.3.1 Performance indicators selected 
Number of conversions; creation of alternative activities. 
9.3.2 Details and frequency of planned evaluation 
Report on implementation to be presented by 
1 November 1994. 
ISSN 0254-1475 
COM(92) 328 final 
DOCUMENTS 
EN 0104 
Catalogue number : CB-CO-92-372-EN-C 
ISBN 92-77-47097-6 
Office for Official Publications of the European Communities 
L-2985 Luxembourg