Proposal for a COUNCIL REGULATION (EEC) ON MEASURES TO ADAPT THE PROFESSION OF CUSTOMS AGENT TO THE INTERNAL MARKET
Date: 1992-07-22
Institutions: European Commission
Subjects: customs, economic consequence, industrial restructuring, single market, vocational retraining

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0M(92) 328 final 

Brussels, 22 July  1992 

Proposal  for a 

COUNCIL  REGULATION  ( E Fm 

ON  MEASURES  TO  ADAPT  THE  PROFESSION  OF  CUSTOMS  AGENT 

TO  THE  INTERNAL  MARKET 

(presented  by  the  Commission) 

. Ï S X ÏS 

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 
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 
their 
relieve 
responsibiIit ies. 

from  working,  etc.)  and 

burden  on  companies 

fulfilling 

financial 

the 

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 

7.3  Indicative schedule of commitment  appropriations 

30.0 

1992 
Budget 

1993 
PDB 

ECU mill ions 

Indicative programming 

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 
1 November  1994. 

on 

implementation 

to 

be 

presented 

by 

ISSN 0254-1475 

COM(92) 328 final 

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Catalogue number : CB-CO-92-372-EN-C 

ISBN 92-77-47097-6 

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