Report from the Commission to the Council and the European Parliament on the implementation of the Customs 2000 programme
Date: 1998-07-24
Institutions: European Commission
Subjects: EU law, action programme, administrative cooperation, common tariff policy, customs inspection

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 24.07.1998 
COM(1998) 471  final 

REPORT FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 

on the implementation 

of the Customs 2000 Programme 

(Article 17 of Decision No 210/97/EC of 19 December 1996) 

By  Decision  No  210/97/EC  of  19  December  1996,»  the  European  Parliament  and  the 
Council  adopted  an action  programme for customs in the Community  (Customs  2000). 

Under  Article  17  (3)  of  the  above-mentioned  Decision,  the  Commission  is  required  to 
submit  to  the  European  Parliament  and  the  Council  an  interim  report  on  the 
implementation  and  the  impact  of  the  Customs  2000  Programme,  together  with  the 
guidelines  the  Commission  intends  to  propose  to  improve  the  effectiveness  of  its 
operations in the future. 

1.  BACKGROUND 

Following  the  abolition  of  customs  checks  at  the  Community's  internal  frontiers,  it 
became  apparent  that  administrative  co-operation  between  the  Member  States 
needed  to  be  strengthened 
in  the 
implementation  of Community  law by the  national  administrations  might  give  rise  to 
malfunctions  in the  management  of the  single  market.  This  approach,  highlighted  by 
the  Sutherland  Report  in  1992,  was  considered  in  detail  by  the  Commission,  which 
presented  a number of communications  along those  lines to  the European  Parliament 
and the Council.2 

in  which  discrepancies 

in  all  the  areas 

Customs  was  regarded  as  a  priority  sector  from  the  outset.  Here,  legislative 
harmonisation,  brought  about  through  the  entry  into  force  of  the  Community 
Customs Code,3  has to be supplemented  by ensuring that the national  administrations 
apply  Community  law  uniformly  at  every  point  in  the  customs  territory  of  the 
Community.  The  removal  of  customs  checks  on  trade  between  the  Member  States 
means that customs  has become the only point at which all the Community  legislation 
with  which  goods  entering  or  leaving  the  single  customs  territory  must  comply  is 
implemented  and monitored. 

This  sector  has  become  all  the  more  strategic  because  in  addition  to  the  traditional 
role  played  by  customs  as  the  collector  of  own  resources  and  the  guardian  of  the 
financial  interests  of the  Community,  its  new  tasks,  involving  the  regulation  of trade 
by monitoring the correct  implementation  of all the common  policies  and Community 
legislation governing  imports and exports,  are constantly  expanding. 

With  this  in  mind,  the  Commission  started  a  pilot  project  in  1989  covering  the 
training  of  Member  States'  customs  officials;  this  became  the  Community  action 

1  Decision No 210/97/EC of  19 December  1996, OJ No L 33, 4.2.1997, p. 24. 

2  Communication  from  the  Commission  to  the  Council  entitled  "Making  the  most  of  the  internal 

market - Strategic programme"  of 22.12.1993, COM(93) 632 final; 
Communication  from  the  Commission  to  the  Council  and  the  European  Parliament  on  the 
development  of  administrative  cooperation  in  the  implementation  and  enforcement  of  Community 
legislation  in the internal  market, of  16.2.1994, COM(94) 29 final. 

3  Council  Regulation  (EEC)  No  2913/92  of  12  October  1992  establishing  the  Community  Customs 

Code, OJ No L 302,  19.10.1992, p. 1. 

programme  known  as  MATTHAEUS.4  The  programme  involved  common  training 
schemes designed to ensure that Community law on imports and exports was applied 
uniformly  and  to  encourage  customs  officers  to  become  more  aware  of  the 
Community dimension of their duties. 

In  1994,  in  the  context  of  the  above-mentioned  communications,  that  programme 
was  extended  and  supplemented  by  a  pilot  scheme  aimed  at  ensuring  the 
transparency  of  customs  operations  throughout  the  Community  and  identifying  the 
priority areas for co-operation between  the Member  States'  customs  administrations 
and between  those administrations and  the customs departments  of the  Commission 
with a view to developing  new working  methods  in a co-ordinated  manner  so  as to 
put  in place checks and  procedures which  are equally effective  at  every  point  in the 
customs territory of the Community. 

In  the  light  of  the  experience  gained  during  the  pilot  scheme,  the  Commission 
submitted  a proposal  to the European  Parliament  and the Council  for the creation of 
an  action  programme  for  customs  in  the  Community.  The  Customs  2000  Decision 
was adopted on  19 December  1996 on the basis of Article  100a of the EC Treaty. 

2.  OBJECTIVES OF THE PROGRAMME 

The  Customs  2000  programme  covers  the  period  from  1  January  1996  to  31 
December 2000. 

2.1.  The programme's  general  objectives 

The  action  programme  aims  to  improve  the  effectiveness  of  customs 
procedures  and  controls  at  every  point  in  the  customs  territory  of  the 
Community,  ensuring  transparency  in  the  application  of  Community  law  and 
identifying  the  difficulties  in  implementing  it  and  the  priority  areas  for  co 
operation. 

These procedures and controls must ensure that trade flows  smoothly while at 
the  same  time  guaranteeing  the  safety  of  the  Union's  citizens  and  traders. 
They  must  protect  the  financial  interests  of  the  Community  and  its  Member 
States and  afford  all its traders  equivalent  treatment  in their  dealings with  the 
customs services so as to prevent, inter alia, distortions of competition  and the 
development  of  new  types  of  fraud  which  would  damage  the  proper 
functioning  of the internal market. 

In other words, in the absence of a single Community  customs  administration, 
the aim should be that "the customs administrations of the Member  States may 
operate as efficiently  and effectively  as would one single administration".5 

4  Decision  No 91/341/EEC of 20 June  1991,OJNoL  187,  13.7.1991, p. 41. 

5  Decision  No 210/97/EC, 6th  recital. 

3 

2.2.  A common  framework  of  objectives 

Implementation  of  the  programme  is  based  on  the  Commission  and  the 
Member  States  respecting  a "common  framework  of objectives"  (Article  4 of 
the Decision), a sort  of charter  for  customs  operations  in the Community.  Its 
purpose  is to  guide customs operations  at  both  Community  and  national  level 
to ensure that they match the needs of the Community's internal market. 

This  means  that  the  Decision  introduces  both  new  measures  that  are  to  be 
implemented  on  the  basis  of  a  partnership  between  the  Commission  and  the 
Member  States  and  a new way  of operating  to  ensure  that  customs  can  cope 
not  only  with  the  traditional  tasks  but  with  the  new  tasks  of  an  economic 
nature that will form  an increasing part of its duties. 

2.3.  Priority  areas  for  action 

Within the common  framework  of objectives,  the Community  and the Member 
States  decide  on  the  priority  areas  for  action  and  the  operations  to  be 
conducted  jointly.  To  meet  the  Decision's  objectives,  the  priority  areas  are 
geared to the following  aspects: 

•  Ensuring  transparency  in  the  way  the  customs  administrations  of  the 

Member States implement Community law; 

•  Promoting  the  co-ordinated  development  and  application  of  new  working 

methods; 

• 

• 

Strengthening  the  common  training  policy  developed  within  the  Matthaeus 
programme  by  establishing  a  "common  core  of  training",  to  serve  the 
objectives of customs policy; 

Improving  the  dissemination  of  information  to  and  communication  with 
those who use customs services; 

Helping  to  create  an  international  customs  environment  conducive  to 
optimum  management  at  the  external  frontier,  with  particular  attention  to 
the customs administrations  of the associated  countries that  wish  to  accede 
to the European Union. 

3. 

IMPLEMENTATION  OF THE  PROGRAMME 

Although  the  proposal  was  submitted  by  the  Commission  on  6  April  1995,  the 
Decision  was not  finally  adopted  by the European  Parliament  and  the  Council  until 
19 December  1996 following  a conciliation procedure. 

the 
This  report,  which  was  supposed 
implementation  of the programme,  is accordingly  being  presented  less than  eighteen 
months after  it was actually set in train because of the time that  was needed to put in 
place the programme's management  structures. 

to  be  submitted  half  way  through 

During  that  period,  given  the  available  resources,  the  Member  States  and  the 
Commission  gave  priority  to  aspects  of the  programme  which  it  was  hoped  would 
4 

open  up  customs  administrations'  activities  and  lay  the  foundations  of  a  genuine 
Community customs network. 

3.1.  Ensuring  transparency  in  the  implementation  of  Community  law  by  the 

customs administrations of the Member States 

This operation  is carried  out  by groups  which  monitor  the  implementation  of 
customs procedures and controls. 

Made  up  of  officials  from  the  Member  States'  administrations  and  the 
Commission  departments,  the  monitoring  groups  carry  out  inspections  on  a 
thematic  basis  at  particular  points  on  the  external  frontier,  with  the  aim  of 
evaluating the implementation of Community legislation at the sites visited, the 
difficulties  encountered and the working methods used.  They may put  forward 
recommendations  regarding  working  methods  and  if  necessary  suggest 
desirable  amendments  to  legislation.  These  may  form  the  subject  of  formal 
proposals which will be considered in the appropriate  fora. 

The  themes  are  selected  by  agreement  between  the  Commission  and  the 
Member  States  and  priority  has  been  given  to  those  areas  in  which  the 
implementation  of  Community  law  faces  the  greatest  difficulties,  and  which 
could  benefit  from  the  adoption  of  more  effective  working  methods  (checks 
using  audit  techniques,  computerisation,  risk  analysis).  Ten  monitoring 
operations  were  carried  out  between  1994  and  1996  as  part  of  the  pilot 
project.  Four operations have been carried  out  since adoption  of the Decision 
and six others will take place between now and the end of  1999 (see Annex). 

The practical  impact  of these operations  has to  be  studied  over  time.  Some 
have  made  it  possible  to  identify  difficulties  facing  both  administrations  and 
traders  in  the  implementation  of  customs  law,  and  have  resulted  in  the 
Commission's  proposing  or  considering  adjustments  to  existing  law  (e.g.  on 
customs  supervision  of Community  free  zones  or  evidence  of the  Community 
status  of  goods  carried  by  sea  under  the  transit  procedure);  others  have 
provided  invaluable information  on which to base the preparation  of legislative 
proposals,  for  instance  in  regard  to  reforming  the  transit  procedures  or 
modernising customs procedures with economic impact. 

These operations  have not all sought  to change the law itself,  but  have helped 
improve  the  working  methods  of the  administrations  implementing  the  rules. 
Improvements  have  been  noted  in  a  number  of  fields  (e.g.  checking  hand-
baggage at airports  and  applying the rules governing  "optional  guarantees" in 
relation to inward processing). 

Furthermore,  monitoring  helps  to  increase  awareness  of  the  European 
dimension  of  customs  activities  by  encouraging  regular  contacts  between 
senior European customs officials  in the various areas that are studied. 

On the  other  hand,  the  scant  feedback  of  information  regarding  follow-up  in 
the Member  States  means that  not  enough  is known  about  the  real  impact  of 
monitoring operations on customs administrations. 

3.2.  Promoting  the  coordinated  development  and  implementation  of  new 

working  methods 

Coordinated  development  of new  working  methods  makes  it possible  to  help 
customs  adjust  to  a  changing  economic  environment  while  at  the  same  time 
in  the 
improving  the  uniformity  and  consistency  of  customs  activities 
Community. 

The following  operations  have been carried  out  in the five  fields  referred  to  in 
the Decision: 

3.2. J. 

Structuring  customs  controls  on  the basis  of risk-analysis 

techniques 

The  use  of  risk-analysis  methods  to  target  the  checks  carried  out  by  the 
customs administrations  on operations where there is the greatest  likelihood  of 
irregularities  or faulty  implementation  of  Community  law  is  well  developed  in 
certain Member States. 

In  order  to  achieve  a  comparable 
level  of  controls  with  comparable 
effectiveness  at every  point within the customs territory  of the Community  it is 
necessary to develop these techniques on a coordinated  basis in all the Member 
States. 

On  this  basis  the  Commission,  in  cooperation  with  the  Member  States,  has 
developed  a  first  common  methodological  approach,  reflected  in  the  drawing 
up of a "Guide to Risk Analysis and Customs Controls", 4 200 copies  of which 
are currently being published and distributed to all customs departments. 

In addition,  a pilot  project  is to  be  set  up aimed  at  establishing  risk  profiles  at 
Community  level  pursuant  to  Article  9(1)  of the  Customs  2000  Decision.  This 
pilot  project  will  be  launched  in  1998  and will  be based  on  the  findings  of  the 
preliminary  study  conducted  with  the  Member  States  during  1997  and  on  the 
initial  results produced  on the occasion  of a Matthaeus  seminar  held  in Namur 
(B) in October  1997.  It will  involve the Commission  and six Member States. 

3.2.2. 

The use of audit  techniques  to check  undertakings  '  accounts 

An ad  hoc  group  entrusted  with  the  task  of  drawing  up  guidelines  for  audits 
was  set  up  in  1995.  Following  an  initial  phase  of  collecting  and  analysing 
information  on  existing  practices  and  studies  in the  Member  States,  and  with 
the  benefit,  inter  alia,  of  the  findings  of  a  Matthaeus  seminar  on  business 
audits held  in Athens (GR)  in June  1997  with  a view  to  developing  a common 
approach, the group began its actual  deliberations  at the beginning  of this year. 
It is anticipated that these will be concluded by April  1999. 

3.2.3. 

The  conclusion  of  memoranda  of  understanding  with  economic 
operators 

Developing  a  climate  of  trust  between  customs  and  traders  calls  for  a 
non-coercive  framework  that  nevertheless  allows  joint 
initiatives  in  the 
management  of customs  arrangements  and  procedures.  With  this  in mind,  the 
European  Parliament  has  strongly  urged  the  conclusion  of  Memoranda  of 
Understanding  (MoU) with traders and has suggested  an amendment  to  Article 

9 of the Decision, while the Economic and Social Committee has firmly backed 
the concept.  It is also dealt with under a measure included  in the "Action plan 
for transit in Europe".6 

Taking  due account  of the  discussions  that  have been  conducted  with  traders 
on  the  drafting  of  an  MoU  in  connection  with  the  new  transit  system,  an ad 
hoc working party will be doing further  work  on this subject  during  1998 with 
a  view  to  drawing  up  a  specimen  "Customs/Operators  Memorandum  of 
Understanding" in cooperation with customs administrations  and traders.  This 
working group will be launched by a Customs 2000 seminar entrusted  with the 
task  of  identifying  the  legal  problems,  the  practical  advantages  and  the 
practices that have been developed in the Member States. 

3.2.4.  Simplification of customs procedures 

The  simplification  of  customs  procedures  was  the  subject  of  a  Council 
Resolution  of 25  October  1996  and  the  European  Parliament  emphasised  its 
importance  when  it  discussed  adoption  of  the  Decision.  It  forms  part  cf  a 
much  more  wide-ranging  operation  which  has  repercussions  within  the  G7 
discussions, 
the 
the  Community's  position.  The 
Commission  coordinates  or  expresses 
introduction  of  simplified  procedures  in the  European  Union  also  enables  the 
Community  to  adopt  a  forward-looking  position  in  discussions  on  trade 
facilitation  in the WTO. 

the  "Transatlantic  Dialogue"  and  ASEM, 

in  which 

In  the  context  of  Customs  2000,  it  underlies  all  the  proposals  for  the 
amendment of the Community Customs Code put forward  by the Commission. 

The Commission  has already put  forward  a proposal  aimed  at  establishing  the 
customs  component  of  a  centralised  simplified  procedure  for  release  for  free 
circulation.  The  proposal  was  discussed  at  a Customs  2000  seminar  held  in 
Brighton  (UK)  in  October  1997.  The  seminar,  open  to  traders,  offered 
participants an opportunity  to consider all the aspects of such a procedure and 
clarify  their  respective  positions.  Pilot  projects  will  be  set  up  in  1998  in  a 
number of Member States, with firms that have indicated  an interest. 

The aim of simplifying  procedures also underlies the proposals for  amendment 
of  the  Code  and  its  implementing  provisions,  which  seek  to  modernise  and 
simplify  the  customs  procedures  with  economic  impact  and  the  transit 
procedure  and  also  to  standardise  implementation  of the  rules  on  preferential 
origin that have been in operation since July  1997 in about thirty countries (EC 
- EFTA - CEEC - Malta - Slovenia), plus the Mediterranean  countries. 

DG XXI  has  also  asked  all  the  sections  of  the  Customs  Code  Committee  to 
examine the various aspects of the legislation  and the procedures which could, 
without  impairing  the  effectiveness  of  controls,  be  simplified  to  a  significant 
extent.  In this connection  the Commission  has also financed  a study  aimed  at 

6 
Communication  from  the  Commission  to  the  European  Parliament  and  the  Council,  of 
30.4.1997: "Action  plan for  transit  in Europe  - a new customs policy",  COM(97)  188 final, OJ  No C 
176,  10.6.1997.  Sheet 4.1.2. 

the 

evaluating 
the 
cost/insurance/freight  basis  (C1F)  for  calculating  the  value  of  imports  by 
free-on-board  (FOB). 

commercial  policy 

repercussions 

replacing 

of 

3.2.5.  Rational  use of resources:  customs 

laboratories 

Pursuant  to  Article  12  of  the  Decision,  a  working  party  has  been  entrusted 
with  the  task  of  examining  ways  in  which  the  customs  laboratories  of  the 
Member  States  could  cooperate  with  one  another  to  create  a  fully-fledged 
European  network  of customs laboratories as efficient  and effective  as a single 
customs  laboratory  "without  walls".  The  working  party  completed 
its 
deliberations in April of this year and it has made the following  proposals: 

- 

the setting up of a Laboratories Coordination Group (LCG); 

- 

the development  of a common bank of analytical  methods and procedures; 

- 

the development  and validation of analytical  methods and procedures; 

- 

the introduction  of laboratory quality and accreditation  systems. 

These  guidelines  were  submitted  to  the  Customs  Policy  Committee  in  April 
1998; they were accepted  by the heads of the national  customs  administrations 
and will be implemented  between  now and the end of the year 2000. 

3.2.6.  A  common  approach  to management:  measuring  results 

Article 4  of the Decision  requires Community  law to  be applied "in such a way 
as  to  achieve  equivalent  results  at  every  point  of  the  Community  customs 
territory".  In  order  to  provide  an assurance  that  this  objective  is being  met,  a 
project  involving  all  the  Member  States  has  been  launched.  The  state  of  this 
work  is monitored  by a Steering  Group comprising  six Member  States and the 
in  the  autumn  of  1997,  the  existing 
Commission.  In  the  first  phase, 
measurement  systems  in  Member  States  were  examined  but  were  found  to 
serve  national  rather  than  Community  needs.  The  second  phase  has  therefore 
concerned  itself  with  developing  a  Community  measurement  system  and 
proposals  have  been  developed  which  were  examined  in  detail  at  a  seminar 
involving  all Member  States in June  1998.  It is anticipated  that  this will  lead  to 
some pilot  studies to test  measurement  hypotheses. 

3.2.7.  Coordinated  development  of  computerised  handling  of  customs 

procedures 

The  coordinated  development  of  computerised  handling  and  communication 
systems  is a response to  the combined  challenges  of the  growth  of trade  - and 
thus of customs operations  that have to be carried  out  with  limited  resources  -
and  the  increased  need  for  exchange  of  information  and  data  between  the 
It  also 
Community's  customs  administrations  within  the  single  market. 
constitutes  an  important  factor  in  ensuring  consistency  in  the  management  of 
the customs union. 

This is a priority area within Customs  2000  and it is also  addressed  by the IDA 
programme,7  which  identified  certain  customs  computerisation  projects  as 
meeting  "a  specific  need  requiring  a  Community  contribution  to  render  them 
operational  throughout  the Community". 

The first phase  of  the  IDA  programme  (1995-1997)  included  eight  customs-
related  projects,  namely  VIES,  TRANSIT,  QUOTA,  EBTI,  TARIC, 
SCENT-CIS/FISCAL,  SEED-EXCISE  CONTROL,  CCN/CSI. 
IDA 
continues without  customs  projects,  while  these  projects  are  regrouped  under 
FISCALIS (VIES,  SCENT) and Customs 2000 (TRANSIT and the rest). 

The  former  IDA  budget  is  split,  based  on  the  allocations  of  1997,  such  that 
from  the  original  39.3  MECU,  IDA  2  will  receive  23,6  MECU  and  the 
Customs projects will receive  15.7 MECU. 

Finance  for  Customs  projects  is  guaranteed  by  a  total  budget  initially  put 
together  with  these  15.7  MECU  plus  credits  transferred  from  other  budget 
lines.  This total,  which  in  1997  represented  22  MECU,  has  grown  in  1998  to 
an  overall  amount  of  27,9  MECU  (of  which  Customs  2000  represents  20.5 
MECU)  and  the  Commission  proposes  29.8  MECU  in  1999  (of  which 
Customs 2000  represents 22.4 MECU) -  meaning that there is a net growth  of 
35% in two years, which guarantees the feasibility  of customs projects. 

In order to  take  account  of the  completion  of the  IDA  programme  and  in the 
interests  of  transparency,  the  budgetary  authority  has,  since  1 January  1998, 
combined  all  the  computerisation  appropriations  for  customs  under  heading 
B5-3030,  which 
the  Customs  2000  programme  activities. 
Computerisation  accordingly  accounts  for  the  majority  of  the  budget  for  the 
heading  covering  Customs  2000  internal  policies  (ECU  16.4  million  out  of  a 
total  of ECU 20.4  million in  1998). 

finances 

•  The  bulk  of  these  budgets  (almost  half  the  appropriations  earmarked  for 
in  1998)  is  intended  for  projects  that  contribute  to 

computerisation 
computerisation  of the transit procedures: 

-  There  have  been  delays  in  implementing  the  New  Computerised  Transit 
System (NCTS) about which the European Parliament  and the Council  have 
been  informed.  The  Commission  has  devised  a  new  strategy,  which  the 
countries  participating  in the  system  accepted  in  February  1998,  to  enable 
the  application's  central  offices  to  become  operational  from  the  end  of  the 
first quarter of  1999. 

-  The  Common  Communication  Network/Common  System 

Interface 
(CCN/CSI)  aims to  put  in  place  a common  platform  between  the  Member 
States'  customs  and  tax  administrations  and  between  the  Member  States 
and  the  Commission  which  will  make  possible  the  rapid,  economical  and 
information  with  the  best  possible  security 
large-scale 

transfer  of 

7  Council  Decision  No  95/468/EC  of  6  November  1995  on  a  Community  contribution  for  tclcmalic 
interchange of data  between  administrations  in  the  Community  (IDA), OJ  No L 269,  11.11.1995, p. 
23. 

Financed  jointly  with 

the  FISCALIS  programme 

guarantees. 
for 
applications  which  meet  the  requirements  of  indirect  taxation  (notably  the 
VIES  system  for  exchanging  VAT  information),  this  platform  will  be  used 
by the transit  application  from  the first  quarter of  1999  onwards,  as well  as 
by  the  other  customs  systems,  such  as  the  system  for  exchanging 
information  on  fraud  (AFIS),  binding  tariff  information  (EBT1),  the 
computerised  integrated  tariff (TARIC) and QUOTA  (management  of tariff 
quotas), which use it already or which will  use  it as from  the  last  quarter  of 
1998. 

-  Electronic  Data  Interchange  (EDI)  makes  it  possible  to  define  a  common 
architecture  for  messages  and  thus  helps  to  standardise  the  provision  of 
customs  information.  The  Commission  is  focusing  its  activities  on  the 
specifications  for  the  Single  Administrative  Message,  the  computerised 
version  of  the  Single  Administrative  Document,  which  will  be  used  for 
import  and  export  procedures  and  also  in  the  context  of  computerised 
transit once that becomes operational  during the first quarter of  1999. 

A  number  of  other  projects  aimed  at  transferring  information  from  Member 
State  to  Member  State  and  between  them  and  the  Commission  for  the 
purposes  of  managing  the  customs  union  have  been  or  are  being  developed. 
They include the following  applications: 

•  Tariff databanks: 

-  The QUOTA  system  manages tariff quotas and imports  of goods  subject  to 

customs surveillance at Union level; 

-  The  TARIC  system  provides  the  Member  States'  customs  administrations 
with continually updated information  on all Community measures relating to 
imports and exports of goods. 

The  binding  tariff  information  system  (EBTI)  centralises  in  real  time  the 
Common  Customs  Tariff  (CCT)  classification  decisions  taken  by  the  Member 
States  for  the  benefit  of  traders,  since  a  classification  decision  taken  by  the 
administration  of  one  Member  State  can  be  relied  on  as  against  the  other 
administrations  of  the  Union  for  a period  of  six  years.  This  system  makes  it 
possible  to  ensure  that  traders  are  afforded  equal  treatment  irrespective  of 
where  they  choose  to  carry  out  their  customs  clearance  operations  and  to 
rectify  any  errors  or  irregularities  resulting  from  incorrect  application  of  the 
CCT.  This  application  has  been  a great  success  with  traders,  who  lodge,  on 
average,  20  000  requests each year (the  data bank  is  currently  able to  provide 
120 000BTIs). 

-  A comparable application covering  information  on origin (ORNET)  is being 
developed  and will become operational  during the first quarter of  1999. 

•  Systems  being  developed  or  enhanced,  which  are  used  by  the  Commission 

to improve official  publications,  such as: 

-  Management  system  for  combined  nomenclature  legislation:  a  system 
legislation 

improve  management  of  the  publication  of 

designed  to 

10 

concerning  the  combined  nomenclature.  The  project  is  at  the  prototype 
stage and should be operational shortly. 

-  Tariff suspensions, a system designed to provide support in connection with 
negotiations  and  the  publication  of  legislation  on  autonomous  tariff 
suspensions.  The  system  has been  in operation  since  1996;  improvements 
were  made  in  1997  and  additional  functions  provided  at  the  request  of 
users. 

•  Anti-fraud  applications 

In the fight against fraud,  computerised  systems provide specialist  departments 
of the  Commission  and  the Member  States  with  a technical  medium  offering 
applications for the rapid exchange of confidential  and sensitive information  (in 
cases involving fraud,  illicit trafficking,  sensitive products). 

The  principal  applications  used,  which  are  integrated  in  the  Anti-fraud 
Information  Systems  (AFIS)  technical  architecture,  are  the  Early  Warning 
System  (EWS),  used  for  transit  pending  the  development  of  the  NCTS 
application which, although already operational  in the transit  procedure,  is not 
yet used in a generalised way, the Customs Information  System (CIS), which is 
in the process of being implemented, and the System for Customs  Enforcement 
Network (SCENT 3). 

3.3.  Strengthening  the  common  training  policy,  developed  within 

the 
Matthaeus  programme  through  the  establishment  of  a "common  core  of 
training", to serve the objectives of customs policy 

Training  is  central  to  the  modernisation  of  the  customs  administrations  and 
their adjustment  to new, efficient  working methods and control techniques.  At 
Community  level, joint  training  schemes  are  conducted  and  developed  within 
the framework  of the Matthaeus programme.  That programme is, accordingly, 
at the centre of the arrangements put in place by Customs 2000. 

Since  1996, Matthaeus  programme training schemes have been  planned  in the 
In  this  respect  the 
light  of  the  priorities  identified  at  customs  policy  level. 
Matthaeus  programme  may  be  regarded  as  dealing  with 
the  training 
component of Customs 2000. 

In  pursuance  of  Article  14  of  the  Customs  2000  Decision  and  running 
alongside the other measures carried  out under the Matthaeus  programme, the 
following  operations were set in train in  1997 and  1998: 

3.3.1.  The setting  up  of  a  network of  heads  of  Member  States'  customs 

training centres 

An initial meeting of the heads of training centres was held in Paris in February 
1998 and a second meeting is planned in London in November  1998. 

The aim of this network,  which  constitutes  a first step  towards  a  Community 
customs  academy,  is  to  organise  exchanges  of  instructors  and  students 
between the Member  States' training centres, as well as teaching materials, and 

11 

to prepare training seminars for  senior officials  (to follow  up a seminar held in 
Elsinore (DK) in June 1997). 

3.3.2.  Further development of the common training programme 

The common programme of initial training set out in the Commission  Decision 
of  13  December  1992  (OJ  No  L,  23.1.1992,  p. 14)  describes  the  minimum 
common basic training to be followed  by the Union's customs officers.  During 
1996  and  1997  the  programme  was  amplified,  on  the  basis  of  cooperation 
between  the  Commission  and  the  Member  States,  so  as  to  tailor  the  content 
more closely to the training needs of staff  in the light  of their particular tasks. 
To  that  end,  sixteen  course units setting out  the content  and  the objectives  of 
the  different  chapters  of  the  common  programme  of  initial  training  were 
finalised  at  the beginning  of  1998 and  are  to  be  used  by the  national  training 
centres from this year onwards. 

3.3.3.  Finalisation of training modules that are to be taught in the national 

training centres 

These  modules  for  the  in-service  training  of  customs  officers  form  part  of a 
common  core  of  training.  They  are  prepared  in  close  cooperation  with  the 
national administrations.  So far,  there are three of them  (covering  counterfeit 
goods, waste management  and the common  agricultural  policy).  A number of 
other  modules  are  currently  being  planned  or  prepared,  including  one  on 
transit. 

3.3.4.  Extension of training to the associated countries. 

The training  of customs  officers  under  the  Matthaeus  arrangements  has been 
extended  to  cover  the  associated  countries  on  the  basis  of  a  pilot  project 
financed  from  the  Customs  2000  budget.  Since  1996,  those  countries  have 
participated  in  t\\e  exchange  programmes  for  customs  officers  and  in 
Matthaeus  seminars  and  they  will  be  able  to  use  the  common  training 
programmes. 

In view of the success of this pilot  experiment,  the Decision  will  be amended 
so  as to  extend  of the  programme  to  the  associated  countries  of  Central  and 
Eastern  Europe,  enabling  them to  participate  in accordance  with  the  terms  of 
the  Europe  Agreements  or  in  the 
additional  protocols  relating  to  their 
participation  in  Community  programmes,  as  well  as  to  Cyprus  and  Turkey, 
insofar as Community customs legislation so permits. 

3.4.  Improving  the dissemination  of  information  to and  communication  with 

those who use customs services 

Adapting  customs  to  the  requirements  of  international  trade  is  inconceivable 
without  an  in-depth  dialogue  with  those  who  use  customs  services,  namely 
international traders. 

Alongside 
the  national 
administrations conduct with traders, efforts  have focused  on the development 

the  discussions  which 

the  Commission  and 

12 

of a structured  dialogue aimed at improving communication  and the reciprocal 
provision of information  with firms involved in international trade. 

In this connection, a number of operations have been mounted: 

-  Seminars open to traders: 

-  Brighton  (UK),  October  1997  on  the  proposed  centralised 

simplified  procedure for release for free  circulation; 

-  Prague  (CZ),  November  1997,  on  the  evaluation  of  a  year  of 

common transit with the Visegrad countries; 

-  Munster (D), April  1998, on the reform  of the transfer  and  transit 

procedures. 

-  Support  for  information  seminars  for  traders  organised  in  the  Member 
States: Lisbon (September  1997), Ireland  (November  1997).  A number  of 
other projects in this field are planned for  1998. 

-  In connection with reform  of the transit  procedures, the Commission  set up 
a transit contact group in  1997 which brings together the administrations of 
the 
traders 
represented by twenty-two European trade organisations.  This group meets 
twice a year. 

twenty-two  countries 

the  procedures  and 

involved 

in 

In  this  context,  the  Commission  is  studying  possible  reforms  to  enhance  the 
effectiveness  of its procedures for  consultation  with business  circles by giving 
priority to targeted  consultations geared  to  particular  subjects.  This  approach 
has  been  followed  in  connection  with  reform  of  the  transit  procedures,  and 
with  the  Joint  Commission  Economic  and  Social  Committee  "hearing"  in 
Brussels  in  April  1998,  involving  the  business  circles  concerned,  on  the 
tariff  agreements  as  an  instrument  of  the 
management  of  preferential 
Community's commercial policy. 

3.5.  Helping  to  create  an  international  customs  environment  conducive  to 

optimum management at the external  frontier 

Rapid  changes  in  the  international  environment  since  the  beginning  of  the 
decade  and  greater  liberalisation  of international  trade  bring  with  them  a very 
considerable  increase  in  the  risk  of  fraud  and  a  matching  "globalisation"  of 
illicit trafficking  in every  field. 

From  the  standpoint  of  customs,  this  means  that  cooperation  and  technical 
assistance  between  the  Union's  customs  administrations  and  those  of  third 
countries, in particular the customs administrations of the associated  countries, 
must be strengthened  in preparation  for their future  accession to the European 
Union. 

Since the beginning of 1997, the following operations have been mounted: 

13 

3.5.1. 

Support for  the implementation  of  the pre-accession  strategy 

In  this  area,  the  Customs  2000  programme  has  served  as  a  medium 
for  operations  to  help  the  customs  administrations  of  the  applicant 
countries  prepare  for  their  future  accession, 
in  addition  to  the 
operations  of  a  more  general  nature  financed  by  the  Phare 
programme,  and  also  for  cooperation  operations  bringing  together 
those  countries  and the countries which  will  in future  have  a common 
border with an enlarged  Union.  These  have focused  on the  following 
fields: 

-  Training:  financing  the  pilot  project  enabling  the  associated 
countries  to  participate  in  the  Matthaeus  and  Matthaeus  Tax 
training programmes; 

-  Implementation  of  the  pre-accession  strategy  in the  context  of  the 
accession  partnership  and  "road  maps",  notably  through  the 
organisation  of  working  parties 
the  development  of 
"blueprints"  to  assist  with  the  reorganisation  of  the  customs 
administrations of the CEEC; 

for 

-  Organisation  of  seminars  involving  Member  States  and  applicant 
countries  (new  pan-european  cumulation  system  for  rules of origin 
under  the  Europe  Agreements  -  EU,  EFTA,  CEEC,  seminars  with 
the customs administrations  of the Baltic  Sea  States, Tallinn.) 

3.5.2.  Computerisation  geared  to the needs  of  non-member  countries 

-  Expansion  of  the  functionalities  of  Electronic  Data  Exchange 
(EDI)  as  part  of  the  computerisation  of  transit  for  the  third 
countries  involved  in  the  common  transit  system  (the  Visegrad 
countries); 

-  Preparatory  work  on  expanding  the  department  dealing  with  the 
dissemination  of  customs  information  to  the  administrations  of 
non-member countries. 

3.5.3. 

Technical  assistance 

Many ad  hoc technical  assistance  projects have been organised  for the 
customs  administrations  of  non-member  countries  which  have 
requested  them,  especially  in  connection  with  implementation  of  the 
customs  component  of  trade  agreements  concluded  by  the  European 
Union with those countries. 

In  addition,  a  seminar  will  be  organised 
in  1998  with  the 
Mediterranean  countries  on application  of the  rules  of  origin  between 
the countries of the region. 

14 

3.5.4.  Cooperation and the establishment of structured relations with non-

member countries and international bodies 

The  establishment  of  a  high-level  structured  dialogue  between  the 
EU's  senior customs officials  and those of non-member  countries is a 
response  to  the  need  to  set  such  relations  in  a  framework  that 
enhances their  effectiveness; 

in  1997  and 

Meetings  were  organised 
the 
Directors-General  of the  ASEM  countries  (Vienna,  1997)  and  with 
those  of  EFTA  and  the  CEEC  (Reykjavik,  1997).  A  meeting 
between  EU  Directors-General  and  those  of  the  CEEC  will  also  be 
held in 1998. 

1998  with 

4.  BUDGETARY IMPLEMENTATION OF THE PROGRAMME 

All the appropriations  scheduled  in the initial decision for the period  in question have 
been used.  Because of the delay in adopting the decision,  it was not  possible to use 
the ECU 2 million earmarked  as redeployment  of "internal  market" appropriations in 
1996,  which  were  carried  over  to  the  1997  financial  year.  However,  all  the 
appropriations entered in 1996 for "Customs 2000 computerisation"  (ECU  1  million) 
were used up in that financial year. 

In the interests of financial transparency  the budgetary  authority  agreed  to  combine, 
all the appropriations  assigned  to  the  implementation  of computerisation  projects  in 
the  customs  sector  under  heading  B5-3030  (Customs  2000)  with  effect  from 
1 January  1998,  to  take  account  of  the  completion  of  the  IDA  programme  on  31 
December  1997.  Computerisation  thus  became  the  largest  budget  item  in  the 
Customs  2000  budget  (ECU  16.4  million  out  of  a  total  of  ECU  20.5  million  for 
projects  associated  with "internal  policies" for  1998).  Financing  the  projects  set  up 
to  develop  and  implement  transit  computerisation  accounts  for  almost  half  that 
amount. 

information  between 

the  exchange  of  data  and 

Expenditure  on  the  development  and  implementation  of  computerised  applications 
for 
the  Union's  customs 
administrations  to  enable  them  to  effectively  discharge  their  obligations  as  regards 
controls  and  protection  of  the  Community's financial interests  was  slightly  higher 
overall  than  planned.  The relatively  smaller  percentage  of expenditure  on  financing 
joint  projects  with  the  Member  States  is  explained  partly  by  the  fact  that  such 
projects require high levels of human and logistical resources and are proportionately 
less costly financially. 

5.  TAKING STOCK 

5.1.  The nature of the exercise 

It  is difficult  to judge  the  effectiveness  of  a  project  of  the  scale  of  Customs 
2000  over  such  a  relatively  short  period  of  time.  Any  project  of  this  nature 
must be regarded  as an investment  for  the future,  the  impact  of which  can be 
assessed only in the medium or long term. 

15 

It  is  not  yet  possible  to  assess  the  experience  gained  in  implementing  the 
programme in terms of the final objective,  which is to  improve the  functioning 
of  the  customs  union.  Such  an  evaluation  would  require  an  analysis  criteria 
such as the degree  of satisfaction  of private  individuals  and  traders  (measured 
e.g.  by  examining  the  trend  in the  number  of  legal  proceedings  dealt  with  at 
Member  State or Community  level),  or  improved  collection  of own  resources 
(as  reflected  e.g.  in  audits  carried  out  by  the  Court  of  Auditors  of  the 
Community).  Such findings are obviously not yet available. 

We can, however,  already identify  the strengths and weaknesses  of the current 
programme and put  forward  certain ideas on how to  make it  more effective  in 
the  future. 

5.2.  Customs 2000 and subsidiarity 

Customs  is  undoubtedly  the  field  in  which  legal  integration  has  been  taken 
furthest,  symbolised  by the  existence  of the  Common  Customs  Tariff  and  the 
Community Customs Code. 

Beyond the regulatory approach, the success of the single market in the eyes of 
private citizens and traders depends on the way in which the law is applied by 
the administrations  of the different  Member  States.  To  make the  most  of the 
benefits  afforded  by the single market, the application  of Community  law must 
ensure that  the customs  procedures  and  controls  carried  out  at  every  point  of 
the customs territory of the Community are of equivalent  quality. 

In  order  to  secure  such  uniform  application  of  Community  law,  regulatory 
harmonisation  needs to be supplemented  by improved  cooperation  between the 
national  administrations  and  the  use  of  working  methods  that  have  been 
developed jointly.  It is only through joint  action on the part  of the Community 
and  the  Member  States  that  practices  can  be  changed  and  the  operations 
that 
carried  out  by  each  national  administration  set 
encompasses the Community dimension of customs. 

in  a  framework 

5.3.  Customs  2000 and  partnership 

Implementation  of  the  programme  is  founded  upon  a  close  partnership 
between the Commission and the Member States, the legal basis for which is to 
be  found  in  Article  3  of  the  Decision.  The  instrument  that  renders  that 
partnership  operational  is  the  Customs  Policy  Committee,  made  up  of  the 
Directors-General  of  Customs  of  the  Member  States,  which  meets  twice  a 
year. 

That Committee has shown itself to be an ideal forum  for  partnership between 
the Commission  and the Member  States  and  for  the involvement  of the senior 
management  of  EU  customs  administrations  in  policy  formation.  Alongside 
the Commission, it stands as a guarantor of adherence to the guidelines and the 
objectives  of the Customs  2000  Decision  and  its "code  of  conduct"  designed 
to enhance the uniformity  of customs operations within the Community. 

The  guidelines  and  priorities  adopted  by  the  Committee  find  expression  in 
the  national 
practical  joint  projects, 

in  the  implementation  of  which 

16 

administrations  act  as genuine partners.  Their  success  depends  on the  degree 
of involvement  and active participation of each of the partners in carrying them 
out,  and the level of Member  State  participation  has been  very  high.  By way 
of  example,  more  than  140  projects  were  proposed  by  the  national 
administrations when the national  action  plans for  1997 and  1998 were drawn 
up,  and  the  Commission  made  its  selection  on  the  basis  of  criteria  for 
identifying  priority projects that were agreed jointly within the Committee. 

Implementation  of  the  projects  has  required  the  deployment  of  considerable 
human  and 
the  national 
administrations  demonstrate their interest  in the programme's  success  and  the 
benefits they expect to derive from it. 

The  efforts  made  by 

logistical  resources. 

5.4.  Awareness of the Community dimension of customs operations 

Implementation  of  the  programme  has  generated  a  very  high  level  of 
cooperation  between  the Member  States'  customs  services  and  between  them 
and  the  Commission.  Such  cooperation  in  areas  that  have  traditionally  been 
the  responsibility  of  the  national  administrations  was  initiated  under  the 
Matthaeus programme as part of staff training and it is of great  help in creating 
joint  working  practices  and  a  genuine  "Community  reflex"  when  seeking 
common solutions. 

Even  over  a  period  too  short  to  cover  its  entire  scope,  therefore,  the 
programme  has  been  given  instrumental  in  ensuring  that  the  Community 
dimension  is taken  into account  in the discharge of customs  responsibilities, in 
line with  the wish  expressed  when  the Decision  was  adopted.  The  focus  has 
been  on  areas  such  as  the  targeting  of  customs  controls  using jointly  agreed 
methods  and  criteria  (risk  analysis  and  audit  techniques),  the  coordinated 
development  of  tools,  the  future  establishment  of  a  genuine  network  of 
customs  laboratories  in  the  Community  and  organisation  of  the  network  of 
customs training centres. 

In  this  connection,  the  Decision  called  on  the  Member  States  to  arrange  for 
officials  to  wear  a distinctive  Community  symbol  on their  uniform.  Although 
this is not  mandatory,  a number  of Member  States  have  already  arranged  for 
such  a symbol  to  be  worn  by  their  customs  officers  and  some  of  them  have 
erected  signboards bearing the twelve star European  symbol at the main points 
at which travellers enter the Community. 

5.5.  The need to improve the consistency of customs operations 

When  assessing  the  effectiveness  of  the  Customs  2000  programme,  account 
has to be taken  of the fact  that  a number  of other  programmes  with  different 
objectives are operating alongside it in the customs sector: 

-  Matthaeus, in the field of joint training; 

-  Measures 

to 

improve  control  of  fraud  or  organised  crime  under 
programmes  and  budgets  managed  by  different  Commission  departments 
(as  well  as  certain  operations  conducted  as  part  of  customs  cooperation 
within the meaning of Title VI of the EC Treaty); 

17 

-  PHARE, TAC l S and  MED A in the field of external operations. 

The  existence  of  a  considerable  number  of  such  instruments  means  that 
coordination  of operations  in the  various  fields  is  needed  to  ensure  that  they 
are consistent and to prevent duplication and waste of resources. 

Such  coordination  is  achieved  to  a  certain  extent  within  the  Customs  Policy 
Committee, where the heads of the customs administrations  ensure, ex officio, 
that  operations  having  a legal  basis  in Titles II  and  VI  of the Treaty  dovetail 
with one another. 

The Commission takes the view, however, that there could be a greater degree 
of rationalisation  between  training operations  which  come within  the  ambit  of 
the Matthaeus Decision and those covered by the Customs 2000 Decision. 

6. 

PROPOSED GUIDELINES FOR THE FUTURE 

On  the  basis  of  the  findings  made  during  the  period  in  which  the  programme  has 
actually been  in operation,  the Commission's  view  is that  operations  that  have been 
launched  must  continue  and  be  further  developed  and  that  improvements  must  be 
made in seeking to achieve the objectives of the Decision of  19 December 1996. 

As it stated in response to the request by the committees of the European  Parliament 
in  the  course  of  the  preliminary  discussions  on  the  amendments  proposed  on  3 
September  1997  aimed  at  adjusting  the  "priority  amounts"  and  the  financial 
statement  included  in the original Customs 2000 Decision  of  19 December  1996, the 
Commission  plans  to  submit  a  new  proposal  shortly,  based  on  the findings of  this 
report.  That proposal would, therefore, give priority to the following guidelines: 

6.1.  Development of a more unified  approach to customs operations 

Community  operations  are  currently  governed  by  a  number  of  different  legal 
instruments, each of which lays down specific administrative procedures. 

Bringing  all  the  operations  together  within  a  single  Decision  would  have  the 
advantage of ensuring a consistent  approach  to customs  operations,  along the 
lines  of  what  has  been  achieved  in  the  field  of  indirect  taxation  with  the 
FISCALIS  programme. 

- 

It  would  provide  a  clear 
legal  basis  and  sufficient  certainty  for 
computerisation  projects  extending  over  several  financial  years  to  be 
completed. 

-  It  would  bring  greater  uniformity  to  the  conduct  of  operations  in  the 
customs field, allowing  more  rational  use  of  the  instruments  available  and 
making  the  most  of the  synergies  and  areas  of  complementarity  that  exist 
between them (e.g. monitoring, working methods,  training/information) 

-  It  would  answer  Member  States'  concerns  about  distinguishing,  in  many 
cases,  between  operations  under  Customs  2000  and  Matthaeus,  which  are 
often  dealt  with  by  different  departments,  depending  upon  the  particular 
programme and the budget for it. 

18 

The  legal  instrument  in  question  should  adopt  an  overall  approach  and 
combine all the operations relating to: 

-  computerisation, currently covered in part by Customs 2000 and by the  first 

IDA programme; 

-  joint  operations with the Member  States aimed at  developing  new working 

methods, covered by the existing Customs 2000 Decision; 

- 

training schemes, currently covered by the Matthaeus programme; 

-  opening  up  access  to  non-member  countries  through  cooperation  and 

technical assistance operations in the customs  field. 

6.2.  Strengthening the partnership 

in 

implementing 

the  programme  depends  on 

Success 
the  national 
administrations  taking  an  active  part  in  the  operations  that  are  conducted 
jointly.  The  commitment  made  by  the  national  administrations  is  given 
practical expression within the Customs Policy Committee, both in its role as a 
committee  steering  and  evaluating  the  programme  and  in  ensuring  adherence 
to the customs policy guidelines set out in the Decision. 

Alongside  the  Customs  Policy  Committee,  an  institutional  committee  should 
assist  the  Commission  in  the  practical  implementation  of  the  guidelines  laid 
down  in  the  different  operational  areas  covered  by  the  amended  Decision. 
the  existing  management 
That  management  committee  would  replace 
committee  set  up  under  the  Matthaeus  Decision,  whose  role  is  confined  to 
training  schemes.  Setting  up  this  new  committee  would  help  strengthen  the 
management structure of the programme and make it more  effective. 

6.3.  Duration 

The new proposal must aim to ensure the continuity of the operations launched 
under Customs 2000, and must extend  over a period that is sufficiently  long to 
demonstrate the effectiveness  of the proposed  reform. 

The  new  proposal  will,  accordingly,  provide  that  the  implementation  period 
currently  prescribed  in  the  Customs  2000  Decision  should  extend  further  to 
cover the period from  1  January  1999 to 31 December 2002.  This will make it 
possible: 

- 

- 

to  stipulate  a  period  that  will  be  long  enough  to  implement  the  new 
Decision; 

to  set  in  train  a  genuine  "rolling  programme"  of  operations,  which  will 
ensure  continuity  of  the  action  taken  to  modernise  customs  in  the 
Community. 

19 

7. 

CONCLUSION 

The  action  taken  at  Community  level  initially  with  the  Malthncus  programme,  and 
further  developed  and  supplemented  by  the  Customs  2000  programme  has 
demonstrated  the existence of genuine Community momentum in the customs  field. 

Work  under  the  Customs  2000  Decision  to  date  does  not  support  any  firm 
conclusions  about  the  impact  of  the  programme  on  the  routine  implementation  of 
Community  law by customs  administrations,  nor has it produced  measurable  results 
in terms of the effectiveness  of controls. 

It  nevertheless  demonstrates  the  commitment  of  those  administrations  to  the 
operation  and  confirms  their  determination  to  set  their  activities  within  a  stronger 
Community framework. 

20 

Monitoring operations 

Annex 

Under  the  pilot  project,  ten  monitoring  operations  were  organised  between  1994  and 
1996, covering the following areas: 

-  free zones (2 phases: May - July 1994 / April - June 1995), 

-  external maritime frontier  (2 phases: May - July 1994 /April - June 1995), 

-  customs procedures and checks in the textiles sector (TAFI): Nov. 94 -  March 95, 

-  airports: October -  December  1994, 

- 

inward processing: April -  July 1995, 

- 

transit (central offices)  : November  1995 -  February  1996, 

-  simplified  procedures  : October  1995 -  February  1996, 

-  preferential  origin. April -  September  1996, 

-  customs warehouses: May -  July 1996, 

- 

transit (functioning  of the procedure in general) : October  1996 -  February  1997. 

The following operations have been conducted  since the Decision was adopted. 

-  binding tariff information  (2 operations): January -  April  1997, 

- 

inward processing (2nd phase): February -  April 1997, 

-  application of the rules of origin: May -  October  1997, 

-  system  for  managing  tariff  quotas  and  surveillance  of  imports  (QUOTA):  February  -

May 1998. 

The  following  operations  are  planned  for  the  period  between  July  1998  and  December 
1999: 

-  customs warehouses (phase 2): September  1998 -January  1999, 

- 

inventory of equipment  for  physical  checks  at the external  frontier:  implementation  of 
sheet  4.3.5  of  the  Action  plan  for  transit  in  Europe  (Recommendation  No  8  of  the 
Parliamentary committee of enquiry on transit: Sept. -  December 1998, 

-  procedures  for  issuing  authorisations  for  simplified  declarations  and  local  clearance: 

January- April 1999, 

- 

implementation  of  Council  Regulation  (EEC)  No  338/97  on  frontier  checks  on 
specimens, prescribed by the CITES convention: April -  July  1999, 

21 

checks for  conformity  with  the  rules  on  product  safety  in the  case  of  toys  imported 
from  third countries (implementation of Council Regulation (EEC) No 339/93): July -
October 1999. 

22 

ISSN 0254-1475 

COM(98) 471 final 

DOCUMENTS 

EN 

01  02  06 

Catalogue  number  :  CB-C0-98-481-EN-C 

ISBN  92-78-38485-2 

Office  for Official  Publications of the European Communities 

L-2985  Luxembourg 

I