Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL adopting an action programme for customs in the Community (Customs 2007)

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Decision No 210/97 of the European Parliament and of the Council establishes an action programme for customs in the Community, which ends on 31 December 2002.

2. The Commission's interim report on the Customs 2002 programme, issued on 31 July 2001, has concluded that first results are positive and encouraging. Together with Member States' reactions, it shows that the new working structure and the more operational approach undertaken are producing results that are of long term benefit to the Community.

3. As will be seen from the communication on the desirability of continuing the Customs 2002 programme, a new programme that provides for both continuation and extension in this sector is justified in order to:

- foster employment by contributing towards a competitive business environment with reduced compliance costs;

- prepare for enlargement and, after enlargement, for the full integration of the new Member States, so that all customs administrations in the enlarged Community may act as would one single administration;

- improve the protection offered by customs to the consumer and to the financial interests of the Community.

These priorities for the future, together with the support already received from Member States, constitute a strong case for continuing the work of Customs 2002.

4. The central objective of the new programme is to ensure that Community law is applied by customs in such a way as to maintain the proper functioning of the single market in an enlarged Community. Emphasis is placed on the following elements:

- ensuring the continued use of previously developed computerised systems;

- continuing standardisation of the present working methods;

- providing practical support to the candidate countries, to which the programme should be opened;

- improving actions to prevent irregularities;

- supporting the creation of e-customs via the development of communication systems;

- reducing compliance costs, which would contribute towards the creation of a competitive business environment

- developing training actions that would respond to the needs arising from the various programme activities.

5. The programme tools used should in particular include information exchange and communication systems, management and project groups, benchmarking, exchange of officials, seminars and workshops.

6. Provisions are provided for the evaluation of the programme. The programme should the subject of a mid-term evaluation and an ex post evaluation, achieved jointly by the participating countries and the Commission, in order to appreciate the impact of the activities of the programme on the general and specific objectives fixed.

7. The decision takes into account the desirability of an efficient system of evaluation, which necessitates the establishment of a set of indicators in order to measure the effective and efficient management of the programme.

8. To ensure sustainable results, the programme shall run for a period of five years.

9. The European Parliament and the Council are invited to adopt the proposal for a Decision of the European Parliament and of the Council adopting an action plan for customs in the Community (Customs 2007), in the light of the communication to the European Parliament and the Council on the desirability of continuing the Customs 2002 programme.

2002/0029 (COD)

Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL adopting an action programme for customs in the Community (Customs 2007)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 95 thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C , , p. .

Having regard to the opinion of the Economic and Social Committee [2],

[2] OJ C , , p. .

Acting in accordance with the procedure laid down in Article 251 of the Treaty,

Whereas:

(1) The experience gained from previous programmes in the customs field, in particular Customs 2002, set out in Decision No 210/97/EC of the European Parliament and the Council of 19 December 1996 adopting an action programme for customs in the Community [3], indicates that there would be a strong Community interest to continue, and even to enlarge this programme. The new programme should be built on the achievements of the previous programmes. The need for more focused and measurable objectives has been established as a result of the previous programmes. Decision No 210/97/EC should accordingly be repealed.

[3] OJ L 33 of 4.2.1997, p. 24, as amended by Decision 105/2000/EC (OJ L 13 of 19.1.2000, p. 1).

(2) Customs administrations have a vital role to protect the Community's interests, particularly its financial interests, to provide an equivalent level of protection to the Community's citizens and economic operators, at any point in the Community customs territory where customs clearance formalities are carried out, and to ensure that business can compete in the global marketplace. In this context, the strategic policy defined by the Customs Policy Group, made up of heads of Customs Administrations from the Commission and the Member States, or their representatives, should ensure that national customs administrations may operate as efficiently and effectively as would one single administration.

(3) This Decision establishes the principles by which the customs policy will be guided over the next five years and supports and complements actions undertaken by Member States in the customs field. The implementation of this programme is co-ordinated and organised in partnership between the Commission and the Member States within the strategic policy defined by the Customs Policy Group.

(4) The Community commitment to the process of accession by applicant countries, requires the provision of practical means whereby the customs administrations of these countries are able to undertake the full range of tasks required under Community legislation from the date of their accession, including the management of the future external border. In order to achieve this, the programme should be opened to the applicant countries.

(5) A range of instruments can be used in order to achieve the objectives of this programme, including communication and information exchange systems, management groups, project groups, benchmarking, exchanges of officials, seminars, workshops, training activities, monitoring, and external actions.

(6) There is a need for customs action to give priority to improving anti-fraud controls, minimising the cost of compliance with customs legislation for economic operators and preparing for enlargement. The Community must therefore be able, within the framework of its own powers, to support the action of Member States' customs administrations and full advantage should be taken of every possibility for administrative co-operation that Community rules provide.

(7) Increasing globalisation of trade, the development of new markets, and changes in the methods and speed of the movement of goods, require customs administrations to strengthen relations between the Community's customs administrations, business, legal and scientific circles, and operators engaged in foreign trade.

(8) The desirability of an efficient system of evaluation of the programme necessitates the establishment of a set of indicators in order to measure the effective and efficient management of the programme.

(9) This decision lays down, for the entire duration of the programme, a financial framework constituting the principal point of reference, within the meaning of point 33 of the Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and the Commission on budgetary discipline and improvement of the budgetary procedure.

(10) Since the measures necessary for the implementation of this Decision are management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [4], they should be adopted by use of the management procedure provided for in Article 4 of that Decision.

[4] OJ L 184, 17.7.1999, p. 23.

HAVE ADOPTED THIS DECISION:

CHAPTER I

SCOPE AND OBJECTIVES

Article 1

Establishment of the programme

A multiannual Community action programme (Customs 2007) hereinafter referred to as "the programme", is hereby established for the period 1 January 2003 to 31 December 2007 to support and complement the action undertaken by Member States in the customs field.

Article 2

Participation of candidate countries

1. The Programme shall be open to the participation of:

- (a) the candidate countries of Central and Eastern Europe, in accordance with the conditions laid down in the Europe Agreements, in the additional protocols thereto and in the decisions of the respective Association Councils.

- (b) Cyprus, Malta and Turkey, on the basis of bilateral agreements on this matter concluded with these countries.

- (c) other countries when agreements and procedures so allow.

2. For the purposes of this Decision "participating countries" means the Member States and the countries referred to in paragraph 1.

Article 3

Overall objectives

1. In the framework of the management of the customs union, the overall objectives of the programme shall be to ensure that Member States' customs administrations:

- (a) interact and perform their duties as efficiently as though they were one administration and achieve equivalent results at every point of the Community customs territory;

- (b) are making the necessary preparations for enlargement, including the sharing of experience and knowledge with the customs administrations of the applicant countries.

2. A Customs Policy Group, composed of the heads of the customs administrations of the Commission and the Member States or their representatives shall be established which shall develop a strategic common policy on which the overall objectives of this programme should be based. The Commission shall keep the Customs Policy Group regularly informed of measures relating to the implementation of the programme

Article 4

Specific objectives

1. The programme establishes the following specific objectives:

(a) to reduce the cost of compliance with customs legislation on economic operators through improved standardisation, particularly for data input and risk management;

(b) to identify, develop and apply best working practices, especially in the areas of post-clearance audit control, risk analysis and simplified procedures;

(c) to establish a system of the measurement of Member States' performance in customs administrations and setting standards for different types of control;

(d) to support actions to prevent irregularities by providing control information rapidly to front line customs posts and to improve the standardisation and simplification of customs systems and controls;

(e) to support the creation of e-customs via the development of communication systems coupled with the necessary legislative and administrative changes;

(f) to maintain existing communication and information systems and, where appropriate, to develop new systems;

(g) to undertake actions which will provide support to the customs services of the applicant countries in their preparation for accession;

(h) to contribute to the establishment of high quality customs services in third countries;

(i) to develop and reinforce common training;

(j) to seek to develop a managed training infrastructure to co-ordinate the provision of training to the Community's customs officials.

2. Further specific objectives may be fixed in accordance with the procedure referred to in Article 17(2).

Article 5

Fixing objectives and indicators

All actions proposed in order to achieve the objectives outlined in this programme shall have defined objectives, measurable indicators to ensure suitable evaluation, a clear indication of the anticipated costs and should be constructed so that the results achieved the expected impact of the action.

CHAPTER II

PROGRAMME ACTIONS

Article 6

Communication and Information exchange systems

1. The Commission and the participating countries shall ensure that the following communication and information exchange systems, together with manuals and guides, are operational, in so far as their operation is necessary under Community legislation:

a. the Common Communications Network/Common Systems Interface (CCN/CSI) to the extent necessary to support the functioning of the systems set out in this paragraph;

b. the Data Dissemination System (DDS);

c. the New Computerised Transit System (NCTS/NSTI);

d. the Information system on the Integrated Tariff of the Community (TARIC);

e. the information system for Transfer of Origin Stamps and the transmission of Transit Stamps (TCO/TCT);

f. the European Customs Inventory of Chemical Substances (ECICS);

g. the European Binding Tariff Information System (EBTI/RTCE);

h. the Tariff Quota Surveillance management system (TQS);

i. the Inward Processing Relief system (IPR);

k. the Unit Values system;

l. the Suspensions information system.

2. New communication and information-exchange systems may be established in accordance with the procedure referred to in Article 17(2).

3. The Community components of the communication and information-exchange systems shall be the hardware, software and network connections, which must be common to all participating countries so as to ensure the inter-connection and interoperability of the systems, whether they be installed at the premises of the Commission or a designated sub-contractor or at premises of participating countries or a designated sub-contractor. The Commission shall conclude the necessary contracts to assure the operational nature of these components in the name of the Community.

4. The non-Community components of the communication and information-exchange systems shall comprise the national databases forming part of these systems, the network connections between the Community and non-Community components and such software and hardware as each participating country shall deem appropriate for the full operation of those systems throughout its administration. The participating countries will ensure that the non-Community components are kept operational and will assure the interoperability of these components with the Community components.

5. The Commission shall co-ordinate, in co-operation with the participating countries, those aspects of the establishment and functioning of the Community and non-Community elements of the systems and infrastructure referred to in the first paragraph.

Article 7

Benchmarking

Benchmarking activities may be organised involving one or more participating countries or other third countries, particularly the Community's main trading partners, in order to improve the performance of their customs administration.

For the purposes of this Decision, "benchmarking" means the use of agreed, common indicators to measure performance which are used to identify differences in performance and the processes involved in order share experiences and learn from good practice in order to improve efficiency and effectiveness.

Article 8

Exchanges of officials

1. The Commission and the participating countries shall organise exchanges of officials from customs administrations in support of the programme's specific objectives. Each exchange shall focus on a specific aspect of customs work and shall be thoroughly prepared and subsequently evaluated by the officials and authorities concerned. Exchanges may be operational or targeted on specific priority activities.

2. Where appropriate, participating countries shall take the necessary steps to enable exchange officials to be operational in the host service. To this end, exchange officials shall be authorised to carry out the formalities relating to the duties entrusted to them. If circumstances so require, and, in particular, in order to take account of the specific requirements of the legal system of each participating country, the competent authorities in the participating countries may limit the said authorisation.

3. For the duration of the exchange, the official shall, in the exercise of his duties, bear the same civil liability as national officials of the host authorities. Officials taking part in an exchange shall be subject to the same rules on professional confidentiality as the national officials of the host country.

4. The Commission and the participating countries may also organise exchanges with other third countries in support of the objectives of this programme.

5. Participating countries shall provide periodic evaluations of the exchanges, including the impact on their administration, as required by the Commission.

Article 9

Seminars, workshops and project groups

The Commission and the participating countries shall organise seminars, workshops and conferences to be attended by participating country and Commission officials and, where appropriate, other experts in the field. Seminars, workshops and conferences may also be attended by officials from other administrations where this is appropriate to the objectives of the activity.

Project Groups may be established to carry out specific tasks to be completed within a specified time-scale.

Article 10

Training activities

1. In order to encourage structured co-operation between national training bodies and officials responsible for customs training in administrations, participating countries shall, in co-operation with the Commission:

a. set training standards, develop existing training programmes and, where necessary, devise new programmes to provide a common core of training for officials relating to the full range of customs rules and procedures so as to enable them to acquire the necessary common professional skills and knowledge;

b. where appropriate, open customs training courses provided by each participating country for its own officials to officials from all participating countries;

c. develop the necessary infrastructure and common tools for customs training and customs training management.

2. Participating countries shall also ensure that their officials receive the initial and continuous training necessary to acquire the common professional skills and knowledge in accordance with the common training programmes and the linguistic training necessary for those officials to attain a sufficient standard of linguistic competence.

Article 11

Monitoring actions

1. The Commission shall decide, in accordance with the procedure referred to in Article 17(2), which specific sectors of Community customs legislation will be subject to monitoring.

2. Such monitoring shall be carried out by joint teams made up of customs officials from the Member States and the Commission. These teams shall, on the basis of a theme-by-theme or regional approach, visit different points in Community customs territory where customs administrations carry out their duties. At the end of these visits, they shall draw up a report identifying and analysing the best working methods as well as any difficulties in implementing the rules observed and, where appropriate, including suggestions for the adaptation of both Community rules and working methods in order to improve the efficiency of customs actions as a whole. These experts' reports shall be communicated to the Member States and the Commission.

Article 12

External actions in the form of technical assistance and training

1. The Commission shall ensure the co-ordination of the training and technical assistance and co-operation actions carried out by the Community and the Member States with third countries' administrations, to ensure the consistency of Community actions, both external and internal.

2. The Commission shall also ensure the implementation of training and technical assistance and co-operation actions for the benefit of:

a. the applicant countries to enable them to comply with Community customs legislation. Particular attention should be paid to the inter-connectivity of customs information and technology systems;

b. third-country administrations to support them in the modernisation of their administrations.

Article 13

Other actions

The Commission may, in accordance with the procedure referred to in Article 17(2) develop and use any other tools necessary to meet the objectives of the programme.

CHAPTER III

FINANCIAL PROVISIONS

Article 14

Financial framework

1. The financial framework for the implementation of the programme for the period 1 January 2003 to 31 December 2007 is hereby set at EUR133 million.

2. The annual appropriations shall be authorised by the budgetary authority within the limits of the financial perspective.

Article 15

Expenditure

1. The expenditure necessary for the implementation of the programme shall be divided between the Community and the participating countries in accordance with the following paragraphs.

2. The Community shall bear expenditure as follows:

(a) the cost of the development, purchase, installation and maintenance of the Community components of the information exchange and communication systems described in Article 6 and the cost of the day to day operation of the Community components installed at the premises of the Commission or those of a designated sub-contractor;

(b) the travel and subsistence expenses incurred by participating countries relating to benchmarking activities, exchanges of officials, seminars, workshops and project groups, training and monitoring actions referred to in Articles 7 to 11;

(c) the organisational costs of seminars and workshops;

(d) the costs relating to the actions referred to in Articles 12 and 13.

The Commission shall, in accordance with the Financial Regulation applicable to the general budget of the European Communities, determine the rules relating to the payment of expense and shall communicate them to participating countries.

3. Participating countries shall bear expenditure as follows:

(a) the difference between the expenditure paid by the Community in accordance with paragraph 2 above, and the actual cost of the activity;

(b) the costs relating to the initial and continuing training, including the linguistic training, of their officials;

(c) the costs relating to the establishment and functioning of the non-Community components of the communication and information-exchange systems provided for in Article 4 and the cost of the day-to-day operation of the Community components of those systems installed at their premises or those of a designated sub-contractor.

Article 16

Financial Control

Financing decisions and any agreements or contracts resulting from this Decision shall be subject to financial control, and if necessary, on the spot audits by the Commission, including the European Anti-fraud Office (OLAF) and by the European Court of Auditors. Any grants made pursuant to this Decision will be subject to agreement in writing in advance by the beneficiaries. This agreement shall contain the acceptance by the beneficiaries to an audit by the European Court of Auditors into the use made of the financing granted.

CHAPTER IV

OTHER PROVISIONS

Article 17

Committee

1. The Commission shall be assisted by a committee, called the "Customs 2007 Committee", composed of the representatives of the Member States and chaired by the representatives of the Commission.

2. Where reference is made to this paragraph, the management procedure laid down in Article 4 of Decision 1999/468/EC shall apply, in compliance of Articles 7 and 8 thereof.

3. The period provided for in Article 4(3) of Decision 1999/468/EC shall be three months.

Article 18

Evaluation and reports

1. This programme shall be subject to continuous evaluation, carried out in partnership between the Commission and the participating countries. The evaluation shall be pursued by means of the reports referred to in paragraph 2 and by means of specific activities.

2. Participating countries shall forward to the Commission:

(a) by 31 December 2004 at the latest, an interim report on the effectiveness and efficiency of the programme, and

(b) by 31 December 2007 at the latest, a final report on the effectiveness and efficiency of the programme.

3. The Commission shall submit:

(a) to the Customs 2007 Committee, by 30 June 2005 at the latest, an interim report evaluating the efficiency and effectiveness of the programme;

(b) to the European Parliament and to the Council, by 30 June 2008 at the latest, a final report establishing the impact achieved by the programme. The final report shall also be forwarded to the Economic and Social Committee for information.

4. The final report referred to in paragraph 3 shall analyse all the progress achieved in the case of each measure in the programme and shall include an analysis of the strengths and weaknesses of any kind of customs computerisation systems involved in the implementation of the internal market. The report shall set out any useful proposals for ensuring that identical treatment is reserved for operators throughout the Community customs territory and that the gathering of information serves the proper protection of the Community's financial interests.

Article 19

Repeal

Decision No 210/97/EC is hereby repealed.

Article 20

Entry into force

This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Communities.

It shall apply from 1 January 2003.

Article 21

Addressees

This Decision is addressed to Member States

Done at Brussels,

For the European Parliament For the Council

The President The President

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Chapter 21: Customs policy

Activity(ies): Article 02: Customs 2007 programme

Title of action: Extending and continuing an action programme for customs in the Community (the Customs 2007 programme)

1. BUDGET LINE(S) + HEADING(S)

B5-3030 and B7-8600

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): EUR133 million for commitment

2.2. Period of application: 2003 - 2007

2.3. Overall multiannual estimate on expenditure:

a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR Million (to 3rd decimal place)

>TABLE POSITION>

b) Technical and administrative assistance and support expenditure (see point 6.1.2)

>TABLE POSITION>

>TABLE POSITION>

c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

>TABLE POSITION>

>TABLE POSITION>

2.4. Compatibility with the financial programming and the financial perspective

* Proposal compatible with the existing financial programming

| | This proposal will entail reprogramming of the relevant heading in the financial perspective

| | This may entail application of the provisions of the Interinstitutional Agreement.

2.5. Financial impact on revenue:

* No financial implications (involves technical aspects regarding implementation of a measure)

OR

| | Financial impact - the effect on revenue.

3. BUDGET CHARACTERISTICS

>TABLE POSITION>

4. LEGAL BASIS

Article 95 of the Treaty establishing the European Community.

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention

5.1.1. Objectives pursued

The main objective of the programme is to ensure that Community law is applied by customs in such a way as to maintain the proper functioning of the single market in an enlarged Community. This requires equivalent treatment across the Community, due attention to protecting the Community and citizens' interests and efforts to support a competitive business environment. The customs strategy to achieve these objectives will be developed by the Customs Policy Group (composed of the heads of the customs administrations and the Commission), based on the conclusions contained in the Commission Communication on a strategy for the Customs Union.

The specific objectives of the programme will be developed by the Customs 2007 Committee taking into account the need:

to ensure the functioning and evolution of existing computer systems,

especially the CCN/CSI platform and the main computerised applications of NCTS, TARIC, TQS.

to provide maximum support to the enlargement process

through greater standardisation of present working methods and by providing practical support to the applicant countries; agreeing standards for controls and guidelines to assist in application of community law; improvements in computerisation to maintain the quality of controls in an enlarged community; work on the access of applicant countries to community systems (e.g. through the inter-connectivity study) should also be increased; and practical support, such as training, on all aspects of the implementation of Community provisions by customs (in particular those of the Community customs code).

to improve anti-fraud actions

by a better use of risk management to focus controls on high risk areas; the implementation of pilot projects on risk information exchange; and increasing operational co-operation under projects such as RALFH.

to reduce compliance costs by supporting a competitive business environment

through efforts to reducing compliance costs by standardising data input requirements, particularly for customs declarations, and encouraging the movement to paperless customs ('e-customs') where the maximum amount of data is transferred electronically.

To ensure the objectives and results obtained are monitored, all actions (with the exception of individual exchanges) shall be the subject of a specific proposal made on a standard form and outlining any measurable indicators. Major requests for funding shall be accompanied also by a detailed implementation plan showing the commitments of the respective parties.

5.1.2. Measures taken in connection with ex ante evaluation

An interim evaluation has been carried out as required by Art. 17(3) of the Customs 2002 Council Decision. This evaluation has concluded that the first results are positive and encouraging. The programme is now much more geared to operational and practical improvements compared with the previous programme, although more needs to be done on measurable objectives with indicators.

Member States have shown their strong support for the Customs 2002 programme by their active participation in the new working structures and have indicated both in the Customs Policy Group and in the Council (resolution responding to the Commission communication concerning a strategy for the customs union) their support for a follow up programme. Member States' reports specifically welcome the new working structure for the programme. Under the control of the Customs 2002 Committee, five key areas have been identified and Management Groups have been created to plan and supervise the work in each area and report back to the Committee. Management Groups implement actions using any appropriate instruments of the programme but activities are mostly run by operational project groups, comprising Member States and Commission experts, reporting to a Management Group. This working structure has proved to be a very efficient and useful way of administering the programme and achieving results.

The Customs Policy Group (consisting of the Director-Generals of Customs of all Member States) continued its work on developing customs policy and strategy, thereby making the essential link between policy objectives, Customs 2002 activities and their implementation by national administrations.

Given the fact that the working structure took some time to be fully operational and that the evaluation is based on Member States' reports on the first twelve months of the programme, present measurements reflect the short term impact of the actions undertaken. It is, however, possible to provide examples to illustrate the results in individual working areas:

Risk Management: a major weapon for fighting fraud and first practical results already enable Member States to exchange standardised risk information on high risk areas. Work started on "Catalogue of risk indicators for assessing economic operators" to reduce compliance costs for low risk traders and inventory of community customs controls to identify problem control areas and to alert applicant countries to areas needing special attention.

Information technology: an important area of programme investment which covers the maintenance of existing IT systems and the development of new systems in order to further improve controls, increase standardisation and reduce compliance costs. The major actions carried out to date are the implementation of the New Computerised Transit system (NCTS), the new computer platform Common Communications Network/Customs System Interface (CCN/CSI), on which NCTS is based (which will improve control standards and provide the basis for e-customs in an enlarged community and the rapid transmission of control and crisis information to customs posts at the community's external frontiers); the Data Dissemination System (DDS) which enables business to gain on-line access to Community customs tools. Ongoing work also includes preparing the links to applicant countries' systems and assisting these countries in their preparation for accession.

Measurement of Results: work has begun (pilot phase in 2000, live from 1/1/2001) in order to define performance criteria which will enable Member States to compare their performance to a Community standard and thus lead to improved customs operations. Combined with the drafting of standards for controls, this work will provide increased guarantees of the maintenance of standards in an enlarged community.

New customs work: the programme has adapted to external changes. Work on counterfeiting has shown the importance of customs co-operating to counter new threats to community business and employment. The programme (via the use of exchanges, support to specialised teams, a major forum etc) has undoubtedly contributed towards helping Member States' efforts to tackle this growing problem. Results show customs in the Community seizing 65 million counterfeit articles in 2000 (compared to 25 million 1999), estimated to equate to more than 1 billion Euro of legitimate products.

Standardisation: In addition to the many computerisation actions improving standardisation, there has also been work on guidelines and recommendations which will make a significant contribution (sectors involved include customs laboratories, product safety, cultural goods, chemical precursors, establishing memoranda of understanding and the use of X-ray scanners).

External activities: Numerous external activities have taken place notably aimed at preparing for enlargement or improving links with close trading partners to prevent fraud and foster trade. The IT inter-connectivity study deserves particular mention as a crucial step in examining applicant countries' preparations and state of readiness to link up to community systems.

Exchange of officials and general co-operation between customs: Greater targeting and linking exchanges to high priority areas (e.g. anti-fraud activities) and specific projects (e.g. anti-counterfeiting) have led to better results in this area. One example concerns the RALFH project on co-operation between the five ports responsible for 70% of EU maritime traffic where exchanges involve officials using container scanners as well as officials applying specific controls.

Le rapport d'évaluation intérimaire (mis en annexe à la Communication) a souligné les changements apportés au programme suite à l'évaluation de Douane 2000 (amélioration de la gestion, de la structure organisationnelle et de la cohérence d'ensemble du programme). Il en ressort que les actions conjointes sont utiles et complémentaires et que les systèmes informatiques sont pertinents. Les résultats observés à ce jour devraient se traduire, à plus long terme, par des impacts permettant d'atteindre les objectifs.

5.1.3. Measures taken following ex post evaluation

Not applicable.

5.2. Actions envisaged and arrangements for budget intervention

The activities envisaged are as follows:

Information exchange and communication systems:

The Community must ensure that the following current systems are operational, principally with regard to their maintenance, development and functioning and the network operating costs: notably the Common Communications Network/Common Systems Interface (CCN/CSI) to the extent necessary to support the functioning of the systems listed here, the Data Dissemination System (DDS), the New Computerised Transit System (NCTS/NSTI), the Information system on the Integrated Tariff of the Community (TARIC), the information system for Transfer of Origin Stamps and the transmission of Transit Stamps (TCO/TCT), the European Customs Inventory of Chemical Substances (ECICS), the European Binding Tariff Information System (EBTI/RTCE), the Tariff Quota Surveillance management system (TQS), the Inward Processing Relief system (IPR), the Unit Values system and the Suspensions information system.

The calculation of the cost for the operation and maintenance of the current systems is based on existing contractual arrangements with external companies with whom a series of Framework Contracts have been concluded. As a result the annual 'running' costs are on the basis of the Framework Contract and are committed annually via Specific Agreements.

In regard to new systems, the Community must ensure their development, purchase, installation, functioning and evolution, principally the equipment, software and the network which must be in common for all Member States to ensure the interconnection and interoperability of the systems.

The cost for development and implementation of the new systems is also based on existing contractual arrangements with external companies with whom a series of Framework Contracts have been concluded. Previous experience over a number of years working with these external companies on system development and implementation has ensured that a good basis exists for providing estimates for future new activities.

For the applicant countries, in the context of enlargement, the Community must meet the costs of assistance, testing conformity and interconnectivity of the national systems with those of the Community.

Member States must ensure the functioning of national databases which are part of this system, the network connections between the Community and non-Community elements of these systems, as well as the software and the equipment which each Member State considers necessary to make full use of the systems throughout their administration.

The Anti-Fraud Information System (AFIS), managed by TAXUD and, since 1999, OLAF, is an application which enables Member States and the Commission to quickly exchange (and store in the particular case of the Customs Information System) confidential and sensitive information relating to issues such as fraud cases, illicit traffic and sensitive products. It has seen a steady increase in the number of messages exchanged and is an important tool in the fight against fraud. The costs cover user support, maintenance, operation and development of the system. Provision is made in the budget for 2003 only and OLAF will assume responsibility for establishing a budget after 31 December 2003.

Management Groups / Project Groups: In order to foster a closer and more practical working relationship between all involved in the activities of the programme, extensive use will be made of Management Groups and Project Groups. Key policy areas and priorities will be identified and Management Groups created to plan and supervise the work in each area and report back to the Customs 2007 Committee. Whilst actions may be implemented using any of the programme instruments, most activities will be run by operational project groups, comprising Member States and Commission experts, reporting to the relevant Management Group. This working structure was introduced in the Customs 2002 programme and has proved to be a very efficient and useful way of administering the programme and achieving results.

Benchmarking: is an activity which allows the comparison of practices between customs administrations in order to identify best practices and to use these best practices to improve the overall work of Community customs. Benchmarking, which is initiated and controlled by Member States, is a process of sharing experiences and learning from good practice which aims to improve efficiency and effectiveness and forms a basis for Community level recommendations.

Exchanges of officials: The programme will continue the development in Customs 2002, with much improved management of exchanges of officials, ensuring that they are targeted on the areas of the highest priority such as anti-fraud activities and specific projects such as anti-counterfeiting. This includes better evaluation, with Member States feeding information back to the Community level. Exchanges will also make an important contribution to the enlargement process. Experience has shown, both in the context of the present enlargement process and following the accession of Austria, Finland and Sweden, that exchanges are a vital tool in transferring knowledge of procedures and working methods.

Seminars and workshops: are organised, often under the auspices of a Project Group and only where appropriate, to explore in detail issues which require, for example, a strategy to be developed and an action plan for its implementation or to develop awareness of risks and control methods. They will have objectives which are clearly focussed on the priorities of the programme and are expected to produce results which can be followed up by the appropriate body, Member States or the Commission.

Training actions: In this area, project groups will be established to develop common training for Member States, in particular in the areas of Audit techniques and Computer Audit techniques; to develop the use of the internet in training; to provide managed training information and to promote co-operation between the training organisations in Member States. These activities will require funding for travel and subsistence and, where appropriate, for the purchase of materials.

Monitoring actions: In order to examine in detail the application of Community customs law in Member States, specific sectors of customs legislation will be subject to monitoring. This will be carried out by joint teams made up of customs experts from Member States and the Commission and in support of the objectives of the programme. At the end of these visits, a report is prepared identifying and analysing the best working methods which is then considered by the appropriate body.

External actions (technical assistance, training, other): These activities are principally aimed at providing assistance to the applicant countries to enable them to develop their working methods and practices or to improving links with close trading partners to prevent fraud and foster trade. The IT inter-connectivity study provides an essential step in examining applicant countries' preparations and state of readiness to link up to community systems.

Other actions: The decision provides for Commission to develop and use any other tools necessary to meet the objectives of the programme which are agreed with the programme Committee. This would enable the programme to respond to developments in legislation, technology or working practices through the development of new instruments.

All the travel and subsistence costs in respect of exchanges, seminars, workshops, benchmarking activities, management and project groups and monitoring are calculated on the basis of the reimbursement of the travel and subsistence costs of Commission officials

5.3. Methods of implementation

The aim is to bring a co-ordinated approach to the programme, sharing experiences and applying best practice. In order to ensure that activities are targeted on priority policy areas, there is provision for a common approach to be drawn up in partnership between the Commission and Member States in the Customs Policy Group. On the basis of this common approach, a rolling action plan will be developed by the Commission in close co-operation with the Customs 2007 Committee, prioritising objectives and identifying the appropriate action(s) to be undertaken to achieve the objectives. The results of these actions will monitored by the Management Groups and Project Groups established under the programme and reviewed by the management committee and new actions, if appropriate, will be identified and added to the rolling action plan.

In order to ensure that the programme is developed so that it achieves the agreed specific objectives, all requests for actions will be required to follow procedures which are aimed at ensuring that actions are prioritised, clear objectives are set, those proposing actions take account of the resources required to achieve them, proper approval is given for the action by all those implicated in it and that follow-up and evaluation are seen as an integral part of the proposal.

This method of working ensures that actions are targeted on the policy priorities, are undertaken in partnership with Member States and that the results and experience of activities are fed back into other work, whether within or outside the scope of the programme.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

6.1.1. Financial intervention

Commitments in EUR million (to the 3rd decimal place)

>TABLE POSITION>

6.1.2. Technical and administrative assistance, support expenditure and IT expenditure (Commitment appropriations)

Table under 6.1.2 is not applicable.

6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period)

(Where there is more than one action, give sufficient detail of the specific measures to be taken for each one to allow the volume and costs of the outputs to be estimated. ).

Commitments in EUR million (to the 3rd decimal place)

>TABLE POSITION>

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

>TABLE POSITION>

7.2. Overall financial impact of human resources

>TABLE POSITION>

The amounts are total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action

>TABLE POSITION>

The amounts are total expenditure for twelve months.

(1) Specify the type of committee and the group to which it belongs.

I. Annual total (7.2 + 7.3)

II. Duration of action

III. Total cost of action (I x II) // EUR5.793.364

5 Years

EUR28.966.820

The needs of administrative and human resources shall be covered within the allocation granted to managing the Directorate General in the framework of the annual allocation procedure.

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

This is covered by Article 14 of the proposal, which stipulates that the programme will be subject to a continuous monitoring managed jointly by the participating countries and the Commission. This is assured by the use of financial, outcome and output indicators. The Commission services will present to the Committee on an annual basis a follow-up report covering the activities of the programme and their results in the year described. Participating countries shall provide the Commission with all necessary information needed to produce the follow-up reports.

8.2. Arrangements and schedule for the planned evaluation

Article 15 of the decision provides for evaluation of the programme. The programme is the subject of a mid-term evaluation and an ex post evaluation, achieved jointly by the participating countries and the Commission, in order to appreciate the impact of the activities of the programme on the general and specific objectives laid down in Article 3.

The mid-term evaluation examines the pertinence and the first results and impact of the activities of the programme. It also assesses the use of credits, the follow-up procedure and the implementation.

The ex post evaluation, taking into account the results of the mid-term evaluation, aims to give an account of the use of resources, the effectiveness and efficiency of the activities of the programme.

The effectiveness and the efficiency of the programme are evaluated in comparison with the general and specific objectives.

The mid-term and ex post evaluation reports are based on the reports submitted by the participating countries from annual follow-up reports and any other relevant elements. Thematic studies could be envisaged by the Commission with a view to completing the information available on the impact of the programme.

The Commission's services will ensure that the evaluation for the new programme will be available from the start of the programme. This will consist of:

- the identification of the logic of the action of the programme (the hierarchy of its objectives, results and desired impacts);

- the identification of the result and impact indicators in order to measure the extent to which these objectives have been achieved;

- the instruments for the collection of data on the identified results and impacts indicators (targeted questionnaire, statistical and other data).

9. ANTI-FRAUD MEASURES

The participating countries will pay the travel and stay costs of their own officials, according to the agreed rules. The necessary amounts will be advanced to the participating countries during the exercise, taking account of the implementation. The participating countries shall submit detailed accounts justifying their expenses and shall keep all documents in the event of a control. Payment of travel expenses to officials from other countries or representatives from external organisations as well as the costs relative to the organisation of seminars, will be paid either directly by the Commission services or by the participating countries appointed to this effect. Anti-fraud dispositions (controls, etc.) shall be provided for in all contacts of this kind.

Amounts relating to other activities of the programme shall be submitted to the usual verification procedure by the Commission Services before payment, taking into account contractual obligations and a satisfactory general and financial management. Anti-fraud measures (controls, reports etc.) are provided for in all contracts concluded between the Commission and the beneficiaries.